Effective for USDA loan applications dated on or after May 6, 2024, Arc Home will align with the guidance provided by USDA in Advance Notice: GUS Changes and Revisions to HB-1-3555, Chapters 9, 10 and 16 for the topics below.

·         Income Analysis: Expanded to indicate acceptable alternative methods for verbal verification of employment prior to closing; revised the continuance requirements for Social Security benefits; updated the list of Federally Mandated Exclusions from Income (Attachment 9-D). Additionally, Attachment 9-A was modified regarding the repayment income for “unreimbursed employee or business expenses”, to clarify child care expense deductions, and add a new “foreign assets” topic. Refer to USDA Handbook (HB-1-3555) Chapter 9.

·         Credit Analysis: Added monthly subscription services, gym memberships, etc. to the list of eligible sources of non-traditional credit. Refer to USDA Handbook (HB-1-3555) Chapter 10.

·         Closing the Loan and Requesting the Guarantee: Updated the maximum insurance deductible to 5% of the total coverage for hazard insurance and $10,000 for flood insurance. Lender to ensure a high deductible selection is reasonable and will not cause undue hardship on the borrower(s). Refer to USDA Handbook (HB-1-3555) Chapter 16.

The full USDA Single Family Home Guaranteed Loan Program Handbook (HB-1-3555) is available HERE on the USDA website.