- 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: Homes for Sale (Foreclosures owned by USDA/RHS KY
Western Kentucky are now eligible for low-interest loans from the U.S. Department of Agriculture
Several Kentucky counties eligible for low-interest USDA loans to repair agricultural damage
FRANKFORT, Ky. — Several Kentucky counties affected by the December 2021 storms that produced tornadoes and high winds in Western Kentucky are now eligible for low-interest loans from the U.S. Department of Agriculture, Kentucky Commissioner of Agriculture Dr. Ryan Quarles recently announced.
“Both my office and I have been on the ground in western Kentucky and witnessed the historic and devastating destruction that hit the region last month,” Commissioner Quarles said. “Our farmers need funds and resources to maintain operations and rebuild. The low-interest loans offered by USDA may help some get back on their feet and regain some sense of normalcy.”
The low-interest loans offered by USDA are for physical losses and can help producers repair or replace damaged or destroyed physical property essential to the success of the agricultural operation, including livestock losses. Examples of property commonly affected include essential farm buildings, fixtures to real estate, equipment, livestock, perennial crops, fruit and nut-bearing trees, and harvested or stored crops and hay.
USDA designated 24 Kentucky counties as primary eligibility areas for low-interest physical loss loans. They include:
Barren
- Boyle
- Breckinridge
- Caldwell
- Christian
- Edmonson
- Fulton
- Graves
- Grayson
- Green
- Hardin
- Hart
- Hickman
- Hopkins
- Logan
- Lyon
- Marion
- Marshall
- McLean
- Muhlenberg
- Ohio
- Spencer
- Taylor
- Warren
The USDA has also designated 29 counties as contiguous and also eligible. They include:
- Adair
- Allen
- Anderson
- Bullitt
- Butler
- Calloway
- Carlisle
- Casey
- Crittenden
- Daviess
- Garrard
- Hancock
- Henderson
- Jefferson
- LaRue
- Lincoln
- Livingston
- McCracken
- Meade
- Mercer
- Metcalfe
- Monroe
- Nelson
- Shelby
- Simpson
- Todd
- Trigg
- Washington
- Webster
The deadline to apply for the loans is Aug. 30, 2022.
Kentucky USDA Single Family Housing Foreclosed Homes For Sale
There are currently no Kentucky USDA homes up for resale or foreclosure for sale.
Check link below for updates:
👇
Joel Lobb
Mortgage Loan Officer
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
Text/call: 502-905-3708
email: kentuckyloan@gmail.com
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/
Kentucky USDA Mortgage Guidelines
Kentucky Rural Housing Mortgage Lender
Homebuyer Benefits for Kentucky Rural Housing Lenders
• No down payment required.
• Buy existing, build new, or refinance current Rural Development loan.
• Finance eligible loan costs up to 100% of the appraised value plus the one-time
upfront guarantee fee.
• Eligible loan costs may include: purchase price, repairs, lenders fees, closing costs,
essential household equipment.
• 30-year fixed rate that is negotiated between the applicant and lender.
• No maximum purchase price limits.
• Gift and grant funds allowed.
• Normal purchase contract time.
Why is the Single Family Housing Guaranteed Loan Program a top financing option for homebuyers?
USDA loans offer many advantages such as…
• No down payment so they can keep reserves in the bank for future unexpected costs.
• USDA offers the option to buy existing, build new, or refinance a current Rural Development
loan.
• Borrowers can finance eligible loan costs up to 100% of the appraised value plus the one-time
upfront guarantee fee.
• Eligible loan costs may include: purchase price, repairs, lenders fees, closing costs, essential
household equipment.
• 30-year fixed rate that is negotiated between the applicant and lender.
• No maximum purchase price limits. Maximum loan amount is determined solely by the
applicant’s repayment ability.
• Gift and grant funds allowed.
• Normal purchase contract time. No need to extend the contract time. Rural Development
typically issues a Conditional Commitment to the lender within 2-3 business days of receiving a complete application
Joel Lobb
Senior Loan Officer
(NMLS#57916)
Company ID #1364 | MB73346
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org). USDA Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation
USDA Mortgage Benefits for First Time Buyers in Kentucky
Kentucky USDA Mortgage Benefits for First Time Buyers in Kentucky
100% mortgage financing at competitive fixed interest rates with USDA home loans Credit score requirements (620 to 640) are less restrictive than most conventional home loan programs.
Kentucky USDA loans also offer a single upfront mortgage insurance premium which may be financed. Currently only 1% of the loan and a monthly mi premium of .35% which is very cheap considering the lower credit score requirements and no money down financing. The mortgage insurance is the same for everyone, does not matter what your credit score is or how much down payment you have.
You can look up individual properties on USDA’s website here for Kentucky eligible areas.
You can also research single family housing income eligibility for Kentucky here.
.
You may qualify if your Chapter 7 bankruptcy was discharged three years prior.
USDA loans can be used to finance most types of single family properties although some exception may apply. Homes must be used as borrowers’ primary residences and not used as second homes or rental properties.
Farms and commercial properties are not eligible through USDA Rural Housing Development Guaranteed Loans.
In many cases USDA permits sellers to contribute borrowers’ closing costs and can be financed up to the appraised value if home appraises for more.
Here are the highlights of USDA Mortgages
. Down Payment: 0% down payment
Closing Costs: up to 6%
. Credit Score: Minimum none–but lenders create overlays..typically 640 to get a GUS Automated approval
. Lower monthly mortgage insurance costs (PMI) versus FHA
. There is NO maximum set loan amount limit with USDA Rural Housing.
. No large savings are needed to qualify for USDA loans.
The debt to income, or DTI is limited to 45% – lower than most other loan programs.
The location of the home determines if it will be a USDA loan.
. The home can be a regular sale, short sale, foreclosure home or bank owned home single family, townhome or approved condo.
Mobile/Manufactured homes and “build on your own land” not available.
. Applies for First-time home buyers, or move-up buyers.
No special first-time buyer’s class, down payment assistance, or bond money is needed.
Joel Lobb
Mortgage Loan Officer
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
email: kentuckyloan@gmail.com
Kentucky USDA Mortgage Lender for Rural Housing Loans 