USDA Loan Backlog Questions Answered

Joshua is under contract to purchase a new home and qualified for the USDA loan. He was told by his lender that there is a backup at USDA. His question for Robert Palmer was, â??With your experience with USDA, does that sound about right? Are they backlogged that kind of time?â?

A lot of lenders right now are running 30 to 45 days to get the file underwritten. Then you tack on another 15 for USDA and you could be looking at 60 days to get the deal done.

The key is to get the file to USDA as soon as possible.

What makes RP Funding stand out is that we go ahead and get the file to USDA immediately. If you came into the office or completed an application over the phone, we'd give that file priority because it needs to be closed quickly. Another thing that sets us apart is that we continue to work on the file; we draw the closing package so that when the USDA approval comes back you can close that day. A lot of lenders wait for USDA to come back and then they move onto the next step. No one can make USDA go faster, but by working on our part simultaneously, the buyer is less affected by the USDA slow down.

Also, on USDA loans, RP Funding usually comes in around $1,500 to $2,000 cheaper in closing costs due to the lack of lender fees.