Kentucky USDA Guideline Changes for Income, Student Loans, and total debt ratios.

Kentucky USDA Guideline Changes for Income, Student Loans, and total debt ratios.

Updated HB-1-3555, Chapter 11, Ratio Analysis

The Single Family Housing Guaranteed Loan Program (SFHGLP) is pleased to announce revisions to technical HB-1-3555, Chapter 11, Ratio Analysis. An advance copy of the proposed changes was made available on July 20, 2021.  These changes became effective upon the recent issuance of a Procedure Notice (PN).  Below are the highlighted revisions:

Chapter 11- Ratio Analysis

11.2 B. The Total Debt Ratio:

  • Student Loans: Removed the phrase “the greater of” from Non-Fixed payment loans and added guidance regarding “when the payment is above zero” and “when the payment is zero”.
  • Revolving accounts: “with no outstanding balance” are not required to be closed.
  • Mortgages: Rental Property – Eliminated language regarding omission of mortgage debt.  Guidance for entry of rental income in GUS is provided in the GUS Lender User Guide under Section 4.1.4.1.1, Retained Investment Properties.
  • Added: Debt management plans:
    • Include the monthly payment amount due from the counseling plan.
    • Refer to Chapter 10 for guidance on credit exception and documentation requirements.

11.3 DEBT RATIO WAIVERS AND COMPENSATING FACTORS

A. Purchase Transactions: Debt Ratio Waivers

  • GUS Refer, Refer with Caution, and manually underwritten loans without GUS assistance:
    • Added: “The lender must document eligible compensating factors to support a debt ratio waiver.”
    • Added: “all” of the following conditions are met to the first paragraph.
  • Debt Ratio Waiver Request and Agency Approval:
    • Added: “The issuance of the Conditional Commitment for a Loan Note Guarantee represents Agency approval of the ratio waiver.”

B. Refinance Transactions: Debt Ratio Waivers

  • Added a bullet:  GUS files that receive a GUS recommendation of Refer, Refer with Caution, or are not supported by GUS, require debt ratio waivers, and supporting documentation must be submitted to the Agency.
  • Added: “The issuance of the Conditional Commitment for a Loan Note Guarantee represents Agency approval of the ratio waiver”. 

11.7 OBLIGATIONS NOT INCLUDED IN DEBT-TO-INCOME RATIOS

  • Added: “unless a payment plan is in place” to the second bullet concerning Federal, state, and local taxes.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.10602 Timberwood Circle Louisville, KY 40223Company NMLS ID #1364

click here for directions to our office
Text/call:      502-905-3708fax:            502-327-9119
email:
          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

Fiscal Year 2022 Conditional Commitment for Kentucky USDA Rural Housing Loans

Conditional Commitment for Kentucky USDA Rural Housing Loans


Fiscal Year 2022 Conditional Commitment NoticeWith the start of Fiscal Year 2022 (FY) soon approaching, please take a few minutes to review the Single-Family Housing Guaranteed Loan Program (SFHGLP) Conditional Commitment process. We hope you find this information helpful.FY 2022 will begin October 1, 2021 and ends at the close of business September 30, 2022.Fee Structures:An upfront guarantee fee of 1.00 percent and an annual fee of .35 percent will apply to both purchase and refinance transactions for FY 2022.Issuance of Conditional Commitments:At the beginning of each fiscal year, funding for the guaranteed loan program is not available for a short period of time – approximately two weeks. USDA anticipates this brief lapse in funding to continue for FY 2022. During the temporary lapse in funding, Rural Development – Rural Housing Service (RHS) will issue Conditional Commitments (Form RD 3555-18/18E) “subject to the availability of commitment authority” for purchase and refinance transactions. The issued Conditional Commitment will include the following:“Funds are not presently available for this Conditional Commitment. The Rural Development-Rural Housing Service (RHS) obligation under this Conditional Commitment is contingent upon the availability of an appropriation from which payment for contract purposes can be made. No legal liability on the part of RHS for any payment on this Conditional Commitment may arise until funds are made available to RHS for this Conditional Commitment and until the Lender receives notice of such availability, to be confirmed in writing by RHS.  More specifically, this Conditional Commitment is subject to RHS receiving sufficient funds (in the Program Funds Control System for the Single Family Housing Guaranteed Loan Program for the Type of Assistance and State of application submission) to fund this and all prior eligible outstanding applications in their entirety in the time and date order received. When such funds become available, RHS will notify the lender, and the guarantee process will continue subject to all applicable Agency regulations and conditions set forth in this Conditional Commitment. RHS will not reserve loan funds for applications in process during this timeframe. Lenders may close the loan as scheduled. The lender will assume all risk of loss for the loan until RHS obligates funds and the Loan Note Guarantee is subsequently issued. When the lender requests the Loan Note Guarantee, the lender must certify to the Agency, using the process provided in this commitment, that there have been no adverse changes to the borrower’s financial condition since the date the Conditional Commitment was issued by the Agency. The lender will submit the appropriate guarantee fee at the time they request the Loan Note Guarantee. The loan will be subject to an annual fee of 0.35 percent over the average scheduled unpaid principal balance of the loan. The Agency will not be able to issue the Loan Note Guarantee until these conditions are met and funding is obligated.”The application processing workflow is as follows:Rural Development will continue to accept complete guaranteed loan applications for purchase and refinance loan transactions from approved lenders;Rural Development will process, approve, and issue Conditional Commitments for those applications that are eligible “subject to the availability of commitment authority”;Lenders may close loans as scheduled;When funds become available, Rural Development will utilize the Electronic Customer File (ECF) system to advance the file to “Obligate Application” for Conditional Commitments that were issued for loans subject to the availability of commitment authority;Once loans are obligated, Rural Development may process lender’s Loan Note Guarantee requests when the loan closing is verified, and all conditions of the Conditional Commitment are satisfied;Lenders assume all loss default risk for the loan until Rural Development is able to obligate the loan and issue the Loan Note Guarantee.  Thank you for your participation in the USDA Single Family Housing Guaranteed Program. We look forward to serving you in FY 2022!

Posted by Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA  Email ThisBlogThis!Share to TwitterShare to FacebookShare to Pinterest

Conditional Commitment for Kentucky USDA Rural Housing Loans


Fiscal Year 2022 Conditional Commitment NoticeWith the start of Fiscal Year 2022 (FY) soon approaching, please take a few minutes to review the Single-Family Housing Guaranteed Loan Program (SFHGLP) Conditional Commitment process. We hope you find this information helpful.FY 2022 will begin October 1, 2021 and ends at the close of business September 30, 2022.Fee Structures:An upfront guarantee fee of 1.00 percent and an annual fee of .35 percent will apply to both purchase and refinance transactions for FY 2022.Issuance of Conditional Commitments:At the beginning of each fiscal year, funding for the guaranteed loan program is not available for a short period of time – approximately two weeks. USDA anticipates this brief lapse in funding to continue for FY 2022. During the temporary lapse in funding, Rural Development – Rural Housing Service (RHS) will issue Conditional Commitments (Form RD 3555-18/18E) “subject to the availability of commitment authority” for purchase and refinance transactions. The issued Conditional Commitment will include the following:“Funds are not presently available for this Conditional Commitment. The Rural Development-Rural Housing Service (RHS) obligation under this Conditional Commitment is contingent upon the availability of an appropriation from which payment for contract purposes can be made. No legal liability on the part of RHS for any payment on this Conditional Commitment may arise until funds are made available to RHS for this Conditional Commitment and until the Lender receives notice of such availability, to be confirmed in writing by RHS.  More specifically, this Conditional Commitment is subject to RHS receiving sufficient funds (in the Program Funds Control System for the Single Family Housing Guaranteed Loan Program for the Type of Assistance and State of application submission) to fund this and all prior eligible outstanding applications in their entirety in the time and date order received. When such funds become available, RHS will notify the lender, and the guarantee process will continue subject to all applicable Agency regulations and conditions set forth in this Conditional Commitment. RHS will not reserve loan funds for applications in process during this timeframe. Lenders may close the loan as scheduled. The lender will assume all risk of loss for the loan until RHS obligates funds and the Loan Note Guarantee is subsequently issued. When the lender requests the Loan Note Guarantee, the lender must certify to the Agency, using the process provided in this commitment, that there have been no adverse changes to the borrower’s financial condition since the date the Conditional Commitment was issued by the Agency. The lender will submit the appropriate guarantee fee at the time they request the Loan Note Guarantee. The loan will be subject to an annual fee of 0.35 percent over the average scheduled unpaid principal balance of the loan. The Agency will not be able to issue the Loan Note Guarantee until these conditions are met and funding is obligated.”The application processing workflow is as follows:Rural Development will continue to accept complete guaranteed loan applications for purchase and refinance loan transactions from approved lenders;Rural Development will process, approve, and issue Conditional Commitments for those applications that are eligible “subject to the availability of commitment authority”;Lenders may close loans as scheduled;When funds become available, Rural Development will utilize the Electronic Customer File (ECF) system to advance the file to “Obligate Application” for Conditional Commitments that were issued for loans subject to the availability of commitment authority;Once loans are obligated, Rural Development may process lender’s Loan Note Guarantee requests when the loan closing is verified, and all conditions of the Conditional Commitment are satisfied;Lenders assume all loss default risk for the loan until Rural Development is able to obligate the loan and issue the Loan Note Guarantee.  Thank you for your participation in the USDA Single Family Housing Guaranteed Program. We look forward to serving you in FY 2022!

