USDA Rural Development Guaranteed Loan Program Checklist - Purchase

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					                                  USDA Rural Development
                         Guaranteed Loan Program Checklist - Purchase
USDA Forms
                   Reservation of Funds, Form 1980-86, signed by lender.
                   Request for Single Family Housing Loan Guarantee, Form 1980-21, signed by
          lender and applicant(s). Original must be submitted to USDA.
Other Required Documents
                    Applicant(s) signed Acknowledgement- that GRH approval is required and loan is subject to
                    availability of allocated funds (if funds not previously reserved).
                    Waiver Request of RD prescribed credit or ratio (if ratios exceed 29/41) criteria from
                    underwriter.
                    Transmittal Summary signed by underwriter. Include comments, requirements and
                    compensating factors.
                    Uniform Residential Loan Application, signed by applicant(s) and lender.
                    Verification of Alien Status (if applicable).
                    Homebuyer Education Certificate.
                    Sales Contract
                    Credit Report
                    CAIVRS all documentation. Place numbers of all borrowers on Item #13 of Form RD 1980-21.
                    Adverse Credit Explanation
                    Divorce Decree – Complete, fully executed copy (if applicable).
                    Mortgage/Rental Verification if not on credit report. (N/A if middle credit score exceeds 660
                    and co-borrower not below 620).
                    Verification of Employment for all adult household members. Alt Doc allowed.
                    W2s, most recent 30-day period pay stubs and Verbal VOEs.
                    Self Employed Income Analysis
                    Self Employed - two years signed income tax returns.
                    Self Employed – Current Profit and Loss/Balance Sheet.
                    Verification of Child Support (if applicable).
                    Verification of Deposit for all accounts.
                    Source of Funds/Gift Letter, if applicable.
                    Appraisal – original photos or good quality copies.
                    FEMA 81-93, Flood Certification (Required in initial submission to USDA).
          New Construction
                   Certification all required inspections were made by qualified individual.
                   Evidence of Termite Inspection/Treatment.
                   Certification - either one-year Builder’s Warranty obtained or approved 10 year warranty
                   purchased.
                   Health Authority approval of septic system and/or water well (if applicable).
                   Plan Certification, Form 1924-25. For new construction only-signed by authorized
          individual OR Form HUD-92541, “Builder’s Certification of Plans, Specifications and Site.”
          NOTE: It is not necessary to submit building plans and specification to USDA Rural Development.
Existing Homes
                    Certification that qualified inspector performed the required home inspection.
                    Certification that property meets the current requirements of HUD Handbook 4150.2.
                    Certification that all required repairs by the appraiser have been completed.

NOTE: This checklist is merely a guide to help ensure all required documents are provided to Rural Development
for the issuance of a Conditional Commitment. Additional documentation may be required by Rural Development in
order to issue the Loan Note Guarantee.




Guaranteed Loan Program Checklist - Purchase
09/08