Traffic Jam At Rural Development
USDA Rural Development – RD program backlogged!
**** As of 1/16/2014 the backlog is nearly worked thru and turn times are running approx 2 weeks.
Just wanted to make sure everyone is aware of the backlog at rural development. The process for lenders originating RD loans is the following:
- Lender works up and underwrites file (appraisal, title work, income & asset verification, etc. . . )
- File is submitted to Rural Development for their blessing
- Loan closes
Step 2 is the hold up right now and it affects all lenders. The problem is that historically RD turn times were around 1 week. For awhile they were up to 2 weeks and we thought that was bad, but still not all that news worthy. Currently RD is looking at files submitted to them on the 15th of last month! That’s right they are running roughly 30 days. Whats that mean to you. When your structuring those purchase contracts make sure you allow for a 60 day close time on all buyers obtaining RD financing. We are making every effort on our end to get the file up to them and in line as quickly as possible but for at least the foreseeable future make sure you plan a 60 day close.
With that said RD is still a great program. More info here Some highlights include:
- Zero Down
- Low monthly mortgage insurance (PMI)
- Ability to finance closing costs into the loan
- Ability to finance repairs into the loan
- Visit RDArea.com for a map of eligible areas
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October Lunch and Learn: Unconventional Lending In An Unconventional Market
1 Hour Con Ed Credit Available!
The real estate market is constantly changing, leading to many challenges for buyers and sellers alike. Never has there been a greater opportunity to leverage innovative lending solutions to better serve your clients. As you know we think outside of the box. Yes we do lots of loans that fit in the box, but getting the deals done that don’t fit in the box can make all the difference in this market. During this class we will cover some more unique loan programs and ways to structure transactions to help get offers accepted in an unconventional world. This class is approved for 1 hour of continuing education thank you Devon Title for sponsoring the continuing education portion of this event!
Hot Topics We Will Cover
Here is a list of some of the things we will cover during the event: