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
Loan funded/obligated by USDA state office: 08/09/11
Sent to attorney for title work and survey: 08/10/11
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
Johnny Lee, Broker/Owner http://www.ameripriderealty.com
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!
Upstate Mortgage, Inc.
Serving Greenville and SC since 1993