USDA Guaranteed with new construction

[thankfulheart]

What is the process for the mortgage end of things when doing USDA guaranteed with a new build?  The home builder told me it's usually 6 months from starting the application process to closing.  I guess I'm still very confused about what goes on.  Is it a pre-approval type thing, then I can sign to start the construction, THEN the approval bit happens after the home is built, then finally closing?  If so, what will I need in place for the pre-approval?  The LO told me 620 score, but do I need my 12 months clean history at that point?

[ShanetheMortgageMan]

When buying a new home (completed within the past 1 year) with USDA financing it has to meet several "new build" requirements, meaning the builder/developer needs to complete a few forms certifying the home was built to certain requirements, has been termite treated if needed, providing a builder's warranty, and some other smaller items.  If the builder is accepting USDA financing then they should be familiar with requirements by USDA in their area (as it goes before the area specialist at the end of the process to review all of the new build forms).

It'd be up to the builder when they'd want to begin, but yes you'd want to get pre-approved and then after the home is complete is when the mortgage is funded and you buy the home from the builder.  USDA has a construction loan program (where you'd get the loan to pay the builder to build the home along the way) but I believe it's only if you apply for the Direct version directly with USDA.  The loan officer should have told you what all of the requirements are, if they didn't then you probably don't want to work with that loan officer.  USDA generally requires 12 months of clean credit, and if your score is on the lower end then there's a 99% chance you'll need 12 months of clean credit.