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Why use the USDA Loans for Clients and Do They take more than 30 days to close ?

By
Mortgage and Lending NMLS #201548

I Know many of you are hearing more of the USDA Loan Program, but some are still unsure of what are the Benefits and most importantly, the time it takes to close a loan.

First , The Benefits of the USDA Loan:

1) 100% Financing, NO Down Payment Required

2) NO PMI, The Guaranteed Fee is financed into the Loan

3) Lower Interest rates on 30 year Fixed.

4) Some repairs may be added into the Loan ( Ask me about this )

5) If the Buyer, has No Down Payment, and they want to purchase a Home that is Eligible in the area for USDA and can not borrow gift funds from the family members, the USDA Program is a great Option.

NOW , The question I am always asked: USDA TAKES ALMOST 60 days to close, WHY ??

In General, it comes down to how the Lender is set up to Process and Deliver the USDA Loan is what usually takes the longest time.

SO WHAT IS THE SOLUTION ?

I can not speak for the other lenders, but I can speak for our Company!

We have a unique Opportunity that decreases the Process and Underwriting Time, so that we can close the loan under 30days. WHY ? Because all of our USDA Loans with Franklin American Mortgage is underwritten by our In House Underwriter and then sent directly to the USDA Office.

We by pass the Middle Man Company, so that we can close the loans faster and provide faster Service to our realtors and most importantly, OUR CLIENTS !

So check with your Lender on their  Process and   Delivery Turn Time.

This is a great program that Benefits the Buyer, when they may have no other options, and if you would like additional information, I would be happy to provide that to you !

Your Client Deserves the Best Service, Delivery Time and most importantly,Communication !

Have a wonderful Day !

Eric Meruelo

Branch Manager

Franklin American Mortgage Company

Springfield, MO

www.franklinamerican.com/ericmeruelo

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Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Eric,  While some lenders are satisfied with the status quo some leverage relationships and technology to provide excellent service. 

Dec 03, 2009 04:36 PM