Kentucky USDA Mortgage Changes with Coronavirus and Covid-19

USDA Temporary Exceptions for Appraisals, VVOEs, and transcripts

USDA’s temporary flexibilities for appraisals and VVOEs. This flexibilities are effective through conditional commitments issued on or before May 26, 2020.

For purchase and non-streamlined refinance transactions, when an appraiser is unable to complete an interior inspection of an existing dwelling due to concerns associated with the COVID-19 pandemic, an “Exterior-Only Inspection Residential Appraisal Report”, (FHLMC 2055/FNMA 2055) will be accepted. In such cases, appraisers are not required to certify that the property meets HUD HB 4000.1 standards. The appraisal must be completed in accordance with the Uniform Standards of Professional Practice (USPAP) and the Uniform Appraisal Dataset (UAD).

New construction and construction to perm transactions continue to require a full appraisal.

USDA will accept one of the following:

An email meeting the following requirements:
from the borrower’s direct supervisor/manager or the employer’s HR department, and
from the employer’s email address, such as name@company.com, and
contain all the standard information required on a verbal verification of employment, including the name, title, and phone number of the person providing the verification.
An additional two months of cash reserves (PITIA) in addition to any other required funds for reserves and closing.

USDA requires tax transcripts
to ensure all income is considered for purposes of annual income calculation. USDA guidelines HB-1-3555 9.3 (E) 4 allows for loans to be closed without tax transcripts when the loan file contains evidence that transcripts were unable to be obtained. A response from the vendor may be acceptable to meet these requirements.