Working with the Right Lender for Your RD Loan


The Rural Development loan program is an important part of the Iowa housing market. RD loans are a great option for anyone moving into a community of 20,000 or less and the program is near and dear to our hearts. Because of this we have many, many years of experience processing and underwriting Rural Development loans.

Why Your Lender Matters

When it comes to RD loans, where you get your loan from DOES matter. We recently took over the loan of a borrower who had been working with a local bank to get their home loan. The bank originally pre-approved the borrower and said they would be able to do an RD loan. Then, two weeks before closing, the borrower received an email from the bank saying they could no longer do the RD loan and would have to put her into an adjustable rate mortgage instead.

Thankfully, at the recommendation of her realtor, the borrower gave us a call. We took over her home loan and, using our automated underwriting system, were able to easily approve her for an RD loan. Once we took over the loan, we were able to close it in just two weeks!

According to the borrower’s bank, they were unable to approve the rural development loan because the borrower received a “Manual” on their automated underwriting system. The loan was approved through our system, no problem. However, even if she had received a Manual from our system, we do know how to underwrite those.

What to Do if You’re Not Approved for an RD Loan

If you’re working with another lender and they tell you no on a rural development loan, please do not hesitate to reach out to us! Chances are, we can approve you for an RD loan when others can’t or won’t. We are very passionate about these kinds of programs and have a lot of experience closing on them.

If you’re just starting out, the best thing you can do is come to us first! We have always done RD loans and our in-house underwriting makes getting approved fast and easy. When you work with RMN for your home loan, you won’t have to ask about the rural development loan program – we’ll just offer it.

If you have questions about the RD loan or any other home loan programs, request a free consultation with one of our loan officers today!

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