Category: Income Limits

Kentucky USDA Rural Housing Service (RHS) Section 502 Guaranteed program

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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 – Maximum loan amount is $424,100 (without guarantee fee), can go up to 101% LTV with guarantee fee financed.
o High Balance USDA available for loan amounts $424,100 to $636,150 (without guarantee fee)
• 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.

.

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 $78,000 for a family of four, and up to $99,000 for a family of five or more.

Joel Lobb
Senior Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
10602 Timberwood Circle, Suite 3
Louisville, KY 40223

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). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice.

Joel E Lobb
American Mortgage
5029053708
email us here

Kentucky FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans.

 

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http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
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.
 
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New Kentucky USDA Rural Housing Income Guidelines for 2017

RHS Income Kentucky Guideline Updates
USDA has published new income limits for Kentucky USDA Rural Housing  borrowers, effective immediately. Those new limits can be found HERE.

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Maximum age for an RHS appraisal has been extended from 120 days to 150 days.

  • Accessory Dwelling units are now addressed in RHS guidelines. They may be allowed based on the appraiser’s evaluation that they represent the highest and best use of the property and are not a separate single family dwelling unit.
  • Additional clarification on site requirements was added to help in the underwriter’s determination as to when outbuildings and/or excess land should be considered income-producing.
It’s  free to get pre-approved for the loan with us and we will supply you a copy of your credit report for free along with a pre-approval letter stating how much you qualify for.
It takes about 30-40 days to close the loan
   USDA Loan Pre-Approval Checklist

 

 
1.  One full month’s or 30 days worth of pay stubs
2.  Last 2 years W-2′s
3.  Last 2 years tax returns
4.  Last two months bank statements for all accounts
 
 
I don’t need originals, copies are fine. You can fax, email the requested documents or meet me face-to-face if you wish.

 Let me know your questions. 

Thanks and look forward to helping you– 
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
Joel Lobb (NMLS#57916)
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

http://www.nmlsconsumeraccess.org/
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.
 
 

2017 STUDENT LOAN GUIDELINES FOR A KENTUCKY USDA RURAL HOUSING MORTGAGE LOAN

 

 

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Lenders must include the greater of:
• 1 percent of the outstanding loan balance; or
• The fixed payment as reflected on the credit report.

Income Based Repayment (IBR) plans, graduated plans, adjustable rates, interest-only and deferred plans are examples of repayment plans that are subject to change and do not represent a fixed payment or repayment plan. These types of repayment plans are unacceptable to represent a long-term fixed payment repayment plan. It is the lender’s responsibility to ensure the correct fixed payment is utilized in the capacity analysis.

No additional documentation is required if a credit report is obtained.

Guide Reference – http://www.rd.usda.gov/files/3555-1chapter11.pdf

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text/talk 502-905-3708 kentuckyloan@gmail.com

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2017 KY USDA Rural Housing Income Limits for Kentucky Counties Kentucky Rural Development Mortgage Guide

2017 Kentucky Rural Development Mortgage Guide

  • 30 year fixed rate only for Purchases and Existing USDA loans Refinances.
  • Zero down Mortgage loan with a loan limit of $424,000
  • 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!

Kentucky USDA Rural Max Income Limits:

  • The total household income must be within the county limits for household size.  Typically a family household of 4 can make up to around $75,650  and a family of five or more  can make up to $99,850 for a household- Some KY counties allow for higher like Shelby County, and the Northern Kentucky Counties of Boone, Kenton, Campbell allow $82,000 (household income of four) up to $108,250 (household income of five or more)

Check Your Kentucky County for USDA Rural Housing Income Limits

 

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.

Put my experience of originating KY USDA loans to work for you. I have successfully originated over 200 Rural Housing Mortgage Loans in Kentucky. I offer free pre-approvals and will help you from start to finish and I usually attend all my closings in Kentucky. 

Get Qualified for a Kentucky USDA Loan Now!

