100% & The Basic Steps on getting approved for a Guaranteed USDA loan!....A great loan for Wisconsin!

By
Real Estate Mortgage Broker with Funky Quail Vintage

No doubt, USDA loans are a great product!  Jason Sardi has blogged about them, I have blogged about them, and many others as well!  However, what you MAY NOT KNOW, is the BASIC steps involved when getting approved that will save consumers, Realtors, and even OTHER LENDERS who dont understand this process very well...ALOT of time!

 

1.  Take a COMPLETE application.

2.  Pull your OWN credit!

3.  IF credit score is above 620 you are golden!

(what that means is express documentation, Ill explain that further later)

4.  Fill out the Express Rural Development Approval Form

5.  Gather as much income documentation as possible

(generally last 2 paystubs, 2 years w2's, recent asset documents)

6.  Fax in the Approval Form, Application, Credit, Income Documentation,and a Transmittal Summary (1008) to the FUNDER you have selected!  Ie;  JP Morgan Chase

7.  Also good at this point to submit a qualify LOX if there is something 'odd' with the transacation. (this is a letter of exaplanation)

8. 48-72 hours later you get a LOAN APPROVAL from your funder! This loan approval is subject to clear title, Home Owners Insurance, Satisfactory Appraisal, and legible OTP!  

__________________________________________________________________

 

YES, it is really THAT easy!!!!!

This is great because it satisfies the Financing Contingency very quickly, and PRIOR to the OFFER TO PURCHASE BEING WRITTEN!!   Hurrah!!!


Now, keep in mind, the ADDRESS of the property STILL has to qualify, so take note!

These are the things that make SHORT SALES qo more quickly, as well as keep Sellers and REALTORS VERY HAPPY!!  :)

Yes Folks this is 100% Financing, but there are many other issues involved prior to closing! YOU MUST choose a LENDER that knows this product inside & out!

I have heard horror stories from several different people here on Active Rain ranging from Short Sale issues, property condition issues, appraisal issues, to income qualifying issues!

_______________________________________

I would be willing to BET YOU that 95% of these issues COULD be resolved by following the above steps, PLUS, if I were a REALTOR, or the actual Lender, I would also add the following things that I DO to avoid poetential pitfalls!

A.  Look over the Property Condition Report VERY CLOSELY!

B.  If there is a Home Inspection Done, anything that is brought up within it that is safety related, weather related, or Curb Appeal related, will more than likely have to be FIXED or repaired prior to closing!  HOWEVER, and this is IMPORTANT, you can ESCROW for certain LENDER specific items and repair them AFTER CLOSING!! EVEN ON A PURCHASE! (see my other blog by clicking HERE)

C.   Drive by the home YOURSELF! 

D.  Ask the Realtor, "What is WRONG with the house?" 

E.  If you are unsure about the property address, CALL THE LOCAL OFFICE DIRECTLY!

F.  Last but not least, if the property is an REO or Foreclosure, have your title company do a "Search & Hold" on the property.  This will tell you of title pitfalls early on in the transaction!

 

 

All in all, ask ALOT OF QUESTIONS!  You need to know EVERYTHING pretty much on these deals in order to make them go smoothly! Lenders, notify your REALTOR that on a USDA deal it can be up to a 3 stage proces!  1.  Application  2. Funder Approves the Loan  3.  USDA office approves what the Funder Approves

On USDA loans, you can never know too much! Express documentation merely is once you have verified income via check stubs etc..you will only need a verbal verification of employment!  GET A CONTACT NAME & NUMBER!!!

They are fantastic, but again, you must work with someone who knows what they are doing, or, is willing to raise their hand and say, "I dont know, but I will find out!"

 

As always, there are MANY other things I would like to say about these loans, so  I ENCOURAGE everyone to leave comments, argue with me, ask questions, support, or fight me on this!  LOL

This is one of the best programs out there if used correctly!

Find your State office by googling:  Rural Housing, (then the state you work in)

Thanks so much!   

-Darin-

Check out my other blogs or subscribe by clicking below!

 

We want to be your "Lender for Life"

Proudly serving the Entire State of Wisconsin since 2003

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Topic:
Mortgage / Finance
Location:
Wisconsin
Groups:
All About Mortgages/Mortgage Networking
Mortgages
Realtors®
The Lounge at Active Rain
USDA Rural Development Loan Group
Tags:
100
usda
wisconsin
financing
guidelines
loans
mortgages
realtors
mortgage companies
loan officers
rates
mortgage insurance
low down payment

Comments 21 New Comment

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Rainmaker
1,273,674
Sally K. & David L. Hanson
WI Realtors - Luxury - Short Sale - CDPE, REDS
Keller Williams 414-525-0563

He Buckster....I am sending a link of your blog to the selling agent for our short we talked about...he will get it even if the lender clearly does not...Good to talk with you last nite...now we both know things about things/people we did not....loved it !

May 27, 2009 06:36 AM
Ambassador
42,041
Darin Osenberg
Funky Quail Vintage

Justin,

Yes, I agree about the fee, but they DO FINANCE it which is great, and it is a pre-paid finance charge, so most people are able to write this fee off!  Which is also good!  :)

However, I do see THEIR thought process BEHIND the fee...because they are giving you a 5% RATE, NO MORTGAGE INSURANCE, and hardly any kind of verifications if the credit is good...I try to think of it like I am loaning them my own money, and what would I want??  Well, i think the 2% guarantees that the customer will STAY with that loan for some time!  :)  Also, it is a fee that they will get up front and allows THEM TO KEEP THE lights on!

I LOVE these loan where they apply, that is for sure!

Thanks for commenting!

D

May 27, 2009 09:00 AM
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42,041
Darin Osenberg
Funky Quail Vintage

Sally, GREAT TALKING TO YOU last night too!  Glad David is doing much better as well!  Thanks for sending on my BLOG!  I appreciate it!   Education is VERY MUCH the key today!

Thanks again, for the info as well!  :)

Bucky

May 27, 2009 09:01 AM
Rainmaker
46,514
Roy Paeth
FHA USDA and Homepath Mortgage Loans Illinois NMLS
Command Capital Mortgage Services

Good stuff Darin. The USDA is still the best kept secret on the mortgage side of things. There are still many people that are eligible who do not even know this option is available. I come across realtors every week who did not know that you can still buy a house with no money down. Keep up the good work.

June 01, 2009 08:02 PM
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42,041
Darin Osenberg
Funky Quail Vintage

Roy, thanks so much for the nice words! YOU KEEP IT UP TOO and get the word brotha!

Thank you!

Darin

June 01, 2009 11:19 PM
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