Category: SFH Direct property

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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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

usda-california-rate-quote (1)
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:

 7082d70c873710d4836b26accba03907

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

 

.
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.

 

gs

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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Kentucky USDA Loans | Rural Housing Loans Kentucky

Kentucky USDA Loans | Rural Housing Loans Kentucky.

via Kentucky USDA Loans | Rural Housing Loans Kentucky.

An Introduction to Rural Housing Development Guaranteed Rural Housing Program

 

An Introduction to Rural Housing Development  Guaranteed Rural

Kentucky USDA Guaranteed Rural Housing Home Loans
USDA guaranteed loans are designed to make home ownership possible for low- and moderate-income families. Offered through USDA Rural Development, these loans feature:
  • No down payment requirement
  • Low monthly mortgage insurance premiums
  • Flexible credit and qualifying guidelines
Eligibility requirements include (but are not limited to):
  • Borrowers must not currently have adequate housing
  • Borrowers must occupy the purchased home
  • Homes must be in a residential Rural Development eligible area
For more information and to apply for an Kentucky FHA, VA, USDA or other type of Kentucky mortgage, contact one of our and take the next step toward home ownership today!

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Housing Program

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RHD has several online resources to assist you with learning the eligibility rules and the calculations for the guarantee fees.
· Income and property eligibility: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=…
· USDA Lender Interactive Network Connection (LINC) website for training and job aids: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do
· The Guaranteed Underwriting System (GUS): https://www.eauth.usda.gov/MainPages/index.aspx
· Underwriting and Loan Closing Documentation Matrix: http://www.rurdev.usda.gov/SupportDocuments/PR_UW_Loan_Closing_Matrix_Do…
· Rural Development Administrative Notices (ANs), which are RHD’s updates to their guidelines: http://www.rurdev.usda.gov/rd-an_list.html

The GRH program is similar to a mortgage insurance program. The borrower may purchase a home at 100% LTV based on the appraised value on a 30 year fixed rate loan. The one time, upfront guarantee fee can be added to the loan as well. As a result, the total LTV on GRH loans is often between 100% – 103%. In addition to this upfront fee, the borrower will have monthly insurance premiums that are added to their qualifying housing expenses.

USDA Rural Housing Map for Ineligible Cities in Kentucky for Housing Loans.  Areas including are Louisville,  Lexington, Paducah, Richmond, Hopkinsville, Owensboro, and Bowling Green KY

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Eligible Cities are Back!A Continuing Resolution has passed allowing RHS to refer back to the 2000 census data for eligible areas.  This will allow the following eight Kentucky cities to remain eligible until January 2014:  Bardstown, Burlington, Elizabethtown, Georgetown, Independence, Nicholasville, Shelbyville, and Shepherdsville.  This is good news as implementation of the 2010 census data has been put on hold again.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
text or call 502-905-3708 cell

 

USDA Rural Housing Map for Ineligible Cities in Kentucky for Housing Loans.  Areas including are Louisville,  Lexington, Paducah, Richmond, Hopkinsville, Owensboro, and Bowling Green KY

(areas in yellow are not eligible for Kentuck USDA Mortgage Loans for 2017)

click on image to enlarge the area for more detailed map

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The United States Department of Agriculture has created a special home buyer opportunity for Americans that live in rural areas. These home buying programs were designed to increase homeownership amongst lower and middle income families that live in smaller sized cities, towns, and remote areas.

What makes these loans so special?

  • No Down Payments – USDA loans are one of the only home mortgages that allow someone to buy a home without putting any money down. In fact, the only other way someone can finance 100% of their home purchase is if they are in the military or a veteran. Even someone with perfect credit, long job history, and plenty of savings/assets can not qualify for 0 down on a home loan. This is a unique and very special aspect of USDA home buyer loans.
  • Lower PMI costs– Private Mortgage Insurance, also known as “PMI” is much lower on USDA loans than FHA or conventional mortgages. This can save you a lot of money.
  • Reduced Interest Rates The interest rates are lower on USDA loans, which results in lower payments, and plenty of money saved overtime.

Would You Like to Get Prequalified or Apply For a USDA Loan Now?
Click Here to Get Pre-Approved for a USDA Loan

How to Qualify for a USDA Loan

The best way to find out if you qualify for a USDA loan is to speak with one of our USDA specialists. It is easy to find out if you are eligible and usually only takes a few minutes. There are some basic qualification guidelines that the Department of Agriculture has set up which will help you have an idea if you can get a USDA loan.

