Kentucky USDA and Rural Housing Changes May 1, 2013

CHANGES ARE COMING ……MAY 1, 2013!

 

PLEASE REVIEW THIS NOTICE TO MAKE SURE YOU ARE AWARE OF THE CHANGES.

 

Attached to this list serv is RD AN 4710. It contains new instructions for ratio waivers. A few key points have been highlighted below. Please read the complete AN prior to processing or underwriting loans to be submitted beginning May 1, 2013.

 

These guidelines only apply to manually underwritten loans, GUS “Refer”, and GUS “Refer with Caution” loans. These changes do not apply to GUS “Accept” loans or GUS “Accept” loans that require a “Full Documentation” loan submission.

 

  • Ratio waivers will only be granted for loans that the ratios do NOT exceed 32/44, and
  • The credit score of all applicant(s) must be 680 or greater, and
  • At least one of the acceptable compensating factors that is listed in the AN is identified and supporting documentation is provided to USDA Rural Development.
  • There will be NO exceptions to the defined ratio thresholds and minimum credit score requirements.

 

If a loan is submitted that does not meet the requirements listed above, it will be automatically rejected. Please ensure the ratios are calculated correctly and submit the required evidence with the loan submission.

 

PLEASE REMEMBER THAT WE CANNOT ACCOMMODATE RUSH REQUESTS.

 

Each loan specialist has the turn times listed on their out of office reply. If you know that your loan has not been in our office for the amount of time listed, please help us by not calling until that time has passed. If possible, please discourage borrowers, sellers, realtors, brokers, mothers, (you probably think we are kidding) aunts, and uncles, from calling and asking about loan status. It slows us down considerably. We would like to be able to turn the loans around faster and ask for your help.

 

There are a couple of other items that will help with getting a conditional commitment faster.

 

  • Please ensure that the complete1980-21 is revision 2/13. We are still getting the second page from an old version of the form.

 

 

  • Please include a copy of the HUD-1 if there has been a recently sold residence.
  • Please include a copy of the non-signing adult household member letter if there is no income.
  • Please include a payoff sheet for a refinance loan.
  • Due to the length of our turn times, if you are aware that the interest rate or loan amount will be changing within the 15 days that the loan is in our office, please let us know so that we can make the changes prior to issuing a conditional commitment and avoid processing the loan twice.

 

Thanks so much for your patience and help with these matters.

 

We look forward to working with you and appreciate the work you do to assist families become successful homeowners in rural Utah.

 

Sincerely,

 

Utah SFH Guaranteed Loan Program

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