Category: SFH Direct property

What are Kentucky USDA Home Loans? Do I Qualify?

What are Kentucky USDA Home Loans? Do I Qualify? Deciding between rural and suburban is one of many choices you’ll make along your homeownership journey. And if the countryside is your preference, then you may want to consider applying for a USDA loan. You’…

Source: What are USDA Home Loans? Do I Qualify? – Cape Gazette

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Kentucky Rural Housing Development Mortgage Guide for 2019 USDA Loans

Kentucky Rural Housing Development Mortgage Guide for 2019 USDA 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

USDA Lenders Based in Kentucky Offering Rural Housing Mortgage loans.

2019 Kentucky Rural Development Mortgage Guide

  • 30 year fixed rate only for Purchases and Existing USDA loans Refinances.
  • Zero down Mortgage loan with no loan limits!
  • 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!

2019 Kentucky USDA Rural Max Income Limits:

  • New Income limits for most counties (*) in Kentucky are $86,850 for a  4 unit household and household families of five or more + can make up to  $114,650.

    The Northern Kentucky Counties (***) of Boon, Kenton, Campbell, Brackenn, Gallatin, and Pendleton are $93,500 for a household of four or less and up to $123,400 for a family of five or more.

    With the new changes for 2019 USDA Income limits, the Jefferson County Louisville, KY Metro area (**) saw an increase of $87,600 for a family of four and up to $115,650 for a family of five or more. The metro area includes Oldham, Bullitt, Spencer, Hardin, Larue and Meade are including in these higher income limits for USDA loans.

    Remember,  Jefferson County Kentucky, Fayette County Kentucky are not eligible for USDA loans.

    ,Below is the website where you can check and make sure

     

     

    New USDA Rural Housing Income Limits for Kentucky Cincinnati (OH, KY, IN FMR), Boone, Kenton, Campbell, Pendleton, Gallatin*** Household income of 4 or less:

    ***$93,500
    Household income of 5 or more:

    ***$123,400
    Shelby, Bullitt, Oldham, Spencer** **$87,600 ** $115,650
    Rest of the Kentucky Counties in Kentucky not listed above* *$86,850  

    *114,650

     

 

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!

 

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What is a Kentucky USDA Rural home loan?

What is a Kentucky USDA Rural home loan?

USDA Lenders Based in Kentucky Offering Rural Housing Mortgage loans.

A Kentucky USDA home loan is a zero-dollar-down mortgage option provided by USDA’s Department of Rural Development.

This government-backed loan program comes in two types: direct loan, which is reserved for lower-income households and issued by USDA, and the guaranteed loan, which is reserved for low- to moderate-income families. The guaranteed loan is funded by private lenders, and USDA guarantees a portion of the loan against default.

Is a Kentucky  USDA loan more beneficial than a Kentucky conventional loan?

 The KY USDA home loan program is generally more beneficial to rural families than a conventional lending program, particularly for first-time homebuyers with lower- to median-level incomes.

Some of the benefits of Kentucky Rural Housing USDA loans include:
• zero down payment 
• competitive interest rates
• lower-than-average monthly mortgage insurance 
• relaxed credit requirements versus conventional loans
• no loan limits

How do I determine eligibility for a Kentucky Rural Housing USDA loanTo be eligible for a USDA home loan, borrowers must meet the program’s basic eligibility requirements. These requirements are relaxed compared to other mortgage options and are in place to ensure borrowers can make their monthly mortgage payments.

Here are a few of the basic Kentucky RHS USDA eligibility requirements:

• Income. Applicants must not have annual adjusted income greater than 115% of the median household income for the area. Check your county’s USDA income limit. This called compliance income.

 

Most Kentucky Counties that are eligible for the rural housing loan is $82,700 for a family of four and up to $109k for a family of five or more.

Kentucky Counties Cincinnati (OH, KY, IN FMR) Household income of 4 or less:

$90,050

Household income of 5 or more:

$118,850

Shelby $86,450 $114,100
All Other Areas $82,700 $109,150

• Credit. Applicants must have a minimum credit score of 581 to qualify for USDA’s guaranteed underwriting credit requirements. However, most lenders will want a 620 or preferably to get an Automated Approval 640 is the magic number in most cases. With regards to bankruptcy, 3 years is usually the date needed to lapse since your discharge.

• Employment. Applicants must have proof of two years of stable income and employment.

