Kentucky USDA Rural Housing Home Loans

Kentucky USDA Rural Housing Home Loans

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, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and no monthly mortgage insurance.

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

USDA Guaranteed Rural Housing Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in 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 Rural Loan 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 Rural Housing Loan approval through most lenders. 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 Rural Home 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 Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?
USDA Rural Development 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 lender offers.

Kentucky USDA Loan Adjusted Maximum Income Limits by County
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

USDA Loan information for Kentucky’s top cities:

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
Paduca Kentucky USDA Loans Richmond Kentucky USDA Loans Elizabethtown Kentucky USDA Loans

Advertisements

21 thoughts on “Kentucky USDA Rural Housing Home Loans

  1. CREDIT REPORT
    (INDEX)

    REQUIREMENTS
    · Credit report must match GUS Findings.

    · Must not be older than 120 days on the date of closing for existing properties and 180 days for proposed and new construction.

    · Must contain complete information provided by all three repositories.

    · The credit report must show the following three required FICO scoring models for the report to be valid with Platinum Mortgage, Inc.:

    1. Equifax Beacon 5.0

    2. Transunion FICO Risk Score, Classic 04

    3. Experian/Fair Isaac Risk Model V2.

    · Must reflect a minimum of 1 score per borrower.

    TRADELINE REQUIREMENTS:

    GUS Approved: Each credit report must contain 2 acceptable tradelines with at least 12 month history and last active within the last 24 months (see below regarding acceptable tradelines).

    Manual Underwrite: As determined acceptable by the underwriter.

    CREDIT SCORE
    · If more than one score is supplied by the same repository, the lesser of the scores will be used.

    · Determining Qualifying Credit Score:

    o Middle of 3

    o Lower of 2

    o If only one score is provided, that score is the qualifying credit score for that borrower.

    Minimum credit score for:

    · Manual Underwrite = 660

    · GUS Approval = 660

    INQUIRIES
    Borrower must provide Letter of Explanation for all credit inquiries in the last 90 days reflected on the credit report, disclosing any new credit obtained. New credit must be documented and included in debt ratios.

    AUTHORIZED USER ACCOUNTS ON CREDIT REPORT
    Authorized User Accounts: As per GUS findings:

    Lenders must ensure authorized user trade lines reported on the credit report are an accurate reflection of the applicant’s overall credit history. An automated underwriting recommendation of ACCEPT must include evidence in the lender’s permanent case file of at least one of the following:

    1. Another applicant on the mortgage application owns the trade line in question,

    2. Owner of the trade line is the spouse of an applicant, or

    3. Evidence the applicant has been making payments on the account for the last 12 months.

    If one of these conditions cannot be met, an automated underwriting recommendation of ACCEPT must be manually downgraded to a REFER and the file manually underwritten.

    LIABILITIES & CREDIT HISTORY

    (INDEX)

    HOUSING HISTORY
    · A 36-month history of residence is required on all files.

    · Additionally, a 12-month verification of rent or mortgage with a payment rating is also required on all files when the primary wage earner has a credit score of less than 660 or not approved by GUS, or at underwriter discretion if required. If private party landlord, rental history must be documented by 12 months canceled checks.

    · No more than 2×30 in the previous 36 months or 0x30 in the previous 12 months allowed.

    OPEN CHARGE ACCOUNTS
    If no monthly payment is reflected on the credit report, the greater of $10 or 5% of the outstanding balance should be used for qualification purposes.

    LEASE PAYMENTS
    All lease payments are required to be included in debt ratios regardless of months remaining on lease.

    ALIMONY, CHILD SUPPORT, OR SEPARATE MAINTENANCE
    · Court-ordered payments should be documented by a copy of the court order.

    · Borrower(s) must have an acceptable existing repayment plan for any arrearages and proof of 12 months on time payments, and/or be required to pay account in full prior to, or at closing.

    · See Collections/Chargeoffs for additional requirements if there are arrearages.

    CONTINGENT LIABILITIES
    · If the borrower is a co-signer on an account paid by a 3rd party, the liability may only be excluded from the borrower debt ratios if evidence the primary obligor has been making the payments on time on the debt for a minimum of 12 months can be obtained.

