AC-013 Important USDA Guideline Updates
NOTICE TO ALL CUSTOMERS
Important USDA Credit Guideline Updates
FLCBank is notifying customers of the upcoming updates being made by USDA effective August 5, 2024 to the Single-Family Housing Guaranteed Loan Program Handbook 3555-1announced via Advance Notice June 25, 2024
Debt-to-Income Ratio Analysis
- Increased housing ratio from 29% to 34% on GUS Refer or Manual Downgraded loans.
- Added additional compensating factors to consider approval of a DTI ratio waiver.
- Added additional guidance in order for lenders to exclude business debt(s) reported on the borrower’s personal credit report when all of the following conditions are documented:
- Business debt reported on the personal credit report is paid through a business account.
- Acceptable evidence is provided with cancelled checks or bank statements from the business account for the previous 12 months documenting the debt is paid by the business.
- Payments made by the business must be included in the cash flow analysis and/or business profit and loss statement.
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