© 2018 RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook
An applicant’s PITI ratio may exceed 29 percent and the total debt ratio may exceed 41 percent if the lender determines that strong meaningful compensating factors demonstrate that the household has higher repayment ability.
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The Agency will consider all requests for exception and weigh the proposal based on any additional layers of risk. Written approval by the Agency is represented if a Conditional Commitment for Loan Note Guarantee is issued by Rural Development in response to the lender’s request. Lenders who utilize the Agency’s automated underwriting system and receive an underwriting recommendation of “Accept” will not be required to document the need for a repayment ratio waiver.Additional Resource: https://www.rd.usda.gov/files/3550-1chapter11.pdf#page=2