We receive many questions regarding the time frame for USDA home loans – approvals and closings. Below is a little clarification on what to expect (time-wise) while going through the USDA home buying process.
The USDA application or USDA loan pre-approval process is generally completed within the same day you apply. Our specialist will take the USDA application with you and generally call you back within a few hours provided you have all the information available. Once you have your USDA home loan pre-approval, you are good for 90 days. From this point, the home search process can begin! Once you find that perfect home and your offer is fully accepted, the USDA closing process will take around 40 days to complete.
It’s important for buyers and realtors to remember, the USDA home loan closing process takes a week or so longer when compared to other conventional loans or FHA home loans. The reason for this is the secondary Rural Development office approval that is required once the USDA lender has completed the underwriting process. Unlike all other home loans, USDA mortgages require essentially two approvals. The first comes from the USDA underwriting lender, then a second from the actual Department of Rural Development (USDA) office. The local RD office approval time generally adds a week or so to the entire process.
So from the time your home contract is fully accepted by all parties, plan on the closing date around 40 days after. This will allow enough time to go through the paperwork, inspections and underwriting time.
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Please be sure to check out the main web site www.UsdaMortgageSource.com to view all the general 100% USDA home loan program requirements. Serving all of Florida 7 days a week, including Clay County (Orange Park, Green Cove Springs, Penney Farms, Fleming Island, Middleburg) USDA Mortgage Source is Florida’s leader in 100% USDA / Rural Development home loans.
Not located in a USDA rural eligible area? Please click here to learn more about FHA Home Loans in Florida.