FORM RD 2006-46 (Rev. 01-98)

U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.

RURAL DEVELOPMENT WSAL PN 609

Washington, D.C 20250 DATE

April 1, 2024 

PROCEDURE NOTICE

RD MANUAL CHANGES

INSERT RD INS 440.1 INTEREST RATES, AMORTIZATION, 

(WSAL) GUARANTEE FEE, ANNUAL CHARGE, AND 

FIXED PERIOD. This Instruction is 

partially revised as follows:

Exhibit B is partially revised to update the Treasury Judgement rate and the 

effective date of April 1, 2024.

INSERT

Exhibit B revised 04-01-24. 

RD HANDBOOK CHANGES

INSERT RD HB-1-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND 

(WSAL) GRANTS FIELD OFFICE HANDBOOK. This 

Handbook is partially revised. The specific 

revisions are outlined below.

Appendix 4: 

Appendix 4 is revised to include the March 1, 2024, interest rate for the AboveModerate Single Family Housing non-program loans. 

REMOVE INSERT

Appendix 4 dated 03-02-22: Appendix 4 dated 03-02-22:

 Pages 3 & 4. Pages 3 & 4 revised 04-01-24. 

RD HANDBOOK CHANGES

INSERT RD HB-1-3555 SINGLE FAMILY HOUSING GUARANTEED LOANS 

(WSAL) PROGRAM TECHNICAL HANDBOOK. Chapter 12 

is revised to streamline and/or clarify 

program requirements. The specific revisions are outlined below: 

Chapter 8: 

• Reference to "SAVE" has been removed throughout the chapter. 

• Paragraph 8.2 -F Having Acceptable Citizenship or Immigration Status.

• Replaced the word "should" with "will" to clarify the lender's responsibility 

to obtain the non-US citizen identification. 

• Added verbiage clarifying lender responsibilities. Removed a repetitive 

section.

(CON.)

READ PROCEDURE - DISCUSS IN STAFF CONFERENCE - KEEP PROCEDURE MANUAL UP TO DATE
Page 2 ISSUED: PN 609

April 1, 2024

RD HANDBOOK CHANGES

INSERT RD HB-1-3555 (Con.)

(WSAL)

Chapter 12: 

Revisions were made to align with recent procedural, environmental, and appraisal 

related updates from industry stakeholders. The proposed changes update the 

requirements for appraisals, environmental considerations, and site 

requirements. Additionally, updates were made to reflect a more comprehensive 

overview of the Single Close Construction Project Review resource, while also 

updating links and making minor grammatical and formatting edits. 

Paragraph 12.3 – Rural Area Designation 

• Updated guidance on Rural Area Designations and census information to align 

with updates to Section 520 of the Housing Act of 1949. 

 

 

 

 

Paragraph 12.4 – Site Requirements 

• Accessory Dwelling Unit-Provided additional clarification on the physical 

design features that may be acceptable for ADU’s when supporting household 

members. 

• Income Producing Land- Provided guidance that acknowledges the eligibility 

of small income producing features on an otherwise residential property and 

clarified lender responsibility for reporting and calculating any income 

generated in accordance with existing guidance in Chapter 9 of the 

Handbook. 

Paragraph 12.5 – Residential Appraisal Reports 

• Updated links for Appraisal Subcommittee and Uniform Appraisal Dataset web 

pages. 

• Photographs-Specified what type of photographs the appraiser must capture 

when documenting basements. 

• Photographs- Updated attic and crawlspace requirements per recent guidance 

from HUD 4000.1 

• Added requirement for manufactured homes to have a photograph of the HUD 

Data Plate and the HUD Certification Label(s) 

• Updated the cited USPAP guidance (Advisory Opinion 3) when documenting 

appraisal updates. 

Paragraph 12.6 – Water and Wastewater Disposal Systems 

• Updated the age of the water analysis report to 180 days to align with HUD 

4000.1 guidance. 

