![]() ![]() ![]() After signing on closing day, the house is yours.Lender sends closing documents to the escrow company, which you sign (1 week).The lender completes underwriting and final approval.USDA completes a final “sign-off” (a few days to a few weeks).Lender sends the file to your state’s USDA office for approval (1 day).Lender checks the appraisal and any other items needed (1 week).You find a home in a USDA-eligible geographic area (timing depends on the home market).Lender issues a preapproval (3 days to 1 week).Supply the lender with income, asset, and credit history information (1 day).Apply with a USDA-approved lender (30 minutes).Here’s a brief overview of the USDA loan approval process and how long each step can take (though keep in mind these times vary a lot based on the lender’s workload, your application, and other factors): Verify your USDA loan eligibility. ![]() Your loan officer should be able to give you a ballpark time frame. Start hereĭepending on your situation, USDA loan approval can take several weeks to over a month - generally, 30-60 days. If you can get an FHA loan or conventional financing at a certain lender, chances are it offers USDA as well. Lenders around the country are endorsed by USDA to approve these loans. Homeownership stabilizes the local economy and community.īut getting this guaranteed loan doesn’t mean you have to search out a government office to apply. When people own homes, they purchase home-related goods and services and tend to stay in the neighborhood longer. USDA home loans are backed by the US Department of Agriculture (hence the name) to promote economic development in rural areas of the U.S. Whereas FHA requires 3.5% down, USDA requires no down payment whatsoever - and mortgage insurance is cheaper and interest rates often lower.īut many home buyers wonder how the USDA loan approval works.įortunately, getting one is a lot like getting any other loan. Once an obscure loan program, USDA loans are now popular with home buyers who might have gone with an FHA loan. Janu7 min read How USDA loan approval works ![]()
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