The home loan application process is quite similar to that of a traditional mortgage program with the difference being that the USDA home loan is submitted to your states USDA Field Office instead of a traditional mortgage lender or bank.
The standard USDA application process begins with review of your file so as to determine whether you meet all the guidelines of the USDA eligibility requirements.
These eligibility guidelines include:
- Credit eligibility
- Property eligibility
- Income eligibility
The property that you are planning to buy must be located in a rural area with a population under 20,000 residents. Your income must be less than115% of the US median of the county. The final review will be of your current income as well as credit information so that it can be assured that you are capable of repaying back the loan.
What Paperwork do I need for a USDA Loan Application?
If you are eligible for a USDA home loan, you will finalize the current interest rate as well as order a home appraisal. After the home appraisal is done you will be required to gather the remaining underwriting items as well as prepare the file for underwriter review. Once this is done, the lender will underwrite the USDA loan which will then be submitted to the local USDA regional field office for a final approval.
At the local USDA field office your loan will be carefully inspected and reviewed as well as your credit and financial information will be taken into consideration after which it will be decided whether they will reject or approve your application. In case your loan is approved the lender will draw up the documentation and the loan will typically fund the same day of signing.
Get Pre-qualified Today
Email us or speak with one of our USDA Loan experts today at 877-342-7449 and get pre-qualified today.