Kentucky USDA Rural Housing Loans Credit Requirements for a Loan in 2014

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Credit Scores:

If you have a credit score below 640 you will probably get referred for a manual underwrite which means the income and credit requirements are much tougher for scores below 640. We can do scores down to 620 but usually it is best to try and raise your score to 640 so we can get an automated approval thru GUS.

If GUS returns an refer/eligible, then we can consider doing a manul underwrite on your loan approval. This usually entails a verifiable rent history over the last 12 months with no lates, and the debt to income ratios are usually tied to the industry old standard of 29% and 41% respectively.

If GUS returns an ineligible status, then your loan is automatically denied and there is no chance of getting approved when this result shows.

Collections:

If you have any delinquent back taxes, student loans they would need to be paid or brought current so you don’t have any liens to the government.

Delinquent Government Debt (back taxes, student loans

Medical bills are usually okay if they are not showing as a garnishment against you or on the title search.

Large unpaid utility bills, credit card charge offs, and car repos will usually have to be paid before closing. You will have to show you have funds to pay these off before closing.

Foreclosure:

You have to be 3 years removed from a foreclosure to qualify for a Kentucky RHS loan.

Bankruptcy:

  • Chapter 7 Bankruptices require a 3 year wait after the bankruptcy was discharged.
  • Chapter 13 bankruptices only require 1 year wait after discharge. 
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Joel Lobb
Senior  Loan Officer

(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

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