Did you know this about USDA loan underwriting guidelines?

How can USDA loan underwriting guidelines be fully maximized?

Whether you are a prospective homebuyer trying to qualify for a USDA loan or a Realtor working with USDA clients, accuracy and experience are both critical toward helping a buyer make the most of their USDA loan qualifying.

With that being said, it is critical to work with a lender who understands USDA loan underwriting guidelines from front to back.  This short video tip will provide the necessary details to help give you the advantage when qualifying for a USDA home loan.

And don’t forget to download our USDA Blueprint for success with the link below. This is a great resource for the real estate community and is designed to walk you through the USDA loan process step-by step.

Is your lender working with the USDA “GUS” Underwriting System?  If not, the full potential which can be found within the USDA loan underwriting guidelines may not be reached.

The Guaranteed Underwriting System also known as “GUS”, was created by USDA Rural Development to serve as their automated underwriting system (AUS). The system’s purpose is to help lenders process Rural Development Guaranteed loan applications.

USDA Approved lenders can utilize GUS to submit:

• An application for eligibility determination
• Pre-qualification, or…
• Final submissions to Rural Development

The Guaranteed Underwriting System is a rules-based decision engine and a modified version of the FHA TOTAL scorecard.

With these combined functionalities GUS can indicate recommended levels of underwriting and documentation to determine a USDA loan’s eligibility for the Single Family Housing Guaranteed Loan Program (SFHGLP).

After the loan data is entered, GUS then delivers a recommendation based on a risk evaluation analysis, which can be as follows: Accept, Refer, or Refer with Caution.

Important USDA loan eligibility factors that GUS will help to determine are:

1. Income
2. Credit, or
3. Property Location

Additionally, accepted qualifying ratios within the GUS Underwriting System do not require a USDA Debt Ratio Waiver and assist in determining a borrower’s qualifying sales price and maximum USDA loan size.

Please note, that as with any Automated underwriting system, the findings are only as good as the data entered. This underscores the importance of accuracy at this stage of the process, because although GUS is not a final underwriting stamp of approval, it does provide a road map for eligibility and  depending on the response received, additional USDA loan underwriting guidelines will be followed by the lender.

Metroplex Mortgage Services is a USDA approved lender and we utilize the GUS system to help maximize efficiency, accuracy, and the benefits provided within USDA loan underwriting guidelines for potential homebuyers.

We realize that qualifying for a USDA loan may seem overwhelming, but when you are paired with a lender who can maximize the potential of this unique program, it is a match that can help open the door to home ownership.

My team is ready to help with your next pre qualification, or if you happen to need an expert second opinion.