Category: Swimming Pools for USDA Loans

Kentucky Rural Housing USDA Appraisal Requirements

  • Property must meet HUD’s minimum Property standards. i.e.: permanent heat source, functional kitchen, health & safety
  • Flips subject to UW review
  • Transferred appraisal – not allowed
  • Appraisal valid 120 days – 30 day extension possible
  • Swimming Pools – ok
  • Property eligibility – Located in a USDA designated rural area
  • New Construction Available
  • RHS Condos
    In order for a condo to be eligible for an RHS loan, it must appear on the FHA, VA, or FNMA approval list. Please see the Condos Guideline for more information.
  • Income Producing Properties and Outbuildings
    Minimal income production from property is allowable within reason (e.g. gardening) as long as the property remains predominantly residential in nature
    Outbuildings are permitted as long as they are no longer in commercial use. Interior photographs of all outbuildings will be required to determine usage
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|
 Company ID #1364 | MB73346

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). I lend in the following states: Kentucky

 

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KY USDA Rural Housing Update 2016

usdaloancalculator (1)
Effective for all loan commitments issued on or after March 9th,  Kentucky USDA Rural Housing Loan Program  is publishing an updated version of their 3555 handbook. The new handbook includes additional guidance and clarification on many previously vague subjects, including the following changes
USDA
Use the greater of one percent (1%) of the outstanding loan balance or the verified 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. These types of repayment plans are unacceptable to represent a long term fixed payment plan.

What are the property requirements for a USDA Rural Housing Loan in Kentucky?

 

USDA-Home-Loan

 

WHAT ARE THE PROPERTY REQUIREMENTS?

 

* The property must be a single family unit or an approved condominium unit.

* Homes must be located in designated rural areas. In Kentucky the following communities are ineligible: Jefferson County Kentucky, Fayette County KY, parts of Bullitt County, all though Shepherdsville and Mount Washington are okay for USDA Loans. Richmond KY, Paducah, KY, Hopkinsville, KY, and Bowling Green, Ky. Parts of Boone, Kenton and Campbell have eligible areas, please check website map below for more details

Rural Area Definition for USDA Housing Programs

The Agricultural Act of 2014 (Farm Bill) makes areas with population up to 35,000 and rural in character eligible for USDA Rural Housing Programs, with certain provisions. Changes to the eligible areas map based on the Farm Bill will be released on May 6, 2014, on the USDA Income and Property Eligibility Site. Select “Single Family Housing” under the Property Eligibility menu.

Stakeholders are advised that additional changes to eligible rural areas for USDA Rural Housing Programs as outlined in H.R.933, Consolidated and Further Continuing Appropriations Act of 2013 and the 2010 Census will take effect on October 1, 2014, barring further Congressional action. A preview of the “Future Eligible Areas” will be available on the USDA Income and Property Eligibility Site later this summer.

 

* Camps, existing mobile homes, and multifamily dwellings cannot be financed.

* Income-producing property cannot be financed.

* Homes may be new construction – stick built, modular or manufactured housing are all acceptable.

WHAT ARE THE APPRAISAL AND INSPECTION REQUIREMENTS?

* Standard appraisal documents are acceptable.

* The dwelling must be determined to be decent, safe, and sanitary. This can be verified by a home inspection report or

HUD Appraiser Certifies that Property meets HUD Minimum Requirements.

* Private water supplies must be tested for potability.

Location: Kentucky has 120 counties, and USDA is not allowed in the following KY Counties: Jefferson, Fayette (whole county)  and parts of  McCracken, Boone, Kenton, Campbell, Bullitt, Daviess, Warren, Franklin and Christian counties. The best thing to do on the location is tell me an address and I can look it up for you.

 
I have a website that is really good for USDA loans, located at http://kentuckyruralhousingusdaloan.blogspot.com/p/usda-rural-housing-loan-program.html  that may assist and educate you about the program.
 
 In order to get you pre-approved, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free. 
 
 Loan Checklist
The following is a list of documents that may be required to process your  mortgage loan:
  • One full month’s worth of pay stubs
  • Last 2 years W-2′s
  •  Last 2 years tax returns 
  • Last two months bank statements for all accounts
 
I don’t need originals, copies are fine. You can fax, email, or drop off at my office below . 
 
Let me know your questions. 
 
Thanks and look forward to helping you
 
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

Fill out my form!

 

Continue reading “What are the property requirements for a USDA Rural Housing Loan in Kentucky?”

Kentucky USDA Rural Home Loans : 100% Financing

Kentucky USDA Rural  Home Loans : 100% Financing

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

The program’s full name is the Kentucky USDA Rural Development Guaranteed Housing Loan program. Most people call them “USDA loans” or “Rural Housing Loans.” Kentucky USDA loans are insured by the U.S. Department of Agriculture and the program’s most popular feature is its option for “no money down” financing. Via the USDA, you can finance 100% of a home’s purchase price.

It is a common misconception that these loans are only for farm types of properties. In fact, income producing farms are not eligible for the program. 118 of Kentucky’s 120 counties contain areas that are eligible for program (The whole area of Jefferson & Fayette Counties currently are ineligible).  Parts of Bullitt County, McCracken, Christian, Boone, Kenton, Campbell Counties are ineligible.

