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:
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:
One of the biggest myths out there is that you need a bunch of money to buy a house. That’s simply not true. There are a number of No and Low down payment options for home buyers. On top of that you don’t have to be a first time home buyer to access many of those programs. During our next lunch and learn we will cover all the different options out there for buyers looking to minimize their down payment. Over the last couple years its been harder to get a lot of these types of offers accepted. However, with the market going back to a much more “normal” state it’s not nearly as hard as it was just a few short months ago. This is the perfect time for Realtors to reconnect with their past customers and get back out there looking. Come check out this lunch and learn and get a refresh course on low down payment options for buyers!
Here is a list of some of the things we will cover during the event:Visit Jeremy's Blog