Question about usda direct

[Anonymous]

wow i hope I wont have to wait that long that would be awful im doing this in indiana so maybe it depends where you live and how many people they are pocessing but and also they were having trouble with the goverment shutdown sooo who know also whats the interview like and when do you have to have home buyer education class cause My loan officer hasnt even said anything bout that to me and i been reading people talk about having it?

[Anonymous]

How’s the house hunt going ?

[svtthis]

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@Anonymouswrote:
How’s the house hunt going ?

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 Not good early on. We were striking out left and right with submitting offers. No seller wanted to wait 45 days for an appraisal. So there was a good 4-5 houses we missed out on due to that. Plus you had to explain the who/what/how everything about the program to every listing agent. I was shocked to find out how many sellers didn't know about usda financing even the guaranteed kind! But we have found a house that we're in the process of putting in an offer for. The seller is a house flipper so the timeline fits his schedule. So hopefully this will work out and my realtor seems to think it will. The area I'm in has been usda eligible for a long time so it really shocked me that sellers weren't more in tune with the financing that was available. Only 1 house we looked at the seller was considering usda and they didn't even know the 502 direct program existed. I'll update when I have more info.

@Anonymous did you get your COE yet?

[Anonymous]

45 days for an appraisal? Wow. Where’d you get that info from?

Yes I did receive my COE. I realized the max area loan limit has increased cuz my approval amount is more than I was told in the interview. But there’s nothing to buy really in Orange County . My specialist is also slow to respond to questions about ratios. Don’t wanna put in an offer if they’re not gonna approve it ya know. I won’t lie, I’m incredibly frustrated.

[Anonymous]

hello svtthis and Shae51,

i am so thankful to read your posts about your experience with the rural direct loan process.

Do you mind if I ask you both a couple of questions?

Were you able to find a realtor with Rural Direct experience? How was your realtor (attitude, helpfulness, patience) about using USDA Direct? 

Did you do pre-qualification before you did your preapproval?

     I have the email attachment from our Specialist to complete the pre-qualification and I am just getting ready to start filling it out. But I am wondering if we should just go straight to paying the $25 credit app fee and completing the paperwork for preapproval to save time. 

Did you have any issues with your credit when you applied?

     I just pulled my MyFico 3B today, my mortgage scores were EX2 = 710, TU4 = 693, and EQ5 is 656. My DH are all over 700. We have a couple collections, but they are past our 4 year SOL. I am expecting they will tell us to pay them anyway.

I have read through their handbook several times, and also read every post about direct loans here in the forums. I am dreading this process. I hope to move by the end of the year, but have my doubts...

I will be filling out the prequalification in the morning AFTER I have at least 2 cups of coffee... 

[svtthis]

Glad to help out. This board is how I learned not only about usda direct but many other things and I'm always happy to help another member out. The only regret I have is I wish I'd found it sooner.



I went through 2 realtors before I found the one so to speak. The other 2 we're eager to help (I think they just wanted the money) but when it came down to putting in an offer they got nervous. My recommendation is to find a realtor with USDA experience now. I never pre qualified. I just went straight for the pre approval process. I read every requirement for the program beforehand and knew I was eligible that way. The only blemish I had on my report was a bk7 reporting from 2012 but my dti and credit scores were excellent. The process was a year in the making just to apply so I worked hard on getting stuff paid off and boasting my scores. My specialist even commented on such.


Don't dread the program its just time consuming. Make sure you are very detailed oriented and can work under pressure. Case in point. Sometimes I got letters for things that needed to be done in 15 days with only 10 days left. What I mean by that is is you get letters to have documents back to them and they give you 15 days to get them back but when you received the letter 5 days had already past.


Another recommendation is to get your specialist's email and scan your documents on email and send them back that way. I rarely ever sent anything back snail mail. I was affraid that something would get lost and not make it back in time.



Let me know if I can help with anything else. Good luck!

[svtthis]

Congrats on getting the coe finally! Up to 45 days came directly from my specialist. My realtor called her and asked her about the timeline. Also could take up to 90 days to close. My realtor said the appraisal taking up to 45 days is the biggest hanging point with sellers. She said typically it's only 25 days max for an appraisal.

My issue fining a house was finding something under 2000 sq ft. My rep said it can't even be 1 sq ft over 2000. Now where I'm at the prices aren't nearly as much as you're at I'm sure.

My impression was that if that if we're approved for the full amount that you won't have any issues on the ration side.

[Anonymous]

I turned in my application on May 9. They pulled my credit on May 17, and cashed my check on May 22. Now it's just hurry up and wait. I just wanted to share some information I read on another forum regarding the direct loan appraisal. As long as the appraiser is an approved appraiser with FDA you can skip the wait if you want to pay for it yourself. I think in order to save a month and a half that is what I will do if it's a a problem for the seller to wait. I will try to find that forum again to get the info on how you make that happen. 

I don't know how it is in everyone else's area but it is a seller's market here and a decent house (especially if the price is decent as well) is snapped up within days.  :-/

[AbbiLou]

Hi CherylINTX,

We are on the same timeline. I turned in my application on 5/10 and they have already pulled my credit. I had a slight bump in the road because they input my address incorrectly and so I did not receive a mailing they had sent and thus lost a week or so, but was able to work that out this last week.

Prior to submitting my application, I was told to expect at least a verbal idea of approval and the amount within a couple of weeks, but that the entire process would take up to 4 months. Then the other day I was told it could be months before I am told anything at all including if they feel I would be approved.  It was pretty disappointing to suddenly be told something way different as we are in the middle of a pretty big life change and how we proceed is greatly influenced by these questions and answers.

Back years ago when I purchased homes the typical way (FHA, etc) we knew right away verbally if we should expect to be approved and the amount to expect, but according to our USDA office they do not do this and so I likely won't know anything for weeks if not many months. This is problematic because if it is not enough to buy in my region or I am going to be denied, then I need to make long term plans for us. I am at the end of my lease and must decide what we will do. I am not sure how we can do this process in our current situation if they will not give us some answers in a quicker time frame. I do not have a situation that allows me to stay however long is needed where we are currently nor do we have somewhere temporary to go.  I went in with a pretty good feeling about it, but am really starting to wonder if I need to pull out.

Has your office said the same things? Did others get told in advance of the COE if they should be approved and thier max loan amount?
The first person I spoke with actually told me how they do the math for the max loan amount for the applicant, but now I am not sure who has given me accurate information vs who hasn't. 

Good luck in your process. I hope it goes smoothly. Thanks for the tip on just paying for the apprasial. I would rather pay it than wait if I reach that point.