USDA Rural Development broadens pilot program for guaranteed single-family home loans

The U.S. Department of Agriculture’s Rural Development office has announced an expansion of its Delegated Authority Lender Interactive Test Environment pilot program for the Single Family Housing Guaranteed Loan Program.

Six more lenders have been chosen to join the pilot: Bangor Savings Bank, Fairway Independent Mortgage Corporation, New American Funding, LLC, PennyMac Loan Services, LLC, Pulte Mortgage, and Union Home Mortgage Corporation. Their participation is set to begin on Dec. 1.

The Delegated Authority LITE pilot is designed to simplify mortgage lending for homebuyers by allowing approved pilot lenders to take full responsibility for closing USDA home loans within regulatory requirements.

Under the pilot structure, USDA Rural Development shifts the pre-closing approval step to the participating lender with limited agency involvement. The change is intended to speed up loan closings while reducing the time and resources required from the federal government.

“Under the leadership of President Trump and Agriculture Secretary Brooke Rollins, expanding the Delegated Authority LITE Pilot Program will accelerate USDA lending while maintaining strong underwriting standards,” said Rural Housing Service Administrator George Kelly. “Approved lenders will take greater responsibility for loan origination and approval, reducing delays and helping more rural borrowers achieve homeownership.”

Through the Single Family Housing Guaranteed Loan Program, Rural Development gives approved lenders the ability to offer loans with 100 percent financing and no money down to eligible low- and moderate-income households in rural communities.

Rural Development guarantees 90 percent of the loan. With a Single Family Housing loan guarantee, buyers may purchase an existing home, build a new one, or finance the rehabilitation, improvement, or relocation of a home.