usda/rd underwriting guidelines - kc. usda/rd underwriting guidelines . section 1.03 program terms

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  • PURCHASE

    NON-STREAMLINE REFINANCE

    STREAMLINED-ASSIST REFINANCED

    USDA/RD Underwriting Guidelines

    Version 03.05.2020

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  • Section 1.01 Click Here for COVID-19

    Temporary Guidance

    Return to Page 1 USDA/RD Programs Version 03.05.2020 Underwriting Guidelines Page 2 of 77

    FCM USDA/RD UNDERWRITING GUIDELINES

    1.01 Table of Contents 1.02 Program Overview ............................................................................................................................ 6

    1.02.01 Multiple Risk Layering ........................................................................................................... 6 1.03 Program Terms .................................................................................................................................. 8

    1.03.01 Program Code ....................................................................................................................... 8 1.03.02 Term ...................................................................................................................................... 8 1.03.03 Loan Type .............................................................................................................................. 8 1.03.04 Occupancy Type .................................................................................................................... 8 1.03.05 Higher Priced Mortgage Loans .............................................................................................. 9 1.03.06 Loan-To-Value ....................................................................................................................... 9 1.03.07 Discount Points ..................................................................................................................... 9 1.03.08 Guarantee Fees ..................................................................................................................... 9 1.03.09 Maximum Loan Amount ..................................................................................................... 10 1.03.10 Acceptable GUS Findings .................................................................................................... 10 1.03.11 Secondary Financing ........................................................................................................... 11 1.03.12 Escrows ............................................................................................................................... 11 1.03.13 Repair Escrows .................................................................................................................... 11 1.03.14 Ineligible Transactions ........................................................................................................ 12

    1.04 Borrower Eligibility .......................................................................................................................... 13 1.04.01 Eligible Borrowers ............................................................................................................... 13 1.04.02 Ineligible Borrowers ............................................................................................................ 15 1.04.03 Non-Occupant Co-Borrowers .............................................................................................. 15 1.04.04 Power of Attorney (POA) .................................................................................................... 15 1.04.05 CAIVRS and LDP/GSA ........................................................................................................... 16 1.04.06 Social Security Number Verification ................................................................................... 17 1.04.07 First Time Homebuyer Counseling Requirement ................................................................ 17

    1.05 Sales Contract Documentation and Program Specific Disclosures ................................................. 18 Se

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    https://kc.fcmpartners.com/resources/wholesale/covid-19/ https://kc.fcmpartners.com/resources/wholesale/covid-19/ https://kc.fcmpartners.com/resources/wholesale/covid-19/ https://kc.fcmpartners.com/resources/wholesale/covid-19/

  • Section 1.01 Table of Contents Click Here for COVID-19

    Temporary Guidance

    Return to Page 1 USDA/RD Programs Version 03.05.2020 Underwriting Guidelines Page 3 of 77

    1.05.01 Sales Contract ..................................................................................................................... 18 1.05.02 Contributions by Interested Parties .................................................................................... 18 1.05.03 Electronic Signatures ........................................................................................................... 18 1.05.04 Conditional Commitment .................................................................................................... 18 1.05.05 RD 3555-21 .......................................................................................................................... 18

    1.06 Credit ............................................................................................................................................... 19 1.06.01 Credit Report Requirements ............................................................................................... 19 1.06.02 Age of Credit Documents .................................................................................................... 19 1.06.03 Credit Score Requirements ................................................................................................. 19 1.06.04 Adverse Credit ..................................................................................................................... 19 1.06.05 Credit Waivers/Exceptions .................................................................................................. 20 1.06.06 Trade Line Requirements/Credit Score Validation ............................................................. 20 1.06.07 Establishing Non-Traditional Credit Trade Lines ................................................................. 21 1.06.08 Inquiries .............................................................................................................................. 22 1.06.09 Collections/Charge-offs ....................................................................................................... 22 1.06.10 Judgments/Liens ................................................................................................................. 23 1.06.11 Outstanding Federally Insured or Guaranteed Debt .......................................................... 24 1.06.12 Disputed Accounts .............................................................................................................. 24 1.06.13 Authorized User Accounts .................................................................................................. 25 1.06.14 Rent History ........................................................................................................................ 25 1.06.15 Payment Shock .................................................................................................................... 25 1.06.16 Foreclosure ......................................................................................................................... 26 1.06.17 Chapter 7 Bankruptcy ......................................................................................................... 26 1.06.18 Chapter 13 Bankruptcy ....................................................................................................... 27 1.06.19 Consumer Credit Counseling (CCC) ..................................................................................... 27 1.06.20 Short Sale ............................................................................................................................ 27

    1.07 Ratio Analysis .................................................................................................................................. 29 1.07.01 Maximum Debt Ratio .......................................................................................................... 29 1.07.02 Established Data Tolerances ............................................................................................... 30 1.07.03 Installment Debt ................................................................................................................. 30 1.07.04 Open Charge / Revolving Accounts ..................................................................................... 31 1.07.05 Alimony, Child Support or Separate Maintenance ............................................................. 31 1.07.06 Student Loans...................................................................................................................... 31 1.07.01 Contingent Liabilities / Co-Signed Loans ............................................................................. 32 1.07.02 Business Debt ...................................................................................................................... 32 1.07.03 Loans Secured by Liquid Assets........................................................................................... 33 1.07.04 30-Day Charge Accounts ..........................................................

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