Kentucky USDA Guaranteed Rural Housing Mortgage Guidelines

Posted on February 19, 2012 by

 

502-905-3708-Free Same Day Loan Approvals–

Kentucky Mortgage USDA Loan Requirements

What are the Kentucky USDA Mortgage Loan Requirements?
To decide if you qualify for an USDA Mortgage Loan, we will look at:

  • Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.
  • Your credit history (this is important, but USDA’s credit standards are flexible). A FICO score of 620 or above is required for all loans
  • Your overall pattern rather than to individual problems you may have had.

To be eligible for an Kentucky USDA Mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at below Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

Can I get an USDA Mortgage Loan after bankruptcy?
Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentuck USDA Loan application

What are the USDA Down Payment Requirements? 
USDA Mortgages have no down payment requirement. Other loan programs don’t allow this.

What types of property are eligible?
While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

What is the maximum amount that I can borrow?
The maximum amount for an Kentucky USDA Mortgage Loans are determined by:

Maximum loan amount: The is no set maximum loan amount allowed for an USDA Mortgage. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Mortgage amount will be 100% of the appraised value of the home.

What kinds of loans does USDA offer?

 

Fixed rate loans - All Rural Housing and USDA loans are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

What is Considered a Rural Area by the USDA?
Rural areas include open country and places with population of 10,000 or less and—under certain conditions—towns and cities. There is an automated rural area eligibility calculator at:http://eligibility.sc.egov.usda.gov.

Kentucky USDA Loans

What are USDA Home Loans?
USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison,

What Types of Loans does USDA offer in Kentucky?
Currently, there are two kinds of USDA Homeo Loans available in Kentucky for single family households:

. USDA Guaranteed Rural Housing Loans
USDA Guaranteed Kentucky USDA Mortgage are the most common type of USDA loanin Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Kentucky?
To be eligible for A USDA Kentucky USDA Mortgage Loans | Rural Housing Ky Loans in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Kentucky USDA Mortgage Loans | Rural Housing Ky Loans approval . You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?
The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Kentucky USDA Mortgage Loans | Rural Housing Ky Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Kentucky USDA Mortgageamount is 102% of the appraised value of the home (100% plus the 2% USDA Kentucky USDA Mortgage RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?
USDA Kentucky USDA Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?
While USDA mortgage guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.
Additional offers from other lenders.

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA

Kentucky USDA Loan Adjusted Maximum Income Limits by County\\\\\\\\\

Kentucky USDA Mortgage Loans | Rural Housing Ky Loans
Updated 05/01/2009

County Name  
1-4 Person Households
(Guaranteed Loans)
  
5-8 Person Households
(Guaranteed Loans)
NON-METRO
ADAIR
$73,600
  
$97,150
NON-METRO
ALLEN
$73,600
  
$97,150
FRANKFORT, KY (MICRO)
ANDERSON
$73,600
  
$97,150
PADUCAH, KY-IL (MICRO)
BALLARD
$73,600
  
$97,150
GLASGOW, KY (MICRO)
BARREN
$73,600
  
$97,150
MOUNT STERLING, KY (MICRO)
BATH
$73,600
  
$97,150
MIDDLESBOROUGH, KY (MICRO)
BELL
$73,600
  
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
BOONE
$73,600
  
$97,150
LEXINGTON-FAYETTE, KY (MSA)
BOURBON
$73,600
  
$97,150
HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
BOYD
$73,600
  
$97,150
DANVILLE, KY (MICRO)
BOYLE
$73,600
  
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
BRACKEN
$73,600
  
$97,150
NON-METRO
BREATHITT
$73,600
  
$97,150
NON-METRO
BRECKINRIDGE
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
BULLITT
$73,600
  
$97,150
NON-METRO
BUTLER
$73,600
  
$97,150
NON-METRO
CALDWELL
$73,600
  
$97,150
MURRAY, KY (MICRO)
CALLOWAY
$73,600
  
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
CAMPBELL
$73,600
  
$97,150
NON-METRO
CARLISLE
$73,600
  
$97,150
NON-METRO
CARROLL
$73,600
  
$97,150
NON-METRO
CARTER
$73,600
  
$97,150
NON-METRO
CASEY
$73,600
  
$97,150
CLARKSVILLE, TN-KY (MSA)
CHRISTIAN
$73,600
  
$97,150
LEXINGTON-FAYETTE, KY (MSA)
CLARK
$73,600
  
$97,150
NON-METRO
CLAY
$73,600
  
$97,150
NON-METRO
CLINTON
$73,600
  
$97,150
NON-METRO
CRITTENDEN
$73,600
  
$97,150
NON-METRO
CUMBERLAND
$73,600
  
$97,150
OWENSBORO, KY (MSA)
DAVIESS
$73,600
  
$97,150
BOWLING GREEN, KY (MSA)
EDMONSON
$73,600
  
$97,150
NON-METRO
ELLIOTT
$73,600
  
$97,150
NON-METRO
ESTILL
$73,600
  
$97,150
LEXINGTON-FAYETTE, KY (MSA)
FAYETTE
$73,600
  
$97,150
NON-METRO
FLEMING
$73,600
  
$97,150
NON-METRO
FLOYD
$73,600
  
$97,150
FRANKFORT, KY (MICRO)
FRANKLIN
$73,600
  
$97,150
UNION CITY, TN-KY (MICRO)
FULTON
$73,600
  
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
GALLATIN
$73,600
  
$97,150
NON-METRO
GARRARD
$73,600
  
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
GRANT
$73,600
  
$97,150
MAYFIELD, KY (MICRO)
GRAVES
$73,600
  
$97,150
NON-METRO
GRAYSON
$73,600
  
$97,150
NON-METRO
GREEN
$73,600
  
$97,150
HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
GREENUP
$73,600
  
$97,150
OWENSBORO, KY (MSA)
HANCOCK
$73,600
  
$97,150
ELIZABETHTOWN, KY (MSA)
HARDIN
$73,600
  
$97,150
NON-METRO
HARLAN
$73,600
  
$97,150
NON-METRO
HARRISON
$73,600
  
$97,150
NON-METRO
HART
$73,600
  
$97,150
EVANSVILLE, IN-KY (MSA)
HENDERSON
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
HENRY
$73,600
  
$97,150
NON-METRO
HICKMAN
$73,600
  
$97,150
MADISONVILLE, KY (MICRO)
HOPKINS
$73,600
  
$97,150
NON-METRO
JACKSON
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
JEFFERSON
$73,600
  
