The USDA Rural Housing Loan has always been a great way for young buyers to get into a home. But over the last year this loan program has become a lengthy process timewise.
Standard procedure for a USDA would be that we (Ruoff the Lender) would underwrite and approve a USDA mortgage loan for a client and then send the file to a USDA office and they would in turn review the file and then issue their loan committment. This is the Guarantee and you don't close without it.
Here in Indiana, we used to be able to send the file to whatever regional office of our choosing, which was always the one that had the least amount of files in order to get a USDA loan committment back in a 48 hour turn time.
Now they all go to one central location and are farmed out from there. The new turn times here in Indiana are running 3- 4 weeks, but you never know when it will arrive. This is really making a mess for buyers and sellers trying to plan ahead for possession day of closing.
Just curious if fellow lenders or Realtors in other states are experiencing these delays also?
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