JAMESTOWN, N.D. – First Community CU became the first lender in the state to process a loan through the U.S. Department of Agriculture’s Rural Development Guaranteed Underwriting System, aimed at speeding up mortgage lending.
The system was developed by USDA Rural Development to automate a manual underwriting process for its Section 502 Single Family Housing Guaranteed loan. The system speeds up the determination of a borrower's income and a property's eligibility.
Section 502 Guaranteed Loans are made to qualifying low- and moderate-income families to purchase modest homes in rural areas. The loans are made by mortgage lenders, such as credit unions, banks and mortgage companies. Loans can be made up to 100% of the appraised value of the property. Rural Development guarantees the loan made by the lender in case of default by the borrower.