$97,150
LEXINGTON-FAYETTE, KY (MSA)
JESSAMINE
$73,600
  
$97,150
NON-METRO
JOHNSON
$73,600
  
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
KENTON
$73,600
  
$97,150
NON-METRO
KNOTT
$73,600
  
$97,150
NON-METRO
KNOX
$73,600
  
$97,150
ELIZABETHTOWN, KY (MSA)
LARUE
$73,600
  
$97,150
LONDON, KY (MICRO)
LAUREL
$73,600
  
$97,150
NON-METRO
LAWRENCE
$73,600
  
$97,150
NON-METRO
LEE
$73,600
  
$97,150
NON-METRO
LESLIE
$73,600
  
$97,150
NON-METRO
LETCHER
$73,600
  
$97,150
MAYSVILLE, KY (MICRO)
LEWIS
$73,600
  
$97,150
DANVILLE, KY (MICRO)
LINCOLN
$73,600
  
$97,150
PADUCAH, KY-IL (MICRO)
LIVINGSTON
$73,600
  
$97,150
NON-METRO
LOGAN
$73,600
  
$97,150
NON-METRO
LYON
$73,600
  
$97,150
RICHMOND-BEREA, KY (MICRO)
MADISON
$73,600
  
$97,150
NON-METRO
MAGOFFIN
$73,600
  
$97,150
NON-METRO
MARION
$73,600
  
$97,150
NON-METRO
MARSHALL
$73,600
  
$97,150
NON-METRO
MARTIN
$73,600
  
$97,150
MAYSVILLE, KY (MICRO)
MASON
$73,600
  
$97,150
PADUCAH, KY-IL (MICRO)
MCCRACKEN
$73,600
  
$97,150
NON-METRO
MCCREARY
$73,600
  
$97,150
OWENSBORO, KY (MSA)
MCLEAN
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
MEADE
$73,600
  
$97,150
MOUNT STERLING, KY (MICRO)
MENIFEE
$73,600
  
$97,150
NON-METRO
MERCER
$73,600
  
$97,150
GLASGOW, KY (MICRO)
METCALFE
$73,600
  
$97,150
NON-METRO
MONROE
$73,600
  
$97,150
MOUNT STERLING, KY (MICRO)
MONTGOMERY
$73,600
  
$97,150
NON-METRO
MORGAN
$73,600
  
$97,150
CENTRAL CITY, KY (MICRO)
MUHLENBERG
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
NELSON
$73,600
  
$97,150
NON-METRO
NICHOLAS
$73,600
  
$97,150
NON-METRO
OHIO
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
OLDHAM
$73,600
  
$97,150
NON-METRO
OWEN
$73,600
  
$97,150
NON-METRO
OWSLEY
$73,600
  
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
PENDLETON
$73,600
  
$97,150
NON-METRO
PERRY
$73,600
  
$97,150
NON-METRO
PIKE
$73,600
  
$97,150
NON-METRO
POWELL
$73,600
  
$97,150
SOMERSET, KY (MICRO)
PULASKI
$73,600
  
$97,150
NON-METRO
ROBERTSON
$73,600
  
$97,150
RICHMOND-BEREA, KY (MICRO)
ROCKCASTLE
$73,600
  
$97,150
NON-METRO
ROWAN
$73,600
  
$97,150
NON-METRO
RUSSELL
$73,600
  
$97,150
LEXINGTON-FAYETTE, KY (MSA)
SCOTT
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
SHELBY
$73,600
  
$97,150
NON-METRO
SIMPSON
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
SPENCER
$73,600
  
$97,150
CAMPBELLSVILLE, KY (MICRO)
TAYLOR
$73,600
  
$97,150
NON-METRO
TODD
$73,600
  
$97,150
CLARKSVILLE, TN-KY (MSA)
TRIGG
$73,600
  
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
TRIMBLE
$73,600
  
$97,150
NON-METRO
UNION
$73,600
  
$97,150
BOWLING GREEN, KY (MSA)
WARREN
$73,600
  
$97,150
NON-METRO
WASHINGTON
$73,600
  
$97,150
NON-METRO
WAYNE
$73,600
  
$97,150
EVANSVILLE, IN-KY (MSA)
WEBSTER
$73,600
  
$97,150
CORBIN, KY (MICRO)
WHITLEY
$73,600
  
$97,150
NON-METRO
WOLFE
$73,600
  
$97,150
LEXINGTON-FAYETTE, KY (MSA)
WOODFORD
$73,600
  
$97,150

Why choose a USDA Mortgage?

  • The loans  require no down payment.
  • There are no prepayment penalties for USDA Kentucky USDA Mortgage Rural Home Loans
  • A USDA Kentucky USDA Mortgage Rural Housing has no monthly mortgage insurance.
  • A USDA Kentucky USDA Mortgage Rural Housing is available all rural areas of the country, provided a market exists for the property and the home meets HUD’s minimum property standards.
  • A USDA Kentucky USDA Mortgage Rural Housing Loan can be used to purchase a new or existing one family home in rural areas.
  • USDA RD LOANS are offered at terms of 30 years with a fixed interest rate.

USDA Loan FAQ’s

Kentucky USDA Mortgage Loans | Rural Housing Ky Loans

What is the Maximum LTV for a USDA Loan?
The maximum USDA rural loan  LTV can be up to 100% LTV plus the Agency guarantee fee.

Can Closing Costs be Financed into the Loan?
Yes, any difference between the contract price and the appraisal value can be used to finance normal closing costs for a Kentucky USDA Mortgage

What is a USDA Loan Guarantee?
USDA Rural Development Single Family Housing Program serves as a safety net for mortgage lenders. The USDA provides the full faith and assurance of the U.S. government that any financial loss resulting from servicing the loan will be reimbursed in full up to an amount not exceeding 90% of the original loan amount. All loss up to an amount not exceeding 35% of the original loan is fully reimbursed. Any loss amount exceeding the 35% is 85% reimbursed. This leaves the lender only 15% exposed on the loss amount above the 35% of original loan. In the majority of cases, the total loss does not exceed 35% of the original loan and the lenders are fully reimbursed. This guarantee provides lenders an expanded level of protection against losses. The quality of this guarantee allows lenders to easily sell the loans on the secondary market.

Kentucky USDA Mortgage Loans | Rural Housing Ky Loans

Louisville Kentucky USDA Loans               Lexington Kentucky USDA Loans               Fayette Kentucky USDA Loans

Owensboro Kentucky USDA Loans           Bowling Green Kentucky USDA Loans     Florence Kentucky USDA Loans

Paducah Kentucky USDA Loans Richmond Kentucky USDA Loans              Elizabethtown Kentucky USDA Loans

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Kentucky USDA Rural Development Mortgage

Posted on February 17, 2012 by

Kentucky USDA Rural Development Mortgage Overview

Features Benefits
Down Payment is not required Borrowers without savings, or who wish to retain their savings qualify
100% financing More Americans become homeowners
No reserves are required Buyers do not need to provide bank statements
Expanded qualifying ratios Buyers with satisfactory credit may qualify with higher Debt-to-Income ratios to accommodate high cost housing areas, etc
Seller is allowed to pay Buyer’s Closing Cost (ask Kentucky USDA Specialist for details) Reduces out of pocket costs for Buyers
Low minimum credit score (640 minimum credit score required) Buyers with non-traditional or no credit histories may qualify
Streamlined processing with 640 credit score No explanations on credit with 640+ score
Very low monthly PMI No monthly mortgage insurance means a lower monthly payment for the Buyers and additional cash each month
Generous income limits based on 115% US median (not HUD) Deductions are available for dependents, daycare, elderly households, etc. to assist more individuals and families in qualifying
No maximum purchase price limit Buyers choose the home that meets their needs and repayment ability
NOT just for first time buyers All homebuyers are eligible for benefits
Modular Homes may be eligible Purchases only (Manufactured Homes are NOT Eligible)
Education/training substitute for job tenure Income history for ratios is waived.
USDA is the lowest payment loan option for buyers wanting a FIXED Rate No MI, very low 30 YEAR FIXED rates and very easy to qualify

Kentucky Guaranteed Rural Housing Loans

To be eligible, applicants must:

  • Have an adequate and dependable income;
  • Be a U.S. Citizen, qualified alien, or be legally admitted to the United States for permanent residence;
  • Have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income – such as annual child care expenses and $480 for each minor child – in order to qualify.