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying https://kyfirsttimehomebuyer.wordpress.com/2021/08/18/effective-on-9-18-21-fannie-mae-announced-that-their-automated-underwriting-system-will-now-take-an-average-of-the-two-scores-for-qualifying/ via
@kentuckyloan
#creditscore #ficoscore #mortgage #homeloan #mortgagebroker

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying https://kyfirsttimehomebuyer.wordpress.com/2021/08/18/effective-on-9-18-21-fannie-mae-announced-that-their-automated-underwriting-system-will-now-take-an-average-of-the-two-scores-for-qualifying/ via @kentuckyloan #creditscore #ficoscore #mortgage #homeloan #mortgagebroker

View original post

Kentucky USDA Rural Housing Changes for Below

USDA Advance Copy Notice HB-1-3555 Chapter 11
USDA has announced that Chapter 11 of the HB-1-3555 will be updated and an advanced copy has been provided.  Changes will become effective after USDA issues a Special Procedure Notice.

  • Clarification was added that revolving accounts with no outstanding balance are not required to be closed.
  • USDA eliminated guidelines provided that a retained property that has been rented for 24 months or longer may be omitted from the DTI, and
  • Added guidance that the income received from rents may only be included in the repayment calculation if the property has been rented for 24 mo. or more.
  • Guidelines were added that monthly payment for borrowers in debt management plans must be included in the DTI.
  • The calculation guidelines for Non-Fixed Student Loan Payments were updated removing the requirement for the greater of calculation to be used and added guidance for when the payment amount is zero.
  • Additional guidance was added that compensating factors supporting Debt Ratio Waivers for manually underwritten loans must be documented.
  • Clarification was added that federal, state and local taxes don’t need to be included in the DTI unless there is a payment plan in place.

Refer to the Advance Copy Notice HB-1-3555 Chapter 11 and Chapter 11: Ratio Analysis

Kentucky Rural Housing USDA Program Mortgage Insurance Requirements

 

*Upfront guarantee fee will change from 2.75% to 1.0%
Annual fee will change from 0.50% to 0.35%

Kentucky USDA Loans are not just for small farm communities, but rather they can help many lower-income individuals or households purchase homes in many small cities, towns and townships!

USDA Loan Payment Calculator: Calculate Loan Guarantee Eligibility ...

 

 

Kentucky Rural Housing USDA Guarantee Upfront and Annual Fee Changes October 2016

 

Human hand with a pot watering growing money tree
Good News for Kentucky First Time Home Buyers Using the USDA Rural Housing Loan Program!

 

Kentucky RHS USDA Mortgage Insurance  Changes Below and Important Dates to Keep in Mind that could affect your loan closing and approval!

On October 1, 2016, both the upfront guarantee fee and annual fee for purchase and refinance loans will decrease. We are reducing the upfront guarantee fee from 2.75% to 1%, and the annual fee from .5% to .35%. The Guaranteed Underwriting System (GUS) will be updated on August 31, 2016, to allow lenders to select and underwrite using either the FY16 or FY17 fee schedule.

Due to the large volume of loan applications received daily, as well as current turn times, Kentucky will begin accepting applications using the new FY17 fee schedule on September 27, 2016

Applications using the new FY17 fee schedule submitted before September 27, 2016 will not be processed before October 1, 2016.

 September 27, 2016 will be the last day Kentucky will accept applications using the existing FY16 fee schedule. This will ensure all of these submissions are reviewed by the Agency prior to October 1.

