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The Loan Approval Official should review all of the documents contained in the case file to ensure that they are completed properly, and must confirm that the Loan Originators underwriting decision is sound. The Loan Approval Official must approve or reject the loan within 30 days of receiving a complete case file.
Things like unverifiable income, undisclosed debt, or even just having too much household income for your area can cause a loan to be denied. Talk with a USDA loan specialist to get a clear sense of your income and debt situation and what might be possible.
The applicant must: Have the legal capacity to enter into a loan agreement; Have the financial resources to repay the loan; Have an acceptable credit history; and Meet the specific requirements for participation in the program, such as eligibility based on income and citizenship status.
Depending on the results of that analysis, the application will either be denied, due to a lack of acceptable credit history, or the Loan Approval Official may determine that the applicant has an acceptable credit history and may continue processing the application.
Approved USDA loan lenders typically require a minimum credit score of at least 640 to get a USDA home loan. However, the USDA doesnt have a minimum credit score, so borrowers with scores below 640 may still be eligible for a USDA-backed mortgage. If your credit score is below 640, theres still hope.
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Once youve signed a purchase agreement, the USDA loan application process typically takes around 30-45 days. The faster all parties work together to complete and provide documents for loan approval, the quicker final loan approval and closing can happen.
Lender issues a preapproval (3 days to 1 week) You find a home in a USDA-eligible geographic area (timing depends on the home market) Lender checks the appraisal and any other items needed (1 week) Lender sends the file to your states USDA office for approval (1 day)
After submitting your application, it will typically take three to seven days to find out if youre approved. USDA direct loan applicants, on the other hand, will submit their paperwork to their Rural Development office. The time for approval on direct loans might vary depending on the office.

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