Will my USDA loan be approved by RD?
Loan sent approved by the bank and sent to USDA Wednesday evening. My only concern is that we currently live in another state and our current home is almost 1 hour from our work place, but only 20 miles away from the house that we are trying to purchase. The new house is in the same state and county where my husband and I are employed. Will USDA approve this loan? Our LO said he is not concerned, but I'm nervous since we are supposed to close next week.
The bank approved the loan. Will USDA approve the loan since the bank did?
- loanmasteroneLv 78 years agoBest Answer
USDA is not approving your mortgage loan. Your lender has approved your mortgage loan. USDA would only have to endorse your loan. In most cases this is a formality. The same would apply if your mortgage loan was a Veteran Administration backed mortgage loan. The Veteran Administration would have to endorse the mortgage loan.
During this time your mortgage underwriter would send 100's of USDA mortgages to be endorsed, yours is just one of them.
USDA does not provide the money for your mortgage loan. They guarantee your mortgage loan,if for some reason you default and not pay the mortgage loan to your lender, USDA would pay your bank, thus taking the property back as a government owned property.
You should follow the instructions of your mortgage loan officer. Don't stress out, you appear to have a good mortgage loan officer
I hope this has been of some benefit to you, good luck.