Program Summary
Any underwriting or eligibility guidelines not listed specifically within these product guidelines in Rural Housing guidelines must adhere to FNMA/FHLMC guidelines.
USDA’s Fiscal Year runs from October 1 – September 30 each year. During the temporary lapse of funding, Rural Development will issue Conditional Commitments “subject to the
availability of commitment authority” for purchase and refinance transactions. SNMC will allow Rural Housing loans to close and fund with this verbiage on the Conditional
Commitment. All other conditions on the Conditional Commitment must be met.
Approved Programs
USDA Preferred Purchase
USDA Preferred R/T Refinance
USDA Streamline Refinance
USDA Streamline-Assist Refinance
Ineligible Programs:
USDA Direct
Single Close Construction Loans
Credit
Minimum FICO: 600
All Borrowers must have a credit score.
Additional Requirements for Credit Scores <620
No frozen credit allowed. Credit must be available from all three bureaus.
At least one borrower whose income or assets are used for qualification must have at least two eligible tradelines to validate the borrower’s credit score. Eligible tradelines consist
of credit accounts with at least 12 months of repayment history reported on the credit report.
For refinance transactions:
o The existing loan must have closed 12 months prior to the request for Conditional Commitment.
o The mortgage must be current for the 180-day period prior to USDA’s receipt of a Conditional Commitment request.
o At the time of closing, at least (6) consecutive regularly scheduled monthly payments must have been made and applied on the existing loan. Refinances of loans on which
fewer than six (6) consecutive regularly scheduled monthly payments have been made are not eligible for financing.
For Streamline transactions: a 2055 exterior appraisal is required.
Streamline and Streamline-Assist
Credit report must be a tri-merged mortgage only report with scores.
Additional Borrowers may be added to the new GRH loan or existing Borrowers may be removed from the current loan. However, at least one of the original Borrowers must be an Applicant for the new refinance loan
Credit Exception
A USDA Adverse Credit Waiver Request or comments on the 1008 is required if any of the following apply:
Chapter 7 bankruptcy has been discharged less than 12 months.
Applicant has a foreclosure discharged or a repossession reported in the previous 36 months prior to loan application.
Applicant has a short sale closed 36 months prior to loan application.
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