Kentucky USDA Rural Housing Credit Report Requirements Update 2016

Kentucky USDA Rural Housing Credit Report Requirements Update 2016

February 12, 2016

KY USDA Rural Housing Credit Report Update 2016

Effective immediately, an applicant’s credit score may be validated with at least two eligible trade lines instead of three trade lines as previously required.  Such trade lines consist of credit accounts (revolving, installment, etc.) with at least twelve months of repayment history reported on the credit report.  Corresponding revisions to the 3555 Handbook will be posted on the USDA Rural Development’s Regulation and Guidance website on March 9, 2016.

At least one applicant whose income or assets are used for qualification must have a valid credit report score or have at least two historical trade line references that have existed for at least 12 months to establish a credit reputation.

For applicants without an established credit history and unable to establish the required number of eligible trade lines to validate the credit score, alternative methods may be used to evidence an applicant’s willingness to pay, such as a non-traditional mortgage credit report or multiple independent verifications of trade references per 7 CFR 3555, Section 3555.151 (i)(6).

Non-traditional credit may not be used to enhance poor payment records or low credit scores. GUS applications receiving an “Accept” underwriting recommendation, but which fail to meet the credit score validation test using a traditional credit report, must be downgraded to a “Refer” by the lender.  In these instances the use of a non-traditional credit history will be required in order to proceed.

usda-california-rate-quote (1)
Kentucky Rural Housing Mortgage offer zero down payments and low 30 year fixed rates with lower monthly mortgage insurance requirements than FHA currently
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|

 Company ID #1364 | MB73346

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The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only.  The posted information does not guarantee approval, nor does it comprise full underwriting guidelines.  This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of  my employer. Not all products or services mentioned on this site may fit all people.
, NMLS ID# 57916, (www.nmlsconsumeraccess.org). I lend in the following states: Kentucky
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2 thoughts on “Kentucky USDA Rural Housing Credit Report Requirements Update 2016

  1. Reblogged this on Kentucky First Time Home Buyer Programs for 2016 FHA, VA, KHC, USDA, RHS, Fannie Mae Loans in Kentucky and commented:

    February 12, 2016
    Credit Validation Requirement – Important Update

    Effective immediately, an applicant’s credit score may be validated with at least two eligible trade lines instead of three trade lines as previously required. Such trade lines consist of credit accounts (revolving, installment, etc.) with at least twelve months of repayment history reported on the credit report. Corresponding revisions to the 3555 Handbook will be posted on the USDA Rural Development’s Regulation and Guidance website on March 9, 2016.

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