KENTUCKY USDA RURAL HOUSING PROPERTY STANDARDS FOR THE GUARANTEED HOME LOAN PROGRAM

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eligible Kentucky Map for Kentucky USDA Mortgage Loans for Rural Housing Mortgages in Kentucky
eligible Kentucky Map for Kentucky USDA Mortgage Loans for Rural Housing Mortgages in Kentucky

 

Sites must be modest and developed in accordance with any standards imposed by a State or local government. Therefore, the lender must verify that the following requirements are met at the time of application.

  •  Site size The site size must be typical for the area.  (Some acreage is fine as long as it is normal and the appraisal has comparable sales with similar acreage)

 

  • Income-Producing Buildings. The property must not include buildings designed and to be used principally for income-producing purposes. For example barns, silos, greenhouses, or livestock facilities used primarily for income producing agricultural, farming or commercial enterprise are ineligible. However, barn, silos, livestock facilities or greenhouses no longer in use for a commercial operation, used for storage, and outbuildings such as storage sheds are permitted if they are not used primarily for income producing agricultural, farming or commercial enterprise. A minimal income-producing activity, such as maintaining a garden that generates a small amount of additional income, does not violate this requirement. Home-based operations such as childcare, product sales, or craft production that do not require specific features are not restricted.  A qualified property must be predominantly residential in use, character and appearance.

 

  • Income-Producing Land. The site must not have income-producing land that will be used principally for income producing purposes. Vacant land or properties used primarily for agricultural, farming or commercial enterprise are ineligible. Sites that have income-producing characteristics (e.g. large tracts of arable land ready for planting) are considered income-producing property.  However maintaining a garden for personal use is not in violation of this requirement. A minimal income-producing activity, such as a garden that could generate a small amount of additional income does not violate this requirement. A qualified property must be predominantly residential in use, character and appearance.
  • Site Specifications. The site must be contiguous to and have direct access from a street, road, or driveway. Streets and roads must be hard surfaced or all weather surfaced and legally enforceable arrangements must be in place to ensure that needed maintenance will be provided.
  • Utilities. The site must be supported by adequate utilities and water and wastewater disposal systems.

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Senior  Loan Officer
(NMLS#57916)
 
 Fax:     (502) 327-9119
 
 

 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.

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3 thoughts on “KENTUCKY USDA RURAL HOUSING PROPERTY STANDARDS FOR THE GUARANTEED HOME LOAN PROGRAM

  1. September 20, 2016
    Fiscal Year 2017 Conditional Commitment Notice

    With the start of fiscal year 2017 (FY17) just around the corner, please take a few minutes for a timely review of the Single Family Housing Guaranteed Loan Program (SFHGLP) conditional commitment process. We hope you find this information helpful.

    Issuance of Conditional Commitments: At the beginning of each fiscal year, funding for the SFHGLP is not available for a short period of time – approximately two weeks. This will not change in FY 2017, which starts October 1, 2016. During the temporary lapse of funding, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions.

    The application processing workflow is as follows:
    Rural Development will continue to accept complete SFHGLP applications for purchase and refinance loan transactions from lenders;
    Rural Development will process, approve, and issue Conditional Commitments (Form RD 3555-18) for those applications that are eligible “subject to the availability of commitment authority;”
    An upfront guarantee fee of 1.00 percent and an annual fee of 0.35 percent will apply to both purchase and refinance transactions in FY 2017.
    Lenders may then close loans as scheduled;
    When funds become available, Rural Development will obligate funds for Conditional Commitments issued for loans subject to the availability of commitment authority;
    Once loans are obligated, Rural Development will process lenders’ Loan Note Guarantee requests as soon as the loan closing is verified and all conditions of the Conditional Commitment are satisfied;
    Lenders assume all loss default risk for the loan until Rural Development is able to obligate it and the Loan Note Guarantee is issued.

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