    USDA Rural Development field offices can provide information on the moderate income limits for the areas that fall within their jurisdiction, and can provide further guidance on calculating household income.

  • Have a credit history that indicates a reasonable willingness to meet obligations as they become due;
  • Have repayment ability based on the following ratios: Principle, Interest, Taxes, and Insurance (PITI) divided by gross monthly income must be equal to or less than 29 percent. Total debt divided by gross monthly income must be equal to, or less than, 41 percent.

A Kentucky USDA Guaranteed Loan is a Government Insured 100% Purchase Loan. These loans are only offered in rural areas.

Why choose a Kentucky USDA Mortgage?

  • USDA Loans require no down payment.
  • There are no prepayment penalties for USDA Rural Home Loans.
  • A USDA Rural Development Loan has low monthly mortgage insurance.
  • A USDA Rural Development Mortgage is available all rural areas of the country, provided a market exists for the property and the home meets HUD’s minimum property standards.
  • A USDA Rural Housing Loan can be used to purchase a new or existing one family home in rural areas.
  • USDA RD Loans are offered at terms of 30 years with a fixed interest rate.

  Kentucky USDA Loan FAQ’s

What is Considered a  Kentucky Rural Area by the USDA?
Rural areas include open country and places with population of 10,000 or less and—under certain conditions—towns and cities. There is an automated rural area eligibility calculator for USDA home loans at: http://eligibility.sc.egov.usda.gov.

What is the Maximum Loan Amount for a Kentucky USDA Loan?
There is no maximum loan amount for a USDA rural mortgage. However, it is limited by the appraised value and repayment ability (determined by your household income).

What is the Maximum LTV for a Kentucky USDA Loan?
The maximum USDA rural loan LTV can be up to 100% LTV plus the Agency guarantee fee.

Can Closing Costs be Financed into the Loan?
Yes, any difference between the contract price and the appraisal value can be used to finance normal closing costs for a Kentucky  USDA mortgage.

What is a Kentucky USDA Loan Guarantee?
USDA Rural Development Single Family Housing Program serves as a safety net for mortgage lenders. The USDA provides the full faith and assurance of the U.S. government that any financial loss resulting from servicing the loan will be reimbursed in full up to an amount not exceeding 90% of the original loan amount. All loss up to an amount not exceeding 35% of the original loan is fully reimbursed. Any loss amount exceeding the 35% is 85% reimbursed. This leaves the lender only 15% exposed on the loss amount above the 35% of original loan. In the majority of cases, the total loss does not exceed 35% of the original loan and the lenders are fully reimbursed. This guarantee provides lenders an expanded level of protection against losses. The quality of this guarantee allows lenders to easily sell the loans on the secondary market.

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2012 USDA Rural housing loan program Refinance for Kentucky

Posted on February 1, 2012 by
Logo of the USDA Rural Development office, par...

Image via Wikipedia

2012 USDA Rural housing loan program for Kentucky refinances

Obama Administration Announces Pilot Program to Help Rural Borrowers Refinance Mortgages, Get Lower Interest Rates

WASHINGTON, Feb. 1, 2012 – Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture is launching a pilot program to help rural borrowers refinance their mortgages to reduce their monthly payments. This initiative is part of the Administration’s ongoing efforts to help middle class families, create jobs, and strengthen the economy.

 The Single Family Housing Guaranteed Rural Refinance Pilot Program will operate in 19 states for homeowners who have loans that were made or guaranteed by USDA Rural Development. These states are among those hardest hit by the downturn in the housing market. “Through initiatives like the one we are announcing today, the Obama Administration is taking aggressive steps to fight for middle class homeowners who have played by the rules and are trying to get ahead,” said Vilsack. “This pilot program will help homeowners’ to take advantage of historically low interest rates, and by working closely with lenders, we are helping rural homeowners protect one of the most important investments they will ever make.” USDA Rural Development estimates 235,000 homeowners will be eligible to refinance their loans, which is expected to save them considerable time and money.

To be eligible under this pilot, borrowers must have made their mortgage payments on time for 12 consecutive months. They do not have to obtain new credit reports, property inspections or home appraisals. Refinanced loans must be at rates below the original interest rate. Terms cannot exceed 30 years. No cash out is permitted to the borrower. The two-year pilot is open to homeowners in Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.

The performance of the pilot will be reviewed after two years to evaluate whether to continue it, terminate it or make it permanent. The pilot expands upon USDA’s ongoing help for rural homeowners. In 2010, USDA Rural Development established an aggressive modification policy for Guaranteed Loans that helps homeowners who are delinquent on their mortgages. These homeowners can lower their monthly payments through a loan modification that reamortizes their payments over a term of up to 40 years, lowers their interest rate, or both. USDA also has a “Mortgage Recovery Advance” program in which the Department provides guaranteed lenders up to 12 months of mortgage payments on behalf of borrowers who have fallen behind on their payments due to job loss or other hardships. Allowing rural homeowners in good standing that have home loans that were made or guaranteed by USDA to refinance their homes will bring increased capital to rural America and ease the financial burdens on homeowners.

 This pilot program will not cost taxpayers additional dollars. All USDA Rural Development housing loans meet rigorous underwriting standards and are made only to qualified borrowers. These are not subprime loans. Rural Development’s housing loans and grants make a significant difference in the lives of thousands of rural Americans across the nation. These investments boost rural economies and create jobs. The SFHG Rural Refinance Pilot Program complements President Obama’s recent announcement to help responsible homeowners and heal the housing market. The measures the President and USDA are taking will help stabilize communities and help middle class families across the country. Since taking office, President Obama’s Administration has taken historic steps to improve the lives of rural Americans, put people back to work and build thriving economies in rural communities. From proposing the American Jobs Act to establishing the first-ever White House Rural Council – chaired by Agriculture Secretary Tom Vilsack – the President wants the federal government to be the best possible partner for rural businesses and entrepreneurs and for

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100% Financing in Kentucky for Home Loans

Posted on May 19, 2011 by

Did You know you can go 100% LTV with a 620 Score?
(in qualified areas in Kentucky )
 

USDA RURAL DEVELOPMENT LOANS

 

USDA is a manually underwritten product that has to be delivered to the Local USDA branch to give the final UW approval and the Guarantee Commitment.

