Kentucky Rural Housing USDA Highlights for 2021Kentucky USDA Rural Development Guaranteed Lending Program is geared to assist low to moderate income families realize home ownership. Below are some important highlights:
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Category: Self-employed USDA Loans
Kentucky Rural Housing Mortgage Loans Require No Money Down
How do Students Loans affect a Kentucky Rural Housing Mortgage Loan Approval?
Kentucky USDA Rural Housing Guidelines for Student Loans:
Now offering Kentucky Rural RHS USDA loans
We are excited to offer you Kentucky RD USDA loans as our new product offering.
Product Highlights:
620+ FICO
102% LTV including the Guarantee Fee
Max DTI and minimum reserves determined by GUS
Owner Occupied, 1 unit properties only
Up to 6% Seller Concessions allowed
Kentucky Student loans that are currently in repayment must have documentation to verify the current payment due (e.g. letter from a loan servicer, online account verifications, or other official written documentation). The credit report alone is not acceptable documentation. Verifications are valid for 120 days, 180 days for new construction. A fixed loan payment will not adjust over the repayment term. The payment listed on the documentation may be used for debt ratios.
Graduated repayment plans typically start with low payments and then adjust every 12 months or more. Regardless of when payment adjustments occur, lenders must utilize the highest payment documented on the repayment plan agreement in debt ratios.
Deferred student loans that are not in repayment status may use an estimated payment of 1% of the loan balance reflected on the credit report, or a verified fixed payment provided by the loan servicer to document the payment that will be due once deferment ends.
Kentucky Student loans with Income Based Repayment (IBR) plans of $0 are not eligible to be used in the debt ratio. The borrower must provide documentation of the IBR payment plan from the loan servicer. The following apply:
- If the IBR payment is less than $100 and 1 percent of the total loan balance is more than $100, a minimum payment of $100 must be included in the debt ratios.
- If the IBR payment is less than $100 and 1 percent of the total loan balance is less than $100, a minimum payment of 1% of the loan balance must be included in the debt ratios.
- If the current IBR payment is over $100, use that payment amount in the debt ratios.
Joel Lobb
Senior Loan Officer
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
Kentucky USDA Loans | Rural Housing Loans Kentucky
How do you qualify for a USDA Mortgage if you are self-employed?
USDA Home Loans for the Self-Employed
Looking for a home loan when you are self-employed can be a bit challenging but a USDA loan may be a great option. Many banks and lenders shy away from this type of loan due to the complex nature and experience that it requires. These scenarios can be complicated but with proper analysis and documentation the outcome can be successful. This short video will explain how to qualify for a USDA home loan if you are self-employed.
via How do you qualify for a USDA Mortgage if you are self-employed?.
Who are considered self-employed when applying for a USDA loan?
• 1099 Contractors are considered self-employed
• W2 Employees who are 100% commissioned
• Converting from a self-employed to a W2 employee can be acceptable
What are the USDA guidelines for the self-employed?
Minimum guidelines require that a self-employed borrower must have 2 years of self-employment history. Common documents that will be needed for verification purposes include articles of incorporation when applicable and at least 2 years of both business and personal tax returns. Also, keep in mind your tax returns should include all pages and schedules. If you filed an extension, make sure to have the signed extension available for underwriting.
Tax return documentation includes but not limited to:
• Business tax returns for corporations
• Schedule C for sole proprietors
• Partnership details if applicable
• Signed extensions when necessary
• Year to Date Profit & Loss Statement
• Year to Date Balance Sheet
What are the USDA home loan income limits for the self-employed?
As with all USDA home loans, income limits will apply and qualifying income for a USDA home loan for the self-employed is based on your adjusted income. The adjusted income is calculated after expenses are deducted. Your qualifying income is not based on gross commissions or your total sales. When following USDA guidelines for self-employment, alternative income documentation such as bank statements showing deposits are not acceptable. Read more about the USDA eligibility requirements for the self-employed.
We realize that qualifying when you are self-employed may seem overwhelming, but we offer the unique experience and expertise to help with each step of the process.
Joel Lobb
Senior Loan Officer
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
Related Articles
- What Are USDA Loans? (louisvillekentuckymortgagerates.com)
- Kentucky USDA Rural Development Mortgage (kentuckyusdaloan.com)
- Kentucky VA Loan Guidelines (trulia.com)
- New lower minimum credit score requirements for our Kentucky Conforming Government and USDA programs (trulia.com)
- Compensating Factors to Overturn a Mortgage Denial on a Kentucky Fha and Usda Mortgage Loan: (mylouisvillekentuckymortgage.com)
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