15.3 CONTENTS OF LOAN APPLICATION PACKAGE (03/09/16)

Owned by Kacey Olson (Unlicensed)
Last updated: Nov 17, 2018
4 min read

© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook


Manually underwritten loans

Manually underwritten loans are those applications reviewed and approved by the underwriter or applications underwritten with the assistance of GUS that receive an underwriting recommendation of “Refer” or “Refer with Caution.”  For manually underwritten loans, the lender must submit a fully documented loan application package to Rural Development.  Although, manually underwritten application packages may be submitted by email, the preferred method of the Agency is electronic.  Lenders are expected to utilize the automated method of submitting origination requests to the Agency.  Use of the electronic method through the Agency’s automated underwriting system, GUS, streamlines the delivery, review and issuance of a Conditional Commitment.  A Technical Bulletin regarding “Streamline Issuance of Conditional Commitment – Lenders” is posted to the following resource site:    https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do.  Scroll to Loan Origination. Loans that are not delivered via the automated method must protect personally identifiable information when communicating electronically.   Form RD 3555-21 summarizes the details of the loan to be guaranteed and requires the lender to certify that all eligibility requirements have been met.  See Attachment 15-A for a checklist of items to be provided in the loan package submitted to the Agency.  The following information must be provided for the application to be considered complete.

  • All pages of the current version of Form RD 3555-21 signed and dated by the applicant(s) and the approved lender submitting the request, or their designated representative.  The form must be completed prior to signature by the applicant(s).  The lender is responsible for reviewing the contents of the form, acknowledgements and certifications with the applicant(s).  
  • A signed copy of the Uniform Residential Loan Application (URLA).   The loan amount must coincide with the loan request on Form RD 3555-21. If the applicant(s) is not a United States citizen, evidence the applicant(s) meets the qualified alien criteria set forth in Chapter 8 of this Handbook
  • The CAIVRS number indicated on Form RD 3555-21.
  • The lender’s confirmation they have checked GAO’s System for Award Management (SAM.gov) and have confirmed the applicant(s) and all parties participating in the Rural Development guarantee are not debarred from doing business with the Federal government.  Refer to Section 15.2 of this Chapter to identify all parties participating in the loan guarantee request.  Certification of this action is recorded on Form RD 3555-21.
  • Summary of the calculation of annual income, adjusted income (to qualify for the SFHGLP) and repayment income calculations.  Include documentation for all adult members of the household.  Documentation to include IRS 4506-T tax transcripts, verifications of employment and other income verification documentation such as asset documentation.  See chapter 9 of this Handbook for additional guidance.

(info)  USDA Announcement 12/21/2017: The Single Family Housing Guaranteed Loan Program will suspend the requirement of Internal Revenue Service (IRS) Form 4506-T for all adult household members until further notice. The suspension is effective December 21, 2017 and applies to all final GUS and manually underwritten loan submissions to USDA."

  • Credit report(s).  Include the credit report of a non-purchasing spouse if property is located in a community property state.  Include any non-traditional report and all credit supplements.
  • Verification of Rental.  Include documentation to support rental history in the previous 12 months prior to application, as applicable, for all manually underwritten loans.  See Chapter 10 of this Handbook, Section 10.13 for additional guidance on obtaining rent verification.
  • Uniform Residential Appraisal Report (URAR) of real estate property which includes Form 1004MC, Market Condition Addendum.
  • Purchase/sales agreement/contract.
  • Underwriting analysis.  This may include evidence the approved lender’s underwriter reviewed and approved the loan, documentation of a credit waiver granted by the underwriter (if applicable), or a request for repayment ratio waiver with documented compensating factors listed (if applicable).  Refer to Chapter 10 and 11of this Handbook for additional guidance.
  • FEMA Form 086-0-32.
  • If a buydown is involved, documentation in accordance with Chapter 11, Paragraph 11.5 of this Handbook.

 Automated Underwriting System - GUS “Accept”

Loans underwritten with the assistance of GUS receiving an underwriting recommendation of “Accept” may allow the lender to submit abbreviated documentation when compared to manually underwritten loans when requesting a Conditional Commitment for Single Family Housing Loan Guarantee.  The lender certifies upon “final” submission the loan has been reviewed, underwritten and the data entered into GUS is true, complete and accurate.  Lenders must review and satisfy preConditional Commitment conditions identified on the final GUS Underwriting and Findings Analysis Report prior to submitting the loan to the Agency.  Lenders who utilize GUS will be validating the findings provided with the underwriting recommendation in their permanent case file.  Unless a quality control message requires the lender to submit a full documentation file, the lender may submit the following completed documents to obtain a Conditional Commitment for Loan Guarantee:  

  • All pages of the current version of Form RD 3555-21 signed, and dated by the applicant(s) and lender, or lender’s representative.
  • Summary of the calculation of annual income, adjusted income (to qualify for the SFHGLP) and repayment income calculations.  
  • Include the credit report, of a non-purchasing spouse, if property is located in a community property state.
  • Appraisal of real estate property which includes Form 1004MC.
  • The final GUS Underwriting and Findings Analysis.  
  • FEMA Form 086-0-32.
  • If the applicant(s) is not a United States citizen, evidence the applicant(s) meets the qualified non-resident alien criteria set forth in Chapter 8 of this Handbook.
  • If a buydown is involved, documentation in accordance with Chapter 11, Paragraph 11.5 of this Handbook.

If a quality control message for a GUS “Accept” underwriting recommendation requires the lender to submit a full documentation file to Rural Development, the extent of the review by the Agency is to determine the data entered into GUS is true, complete and accurately represented.  Ratio waiver requests will not be required.