 

Ensure property eligiblty: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

Borrowers household must meet income requirement *: http://www.rurdev.usda.gov/HSF-Guar_Income_Limits.html

*All household income, must be used to determine if they qualify for RD. (even if they are not on the loan)

Guidelines:

 

Score –  Middle FICO 620

Tradelines- 3 tradelines with 12 months reporting (2 if we have 12 months rent checks also)    VOR or Rent free letter on every file

Employment – 2 years of employment in same field (recent college graduate – transcripts w/ employment within the field studied)

Funding Fee – 3.5% (see worksheet to determine loan amount)

Loan Amount – 103.5% can be calculated using appraised value if higher.  Allowing all fees to be rolled into the loan amount. 

DTI – Standard USDA DTI’s are 29/41%

Debt ratio waiver to 50% with compensating factors. **

The USDA has a max payment shock of 100%.  

Seller paid closing cost - up to 6%

** Compensating factors would include reserves, down payment, 5 years on job, 24 months rent checks pd on time

CREDIT

 

BK’s- discharged 3 years (ch 7 or 13)            

Foreclosures- 5 years

Collections- UW judgment, $1500 or less in medical can be left open, all others paid

INELIGIBLE

 

Titles to be held in a Trust 

Non- Occupying Co-borrower

Leasholds

Escrow Holdbacks for repairs

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Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky

Posted on June 4, 2011 by
Louisville Featured Mortgage ProfessionalJoel Lobb
Key Financial Mortgage
107 South Husrtbourne Parkway Louisville Ky 40222
502-905-3708

Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky. He has helped over 389 Kentucky families buy their first home and refinance their current mortgage for a lower rate; Free credit report and Free pre-approvals within 1 hour..Call today at 502-905-3708 or email at kentuckyloan@gmail.com NMLS#57916

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Kentucky USDA Rural Development Mortgage Loan

Posted on August 1, 2011 by
An enlargeable map of the 120 counties of the ...

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 Kentucky USDA Rural Development Mortgage Loan

Kentucky USDA Rural Development No Money Down USDA Loan Program

For Kentucky homebuyers the no money down USDA Loan Program offers affordable mortgage financing for moderate income households purchasing a house in a designated USDA Rural area as determined by the Rural Housing Service (RHS). Income and property location guidelines for the USDA Loan Program require that the:

Household must have a moderate income not to exceed USDA Program county limits based on a household size of one to four or five and more family members.
The house must be located in a designated RHS USDA Rural approved area. Homebuyers should not assume that the term “rural” means the USDA Home Loan program is only available in farming communities. Many areas approved by the RHS for the USDA Loan Program are residential areas, near major cities, with a complete absence of any local farms.
 
By purchasing a home located in a USDA Rural area, USDA Loans allow qualified homebuyers the ability to buy a house with:

No Money Down – 100% USDA Loan Financing – No Monthly Mortgage Insurance – Flexible Credit Approval – Secure 30 Year Fixed Rate Mortgage – Unlimited Seller Closing Cost Help Allowed.

 
 
 

Kentucky USDA Rural Development County Specific Income and Location Guidelines

County Max Household Income Location Restrictions
  1 – 4 5 + People
Adair $74,050 $97,750 100% Eligible
Allen $74,050 $97,750 Partially Eligible
Anderson $74,050 $97,750 100% Eligible
Ballard $74,050 $97,750 100% Eligible
Barren $74,050 $97,750 Partially Eligible
Bath $74,050 $97,750 Partially Eligible
Bell $74,050 $97,750 100% Eligible
Boone $79,950 $105,550 Partially Eligible
Bourbon $75,350 $99,450 Partially Eligible
Boyd $74,050 $97,750 Partially Eligible
Boyle $74,050 $97,750 100% Eligible
Bracken $79,950 $105,550 Partially Eligible
Breathitt $74,050 $97,750 100% Eligible
Breckinridge $74,050 $97,750 100% Eligible
Bullitt $74,050 $97,750 Partially Eligible
Butler $74,050 $97,750 Partially Eligible
Caldwell $74,050 $97,750 100% Eligible
Calloway $74,050 $97,750 Partially Eligible
Campbell $79,950 $105,550 Partially Eligible
Carlisle $74,050 $97,750 100% Eligible
Carroll $74,050 $97,750 Partially Eligible
Carter $74,050 $97,750 Partially Eligible
Casey $74,050 $97,750 100% Eligible
Christian $74,050 $97,750 Partially Eligible
Clark $75,350 $99,450 Partially Eligible
Clay $74,050 $97,750 Partially Eligible
Clinton $74,050 $97,750 100% Eligible
Crittenden $74,050 $97,750 100% Eligible
Cumberland $74,050 $97,750 Partially Eligible
Daviess $74,050 $97,750 Partially Eligible
Edmonson $74,050 $97,750 100% Eligible
Elliott $74,050 $97,750 Partially Eligible
Estill $74,050 $97,750 100% Eligible
Fayette N/A N/A Completely Ineligible
Fleming $74,050 $97,750 Partially Eligible
Floyd $74,050 $97,750 100% Eligible
Franklin $75,550 $99,750 Partially Eligible
Fulton $74,050 $97,750 Partially Eligible
Gallatin $79,950 $105,550 Partially Eligible
Garrard $74,050 $97,750 100% Eligible
Grant $74,050 $97,750 Partially Eligible
Graves $74,050 $97,750 100% Eligible
Grayson $74,050 $97,750 Partially Eligible
Green $74,050 $97,750 100% Eligible
Greenup $74,050 $97,750 Partially Eligible
Hancock $74,050 $97,750 Partially Eligible
Hardin $74,050 $97,750 Partially Eligible
Harlan $74,050 $97,750 100% Eligible
Harrison $74,050 $97,750 Partially Eligible
Hart $74,050 $97,750 100% Eligible
Henderson $74,050 $97,750 Partially Eligible
Henry $74,050 $97,750 Partially Eligible
Hickman $74,050 $97,750 100% Eligible
Hopkins $74,050 $97,750 Partially Eligible
Jackson $74,050 $97,750 100% Eligible
Jefferson N/A N/A Completely Ineligible
Jessamine $75,350 $99,450 Partially Eligible
Johnson $74,050 $97,750 100% Eligible
Kenton $79,950 $105,550 Partially Eligible
Knott $74,050 $97,750 Partially Eligible
Knox $74,050 $97,750 100% Eligible
Larue $74,050 $97,750 100% Eligible
Laurel $74,050 $97,750 Partially Eligible
Lawrence $74,050 $97,750 100% Eligible
Lee $74,050 $97,750 Partially Eligible
Leslie $74,050 $97,750 100% Eligible
Letcher $74,050 $97,750 Partially Eligible
Lewis $74,050 $97,750 100% Eligible
Lincoln $74,050 $97,750 Partially Eligible
Livingston $74,050 $97,750 Partially Eligible
Logan $74,050 $97,750 100% Eligible
Lyon $74,050 $97,750 Partially Eligible
Madison $74,050 $97,750 Partially Eligible
Magoffin $74,050 $97,750 100% Eligible
Marion $74,050 $97,750 100% Eligible
Marshall $74,050 $97,750 Partially Eligible
Martin $74,050 $97,750 Partially Eligible
Mason $74,050 $97,750 100% Eligible
Mccracken $74,050 $97,750 Partially Eligible
Mccreary $74,050 $97,750 Partially Eligible
Mclean $74,050 $97,750 100% Eligible
Meade $74,050 $97,750 Partially Eligible
Menifee $74,050 $97,750 100% Eligible
Mercer $74,050 $97,750 Partially Eligible
Metcalfe $74,050 $97,750 Partially Eligible
Monroe $74,050 $97,750 100% Eligible
Montgomery $74,050 $97,750 100% Eligible
Morgan $74,050 $97,750 Partially Eligible
Muhlenberg $74,050 $97,750 Partially Eligible
Nelson $74,050 $97,750 100% Eligible
Nicholas $74,050 $97,750 100% Eligible
Ohio $74,050 $97,750 Partially Eligible
Oldham $74,050 $97,750 100% Eligible
Owen $74,050 $97,750 Partially Eligible
Owsley $74,050 $97,750 100% Eligible
Pendleton $79,950 $105,550 Partially Eligible
Perry $74,050 $97,750 100% Eligible
Pike $74,050 $97,750 Partially Eligible
Powell $74,050 $97,750 100% Eligible
Pulaski $74,050 $97,750 Partially Eligible
Robertson $74,050 $97,750 100% Eligible
Rockcastle $74,050 $97,750 Partially Eligible
Rowan $74,050 $97,750 100% Eligible
Russell $74,050 $97,750 Partially Eligible
Scott $75,350 $99,450 100% Eligible
Shelby $79,800 $105,350 Partially Eligible
Simpson $74,050 $97,750 100% Eligible
Spencer $74,050 $97,750 Partially Eligible
Taylor $74,050 $97,750 100% Eligible
Todd $74,050 $97,750 Partially Eligible
Trigg $74,050 $97,750 100% Eligible
Trimble $74,050 $97,750 Partially Eligible
Union $74,050 $97,750 100% Eligible
Warren $74,050 $97,750 Partially Eligible
Washington $74,050 $97,750 Partially Eligible
Wayne $74,050 $97,750 100% Eligible
Webster $74,050 $97,750 Partially Eligible
Whitley $74,050 $97,750 Partially Eligible
Wolfe $74,050 $97,750 100% Eligible
Woodford $75,350 $99,450 Partially Eligible