Paragraph 12.9 – Existing and New Dwellings 

• Existing Dwellings- Revised section to clearly indicate the content as 

requirements the lender must follow when applicable. 

• Existing Dwellings- Removed “The Agency may approve dwellings with 

inground swimming pools” from the lender requirements section. 

(CON.)
Page 3 ISSUED: PN 609

April 1, 2024

RD HANDBOOK CHANGES

INSERT RD HB-1-3555 (Con.)

(WSAL)

Chapter 12: 

• New Dwellings- Revised introductory paragraph addressing construction 

requirements to include a brief definition of what is deemed to be 

acceptable to the Agency when referring to a one-year warranty. 

• New Dwellings- Separated the new construction guidance and documentation 

charts for stick built and manufactured homes. New Dwellings- Added HUD 

Data Plate confirmation as an option for lender to prove thermal standards 

for Manufactured Homes. 

• New Dwellings- Added the 1-year builder warranty requirement when paired 

with 3 construction inspections back into the new construction chart to 

correct a discrepancy that previously removed in error. 

• New Dwellings- Clarified that a final inspection appraisal (1004D) may be 

substituted in lieu of 3 construction inspections to alternatively meet the 

construction inspection requirement if the lender has determined the 

appraiser to be a qualified individual to make such analysis. 

• New Dwellings- Added the 2/10-year builder warranty as acceptable 

documentation for the warranty requirement. 

• New and Existing Dwellings- Clarified that pest and termite inspections may 

be required per state law or investor requirements for existing and new 

construction homes but are not required to be submitted to the Agency for 

review. The lender is responsible for keeping such records in their 

permanent loan file when applicable. 

 

 

Paragraph 12.10 – Hazard Identification 

• Clarified that lenders are responsible for ensuring the requirements for 

private flood policies on existing dwellings continue to be met throughout 

the life of the loan. 

• Updated the National Flood Insurance Program Elevation Certificate and 

Standard Flood Hazard Determination form number references to align with 

current FEMA standards. 

• Removed flood deductible monetary threshold guidance, as it is already 

covered in Chapter 16. 

Paragraph 12.12 – Single-Close Features 

• Added guidance to include a renter scenario when determining if current 

living expenses may be excluded during the single close underwriting 

process. 

(CON.)
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April 1, 2024

RD HANDBOOK CHANGES

INSERT RD HB-1-3555 (Con.)

(WSAL)

Attachment 12-C – Project Review 

• Revised this document to include highlighted guidance on additional parts 

of the single close process, clarify that use is optional, and provide 

paragraph reference points for redirecting the lender to the appropriate 

Chapter paragraph for additional details. 

Chapter 15: 

The following updates were made to Chapter 15, Attachment 15-A, the FEMA 

Standard Flood Hazard Determination Form name was updated and the request for 

evidence of qualified alien verification to be uploaded upon submission to the 

Agency was removed, as well as minor grammatical and formatting edits.

• Updated FEMA Standard Flood Hazard Determination Form from (formerly 

086-0-32) to FF-206-FY-21-116. 

• Removed the requests for evidence of qualified alien verification at time 

of submission from Attachment 15-A. Lender’s will be responsible for 

obtaining non-U.S. Citizenship verification. Evidence should be maintained 

in the lender’s permanent file per the removal of SAVE from GUS.

INSERT

Table of Contents revised; 

Chapter 8 revised;. 

Chapter 12 revised; and

Chapter 15 revised 04-01-24.

 FORM

RUS Form 793 REQUEST FOR RELEASE OF LIEN AND/OR APPROVAL 

OF SALE. This Form is revised as follows:

• Item 14(b) was updated to replace the Rural Electrification Administration 

to the Rural Utilities Service and to change the process of contacting USDA 

to an email for making payment arrangements versus mailing a check; and 

• The Paperwork Reduction Act statement at the bottom of the page was updated 

to the most current version approved by OMB.

oOo