What is KY USDA Rural Development Guarantee in Kentucky?

• 100% financing on purchases and 100%  Zero Money Down
• Low 30 year fixed rates on all loans. They don’t offer any other terms or offer cash-out refinancing.
• A small Rural Housing monthly guarantee fee or sometimes called annual fee of .35% of the loan amount divide by 12 months to get total monthly mi payment.
• Upfront Rural Housing funding fee of 1% of the loan amount and is financed into new loan
• Minimum credit scores of 581, but helpful to have 640 and get an automated underwriting approval thru Rural Housing’s underwriting engine – GUS–GUS stands for the Guaranteed Underwriting System to pre-approval all Kentucky USDA loans.
• No rental verification needed with GUS approval if Approved Eligible Findings.
• Flexible trade line requirements with GUS approval with only 1 trade line needed on credit for 12 months
• No foreclosures in the last 36 months, but need explanation if < 36 months
• Bankruptcy discharged at least 36 months

Issues to avoid or be aware of with Rural Housing property search:

• Avoid homes with any income producing activities such as working farms, detached buildings with offices or car lifts for auto repairs, or anything else related to income producing activities.