Kentucky USDA Mortgage Lender for Rural Housing Loans
I am a Kentucky based USDA Mortgage Lender that has originated over 200 KY Rural Housing Mortgage Loans in Kentucky, Put my expert advice to use. Kentucky Rural Development RHS loans give KY Rural Homebuyers a zero down mortgage loan with a low 30 year fixed rate loan. A Local Kentucky Rural Housing Mortgage Lender offering same day free approvals and credit report. This website is not affiliated with USDA or any other government agency. NMLS#57916 Equal Housing Lender Text or call today 502-905-3708 with your mortgage questions about USDA Rural Housing Loans in Kentucky. Free Pre-Approvals on most applications within the same day. Kentuckyloan@gmail.com
2013 Credit Requirements for A Kentucky Rural Housing RHS Mortgage Loan | ![]() |
REQUIREMENTS |
1. Equifax Beacon 5.0 2. Transunion FICO Risk Score, Classic 04 3. Experian/Fair Isaac Risk Model V2.
TRADELINE REQUIREMENTS: GUS Approved: Each credit report must contain 2 acceptable tradelines with at least 12 month history and last active within the last 24 months (see below regarding acceptable tradelines). Manual Underwrite: As determined acceptable by the underwriter. |
CREDIT SCORE |
o Middle of 3 o Lower of 2 o If only one score is provided, that score is the qualifying credit score for that borrower. Minimum credit score for:
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LIABILITIES & CREDIT HISTORY |
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H | |
OPEN CHARGE ACCOUNTS | |
ALIMONY, CHILD SUPPORT, OR SEPARATE MAINTENANCE |
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CONTINGENT LIABILITIES |
PREVIOUS MORTGAGE:
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DEFERRED INSTALLMENT DEBT | May not be omitted from debt ratio. If the credit report does not reflect a monthly payment due at the end of the deferment period, the lender may request a copy of the applicant’s payment letter, or utilize the industry standard of estimating student loan payments as 1% of the loan balance. |
NON-REIMBURSED EMPLOYEE EXPENSES | If the borrower claims any non-reimbursed employee expenses (IRS Form 2106 or 1040 Schedule A), the borrowers monthly income should be reduced by the annualized monthly average. |
BUSINESS DEBT IN BORROWER’S NAME | When the account in question does not have a history of delinquency, the debt may be excluded with satisfactory evidence the obligation was paid out of company funds (such as 12 months cancelled company checks). If the account in question has a history of delinquency, the full debt obligation must be included in the borrower’s debt ratio. |
FINANCED PROPERTIES | Additional financed properties are generally not permitted as borrower may not own any other suitable housing at time of closing. |
DEBTS WITH <6 REMAINING PAYMENTS | The total debt ratio should include revolving debt regardless of when the debt will be retired. Installment loans will only be considered if the debt will be retired in more than six months. However, if the monthly payment on the debt is substantial, the payment will also be included in long term debt. The GUS system will automatically exclude debt that is eligible to be excluded. If not excluded by GUS the debt must be included in the debt ratio. |
“PAYING DOWN” ACCOUNTS | Not permitted. Settlement offers will not be considered as proof of balance |
SETTLEMENT OFFERS | Are acceptable on accounts that will be paid in full at closing as long as the offer is in writing from the creditor reporting on the credit report. |
PAST DUE ACCOUNTS (NOT A COLLECTION OR CHARGE OFF) | Recent derogatory credit >1×30 within the previous 12 months is not permitted unless approved by GUS. All past due accounts must be current at time of closing. |
COLLECTIONS/ CHARGE OFFS |
GUS Approved:
Manual Underwrite:
Any unpaid Collections/Charge offs will require a satisfactory letter of explanation from the borrower. |
OUTSTANDING FEDERALLY INSURED OR GUARANTEED DEBT | Borrower(s) must have an acceptable existing repayment plan (minimum of 12 months), and/or be required to pay account in full prior to, or at closing. Borrower must also be cleared through CAIVRS. |
JUDGMENTS/LIENS |
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BANKRUPTCY (ALL) | 3 years seasoning required from Discharge or Dismissal date. |
FORECLOSURE | 3 years seasoning required. |
DEED-IN-LIEU OF FORECLOSURE | 3 years seasoning required. |
SHORT SALES | 3 years seasoning required. |
COMPENSATING FACTORS | Some compensating factors include:
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MULTIPLE RISK LAYERING | Multiple risk layering is not allowed on manually underwritten loans:
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Kentucky USDA No Score Loan Guides
DTI: 29/41 Maximum no exceptions.
Rent: 12 months 0 x 30 on Rent. 12 months cancelled checks or VOR if institution. Or a four Non Traditional Trade Lines may be substituted with underwriting
approval.
Credit: No delinquent or derogatory past or current credit. Regardless of size or type.
No open collections or judgments (exceptions granted upon review only
and only based on overall profile of the loan).
Job Time: 2 years of consecutive work/education with no gaps.
Alternative Trades: 3 Non Traditional Trades with Rent or 4 Non Traditional Trades with No Rent. 0 x 30 and must have 12 month history on each trade.
Pricing: 3.00 negative adjustment to price.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2 month Reserves. FTHB Education is required.
