- Annual Qualifying Income – The requirement for calculations to be included on the Income Calculation worksheet have been removed and should now be included on Attachment 9-B, the underwriter transmittal summary, FNMA form 1008/Freddie form 1077, or equivalent
- 4506-T – The requirement for asset statements to be reviewed to ensure borrowers have no additional income sources has been removed.
- Repayment Income – MCC income must now be included in repayment income.
- Boarder Income – USDA now considers a boarder as a household member and a boarder’s income must now be included in annual income calculation. Rent paid by boarders that is reported on tax returns must also be included in annual income.
- Capital Gains – USDA removed requirement from Repayment Income to provide evidence showing borrowers own additional property or assets that may be sold if additional income is needed to support the mortgage obligation
- Commission – The borrower must now show one year history in same or similar line of work to include commission in repayment income.
- Fellowship, Stipend, Scholarship – Scholarship award letters must now provide date of termination and USDA will no longer presume benefits with no expiration date will continue. USDA also added guidelines for GI Bill income and stated it cannot be included in annual or repayment income.
- MCC – This income must now be included in repayment income, but no history is required. A copy of the W-4 from employer is required to verify borrower is taking tax credit on monthly basis. Note: MCC’s are ineligible with FWL as qualifying income.
- Unreimbursed Business Income – only taxable income is allowed to be included in repayment income
- Section 8 – USDA removed requirement for section 8 income to be deducted from the monthly PITI to determine DTI if it is paid directly to the loan servicer when included in the repayment income.
- Self Employed Income – Federal tax returns must now be reviewed to determine gross income for annual calculations. Removed requirement to deduct business loss before entering as repayment income into GUS or on loan application. Clarified documentation requirements as most recent 2 years of federal tax returns / transcripts & YTD P&L may be audited or unaudited
- Social Security Income – clarified documentation options and will allow social security benefit statement or form SSA-1099/1042S to source
- Temporary Leave – The history requirements for repayment income has been changed and now income must be received by loan closing.
- Cash on Hand – The underwriter must review the reasonableness of accumulation based upon income stream, spending habits, etc. and cash on hand can no longer be included in reserves
- Gift Funds – Clarification provided on how gift funds must be sourced when gift funds have been deposited into borrower’s account, not deposited into borrower’s account, or if funds are being wired directly to the settlement agent.
- Large Deposits – USDA no longer addresses lump sum additions.
Category: 100% Financing Zero Down
Kentucky Rural Housing Loan Program Update for 2021 Single Family Housing USDA Guaranteed Loan
Kentucky Rural Housing Loan Program Update for 2021 Single Family Housing USDA Guaranteed Loan
Rural Housing Requirements For USDA Loans In Kentucky
Kentucky Rural Housing Loans
Kentucky USDA loans are mortgages made by lenders and guaranteed by the U.S. Department of Agriculture. They are available to moderate- and low-income borrowers to build, rehabilitate, improve or relocate a primary residence in eligible rural and suburban areas. The income limit is 115 percent of the median income in your area. You can check the income limits for your area here.
It can be closed with zero down. USDA loans do have a monthly insurance requirement, but the upfront fee is significantly lower than on the VA loan and the mortgage premiums are lower than on the FHA loan.
The problem is that the number of buyers who qualify for a USDA loan is much smaller. Unlike on other loans where more income is better, a USDA loan has strict income maximums.
Fees for Kentucky USDA Loans
USDA loan borrowers pay an upfront fee of 1 percent of the loan amount, and this fee can be added to the loan balance. Borrowers also pay a mortgage insurance premium of 0.35 percent of the loan balance per year in 12 equal installments. This fee is based on the current balance and added to the monthly payment.
Down Payment Requirements for Kentucky USDA Loans
USDA loans are available with up to 100 percent financing (zero down).
Credit Score Required for Kentucky Rural Housing Loans
There is no minimum credit score for a USDA loan, but you are automatically ineligible if you are presently delinquent on a nontax federal debt.
Automated approval is available if you have two tradelines reported on your credit history and acredit score of 640 or higher.
If you do not have sufficient credit data, the underwriter can assess your creditworthiness other ways, such as by examining your history with rent payments. Applicants with a credit score lower than 640 will undergo additional underwriting steps.
Loan Limits for Kentucky USDA Loans
They are no loan limits for Kentucky USDA loans backed-up the guarantee loan program. The Direct USDA loan program does have loan limits.
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Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
Text/call 502-905-3708
kentuckyloan@gmail.com
What are Kentucky USDA Home Loans? Do I Qualify?
What are Kentucky USDA Home Loans? Do I Qualify? Deciding between rural and suburban is one of many choices you’ll make along your homeownership journey. And if the countryside is your preference, then you may want to consider applying for a USDA loan. You’…
Source: What are USDA Home Loans? Do I Qualify? – Cape Gazette
USDA Home Loan in Kentucky Compared to FHA loans in Kentucky.
Why use USDA financing for your next home purchase in Kentucky?
There are very few ways to purchase a home these days in Kentucky without a typical 3.5% down payment that is required for an FHA loans in Kentucky. Many home buyers in Kentucky are surprised to find that a USDA Home Loan offers a lower payment than an FHA loan, even with NO DOWN PAYMENT! “How can this be?” you ask. The reason is because a Kentucky USDA home loan requires much lower MORTGAGE INSURANCE.
Kentucky FHA Loan vs. Kentucky USDA Loan Comparison
FHA | USDA |
$150,000 purchase price | $150,000 purchase price |
4.75% 30 year fixed rate | 4.75% fixed rate |
1.75% up front mortgage insurance (financed) | 1.0% Guarantee Fee (financed) |
.85% month mi premium | .35% monthly mi premium |
$871.19 P&I monthly payment with monthly mortgage insurance (not including taxes and insurance) |
$826.86 P&I monthly payment (not including taxes and insurance |
$5250.00 required down payment | $0 down payment |
A rural housing USDA loan saved this client $46.74 per month and they made NO DOWN PAYMENT!
Other benefits of Kentucky USDA Home Loans
- Low up front closing costs
- In some cases closing costs can be financed if home appraises for more than purchase price
- Minor credit problems OK with a minimum credit score of 581***Most lenders will want a 620 or 640 score or higher.
- No maximum loan amounts just household income limits based on which Kentucky County you are buying a home.
- Fixed Rates Only for 30 years with no prepay penalty
A Kentucky USDA rural housing loan strive to find anyway possible to approve your loan, however there are some cases where a USDA Loan is not an option;
a previous bankruptcy must be discharged 3 years,
you must occupy the home being purchased as your primary residence,
the home may not be used for income producing purposes (farm, rental, etc.),
Senior Loan Officer
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
Kentucky Rural Housing Development Mortgage Guide for 2021 USDA Loans
2021 Kentucky Rural Development Mortgage Guide
- 30 year fixed rate only for Purchases and Existing USDA loans Refinances.
- Zero down Mortgage loan with no loan limits!
- Upfront funding fee is 1.0% and annual mi fee is .35% (very low compared to FHA)
- Typically cannot own other real estate. There are exceptions to this.
- You do not have to be a first-time home buyer in Kentucky
- Can refinance existing USDA loan as long as lowering rate by 1% and can do without an appraisal. There are overlays to this by lenders.
- Closing costs and prepaids can be paid by seller but must be put into contract
- Closing costs may be financed into the loan up to the appraised value.
- You will need two credit trade lines reporting at least for 12 months on your credit file. They don’t have to be open and active. Just reporting on your credit report.
- All Guaranteed Mortgage Loans are ran through GUS. GUS stands for the Guaranteed Underwriting System. USDA and their underwriters use this system to pre-approve you. They review credit score/history, income, debt to income ratio and assets to determine your loan eligibility. If your credit score is below 640 or your debt to income ratio is over 45%, it will get a refer and you will find most lenders will not approve the loan.
- Some lenders will do a credit score down to 600, but they will want a lot of documentation to overturn the refer and compensating factors for the lower credit score. They typically will need to verify rent for last 12 months, with no lates, cash payments are not acceptable, and debt to income ratios are set at 29% and 41% respectively. Reserves are typically helpful too on lower credit scores, so keep in that in mind, if you have money in a savings account, for a rainy day fund, this will help sometimes get the loan approved.
- If you have access to 20% down payment you cannot use the USDA Program. Money in a retirement account does not account toward the 20% rule.
- Properties must be located in an eligible area of Kentucky. Typically the large metro areas of Kentucky including the following: all of Jefferson County, all of Fayette County, Owensboro, Paducah, Hopkinsville, Bowling Green, Richmond, Frankfort and Northern KY cities of Covington, Florence, Erlanger, Beechwood, Richwood are not eligible
USDA Eligible Areas In Northern Kentucky for Boone, Kenton, Campbell, Grant Counties
- Independence
- Burlington
- Hebron
- Highland Heights
- Walton
- Alexandria
- Cold Springs
- All Of Grant County, Pendleton County And Owen County
Search for Kentucky USDA Eligible Properties
A property must be located in an eligible area in order to use a USDA loan to purchase a home. Contrary to belief, Rural Development loans are not only for farms or very rural homes.
Actually, a property with an operating and income producing farm is not eligible for these loans!
2021 Kentucky USDA Rural Max Income Limits:
- New Income limits for most counties (*) in Kentucky are $90,200 for a 4 unit household and household families of five or more + can make up to $119,200.
- The Northern Kentucky Counties (***) of Boon, Kenton, Campbell, Bracken, Gallatin, and Pendleton are $99,500 for a household of four or less and up to $129,400 for a family of five or more.
- With the new changes for 2019 USDA Income limits, the Jefferson County Louisville, KY Metro area (**) saw an increase of $90,200 for a family of four and up to $119,100 for a family of five or more. The metro area includes Oldham, Bullitt, Spencer, Hardin, Larue and Meade are including in these higher income limits for USDA loans.Remember, Jefferson County Kentucky, Fayette County Kentucky are not eligible for USDA loans.,Below is the website where you can check and make sure
Some More Facts about a Kentucky USDA loan:
It’s a two step approval process. The chosen USDA lender must first underwrite the file and get it approved based on the income, assets, and credit report submitted. Then, the lenders must submit to USDA for a “conditional commitment”. This conditional commitment is the final loan approval paperwork you are looking for.
Even though the lender may have approved the file, it still must go to USDA office in Lexington for an assignment to SFH underwriter for the final approval process. They typically are checking the appraisal and income at this stage. There have been instances where the lender would approve the file but USDA would not due to appraisal issues or income and job history.
This is very rare instances, so keep that in mind when it comes to final loan approval.
This two-step approval process usually adds 4-6 days to the final loan approval process, so keep that in mind when you are writing up your contract because it takes a little longer to close these loans vs FHA, VA, and Fannie Mae loans.
Well Test Treatments: Properties with a well as the primary drinking source will require a well water test. There are local labs to perform this test and the water must pass.
Septic Test: Sometimes they will require the septic tank to be inspected if called for in the appraisal report or home inspection.
Older Homes: As a general rule, USDA does not like homes older than 100 years old. They will sometimes require a home inspection in addition to the mandatory appraisal on older homes.
USDA Loan After a Short Sale: A short sale is not the end of the world. So it is very possible to obtain a USDA loan if 3 years have passed after the short sale. But a buyer would need re-established good rent and other credit history.
Bankruptcy and Foreclosure: If the mortgage debt that was foreclosed, was included in a Bankruptcy – then the USDA Home Loan waiting periods after foreclosure “waiting period” of 3 years, starts from the date of the discharge of the Bankruptcy. Because it can take 6 months or more for Banks to process the Foreclosure, and transfer title, this is a tremendous plus.
- Fixed Payment Loans: A permanent amortized, fixed payment may be used when it can be documented that the payment is fixed, the interest rate is fixed, and the repayment term is fixed.
- Non-Fixed Payment Loans (i.e. deferred, income based, graduated, adjustable, etc.): The payment should be calculated as the greater of 0.5% of the loan balance or the actual payment reflected on the credit report. No additional documentation is required.
Kentucky USDA Rural Development Loans
Frequently Asked Questions
Are only first-time homebuyers eligible?
No, you do not have to be a first time home buyer. The USDA Loan program has no restrictions that prevent previous homeowners from using the program.
What is the maximum amount that I can borrow?
There isn’t a limit to the amount a homeowner can borrow
How much are the closing costs for a USDA mortgage?
Closing costs vary from lender to lender and state to state. The charges from the USDA are a Guarantee fee of 1% of the loan amount. Additionally, there is a monthly mortgage insurance factor of .35% of the principal balance.
Can closing costs be financed into a USDA Loan?
Yes! The USDA home loan has the ability to finance closing costs up to the appraised value or to get a 6% seller contribution to closing costs from sellers on the contract.
What are USDA eligibility requirements?
USDA requires that the borrower demonstrates a reasonable ability and willingness to repay the mortgage loan. USDA lenders will view your credit history, income, and assets to verify your ability to repay the mortgage.
What is the USDA’s minimum credit requirement?
The USDA has no minimum score required; however, most lenders require a minimum credit score of 640 or sometimes 620 to obtain financing. Exceptions can be made and you should talk to a loan specialist about this.
Can you qualify for a USDA loan if your credit score is below 640?
Many lenders do require a 640 minimum Fico score to be eligible for a USDA home loan, however, exceptions can be made. It is important to note that the derogatory credit is temporary in nature, beyond the applicant’s control, and the circumstances that caused the adverse credit are no longer a factor.
What does the USDA require for employment eligibility?
You must have established employment to be eligible for a USDA Loan. Almost all lenders will require a minimum of two years of steady employment or schooling prior to your current employment if less than 2 years. If you are self-employed, you are eligible but will be required to provide two years of federal tax returns to verify your income.
Do USDA home loans have PMI?
USDA mortgages do have a guarantee fee and monthly PMI. The rate for the mortgage insurance is .35% of the outstanding principal balance and the current guarantee fee is 1% of loan amount. For example, if you borrowed a full $150,000 from your lender, the guarantee fee would be $1,500, which you can finance into your mortgage. The monthly PMI would be about 44.00 dollars a month on a 151,500 loan amount. (which includes the guarantee fee of 1%)
Can I get a USDA Mortgage after bankruptcy?
Yes, the USDA Loan Program requires the bankruptcy to be discharged for at least 3 years for a CH 7 and at least 12 months of on time payments on a CH 13. You can be in a CH 13 currently as long as 12 months of on-time payments have been made and verified.
How soon can you qualify for a mortgage after foreclosure?
VA Loans: 2 years after foreclosure
USDA Loans: 3 years after foreclosure (Exceptions are possible!)
FHA Loans: 3 years after foreclosure
Conventional Loans (Fannie Mae and Freddie Mac): 7 years after foreclosure
Can I use a USDA Loan on investment property or Second Home?
No, the USDA Rural Housing Program is for primary residences only. Furthermore, any property that is income producing (farms, multi-family, over 30 acres, etc.) cannot qualify for the 502 Guaranteed Rural Home Loan.
Can a USDA loan finance a condominium?
Yes, you can use a USDA loan to finance a condo; however, there are requirements that will need to be met.
Does a USDA home loan finance modular or manufactured homes?
Modular and manufactured homes can be considered a USDA eligible property, but additional appraisal requirements will apply. Most lenders do not offer Section 502 USDA loans on manufactured homes; however, they do finance modular homes. The difference between a modular and manufactured is how and where the home is constructed. A manufactured home is already fully built and put on a foundation and modular homes are built in pieces, and then taken to the site to be constructed.
How fast can you close a USDA loan?
USDA loans have a 2 prong process. The loan is first approved by the lender and then sent to the local USDA field office to be insured. Depending on the turn-times at the local USDA office, closing can be as fast as 20 days or up to 60 days.
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Senior Loan Officer
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
Manufactured Home Guidelines for Kentucky USDA Rural Housing Loans
No Money Down for Manufactured Home Rural Buyers in Kentucky Using the USDA Rural Housing loan Program
- The unit must be property installed on a permanent foundation according to HUD standards and the manufacturer’s requirements for installation on a permanent foundation.
- A certification of property foundation is required.
- A new construction manufactured home is not allowed.
- The unit and site are already financed with an Agency direct single family or guaranteed loan.
- The unit and site are being sold by Rural Development as REO property.
- The unit and site are being sold from the lender’s inventory and the loan for which the unit and site served as security was a loan guaranteed by Rural Development.
- The unit was installed on its initial installation site on a permanent foundation complying with the manufacturer’s and HUD’s installation standards.
- A loan will not be guaranteed for the purchase of an existing manufactured home that has been moved from another site.
- The land must be fee simple.
- The Manufactured Home must be a one-unit dwelling legally classified as real property.
- The towing hitch, wheels, and axles must be removed.
- The Manufactured Home must have at least 400 square footage, room dimension to be acceptable to purchasers in the subject market area.
- The Manufactured Home must have been built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976 as well as additional requirements that appear in HUD regulation at 24 C.F.R Part 3280 evidenced by:
- HUD Data Plates/Compliance Certificate
- HUD Certification Label
- The appraisal form 1004c must indicate evidence of the HUD Data Plate/Compliance Cert and the HUD Certification Label.
- The Manufactured Home must be attached to a permanent foundation system.
- Engineers Certificate for foundation system is required.
- The Manufactured Home must be permanently connected to all necessary utilities.
- The property must not be located in a flood zone.
- Endorsement ALTA 7,7.1 or 7.2 is required.
- Confirm property is legally classified as real property. Any certificate of title to the manufactured home must be surrendered to the appropriate state government authority.
- Owner of the Manufactured Home must also own the land on which the home is situated
- A mortgage/deed of trust must:
- Be recorded in the land records
- Must identify the encumbered property as including both the home and the land
- Must also include the VIN, Serial numbers from the HUD Data Plate of the manufactured home along with the description of the land.
- Appraisal must be completed using the Manufactured Home Appraisal Report Form 1004C.
- Appraiser must use a minimum of three comparable sales of similar manufactured home.
- A detailed and supported cost approach to value is required on all Manufactured Home appraisals.
- The following are ineligible:
- If the site or manufacture home is substantially non-conforming with the neighborhood, it is ineligible.
- Creating comparable sales by combining vacant land sales with the contract purchase price of the home is prohibited.
Your properties subscription for USDA Single Family Housing is kentuckyloan@gmail.com as of 10/24/2017 |
State | Days Old | Counties |
KY | 365 | ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD |
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Address | Bed/Bath | Price | |
117 Dove Drive | 3/1 | $34,840.00 – GovtBid | |
Lawrenceburg, KY 40342 | Foreclosure Sale | ||
301 Eastview Circle | 2/1 | $51,135.00 – GovtBid | |
Shelbyville, KY 40065 | Foreclosure Sale | ||
1006 Twelve Oaks Dr | 3/2 | $67,000.00 – GovtBid | |
Lawrenceburg, KY 40342 | Foreclosure Sale | ||
117 Western Ave | 3/2 | $26,800.00 – GovtBid | |
Cynthiana, KY 41031 | Foreclosure Sale | ||
427 Earl St. | 3/1.5 | $30,150.00 – GovtBid | |
Danville, KY 40422 | Foreclosure Sale | ||
200 Verde Dr. | 3/2 | $36,850.00 – GovtBid | |
Padacah, KY 42003 | Foreclosure Sale | ||
136 Fuller Way | 3/1 | $28,810.00 – GovtBid | |
Mount Sterling, KY 40353 | Foreclosure Sale | ||
139 Pearl Street | 2/1.5 | $30,820.00 – GovtBid | |
London, KY 40741 | Foreclosure Sale | ||
609 Ridgeview Drive | 3/2 | $46,230.00 – GovtBid | |
London, KY 40741 | Foreclosure Sale | ||
261 Bridlewood Ave | 3/2 | $114,330.00 – GovtBid | |
Shelbyville, KY 400657222 | Foreclosure Sale | ||
265 Meadowbrook Rd. | 2/1 | $13,400.00 – GovtBid | |
Vanceburg, KY 41179 | Foreclosure Sale | ||
50 Crabtree Rd | 3/2 | $43,515.00 – GovtBid | |
Strunk, KY 42649 | Foreclosure Sale | ||
412 Chestnut St. | 3/1 | $12,060.00 – GovtBid | |
Vanceburg, KY 41179 | Foreclosure Sale | ||
508 Hickory Hill Drive | 3/1 | $13,400.00 – GovtBid | |
Monticello, KY 42633 | Foreclosure Sale | ||
105 Woodland Place | 3/1.5 | $18,090.00 – GovtBid | |
Mt Vernon, KY 40456 | Foreclosure Sale | ||
502 N. Main St. | 2/1.5 | $25,795.00 – GovtBid | |
Brownsville, KY 42210 | Foreclosure Sale | ||
66 Craycraft Rd | 2/1 | $47,280.00 – GovtBid | |
Tollesboro, KY 41189 | Foreclosure Sale | ||
328 E. Legend Dr | 3/2 | $40,200.00 – GovtBid | |
Mount Sterling, KY 40353 | Foreclosure Sale | ||
90 Brewer Subdivision | 3/1 | $21,440.00 – GovtBid | |
Campton, KY 41301 | Foreclosure Sale | ||
RR 746 Box 5230 | 3/1.5 | $16,750.00 – GovtBid | |
Campton, KY 41301 | Foreclosure Sale | ||
234 Gardner Lane | 3/1 | $25,460.00 – GovtBid | |
Mt Sterling, KY 40353 | Foreclosure Sale | ||
221 Man O War Dr | 3/2 | $103,525.00 – GovtBid | |
Lawrenceburg, KY 40342 | Foreclosure Sale | ||
111 Beechmount Drive | 3/1 | $54,885.00 – GovtBid | |
Nicholasville, KY 40356 | Foreclosure Sale | ||
5915 Woodcreek Crossing W | 3/2 | $46,900.00 – GovtBid | |
Crestwood, KY 400148229 | Foreclosure Sale | ||
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Senior Loan Officer
Text/call 502-905-3708
kentuckyloan@gmail.com
Kentucky USDA Rural Housing Service (RHS) Section 502 Guaranteed program
Here are a few reminders about the Kentucky USDA Rural Housing Service (RHS) Section 502 Guaranteed program which provides very-low-, low- and moderate-income rural residents access to affordable housing finance options with little or no down payment or out-of-pocket costs.
• Eligibility Link – Access the USDA Home page, click here.
• Income – To determine eligibility of an applicant/household, click here.
• Property Eligibility – To determine whether the property is located in a designated rural area, click here.s
30 year fixed rate loan terms only, Purchase or refinance, If refinancing must be existing USDA home loan. No cash out allowed.
• Occupancy – Owner occupied only.
• Maximum Loan Amount-No max loan amount
• Max DTI – GUS approved, generally 45% (front end sensitive)/ Manual 29/41.
• Guaranty Fee/Annual Fee – there is a 1.00%/ 0.35% (monthly).
• Down Payment – Down payment not required but if any cash to close, must be borrowers own funds. Gifts are not allowed.
• Interested Third Party Contributions – An amount of 6% of the sales price can be contributed towards closing costs.
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If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.
Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.
CREDIT SCORES UNDERWRITING USDA MORTGAGE FOR RURAL HOUSING
This attachment illustrates the approach to reviewing credit history when a loan is
manually underwritten by an approved lender.
Credit score over 680: Perform a basic level of underwriting to confirm the
applicant has an acceptable credit reputation. Perform additional analysis if the
applicant’s credit history has indicators of unacceptable credit as noted in Paragraph 10.7 of this Chapter.
Credit score 679 to 640: Perform a comprehensive level of underwriting.
Underwrite all aspects of the applicant’s credit history to establish the applicant has an
acceptable credit reputation. Credit scores in this range indicate the applicant’s
reputation is uncertain and will require a thorough analysis by the underwriter of the
credit to draw a logical conclusion about the applicant’s commitment to making
payments on the new mortgage obligation. The applicant’s credit history should
demonstrate his or her past willingness and ability to meet credit obligations.
Credit score less than 640: Perform a cautious level of underwriting. Perform a
detailed review of all aspects of the applicant’s credit history to establish the applicant’s
willingness to repay and ability to manage obligations as agreed. Unless there are
extenuating circumstances documented in accordance with this Chapter, a credit score in this range is generally viewed as a strong indication that the applicant does not have an acceptable credit reputation.
Little or no credit history: The lack of credit history on the credit report may be
mitigated if the applicant can document a willingness to pay recurring debts through
other acceptable means such as third party verifications or cancelled checks. Due to
impartiality issues, third party verifications from relatives of household members are not
permissible. Lenders can develop a Non-Traditional Credit Report for applicants who
do not have a credit score in accordance with Paragraph 10.6 of this Chapter.
An applicant with an outstanding judgment obtained by the United States in a
Federal court, other than the United States Tax Court, is not eligible for a guarantee
unless otherwise stated in this Chapter.They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.
See link here for more detailed guidelines for credit score, disputed accounts, foreclosures, trade line requirements bankruptcies below:
https://www.rd.usda.gov/files/3555-1chapter10.pdf
Indicators of unacceptable credit. The following indicators require documentation
meeting the criteria of Section 10.8 to approve an applicant’s loan request for manually
underwritten loans:
Foreclosure and Bankruptcy Guidelines
Foreclosure within 3 years:
Including pre-foreclosure activity, such as a pre-foreclosure sale or short sale
in the previous 3 years (refer to Attachment 10-B for additional guidance);
Bankruptcy within 3 years:
Chapter 7 bankruptcy discharged in the previous 3 years;
An elapsed period of less than 3 years, but not less than 12 months, may
be acceptable if the applicant meets the criteria of Section 10.8 of this
Chapter.
Chapter 13 bankruptcy that has yet to complete repayment (repayment plan in
progress) or has completed payment in the most recent 12 months.
Plans that are completed for 12 months or greater do not require a credit
exception in accordance with Section 10.8;
Late mortgage payments if any mortgage trade line during the most recent 12
months shows 1 or more late payments of greater than 30 days
Collections Accounts
.
In an effort to minimize future risk of open collections left unpaid, the lender will
consider the following during the capacity analysis of the loan request, regardless of the
method utilized to underwrite:
1) Determine if the total outstanding balance of all collections accounts of all
applicants is equal to or greater than $2,000. Unless excluded by state law,
collection accounts of a non-purchasing spouse in a community property state are
included in the cumulative balance of all collections.
2) Remove all medical collections and all types of charge off accounts from the total
balance. Medical collections and charge off accounts must be clearly identifiable
on the credit report.
3) If the remaining outstanding balance of collection accounts are equal to or greater
than $2,000, any of the following actions will apply:
a. Payment in full of all collection accounts at or prior to closing.
b. Payment arrangements are made with each creditor for each collection
account remaining outstanding. A letter from the creditor or evidence on
the credit report is required to validate the payment arrangements. The
agreed upon monthly payment for each outstanding collection account
will be included in the borrower’s debt-to-income ratio.
c. In the absence of a payment arrangement, the lender will utilize in the
debt-to-income ratio a calculated monthly payment. For each collection
utilize 5% of the outstanding balance to represent the monthly payment.
They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in a rural area.
A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern Kentucky.
There is also a max household income limits with most cutoff starting at $87,000 for a family of four, and up to $115,000 for a family of five or more.
Kentucky FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans.
Senior Loan Officer
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
KY USDA Single Family Housing Homes for Sale in 2017 Currently.
Your properties subscription for USDA Single Family Housing is kentuckyloan@gmail.com as of 10/24/2017 |
State | Days Old | Counties |
KY | 365 | ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD |
To change your preferences, click here. |
Address | Bed/Bath | Price | |
117 Dove Drive | 3/1 | $34,840.00 – GovtBid | |
Lawrenceburg, KY 40342 | Foreclosure Sale | ||
301 Eastview Circle | 2/1 | $51,135.00 – GovtBid | |
Shelbyville, KY 40065 | Foreclosure Sale | ||
1006 Twelve Oaks Dr | 3/2 | $67,000.00 – GovtBid | |
Lawrenceburg, KY 40342 | Foreclosure Sale | ||
117 Western Ave | 3/2 | $26,800.00 – GovtBid | |
Cynthiana, KY 41031 | Foreclosure Sale | ||
427 Earl St. | 3/1.5 | $30,150.00 – GovtBid | |
Danville, KY 40422 | Foreclosure Sale | ||
200 Verde Dr. | 3/2 | $36,850.00 – GovtBid | |
Padacah, KY 42003 | Foreclosure Sale | ||
136 Fuller Way | 3/1 | $28,810.00 – GovtBid | |
Mount Sterling, KY 40353 | Foreclosure Sale | ||
139 Pearl Street | 2/1.5 | $30,820.00 – GovtBid | |
London, KY 40741 | Foreclosure Sale | ||
609 Ridgeview Drive | 3/2 | $46,230.00 – GovtBid | |
London, KY 40741 | Foreclosure Sale | ||
261 Bridlewood Ave | 3/2 | $114,330.00 – GovtBid | |
Shelbyville, KY 400657222 | Foreclosure Sale | ||
265 Meadowbrook Rd. | 2/1 | $13,400.00 – GovtBid | |
Vanceburg, KY 41179 | Foreclosure Sale | ||
50 Crabtree Rd | 3/2 | $43,515.00 – GovtBid | |
Strunk, KY 42649 | Foreclosure Sale | ||
412 Chestnut St. | 3/1 | $12,060.00 – GovtBid | |
Vanceburg, KY 41179 | Foreclosure Sale | ||
508 Hickory Hill Drive | 3/1 | $13,400.00 – GovtBid | |
Monticello, KY 42633 | Foreclosure Sale | ||
105 Woodland Place | 3/1.5 | $18,090.00 – GovtBid | |
Mt Vernon, KY 40456 | Foreclosure Sale | ||
502 N. Main St. | 2/1.5 | $25,795.00 – GovtBid | |
Brownsville, KY 42210 | Foreclosure Sale | ||
66 Craycraft Rd | 2/1 | $47,280.00 – GovtBid | |
Tollesboro, KY 41189 | Foreclosure Sale | ||
328 E. Legend Dr | 3/2 | $40,200.00 – GovtBid | |
Mount Sterling, KY 40353 | Foreclosure Sale | ||
90 Brewer Subdivision | 3/1 | $21,440.00 – GovtBid | |
Campton, KY 41301 | Foreclosure Sale | ||
RR 746 Box 5230 | 3/1.5 | $16,750.00 – GovtBid | |
Campton, KY 41301 | Foreclosure Sale | ||
234 Gardner Lane | 3/1 | $25,460.00 – GovtBid | |
Mt Sterling, KY 40353 | Foreclosure Sale | ||
221 Man O War Dr | 3/2 | $103,525.00 – GovtBid | |
Lawrenceburg, KY 40342 | Foreclosure Sale | ||
111 Beechmount Drive | 3/1 | $54,885.00 – GovtBid | |
Nicholasville, KY 40356 | Foreclosure Sale | ||
5915 Woodcreek Crossing W | 3/2 | $46,900.00 – GovtBid | |
Crestwood, KY 400148229 | Foreclosure Sale | ||
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Your properties subscription for USDA Single Family Housing is kentuckyloan@gmail.com as of 07/09/2017 |
State | Days Old | Counties |
KY | 365 | ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD |
To change your preferences, click here. |
Address | Bed/Bath | Price | |
245 Miller Lane | 3/2 | $34,170.00 – GovtBid | |
London, KY 40741 | Foreclosure Sale | ||
6080 Franklintown Road | 3/1 | $22,780.00 – GovtBid | |
Pleasureville, KY 40057 | Foreclosure Sale | ||
197 Reynolds Hill | 3/1 | $26,800.00 – GovtBid | |
Allen , KY 41601 | Foreclosure Sale | ||
335 Harrisburg Ave | 2/1 | $14,740.00 – GovtBid | |
Owingsville, KY 40360 | Foreclosure Sale | ||
1026 Raceland Ave | 3/1 | $18,760.00 – GovtBid | |
Raceland, KY 41169 | Foreclosure Sale | ||
98 Thompson Ridge Rd | 4/2 | $23,450.00 – GovtBid | |
Germantown, KY 41044 | Foreclosure Sale | ||
12016 Bethlehem Road | 3/1 | $66,585.00 – GovtBid | |
Bethlehem, KY 40007 | Foreclosure Sale | ||
5442 Scenic Vista Dr. | 3/1.5 | $38,190.00 – GovtBid | |
Somerset, KY 425018138 | Foreclosure Sale | ||
25 River Valley Run | 3/2 | $80,550.00 – GovtBid | |
Ghent, KY 41045 | Foreclosure Sale | ||
3175 State Rt.2 | 3/2 | $27,470.00 – GovtBid | |
Greenup, KY 41144 | Foreclosure Sale | ||
1019 Parkside Drive | 2/1 | $33,500.00 – GovtBid | |
Georgetown, KY 40324 | Foreclosure Sale | ||
69 Veterinarian Lane | 2/1 | $77,835.00 – GovtBid | |
West Liberty, KY 41472 | Foreclosure Sale | ||
283 Simmons Lane | 3/2 | $86,200.00 – GovtBid | |
Flemingsburg, KY 41041 | Foreclosure Sale | ||
11 Roe Street | 2/1 | $36,850.00 – GovtBid | |
Walton, KY 41094 | Foreclosure Sale | ||
4837 Elkwood Dr | 3/1.5 | $38,190.00 – GovtBid | |
Burlington, KY 41005 | Foreclosure Sale | ||
3008 Allens Fork Dr | 4/1 | $44,220.00 – GovtBid | |
Burlington, KY 41005 | Foreclosure Sale | ||
5 Terence Dr. | 2/1 | $24,120.00 – GovtBid | |
Williamstown, KY 41097 | Foreclosure Sale | ||
132 OI’ Stable Drive | 3/2 | $45,560.00 – GovtBid | |
Somerset, KY 42503 | Foreclosure Sale | ||
10897 Pleasant Ridge Rd | 3/1 | $21,440.00 – GovtBid | |
Alexandria, KY 41001 | Foreclosure Sale | ||
78 Cedar Brook Way | 3/2 | $48,240.00 – GovtBid | |
Morehead, KY 403517242 | Foreclosure Sale |