Why does the lender need the last 12 months of rental recipets in order for me to quilify for a USDA loan

More info needed to address your specific scenario, but in general.. When your file is run through the automated underwriting system (AUS), it will state whether or not you will need to prove rental history.. Also, because it's USDA.. your file is actually underwritten 3 times,, Once by the AUS, once by your lender and the again by USDA.. so it's possible one of 3 underwriting processes is requiring this history.. And your lender is correct, personal receipts are not acceptable since they can be fraudulently made very easily.. and this was a major area of loan fraud in the past years.. so the guidelines have changed, and personal receipts are no longer acceptable. That being said, if you have limited income, and limited credit, then not being able to prove rental history can be a deal breaker.. If you had paid your landlord with personal checks, then you can go to your bank and do a Payee history report, and you can get a copy of the last 12 checks.. or if you did an "bill pay" or ETF then it will show the last 12 payments to that particular payee (Ie.. your landlord).. If you paid your friend cash, then if you pulled out exactly the rent amount on or around the same time each month, then you could use your last 12 months' bank statements, and highlight your withdrawals... so long as you are pulling the same amount out each month at around the same time, then this could be sufficient/acceptable proof of rent payment.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

What state are you looking for a loan in?