Chapter 11- Ratio Analysis Single Family Housing Guaranteed Loan Program

 The Single Family Housing Guaranteed Loan Program (SFHGLP) is pleased to announce revisions to technical HB-1-3555, Chapter 11.


11.2 B. The Total Debt Ratio:

  • Revolving accounts: “with no outstanding balance” are not required to be closed.
  • Mortgages: Rental Property - Eliminated language regarding omission of mortgage debt.   Guidance for entry of rental income in GUS is provided in the GUS Lender User Guide under 4.1.4.1.1, Retained Investment Properties.
  • Added: Debt management plans:
    • Include the monthly payment amount due from the counseling plan.
    • Refer to Chapter 10 for guidance on credit exception and documentation requirements.
  • Student Loans: Removed the phrase “the greater of” from Non-Fixed payment loans and added guidance regarding “when the payment is above zero” and “when the payment is zero”.

11.3 DEBT RATIO WAIVERS AND COMPENSATING FACTORS

A. Purchase Transactions: Debt ratio waivers

  • GUS Refer, Refer with Caution, and manually underwritten loans without GUS assistance:
    • Added: “The lender must document compensating factors to support a debt ratio waiver.”
    • Added: “all” of the following conditions are met to the first paragraph.
  • Debt Ratio Waiver Request and Agency Approval:
    • Added: “The issuance of the Conditional Commitment for a Loan Note Guarantee represents Agency approval of the ratio waiver.”

B. Refinance Transactions: Debt ratio waivers

  • Added a bullet:  GUS files that receive a GUS recommendation of Refer or Refer with Caution are not supported by GUS, require debt ratio waivers, and supporting documentation must be submitted to the Agency.
  • Added: “The issuance of the Conditional Commitment for a Loan Note Guarantee represents Agency approval of the ratio waiver”. 

11.7 OBLIGATIONS NOT INCLUDED IN DEBT-TO-INCOME RATIOS

  • Added: "unless a payment plan is in place" to the second bullet concerning Federal, state, and local taxes.
Location: 10602 Timberwood Cir #3, Louisville, KY 40223, USA

Popular posts from this blog

Kentucky USDA Mortgage Loan Requirements

2026 update: USDA Rural Housing (Section 502 Guaranteed) is still a zero-down option in many Kentucky counties. The two big “gatekeepers” remain property eligibility (must be in an eligible rural area) and household income limits (must be within USDA’s limit for the county and household size). Kentucky USDA Mortgage Loan Requirements Kentucky USDA Rural Housing (USDA Guaranteed) loans are designed to help buyers purchase a primary residence with 100% financing in eligible rural areas. If you want the short version: the home must be in an eligible area, your total household income must be under the USDA limit for that county and household size, and the file must underwrite clean through USDA/GUS (or be eligible for a manual underwrite). 1) Property eligibility: rural area requirement One of the biggest USDA requirements is that the property be located in a USDA-eligible area. In Kentucky, many areas outside the largest metro zones qualify, while ma...
Read more

Kentucky USDA Rural Housing Eligibility Map

Image
Kentucky USDA Rural Housing Eligibility Map – Check Your Property Address    If you're searching for a zero-down home loan option in Kentucky, the USDA Rural Housing Loan offers a powerful path to homeownership for eligible buyers. The first step is confirming whether a property is located in an eligible USDA-approved area. Use the official Kentucky USDA Eligibility Map below to check any address instantly. How to Check If a Kentucky Property Is USDA Eligible Visit the Kentucky USDA Eligibility Map and enter the property address. Explore your desired location in Kentucky or manually enter the street address. Determine if the property falls inside a USDA Rural Housing eligible zone. Kentucky USDA Property Eligibility Map – Enter Address Below: 👇👇👇👇 More USDA & First-Time Homebuyer Resources in Kentucky Kentucky USDA Income Limits – 2026 Update Mortgage Credit Score...
Read more

Kentucky USDA Rural Housing Map for 2026

Image
  Kentucky USDA Rural Housing Map Find homes in Kentucky that are eligible for USDA Rural Housing loans using this interactive map. Enter the property address in the search bar to check eligibility, or explore eligible areas on the map below. Open Full USDA Eligibility Map enter address below: 👇👇👇👇 How to Use This Map: Enter the property address in the search bar to check if it's eligible for USDA Rural Housing loans. Zoom in and out to explore eligible rural areas across Kentucky. Select "Single Family Housing" from the options to refine your search. USDA loans are an excellent option for homebuyers looking for 100% financing in eligible rural areas of Kentucky. If you need help navigating USDA loan programs or eligibility requirements, contact us for expert guidance. Complete Kentucky USDA County Directory All Counties (120) Eligible (92) Partial (23) Ineligible (5) Adair County...
Read more