Effective with all conditional commitments issued by USDA on or after March 9, 2016, PennyMac has aligned with the updates to the Rural Housing Technical Handbook HB-1-3555. Below are highlights of the changes. PennyMac encourages all lenders to read the Technical Handbook for complete details on all updates.
- All borrowers may now finance up to 2 discount points on a refinance transaction.
- The number of tradelines required to validate the credit score is reduced from three to two.
- Evidence of a road maintenance agreement is not required.
- Specific guidance provided for credit and income requirements based upon the GUS accept or manual underwrite.
- Additional guidance on when a GUS accept must be downgraded to a manual underwrite included.
Please contact your Sales Representative with any questions.