The Single Family Housing Guaranteed Loan Program (SFHGLP) has announced upcoming revisions to technical Handbook 1-3555, Chapter 9, Income Analysis; Chapter 10, Credit Analysis; and Chapter 16, Closing the Loan and Requesting the Guarantee.

These changes are now in affect as of May 6, 2024.  Below are the highlighted revisions, for a complete list and to review please see –  Loan Origination page of the USDA LINC Training and Resource Library, under the sub-heading “New”.

1)    Bank statements – Most recent two from date of application.
2)    SS Benefit for adult HHM that is being used for qualification – Need proof of legal guardianship and proof of continuance
3)    10 day VOE can be in the form of email or VOE as long as document has name and title of person completing
4)    All HHM over the age of 18 requires a 2 year verification of income.  Current job requires a  VOE and most recent paystubs.  Can document 2 years with TRV’s
5)    Gift – Fully executed gift letter and proof received by title company.  Acceptable proof of receipt. 1) Evidence of the donor deposit to borrowers account with copy of cashier’s check from borrower or copy of Donor’s cashier check or electronic transfer paid to title company
6)    Non-Traditional credit – Can now use subscriptions and gym memberships.  Max DTI when using non-traditional credit is 29/41
7)    HOI and Flood deductible – HOI allows a 5,000.00 deductible and Flood allows 10,000.00.  When accepting the higher deductible the lender needs to be mindful on how the ability to repay would be affected in case of loss.