We are seeing many customers purchasing in our area using the USDA Home Loan - Rural Development Program. It does not require that you purchase a farm, although it does restrict the purchase to more rural areas. In the Triangle, meaning Wake, Franklin, Durham, Orange, Johnston and Harnett Counties - we have several USDA Offices.
Why would you care where the USDA Offices are? Because, unlike ANY OTHER LOAN PROGRAM, USDA Home Loans must be "re-underwritten" by the folks at the office assigned for your county. No switching to an office that might not be as busy... you go to the office assigned to your county.
The Government's not hiring a ton of USDA Underwriters. So, whereas in the past we could get a loan to USDA, and have them underwrite it in 3 days - it's now taking 3 WEEKS.
USDA Home Loans are ALSO underwritten by the Lender - so it's a TWO step program. You will not have a quick close with one of these puppies. GREAT PROGRAM, just not enough underwriters in some areas.
For instance, Johnston, Harnett and Lee counties (the WHOLE county qualifies) have only 2 Underwriters. We recently "lost" a week because the insurance company didn't want to give us a binder 3 weeks before closing. Sorry, but the information we put in GUS must be VERIFIED and accurate!
Who is GUS you might ask? Government Underwriting System... that's right, USDA Rural Development doesn't use the FNMA or FHLMC underwriting engines. I'm cool with that - they have their own... but they ALSO have a PERSON that has to underwrite them!
So if you are wanting to purchase a home, and you qualify for the $8000 Tax Credit... time's a wastin'! Get to it! You will need every DAY in November to get that deal DONE and CLOSED.