USDA Rural Mortgage Program

[bekabug]

Has anyone ever gone through this program??

After over a year of hunting...we finally found a property that qualified and wasn't falling over. Then after a few weeks of negotiation, we had a contract.

We're on day 64 of our contract and our 3rd extension...we were told it would take approximately 45 days to close. Has this happened to anyone else? Is anyone else going through this?

It's a low income program and we've invested $1700 precious dollars into this (the seller demanded $1000 for earnest money, the inspection was $300, and the appraisal was $400). It seems like there is no end in sight and we are well beyond contractual contingencies to recoup the $1000.

My agent is annoyed because she wants to get paid and this has dragged on for months. I guess they miss the "good old days" when they could close a loan in 20 days. My loan officer is apologetic but has nothing to say other than "I will let you know as soon as I know something."

I'm starting to lose hope. I'm also pregnant with our rainbow baby so my anxiety is way up there haha.

[MJsLady]

I do not know about this program, but my sister in love is a loan officer in a bank, and she says due to new gov regulations, what used to be a 30 day closing is now into 60 to 90 days.

[Taylor R.]

Are you not being told what the hold up is??

[po boy]

Originally Posted by Taylor R.

Are you not being told what the hold up is??

THis and can they tell you if funds are available?

[bekabug]

I've been told the USDA office does not take inbound calls for status updates. It's basically "It'll be done when it's done."

What I'm being told about the hold up is that since interest rates were so low and money was finally starting to loosen up in the housing market their offices have been flooded with applications while their staff has remained the same. So they're backlogged. I had everything to my mortgage company 4/23. They didn't finish their end of things until 5/21 when they sent my loan packet to the USDA (along with, literally, 30 other applications). The USDA received it on 5/22. On the USDA TN website they have a little section they update what day they're processing. Right now it says 5/28 so they've looked at it but there's still no word.

I'm applying for the Guaranteed loan, not the Direct loan. The funds are available from my lender, they're just waiting on the USDA Guarantee approval.

[po boy]

Originally Posted by bekabug

I've been told the USDA office does not take inbound calls for status updates. It's basically "It'll be done when it's done."

What I'm being told about the hold up is that since interest rates were so low and money was finally starting to loosen up in the housing market their offices have been flooded with applications while their staff has remained the same. So they're backlogged. I had everything to my mortgage company 4/23. They didn't finish their end of things until 5/21 when they sent my loan packet to the USDA (along with, literally, 30 other applications). The USDA received it on 5/22. On the USDA TN website they have a little section they update what day they're processing. Right now it says 5/28 so they've looked at it but there's still no word.

I'm applying for the Guaranteed loan, not the Direct loan. The funds are available from my lender, they're just waiting on the USDA Guarantee approval.

If they looked at it, you should have an answer or a request for more info.
PS: USDA cut their staff last year and looks like they don't intend to re-hire or hire.........
Push your loan officer!

[davel745]

Are you a conservative? Maybe you have found another scandal. LOL. All kidding aside I hope this works out for you.

[bekabug]

Originally Posted by davel745

Are you a conservative? Maybe you have found another scandal. LOL. All kidding aside I hope this works out for you.

Nooo... not at all. I'm pretty far off from that. haha Thanks though

[bekabug]

Originally Posted by po boy

If they looked at it, you should have an answer or a request for more info.
PS: USDA cut their staff last year and looks like they don't intend to re-hire or hire.........
Push your loan officer!

After a handful of phone calls I just got politely told to cool it and wait...there's nothing they can do. I was being nice...I promise!

[Jenstc2003]

Wish you luck!! Bureaucracy is a freaking curse, but as long as your buyer is patient, it will work out in the end.

[bekabug]

Originally Posted by Jenstc2003

Wish you luck!! Bureaucracy is a freaking curse, but as long as your buyer is patient, it will work out in the end.

Thank you! The seller is a bank...the property is a foreclosure (the negotiating with the bank took the first 2 weeks of April) and I'm hoping they don't tell me to take a hike if I have to ask for a 4th extension. It appraised at *way* over our negotiated price.

[mamasky]

We bought our house in October 2012 through this program. When we made an offer, our realtor told us that a 45 day closing date was going to be cutting it close. It literally came down to a day before closing before we heard that everything had gone through. The sellers had tried to back out and were looking for any way to cancel the sale (because they wanted to relist at a higher price) and had made it very clear that if our paperwork hadn't gone through, they wouldn't give an extension.
Our realtor pretty much said that once the paperwork is submitted to the government, there's nothing that can be done until you hear back from them. They were able to give an estimated time frame when the application was submitted which was "3-4 weeks" behind schedule.
Ultimately, everything went through fine and we were able to close on the date we planned. It's a really great program and worth the wait. Hopefully you hear something soon.

[SimplerTimez]

I purchased on a USDA Rural loan in 2009, and the wait can be lengthy. I was pre-approved and it still took over sixty days to close on a straight up, private owner property with no other issues than needing the USDA inspections and such. They were backlogged back then, and hadn't had staff cuts.

Good luck!

~ST

[dancingfatcat]

And I'm curious what a "rainbow" baby is

[oregon woodsmok]

There is not much you can do except for wait and hope the seller hangs in there with you and doesn't cancel when you can't meet the deadlines.

Sorry.

[mnn2501]

Originally Posted by dancingfatcat

And I'm curious what a "rainbow" baby is

Me too and have you heard anything on the loan?

[wintrrwolf]

Think in a large part it maybe where you are located. I worked with a realtor to get my mother usda guarantee loan and after finally finding a place that would be accepted. Everything was done in about 30 days, papers signed and she got the keys and move in date.

[bekabug]

Sorry for the long delay! We finally closed! We moved in on July 1. It's been interesting because the septic inspection wasn't done properly and it turned out the septic isn't properly connected to the house. Scary scary. Also, very gross. It was backing up into all the fixtures in the house.

[bekabug]

Originally Posted by dancingfatcat

And I'm curious what a "rainbow" baby is

Originally Posted by mnn2501

Me too and have you heard anything on the loan?

A rainbow baby is a baby you have after the loss of a pregnancy. We were pregnant last year and due on Oct 15. Our son passed away at 34 weeks and was stillborn on Sept 4 after 36 hours of being induced and labor. I mention it as a way to explain my abnormally high pregnancy anxiety since we lost one so late in the term after a perfectly healthy "textbook" pregnancy.

We're here in our new house and I'm 29 weeks today and due Oct 5. Fingers crossed.

[jingle5616]

OP, the USDA is about 3 months behind in mortgage processing here in Colorado. Good luck.