source:
  type: regulation
  id: usda-7cfr-3555.107
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107 — Application for and
    issuance of the loan guarantee
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.107 Application for
    and issuance of the loan guarantee. Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.107-full
  canonical_id: usda-7cfr-3555.107-full
  section: 7 CFR §3555.107
  description: 'Application for and issuance of the loan guarantee: Link to an amendment published at 91 FR 13217,
    Mar. 19, 2026.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: Link to an amendment published at 91 FR 13217, Mar. 19, 2026.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 (whole section) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-a
  canonical_id: usda-7cfr-3555.107-a
  section: 7 CFR §3555.107(a)
  description: 'Application for and issuance of the loan guarantee — (a): (a) Processing of applications. Except
    as provided in this section, Rural Development will process loan guarantee applications in the order that completed
    applications are received. Application forms and instruction procedures are available at any Rural Development
    office. (1) If analysis of the uti…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (a) Processing of applications. Except as provided in this section, Rural Development will
      process loan guarantee applications in the order that completed applications are received. Application forms
      and instruction procedures are available at any Rural Development office. (1) If analysis of the utilization
      of funds during the fiscal year indicates that, at the rate of current utilization, funds may not be sufficient
      to sustain that level of activity for the remainder of the fiscal year, the Agency may determine a shortage
      of funds exists. (2) When there is a shortage of funds, the Agency will limit SFHGLP loans to first-time homebuyers
      or veterans. First-time homebuyers and veterans will be served in the order their applications are received.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-b
  canonical_id: usda-7cfr-3555.107-b
  section: 7 CFR §3555.107(b)
  description: 'Application for and issuance of the loan guarantee — (b): (b) Automated underwriting. Approved lenders
    are required to process SFHGLP loans using Rural Development''s automated systems. The automated underwriting
    system is a tool to help evaluate credit risk but does not substitute or replace the careful judgment of experienced
    underwriters and shall not be…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (b) Automated underwriting. Approved lenders are required to process SFHGLP loans using Rural
      Development's automated systems. The automated underwriting system is a tool to help evaluate credit risk
      but does not substitute or replace the careful judgment of experienced underwriters and shall not be the exclusive
      determination on extending credit. The lender must apply for and receive approval from Rural Development to
      utilize the automated underwriting system. Rural Development reserves the right to terminate the lender's
      use of the automated underwriting system. (1) Lenders are responsible for ensuring all data is true and accurately
      represented in the automated underwriting system. (2) Full documentation and verification, in accordance with
      Subparts C, D and E of this part, will be retained in the lender's permanent loan file and must confirm the
      applicant's eligibility, creditworthiness, repayment ability, eligible loan purpose, sufficient collateral,
      and all other regulatory requirements. (3) The use of Rural Development's automated underwriting system subjects
      the lender to indemnification requirements in accordance with &#xA7; 3555.108. (4) If a loan receives an &#x201C;Accept&#x201D;
      underwriting recommendation, the lender is generally permitted to submit minimal documentation including the
      appraisal, flood hazard determination and fully executed request for guarantee, unless the lender is instructed
      to provide other documentation. (5) Loan requests that receive a &#x201C;Refer&#x201D; or &#x201C;Refer with
      Caution&#x201D; underwriting recommendation require further review and manual underwriting by the lender to
      determine whether the applicant meets SFHGLP eligibility requirements. (6) Lenders will validate findings
      based on the output report of the automated underwriting system. (7) The final submission of the last scoring
      event must be retained in the lender's permanent loan file.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-c
  canonical_id: usda-7cfr-3555.107-c
  section: 7 CFR §3555.107(c)
  description: 'Application for and issuance of the loan guarantee — (c): (c) Manual underwriting. Loans requiring
    manual underwriting (manually underwritten loans) are described in paragraphs (c)(1) and (2) of this section.