:  Income: They will take your gross monthly income and develop two ratios for you: The front end ratio, which is called your housing ratio, and then the back-end ratio or total debt ratio is the house payment plus the total monthly payments listed on the credit report. If you pay child support, this is included in the qualifying ratios but utility bills, car insurance, cell phone bills, water bills etc, is not included. Typically 28% is used for the housing ratio, and

Student Loans:  They are pretty tough on student loans and qualifying with your current student loan debts. They will make us use 1% of your outstanding balance on student loans, so sometimes this will cause the loan to get denied because your debt to income ratio is too high. If they are in an Income-Based repayment plan they will still make us use the 1% balance so keep this in mind. For example, let’s say you owe $35k in outstanding student loans, and your IBR plan calls for a $50 monthly payment. RHS will make us use $350, not the $50 IBR payment so you can see where this will cause issue on higher debt to income ratios on some loans.

• Property location. Homes must be located within a rural area, as defined by USDA. Rural areas are any that have a population less than 35,000 depending on the area’s designation. Use this tool from USDA to determine if a specific address is eligible.

• Physical property. Homes must be the borrower’s primary residence, have direct access to a street, and have adequate utilities and water and wastewater disposal, among other things No working fams allowed or properties that income producing livestock or crops.

For those with lower incomes, a USDA direct loan provides greater opportunities for lending, as its credit and income requirements are more lax than the guaranteed loan option.


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#57916http://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.

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

 

Interest Rate Increase for Single Family Housing Direct Programs for Kentucky Rural Housing Loans

 March 28, 2018

 Interest Rate Increase for Kentucky Rural Housing USDA Direct Programs

Kentucky USDA Rural Housing Guidelines for Home Insurance Deductibles and POA’S for 2017

USDA REVISIONS TO HB-1-3555
 
THE REASONS BELOW ARE THE ONLY ACCEPTABLE TIMES A POWER OF ATTORNEY WILL BE ALLOWED. BORROWER UNAVAILABILITY OR FOR CONVENIENCE WILL NO LONGER BE AN ACCEPTABLE REASON TO USE A POWER OF ATTORNEY ON KENTUCKY USDA LOANS FOR THE 502 GUARANTEE LOAN PROGRAM
 
Use of a Power of Attorney (POA):
A Power of Attorney (POA) may only be used when the Mortgagee verifies and documents that all of the following requirements have been satisfied:
  • For military personnel, a POA may only be used for one of the applications (initial or final), but not both:
    • when the service member is on overseas duty or on an unaccompanied tour;
    • when the Mortgagee is unable to obtain the absent Borrower’s signature on the application by mail or via fax;

And

    • where the attorney-in-fact has specific authority to encumber the Property and to obligate the Borrower. Acceptable evidence includes a durable POA specifically designed to survive incapacity and avoid the need for court proceedings.
  • For incapacitated Borrowers, a POA may only be used where:
    • a Borrower is incapacitated and unable to sign the mortgage application;
    •  the incapacitated individual will occupy the Property to be insured;

And

    • the attorney-in-fact has specific authority to encumber the Property and to obligate the Borrower. Acceptable evidence includes a durable POA specifically designed to survive incapacity and avoid the need for court proceedings.
Hazard Insurance Maximum Deductible:
On Kentucky USDA Rural Housing Loans effective now, they have clarified that the maximum deductible may not exceed the greater of $1,000 or 1% of the face amount of the policy similar to the policy for flood insurance deductibles.
 MRB Special Funding Program 


KHC has $5 million available at 2 percent interest rate, fixed for 30 years. This special funding program is available on a first-come, first-served basis starting today, Wednesday, March 8, 2017, with new reservations. This program is targeted to:
  • Households whose gross annual income does not exceed $40,000.
  • An existing or new construction property (purchase price limit $130,000) in a county not receiving HHF DAP funds*.
  • 640 minimum credit score.
  • FHA, VA, or RHS first mortgage options.
  • Households who meet one of the following criteria:
    • At least one of the home buyers is age 62 or older.
    • At least one member of the household is disabled and receiving disability income.
    • A single-or two parent household with at least one dependent child under the age of 18 living in the household.


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.
 

