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USDA loan process

We have a buyer for our home that is going through USDA.  The inspection and appraisel are done and we have been told by their lender that they are in underwriting.  What are the remaining steps and how long should it take until closing?
  • March 01 2009 - Bonney Lake
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Answers (64)

Unfortunately, there isn't a clear, set answer.  If the inspection and appraisal are finished, though, you should have a final underwriting answer within a short time frame from the lender.  Underwriting can take anywhere from a day to a few weeks, but it's usually on the shorter end of that time frame.
  • March 01 2009
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Don't you have a closing date specified in your contract?
  • March 02 2009
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USDA loans require the lender underwriting approval, and then a final sign off by the USDA office in the subject property's area. The agencies are usually pretty quick to turn them around if the paperwork submitted is all complete and in good order. Still, it does take a couple extra days for this to happen. Talking directly to the buyer's lender is how to get the best info on timelines. They know their underwriting, docs, funding, etc... turntimes. If you're nervous, check your contract language. Many purchase contracts have a clause in them where after a certain period of time the seller can request in writing a copy of the full underwriting approval listing the conditions that are still outstanding to close the loan. This allows the seller to not have to just take the word of the loan officer working on the file. Hope this helps!
  • March 06 2009
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A new saying in the lending industry is MTFS for Mortgage Transaction Fatugue Syndrom!!  It used to be that we closed loans in record time, customers were happy and we all got referrals...  Now, by the time a transaction closes all parties are feeling beat up and looking to blame someone.  USDA is actually a very nice product and while it has a few documents to add to the pile the USDA protion of the loan is actually very smooth.  The real problem is that for USDA, FHA, Fannie, Freddie or any type of loan, it still requires a lender/bank to make the loan.  The market is so paraniod about even a very small odds that they would make a bad loan that they analyze, over analyze, and then analyze again every transaction to see what else they could possibly ask for in underwriting that they did not ask for the first three rounds of conditions!!  It sounds extreme, but it is what we live with every day.

The loans we used to close in two weeks with perfect borrowers and documentation not mu originatos ask me "why can't we close a loan in 30 days"!  Most lenders do give priority to purchases over refinances but turn times are arduous.   Severl large national lenders have actually done away with 30 day locks for loans completely and have 45 days as the shortest lock.
  • September 09 2009
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I would like to know we have everything ready since November and the underwriting have always excused three appraisel now they want to know the value of the lot what is going to be next I wonder if we are closing any time I wonder
  • January 12 2010
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My file finally got sent to USDA on 9/30/12.  Heard they had a Fiscal year and are running behind.  The tracking phone line said they are now covering 9/20 - 10/1/12 files.  Our's arrived October 1st.  I heard the turnaround was six days?  It is October 31st, and this is by the way in Florida.  What would you say about this?
  • October 31 2012
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hi Pepita - what tracking phone number do you have?
My loan is going to the USDA today (Florida) and I would love to know what the waiting period is.  My LO says 30 days.
  • November 01 2012
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I am on the same boat as Pepita. I too am in Central FL and our file was sent over to USDA on 10/5. I called this morning and they are still looking through files submitted to them on 9/20-10/1. They have been on these files since Monday 10/29/12.

I have been keeping track since that Monday because we were told by our LO that we should close that day 10/29. Obviously that did not happen... Very frustrating!! I found this number through someone replying to one of my postings and on the USDA FL website, they also list an email address. But it will provide you the same information as the phone line.

This is the number 352-338-3421. This is the Gainesville USDA office and they handle ALL USDA files from Central Florida up towards Northern Florida. Apparently there are two USDA Offices and the second one I believe is located in Miami handling all the Southern USDA files.

They update their recording every morning! GOOD LUCK!
  • November 01 2012
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Hi guys, my loan went to usda on 10/16 and our original close date was 10/31 we had to request an extension until 11/27 :( since usda centralized the turn time has been 30 days. My realtor was able to speak with a rep at the usda office and she confirmed they weren't even close to viewing our file. I call the rural development guarantee loan origination updated line every morning since 10/16 and it seems it takes a week to work on the current files they are viewing. Last week they were working on 09/20-10/02 files and today they are viewing 09/26-10/02 files. I pray the best for everyone :) I know this time can be very nerve wrecking but stay lifted up and encouraged, we have made it this far :) and we are at the end of this process :) next step is closing and the keys to your home :)
  • November 06 2012
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Hi HomeBase32!