 

The property cannot be located within the city limits of a municipality with a population level determined by the U.S Census with a limit set by the USDA.

A Kentucky USDA loans are similar to other loan types including loans via Fannie Mae and Freddie Mac. Kentucky USDA loans differ in their down payment requirements (none required) and its simpler loan approval standards. Kentucky Rural loans can be used by first-time buyers and repeat home buyers alike. Homeowner counseling is not required to use the Kentucky USDA program. Mortgage insurance premiums are also often more attractive than many alternative financing types.

Since October 1, 2012, USDA mortgage insurance rates have been :
•For purchases, 2.00% of loan amount upfront fee paid at closing
•For refinances, 2.00% of loan amount upfront fee paid at closing
•For all loans, 0.40% annual fee, based on the remaining principal balance

As a real-life example, then, a homebuyer with a $100,000 loan size in Kentucky would be asked make a $2,000 upfront mortgage insurance premium payment at closing, plus $33.33 in mortgage insurance monthly.

The upfront mortgage insurance is not required to be paid as cash and the amount is often added to your loan balance even above the purchase price and appraised value of the home. USDA is one of the only loan types that allows you to also finance in other closing costs and prepaid items above the purchase price up the appraised value if it is greater than the purchase price of the home.

Also similar to the FHA, the USDA requires mortgage insurance premiums to be paid until the loan is paid-in-full, or until the home is sold. USDA mortgage insurance rates are lower than those for a comparable FHA mortgages.assess a 1.75% upfront mortgage insurance premium and charge as much as 1.55% in MIP annually.

 
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

ualifying.

 

 

Mortgage News

For home buyers today, there are two mortgage programs which offer 100% financing. The first is the VA loan from the Department of Veterans Affairs. It’s available to most active military personnel and veterans nationwide.

The other program is the U.S. Department of Agriculture’s Rural Development Single Family Housing Loan Guarantee Program.

Sometimes called a “Rural Housing Loan” or a “Section 502” loan, today’s USDA financing isn’t just for farms. Because of the way the USDA defines “rural”, there are plenty of exurban and suburban neighborhoods nationwide in which USDA loans can be used.

Home buyers who buy a home in a qualified USDA area, and who meet USDA income eligibility requirements, can take advantage of the USDA’s low interest rate, no downpayment mortgage program..

What Are The Benefits Of A USDA Home Loan?

USDA mortgages are structured just like conventional ones via Fannie Mae and Freddie Mac. Where they…

View original post 525 more words

Kentucky USDA Loans | Rural Housing Loans Kentucky

Kentucky USDA Loans | Rural Housing Loans Kentucky.

via Kentucky USDA Loans | Rural Housing Loans Kentucky.

Swimming Pools and USDA loans

Swimming Pools for Kentucky USDA and RHS Rural Housing Loans Guidelines 2013

 

If you are purchasing a home using USDA financing, and the property has a swimming pool, there a specific guidelines that must be followed by the appraiser with regards to how the final appraised value is determined.

USDA will finance properties with pools, but they distinguish between above ground and in-ground pools.  If a pool or jacuzzi is above ground, there is no issue.  However, if the pool is an in-ground pool, then the underwriter will deduct the value of the pool from the final appraised value.

For example, if a property has a sales price of $200,000, and has an in-gound pool, the appraiser must find other comparable sales with swimming pools like the subject property.  If he or she determines the value of the pool is $10,000, then this amount will be deducted from the final appraised value of the property.  If the appraiser determines the value of the property is $210,000, then the USDA underwriter will reduce the value by the amount of the pool ($10,000) and the final value used for loan purposes will be $200,000.  If the appraiser determines the final value is at sales price, or $200,000 in this example, then the USDA underwriter will reduce the appraisal down to $190,000, and this is the value that will determine the final loan amount available to the borrower.

So as you can see, if the property appraises high enough, the deduction for the pool wont be an issue, as the appraisal will still be at or above the sales price.  However, if the property appraises at or near the sales price, the buyer could have an issue with a “low appraisal” after the value of the pool is deducted, even though the actual appraised value came in at or around the sales price.

When getting a USDA loan on a property with an in-ground pool, make sure the lender, agents and appraiser are aware of this guideline going in so they can try to address any potential issues surrounding the USDA guideline.

USDA Home Loan Information

If you are purchasing a home using USDA financing, and the property has a swimming pool, there a specific guidelines that must be followed by the appraiser with regards to how the final appraised value is determined.

USDA will finance properties with pools, but they distinguish between above ground and in-ground pools.  If a pool or jacuzzi is above ground, there is no issue.  However, if the pool is an in-ground pool, then the underwriter will deduct the value of the pool from the final appraised value.

For example, if a property has a sales price of $200,000, and has an in-gound pool, the appraiser must find other comparable sales with swimming pools like the subject property.  If he or she determines the value of the pool is $10,000, then this amount will be deducted from the final appraised value of the property.  If the appraiser determines the value of…

View original post 277 more words