Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Uncategorized

Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011


Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011.

via Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 100% Financing Zero Down, 502 Guaranteed Loan, Credit Bad, credit reports, Credit Waiver, Current USDA and RHS Guidelines, Debt Ratio and Deferred Student Loans, debt ratios, fico scores, USDA, USDA RURAL DEVELOPMENT DIRECT HOUSING LOANS

Kentucky USDA and Rural Housing Underwriting Update for November 2012


Kentucky USDA and Rural Housing Underwriting Update for November 2012

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. 

1)  Kentucky USDA loans and rural housing underwriting  is tightening up!  You are going to see us asking for more to make sure we have it to respond to USDA when they ask for it.  We don’t want to be caught shorthanded on these deals and be stuck waiting to get them closed (neither do you!) so to be reactive to the changes with USDA, you will find that we are conditioning for more than we used to.  To help us be on the ball with your USDA loans, be sure to include the following:

1)  30 days most recent paystubs showing a YTD amount

2)  VOE’s if the borrower is NOT employed in the same position for more than 2 years or the borrower has OT, Bonus or commission income.  We will recommend Written VOE’s   for the purpose of showing the borrower is in the same line of work!

3)  Assets – if your 1003 shows bank information and asset information then you must provide the most recent 2 statements to prove this information

4)  Collections & open judgments must show on your liabilities.  Please provide an LOX for all Derogatory credit  this LOX should show that the circumstances were temporary in  nature, beyond the applicant’s control and resolved to the best of their ability

5)  VOR‘s are required for all USDA loans.  USDA has been consistently requesting this information in the past 30 days.  For files above 640, a VOR will suffice.  For files under 640,     we will require 12 months cancelled checks.  If a VOR is not available due to the borrower living with family,  an LOX will be needed

6)  Paystubs for all income in the household regardless if they are on the loan or not. Must be most recent and 30 days worth to help determine actual income

7)  Garnishments or child support shown and if paying it we will require the court order. If receiving it, we need a 12 month history of receipt and court order

8)  W-2’s for the past 2 years for ALL jobs

9)  Tax returns if self employed or unreimbursed expenses are shown

10)  YTD P&L if self employed prepared by tax preparer and signed by borrower.

11)  1980-21 signed by borrowers

12)  Fully executed purchase contract

Remember – we cannot send a file to RD without an appraisal!!!  The appraisal must state that the property meets HUD Handbooks 4150.2 and 4905.1.

2)  Turn times for USDA in several states are extreme.  We understand your frustration with the delays and want to express to you that we are watching diligently for return commitments to push your files to closing.  If you could review your USDA loans with us and insure that all conditions are met….except for the CC…we can expedite these files ASAP when the commitment comes in.  If your file has been with us for over 30 days, please update the paystubs as ours will have expired!!!

Thank you for your attention and please let me know if you need me!

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
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Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Uncategorized

KENTUCKY RURAL DEVELOPMENT QUICK REFERENCE GUIDE


Logo of the USDA Rural Development office, par...
Logo of the USDA Rural Development office, part of the Department of Agriculture. (Photo credit: Wikipedia)

KENTUCKY RURAL DEVELOPMENT QUICK REFERENCE GUIDE

100% * NO MONEY DOWN LOAN and LOW “MI” * Seller Can Pay All CC’s
GENERAL INFO
• 29% PITI, 41% TD ratios on a manual underwrite
• (those ratios can be waived up to 32% PITI and 44% TD if every applicant on the loan has a 680 or higher credit score and you have a compensating factor)
• Debts with 6 months or more owed will be
counted
• Property must be located in eligible RD areas
• Land value cannot exceed 30% of total value
• Swimming pools are eligible. In-ground and above-ground pools are both fine, and there is no requirement to subtract the value of the pool on an existing home. You just cannot use repair or rehab money to put in a new pool.
• No substandard homes
• Existing (used) manufactured homes are eligible. That changed on May 5, 2025, and it applies in all 50 states including Kentucky. The unit has to have been manufactured within 20 years of your closing date, sit on a permanent foundation, never have been installed at another homesite, be at least 400 square feet, carry both the HUD certification label and the HUD data plate, and have no alterations made after it left the factory other than an engineered porch or deck. New units off a dealer lot are still eligible too.
• CAIVRS number(s) needed
ELIGIBILITY
• First time homebuyer not a requirement
• Income must be within RD limits
• Income must be adequate and stable
• Adequate ability to repay the loan
• Acceptable credit history
• Be without an adequate dwelling
• Cannot obtain conventional financing
• Citizen or permanent resident alien
• Owner occupied
• Legal capacity to incur debt
• Bankruptcy OK if discharged for 36 months
INCOME ELIGIBILITY
• All household income counted
• Overtime, bonuses, and commissions count, if
supported by history
• Child support counts –may be grossed up 25%
• Self-employment – (use IRS net income) – 2 year
history plus current information needed
• Same job or line of work for past 12 months
(some exceptions allowed)
• Written verification of SS, SSI, etc.
• Degree or certification can substitute for job time
• All income must be verified
GROSS INCOME DEDUCTIONS/ADJUSTMENTS
• $480 for each child under 18
• Over 18 counts if full time student living at home
• Actual child care expenses for children 12 or
younger if parents work or attend school
• $400 for applicant or co-applicant if disabled or
elderly
• Medical deductions may be considered for
disabled or elderly applicants (above 3% of gross
income
KEY POINTS
• No Down Payment
• 100% Guaranteed financing
• LOW MONTHLY “MI” — the USDA annual fee is 0.35% of your loan balance, well under what FHA charges, and you do not need the 3.5% down payment FHA requires.
• Terms—30 year fixed
• Upfront guarantee fee of 1.00% of the loan amount
• Refinance upfront guarantee fee is also 1.00% of the loan amount
• Appraised values can be exceeded by amount of
guarantee fee—up to 101% LTV
• How much credit review your file gets is driven by your GUS underwriting recommendation, not by a credit score tier. A GUS Accept means streamlined credit documentation. A Refer or Refer with Caution means the file gets manually underwritten with a full write-up. The old 680 / 679-640 / under 640 tiers are gone from the handbook — Attachment 10-A is now a topic-based Credit Matrix with no score tiers. The one score still written into policy is 680, which every applicant needs for a debt ratio waiver.
• Unlimited Gifts or Seller Contributions
• Down-payments accepted up to 19%
• Guarantee Fee is fully Tax Deductible in the year
it is paid
• No Loan Limit (Ratio Determined)
• Partner with other Funding Sources
• AUS System – GUS – USDA’s automated underwriting system
• Regular Program updates
• Monthly Newsletter by email
EXISTING DWELLINGS
• Satisfactory appraisal
• Thermal certification NOT required
• Well test
• Septic system certification
• Termite letter
NEW CONSTRUCTION
• Satisfactory appraisal
• Thermal certification
• Plan certification
• One year warranty on footings, framing, and final
inspection
• Termite Soil Treatment Certificate
• Well test
LOAN PURPOSES
• Purchase New
– Stick or Modular
– Manufactured (new from an approved dealer)
• Purchase Existing
• Stick, Modular, or Manufactured (used units allowed if they meet the 20-year rule above)
• Repairs/Rehab
• Refinance
• RD Direct Loans
• RD Guaranteed Loan
• Typical Loan Closing Costs
USDA Rural Development

RD PROGRAM – WEBSITES

Eligibility Website:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20in
come%20limits.htm

KY “MAPS”: http://www.rurdev.usda.gov/ky/maps.htm
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

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