List of Kentucky USDA Single Family Housing For Sale Feb 2017

 

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Your properties subscription for USDA Single Family Housing is kentuckyloan@gmail.com as of 02/08/2017

State Days Old Counties
KY 365 ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD
T
Address Bed/Bath Price
255 Meadow Grove Road 3/1 $26,800.00 – GovtBid
Pine Knot, KY 42635 Foreclosure Sale
862 Andrew Mason Rd 2/1 $21,440.00 – GovtBid
Vanceburg, KY 41179 Foreclosure Sale
171 Fairview Ave. 3/1 $38,190.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
519 Hickory Hill Dr. 3/1 $63,885.00 – GovtBid
Nicholasville, KY 40356 Foreclosure Sale
417 Creekview Dr 3/1 $26,800.00 – GovtBid
Paris, KY 40361 Foreclosure Sale
10854 Hope Means Rd. 4/2 $62,725.00 – GovtBid
Means, KY 40346 Foreclosure Sale
831 Strawberry Ln 3/1 $37,520.00 – GovtBid
Franklin, KY 42134 Foreclosure Sale
71 Apricot Lane 4/2 $62,685.00 – GovtBid
Flemingsburg, KY 41041 Foreclosure Sale
1781 Highway 490 3/1.5 $16,080.00 – GovtBid
East Bernstadt, KY 40729 Foreclosure Sale
403 Greenview Drive 3/1 $42,210.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
452 Silverhawk Rd. 3/1 $22,110.00 – GovtBid
Olive Hill, KY 41164 Foreclosure Sale
21 N Carolina Ave 3/2 $47,235.00 – GovtBid
Morehead, KY 40351 Foreclosure Sale
85 Fanning Lane 3/2 $53,970.00 – GovtBid
Salt Lick, KY 40371 Foreclosure Sale
5052 Paddock Loop 3/2 $98,450.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
502 Mallard Park 3/1.5 $83,060.00 – GovtBid
Versailles, KY 40383 Foreclosure Sale
832 Old Whitley Rd. 2/1 $52,260.00 – GovtBid
London, KY 40744 Foreclosure Sale
129 Nipper Dr. 3/1 $16,080.00 – GovtBid
Ezel, KY 41425 Foreclosure Sale
808 Daniels Dr. 3/1 $28,140.00 – GovtBid
Worthington, KY 41183 Foreclosure Sale
208 Shannon Court 3/2 $66,605.00 – GovtBid
Winchester, KY 40391 Foreclosure Sale
2319 Redbud Lane 3/1 $43,550.00 – GovtBid
Paris, KY 40361 Foreclosure Sale
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USDA Streamline Product: Streamline Assist for all USDA Kentucky Homeowners of current USDA mortgages for refinances


I now offer the USDA Streamline Product: ‘Streamline Assist’ for all USDA Kentucky Homeowners for refinances 
Take advantage of our Kentucky Rural Development USDA Streamline Refinance today!

 PROGRAM HIGHLIGHTS
  • Min 640 FICO
  • No appraisal
  • 30 year fixed only
  • Rate term only
  • No GUS run
  • No household income calculation
  • Mortgage only credit report
  • 2nd mortgage liens must be subordinated, but no max CLTV
  • Borrowers may be added but not removed from current loan
  • Max loan amount may include P&I balance of existing loan, eligible loan
    closing costs, funds necessary to establish tax and insurance escrow account
    and upfront guarantee fee
  • NTB must be met – $50 reduction in PITI plus annual fee payment
  • Seasoning required – 12 months timely payments prior to new application
    date
  • Streamlined application:
    * No income
    * Disclose assets only if needed to close
    * No liabilities listed other than mortgage to be refinanced
    * REO – list subject property only
New Product - New chalkboard with outlined text - on wood

 

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RHS USDA Recent News
Good news! Kentucky Mortgage holders of USDA Mortgage loans can get  new drastically lower fees starts with commitments starting tomorrow October 1.  If you have an  USDA eligible Loan up to $417,000 with no money down in most Kentucky Counties.
If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.


