100% Financing in Kentucky for Home Loans

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

Advertisements

3 thoughts on “100% Financing in Kentucky for Home Loans

  1. I’m excited to discover this website. I want to to thank you for ones time for
    this particularly wondefful read!! I deffinitely savored
    every bit of it and i also have you bookmarked to looik at new information on your website.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s