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

10602 Timberwood Circle, Suite 3

Louisville, KY 40223

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). Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

Posted by joel lobb at 6:28:00 AM Links to this post

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Labels: bankruptcy, debt ratio, first time buyer kentucky usda, foreclosure, GUS approval, Kentucky Rural Housing and USDA Loans, Kentucky USDA Rural Development For 2017 Guide, rd, rhs

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Kentucky Rural Housing Mortgage offer zero down payments and low 30 year fixed rates with lower monthly mortgage insurance requirements than FHA currently
County Name Family Size 1 -4 Family Size 5 – 8
Adair $75,650 $99,850
Allen $75,650 $99,850
Anderson $78,900 $104,150
Ballard $75,650 $99,850
Barren $75,650 $99,850
Bath $75,650 $99,850
Bell $75,650 $99,850
Boone $82,000 $108,250
Bourbon $78,400 $103,500
Boyd $75,650 $99,850
Boyle $75,650 $99,850
Bracken $82,000 $108,250
Breathitt $75,650 $99,850
Breckinridge $75,650 $99,850
Bullitt $75,650 $99,850
Butler $75,650 $99,850
Caldwell $75,650 $99,850
Calloway $75,650 $99,850
Campbell $82,000 $108,250
Carlisle $75,650 $99,850
Carroll $75,650 $99,850
Carter $75,650 $99,850
Casey $75,650 $99,850
Christian $75,650 $99,850
Clark $78,400 $103,500
Clay $75,650 $99,850
Clinton $75,650 $99,850
Crittenden $75,650 $99,850
Cumberland $75,650 $99,850
Daviess $75,650 $99,850
Edmonson $75,650 $99,850
Elliott $75,650 $99,850
Estill $75,650 $99,850
Fayette $78,400 $103,500
Fleming $75,650 $99,850
Floyd $75,650 $99,850
Franklin $76,850 $101,450
Fulton $75,650 $99,850
Gallatin $82,000 $108,250
Garrard $75,650 $99,850
Grant $75,650 $99,850
Graves $75,650 $99,850
Grayson $75,650 $99,850
Green $75,650 $99,850
Greenup $75,650 $99,850
Hancock $75,650 $99,850
Hardin $75,650 $99,850
Harlan $75,650 $99,850
Harrison $75,650 $99,850
Hart $75,650 $99,850
Henderson $75,650 $99,850
Henry $75,650 $99,850
Hickman $75,650 $99,850
Hopkins $75,650 $99,850
Jackson $75,650 $99,850
Jefferson $75,650 $99,850
Jessamine $78,400 $103,500
Johnson $75,650 $99,850
Kenton $82,000 $108,250
Knott $75,650 $99,850
Knox $75,650 $99,850
Larue $75,650 $99,850
Laurel $75,650 $99,850
Lawrence $75,650 $99,850
Lee $75,650 $99,850
Leslie $75,650 $99,850
Letcher $75,650 $99,850
Lewis $75,650 $99,850
Lincoln $75,650 $99,850
Livingston $75,650 $99,850
Logan $75,650 $99,850
Lyon $75,650 $99,850
Madison $75,650 $99,850
Magoffin $75,650 $99,850
Marion $75,650 $99,850
Marshall $75,650 $99,850
Martin $75,650 $99,850
Mason $75,650 $99,850
McCracken $75,650 $99,850
McCreary $75,650 $99,850
McLean $75,650 $99,850
Meade $75,650 $99,850
Menifee $75,650 $99,850
Mercer $75,650 $99,850
Metcalfe $75,650 $99,850
Monroe $75,650 $99,850
Montgomery $75,650 $99,850
Morgan $75,650 $99,850
Muhlenberg $75,650 $99,850
Nelson $75,650 $99,850
Nicholas $75,650 $99,850
Ohio $75,650 $99,850
Oldham $75,650 $99,850
Owen $75,650 $99,850
Owsley $75,650 $99,850
Pendleton $82,000 $108,250
Perry $75,650 $99,850
Pike $75,650 $99,850
Powell $75,650 $99,850
Pulaski $75,650 $99,850
Robertson $75,650 $99,850
Rockcastle $75,650 $99,850
Rowan $75,650 $99,850
Russell $75,650 $99,850
Scott $78,400 $103,500
Shelby $84,750 $111,850
Simpson $75,650 $99,850
Spencer $75,650 $99,850
Taylor $75,650 $99,850
Todd $75,650 $99,850
Trigg $75,650 $99,850
Trimble $75,650 $99,850
Union $75,650 $99,850
Warren $75,650 $99,850
Washington $75,650 $99,850
Wayne $75,650 $99,850
Webster $75,650 $99,850
Whitley $75,650 $99,850
Wolfe $75,650 $99,850
Woodford $78,400 $103,500

