Effective for USDA loan applications dated on or after August 5, 2024, Arc Home will align with the guidance provided by USDA in Advance Notice: Revisions to HB-1-3555, Chapter 11 for the topic below.

·         Ratio Analysis: Expanded guidelines to increase the maximum PITI ratio to 34%; clarified that debt ratio waivers are not permitted to increase the PITI ratio above 34% for purchase transactions; revised guidelines to include additional compensating factors which may be considered to support approval of a debt ratio waiver. Refer to USDA Handbook (HB-1-3555) Chapter 11.

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