Question Details

Heather, Home Buyer in Warrenton, VA

How long does it usually take to close a USDA loan? They said my loan has been sent to USDA for final approval.

Asked by Heather, Warrenton, VA Wed Jan 11, 2012

We were supposed to close on Friday and now they are saying they are backed up there is no way we will close this week, How long will it take USDA to ready for closing? Is it usually less then a week? I am living out of boxes and now had to reschedule my move.

Help the community by answering this question:

Answers

36
Several USDA websites/applications were disabled in connection with the recent Federal Government shutdown. This has delayed USDA’s completion of fiscal year-end accounting processes. This process will take several days to complete. The Guaranteed Underwriting System (GUS) will become operational on Monday, October 21, 2013.

Other internal USDA systems will not be operational until late next week. For example, USDA will be unable to process lender submitted loan closings until late next week.

We are uncertain when fiscal year 2014 funding will become available in the system. Thus, beginning on Oct. 21, 2013, we will begin issuing Conditional Commitments “subject to commitment authority.” Any Conditional Commitments issued “subject to commitment authority” will contain the following language:


Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell

kentuckyloan@gmail.com
1 vote Thank Flag Link Thu Oct 31, 2013
Applications received by close of business on September 30, 2013 and processed on/after October 1, 2013, due to state loan processing times, will be subject to the newly designated rural areas if the application is incomplete. A complete loan guarantee request represents the following documents.


Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
http://mylouisvillekentuckymortgage.com
1 vote Thank Flag Link Sun Sep 29, 2013
It basically took about a month for us to get final word from USDA as they are backed up about 2 weeks
1 vote Thank Flag Link Wed Sep 4, 2013
We are on the verge of losing our house do to USDA we were suppose to sign on July 19th its September 4th and our LAST extension is good until tomorrow. This process has been horrible and pretty much has caused nothing but stress on my family. We started this process in late May early June.
1 vote Thank Flag Link Wed Sep 4, 2013
We started the process in March of this year. Have lost one house and have our second extension running until December 23rd. So at that means we either celebrate Christmas in our new home or sit around our packed up rental and cry. My wife and I both have ulcers...........We feel for your family and know your pain
Flag Sat Oct 26, 2013
Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
http://mylouisvillekentuckymortgage.com


It is taking about 30 days to close a RHS or USDA loan in Kentucky
1 vote Thank Flag Link Wed Aug 28, 2013
It takes about 30-45 days currently to close a USDA loan on the guarantee 502 section of the loan. Direct USDA loan take longer
1 vote Thank Flag Link Sat May 11, 2013
Hi Heather,

It all depends on the local USDA offices. I've had some give me the final approval the same day and others take 7+ days. It also depends on whether or not your lender has actually sent the file in for final approval.

You can try contacting the local office to see what their turn times are.

Here's the office that serves your area.

Area 3 - Northern Area Office - Harrisonburg
1934 Deyerle Avenue, Suite D, Harrisonburg, VA 22801–3484
Monday–Friday, 8 AM–4:30 PM
(540) 433–9126, x134
1 vote Thank Flag Link Thu Jan 12, 2012
In my situation, my loan officer & processor (BB&T) were the ones that held up our process. She had all of our paperwork by May 2, 2014 and we had to call and email her EVERY day to keep the ball rolling. She held on to our paperwork until almost July before she even sent it for processing. It was all sent to USDA on July 7, we're hoping to close in 3 weeks. If she would have just done her job from the start we would be living in our house right now.