http://plus.cnbc.com/rssvideosearch/action/player/id/1337491577/code/cnbcplayershare

 
 
 
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Posted in 100% Financing Zero Down, Current USDA and RHS Guidelines, USDA /Rural Housing Loan Offices in Ky, USDA/RHS Income limits by Ky Counties, Zero Down Home Loans | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , | 3 Comments

Posted on August 4, 2011 by 
The Kentucky Guaranteed Rural Housing (GRH) Loan Program is designed to assist households in obtaining adequate but modest, decent, safe and sanitary dwellings and related facilities for their own use in rural areas. Loans are limited to applicants with incomes that do not exceed state and local Rural Development (RD) median income limits and property that is designated as rural by Rural Development.

The benefits of the Kentucky Guaranteed Rural Housing (GRH) Loan Program include:

•No Down Payment Required. Borrowers can finance up to 100% of the appraised value of the home.
•No monthly mortgage insurance payments.
•Competitive 30 year fixed interest rates.
•Flexible credit guidelines.
•No maximum purchase price limit. 

To verify eligibility for a GRH Loan, property eligibility and income eligibility must be obtained.  Access our website for the USDA property and income eligiblity links (USDA Links). In addition, you will find AFR GRH Loan Program Guidelines, a GRH - Guarantee Fee Calculator and GRH overview presentation by Rural Development.

Thank you for your continued interest .  Please let me know if I can assist you.
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USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011

Posted on August 17, 2011 by

USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011

USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011
According to a recent Administrative Notice (AN4557) sent out by USDA, starting October 1, 2011 the upfront guarantee fee will be reduced from 3.5% of the loan amount to 2% with the addition of minimal monthly mortgage insurance on all purchase transactions with the USDA No Money Down Mortgage.
On a refinance transactions involving USDA Mortgages, the upfront guarantee fee will remain at 1% of the loan amount but will include the monthly mortgage insurance.
The annual fee (divided by 12 months gives you the monthly mortgage insurance fee) and upfront guarantee fee are subject to change annually to maintain a subsidy neutral program.
What does “to maintain a subsidy neutral program” mean? It means the USDA program is trying  to model it’s self after the FHA and VA programs which are self sustaining/self funded and do not require congressional approval for funding.
This is great news for tax payers in general but not so much for the potential new home buyer and here’s why. As you see from the example below, the new monthly mortgage insurance will increase your monthly payment which in turn effects your debt to income ratio. Your debt to income ratio is one of the primary factors looked at when an underwriter determines your eligibility for any mortgage and USDA Mortgages have some semi-restrictive debt to income guidelines.
The other down side here is that the monthly mortgage insurance will NEVER go away! Unlike FHA Mortgages or even Conventional Mortgages, the USDA Mortgage will require the monthly mortgage insurance for the entire life of the loan. This will pretty much ensure that you will want to refinance out of your USDA Mortgage and into a Conventional Mortgage without mortgage insurance as soon as you have enough equity in your home.
Current USDA USDA After 10/01/2011
Sales Price $200,000.00 $200,000.00
Loan Amount with USDA Guarantee Fee $207,253.00 $241,250.00
Monthly Payment (with mortgage insurance after 10/2011 on the right) $1,019.56 $1,053.56
Difference In Payment $ 34.00more per 

Apply for a home loan by clicking the link below: It’s free and takes less than 5 minutes Or call us at 502-905-3708 for your free application over the phone

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Key Financial Mortgage of Ky (NMLS# 1800) is not affiliated nor a part of the USDA Government Agency. 
Posted in 100% Financing Zero Down, Current USDA and RHS Guidelines, USDA, USDA /Rural Housing Loan Offices in Ky, USDA/RHS Income limits by Ky Counties, VA | Tagged , , , , , , , , , , , , , , | Leave a comment

USDA Has $11.2 Billion to Guarantee No-Down Mortgages in Kentucky

Posted on August 18, 2011 by

USDA Has $11.2 Billion to Guarantee No-Down Mortgages in Kentucky

By Steve Cook Print Article Print Article

The U.S. Department of Agriculture has only two months to spend $11.2 billion on its no-down payment rural development loan program, a record amount at this juncture in the federal fiscal year for the program that provides no-down payment mortgages to borrowers in rural and suburban markets.

Usually by August, the program—which has become extraordinarily popular since the demise of private no-down financing—runs out of money and applications are put on hold until more money becomes available with the beginning of a new federal fiscal year on October 1.

This year, however, the program is enjoying a windfall—the result of a continuing resolution signed by President Obama that doubled the size of the USDA’s Rural Development Service’s Section 502 single family guaranteed loan program, taking it from $12 to $24 billion. Some $12 billion has been allocated over the past three months.

Founded in 1949 to spur home sales and development in rural areas, the U.S. Department of Agriculture’s popular direct and guaranteed rural housing loans are one of the few places in America you can still get a mortgage with no money down at competitive rates.

