What is the document required to be issued by the RD office before the loan should close?

The Conditional Commitment (3555-18) is a key document issued by the Rural Development (RD) office that signifies the agency's approval for a USDA Rural Housing Loan. This document indicates that the lender can proceed with closing on the loan, as it confirms that the property meets the necessary requirements and that the applicant is eligible for the program.

The Conditional Commitment involves a thorough review process that ensures all terms and conditions have been met before the final loan approval. This is a critical step in ensuring both the borrower and lender are protected during the transaction.

While the Loan Approval Notice and Funding Certificate may be relevant to the loan process, they do not serve as the final pre-closure document required specifically by the RD office. The Final Closing Disclosure is also important, but it is issued after the Conditional Commitment and pertains to finalizing the terms of the loan prior to closing, rather than the RD’s approval to proceed. Therefore, the Conditional Commitment (3555-18) is the essential document required to be in place before a USDA Rural Housing Loan can close.