Financing in Greenville>Question Details

Johngilb5, Both Buyer and Seller in Greenville, SC

How long to close on a USDA Rural loan?

Asked by Johngilb5, Greenville, SC Mon Sep 12, 2011

We are selling our home and our buyer is pre-approved for a rural housing loan. Our appraisal is today. Once that is done how long should it take to close?

Help the community by answering this question:


It could take a week or two, or several more weeks. The appraisal is one of the many items that is needed for USDA to issue their "Conditional Commitment" (which is needed for the Guaranteed version of the program) or when there is a "Funding Commitment" (which is the process for the Direct version). If there are issues with the appraisal then that may extend out the closing.

One person's timeline who used the Direct version of USDA went like:

Under contract on house: 7/22/11
Home Inspection: 7/25/11
Appraisal: 08/01/2011
Loan funded/obligated by USDA state office: 08/09/11
Sent to attorney for title work and survey: 08/10/11
CLOSING: 08/24/11

On a recent USDA closing of mine, using the Guaranteed version (the version us mortgage lenders only have access to), we got the appraisal on 7/27 - underwriter required 1 more comp which we got it back on 7/29, and we closed on 8/19.

The rest of the process should go:

1. Appraisal is complete (1-3 business days)
2. Underwriter reviews/signs off (1-2 business days)
3. Loan is sent to USDA for conditional commitment (or if it's the "Direct" version then USDA already has it and issues their Funding Commitment) - this could take up to 5 business days
4. USDA issues conditional commitment - this is what the ~5 day wait is for
5. Lender draws up loan documents and sends them to the title company for closing - takes 1 day, or half a day
6. Final HUD-1 settlement statement is approved, and funds from the bank are wired - usually is done the same day as the loan documents are sent to the title company, sometimes it's the following day
1 vote Thank Flag Link Mon Sep 12, 2011
In SC, the entire process from contract to close is around 45 days.

USDA Mortgage Hub
100% USDA Rural Housing Loans
Serving all 50 states
Ph: 800-691-8826 (7 days a week)
0 votes Thank Flag Link Tue Nov 10, 2015
It depends on when the file gets to USDA and then what files they are working on. USDA is a great option and is worth waiting for.
0 votes Thank Flag Link Fri Jan 30, 2015
I sent loan in 12 3 14. Appraised 12 7 14. Went underwriting. Came back went to usda. 1 5 15. Still waiting. 800 credit score good appraisal. All done so what's the problem. It been there over 3 weeks now contract expiring km stressed
0 votes Thank Flag Link Tue Jan 27, 2015
is there a number to call to find out times for sc once at usda ours will be 7 days tmrw
0 votes Thank Flag Link Sun Jun 22, 2014
dont know why it showed texas i live in South Carolina if anyone knows answer could u send it or messgae me through this link my fb
Flag Sun Jun 22, 2014
Between 5 to 15 days. Depending on how backed up the USDA office is.
0 votes Thank Flag Link Tue Jan 28, 2014
Shane this was very useful and after a few years your Guarantee time frame was accurate. Buyer from Tx.
0 votes Thank Flag Link Mon Jan 27, 2014
With the changing market and current turn times (underwriting) that vary from time to time and other factors involved for USDA, I have forwarded your questions to one of our preferred mortgage specialist in Greenville SC and feel free to contact me directly for contact information if needed.

Johnny Lee, Broker/Owner
0 votes Thank Flag Link Tue Apr 24, 2012
Currently in SC the last posted USDA turn time is 12 business days so that would be over 2 weeks alone in USDA underwriting and there are NO exceptions. And before a file can be sent to USDA, you have to have a complete file which would include all of your documentation as well as the completed appraisal. So if your appraisal comes in pretty quickly - within a few days, and the file is underwritten and sent out quickly, you should have a closing within 3 - 4 weeks from that point.
We work with a great lender that expidites our files once that appraisal is in - usually that day or the next if there are no appraisal issues. So call us for your next USDA loan!
Valerie Lee
Upstate Mortgage, Inc.
Serving Greenville and SC since 1993
0 votes Thank Flag Link Tue Apr 24, 2012
It could take 2 to 3 weeks. Feel free to call me with any questions. We are local in Greenville,SC. My number is 864-438-4550 ext 15. Todd Glassman
0 votes Thank Flag Link Mon Sep 12, 2011
The process to close the USDA is 10 days after the approval from the originating bank.
0 votes Thank Flag Link Mon Sep 12, 2011
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