Wanting to know if anyone has any insight on the USDA loan process.

[Anonymous]

I am getting a USDA loan mid score 649, what would be requirements for this score? Will I have to show rental history? I don't have any idea if going through an online lender do they send it back to my hometown to get USDA underwriting? Please let me know of some of you thoughts, thanks guys!

[Anonymous]

All info for guaranteed and direct loans is at RD.usda.gov look for personal and then programs then either guaranteed loans or direct loans. We did not have to provide rental history but our mid was 662. Your online lender (we had one also) will fully underwrite the loan according to USDA standards (guaranteed loans) and any overlays they may have and then submit to your STATES USDA center who will sign off on the loan. Ours had a 48 hour turnaround (Indiana), mostly they depend on the lender for vetting but can pull and fully audit any file submitted.

[Anonymous]

What kinds of things happens after underwriting, I am doing my offer right now between the seller and I. So after I make the final offer and turn it in to my lender I'm suppose to send the property to underwriting. The seller extendedy Nov 15 closing to nov 30 and ask for 7 days after closing to move. ( suppose to be older lady not lot of help with moving). I don't like this because it is after closing and you never know things may happen, but she insisted. I'm in Mississippi area and I don't like the yo- yo back n forth of the process lol and am impatient!!

[Anonymous]

I read that people who are following their USDA underwriting process were able to call a Hotline to see what day they were working on. I'm just trying to get a support system going for those of us who don't know the process and are first time home buyers, it is really rough to go through the closing process!! The waiting is the worst, I have looked, and looked, there is not any relevant updated stories from people today besides this FICO forum that I have found. My buyer realtor is pretty good seller relator is a top seller but I am waiting and waiting, and wondering without having some people to talk to who have gone/ about to go through the process.

[Anonymous]

A couple things - direct and guaranteed USDA loans are very different. There is no hotline for guaranteed. Direct loans are just that, they start and end with the states USDA office and not a lending officer.

Your loan officer will send the file to Underwriting, not you. Your job is to submit all documents to your loan officer ASAP.

You should have specified amounts to be paid for each day that the home is occupied after closing and this amount should kept in escrow in case the seller does not vacate on schedule. Your realtor should have this in the contract. Very important.

After you have approval from underwriting your file is sent to the USDA office, if it get approved there it is sent back to the lender for final documents and then closing is scheduled. All this time things can come up so hold on before making any changes to your credit until you have keys in hand and also because this is income based (both direct and guaranteed) don't mess with your income either.

[Anonymous]

Ok I see my buyer realtor didn't say anything about cash going to escrow for the days after the seller is still in the home!! Ok so guess in going guaranteed then, well I will certainly ask about this cash each day for seller staying in the home, that goes to me?? Only thing I asked was that they leave the fridge to stay with home because they are needing 7/additional days to close. I am so stressed as the lender is saying or asking for little things here and there. I thought they would already have underwritten my credit ect and I didn't get my approval letter but then little things change said i was 50.00 below the income bracket and that pushed me to have to go FHA, well I told them I had additional income I rent part of my home to a roommate for the last year have lease agreement and Renter pays 300.00 and I give rent receipts. They said OK that puts you back to get USDA no money down. If not I was FHA 3100 down!!! Also appraisal fee is not wrapped into my loan so I have to pay inspection 425.00 appraisal 400-500.00 upfront things are really adding up!! What were you requested to pay as your process went along??

[Anonymous]

So I wouldn't get too excited. Anything that is legal as far as paying for extra time would have been in your signed contract. You can't add it after and it sounds like you asked for the fridge to cover the extra days.

It really depends on the lender but they really don't underwrite the loan until a purchase agreement is submitted.

With USDA loan it is zero down payment however there are several fees you as a buyer pay. Inspection (optional), earnest money, appraisal, we have paid these out of pocket both times we have purchased. You will also have to pay closing costs unless your seller has agreed to cover some or all of those.

The appraisal was the last thing we were required to pay.

USDA is a really good program but do be aware that in general it is 3.5% to 20% or more down payment and 3-5% for closing costs plus all these fees that are tacked on. Buying a home is expensive.

Good luck!