Do you need a USDA loan in a hurry? We provide fast closing USDA mortgage loans. The time-frame to close depends on how quickly you can provide all necessary documentation.
The 3 Steps for a Quick Close:
The USDA loan process can be broken down into 3 general steps. These are: the mortgage application (loan approval), loan processing, and finally the mortgage closing.
- Quick Application – Our USDA home loan application process is simple and only takes about 15 minutes. All you need to do is send us a request to apply and we will help you apply over the phone.
- Fast Processing – We process loans fast. Very fast. As long as you send us everything required, such as pay stubs, tax returns, and the appraisal, we should be able to close your loan within 5-10 days.
- Loan Closing – Once all of the conditions have been cleared we can move to your loan closing immediately. Purchase loans are funded the same day. Refinance loans are required by law to have a 3 day waiting period (right of recision). This way if you decide to cancel the loan you may do so. After 3 days, the new refinance loan will fund.
Get Prepared – What Documentation is Required?
Being prepared to send required documentation may help expedite the processing time. The sooner you are able to send the required documentation (which will be specified in your loan approval), the sooner you can close. Below are the standard loan conditions that must be provided. There may be other conditions / requirements of your loan depending on your individual situation.
- Employment Paystubs – Your two most recent pay stubs will be required.
- Bank Statements – At least 2 months bank statements must be submitted. Sometimes, the underwriter may ask for your 3 most recent bank statements. This must be unaltered and official bank statements from your financial institution.
- Tax Returns – You will need to provide the last 2 years of W-2 tax returns.
- Home Appraisal – An appraisal of the property you want to purchase will be required.
How Do You Qualify for a USDA Loan?
We provide free USDA loan applications. If you would like to get approved for a USDA loan fast, please submit a request to apply. You may review our USDA loan guidelines below to see if you meet our requirements:
- Credit Score – The minimum credit score requirement for USDA loans is a 600 middle FICO score.
- Credit History – USDA credit guidelines cover more than just the mere credit score number. You must have at least 3 credit reported trade-lines (or verifiable alternative trade-lines). Also, you may not have had a bankruptcy or foreclosure in the last 3 years.
- Employment – You must be able to provide verifiable proof of 2 years employment history.
- Income Limits – The USDA rural development loan exists to help lower income families attain homeownership. You can not make too much money, which the income limits are based on how many people live in your household and your county/state.
- Debt-to-Income – In addition to limitations on how much total household income you may have, your income is also look at compared to how much debt you have. This is known as your “debt-to-income” ratio. Or commonly called DTI ratio. USDA loans allow a maximum of 45% DTI. So if your household income is $4,000/month, your maximum debts can not exceed $1,800 (which is 45% of $4,000). This includes your new mortgage payment, car payments, credit card payments, and other debts on your credit report (which excludes utilities, phone, auto insurance, etc.)
- Property Requirements – USDA loans are only available in designated areas, and are intended for rural areas. This includes almost all rural zones, many small towns, and in areas just outside of cities. To check property eligibility, you may do so on the USDA website.
Other Important Things to Consider:
USDA loans require that you pay an upfront guarantee fee, as well as an annual guarantee fee, which is divided by 12 and added to your monthly payments. The amount of the upfront and annual guarantee fees is based on your loan amount.