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USDA Loan Process

The USDA Home Loan Process is just like the process for any other home loan. The key difference is a final commitment is issued from the central USDA office in Temple, Texas. Your loan will be processed just like any other home loan and when you file is complete, your USDA Loan Specialist will send it to the USDA office in Temple, TX for the final commitment to be issued. The final commitment is usually the last step in the USDA Loan Process. Once the final commitment is received, the USDA underwriter will finalize the loan and schedule your closing.

 

USDA PROCESS VS PROCESS OF OTHER HOME LOANS

 

USDA HOME LOAN PROCESS OTHER HOME LOAN PROCESS
1. Obtain Pre-Approval Letter from your USDA Loan Specialist. 1. Obtain Pre-Approval Letter from Loan Specialist.
2. Obtain Sales Contract on the home you picked out (be sure it is in a USDA eligible area and property meets USDA requirements). 2. Obtain Sales Contract on the home you picked out (be sure it meets guidelines for loan program selected).
3. Sign Loan Application Documents and send back to Loan Representative with income and supporting documentation. 3. Sign Loan Application Documents and send back to Loan Representative with income and supporting documentation.
4. Appraisal and Inspections 4. Appraisal and Inspections
5. Underwriter reviews all documents and appraisal and advises if they need anything else to finalize the loan. 5. Underwriter reviews all documents and appraisal and advises if they need anything else to finalize the loan.
6. Send underwriter any other items they requested and underwriter checks off on the items. 6. Send underwriter any other items they requested and underwriter checks off on the items.
7. Underwriter sends file to central USDA office for final commitment. 7. Underwriter issues Clear to Close.
8. Underwriter receives file back from central USDA office and issues Clear to Close 8. Schedule Closing.
9. Schedule Closing. NO DOWN PAYMENT! 9. Go to bank to get a cashier’s check for down payment to be paid at closing.
10. Just bring a pen and your state issued photo ID card to the title company and sign your final papers and get the keys to your home! 10. Bring down payment funds, pen, and state issued ID Card to the title company and sign your final papers and get the keys to your home!

 

Program Highlights

The USDA Home Loan is one of the most popular home loans today. Some say the benefits of this home loan are almost too good to be true, but they are. 



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Credit Guidelines

A great benefit of the USDA Home Loan is you don't need perfect credit. A borrower's credit may have blemishes from collections or previous late payments. For others, it may be a complete lack of credit or no active accounts. Nonetheless, these issues can usually be overcome. 

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Repairs & Upgrades

With a USDA Home Loan, you have the option to finance in the cost of repairs and some appliances. This is only a possibility if the house appraises for more than the sales price. The sales price plus the cost of repairs/upgrades cannot exceed the appraised value. 

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