Step-by-step Rundown of USDA loan process

[Anonymous]

Hi,

I am new to this forum but have spent the last couple of weeks reading all the different posts.  It's amazing the amount of information that you guys have amassed in one site.  Congrats. 

 I just recently put in my application and wondered how long should I wait before I call and make myself known. (become a stalker lol.)

My question is this:  Can someone give a rundown of the different steps,order and a rough timeline for getting a USDA loan from application to closing.  (just an approximate time line would be great.) 

Keep up the great work with all the info.  It really helps all of us (especially us lurkers.)

Jordjon

[WannaHouse]

There are 2 different USDA programs. Did you apply for the direct or guaranteed program? The direct program, you send the application right to the USDA office. The guaranteed, you apply at a bank, mortgage lender, credit union, etc.

[Anonymous]

Hi,

Thanks for taking the time to help me get my question answered.  I have applied directly with USDA.  I was not aware that there was any other way.  lol.  See.. not alot of direct info out there so I'm sure that I'm not the only one that would love some input.

Thanks again,

Cristina

[Anonymous]

Hi,

Just wondered if anyone else had any info to share or if I'm out of luck.

Thanks

[Anonymous]

I don't know too much about the direct. The guaranteed has a higher income limit and is handled by mainstream lenders. It's similar to FHA or VA.

Direct is a great lower income program. You can have a home built. They'll even subsidize the payments depending on your income. They do seem to keep their hand in. When you sell, you have to repay the subsidy. They also like you to refinance into a mainstream loan if you become able. That allows them to use the money to help others in need.  If you have the subsidy, I believe you have to continue to provide income documentation as that is income based and can change.

[Anonymous]

Ok, so I just finished typing this on another thread, so I'm just going to copy and paste my answer here too

Hey there! Did you ever find out what the process is? I have just submitted an app. for the direct program, and am in the same boat as you as far as wanting to know where I stand. So far these are the steps I know of....

1. I called and let them know I was interested in the program. They mailed me a pre qual app packet. It required different docs and some paperwork. I mailed that all in.

2. About a week later I got the whole app. in the mail with a note saying I seem to qualify based on the prequal thing. Filled out the application and mailed it the next day.

3. A couple days after that I got a letter saying they needed some documents I guess I forgot to send and a $25 money order for a credit check (I'm assuming this means my application looked ok or they wouldn't continue to the credit check)

4. Today they called because they are having trouble verifying my employment. My company uses the work number to verify employment. I hate that, I've always had trouble with the work number. One time it held back my financial aid for a week because my school was having trouble with it. Now it's messing up my app process. Grr >:/ Anyways, I digress...

So thats where I am right now, waiting for them to get that verification I have no idea where I stand as far as what's ahead in the process, or if them doing the employment verification and credit check is a good sign that I might be approved. So if you know the next steps, please share!

 

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^^lol, that's from my ferret walking on my keyboard while I typed

[WannaHouse]

http://ficoforums.myfico.com/fico/board/message?board.id=loans&thread.id=46709

Here is the other thread that may help answer this for you.