Great news, 2019 USDA closing turn times are currently running 1-3 business days. This is a big improvement over the past where USDA Rural Housing times could take up to 2 weeks in more populated states. Just a little background – the USDA closing turn times is the time it takes the USDA / Rural Housing office to review the applicant’s loan for a final loan commitment. Below we will break down the entire USDA loan closing process and estimated timelines:
- Buyer’s initial loan consultation and pre-approval – During this step, the buyer talks to the mortgage company about their goals and completes the USDA loan application for their initial loan pre approval. This step is generally completed in about 1 hour. Once the buyer has their letter of pre-approval, they can begin searching for the perfect home.
- Buyer finds the perfect home and goes under contract to purchase the home – Once this happens the loan process technically begins. The buyer will provide any outstanding underwriting paperwork to the lender, sign their loan disclosures, etc. This can all be done electronically or face to face. Once this step is complete, the lender will order the home appraisal. The entire appraisal, home inspection, underwriting, etc takes the lender (or bank) about 2-3 weeks to complete.
- Once the file has been cleared by the mortgage company, the loan is sent to the local USDA Rural Development office for the final loan commitment. This is the step where USDA basically checks the lenders work and ensure everything meets their requirements. As mentioned above, this step takes about 1-3 days to complete. Please note, the USDA turn times can/do change. If you have questions about the status of a USDA loan already in process with another mortgage company, you will need to contact them directly for updates.
- Once the loan file is completely approved and signed off by USDA, the file is sent back to the lender with the final loan commitment. The home buyers will generally close about 3 days later depending on the state. The entire process from purchase contract to closing takes about a month to complete. These times can fluctuate depending on the mortgage company processing the loan, home buyer and state.
Please note – the USDA refinance process is generally a little quicker as most of these loans do not require the appraisal.
USDA Mortgage Source is leading USDA loan resource. If you have questions or want to more information on the program, please submit the short Info Request Form on this page for quick service. You can also call us 7 days a week at ph: 800-743-7556
USDA closing turn times 2019