Kentucky Rural Housing USDA Credit and Income Guidelines for 2018
- No Down Payment required, 100% financing available
- 30 year fixed rate only no other terms allowed.
- Not limited to First Time Home buyers! Also available for the move up home buyer.
- More affordable than FHA when compared to mortgage insurance
- Seller concession fees at 6%
- No Bankruptcies last 3 years or foreclosures last 3 years
- Typical max income household income limits are centered on how many people are going to live in the home and which county you are going to buy a home in. Most Counties in Kentucky are maxed at $80k for a household of four or less, and up to $103k for a household of five or more.
- Debt to income ratios are usually centered around 45% on the backend ratio, meaning the new house payment plus the monthly bills on the credit report cannot be more than 45% of our total grossqualifying income.
- There is also a front end ratio, which is the new house payment only divided by the gross monthly income. This can vary anywhere between 20% to 35% I have seen on some borrowers depending on your credit scores and assets.
- If you have access to 20% down payment, you cannot use the USDA loan program.
- Only new manufactured homes are allowed for USDA loans and the dealer must be approved contractor with USDA
- Swimming pools are okay for USDA loans on appraisals.
- Working farms are not allowed with USDA loan, but there is no acreage limits on
- USDA loans.
|Kentucky Rural Housing USDA Program|
- Guarantee Fee applies. May be financed and added to the loan amount
- Flexible credit guidelines and 620 FICO***Even though USDA states in the guidelines that they will go down to a 580, most lenders will not go below 620 that I work with.
- Manual underwrites, meaning if you get a refer through the Automated system their is chance you can still get approved.
- Ratios per GUS Approval–GUS stands for their Automated Underwriting System which lenders use to get borrowers pre-approved. It will review credit, income, and assets along with area, purchase prince amount and determine your loan pre-approval
- Flipped properties within 90 days of seller acquisition are allowed
- Household income may not exceed 115% of the area’s median income level*
- Transferred appraisals are okay, so FHA will work for USDA appraisals.
|USDA Program Features:|
You might be surprised to find what properties are located in a USDA tract!To find a qualified property, qualified income, and to access the USDA website, click here [eligibility.sc.egov.usda.gov].
This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.
All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364