I am responding to your question. I was able to come in contact with someone in the USDA office via email last week. She was kind enough to provide me with a little insight as to why they have been delayed.

Unfortunately due to being very understaffed and swamped with high volumes of USDA files for review, has led them to fall behind. But the big kicker is that they have been coming across many INCOMPLETE files from Loan Officers. Adding more to the delay. She had explained to me their new approach when reviewing files, hoping it would make the process flow faster. Rather than sitting on an incomplete file and communicating back and forth with the LO, they will immediately notify the LO of the issues with their file, set aside, and continue with the next. Then once they hear back from the LO and make sure they have submitted a COMPLETE file, will they continue to work on it.

I do not know why they have not been doing this since the beginning is beyond me, but at least I know they are on top of the situation and are doing their best to reach every file on time and try to get responses out as soon as they can. I know this waiting has been very frustrating for many people, including my husband and I who have been homeless (living with my in-laws) since Oct 11th thanks to our LO's giving us the green light to turn in our termination notice with our leasing office way too soon!!

Yes you are right as of today (11/2) they are reviewing files submitted to them on 9/26-10/2. It has been a VERY slow progress. Our file was turned over 10/5! We are only 3 days away, however, last week they were reviewing files submitted on 9/20-10/1 the entire week! That is why I sent an email and received a detailed response.

They are truly working diligently to get the files reviewed and answered as quickly as possible and as accurate as possible, but there are loan officers NOT following through with USDA's guidelines and that is what's been causing most of the delay!!

Hope this helps and GOOD LUCK TO YOU!!! I shall continue to post again once I hear more news!!  
  • November 06 2012
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Thank you so much user801327 :) My husband and I greatly appreciate this update :)
  • November 06 2012
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Just called the USDA line and they are currently reviewing files submitted on 10/01-10/02!! With a few outstanding files waiting for review.. Good news is they are making major progress :)
  • November 07 2012
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You are so welcome HomeBase32!!

Yes I too JUST called and that is great news! She sounded pretty optimistic! I truly hope that by end of this week or early next week we hear from our LO!!

I shall definitely keep you guys posted!

Have a wonderful day :)
  • November 07 2012
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USDA is still reviewing files received 10/01-10/02... I was so hoping they would have moved on from those files today :(
We are currently on business day 18
  • November 08 2012
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Well guys :) how is everybody hanging in there? The USDA updated phone line says they are still reviewing files submitted 10/01-10/04. Has anybody heard anything back from the USDA? we are sitting at 20 business days
  • November 13 2012
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Nope nothing for my file as of yet.

I did, however, end up contacting my loan officer's boss on Saturday morning after a huge concern came up Friday afternoon. My husband and I were done with dealing with him!

His boss was looking through files and apparently another one of his clients ended up receiving their RD Commitment Letter late Friday afternoon, their file was submitted on 10/1! He informed us with that information so that we could rest assure that USDA are slowly inching their way towards our file which was submitted on 10/5. I am hoping for a response before end of this week. I would truly LOVE to be in our home on Thanksgiving Day :(

They are making progress but gosh it is SO SLOW and frustrating for those who have been waiting for over a month like you and I!

GOOD LUCK though! Our day is coming, you'll see!! :)

Emy
  • November 13 2012
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Thanks so much Emy, it is so encouraging to talk to you :) INCHING is definitely the word. laugh :) I have another person I email who file was submitted 10/01 and I emailed her today and she is still waiting to hear something back. Surely, you will be in your house before Thanksgiving. your file will have to be back by monday the 19th if your clear to close turn time is 24-48hrs like ours is :)... It will be back by then. Im hoping they will inch forward and cover the next set of files so you can get your back by this friday :) hang in there Emy, your right our day is coming :)
  • November 13 2012
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You are very welcome!! ^_^ Same here, it feels great to finally make contact with someone who is experiencing this dreaded wait for a positive response from USDA!

Gosh who would have thought that buying a home was suppose to be this frustrating. I have yet to hear from friends and/or family that they actually had a SMOOTH experience from signing a contract down to closing. I am sure the other person you are chatting with will SURELY hear back this week! How exciting for them!! :)

As soon as I hear back from USDA or my Loan Officer's boss, I will surely let you know HomeBase32! :)

Stay positive and again sending you lots and lots of GOOD LUCK your way!! ^_^

Smiles!
Emy
  • November 13 2012
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Well Emy :) yet another day, ugh! still viewing the same files 10/01-10/04
I had emailed one of the Guaranteed Housing Specialist and she said, " The reality is we can't keep up with the demand for our GRH program". But 
Emy I honestly think its worth the wait and the investment we have already put in it :). Let me know if you hear anything. she also said they had lost borrowers to other programs. In a way thats a good thing for us. 
  • November 14 2012
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Emy, has your file come back? Alicia
  • November 14 2012
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Hi Alicia!

