Profile picture for chelseyj

Is it better to go through a lender who can do USDA loans in-house, or a lender who has to send the

Trying to decide between two potential lenders. One who can process USDA loans in house and one who would have to send the loan to USDA. Which is better?
  • February 10 2012 - Sandy
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Answers (4)

Best Answer

Profile picture for Oregon Mortgage Pro
Yes, any lender would have the funds to fund.  If a company is using a line of credit to fund (some call it direct lending which is a little confusing) or if someone is brokering it to a lender to fund, it means no difference at all to you other than loan terms and originator experience.

All lenders will have USDA do a final underwrite prior to closing.  Some lenders have overlays on the FICO score and some may not.  Many are based on 640, but you would just need to ask...

Your Loan Officer should be able to explain to you and if not try to find one that better communicates or has more than one option.  Just got with who you feel comfortable with.
  • February 10 2012
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Profile picture for chelseyj

Thank you for the clarification! We had the original lender pull our credit  a few weeks ago and have been unable to get in contact with her to obtain a copy, should we wait a while to have the new lender pull credit so that it does not affect our score?

  • February 10 2012
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Profile picture for chelseyj
Thank you for your response. They just mentioned that they have the funds in house to fund the loan and would only have to send the loan to USDA to do the final underwriting. The other lender mentioned that they send all of the details you USDA themselves and so the process takes longer. Also one lender required a credit score of 640 and the other 620. I'm beginning to get confused with the requirements to qualify for USDA. Would anyone be albe to better explain it to me?
  • February 10 2012
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Profile picture for Oregon Mortgage Pro
USDA will always need to review and approve the file along with the lenders underwriting staff.  If a lender is using a line of credit to fund or brokering, it makes no difference to the consumer.  Just do research on the Loan Originator and make sure they have the credentials necessary, followed by a rate and adjusted origination fee comparison amongst other providers.
  • February 10 2012
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