Borrowers don’t have to be lower income—in fact they can make slightly more than the median. To qualify for the government guaranteed loans, borrowers can earn up to 115 percent of the median income for the area. Nor do they have to buy in rural area. They can live relatively close to a major urban area or in a popular resort community; however qualifying areas were recently redrawn to comply with the program’s rural mandate.

Effective October 1 the USDA will begin collecting a monthly mortgage insurance of .3 percent, but their up-front mortgage insurance will be reduced from 3.5 percent to 2 percent. On a $200,000 purchase with a USDA guaranteed mortgage at 5 percent, a buyer’s current mortgage payment will increase $34/month under this new split premium mortgage insurance structure, which could potentially make it more difficult for some buyers to get financing.

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Kentucky Single Family Housing Guaranteed Loan Program USDA and Rural Housing Changes 10/1/2011

Posted on October 1, 2011 by

Kentucky USDA/Guaranteed Rural Housing Program
Federal Budget Battle May Affect Funding Effective October 1, 2011
 
Despite changes in the fee structure effective October 1, 2011, Congress must appropriate funds for the Kentucky Guaranteed Rural Housing program. Assuming Congress passes legislation currently under consideration to keep the federal government fully functional, a number of days will be required to set up the authorized allocation for distribution.
 
Delays in the issuance of the Conditional Commitment should be expected. We  will be able to underwrite and condition the loan file. However, we will not be able to close and fund the loan until the Kentucky  Rural Housing Conditional Commitment is issued by the Local Kentucky RHS office.
 
We will notify our clients when RHS resumes the issuance of Conditional Commitments.

Kentucky Single Family Housing Guaranteed Loan Program USDA and Rural Housing
 
  

September 30, 2011 FISCAL YEAR 2012 COMMITMENT NOTICE!

Please find attached the “Fiscal Year 2012 (FY 12) Commitment Notice” for the Single Family Housing Guaranteed Loan Program. 

Beginning October 1, 2011, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority.” 

 The FY 2012 fee structure will be as follows:

2 percent up-front fee for purchase transactions;

1 percent up-front fee for refinance transactions

; and 0.3 percent annual fee based on the average scheduled unpaid principal balance of the loan, for both purchase and refinance loans transactions.

 Form RD 1980-21, “Request for Single Family Housing Loan Guarantee,” has been revised with an effective date of 10-2011.  The revised form incorporates the Annual Fee disclosures.  Therefore, beginning October 1, 2011 all “Request for Single Family Housing Loan Guarantee” must be submitted on the revised form.  The prior version of the form is dated 10-2010, and will not be accepted for FY 2012 Conditional Commitment requests. 

The revised form is attached to this communication and can also be obtained from the following link: http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1980-21.PDF

As a reminder, the new Guarantee Fee and Annual Fee Calculator is available for download at:http://kentuckyusdaloan.wordpress.com/2011/08/30/kentucky-usda-rural-development-guaranteed-section-502-loans/

 Questions regarding this notice may be directed at 502-905-3708

 
 
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Credit Scores and the Kentucky USDA Rural Development Loan Program

Posted on October 28, 2011 by

Credit Scores and the  Kentucky  USDA Rural Development Loan Program

 

The Kentucky USDA Rural Development Loan Program is by far the most credit score friendly loan program currently available. While USDA is willing to work with scores lower than 640 most lenders won’t. Thus, pragmatically the minimum credit score required by USDA is 640.

 

For Kentucky homebuyers with a minimum credit score of 640 lenders may streamline the credit approval process normally required as part of the underwriting process. This means that a borrower:

 

With a lack of credit “depth” will not have to document non-traditional credit items such as utility or insurance payments
A negative past credit history may allow the Underwriter to not request letters of explanation for the cause of the past challenges
Collection accounts can remain open provided the Underwriter believes it unlikely that the account will eventually turn into a judgment

However, USDA is not willing to overlook certain overtly negative credit items even when the credit scores are over 640. For instance borrowers with any of the following adverse past credit should not expect to obtain credit approval using the Kentucky USDA loan program:

 

Foreclosure or short sale within the last 3 years
Chapter 7 bankruptcy discharged within the past 3 years
Chapter 13 bankruptcy debt restricting plan completed within the last 12 months
Late mortgage payments within the last 12 months
Applicant or co-applicant delinquent on a federal debt; such as taxes, student loans, or previous agency loan (i.e. VA loan in which the eligibility was forfeited due to a foreclosure)

Kentucky USDA may be willing to give a borrower an exception to a past bankruptcy or foreclosure prior to the three year period provided the borrower can document the cause of the past negative credit experience as being related to an illness or job loss and unlikely to reoccur.

 

Once the credit score exceeds 680, Kentucky USDA allows this score to be considered as justification for allowing the borrowers debt-to-income-ratio to exceed the target ratios of 29% for the housing costs and 41% for the total debt ratio. Frequently USDA will approve loans where the housing ratios are in the high 30% range and total debt ratios are in the high 40% range.

 

Bottom line the Kentucky USDA Rural Development Loan Program is more flexible in approving a perspective borrower than any other loan program. But like any loan program today, the Loan Officer shouldn’t assume that this level of credit flexibility will result in an automatic positive underwriting decision if the Underwriter doesn’t feel strongly that the borrowers chance of success at homeownership is strong.

 

Downpayment Requirement
No down payment is required
If borrower has adequate assets (i.e. 20% of the property purchase price) to obtain conventional financing the borrower may be ineligible for the USDA Rural Development Loan

 

Eligible Properties
Must be in an eligible USDA Rural Development Location
Owner-occupied properties
Existing attached & detached single family residences
New construction with permanent financing only
2-4 unit properties
PUD’s (i.e. Townhomes)
Condo-units. HUD, VA, FNMA or FHLMC approved project

 

Ineligible Properties
Co-ops
Mixed-use
Condotels
Manufactured homes
Log cabin homes
Single Family Homes:
 
The property must be “Modest” residential lot that can’t be subdivided
Land value exceeds 30% of the appraised value

 

Maximum Income Amount
County specific. Reference the USDA website for adjusted household income limits

 

Maximum Loan-To-Value
Maximum loan-to-value is 103.50%

 

Maximum Mortgage Amount
None
With in-ground swimming pool

 

Minimum Credit Score
Middle Credit Score – 640 for each applicant

 

Monthly Mortgage Insurance Premium (MIP) Requirements
0%. USDA Loan doesn’t require a monthly mortgage insurance premium

 

Multiple Property Ownership
USDA Rural Development primarily doesn’t allow applicants to own other properties
Exceptions include when the other property owned is:
 
Not owned in the local commuting area as the new property; or
Not structurally sound and/or functionally adequate

 

Occupancy Type
Owner occupied only

 

Qualifying Ratios
29/41% debt-to-income (DTI) – Target
39/49% debt-to-income (DTI) – With compensating factors such as:
 
680 or higher credit score
No or low “payment shock” – less than a 100% increase in proposed mortgage payment Vs. current rental housing expenses
Fiscally sound use of credit
Ability to accumulate savings
Stable employment history with 2 or more in current position or continuous employment history with no job gaps
Cash reserves available for use after settlement
Career advancement as indicated by job training or additional education in the applicants profession
Trailing spouse income – as a result of a job transfer, the house is being purchased, prior to the secondary wage-earner obtaining employment. If the secondary wage-earner has an established history of employment and has a reasonable chance to obtain new employment in the area
Low total debt

