The U.S. Department of Agriculture (“USDA” or “Agency”) has announced updates to Chapter 8, Applicant Characteristics; Chapter 14, Funding; Appendix 3, Review and Appeals; and Appendix 5, Income Limits of the Single Family Housing Guaranteed Loan Program Technical Handbook (“HB-1-3555”). The updates became effective on October 12, 2023, as published in a Procedure Notice (PN).
The notable updates in each Section are indicated below as excerpted from the USDA Announcement:
Chapter 8 – Applicant Characteristics
- Paragraph 8.2B was revised to clarify if an applicant owns a business, close examination must be made to verify if assets are co-mingled between business and personal accounts. If these two accounts are co-mingled, the accounts must be included in the test for obtaining conventional credit.
- Paragraph 8.2E was revised to clarify that applicants that have been excluded from a non-housing federal program continue to be eligible to participate in the SFHGLP, unless the individual becomes suspended or debarred pursuant to 3 CFR Part 180 and 417. Applicants that are excluded from federal housing programs or excluded from all federal programs are ineligible to participate in the SFHGLP. In addition, this paragraph was revised to identify the list of parties to be reviewed for debarment by the lender, as well as clarified that lenders must use due diligence in determining if the applicants are eligible for the SFHGLP.
- Paragraph 8.2F was revised to update the expiration date of the Non-U.S. Citizen Wavier to May 2, 2025, as well as to update guidance on the SAVE verification process in GUS.
Chapter 14 – Funding
- Several paragraphs were updated to reflect the current (internal) process for allocating and distributing funding for the SFHGLP.
Appendix 3 – Review and Appeals
- Appendix was revised to provide an updated link to the National Appeals Division (NAD) website, and to make minor edits and formatting changes.
Appendix 5 – Income Limits
- Appendix was revised to update the income eligibility website screens to accurately reflect the current view.
DocMagic will continue to provide USDA updates as they become available. If you have additional questions about this topic, please contact DocMagic’s Compliance Department.