February 12, 2016KY USDA Rural Housing Credit Report Update 2016Effective immediately, an applicant’s credit score may be validated with at least two eligible trade lines instead of three trade lines as previously required. Such trade lines consist of credit accounts (revolving, installment, etc.) with at least twelve months of repayment history reported on the credit report. Corresponding revisions to the 3555 Handbook will be posted on the USDA Rural Development’s Regulation and Guidance website on March 9, 2016. At least one applicant whose income or assets are used for qualification must have a valid credit report score or have at least two historical trade line references that have existed for at least 12 months to establish a credit reputation. For applicants without an established credit history and unable to establish the required number of eligible trade lines to validate the credit score, alternative methods may be used to evidence an applicant’s willingness to pay, such as a non-traditional mortgage credit report or multiple independent verifications of trade references per 7 CFR 3555, Section 3555.151 (i)(6). Non-traditional credit may not be used to enhance poor payment records or low credit scores. GUS applications receiving an “Accept” underwriting recommendation, but which fail to meet the credit score validation test using a traditional credit report, must be downgraded to a “Refer” by the lender. In these instances the use of a non-traditional credit history will be required in order to proceed.  Joel Lobb (NMLS#57916)
Senior Loan Officer American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
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 |
Category: USDA /Rural Housing Loan Offices in Ky
Kentucky USDA Streamline Refinance – USDA to USDA Refi
Kentucky USDA Streamline Refinance – USDA to USDA Refi
• Costs can NOT be rolled into loan, but NO appraisal rquired
• 640 Minimum Credit Score
• New Guarantee fee is 2.75%, new Annual MI is .5%
• Full Credit Qualifying – Income and assets must be stated, just as any r/t refinance
• 29/41 ratios, manually underwritten. NO GUS is run.
• Interest rate must be 100 bp lower than loan being refinanced (1 full point)
USDA “Pilot” Streamline Refinance Kentucky,
• 640 Minimum Credit Score
• Must have made timely mortgage payments for the 12 months period prior to the refinance
• A Rural Refinance Pilot loan may include the existing principal balance of the loan, accrued (non-delinquent) interest, eligible closing costs & pre-paids, plus the upfront guarantee fee. The applicable upfront refinance guarantee fee is 2.75%.
o Closing costs and pre-paids can also be paid in cash or through premium pricing.
o Discount points cannot be financed.
• The new interest rate must be a fixed rate 100 basis points below the current interest rate.
• The new term of the refinance loan must be 30 years
• An annual fee also applies. For FY 2012 the applicable annual fee is 0.50%
• The home must remain the borrower’s primary residence
• A new appraisal, new credit report, HUD Handbook determination and additional property inspections are not required. The original appraisal amount may be used from Guaranteed Loan System to process the loan.
• Income verification for all adult household members.
MUST MEET CURRENT INCOME ELIGIBILITY REQUIREMENTS.
o Salary Income – VOE – 24 month history plus most recent paystub or 2 pay check stubs covering most recent 30 days and W-2 for previous 2 years.
o Self-employed and commissioned borrowers or employed by a relative – 2 years tax returns required.
o All household income must be included in the total eligibility income, even if not on the loan.
• Ratio calculations are not required. Therefore debt ratio waiver requests will not be necessary.
KENTUCKY USDA UP-FRONT GUARANTEE FEE INCREASE
KENTUCKY USDA UP-FRONT GUARANTEE FEE INCREASE
As announced by Rural Development, the upfront Guarantee Fee for purchase and refinance loans will increase as follows for Rural Housing USDA loans in Kentucky:
|
|
EFFECTIVE 10/1/15
|
||
|
All Transactions
|
2.0%
|
2.75%
|
The new fee structure is applicable to all Conditional Commitments issued by Rural Development on or after October 1, 2015. Loan guarantee requests submitted to Rural Development (RD) on which a conditional commitment has not been issued by September 30, 2015, will be subject to the new, higher guarantee fee structure.
| Kentucky USDA Guaranteed Rural Housing Loans are one of the only “no money down” options available to home buyers today. Kentucky USDA loans aren’t just in the country. Many other areas fall within the USDA Kentucky Rural Housing designated areas, so opportunities may be closer than you think. To view eligible rural areas near you, CLICK HERE to access the USDA lookup tool on their website. This program is very attractive to low-to-moderate income buyers: |
|
| —
|
Kentucky Rural Development Has Funds Available for Rural Housing Loans in Kentucky for 2015
Kentucky USDA Loans | Rural Housing Loans Kentucky
Kentucky USDA Loans | Rural Housing Loans Kentucky.
via Kentucky USDA Loans | Rural Housing Loans Kentucky.
Can I get an USDA Mortgage Loan after bankruptcy?
Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentucky USDA loan application.
Joel Lobb
Senior Loan Officer
Senior Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
phone: (502) 905-3708
Fax: (502) 327-9119
Company ID #1364 | MB73346
Kentucky USDA Mortgage Lender for Rural Housing Loans 