Kentucky USDA Underwriting Guideline Mortgage Changes for Income, Credit, Work History and Assets

Rural Development Kentucky Underwriting Guideline Mortgage Changes for Income, Credit, Work History and Assets

Chapter 9 – Income Analysis

• Paragraph 9.3 is being revised as follows:
  o To clarify that lenders must verify the income of each adult household member for the previous 2
  years, which is consistent with the requirements in 7 CFR 3555.
  o To clarify under “full income documentation”, the lender must obtain W-2s or IRS Wage and Income
  transcripts, in addition to paystubs.
  o To change the term “streamlined documentation” to “alternative income documentation” to remove
  confusion with the streamlined refinance product.
  o To clarify under “self-employed income documentation” that if ownership interest is less than
  25%, neither the “Business Owner” or “Self-Employed” options should be selected in GUS.
  o To clarify the Verbal Verification of Employment must be obtained within 10 business days of loan
  closing and confirmation a self-employment business remains operational must be…