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 views of my employer. Not all products or services mentioned on this site may fit all people
 


Posted By Blogger to Kentucky First Time Home Buyer Mortgage Loans

Kentucky USDA Rural Housing Streamline Refinance Changes in 2016

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Kentucky USDA Mortgage holders should look to  Streamline Refinance  for Customers wanting to lower their payments and reduce their mortgage insurance

 

PROGRAM REQUIREMENTS
Existing Loan Current loan may be a section 502 Guaranteed or Direct loan.
New Interest Rate The new interest rate must meet the following requirements: 1) Fixed, and 2) The interest rate may not exceed the existing rate (that described in RD
440.1)Maximum Interest Rate The maximum interest rate is based on the 90 day FNMA 30 year A/A Remittance rate as of the lock date + 100 basis points and rounded up to the next1/4%. The rates are found on the Fannie Mae website: http://www.efanniemae.com/sf/refmaterials/hrny/index.jsp

Net Tangible Benefit The new principal, interest, taxes, and insurance (PITI) must have at least a $50 reduction compared to the existing PITI. The reduction ($50) must be
independent of any change in the annual fee, which is included in the calculation.

Term The new term must be 30 years only.

Adding/Removing Borrowers Borrowers may be added, but not removed (unless deceased) from the current loan.

Maximum Mortgage Amount The mortgage amount may include the principal balance plus a portion or the full amount of the applicable upfront guarantee fee, accrued interest, funds to establish tax and insurance escrow, and eligible loan closing costs (discount points not permitted see below)

COLLATERAL
Appraisal No Appraisal required. A new appraisal is only required for direct loan borrowers that received a subsidy.

Eligible Collateral All dwellings must provide decent, safe, and sanitary at a modest cost (a dwelling with a purchase price not exceeding the FHA Single Family mortgage
limit for its county is considered modest), Owner Occupied Only. 1 Unit, PUD’s, Condos,
Ineligible Collateral Mobile homes, single-wide manufactured homes, co-ops, Condo Hotels, State approved medical marijuana producing properties, income producing farms, ranches, mixed use, commercial properties, leaseholds, properties with sink holes, properties served by cisterns, properties serviced by hauled water,
properties with a wastewater stabilization pond/lagoon (aka sewage lagoon), properties with individual water purification systems required to make the
water safe for human consumption (does not include systems installed to improve the taste or softness of the water).

CREDIT
CAIVRS and Exclusionary List CAIVR clearance must be obtained for all borrowers on the transaction. GSA/LDP/SAM clearance is required for all parties of the transaction within 30 days of USDA’s Conditional Commitment date.

Bankruptcy Chapter 7 and 13 must be discharged. The borrower(s) may not currently be in bankruptcy.
Judgments/Liens All outstanding judgments and liens must be paid.
Foreclosure / Deed-in-lieu Subject property may not have an active foreclosure.
Credit Report A tri-merge mortgage only rating for subject property with credit scores will be used. Not required.
Mortgage History 0x30 in the previous 12 months. Must have evidence of payment history over the previous 12 months. No exceptions. A mortgage-only credit report or
servicing verification (FiServ) is acceptable

INCOME/ASSETS
Income Documentation Income for all household members is required to determine if household income is under the USDA moderate income area limit. Income documentation is not used to calculate qualifying ratios.
Annual Income Limits Annual income is the basis for determining adjusted income. Annual income includes the total gross income of the borrower, co-borrower, and any otheradult (age 18 and up) household members, any amount anticipated to be received from a source outside of the family during the 12-month period, and all
amounts derived during the 12-month period from assets to which any member of the family has access.

If a cost of living allowance or a proposed
increase in income has been estimated to be in effect prior to the first month’s mortgage payment due date, this amount must be included as income. For
annual income, count only the first $480 of earned income from adult full time students who are not the borrower, co-borrower, or spouse.
Rental income is included regardless of duration. Include total rental real estate income reported on most recent IRS form 1040 Schedule E for previous 12
months.

If no schedule E, cancelled checks, money order receipts, bank statements, or other documents may be used to support rent amounts received

 

The USDA has announced effective October 1, 2016:

  • Reduction in the Upfront Guarantee Fee: the upfront guarantee fee for purchase and refinance transactions will decrease from 2.75% of the loan amount to 1.00% of the loan amount.
  • Reduction in the Annual Fee: The 0.50% annual fee will also decrease to 0.35%.

The new fee structure must be used for loans submitted in GUS on or after, Thursday, September 1, 2016.

Contact your Account Executive for more information on the fee changes or our USDA Streamline Assist Program.

 

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Joel Lobb
Senior  Loan Officer
(NMLS#57916)
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
Kentucky USDA and Rural Housing Guaranteed Home Loan Program
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.

