Over the past few months, we have received numerous reports of delays in processing USDA rural housing loans. Due to an expansion of the program into three new Kansas communities, a surge in loan applications due to the summer housing market and a reduction in the number of USDA underwriting staff, the USDA Kansas staff has been working feverishly to keep up with program demand.
Thankfully, we are confident that USDA is taking the necessary steps to reduce this backlog over time by taking the following steps:
(1) Hiring and training new underwriting staff to process applications;
(2) shifting resources into the program from other USDA programs; and
(3) reaching out to neighboring states for temporary help with processing loan applications.
On our end, please caution your clients that are interested in USDA loan programs that the processing time will be longer than usual and that they should not anticipate a quick closing process.
