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)
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
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
Titles to be held in a Trust
Non- Occupying Co-borrower
Escrow Holdbacks for repairs
- DEFERRED STUDENT LOANS AND DEBT RATIO CALCULATIONS Kentucky Rural Housing Loans and USDA Loans in KY (kentuckyusdaloan.wordpress.com)
- Kentucky USDA and Rural Home Loans Financing (kentuckyusdaloan.wordpress.com)
- Kentucky USDA/ KENTUCKY RURAL HOUSING LOAN 2011 (louisvillekymortgage.net)