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100% & The Basic Steps on getting approved for a Guaranteed USDA loan!....A great loan for Wisconsin!

Mortgage and Lending with Funky Quail Vintage

No doubt, USDA loans are a great product!  Jason Sardi has blogged about them, I have blogged about them, and many others as well!  However, what you MAY NOT KNOW, is the BASIC steps involved when getting approved that will save consumers, Realtors, and even OTHER LENDERS who dont understand this process very well...ALOT of time!


1.  Take a COMPLETE application.

2.  Pull your OWN credit!

3.  IF credit score is above 620 you are golden!

(what that means is express documentation, Ill explain that further later)

4.  Fill out the Express Rural Development Approval Form

5.  Gather as much income documentation as possible

(generally last 2 paystubs, 2 years w2's, recent asset documents)

6.  Fax in the Approval Form, Application, Credit, Income Documentation,and a Transmittal Summary (1008) to the FUNDER you have selected!  Ie;  JP Morgan Chase

7.  Also good at this point to submit a qualify LOX if there is something 'odd' with the transacation. (this is a letter of exaplanation)

8. 48-72 hours later you get a LOAN APPROVAL from your funder! This loan approval is subject to clear title, Home Owners Insurance, Satisfactory Appraisal, and legible OTP!  



YES, it is really THAT easy!!!!!

This is great because it satisfies the Financing Contingency very quickly, and PRIOR to the OFFER TO PURCHASE BEING WRITTEN!!   Hurrah!!!

Now, keep in mind, the ADDRESS of the property STILL has to qualify, so take note!

These are the things that make SHORT SALES qo more quickly, as well as keep Sellers and REALTORS VERY HAPPY!!  :)

Yes Folks this is 100% Financing, but there are many other issues involved prior to closing! YOU MUST choose a LENDER that knows this product inside & out!

I have heard horror stories from several different people here on Active Rain ranging from Short Sale issues, property condition issues, appraisal issues, to income qualifying issues!


I would be willing to BET YOU that 95% of these issues COULD be resolved by following the above steps, PLUS, if I were a REALTOR, or the actual Lender, I would also add the following things that I DO to avoid poetential pitfalls!

A.  Look over the Property Condition Report VERY CLOSELY!

B.  If there is a Home Inspection Done, anything that is brought up within it that is safety related, weather related, or Curb Appeal related, will more than likely have to be FIXED or repaired prior to closing!  HOWEVER, and this is IMPORTANT, you can ESCROW for certain LENDER specific items and repair them AFTER CLOSING!! EVEN ON A PURCHASE! (see my other blog by clicking HERE)

C.   Drive by the home YOURSELF! 

D.  Ask the Realtor, "What is WRONG with the house?" 

E.  If you are unsure about the property address, CALL THE LOCAL OFFICE DIRECTLY!

F.  Last but not least, if the property is an REO or Foreclosure, have your title company do a "Search & Hold" on the property.  This will tell you of title pitfalls early on in the transaction!



All in all, ask ALOT OF QUESTIONS!  You need to know EVERYTHING pretty much on these deals in order to make them go smoothly! Lenders, notify your REALTOR that on a USDA deal it can be up to a 3 stage proces!  1.  Application  2. Funder Approves the Loan  3.  USDA office approves what the Funder Approves

On USDA loans, you can never know too much! Express documentation merely is once you have verified income via check stubs etc..you will only need a verbal verification of employment!  GET A CONTACT NAME & NUMBER!!!

They are fantastic, but again, you must work with someone who knows what they are doing, or, is willing to raise their hand and say, "I dont know, but I will find out!"


As always, there are MANY other things I would like to say about these loans, so  I ENCOURAGE everyone to leave comments, argue with me, ask questions, support, or fight me on this!  LOL

This is one of the best programs out there if used correctly!

Find your State office by googling:  Rural Housing, (then the state you work in)

Thanks so much!   


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We want to be your "Lender for Life"

Proudly serving the Entire State of Wisconsin since 2003

Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

USDA has been working for us for a while. Good luck with another tool.

May 26, 2009 09:16 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Hey there Terry!  I hear they are getting BIGGER EVERY DAY in TExas too!

We have a guy in our AR group that loves them as well!

I think that people in general are afraid of the unknown!  If they dont know about it, it is wrong, or evil!!! :)  LOL

Thanks for commenting!  I appreciate it!


May 26, 2009 09:22 AM
Linda Pitts
Merck Team Realty, Inc - Brandon, MS

It's a great loan!  I just wish more of my territory was in USDA territory.  We only have a few desirable subdivisions that qualify for USDA loans.

Nice Post!

May 26, 2009 01:07 PM
Michael J. Gallo
Florida Luxury Realty - New Port Richey, FL
Florida Luxury Realty - Gulf Home Sales Team

Every Realtor(R) I come in contact with is interested in this product.  Thank you for mentioning that the address is a factor.  Waterfront Gulf of Mexico properties might not qualify.  :-)

May 26, 2009 01:08 PM
Ron Tiller
Star Referral - Grand rapids MI - Grand Rapids, MI

Great post. Just not sure why you recommend asking the REALTOR what's wrong with the house. May not be a very informed source

May 26, 2009 01:16 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

LInda-  I agree! I LOVE these loan!  YOU CAN work with the local USDA office to work on other areas that you THINK should qualify!  It doesnt cost anything, but does take 90-120 days to get done!  Especially good for those "fringe" neighborhoods!  Glad I could help!  Thanks for commenting!