NEVER USE BB&T FOR A HOME LOAN!!
0 votes Thank Flag Link Thu Jul 17, 2014
I can tell you that for sure!! BB&T screwed us so bad I wanted to cry! It has been a year and my husband and 2 kids are living out of 1 bedroom with in laws. This entire process has been a disaster!
Flag Mon Jul 28, 2014
For California......see http://www.usdaloansonline.info
0 votes Thank Flag Link Fri May 23, 2014
As a seller I would NEVER do business with a buyer using USDA financing again. It is the worst example of "hurry up and wait" I've ever seen. My agent warned me it would be 60 days or more. We signed a sales contract back in January--now early March and no one can tell me if or when we will close. These loans are an example of everything that went WRONG with the real estate market. Buyers get way more house than they can afford for absolutely nothing down. Sellers get left with months of time when you can't actually close but you can;t look for a new, more qualified buyer either. Sellers: run far--run fast if they come with a USDA offer!
0 votes Thank Flag Link Thu Mar 6, 2014
All depends if the buyer is using a usda approved lender, not only will they have more knowledge and experience in closing usda loans but they will also underwrite the file faster using GUS which allows them to get the 2nd usda required approval within days based on a clean, complete file.
Also usda underwriting turn times depend on the state that the house is located in.
Flag Fri May 23, 2014
We signed the first document on November 17, 2013 starting the loan process and were told we would close by the 27th of December 2013. It is now January 31, 2014
and have no idea when or if we will ever close. I would never recommend this type of loan to anyone.
0 votes Thank Flag Link Fri Jan 31, 2014
USDA is currently taking 60-70 business days in Florida. Not exactly sure turn times for other states. New home buyers should allocate 90 days for the entire process, from the time they are under contract to purchase a home. http://www.trulia.com/blog/usda_mortgage_source/2013/10/usda…
0 votes Thank Flag Link Fri Nov 1, 2013
UPDATE - as of April 2014, USDA turn times have been greatly reduced. The entire closing process is taking only 25-30 days.
Flag Sat Apr 12, 2014
we signed the contract on our house on July 8th and haven't closed yet, we have hopes of doing so at the end of the month- we're moving from Michigan to Florida and need travel time etc. I'll never do this again
Flag Tue Nov 12, 2013
Over the last 12 months USDA has centralized all there guaranteed processing offices. This has amounted to increased turn times for the USDA 502 guaranteed loan.

The loans are basically a double underwrite in a way. After your lender has approved the loan it its underwriting the file has to go out to the local USDA office for there approval.

There are two main factors that influence the turn around times for your USDA loan.

How fast your lender sends it to USDA.

The turn around times of the USDA offices in your state.

The turn around for your loan is going to vary greatly depending on these factors.
0 votes Thank Flag Link Wed Sep 4, 2013
Btw. It's not all about the USDA, it also depends on the seller, inspector, appraiser and the schedules they have.
0 votes Thank Flag Link Wed Sep 4, 2013
We got pre approval on the USDA loan first..We found a house a lol more then 4 weeks ago, now the survey is to be ordered and the mortgage guy called USDA and they are 2 weeks behind..
0 votes Thank Flag Link Mon Aug 12, 2013
I have finally just heard word that the USDA gave us approval after waiting 30 days and then getting a denial that my LO had never experienced before. First the underwriter gave me an initial denial and then approved after further going into every statement i have probably ever owned and source. Then the usda gave me a denial, my LO was unbelievable she appealed it and came up with a game plan with a few other associates of hers. After 2 weeks she sent back for the appeal and the underwriter told her to forget it that where not what the Usda was looking for... My LO then fought with her about resending it and eventually the underwriter did..5 days later the Usda approved of it and my lo made sure to send a copy to the underwriter we are now closing tomorrow morning... GOD is good
0 votes Thank Flag Link Sun Mar 3, 2013
AMEN! and congradulations!!!
Flag Sun Jun 16, 2013
We were to close on a usda loa in in April 2012. It was approved and waiting financing. It is now 2/2013 and we still have not closed. We purchased another home and have exhausted all our saving to get us by until this closing. USDA tells me buyer totally was approved and they are still waiting financing. What can we do.
0 votes Thank Flag Link Sat Feb 9, 2013
Your USDA loan shouldn’t take longer than 60 days to close from the time of full contract. The lender typically takes 20-25 days to go through the paperwork, appraisal and underwriting. Yes, some large banks can take longer.

The USDA office (in Florida) is taking around 30-35 days on their end of the process. I would be surprised if any other states are taking as long as Florida. If you have been waiting much over 2 months, the delay is likely related to your lender… not the USDA.