    For manually underwritten loans, full documentation, and verification in accordance with subparts C, D, and
    E of this part will be submitted to Rural…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(c) Manual underwriting. Loans requiring manual underwriting (manually underwritten loans)
      are described in paragraphs (c)(1) and (2) of this section. For manually underwritten loans, full documentation,
      and verification in accordance with subparts C, D, and E of this part will be submitted to Rural Development
      when requesting a guarantee and maintained in the lender''s file. The documentation will confirm the applicant''s
      eligibility, creditworthiness, repayment ability, eligible loan purpose, adequate collateral, and satisfaction
      of other regulatory requirements. The following types of loans require manual underwriting: (1) Loans downgraded
      by Rural Development''s automated system. These loans are manually underwritten by the lender and submitted
      utilizing Rural Development''s automated system. (2) Loans that are not supported by Rural Development''s
      automated systems. These loans are manually underwritten by the lender and submitted by secure email or other
      electronic means approved by the Agency.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (c) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-d
  canonical_id: usda-7cfr-3555.107-d
  section: 7 CFR §3555.107(d)
  description: 'Application for and issuance of the loan guarantee — (d): (d) Appraisals. The lender must supply
    a current appraisal report of the property for which the guarantee is requested. (1) Appraisals must be conducted
    in accordance with the Uniform Standards of Professional Appraisal Practices. (2) Approved lenders are responsible
    for selecting a qualified apprai…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (d) Appraisals. The lender must supply a current appraisal report of the property for which
      the guarantee is requested. (1) Appraisals must be conducted in accordance with the Uniform Standards of Professional
      Appraisal Practices. (2) Approved lenders are responsible for selecting a qualified appraiser and the integrity,
      accuracy and thoroughness of the appraisals used to support their loan guarantee request. (3) The appraiser
      must report all readily observable property deficiencies, potential environmental hazards, as well as any
      adverse conditions discovered performing the research involved in completing the appraisal. (4) The Agency
      will conduct reviews of the appraisals prior to issuance of the conditional commitment, and other reviews
      may be conducted to ensure overall quality of appraisals. The lender is responsible for correcting any appraisal
      deficiencies reported by the Agency. (5) The Agency may determine an appraiser ineligible to conduct appraisals
      for SFHGLP due to the failure to comply with applicable requirements and regulations. Appraisals from the
      ineligible appraisers will not be accepted. (6) Use of an alternative approach to value for appraisals performed
      in remote rural areas, on tribal lands, or where a lack of market activity exists may be accepted at the Agency's
      discretion. (7) The validity period of an appraisal will be 120 days, unless otherwise provided by the Agency.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (d) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-e
  canonical_id: usda-7cfr-3555.107-e
  section: 7 CFR §3555.107(e)
  description: 'Application for and issuance of the loan guarantee — (e): (e) Environmental requirements. The lender
    and Rural Development will meet all environmental responsibilities in accordance with &#xA7; 3555.5.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (e) Environmental requirements. The lender and Rural Development will meet all environmental
      responsibilities in accordance with &#xA7; 3555.5.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (e) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-f
  canonical_id: usda-7cfr-3555.107-f
  section: 7 CFR §3555.107(f)
  description: 'Application for and issuance of the loan guarantee — (f): (f) Issuance of a conditional commitment.
    The lender must demonstrate that all the general loan, applicant, and site eligibility requirements of this
    part are met before Rural Development will issue a conditional commitment. The lender, however, may obtain any
    required property inspection reports, s…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (f) Issuance of a conditional commitment. The lender must demonstrate that all the general
      loan, applicant, and site eligibility requirements of this part are met before Rural Development will issue
      a conditional commitment. The lender, however, may obtain any required property inspection reports, such as
      a well test or construction phase inspections, if applicable and not needed for environmental compliance,
      after the issuance of the conditional commitment, but prior to loan closing. (1) The conditional commitment
      will expire in 90 days from issuance, unless new construction is involved. (2) The expiration of a conditional
      commitment may coincide with projected completion of new construction. (3) An extension may be granted if
      the loan cannot be closed due to circumstances beyond the lender's control. (4) Lenders may accept or decline
      the conditional commitment, or submit requests for changes with adequate support and documentation to be reviewed
      by the Agency.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (f) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-g
  canonical_id: usda-7cfr-3555.107-g
  section: 7 CFR §3555.107(g)
  description: 'Application for and issuance of the loan guarantee — (g): (g) Loan guarantee fee. The lender must
    pay a nonrefundable up-front guarantee fee, the cost of which may be passed on to the borrower. The up-front
    guarantee fee will not exceed 3.5 percent of the principal obligation. The current guarantee fee is available
    at any Rural Development office and may c…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(g) Loan guarantee fee. The lender must pay a nonrefundable up-front guarantee fee, the cost
      of which may be passed on to the borrower. The up-front guarantee fee will not exceed 3.5 percent of the principal
      obligation. The current guarantee fee is available at any Rural Development office and may change periodically.
      Notice of a change in fee will be published as authorized in Exhibit K of subpart A of part 1810 of this chapter
      (RD Instruction 440.1, available in any Rural Development office) or online at: http://www.rurdev.usda.gov/rd_instructions.html.