Kentucky USDA Rural Housing Loans : Kentucky Rural Development Guidelines for 2015:

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KENTUCKY USDA AND RURAL HOUSING MORTGAGE QUALIFYING GUIDELINES FOR 2016

Kentucky Rural Housing USDA Highlights for 2016

Kentucky USDA Rural Development Guaranteed Lending Program is geared to assist low to moderate income families realize home ownership. Below are some important highlights:

 USDA/Rural Development. The Annual Guarantee Fee is set to INCREASE October 1.
  • Debt Ratios–29/41% on manual underwrites  – max to 45% Debt to Income ratios with GUS Approve/Eligible Finding.
  • ZERO down payment – 100% LTV ok
  • Income Eligibility Limits do apply. Usually to $75k for a family of four and up to $98k for a household family of five or more.
  • Lender Credit from the interest rate may be used to pay closing costs.
  • Gifts ok! Usually not needed for USDA loans because 100% Financing offered. Gift funds cannot be used for reserves to get a GUS approval.
  • Applicants with > 20% of the sales price in assets (exclude retirement accounts) are not eligible for USDA financing.
  • Clear CAIVRS required – CAIVRS is a Federal Government-wide data base of information regarding individuals where an insurance claim or guarantee loss was paid.
  • 2 tradelines with > 12 months of repayment history – installment or revolving and trade lines may be open, closed or paid in full by applicant.
  • Student Loan Payments – important recent change to Kentucky Mortgage RHS USDA Loans. The change no longer allows for student loan payments that are IBR (Income Based Repayment), graduated, adjustable, interest only and deferred. USDA now requires a payment equal to 1% of the balance reflected on the applicant’s credit report.

Kentucky Rural Development USDA Changes Coming soon below: 

  • Kentucky USDA Streamlined-Assist refinances – similar to an FHA Kentucky Streamline…details coming soon!
  • Upfront Fee and the Annual Premiums will be reducing in the Fall of 2016 for a new Kentucky Rural Housing Mortgage Loans!

 

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

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 and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

502 Direct USDA Loan in Kentucky:

NMLS 57916

 

There are two types of Kentucky USDA Rural Housing Home loans available to rural Kentucky Home buyers through Rural Development:

Direct homeownership loans and guaranteed home ownership loans.

Let’s first look at the 502 Direct USDA Loan in Kentucky

502 Direct USDA Loan in Kentucky:

 

With a Kentucky  Direct Loan 502, the applicant applies directly to the USDA office serving their location in Kentucky. There are about 13  different locations . They  lend the money direct from USDA , 100 percent financing, for the low rate currently at 3 percent on a 33 year term.

For a direct home loan, the purchase, construction, repair and rehabilitation of a single family home in rural areas must be used for the applicant’s permanent residence. “For manufactured housing, only new construction can be funded,” he explained.

Credit scores of 640 or greater are typically acceptable with a minimum number of trade lines (2 usually for 12 months can be opened or closed) that have been open and active.

No down payment typically is required- Loans may be up to 100 percent of the appraised value. Homebuyer education is required prior to closing for the Direct USDA Loan 502 program

 

Mortgage payments are based on what the applicant can afford to pay. USDA offers payment assistance/subsidies to make it affordable. When you go to payoff the USDA Direct loan, you may incur a subsidy recapture fee. KY RD Offices_August2014.jpg 

Student Loans and their Impact in the Total Debt Ratio

Recent updates to the 3555 Handbook intended to simplify guidance for the delivery of the guaranteed loan program have caused some misperception in regards to total debt ratio calculations, specifically in the subject of student loans.  The Agency is working on revisions to Chapter 11: Ratio Analysis; however, we want to further clarify the subject at this time.

