Government Loans

It has become apparent that this is the year of the slow loan process.

Yes. There are government loans out there where you do not have to put any money down but if you take advantage of this? You will pay in other ways.

Right now, today, I have two such deals going where buyers are getting a USDA loan. No money down and that's fantastic. But....

Be prepared to wait and be prepared to do extraordinary things.

First case is a Fannie Mae house with a USDA 100% guaranteed loan. These used to sail right through but over the last 24 months? Nope.

Just. Nope.

The process has become a lengthy one. First with home inspections. Then with "fixes" then the bank sends an appraiser. That appraiser will fill out forms for USDA. Appraiser will "ding" the property for things like gutters, pressure relief valves on water heaters, GFI's near water (kitchens and baths) and outside, CO detectors, battery life in CO detectors and smoke detectors. This is a small list of things but these things keep coming up.

So....sellers...if you want it gone, do these things! If you aren't handy, call a Mr. Fix-it and get it done!

These 'issues' can hold up the loan. These fixes have to be fixed before the loan gets sent to processing.

In Springfield.

Allow 14 business days.

These are the things your banker should be telling you but, nope. That's left up to me to be the bearer of bad tidings.

People, these loans are a good product. They allow you to get into your house with no money down but, sweetie, honey, baby, lovey, you are going to have to wait for that loan.

Argh.