Florida USDA Loans - http://www.UsdaMortgageSource.com
0 votes Thank Flag Link Mon Jan 21, 2013
Good luck with getting USDA to close on anything in a normal time frame this is a government run agency and that say's it all. My house has been under contract since September. We sent all the paper work in and were suppose to close in October it is now Dec 24th, with no closing date. I am glad that my dad could let me stay with him since I moved out of my house. What a nightmare, if you find that the buyer has this type of loan steer clear!!
0 votes Thank Flag Link Mon Dec 24, 2012
Yea the office in Virginia is still working on December 23 and 26 today, they won't even get to January loans until Feb 6. We had to get an extension through Feb 24, because they wont get to ours till around Feb 10
0 votes Thank Flag Link Tue Jan 31, 2012
I am selling to a buyer who is getting one of these loans and they just submitted the 6th contract extension. They have had the house under contract since Oct 14, 2011. All inspections and repairs were done before Christmas, the funding for the loan was in the first week of January. Still it has not closed. The closing agents have had it for weeks now. Was suppose to close tomorrow, I just got an extension for the 6th. The buyers agent says the lady at rural dev will not schedule it. I am so frustrated, I have been living out of boxes for weeks. I don't understand why it is taking so long. Good luck and be prepared to live out of boxes for awhile.
0 votes Thank Flag Link Mon Jan 30, 2012
We have one through Jan 30
0 votes Thank Flag Link Tue Jan 17, 2012
Then you need to work on getting a contract extension. Your agent should be able to help you with that.
0 votes Thank Flag Link Tue Jan 17, 2012
I was told though my payments will be cheaper with USDA because of no PMI, and It is better to go with USDA then FHA.
0 votes Thank Flag Link Tue Jan 17, 2012
Ask him if he can get you an FHA loan with down payment assistance. If your file has already gone through underwriting and been appraised it should not take long to switch it over if your lender knows what he is doing. Appraisal requirements for USDA and FHA are pretty much the same so you that would save time there.
0 votes Thank Flag Link Tue Jan 17, 2012
No, I don't really want to go with FHA, I don't have enough to put down or anyone that can loan it to me. My lender said he has tried to contact USDA, but no one is getting back to him with an ETA. He was going to try again this morning. We have to close by the end of January, that was a condition of the seller when we put the contract in on the house.
0 votes Thank Flag Link Tue Jan 17, 2012
Your lender is responsible for that and he should be the one contacting the Culepper office to find this out. But as I mentioned last Friday, they were working on files from December 12th and they are going in chronological order.

Did you forward him the information I gave you? What has he said since then?

If you are in a rush you can always go with FHA but you have to put 3.5% down. If you do not have it, a relative can gift it to you as long as it is documented. Have you considered doing this??
0 votes Thank Flag Link Tue Jan 17, 2012
How do you find out the date of the files they are currently working on?
Flag Mon Oct 22, 2012
Is there anyway I can call and they will give me a status?
0 votes Thank Flag Link Tue Jan 17, 2012
Heather I just checked with the USDA office via email and was told that they are currently working on files that were submitted on the December 12th. Your lender may or may not know that but you may want to relay that information to him.
0 votes Thank Flag Link Fri Jan 13, 2012
It is depend on under writing officer could be same day or may be a week.
0 votes Thank Flag Link Fri Jan 13, 2012
They sent it on this past Monday, we were supposed to close Friday, lender kept telling me everythign would be fine, then came back and said they are backed up and wont even give him an estimated date.
0 votes Thank Flag Link Fri Jan 13, 2012
Previously there were 7 regional offices in Virginia that reviewed lender files and issue loan guarantees so the lender could fund the loan. As of December 5th Virginia consolidated the processing of Guaranteed Rural Housing loans (USDA) to just one office in Culpepper.

Normally the review by a regional office and subsequent issue of a loan Guarantee has taken less than a week. Plan on 30 now. And that's 30 days after the lender has underwritten the file and cleared all of their conditions.

What you need to find out is when exactly your file was sent to the local USDA office. Right now it is difficult to get through to the USDA office since there are a lot of people who were not aware of the change in turn times and are flooding the phone lines over there.

I hope everything works out soon for you.
0 votes Thank Flag Link Fri Jan 13, 2012
The USDAA is always :"backed up" it seems. One thing I do know is to make sure an FHA/VA Amendatory Clause has been filed. One thing for certain is that unlike your Mortgage Company the underwriting for USDA is even tougher and longer.
0 votes Thank Flag Link Fri Jan 13, 2012
They wouldn't give my lender an estimated time frame, they just said they were really backed up, he is supposed to hopefully find out something today.
0 votes Thank Flag Link Fri Jan 13, 2012
Heather, Sorry to hear of your trouble. I would advise you get a time frame from your loan officer. Since they are in communication with USDA they should be able to give you an approximate number of days that they are backed up.

Good Luck!
0 votes Thank Flag Link Thu Jan 12, 2012
Hi, Heather. Your loan processing time frame is not dependent on the loan program, but the lender itself. Typical time frame is 15-30 days from receipt of a fully executed purchase agreement. However, some lenders, especially major banks or credit unions, can take significantly longer.
0 votes Thank Flag Link Thu Jan 12, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer