Category: 502 Guaranteed Loan

Kentucky USDA Streamline Refinance – USDA to USDA Refi


Kentucky USDA Streamline Refinance – USDA to USDA Refi
• Costs can NOT be rolled into loan, but NO appraisal rquired
• 640 Minimum Credit Score
• New Guarantee fee is 2.75%, new Annual MI is .5%
• Full Credit Qualifying – Income and assets must be stated, just as any r/t refinance
• 29/41 ratios, manually underwritten. NO GUS is run.
• Interest rate must be 100 bp lower than loan being refinanced (1 full point)
USDA “Pilot” Streamline Refinance  Kentucky, 
• 640 Minimum Credit Score
• Must have made timely mortgage payments for the 12 months period prior to the refinance
• A Rural Refinance Pilot loan may include the existing principal balance of the loan, accrued (non-delinquent) interest, eligible closing costs & pre-paids, plus the upfront guarantee fee. The applicable upfront refinance guarantee fee is 2.75%.
o Closing costs and pre-paids can also be paid in cash or through premium pricing.
o Discount points cannot be financed.
• The new interest rate must be a fixed rate 100 basis points below the current interest rate.
• The new term of the refinance loan must be 30 years
• An annual fee also applies. For FY 2012 the applicable annual fee is 0.50%
• The home must remain the borrower’s primary residence
• A new appraisal, new credit report, HUD Handbook determination and additional property inspections are not required. The original appraisal amount may be used from Guaranteed Loan System to process the loan.
• Income verification for all adult household members.

MUST MEET CURRENT INCOME ELIGIBILITY REQUIREMENTS.
o Salary Income – VOE – 24 month history plus most recent paystub or 2 pay check stubs covering most recent 30 days and W-2 for previous 2 years.
o Self-employed and commissioned borrowers or employed by a relative – 2 years tax returns required.
o All household income must be included in the total eligibility income, even if not on the loan.
• Ratio calculations are not required. Therefore debt ratio waiver requests will not be necessary.

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

KENTUCKY USDA UP-FRONT GUARANTEE FEE INCREASE


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KENTUCKY USDA UP-FRONT GUARANTEE FEE INCREASE
 
As announced by Rural Development, the upfront Guarantee Fee for purchase and refinance loans will increase as follows for Rural Housing USDA loans in Kentucky:
UPFRONT GUARANTEE FEE
THROUGH 9/30/2015
EFFECTIVE 10/1/15
All Transactions
2.0%
2.75%
The new fee structure is applicable to all Conditional Commitments issued by Rural Development on or after October 1, 2015. Loan guarantee requests submitted to Rural Development (RD) on which a conditional commitment has not been issued by September 30, 2015, will be subject to the new, higher guarantee fee structure.
Kentucky USDA Guaranteed Rural Housing Loans are one of the only “no money down” options available to home buyers today. Kentucky USDA loans aren’t just in the country. Many other areas fall within the USDA Kentucky Rural Housing designated areas, so opportunities may be closer than you think. To view eligible rural areas near you, CLICK HERE to access the USDA lookup tool on their website.
This program is very attractive to low-to-moderate income buyers:
  • Zero percent down
  • CLTV up to 102.04%
  • 6% seller contributions allowed
  • Credit scores as low as 640
  • No reserves required

 

 

 

 

 

 

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

Kentucky USDA Rural Housing Loans Credit Requirements for a Loan in 2014


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Credit Scores:

If you have a credit score below 640 you will probably get referred for a manual underwrite which means the income and credit requirements are much tougher for scores below 640. We can do scores down to 620 but usually it is best to try and raise your score to 640 so we can get an automated approval thru GUS.

If GUS returns an refer/eligible, then we can consider doing a manul underwrite on your loan approval. This usually entails a verifiable rent history over the last 12 months with no lates, and the debt to income ratios are usually tied to the industry old standard of 29% and 41% respectively.

If GUS returns an ineligible status, then your loan is automatically denied and there is no chance of getting approved when this result shows.

Collections:

If you have any delinquent back taxes, student loans they would need to be paid or brought current so you don’t have any liens to the government.

Delinquent Government Debt (back taxes, student loans

Medical bills are usually okay if they are not showing as a garnishment against you or on the title search.

Large unpaid utility bills, credit card charge offs, and car repos will usually have to be paid before closing. You will have to show you have funds to pay these off before closing.

Foreclosure:

You have to be 3 years removed from a foreclosure to qualify for a Kentucky RHS loan.

Bankruptcy:

  • Chapter 7 Bankruptices require a 3 year wait after the bankruptcy was discharged.
  • Chapter 13 bankruptices only require 1 year wait after discharge. 
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Joel Lobb
Senior  Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

RHS increase in Annual Fee for Kentuky Rural Development Loans October 1, 2014


RHS Increase in Annual Fee for Rural Housing Mortgage Loans in Kentucky
RHS Increase in Annual Fee
Kentucky USDA Mortgage Lenders must underwrite the loan using an annual fee of .5 percent and resubmit the application to RD in GUS after October 1, 2014

On Wednesday, October 1, 2014, the annual fee for both purchase and refinance loans will increase from .4 percent to .5 percent. The Guaranteed Underwriting System (GUS) has been updated to allow lenders to select and underwrite at either the .4 percent or .5 percent annual fee structure. Lenders should communicate with Rural Development (RD) offices to understand current processing time-frames.

GUS “Final Submissions” with an annual fee of .4 percent, that areissued a conditional commitment by RD prior to the close of business on Tuesday, September 30, 2014, will not be affected by the annual fee change. Those submissions that are not issued a conditional commitment by RD prior to the close of business on Tuesday, September 30, will be affected by the annual fee change.

Lenders must underwrite the loan using an annual fee of .5 percent and resubmit the application to RD in GUS.

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

Kentucky Rural Housing Mortgage Loans Require No Money Down


Kentucky Rural Housing Mortgage Loans Require No Money Down.

via Kentucky Rural Housing Mortgage Loans Require No Money Down.