      Once the guarantee has been issued, the fee will not be refunded.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (g) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-h
  canonical_id: usda-7cfr-3555.107-h
  section: 7 CFR §3555.107(h)
  description: 'Application for and issuance of the loan guarantee — (h): (h) Annual fee. The Agency may impose
    an annual fee of the lender not to exceed 0.5 percent of the average annual scheduled unpaid principal balance
    of the loan for the life of the loan to allow the Agency to reduce the up-front guarantee in &#xA7; 3555.107(g).
    The annual fee will be applicable to p…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (h) Annual fee. The Agency may impose an annual fee of the lender not to exceed 0.5 percent
      of the average annual scheduled unpaid principal balance of the loan for the life of the loan to allow the
      Agency to reduce the up-front guarantee in &#xA7; 3555.107(g). The annual fee will be applicable to purchase
      and refinance loan transactions. The annual fee may be passed on to the borrower by the lender. The Agency
      may assess a late charge to the lender if the annual fee is not paid by the due date, and the late charge
      may not be passed on to the borrower. Further administrative guidance is provided in the handbook.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (h) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-i
  canonical_id: usda-7cfr-3555.107-i
  section: 7 CFR §3555.107(i)
  description: 'Application for and issuance of the loan guarantee — (i): (i) Proper closing and requesting the
    loan note guarantee. The lender must ensure that any loan to be guaranteed is properly closed using documents
    acceptable to Rural Development. (1) Within 30 days of loan closing, the lender must request issuance of a loan
    guarantee. (2) The lender will certify t…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(i) Proper closing and requesting the loan note guarantee. The lender must ensure that any
      loan to be guaranteed is properly closed using documents acceptable to Rural Development. (1) Within 30 days
      of loan closing, the lender must request issuance of a loan guarantee. (2) The lender will certify the loan
      was closed in accordance with the conditional commitment and that no major changes have taken place since
      issuance of a commitment, except any changes specifically approved by the Agency. (3) The lender will maintain
      evidence of hazard insurance and, if applicable, flood insurance. (4) For all loan submissions, evidence of
      documentation supporting the properly closed loan will be submitted using Rural Development''s automated systems.
      (5) Lenders will submit full documentation supporting a closed loan or evidence of self-certification status,
      as described in this section. Self-certified lenders must still submit the settlement statement and promissory
      note. Lenders must obtain written authorization from the Agency prior to submitting evidence of self-certification
      in lieu of full documentation. Authorization for self-certification may be granted by the Agency if:'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-i
  canonical_id: usda-7cfr-3555.107-i
  section: 7 CFR §3555.107(i)
  description: 'Application for and issuance of the loan guarantee — (i): (i) The lender has an active lender agreement.
    (ii) The lender is actively engaged in originating SFHGLP loans and has closed a minimum of 10 loans in the
    past 12 months. (iii) The lender has successfully submitted 10 consecutive loan closing to the Agency that were
    in compliance with loan closing r…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (i) The lender has an active lender agreement. (ii) The lender is actively engaged in originating
      SFHGLP loans and has closed a minimum of 10 loans in the past 12 months. (iii) The lender has successfully
      submitted 10 consecutive loan closing to the Agency that were in compliance with loan closing requirements
      and procedures. (iv) The lender agrees to retain evidence of confirmed closing conditions in accordance with
      the issued conditional commitment in the lender's permanent loan file.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (i) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.107-j
  canonical_id: usda-7cfr-3555.107-j
  section: 7 CFR §3555.107(j)
  description: 'Application for and issuance of the loan guarantee — (j): (j) Issuance of the guarantee. The loan
    guarantee does not take effect until: (1) The lender transmits the required up-front guarantee fee, the lender
    certification form provided by Rural Development, and loan closing documents to Rural Development; (2) The lender
    meets all other conditions set out …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.107
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(j) Issuance of the guarantee. The loan guarantee does not take effect until: (1) The lender
      transmits the required up-front guarantee fee, the lender certification form provided by Rural Development,
      and loan closing documents to Rural Development; (2) The lender meets all other conditions set out in the
      conditional commitment; (3) The loan is current at the time the lender requests the loan guarantee; (4) Any
      construction or rehabilitation, is complete except for development described in &#xA7;&#xA7; 3555.101(c) and
      3555.202(c); and (5) Rural Development issues the loan guarantee document. [78 FR 73941, Dec. 9, 2013, as
      amended at 81 FR 6429, Feb. 8, 2016; 87 FR 6776, Feb. 7, 2022]'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.107 subsection (j) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