  • Property Eligibility – The home you want to finance with a USDA loan must be an eligible property. You can not buy any home you want, it must be a designated property. You can look up homes in certain areas, or you can search by address on the USDA website.
  • Job History – Similar to all other mortgage loans, a two year work history is required.  You must show that you have been consistently employed for the past two years straight in order to qualify for USDA financing.
  • Income Limits – You must not make over a certain amount in order to receive a USDA mortgage. This amount varies by location so you will need to look up your specific counties income limits.
  • DTI Ratio– One of the main ways which determines if you will be approved or not is your debt-to-income ratios. While you must not make too much money, you also must not have too much debt. Your debt-to-income ratio is how much monthly debt you have (only those debts which show on your credit report are counted) compared to your bring home income. So if your household income is $4,000/month, and your currently monthly debts (excluding rent), combined with your new mortgage payment are $1,500/month, this would equal a 37.5% DTI ratios (this was calculated by taking $1,500 and dividing it by $4,000).
  • Credit Score – The minimum credit score varies from lender to lender, but most want to see at least a 640 credit score for you to be approved.
  • Mortgage Insurance – USDA loans have their own version of mortgage insurance. It is called the “Guaranteed Fee” and works similarly to how FHA loans have upfront and monthly mortgage insurance premiums (MIP). With USDA loans, there is a 1.0% upfront guarantee fee, and a 0.350% annual guarantee fee that is divided into 12 payments each year. The amount of your annual fee (paid monthly) adjusts each and goes down as your loan balance does. Use our USDA calculator to get an idea of what your monthly payment will be:

 

What Are the USDA Programs That Exist?

The USDA has two primary loan programs that exist. This includes direct loans and guaranteed loans.

  • Direct Loan – These are loans made directly by the government. You do not have to go through a mortgage lender, but instead you apply with the Department of Agriculture.  The direct loan is named the USDA 502 Direct Loan.
  • Guaranteed Loans – Guaranteed loans are those processed and closed by a USDA mortgage lender.  This program is called the USDA 502 Guaranteed Loan. The USDA backs the loan, but does not issue the loan themselves.

The difference between these two, aside from who provides the financing, is eligibility requirements.  The USDA 502 direct loan is geared more towards lower income families that may have issue obtaining a loan from a mortgage lender.  The USDA 502 guaranteed loan allows for more borrowers, including those with more income, to get a USDA loan.  Some applicants may be able to get a direct or guaranteed loan.  When you speak with a mortgage representative, they will help you identify which programs are available to you.  You can then compare loan terms of any mortgage you qualify for.

How to Apply for a USDA Loan

It is very easy to apply for a USDA loan. In fact, we can prequalify you over the phone. The best way to apply is to request a free USDA loan consultation and a loan specialist will contact you. All we need for an initial pre qualification is for you to share some basic information and we can inform you of your eligibility.

Would You Like to Get Prequalified or Apply For a USDA Loan Now?

USDA Mortgage Questions and Answers

Are USDA loans only for farms and agricultural properties?
This is a very common question and something that many people wonder about since it is the Department of Agriculture that backs these loans. It is actually the complete opposite though. USDA loans are meant for residential homes in rural areas, not agricultural or farmland.

Can you buy a farm with a USDA?
USDA loans are strictly for residential properties, so no farm or land that is used for agricultural purposes are allowed. In simplest words, the property can not be income producing.

If USDA loans are for rural properties does that mean they are not available near cities?
Surprisingly this is not the case either. Another misconception about the USDA home buying program is that the loans are exclusively for homes in remote areas. There are actually plenty of eligible homes just outside of various urban/suburban areas. The best way for you to get an idea of what type of home you can buy, and where, is to use the USDA property eligibility search.

Can I buy an investment property with a USDA loan?
No, you may only use a USDA loan for a home that you personally occupy as the owner.

Can I finance the loan costs into the loan?
Yes, you can finance the closing costs and the upfront mortgage insurance into the loan. This means that you do not pay the fees out of pocket at closing, but instead it is added to the loan amount. It is important to note that you will then be paying interest on these fees if they are wrapped into the mortgage. Just some “food for thought” when you decide if that is something you want to do.

How much is mortgage insurance on USDA loans?
There are two types of mortgage insurance on USDA loans. This includes both upfront mortgage insurance and what is called the “annual fee”. The upfront amount is 1.00% of the loan amount. This can be added to the loan amount (as described in the question above). The “annual fee” is divided into your monthly payments. This fee is 0.35% of the loan balance (recalculated each year). So the amount goes down as you pay your mortgage. The annual fee of 0.35% is divided into 12 and added to the monthly payments. This is cheaper than FHA MIP (mortgage insurance premiums), as well as the PMI amounts on VA and conventional loans.

Do I have to be a first time home buyer?
The good news is you do not have to be a first time buyer. The only stipulation is that it must be your primary residence. So you must not currently own a home to be able to get a USDA loan.

What is the loan limits? How much can I borrow?
USDA loan limits adhere to the Fannie Mae / Freddie Mac conforming loan limits. For a single family residence, this amount is $417,000 in most areas of the county


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.