Total debt includes monthly housing expenses plus any other credit obligations incurred by the applicant.  Student loan payments must be included in the calculation of the total debt-to-income ratio and captured under liabilities on the application.  Student loan payments should be treated as described below:

Fixed payment loans:  A fixed payment may be used in the debt ratio when the lender retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed.  There must be no future adjustments to the terms of the student loan payments.

 

Non-Fixed payment loans:  Payments for deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation.  One percent of the loan balance reflected on the credit report must be used as the monthly payment.  No additional documentation is required.

2014 Income Limits for Kentucky USDA’s Single Family Guaranteed Loan Program

Kentucky USDA Rural Housing Home Loans 1 100% Financing in Kentucky for Home Loans
Kentucky USDA Rural Housing Home Loans 1
100% Financing in Kentucky for Home Loans

The 2014 Income Limits for Kentucky USDA’s Single Family Guaranteed Loan Program were recently published.  The good news is that the majority of all areas either increased or stayed the same.

Click Here to view the updated Kentucky Rural Housing USDA Income Limits for 2014 in your area.

Joel Lobb  Senior  Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 phone: (502) 905-3708
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com 

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA
This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA
Kentucky property eligibility map for USDA and rural development , property eligibility, maps, rhs, usda, rural development, rural housing,
Kentucky property eligibility map for USDA and rural development , property eligibility, maps, rhs, usda, rural development, rural housing,
Kentucky property eligibility map for USDA and rural development , property eligibility, maps, rhs, usda, rural development, rural housing,

Kentucky USDA Rural Development Guaranteed Housing Loan Income Worksheet for 2014

KENTUCKY RURAL HOUSING INCOME ELIGIBILITY CALCULATION WORKSHEET

Kentucky USDA Rural Development Guaranteed Housing Loan

INCOME ELIGIBILITY CALCULATION WORKSHEET  USDA Rural Development Guaranteed Housing Loan
KENTUCKY INCOME ELIGIBILITY CALCULATION WORKSHEET
USDA Rural Development Guaranteed Housing Loan

 

 

 

 

 

 
Borrower/s ____________________________________________________________
Date of Calculation__________ Total # household members = _________
State:_________________________ County:______________________________

List all non-exempt household income: (Per §1980.347)
Name of household member receiving the income
Source of income Monthly income from source
(Actual or Average)
X12
Annual income
from source
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________

Total Gross Household Income $______________ X12 $______________

Total Monthly Total Annual
Deductions from Annual Income: (Per § 1980.348) (Use when gross income is above income limit):
(1) Number of Minors living in household: ___X $480.00 (Under age 18) $_____________
(2) Number of Disabled/Handicapped Adults:___ X $480.00 (18 or over& NOT borrowers) $_____________
(3) Number of full time adult students: ____ X $480.00 (18 or over& NOT borrowers) $_____________
(4) Elderly Family: (borrower or co-borrower over 62) One time deduction of $400.00 $_____________
(5) Annual Child Care Expense $_____________
(6) Medical expenses (Elderly family only. Un-reimbursed >3% gross annual income) $_____________

TOTAL Annual Deductions (Sum of Line 1 thru Line 6) $_____________
Adjusted Gross Annual Household Income (Gross income less deductions) $____________

ADJUSTED COUNTY HOUSEHOLD INCOME LIMIT per Rural Development $____________
Kentucky USDA and Rural Housing Income limits are available at:

http://www.rurdev.usda.gov/SupportDocuments/KY%20GRH.pdf

DEDUCTIONS FOR CALCULATING  ADJUSTED FAMILY INCOME

Deductions From
Annual Income Deduct For: Do Not Deduct For:__________________________________

$480 for each (A) Minors (under 18 years of age) Applicant/Borrower, Spouse, Foster Children, or member of the Children of Non-family members.
family residing in the household. (B) Adults (18 years of age or older) Applicant/Borrower, Spouse or Non-family members.

