Weekly Real Estate News
The U.S. Department of Agriculture has selected six additional mortgage lenders for a pilot program designed to shorten the time needed to close qualifying USDA-backed rural home loans.
USDA Rural Development announced the expansion October 22. The new lenders are Bangor Savings Bank, Fairway Independent Mortgage Corporation, New American Funding, PennyMac Loan Services, Pulte Mortgage and Union Home Mortgage. Their participation is scheduled to begin December 1, 2026.
How the Pilot Changes Loan Processing
The Delegated Authority Lender Interactive Test Environment, or LITE, Pilot Program allows approved lenders to assume responsibility for pre-closing approval of eligible USDA Single Family Housing Guaranteed Loan Program mortgages, within federal regulations and program requirements. The agency says the change should reduce delays and staff workload while preserving underwriting standards.
USDA’s guaranteed loan program serves eligible low- and moderate-income borrowers purchasing, constructing or improving homes in qualifying rural areas. The program can support loans with no down payment for borrowers who meet its requirements. USDA provides a 90% guarantee to participating lenders; that does not mean the federal government pays 90% of each borrower’s mortgage.
Rural Housing Service Administrator George Kelly said the expansion is intended to give approved lenders greater responsibility for origination and approval while helping borrowers close more quickly.
The six lenders join existing participants. The announcement does not change eligibility rules for all USDA borrowers or authorize every lender to bypass pre-closing agency approval.
Source: USDA Rural Development, October 22, 2026.