May 26, 2009 01:19 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Mike-  You mean 900k props don't qualifY?? Come on!   LOL

Seriously though, the price is really not TOO much of a factor, it is the reduced Debt ratio and median income qualifiers that are the killers...As far as property address, ONE WORD OF CAUTION, is that HERE in Wisconsin we have many addresses that start with a Letter!  For example, N2867 Smokestack Rd...the Rural Development Website, doenst recognize the alpha numerics!  GOOD IN A CASE LIKE THIS...to call the office DIRECTLY!!!!!!!!  THEY ARE VERY HELPFUL!~   Thanks and nice to see you again!


May 26, 2009 01:22 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Ron- INteresting that you brought that up!  I always play the "johnny appleseed card"  and throw things out there like...are gutters falling down, bad railings , or missing railings...etc....Sometimes the REALTORS know about things in the property condition report iN ADVANCE of what I SEE, that way I can deal with how we NEED TO DEAL WITH IT!  Sorry to be confusing!  MY BAD!   THANKS SO MUCH!


May 26, 2009 01:23 PM
Teresa Cooper
Home Solution Real Estate Services - North Charleston, SC
SC Lowcountry - Charleston, Dorchester, Berkeley

Darin, thank you for the very informative post!  I currently have a buyer working to get USDA Rural Housing loan approval through a mortgage broker.  It seems every time I turn around there's another "condition", or a problem with the appraisal, or some other issue!  I wish I had seen your post a month ago, but I've learned my lesson now.  I'll keep your info handy, and I plan to be much more involved on the next one of these I do!

May 26, 2009 02:13 PM
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY

Hi Darin;

I thank you for your post with very important information. Good Luck!

May 26, 2009 02:16 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Hi Teresa!

I think I TRIED to beat home that working with someone who does these alot is kINDA the key element!  These are nothing to be afraid of, or be DOWN ON...they are awesome!  Just need to know A TON of stuff UP FRONT!  THEN, you dont have to deal with the stuff that YOU are dealing with right now!

If you EVER have a question, or an issue, that you might want to discuss!  EMAIL ME!! Darin@osmwi.com

I LOVE these loans, and I have done over 200 of these babies!  They are not challenging if you know what you are doing...and like most things, as long as people KNOW WHAT IS GOING ON, it's okay!

problem is, that most people dont know what is going on!

Thanks SO MUCH for commenting!

May 26, 2009 02:31 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Mr. Stokes!  I Love seeing your comments here!  I have noticed you commenting before, and really appreciate your stopping by!  I am always here to serve, no matter what state you are in....EVEN IF I CANNOT DO THE LOAN...I WILL BE HAPPY TO ASSIST!  Truly!  Karma is a big thing!

Keep selling..and again, many thanks!  Darin

May 26, 2009 02:35 PM
Justin Douglass
Benchmark Residential & Investment Real Estate - Portland, ME

Ive been working with buyers and this loan for a few years now, its a great product and fits alot of the buyers i work with, 200k and under. Its affordable , the only thing i see that isnt the best, is the 2 points fee the government charges to do this loan.

May 26, 2009 03:05 PM
Justin Douglass
Benchmark Residential & Investment Real Estate - Portland, ME

Ive been working with buyers and this loan for a few years now, its a great product and fits alot of the buyers i work with, 200k and under. Its affordable , the only thing i see that isnt the best, is the 2 points fee the government charges to do this loan.

May 26, 2009 03:05 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

He Buckster....I am sending a link of your blog to the selling agent for our short we talked about...he will get it even if the lender clearly does not...Good to talk with you last nite...now we both know things about things/people we did not....loved it !

May 26, 2009 11:36 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN


Yes, I agree about the fee, but they DO FINANCE it which is great, and it is a pre-paid finance charge, so most people are able to write this fee off!  Which is also good!  :)

However, I do see THEIR thought process BEHIND the fee...because they are giving you a 5% RATE, NO MORTGAGE INSURANCE, and hardly any kind of verifications if the credit is good...I try to think of it like I am loaning them my own money, and what would I want??  Well, i think the 2% guarantees that the customer will STAY with that loan for some time!  :)  Also, it is a fee that they will get up front and allows THEM TO KEEP THE lights on!

I LOVE these loan where they apply, that is for sure!

Thanks for commenting!


May 27, 2009 02:00 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Sally, GREAT TALKING TO YOU last night too!  Glad David is doing much better as well!  Thanks for sending on my BLOG!  I appreciate it!   Education is VERY MUCH the key today!

Thanks again, for the info as well!  :)


May 27, 2009 02:01 AM
Roy Paeth
Barrett Financial Group - Murfreesboro, TN
Just a regular guy helping real people!

Good stuff Darin. The USDA is still the best kept secret on the mortgage side of things. There are still many people that are eligible who do not even know this option is available. I come across realtors every week who did not know that you can still buy a house with no money down. Keep up the good work.

Jun 01, 2009 01:02 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Roy, thanks so much for the nice words! YOU KEEP IT UP TOO and get the word brotha!

Thank you!


Jun 01, 2009 04:19 PM
Juliana Besa
Hey Darin I was qualified for a home loan under a USDA loan and we are set to close on the house June 12th. after submitting all my W2's and paystubs my mortgage broker is telling me that it looks like we are no longer qualifying for the USDA LOAN, and that they now have to do annual income projection because of the Overtime my husband and I have been working these past few months. My husband and I have been working our butts off in overtime to have money to pay for closing cost and other fees. My husband and I only have enough for closing. The bank is telling me that there is always plan B(which is through a FHA Loan)=O we don't have $7000 plus closing cost to put down. I'm super sad, mad, and I want to cry. What can we do? How can the bank try and project a yearly income of overtime when overtime is not always available? Also my husband and I work compressed shifts which are 12hr. shifts. I need someone who knows what they are doing, because I'm getting really really stressed out. Please help
May 31, 2014 11:31 PM