 

 Most are familiar with USDA Rural Housing Loan Program  being a great no money down program available and it is not just for Kentucky first time buyers

But starting with commitments on October 1, the funding fee that is financed is going from 2.75% to only 1%!  On a $100,000 loan, a buyer saves about $1750!  In addition, the annual fee (like PMI) reduces from .5% to .35% which lowers the monthly payment by $15 a month on an $100,000 loan amount.

images (12)

 

Joel Lobb
Senior Loan Officer
(NMLS#57916
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). USDA 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.

 

KENTUCKY USDA RURAL HOUSING PROPERTY STANDARDS FOR THE GUARANTEED HOME LOAN PROGRAM

Kentucky based USDA Mortgage Lender
Kentucky based USDA Mortgage Lender

 

Sites must be modest and developed in accordance with any standards imposed by a State or local government. Therefore, the lender must verify that the following requirements are met at the time of application.

  •  Site size The site size must be typical for the area.  (Some acreage is fine as long as it is normal and the appraisal has comparable sales with similar acreage)

 

  • Income-Producing Buildings. The property must not include buildings designed and to be used principally for income-producing purposes. For example barns, silos, greenhouses, or livestock facilities used primarily for income producing agricultural, farming or commercial enterprise are ineligible. However, barn, silos, livestock facilities or greenhouses no longer in use for a commercial operation, used for storage, and outbuildings such as storage sheds are permitted if they are not used primarily for income producing agricultural, farming or commercial enterprise. A minimal income-producing activity, such as maintaining a garden that generates a small amount of additional income, does not violate this requirement. Home-based operations such as childcare, product sales, or craft production that do not require specific features are not restricted.  A qualified property must be predominantly residential in use, character and appearance.

 

  • Income-Producing Land. The site must not have income-producing land that will be used principally for income producing purposes. Vacant land or properties used primarily for agricultural, farming or commercial enterprise are ineligible. Sites that have income-producing characteristics (e.g. large tracts of arable land ready for planting) are considered income-producing property.  However maintaining a garden for personal use is not in violation of this requirement. A minimal income-producing activity, such as a garden that could generate a small amount of additional income does not violate this requirement. A qualified property must be predominantly residential in use, character and appearance.
  • Site Specifications. The site must be contiguous to and have direct access from a street, road, or driveway. Streets and roads must be hard surfaced or all weather surfaced and legally enforceable arrangements must be in place to ensure that needed maintenance will be provided.
  • Utilities. The site must be supported by adequate utilities and water and wastewater disposal systems.

 

 

Kentucky based USDA Mortgage Lender
Kentucky based USDA Mortgage Lender

 

Kentucky USDA Rural Development Fee Reduction

Kentucky USDA Rural Development  Fee Reduction
USDA has just announced that they are planning to lower both the Guarantee Fee and the Annual Fee for RHS loans in Fiscal Year 2017. Effective for loans receiving commitments from RHS on or after October 1, 2016, the following fee changes will be in effect
  • The Upfront Guarantee Fee will be lowered from 2.75% to 1.00% of the loan amount
  • The Annual Fee will be lowered from 0.50% to 0.35% of the average scheduled unpaid principal balance for the life of the loan

 

KY USDA Up-Front Guarantee Fee Increase Effective October 1st, 2015

2015 Kentucky Rural Housing USDA Changes

images (1)

KY USDA Up-Front Guarantee Fee Increase Effective October 1st, 2015

Any Kentucky RHS USDA loan that has not received conditional commitment from state Rural Development Offices in Lexington, KY by end of business on 9/30 will be subject to the 2.75% up-front guarantee fee increase.

Loan Purpose Loans obligated at RD on and after 10/01/2014 Loans obligated at RD on and after10/01/2015
Purchase Up-Front Guarantee Fee 2.0% 2.75%
Refinance Up-Front Guarantee Fee 2.0% 2.75%

First time home buyer loan in Louisville Kentucky
First time home buyer loan in Kentucky

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 
 Fax:     (502) 327-9119
 
 

 CONFIDENTIALITY NOTICE: This message is covered by the Electronic

KY USDA Homes for Sale

Address Bed/Bath Price  
274 SHELBY HURST RD 3/2 $28,000.00
WILLIAMSBURG, KY 40769   Real Estate Owned
 