100% Financing for Rural Home Loans in Kentucky

100% Financing for Rural Home Loans in Kentucky 
 
Kentucky USDA Rural Development Housing Zero Down
USDA Home Loans : 100% Financing Kentucky USDA Rural Development Housing Zero Down
Kentucky USDA Mortgage Loans
Kentucky Single Family Housing Guaranteed Loan Program

 

  • 100% financing, no down payment is required for the Rural Development Guarantee 502 Program in Ky. 30 Fixed 30 Year Rates only.
  • Qualifying ratios are 29% for housing costs and 41% for total debt. Borrowers may request an exception to exceed these ratios when strong compensating factors are identified.
  • No Max. Purchase Price.
  • Gift/Grant or Seller Concessions are allowed.
  • Not limited to Kentucky first time home buyers. Typically cannot own another home when using the RHS Ky Mortgage Loan Program. 
  • Income Restrictions Apply by Kentucky Counties with most counties being limited to $75k for a household family of four, or up to $98k for a household family of 5 or more.
  • Seller Concessions up to 6% allowed or up to appraised value. 
  • 640 Middle Credit Score is needed for an automated approval through GUS, but can go lower on credit scores to 620 with compensating factors, such as, verified 12 month rent history with no lates, 2 months reserves or more, limited debt to income ratios of 31 and 43% respectively with no lates in last 12 months. 
  •  

     
    Joel Lobb 
    Senior  Loan Officer

    (NMLS#57916)
     
     

     phone: (502) 905-3708
     Fax:     (502) 327-9119
     
     Company ID #1364 | MB73346

Kentucky Rural Housing USDA Loan Changes for October 1, 2014 to Annual Guarantee Fee MI

USDA/Rural Development.  The Annual Guarantee Fee is set to INCREASE October 1.
USDA/Rural Development. The Annual Guarantee Fee is set to INCREASE October 1.

The Kentucky USDA/Rural Development loan Annual Guarantee Fee is set to INCREASE October 1. 2014.  Mark your calendar and prepare your processors for this change.  Any loans that will be sent to Kentucky Rural Housing  USDA for Commitment 10/1/14 or after will need to have this fee showing properly.  Which translates to loans that you start in September that are anticipating a conditional commitment being issued October 1 or after, will need the proper fee disclosed for us to send to USDA.  Please understand that this may hold up the file from being sent to USDA in a timely manner.

Please note that the Kentucky Rural Development Upfront Guarantee Fee is not changing and will remain at the current 2% rate.  The new Annual Fee will be increased to .50%.  The terms currently in place regarding the fee remain the same.  It will continue to be based on the unpaid principal balance and remain for the life of the loan.

In the case that a loan was obligated prior to October 1, but there is a change to the loan requiring it to go back to RD for a new Commitment, the borrowers will be subject to the new annual guarantee fee amount. 

Adverse credit is listed in section 1980.345(d)(1). If a manually underwritten loan
is approved by the underwriter with any indicators of adverse credit, the underwriter
must document a credit waiver on the underwriting analysis to establish the
applicant’s intent for good credit. The applicant must provide the lender with
evidence to explain how the circumstances of the adverse credit meet the
requirements of 1980.345(d)(3)(i).

The evidence must support the adverse credit
was:

1.) temporary in nature,

2.) beyond the applicant’s control and

3.) the circumstances contributing to the adverse credit have been removed . Evidence
presented by the applicant must be retained in the lender’s permanent loan file. A
properly documented credit waiver will explain the details surrounding the adverse
credit to support the rational of the underwriter for their loan approval decision.
Exception: Manually underwritten loan files and GUS loans that receive a “Refer”
or “Refer with Caution” underwriting recommendation:

Credit scores of 680 and above: A documented credit waiver from the lender must
be submitted to RD. The supporting documentation from the applicant(s) is not
required to be submitted to RD. This documentation must be retained in the
lender’s permanent case file, available for future compliance reviews.

Credit scores of 679 to 581: The documented credit waiver and supporting
documentation must be submitted to RD and retained in the lender’s permanent case
file.
Credit scores for 580 and below: Lenders should not approve loans with credit
scores of 580 and below if the loan exhibits any of the indicators of unacceptable
credit listed in section 1980.345(d)(1).

GUS “Accept” loans that have adverse credit accounts selected as “omit” by the
underwriter do not require a documented credit waiver to be submitted to RD.
Lenders are responsible to retain documentation provided by the applicant to
support their data entries in GUS. Lenders should enter comments in the “Notes”
section to support the omission of any debts on the “Asset and Liabilities”
application page.

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

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