    · Court-ordered assignment of debt should be documented by a copy of the court order. Must have 12 months cancelled checks from the payer of the court ordered debt in order to exclude from the debt ratio.

    PREVIOUS MORTGAGE:

    · Section 1980.345(c)(1)(ii) requires all previous mortgage liabilities disposed of through a sale, trade, or transfer without a release of liability, to be included in the debt ratio calculation unless evidence can be obtained to confirm the remaining party has made payments over the last 12 months.

    · In divorce settlements when one person retains ownership of a residence as a result of the proceedings, it does not imply that the person relinquishing ownership is automatically released of the financial liability associated with an existing mortgage debt. The divorce decree along with a release of liability from the mortgage creditor must be presented as evidence that an applicant is no longer legally responsible for the mortgage payment. If no release of liability is granted by the creditor then the applicant remains legally obligated for the debt. Quit claim deeds do not remove liability for mortgage debts.

    DEFERRED INSTALLMENT DEBT
    May not be omitted from debt ratio. If the credit report does not reflect a monthly payment due at the end of the deferment period, the lender may request a copy of the applicant’s payment letter, or utilize the industry standard of estimating student loan payments as 1% of the loan balance.

    NON-REIMBURSED EMPLOYEE EXPENSES
    If the borrower claims any non-reimbursed employee expenses (IRS Form 2106 or 1040 Schedule A), the borrowers monthly income should be reduced by the annualized monthly average.

    BUSINESS DEBT IN BORROWER’S NAME
    When the account in question does not have a history of delinquency, the debt may be excluded with satisfactory evidence the obligation was paid out of company funds (such as 12 months cancelled company checks). If the account in question has a history of delinquency, the full debt obligation must be included in the borrower’s debt ratio.

    FINANCED PROPERTIES
    Additional financed properties are generally not permitted as borrower may not own any other suitable housing at time of closing.

    DEBTS WITH 1×30 within the previous 12 months is not permitted unless approved by GUS. All past due accounts must be current at time of closing.

    COLLECTIONS/ CHARGE OFFS
    · No accounts converted to Collection/Charge off in previous 12 months allowed, unless approved by GUS.

    GUS Approved:

    · Medical Collections/Charge offs are not required to be paid.

    · Other Collections/Charge offs, if >24 months, not required to be paid, otherwise accounts must be paid in full prior to, or at, closing.

    Manual Underwrite:

    · Medical Collections/Charge offs are not required to be paid.

    · Other Collections/Charge offs must be paid in full prior to, or at closing.

    Any unpaid Collections/Charge offs will require a satisfactory letter of explanation from the borrower.

    OUTSTANDING FEDERALLY INSURED OR GUARANTEED DEBT
    Borrower(s) must have an acceptable existing repayment plan (minimum of 12 months), and/or be required to pay account in full prior to, or at closing. Borrower must also be cleared through CAIVRS.

    JUDGMENTS/LIENS
    · Must be paid at, or prior to, closing.

    · Borrower(s) may not have any new Judgments/Liens within the previous 12 months, unless approved by GUS.

    BANKRUPTCY (ALL)
    3 years seasoning required from Discharge or Dismissal date.

    FORECLOSURE
    3 years seasoning required.

    DEED-IN-LIEU OF FORECLOSURE
    3 years seasoning required.

    SHORT SALES
    3 years seasoning required.

    COMMUNITY PROPERTY STATES
    Debts of the non-borrowing spouse must be included in debt ratios. Borrower Authorization and Credit Report is required on all non-borrowing spouses in community property states.

    Community Property States served by Platinum Mortgage:

    · Louisiana and Texas

    COMPENSATING FACTORS
    Some compensating factors include:

    · Conservative use of credit

    · Minimal increase in borrower’s housing expense

    · Substantial cash reserves after closing

    · Credit score >660

    · Low total debt ratio (does not compensate for high housing ratio)

    MULTIPLE RISK LAYERING
    Multiple risk layering is not allowed on manually underwritten loans:

    · Payment Shock (>100%)

    · Ratio Waiver

    · Credit Waiver

    · Credit Score <660

    · Short Duration of Employment (less than 12 months employment with current employer)

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