KENTUCKY RURAL HOUSING HAS FUNDING FOR 2020 MORTGAGE LOANS
Additionally, the following KY USDA Rural Housing Guidelines have been updated below:
- Income sources that will not be received for the next full 12 months must still be used in calculating Annual Eligibility Income unless specifically excluded by RHS guidelines (section 3555.152(b)(5)).
- Section 9.3 Annual Income has been updated with detailed income verification requirements to cover previous grey areas in paystub, W-2, and self-employed documentation requirements
- A significant increase or decrease in earnings requiring caution has been defined as a 20 percent variance in income over the previous 12 months.
- Time spent in school can only be used towards income requirements when the schooling is part of college, technical school, or the acquisition of career-based certificates in high school. A standard high school diploma without an accompanying certificate would not meet these requirements.
- Documentation requirements for several types of income have been reduced from 2 years to 1 year, and additional guidance has been provided for previously missing income types
Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
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.
The rule states the following:
A borrower who has no verifiable employment for 6 months or longer is deemed to have a gap in employment.
- Any gaps in employment must be analyzed in order to make a final determination of stable and dependable income. An employment gap does not automatically render an applicant ineligible. Applicants with job gaps due to maternity leave, medical leave, relocation, etc. are considered to have employment continuity. Applicants returning to the workforce after leaving a previous job to care for a child/family member, complete education, etc. will require a 12 month employment history.