(C) Adults (18 years of age or older) Applicant/Borrower, Spouse or Non-family members.
who are full-time students.
______________________________________________________________________________________________________

$400 for elderly (D) Head, Spouse or Sole Member who family. is a senior citizen, disabled or handicapped and is the applicant/
borrower.

(E) Two or more unrelated senior Family, if one or more of those living in the house-
citizens, disabled or handicapped hold is not a senior citizen, disabled or handicapped.
persons living together, at least one
is the applicant/borrower.

(F) Survivors of deceased FmHA senior Survivors after remarriage of the deceased borrowers citizen, disabled or handicapped spouse. borrower who occupied the dwelling
at the time of the borrower’s death.
______________________________________________________________________________________________________

Care of minors 12 years (G) Anticipated expenses to be paid for (a) Amount paid in excess of amount received from of age or foster children care of member of the family to be such employment. or children of non-family gainfully employed. (b) Payments made to dependents of the applicant/ members. borrower.
(H) Anticipated expenses paid for care of
minor(s) to enable a member of the Payments made to dependents of the applicant/
family to further his/her education. borrower.
______________________________________________________________________________________________________

Aggregate medical (I) Planned general medical and dental Accumulated bills in excess of planned payments for expenses of the house- expenses of an elderly family for the ensuing 12 months. hold in excess of 3% of ensuing 12 months which are not gross annual income. covered by insurance (eg., medicines, medical insurance premiums, costs of nursing care, payment of accumulated medical bills, and cost of full-time nursing or institutional care which cannot be provided in the home).

(J) Reasonable attendant care and auxiliary Cost already deducted for same user member of apparatus and equipment expenses to elderly family. enable any handicapped/disabled
member of a household (not just an elderly family) to be employed.
_________________________________________________

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

 

GUARANTEED HOUSING PROGRAM INCOME LIMITS
GUARANTEED HOUSING PROGRAM INCOME LIMITS

Debt Ratio Waivers and Compensating Factors for Kentucky USDA Rural Housing Development Loans for 2014

Kentucky First Time Home Buyers---Zero Down Loans Still Exist
502 USDA, guarantee loan, Kentucky Rural Development Frequently Asked Questions (Real Estate Professionals), rhs loans kentucky, Rural Housing Guidlines, USDA, USDA Rural Housing Guidlines

 Kentucky USDA Rural Housing Development Loans for 2014

Effective May 1, 2013, Agency concurrence of a debt ratio may be granted if all of
the following conditions are met:

1. The PITI is between 29 and 32 percent or the TD ratio is between 41and 44
percent;
2. The credit score of all applicant(s) is 680 or greater; and
3. At least one of the acceptable compensating factors listed below is identified and
supporting documentation is provided to the Agency.

Acceptable Compensating Factors and Supporting Documentation:

 The proposed PITI (proposed housing expenses) is equal to or less than the
applicant’s current verified housing expense for the 12 month period preceding loan
application. Verification of housing expenses may be documented on a Verification
of Rent (VOR) or credit report. The VOR or credit report must include the actual
payment amount due and report no late payments or delinquency for the previous 12
months. Rent or mortgage payment histories from a family member will not be
considered.

 Accumulated savings of liquid assets or cash reserves available post loan closing are
equal to or greater than 3 months of PITI payments. A Verification of Deposit or two
consecutive bank statements, dated within 45 days of loan application, that document
the average balance held by the applicant is required. Cash on hand is not eligible for
consideration as a compensating factor.

 The applicant(s) (all employed applicants) has been continuously employed with their
current primary employer for a minimum of 2-years. A “Request for Verification of
Employment” (VOE) (Form RD 1910-5, equivalent HUD/FHA/VA or Fannie Mae
form, or other equivalent), or VOEs prepared by an employment verification service
(The Work Number, etc.) must be provided. This compensating factor is not
applicable for self-employed applicants.