Minimum Loan: $30,000
Residual Incomer per Family/Geographic: Borrowers must have residual income left over after their loan closes, see table below for what is required:
Family Size
1
$450
2
$755
3
909
4
1,025
5
1,062
Over 5 Add $80 for each additional family member up to 7
Kentucky Rural Housing and USDA 620-639 Credit Score Loan Guides:
DTI: 29/41 Maximum no exceptions.
Rent: 12 months 0 x 30 on Rent. 12 months cancelled checks or VOR if institution. Or a four Non Traditional Trade Lines may be substituted with underwriting
approval.
Credit: 3 Trade Lines seasoned for 12 months with high balances of a minimum $500. No delinquency in last 12 months regardless of size or type.
No open collections or judgments (exceptions granted upon review only and only based on overall profile of the loan)
Alternative Trades: May be needed if credit is thin or needed to be strengthened overall credit quality.
May require four non-traditional trades if no Rent History.
Job Time: 2 years of consecutive work/education with no gaps.
Pricing: 1.50 negative adjustments to pricing.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2
months reserves.
Minimum Loan: $30,000
Kentucky USDA and Rural Housing Manual Underwrite with GUS Refer Scores >=640:
DTI: 29/41 Maximum no exceptions.
Rent: 12 months 0 x 30 on Rent. 12 months cancelled checks or VOR if institution. OR a four Non Traditional Trade Lines may be substituted with underwriting
Approval if no rent history is available.
Credit: 3 Trade Lines seasoned for 12 months with high balances of a minimum $500.
OR if payment shock <=25% and traditional trade lines cannot be supplied we can accept 3 alternative trade lines with 12 month history and 0 x 30.
No delinquency in last 12 months regardless of size or type on any credit.
No open collections or judgments (exceptions granted upon review only and only based on overall profile of the loan)
Job Time: 2 years of consecutive work/education with no gaps.
Pricing: 2.00 negative adjustments to pricing.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2
months reserves. May be waived with strong compensating factors.
Minimum Loan: $30,000
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
August 1, 2012
Kentucky USDA Mortgage Upfront Guarantee Fee and the monthly mortgage insurance Annual fee
Effective on October 1, 2012, the start of Fiscal Year (FY) 2013, Rural Development will revise the Up-Front Guarantee Fee and the monthly mortgage insurance fee structure as follows on a Kentucky USDA Mortgage loans in Kentucky for the Guaranteed Loan RHS :
Up-Front Guarantee Fee
FY 2012 Through 9/30/2012 |
FY 2013 Effective 10/01/ 2012 |
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Purchase Transactions (no change) |
2% |
2% |
Refinance Transactions |
1.5% |
2% |
Annual Fee
FY 2012 Through 9/30/2012 |
FY 2013 Effective 10/01/2012 |
|
Purchase Transactions |
.30% |
.40% |
Refinance Transactions |
.30% |
.40% |
The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, “Conditional Commitment for Single Family Housing Loan Guarantee”) issued by Rural Development on or after October 1, 2012. Loan guarantee requests submitted to Rural Development by September 30, 2012, in which a Conditional Commitment has not been issued, will be subject to the FY 2013 fee structure.
Lenders are encouraged to plan for the changes noted and should keep in mind that some Rural Development offices are experiencing extreme backlogs in loan guarantee delivery. There are no exceptions to the FY 2013 fee structure. Therefore, starting on October 1, 2012 all Conditional Commitments will be subject to the FY 2013 fee structure, regardless of the date the request was received by Rural Development.
The FY 2013 fee structure is only applicable to Conditional Commitments issued on or after October 1, 2012, Conditional Commitments issued by Rural Development prior to this date are notsubject to the new fee structure.
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
Conforming1 Loan Rate | FHA | ||||||||||
30 Year Fixed |
15 Year Fixed |
30 Year Fixed |
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Interest Rate | 3.75% | 2.875% | 3.375% | ||||||||
Annual Percentage Rate (APR) | 3.925% | 3.182% | 4.410% | ||||||||
Monthly Payment | $833.61 | $1,232.26 | $995.53 | ||||||||
Payment Term | 30 YEARS | 15 YEARS | 30 YEARS | ||||||||
Loan Amount | $180,000 | $180,000 | $180,000 | ||||||||
Est. Prepaid Finance Charges | $3,800 | $3,800 | $3,800 | ||||||||
Down Payment | 25% | 25% | 3.5% | ||||||||
Be aware that mortgage rates can change without notice and apply only in certain conditions. The APR for the loan products shown reflects the interest rates and estimated prepaid finance charges which include 1% of your loan amount to be paid toward the loan origination charge, but does not include all closing costs or discount points. The displayed rates assume that you’re refinancing a single-family primary residence with a 90-day-lock.
These mortgage rates are based upon a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit profile up to the time of closing.
The monthly payment amount displayed includes principal, interest and any required mortgage insurance. The payment amount does not include homeowner’s insurance or property taxes which must be paid in addition to your loan payment.
Conventional loans with a down payment less than 20% require mortgage insurance which could increase the monthly payment and APR.
FHA loans require both an upfront and in most cases, an annual mortgage insurance premium. The premium varies based on the individual loan characteristics. For illustrative purposes on FHA loans, our loan detail results include an estimated mortgage insurance payment added to the monthly principal and interest payment.
1 Conforming loan amounts for certain loan products have increased in federally designated metropolitan areas. Larger limits available in the state of Hawaii. To find out if these new loan limits can help meet your needs, contact us