Collections and Rural Housing USDA Mortgage Loan Approvals.

Underwriting must follow (GUS) Guaranteed Underwriting System Automated Findings  to determine if a collection account must be paid. Typically GUS will require the following:
  • If the credit report show a cumulative balance of $2,000 or more for collection accounts:
  1. The debt(s) must be paid in full prior to or at closing, or
  2. Payment arrangements must be made with the creditor and the monthly payment included in the DTI, or
  3. A monthly payment of 5% of the outstanding balances of each collection must be included in the borrower’s DTI.
  • While all collections required by GUS must be paid, RHS grants the lender/underwriter the authority to require any collection (whether GUS recommended or not) to be paid prior to or at close.

Joel Lobb (NMLS#57916)
Senior  Loan Officer

American Mortgage Solutions, Inc.
Company ID #1364 MB73346

Text/call 502-905-3708

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.