 

Seller Contribution
Unlimited Contribution towards closing costs, prepaids, discount points, buydown fees, and upfront Commitment Fee

 

Transaction Types
Purchase
Rate/Term Refinance on existing USDA loan

 

Kentucky USDA Rural Development County Specific Income and Location Guidelines

 

County Max Household Income Location Restrictions
  1 – 4 5 + People
Adair $74,050 $97,750 100% Eligible
Allen $74,050 $97,750 Partially Eligible
Anderson $74,050 $97,750 100% Eligible
Ballard $74,050 $97,750 100% Eligible
Barren $74,050 $97,750 Partially Eligible
Bath $74,050 $97,750 Partially Eligible
Bell $74,050 $97,750 100% Eligible
Boone $79,950 $105,550 Partially Eligible
Bourbon $75,350 $99,450 Partially Eligible
Boyd $74,050 $97,750 Partially Eligible
Boyle $74,050 $97,750 100% Eligible
Bracken $79,950 $105,550 Partially Eligible
Breathitt $74,050 $97,750 100% Eligible
Breckinridge $74,050 $97,750 100% Eligible
Bullitt $74,050 $97,750 Partially Eligible
Butler $74,050 $97,750 Partially Eligible
Caldwell $74,050 $97,750 100% Eligible
Calloway $74,050 $97,750 Partially Eligible
Campbell $79,950 $105,550 Partially Eligible
Carlisle $74,050 $97,750 100% Eligible
Carroll $74,050 $97,750 Partially Eligible
Carter $74,050 $97,750 Partially Eligible
Casey $74,050 $97,750 100% Eligible
Christian $74,050 $97,750 Partially Eligible
Clark $75,350 $99,450 Partially Eligible
Clay $74,050 $97,750 Partially Eligible
Clinton $74,050 $97,750 100% Eligible
Crittenden $74,050 $97,750 100% Eligible
Cumberland $74,050 $97,750 Partially Eligible
Daviess $74,050 $97,750 Partially Eligible
Edmonson $74,050 $97,750 100% Eligible
Elliott $74,050 $97,750 Partially Eligible
Estill $74,050 $97,750 100% Eligible
Fayette N/A N/A Completely Ineligible
Fleming $74,050 $97,750 Partially Eligible
Floyd $74,050 $97,750 100% Eligible
Franklin $75,550 $99,750 Partially Eligible
Fulton $74,050 $97,750 Partially Eligible
Gallatin $79,950 $105,550 Partially Eligible
Garrard $74,050 $97,750 100% Eligible
Grant $74,050 $97,750 Partially Eligible
Graves $74,050 $97,750 100% Eligible
Grayson $74,050 $97,750 Partially Eligible
Green $74,050 $97,750 100% Eligible
Greenup $74,050 $97,750 Partially Eligible
Hancock $74,050 $97,750 Partially Eligible
Hardin $74,050 $97,750 Partially Eligible
Harlan $74,050 $97,750 100% Eligible
Harrison $74,050 $97,750 Partially Eligible
Hart $74,050 $97,750 100% Eligible
Henderson $74,050 $97,750 Partially Eligible
Henry $74,050 $97,750 Partially Eligible
Hickman $74,050 $97,750 100% Eligible
Hopkins $74,050 $97,750 Partially Eligible
Jackson $74,050 $97,750 100% Eligible
Jefferson N/A N/A Completely Ineligible
Jessamine $75,350 $99,450 Partially Eligible
Johnson $74,050 $97,750 100% Eligible
Kenton $79,950 $105,550 Partially Eligible
Knott $74,050 $97,750 Partially Eligible
Knox $74,050 $97,750 100% Eligible
Larue $74,050 $97,750 100% Eligible
Laurel $74,050 $97,750 Partially Eligible
Lawrence $74,050 $97,750 100% Eligible
Lee $74,050 $97,750 Partially Eligible
Leslie $74,050 $97,750 100% Eligible
Letcher $74,050 $97,750 Partially Eligible
Lewis $74,050 $97,750 100% Eligible
Lincoln $74,050 $97,750 Partially Eligible
Livingston $74,050 $97,750 Partially Eligible
Logan $74,050 $97,750 100% Eligible
Lyon $74,050 $97,750 Partially Eligible
Madison $74,050 $97,750 Partially Eligible
Magoffin $74,050 $97,750 100% Eligible
Marion $74,050 $97,750 100% Eligible
Marshall $74,050 $97,750 Partially Eligible
Martin $74,050 $97,750 Partially Eligible
Mason $74,050 $97,750 100% Eligible
Mccracken $74,050 $97,750 Partially Eligible
Mccreary $74,050 $97,750 Partially Eligible
Mclean $74,050 $97,750 100% Eligible
Meade $74,050 $97,750 Partially Eligible
Menifee $74,050 $97,750 100% Eligible
Mercer $74,050 $97,750 Partially Eligible
Metcalfe $74,050 $97,750 Partially Eligible
Monroe $74,050 $97,750 100% Eligible
Montgomery $74,050 $97,750 100% Eligible
Morgan $74,050 $97,750 Partially Eligible
Muhlenberg $74,050 $97,750 Partially Eligible
Nelson $74,050 $97,750 100% Eligible
Nicholas $74,050 $97,750 100% Eligible
Ohio $74,050 $97,750 Partially Eligible
Oldham $74,050 $97,750 100% Eligible
Owen $74,050 $97,750 Partially Eligible
Owsley $74,050 $97,750 100% Eligible
Pendleton $79,950 $105,550 Partially Eligible
Perry $74,050 $97,750 100% Eligible
Pike $74,050 $97,750 Partially Eligible
Powell $74,050 $97,750 100% Eligible
Pulaski $74,050 $97,750 Partially Eligible
Robertson $74,050 $97,750 100% Eligible
Rockcastle $74,050 $97,750 Partially Eligible
Rowan $74,050 $97,750 100% Eligible
Russell $74,050 $97,750 Partially Eligible
Scott $75,350 $99,450 100% Eligible
Shelby $79,800 $105,350 Partially Eligible
Simpson $74,050 $97,750 100% Eligible
Spencer $74,050 $97,750 Partially Eligible
Taylor $74,050 $97,750 100% Eligible
Todd $74,050 $97,750 Partially Eligible
Trigg $74,050 $97,750 100% Eligible
Trimble $74,050 $97,750 Partially Eligible
Union $74,050 $97,750 100% Eligible
Warren $74,050 $97,750 Partially Eligible
Washington $74,050 $97,750 Partially Eligible
Wayne $74,050 $97,750 100% Eligible
Webster $74,050 $97,750 Partially Eligible
Whitley $74,050 $97,750 Partially Eligible
Wolfe $74,050 $97,750 100% Eligible
Woodford $75,350 $99,450 Partially Eligible

 

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Posted in Credit Bad, Current USDA and RHS Guidelines, Debt Ratio and Deferred Student Loans, Guaranteed Section 502 Loans, USDA /Rural Housing Loan Offices in Ky, USDA/RHS Income limits by Ky Counties | Tagged , , , , , , , , , , , , , , | 7 Comments

Kentucky Guaranteed Rural Housing Loans 2012 Update

Posted on December 8, 2011 by

Kentucky Guaranteed Rural Housing loans: Temporarily unavailable for Refinance transactions

 

On Dec. 5, an industry update from the national United States Department of Agriculture (USDA) Rural Development office announced an increase in the Upfront Guarantee Fee that will be charged on Refinance transactions using the Guaranteed Rural Housing program (which is also known as the Single Family Housing Guaranteed loan, Rural Development or Rural Housing) for all Kentucky Guaranteed Rural Housing Loans in Kentucky

 

The Upfront Guarantee Fee will increase from 1% to 1.5%, effective Dec. 7, 2011.