Kentucky RHS Mortgage Rates
Kentucky RD Mortgage Rates for the Ky USDA Guarantee Home 502 Program

 

 

 

 

 

 

 

Debt Ratio Waiver Request and Agency Approval:

Debt ratio waivers must be requested and documented by the approved lender, otherwise
the loan file will be denied. The Agency will review the debt ratio waiver request when
all of the following conditions are met:

1) The lender requests Agency concurrence with the debt ratio waiver by submitting
a signed underwriting analysis that captures one or more of the above
compensating factors. Lenders may utilize Fannie Mae 1008 / Freddie Mac 1077,
“Uniform Underwriting and Transmittal Summary,” or similar form;

2) The PITI is between 29 and 32 percent or the TD ratio is between 41 and 44
percent;

3) The underwriting credit score is 680 or greater for all applicants; and

4) The lender provides evidence of the compensating factor(s).

The Agency will notify the lender of concurrence with the debt ratio waiver request by
issuance of Form RD 1980-18, “Conditional Commitment for Single Family Housing
Loan Guarantee.” The Agency must check the ratio waiver box in the Guaranteed Loan
System for manually underwritten loans or on the USDA Administration page in GUS for
“Refer” or “Refer with Caution” underwriting recommendation files. All supporting
documentation of the compensating factors must be imaged as an essential document in
the Rural Development Imaging Repository.

Summary

There will be no exceptions to the defined ratio thresholds and minimum credit score
requirements. Only the compensating factors listed in this AN with supporting
documentation will be considered for Agency concurrence with a debt ratio waiver.

This AN does not apply to any GUS loan file that receives an “Accept” underwriting
recommendation.

n

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
 800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com 

This website is not acting on behalf of or at the direction of HUD/FHA, USDA, KHC,  VA  or the Federal Government.

HUD Settlement Cost Booklet | CHARM Booklet
Company NMLS Consumer Access Page

INCOME ELIGIBILITY FOR KENTUCKY USDA LOANS AND RURAL HOUSING DEVELOPMENT RHS

INCOME ELIGIBILITY

502-905-3708
ACCEPTABLE INCOME FOR A KENTUCKY USDA AND RURAL HOUSING LOAN FOR THE 502 GUARANTEE LOAN

 

 

 

 

 

 
• For the Guaranteed Loan Program, the borrower’s adjusted income may not exceed 115% of the U.S. median income
• An income calculator is available on the Rural Development Web site at
http://eligibility.sc.egov.usda.gov. From the home page, click “Single Family Housing” under “Income  Eligibility.”
• The following are included in annual income to qualify for an RHS guaranteed loan:
− Gross amount of wages, salaries, overtime pay, commissions, fees, tips, bonuses and other compensation for personal services of all adult members of the household
Net income from the operation of a farm, business or profession, interest, dividends and other net income of any kind from real or personal property
− Payments from social security, annuities, insurance policies, pensions, unemployment, workers compensation, alimony and/or child support and other types of periodic receipts.
− All regular pay, special pay and allowances of a member of the armed forces who is the
borrower or spouse whether or not that family member lives in the unit
− All rental income, regardless if using to qualify, must always be considered when calculating total household income for program eligibility as follows:

• The following sources are not included in annual income but will be considered in determining the ability to repay the loan:
− Income from minors
Food stamp allotment
− Payments from foster care
− Irregular cash gifts
Lump sum additions, such as capital gains, etc.
− Medical reimbursements
− Educational benefits
− Hazardous duty pay for military person exposed to hostile fire Note: Not every situation can be thoroughly addressed and this sellers guide is not all-encompassing. At
underwriter discretion, additional documentation may be required on any loan.

USDA Guidelines

− Income exempted by Federal Statute (details noted in 1980-D Exhibit F). Adjustments to reduce
annual income include $480.00 for each minor child, full time student or a disabled member of
the family. $400.00 may be deducted from annual income for each family member over 62
years of age. An additional deduction may be calculated for certain expenses when added
together exceed 3% of gross annual income

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/