Update: Taking Action – Navigating the Pitfalls of USDA Financing

LIMESTONE COUNTY, Ala. (WHNT) – April Landinger lost her house in the April 28th tornadoes.

She, her husband and her 2-year-old daughter, Mia, got out before the storms hit, but when they returned, everything they owned was destroyed.

By the beginning of June, April and her family bounced back and found a new place to call their own.

“We looked at this two-bedroom house and it’s got an open kitchen and, it’s just perfect for us,” said Landinger. “It’s in a very nice subdivision. It’s just perfect.”

The Landingers were scheduled to close on their new home this week, but the day before closing they got a call from their lender.

He said Rural Development lost their file.

Once the file is resubmitted, it will take another three weeks before the loan is ready to close.

“Rural Development just makes it pretty clear if anything in that file is missing, then it goes to the back of the stack,” said Cadence Bank mortgage lending manager.

Rural Development, or USDA, loans provide borrower with 100 percent financing in rural areas.

This particular loan type needs to be processed twice, essentially prolonging the purchase of a new home.

“The lender that the customer chooses, they have to process the loan themselves,” said Hagood. “It has to go to their underwriting department. And then once that happens, then we have to submit it to Rural Development. And then their process right now, they’re about three weeks in turn time.”

A frustrating process, intensified by the Landingers’ extreme situation.

“We really want a home of our own and get back to normal,” said Landinger.

A meeting between the Landingers’ lender and Rural Development is scheduled for Monday.

WHNT News 19 will continue to follow this story and bring you the latest.

Meanwhile, there are steps that you can take to help your lending process go smoother.

Find a lender with plenty of USDA loan experience.

Ask the loan officer how many USDA loans he or she has closed in the last year.

To help speed up the application process, make sure to gather all of your necessary documents ahead of time, such as pay stubs, W-2s and bank statements.

UPDATE

The Landingers’ lender met with Rural Development on Monday morning.

The loan has been approved and they are expected to close on their new home Thursday.

1 Comment

  • Nuclear Mike

    This story is more about the failings & inefficiencies of the process of completing a loan application than the pitfalls of 100% financing…which is another pitfall solely of its’ own making not discussed in this article at all.
    Again…the editor needs to consider re-titling this story to convey the processing issues not the 100% loan amount.

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