2217 Brent Ann Drive 0/0 $10,000.00
Flatwoods, KY 41139   Real Estate Owned
 
390 Boggs Rd 3/1 $41,000.00
Oliver Hill, KY 41164   Real Estate Owned
 
111 Sun Valley Drive 3/1 $26,000.00
Edmonton, KY 42129   Real Estate Owned
 
168 Cedarbrook Ct 3/1 $58,000.00
Cynthiana, KY 41031   Real Estate Owned
 
14699 Hwy 460 W 3/1 $63,000.00
Ezel, KY 41425   Real Estate Owned
 
712 Falls Lane 2/1 $43,000.00
Grayson, KY 41143   Real Estate Owned
 
30 WELLS CT 3/1 $35,000.00
MONTICELLO, KY 42633   Real Estate Owned
 
127 Lewis Lane 3/1 $27,000.00
Grayson, KY 41143   Real Estate Owned
 
111 Pelfrey Rd 4/2 $108,000.00
Morehead, KY 40351   Real Estate Owned
 
14773 Highway 460 3/1 $56,000.00
Ezel, KY 41425   Real Estate Owned
 
217 W Lynn Street 3/2 $98,000.00
Georgetown, KY 40324   Real Estate Owned
 
6300 Bull Fork Rd 3/2 $118,000.00
Morehead, KY 40351   Real Estate Owned
 
205 Evergreen Drive 3/1 $84,000.00
Irvine, KY 40336   Real Estate Owned
 
526 Bailey Rd 3/1 $35,000.00
Annville, KY 40402   Real Estate Owned
 
207 McArthur Street 3/1 $42,000.00
Russelville, KY 42276   Real Estate Owned
 
12 S Jackson Street 3/1 $40,000.00
Sturgis, KY 42549   Real Estate Owned
 
1785 Hwy 882 3/1 $50,900.00
Ezel, KY 41425   Real Estate Owned
 
7342 State Rt 5 3/1 $26,000.00
Ashland, KY 41102   Real Estate Owned
 
6125 Springbrook 3/2 $100,000.00
Paducah, KY 42001   Real Estate Owned
 
29 Sylvan Drive 3/1 $108,000.00
Independence, KY 41051   Real Estate Owned
 
229 Paul Nora 3/2 $85,000.00
Campbellsburg, KY 40011   Real Estate Owned
 
2 Smith 3/1 $36,180.00 – GovtBid
Monticello, KY 42633   Foreclosure Sale
 
108 Morgan Lane 3/2 $49,580.00 – GovtBid
Hopkinsville, KY 42240   Foreclosure Sale
 
2610 SR 564 3/2 $25,125.00 – GovtBid
Mayfield, KY 42066   Foreclosure Sale
 
167 Crestview Dr 3/1 $16,750.00 – GovtBid
Mayfield, KY 42066   Foreclosure Sale
 
6465 Cherry Lane 3/1 $41,540.00 – GovtBid
Utica, KY, KY 42376   Foreclosure Sale
 
3580 State Route 125 3/2 $26,800.00 – GovtBid
Hickman, KY 42050   Foreclosure Sale
 
1015 Walnut Creek Dr 3/2 $84,090.00 – GovtBid
Barstown, KY 40004   Foreclosure Sale
 
410 Hillside Drive 3/1 $23,450.00 – GovtBid
Mayfield, KY 42066   Foreclosure Sale
 
124 Brookview Dr 3/1 $36,850.00 – GovtBid
Nicholasville, KY 40356   Foreclosure Sale
 
120 Alder Drive 3/2 $89,185.00 – GovtBid
Bardstown, KY 40004   Foreclosure Sale
 
107 Cedar Street 3/1 $13,400.00 – GovtBid
Fulton, KY 42041   Foreclosure Sale
 
271 Mildred Rd. 3/2 $39,530.00 – GovtBid
McKee, KY 40447   Foreclosure Sale
 
70 Little Cabin Creek Rd. 3/2 $55,370.00 – GovtBid
Vanceburg, KY 41179   Foreclosure Sale
 
225 Forest Hill Road 3/1 $53,985.00 – GovtBid
Greenville, KY 42345   Foreclosure Sale
 
1215 Shepard Way 3/2 $68,900.00 – GovtBid
Shelbyville, KY 40065   Foreclosure Sale
 
103 Rose Lane 3/2 $45,560.00 – GovtBid
Nicholasville, KY 40356   Foreclosure Sale

 
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