RHS issued a Procedure Notice (Notice) announcing revisions to chapter 11 of the SFH Guaranteed Loan Program Technical Handbook (HB-1-3555). The revisions to chapter 11:
- Updated the PITI Ratio guidelines to reflect 29%;
- Clarified that if an applicant pays off a debt to qualify, the lender must document the source of funds used;
- Clarified that to exclude a debt paid by another party, that party must be legally obligated to pay the debt;
- Clarified RHS’ guidelines on contingent liabilities; and
- Clarified that debt ratio waivers and compensating factors are permissible if the requirements cited are met.
Revisions related to PITI Ratio went into effect November 4, 2025. All other revisions went into effect November 25, 2025.
Click to view the RHS PN 651: https://www.tenaco.com/wp-content/uploads/2025/12/RHS-PN-651-11-25-25.pdf
