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Bama
Just curious if it matters which mortgage lender I go with when it comes to the USDA loan or should I shop for different lenders and compare? And what all would I be comparing?
Answer
Despite what the "expert" Karen says, USDA is a FANTASTIC product for you if you qualify. For many reasons....first of which your payment will be very lower with a USDA than other products.
Yes never hurts to shop around. If the purchase price is over $100k my bank is currently offering 3.5% on a 30 year fixed USDA loan as long as your credit score is over 680. Good luck.
Despite what the "expert" Karen says, USDA is a FANTASTIC product for you if you qualify. For many reasons....first of which your payment will be very lower with a USDA than other products.
Yes never hurts to shop around. If the purchase price is over $100k my bank is currently offering 3.5% on a 30 year fixed USDA loan as long as your credit score is over 680. Good luck.
What are the pros and cons to getting a USDA 100% guaranteed mortgage loan?
d_dix_22
Answer
Pro: no money down. qualifying process is less strict
Con: only rural properties so you have to live far from town (in most cases), higher loan fees than a conventional loan..
Pro: no money down. qualifying process is less strict
Con: only rural properties so you have to live far from town (in most cases), higher loan fees than a conventional loan..
Has anyone recently done a USDA mortgage loan? How backed up is USDA?
Ashley
my loan is almost done, waiting on usda approval.. how backed up are they? I heard it could take 24-48 hrs or longer.
That is not what I asked........
Answer
The time it takes for a USDA loan to fund can vary substantially, depending on individual circumstances. It is likely that your loan is being administered through the Rural Development program (part of USDA).
Rural Development can be broken out into two general categories: Guaranteed Rural Housing GRH), or Rural Development Direct. With the direct financing, you're borrowing money directly from the Rural Development program (government money), and with the GRH, you are borrowing money from a private lender for whom Rural Development will guarantee the loan as an incentive to get them to make a loan they might not otherwise be willing to do (typically because of little or no down payment). The "guarantee" in this instance replaces private mortgage insurance (PMI), and is typically funded by charging you a funding fee (I think it might be 2% of the loan). If you go bad on a guaranteed loan, the USDA will step in and play the role of insurer for the private lender.
The direct program funds periodically, and at any given time you may be on a waiting list which can be much longer than the 24-48 hours you are speaking of (people have waited a month or more in some instances). From what you are describing it would seem that either you have a direct loan which is going relatively fast or you have a guaranteed loan which is taking the normal amount of time...your lender has to submit the final loan package for approval and wait for Rural Development, who is taking applications from all over the US...not unheard of that a day or two is needed for them to get around to any particular file...many in the lending profession would tell you that is even fast!
Try to remember that it is a mortgage finance transaction, not a trip to the drive thru window. People who will be held accountable for the decisions going in to making your loan are most likely going to take what ever time they need to go through the necessary steps...even if it means another day or two.
The time it takes for a USDA loan to fund can vary substantially, depending on individual circumstances. It is likely that your loan is being administered through the Rural Development program (part of USDA).
Rural Development can be broken out into two general categories: Guaranteed Rural Housing GRH), or Rural Development Direct. With the direct financing, you're borrowing money directly from the Rural Development program (government money), and with the GRH, you are borrowing money from a private lender for whom Rural Development will guarantee the loan as an incentive to get them to make a loan they might not otherwise be willing to do (typically because of little or no down payment). The "guarantee" in this instance replaces private mortgage insurance (PMI), and is typically funded by charging you a funding fee (I think it might be 2% of the loan). If you go bad on a guaranteed loan, the USDA will step in and play the role of insurer for the private lender.
The direct program funds periodically, and at any given time you may be on a waiting list which can be much longer than the 24-48 hours you are speaking of (people have waited a month or more in some instances). From what you are describing it would seem that either you have a direct loan which is going relatively fast or you have a guaranteed loan which is taking the normal amount of time...your lender has to submit the final loan package for approval and wait for Rural Development, who is taking applications from all over the US...not unheard of that a day or two is needed for them to get around to any particular file...many in the lending profession would tell you that is even fast!
Try to remember that it is a mortgage finance transaction, not a trip to the drive thru window. People who will be held accountable for the decisions going in to making your loan are most likely going to take what ever time they need to go through the necessary steps...even if it means another day or two.
usda mortgage loan.. when the mortgage company gives you a good faith estimate is that a good sign?
ro a
Answer
you don't need to ask 3 times.
No it's not any sign. It's required that the lender give ANYONE that made loan application a good faith estimate.
you don't need to ask 3 times.
No it's not any sign. It's required that the lender give ANYONE that made loan application a good faith estimate.
USDA LOANS: got a good faith estimate from mortgage company is that a good sign...?
ro a
Answer
A good faith estimate is just that, an estimate for the loan program they are quoting. Loan officers are required by law to provide this estimate within 3 days of your loan application. It does NOT mean you have been approved or anything else. It is just an estimate.
A good faith estimate is just that, an estimate for the loan program they are quoting. Loan officers are required by law to provide this estimate within 3 days of your loan application. It does NOT mean you have been approved or anything else. It is just an estimate.
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