I apologize for my late reply, but I was out of work sick yesterday (seems as if stressing over this situation is causing me to get sick) anyhow, I called this morning and they are FINALLY on 10/1-10/5!! Now the waiting game switches to hear from our LO's boss to know if we are ready to close!

I pray, pray, PRAY things go okay!! We have come this far and it would be extremely frustrating to hear something went bad for whatever reason. I will surely let you know once we hear something!!

When was your file submitted?

GOOD LUCK TO US BOTH!!! :)

Emy 
  • November 15 2012
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Hey :) I'm standing in agreement with you Emy :) our file was submitted 10/16 so we still have a wait ahead of us :) we are at business day 22!! I completely understand your frustration with this process, but please take care of yourself we can not allow this process to interfere with our health. And stress weakens your immune system, it can cause your hair to thin etc. I pray your strength.
  • November 15 2012
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Hey Emy have you heard anything? I had the privelege in speaking to another person whose file was submitted to USDA on 10/03 and this person has heard back and has closed on there home the beginning of this week :)
  • November 16 2012
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As with any other loan, the borrower needs to get fully approved.  After the appraisal and inspection, underwriting continues checking income, assets, credit issues, etc.  The time frame depends on the lender that is processing the loan, but you should hopefully have a decision with 1-2 weeks and be able to schedule your closing.  Best of Luck!
  • November 16 2012
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Hey Alicia!

Well that is awesome news for them! At least they'll be in there new home on Thanksgiving! As for me, unfortunately for the same reason my husband and I decided to seek answers ourselves (we simply cannot rely on our loan officer) it turns out our file was actually turned over to USDA on the 9th of October, not the 5th!! We found this out yesterday.

Can you believe that?!?!

My husband and I are sooooo upset with him that at times we just want to completely walk away from this deal and go elsewhere!

It took me sending an email to his loan processor yesterday morning to ask a question and re-confirm that our file was indeed turned over on the 5th, well she took while to answer, but when she did and I saw the date, I was FLOORED!

So we are now back to square one on having to wait again four more days until USDA are reviewing files submitted on 10/9....... Today they are STILL on 10/5...

I am so frustrated and sad that we definitely WILL NOT be spending Thanksgiving in our new home..... 

Hope you are doing much better than we are.
  • November 16 2012
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OMG Emy! I'm so sorry your having to go through this :( you and your family just hang in there!!! I completely understand. Had your LO been completely honest with you in the beginning you would not be disappointed. However, I heard that USDA will be temporarily bringing people on beginning on Monday to assist with the backlog. So prayerfully this process will speed up tremendously :).. Stay positive Emy.. We will be in our homes soon.before next month that's for sure. And there is only two weeks left so you and your husband be encouraged its almost over :)
  • November 16 2012
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Alicia you truly made my weekend!! Thank you! That is FANTASTIC news to know that USDA is FINALLY seeking assistance!! Then there still is hope :)

Thank you for your blessings, we are praying hard that the good Lord hears our prayers! I know it will pull through, it's just this whole situation with our loan officer truly has left us with a very bad taste in our mouths. How could anyone be so incompetent? I am sorry to say that, but if I were to provide you with all that we have been through with this person, you too would feel the same way :(

Well now we wait! How I hope they begin to move through the files a lot faster now with the extra assistance!! Again, thank you so much for sharing it is very much appreciated!!

Hope you and your family are having a wonderful weekend!!

Emy :)
  • November 17 2012
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Good morning Alicia!

Well good news this morning, USDA are now reviewing files dated 10/3-10/8!! They are moving a little quicker now! Let's hope that by the end of this week they may have moved a lot further.

Hope you had a nice weekend! :)

Emy
  • November 19 2012
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That's GREAT NEWS!!! Emy.Im assuming with this additional Help they will get through these files quickly. What's your contract end date?
  • November 19 2012
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Emy!!! They are reviewing files from 10/03-10/10!!!!!! Yay!!!!!!!! You should be hearing something soon :) I'm excited for you!!!! Let me know the moment you hear back :) PLEASE :)
  • November 20 2012
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