USDA Underwriting Deep Dive
USDA underwriting has several traps that are easy to miss—especially the difference between household eligibility income and repayment income, plus GUS and manual-underwriting rules.
Income & employment
Stable repayment income, annual income and adjusted household income.
Self-employment
Business income, tax returns and sustainability.
Variable & other income
Overtime, bonus, commission, seasonal and other non-base sources.
Debts & student loans
Recurring obligations and student-loan treatment.
29/41 ratios
PITI and total-debt standards, plus flexibility with valid compensating factors.
Assets & reserves
Funds to close, post-closing reserves and acceptable asset treatment.
Credit & manual underwriting
GUS Accept versus Refer/Refer with Caution and credit exceptions.
Collections & judgments
Medical collections, non-medical collections and liability treatment.
Non-borrowing household income
Why program eligibility can be affected by income from someone not on the loan.
Property & appraisal
Rural eligibility, utilities, access, marketability and appraisal standards.
Official USDA baseline
USDA Chapter 9 — Income · USDA Chapter 10 — Credit · USDA Chapter 11 — Ratios
Educational summary. Current USDA handbook, GUS findings and approved-lender requirements control the actual file.