 Purchase Kentucky Guaranteed Rural Housing loans continue to be accepted.

 Rationale for the change
According to the industry update from the national USDA Rural Development office, the fee increase will generate more than $1.1 billion in refinance funds available to eligible homeowners. Interest rates for these loans continue to be low and the fee increase provides responsible homeowners with an opportunity to refinance their existing mortgage for lower monthly payments.

 

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Posted in 100% Financing Zero Down, Current USDA and RHS Guidelines, USDA, USDA /Rural Housing Loan Offices in Ky, USDA/RHS Income limits by Ky Counties, Zero Down Home Loans | Tagged , , , , , , , | 4 Comments

Section 502 USDA Guaranteed Loan Program Rural Refinance Pilot Guidelines for Kentucky Mortgages

Posted on February 22, 2012 by

Section 502 Guaranteed Loan Program Rural Refinance Pilot Guidelines for Kentucky:

Brief Pilot Description: The Rural Refinance Pilot is available to eligible borrowers who qualify to refinance their current USDA mortgage loans. Under the Rural Refinance Pilot program, a lender does not need to submit a new credit report, new appraisal, any HUD Handbook minimum property determinations, or any additional property inspections. Eligible “Hardest Hit” States: The following states may participate in the Rural Refinance Pilot: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, and Tennessee. Additional States are not eligible at this time.

Eligible Borrowers: Current Section 502 Direct or Guaranteed Loan borrowers must:

1. Meet current income eligibility requirements;

2. Reside in an eligible rural area or an area that was eligible at the time of the original loan closing; and

3. Have made timely mortgage payments for the 12-month period prior to the refinance. Overview of Rural Refinance Pilot Guidelines: 1. The existing loan must be a Section 502 Direct or Guaranteed loan. 2. The new interest rate must be a fixed rate 100 basis points below the current interest rate. 3. The new term of the refinance loan may not exceed thirty years from the date of closing

. 4. A Rural Refinance Pilot loan may only include the principal balance of the loan plus a portion of or the full upfront guarantee fee. The applicable upfront refinance guarantee fee is 1.5 percent. No cash out is permitted to the borrower. Accrued interest, closing costs, lender fees, and late fees are not eligible to be part of the refinance loan.

5. An annual fee also applies. For FY 2012 the applicable annual fee is .3 percent.

6. A new appraisal, new credit report, HUD Handbook determination and additional property inspections are not required. The original appraisal amount may be used from Guaranteed Loan System to process the loan.

7. Ratio calculations are not required. Therefore debt ratio waiver requests will not be necessary.

8. Rural Refinance Pilot loans must be manually underwritten. They cannot be processed through the Guaranteed Underwriting System.

9. Customary and reasonable closing costs and other fees may be collected from the borrower by the lender. Such charges may not exceed the cost paid by the lender or charged to the lender by the service provider. An origination fee of up to one percent of the total loan amount may be charged to the borrower.

10. All the following documentation is required: a. Form RD 1980-21 “Request for Single Family Housing Loan Guarantee”. b. Income verifications for all adult household members. c. Uniform Residential Loan Application. d. Evidence of qualified alien status, if applicable. e. FEMA Form 81-93 “Standard Flood Hazard Determination.” Appropriate flood insurance must be obtained if the property is in a flood zone at the time of the new loan closing, even if the area was not in a flood zone at the time of the original loan closing. A flood elevation survey is not required. f. Evidence of previous 12 month mortgage payment history. The lender must secure evidence to document the borrower(s) has paid the loan on time for the previous 12 months. The lender may utilize a Verification of Mortgage obtained from or provided directly by the loan servicer that lists the payment history for each of the previous 12 months. As an alternative, the lender may submit a credit report which reflects a satisfactory mortgage payment history over the past 12 months. If the lender submits a credit report to Rural Development as proof of payment history, only the payment history of the current mortgage will be considered. Credit waivers or explanations for adverse credit that may be present on the report are not required.

11. All additional requirements of RD Instruction 1980-D and applicable Administrative Notices continue to apply. Rural Development Responsibilities: 1. Request funding for the refinance if necessary by sending an email request to: sfhgld@wdc.usda.gov. Please include the State and the amount of funding needed. 2. Retrieve original appraisal amounts in GLS when processing Rural Refinance Pilot transactions. 3. Review the previous 12-month mortgage payment history. If a credit report is submitted, only review the 12-month mortgage payment history. If the mortgage account is currently delinquent or has been reported delinquent in the previous 12 months, the borrower is not eligible. Agency staff should use the “Borrower ID” with GLS Report “GLSST01: Status of a GRH Loan Account” to ensure the loan is currently active and not in default. 4. Enter 0 in the “FICO Score” data field when processing a Rural Refinance Pilot application. 5. Enter the repayment income calculation in GLS, but do not include any “Additional Liabilities” amounts.

In the event the new mortgage payment results in ratios above 29 and/or 41 percent, check the box that indicates a debt ratio waiver has been issued by the Agency. 6. In the “Agency Notes” section of the GLS Application screen enter “Rural Refinance Pilot Loan.” This will identify the loan as part of this pilot in the event of a loan review. 7.

 

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2012 Welcome Home Program for Kentucky Homebuyers

Posted on February 12, 2012 by

2012 Welcome Home Program for Kentucky Homebuyers.

 

via 2012 Welcome Home Program for Kentucky Homebuyers.

via 2012 Welcome Home Program for Kentucky Homebuyers.

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100% Financing Zero Down thru Rural Housing Loans in Kentucky

Posted on January 28, 2012 by

100% Financing Zero Down thru Rural Housing Loans in Kentucky.

via 100% Financing Zero Down thru Rural Housing Loans in Kentucky.

Posted in 100% Financing Zero Down, Current USDA and RHS Guidelines, USDA, USDA /Rural Housing Loan Offices in Ky, USDA/RHS Income limits by Ky Counties, Zero Down Home Loans | Tagged , , , , , , , | 3 Comments

QUICK GUIDE for Kentucky USDA Rural Development Housing Loan

Posted on January 14, 2012 by

QUICK GUIDE for Kentucky USDA Rural Development Housing Loan.

via QUICK GUIDE for Kentucky USDA Rural Development Housing Loan.

Posted in 100% Financing Zero Down | 1 Comment