HomeDirection is not affiliated with the USDA or any government agency.
HomeDirection is not affiliated with the USDA or any government agency.
Our Service Fee:
For applications after February 26th, 2024, our service fee is between $975 and $2,000 depending on your state. This covers our help with preparing your file and guiding you through the process. We require this fee before we start working on your application, and it cannot be added to your loan amount. Our services are not required to apply for a USDA direct loan and you are welcome to apply on your own. We are not USDA direct loan packagers or directly affiliated with the USDA.
Standard Loan Costs:
These are separate fees charged by others involved in the mortgage process, such as credit report bureaus, insurance companies, and closing services. These costs can vary by state, but may potentially be covered by the seller during negotiation.
Yes, at any time. Loans are subject to subsidy recapture, and you can read more from USDA’s fact sheet on subsidy recapture: Here
If you've received payment subsidy, you may need to repay it.
The amount you will need to repay varies on every scenario. You can read more from the USDA's fact sheet on subsidy recapture: Here
Yes, a soft credit check, called a self-pulled tri-merge report, showing three scores is necessary to submit an application.
USDA will also pull their own tri-merge credit report at a cost of $30. This will be a hard inquiry used for your final application.
Your approval demonstrates you are eligible for 120 days to find a home and go under contract. You are not required to close within 120 days.
The loan takes longer than a conventional loan to close after going under contract and an inspection cannot be waived.
HomeDirection has reviewed thousands of USDA 502 direct applications and from 2021 to 2024 we packaged hundreds of applications. For applications submitted prior to February 26th 2024 HomeDirection served as a certified packager. For applications submitted after February 26th 2024 HomeDirection is not a certified USDA direct loan packager.
No, HomeDirection itself does not offer loans or originate loans, however we work with professional lenders to find the best possible solution for your home purchase.