What kind of turn time have you seen for a USDA loan?

The package was submitted last week to USDA from Chase on 4/23/09 and we were scheduled to close today 4/29/09 and no package back from USDA yet. My seller is a little disturbed and I do not want for him to start panicing yet but I can feel he is getting to that point. I see no red flags yet other than not having it back from USDA.

No, I haven't dealt with Chase on a loan, however I can tell you all of the lenders are slow right now. I have four deals pending because of lender turn times or appraisal review. It is so frustrating! One refi has been with CW for over 45 days, 30 days for UW review and then the appraisal got slashed because of course the market changed since first submitted. Now we are in the rebuttal stage and that is 5-10 days. On another deal one of my agents has, has been with the lender for 60 days and each time they pick up the file they cut the appraisal and this is a short sale and we represent the seller. I am hoping things get better soon with all the lenders getting bail out money you would think they would release some of it to the consumers.

Everything is lender specific. I work at a bank where everything is handled in-house so our turn times are fairly quick (underwriting 48 to 72 hours). Before coming here I owned a broker shop and we were at the mercy of the investor, who as BrokerT pointed out, are almost all very slow because so many other investors have exited the market. USDA does have to provide a commitment but they can usually have that pulled of within 24 to 48 hours. So to answer your question - everything depends on your lender. If there are no red flags and your L.O. is also telling you there are no red flags it is likely just that most investors are very slow right now. I would suggest you get your lender to call the borrower to provide an update which will hopefully calm your buyer's fears.

Ron Pippin
"the Loan Doctor"

Well it turns out that there were problems with this loan. When the package was submitted the old credit report showing a 616 credit score was used instead of the most current one that shows a 649. To correct this the have pulled it from Chase and have submitted it through Wells Fargo. We should hear something by early next week. I guess once you submit the package to USDA there can not be any corrections made. Always learning.

I was going over this senerio with some of the people in my office and one of the agents had a very similar thing happen to them. They actually were with Wells Fargo and had to go to Chase.They have gotten their approved and should close this week.

Yes most lenders switched to a 620 minimum score on USDA in the Secondary Market. Are you going directly through WF? If so you should be ok.

I have done 2 USDA deals from a list agents side. 1 worked out and underwriting was a drag man. It took 10 days I think. Loan Doctor pegged it 'spot on', this was through a broker and I can't recall who the lender even was, but they were the problem. Where as I originally put the delay on the loan type (USDA) I think it takes a strong loan officer from a proven lender who has worked these deals in the past.

My advice is be prepared to wait. Get extensions prepared and feed the seller as much info as possible. Good luck