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The lender must follow all SFHGLP guidelines. Failure to comply could result in reduction or denial of a loss claim or revocation of approval to participate in the program. These program guidelines include:
x Approved Forms. The lender must use forms approved by the FHA, Fannie
(03-09-16) SPECIAL PN 4-4 Revised (08-05-25) PN 649 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts
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Mae, Freddie Mac, or Farm Credit System (FCS) lenders when forms are not provided by the Agency.
x Eligibility Requirements. The lender is responsible for ensuring that the loan
applicant and property meet all SFHGLP eligibility requirements.
x Underwriting Requirements. The Agency approved lender is responsible for
underwriting the loan even if an agent originates the loan.
x Servicing Requirements. The lender must comply with the loan servicing
requirements in this Handbook. The approved lender is responsible for proper servicing even if it has sub-contracted the servicing.
x Counterparty Management and Third-party Providers. Lenders are
responsible for managing all counterparty and third-party providers that may assist to the processing, underwriting, and servicing of SFHGLP loans.
x Monitoring Requirements. The lender must submit all required reports and
cooperate with all Agency monitoring efforts and information requests.