Tag: Conditional Commitment

New Credit Requirements for Kentucky USDA Rural Development Loans Starting 12/1/2014

TRADELINE REQUIREMENT:

One borrower must have 3 tradelines that have existed for 12 months. If this requirement cannot be met, an accept decision must be downgraded to a refer and treated as a manual underwrite.

VERIFICATION OF RENT:

Scores 680 and above OR GUS accept = No VOR required.

Scores 679 and below = VOR required.

COLLECTIONS:

Determine if the total outstanding balance of all collections accounts and charge offs of all applicants is equal to or greater than $2,000. Unless excluded by state law, collection accounts and charge offs of a non-purchasing spouse in a community property state are included in the cumulative balance of all collections and charge offs.

Remove all medical collections and medical charge off accounts from the total balance. Medical collections and medical charge off accounts must be clearly identifiable on the credit report.

If the remaining outstanding balance of collection accounts and charge offs are equal to or greater than $2,000, any of the following actions will apply:

Payment in full of all collection accounts and charge offs at or prior to closing.

Payment arrangements are made with each creditor for each collection account and charge offs remaining outstanding. A letter from the creditor or evidence on the credit report is required to validate the payment arrangements. The agreed upon monthly payment for each outstanding collection account and charge off will be included in the borrower’s debt-to-income ratio.

In the absence of a payment arrangement, the lender will utilize in the debt-to-income ratio a calculated monthly payment. For each collection and charge off utilize 5% of the outstanding balance to represent the monthly payment.

USDA-Home-Loan

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 RURAL HOUSING CHANGES TO ANNUAL USDA GUARANTEE FEE STRUCTURE

KENTUCKY RURAL HOUSING CHANGES TO ANNUAL USDA GUARANTEE FEE STRUCTURE

image004

ANNUAL GUARANTEE FEE
THROUGH 9/30/2014
EFFECTIVE 10/1/14
Purchase Transactions

.40%

.50%

Refinance Transactions

.40%

.50%

The new fee structure is applicable to all Conditional Commitments issued by Kentucky Rural Development Loans  on or after October 1, 2014.

Loan guarantee requests submitted to Rural Development (RD) on which a conditional commitment has not been issued by September 30, 2014, will be subject to the 2014 annual guarantee fee structure.

There is no exception to the new annual guarantee fee structure regardless of the date the file was submitted/received by RD . Inc. If the Conditional Commitment has not been issued before October 1, 2014, the file will need to be revised to reflect the correct fees and this will require re-disclosure, re-underwriting and resubmission to RD.

The Guarantee Fee change will take effect 10/1/2014.

 
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

 CONFIDENTI

Kentucky USDA and Rural Housing Changes May 1, 2013

CHANGES ARE COMING ……MAY 1, 2013!

 

PLEASE REVIEW THIS NOTICE TO MAKE SURE YOU ARE AWARE OF THE CHANGES.

 

Attached to this list serv is RD AN 4710. It contains new instructions for ratio waivers. A few key points have been highlighted below. Please read the complete AN prior to processing or underwriting loans to be submitted beginning May 1, 2013.

 

These guidelines only apply to manually underwritten loans, GUS “Refer”, and GUS “Refer with Caution” loans. These changes do not apply to GUS “Accept” loans or GUS “Accept” loans that require a “Full Documentation” loan submission.

 

  • Ratio waivers will only be granted for loans that the ratios do NOT exceed 32/44, and
  • The credit score of all applicant(s) must be 680 or greater, and
  • At least one of the acceptable compensating factors that is listed in the AN is identified and supporting documentation is provided to USDA Rural Development.
  • There will be NO exceptions to the defined ratio thresholds and minimum credit score requirements.

 

If a loan is submitted that does not meet the requirements listed above, it will be automatically rejected. Please ensure the ratios are calculated correctly and submit the required evidence with the loan submission.

 

PLEASE REMEMBER THAT WE CANNOT ACCOMMODATE RUSH REQUESTS.

 

Each loan specialist has the turn times listed on their out of office reply. If you know that your loan has not been in our office for the amount of time listed, please help us by not calling until that time has passed. If possible, please discourage borrowers, sellers, realtors, brokers, mothers, (you probably think we are kidding) aunts, and uncles, from calling and asking about loan status. It slows us down considerably. We would like to be able to turn the loans around faster and ask for your help.

 

There are a couple of other items that will help with getting a conditional commitment faster.

 

  • Please ensure that the complete1980-21 is revision 2/13. We are still getting the second page from an old version of the form.

 

 

  • Please include a copy of the HUD-1 if there has been a recently sold residence.
  • Please include a copy of the non-signing adult household member letter if there is no income.
  • Please include a payoff sheet for a refinance loan.
  • Due to the length of our turn times, if you are aware that the interest rate or loan amount will be changing within the 15 days that the loan is in our office, please let us know so that we can make the changes prior to issuing a conditional commitment and avoid processing the loan twice.

 

Thanks so much for your patience and help with these matters.

 

We look forward to working with you and appreciate the work you do to assist families become successful homeowners in rural Utah.

 

Sincerely,

 

Utah SFH Guaranteed Loan Program

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage] Kentucky USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012

 Kentucky USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012!
August 21, 2012
USDA Mortgage Purchase and Refinance Funding Update for Kentucky Homeowners and Buyers 
This announcement is to inform you of the current commitment authorities available for the Single Family Housing Guaranteed Loan Program (SFHGLP) loans.
Due to a change in Fiscal Year (FY) 2013 fee structure which goes into effect October 1, 2012, Lenders are urged to check with States to determine application processing time frames before underwriting applications.
 USDA Mortgage Refinance Funds:
FY (fiscal year) 2012 USDA Mortgage refinance funds have been exhausted.
We expect to run out of refinance commitment authority no later than Monday, August 20, 2012.  When USDA Mortgage refinance commitment authority is exhausted, refinance loan requests for which a conditional commitment (Form RD 1980-18) has not been issued will be returned to the lender and require underwriting under the fiscal year 2013 fee structure.  The FY 2013 fee structure will require a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.  At this time, the Agency will not issue conditional commitments “subject to” receipt of FY 2013 funding or commitment authority.
USDA Mortgage Purchase Funds:
Lenders are urged to be cognizant of the differing backlogs and processing time frames from state to state.  If it is determined unrealistic that the State will be able to review the USDA loan guarantee application and issue a conditional commitment before September 30, 2012, lenders are urged to underwrite the USDA Mortgage application at the FY 2013 fee structure.  The FY 2013 guarantee fee structure will require purchase and refinance loans to carry a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.
In addition, if the state where the property is located is experiencing longer processing time frames, lenders should advise the applicant accordingly when discussing interest rate locks and potential loan closing dates.
Joel Lobb (NMLS#57916)
Senior  Loan Officer
Key Financial Mortgage Co. (NMLS #1800)
107 South Hurstbourne Parkway
Louisville, KY 40222

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Posted By Blogger to Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage at 8/28/2012

Kentucky Single Family Housing Guaranteed Loan Program USDA and Rural Housing Changes 10/1/2011

Kentucky USDA/Guaranteed Rural Housing Program
Federal Budget Battle May Affect Funding Effective October 1, 2011
 
Despite changes in the fee structure effective October 1, 2011, Congress must appropriate funds for the Kentucky Guaranteed Rural Housing program. Assuming Congress passes legislation currently under consideration to keep the federal government fully functional, a number of days will be required to set up the authorized allocation for distribution.
 
Delays in the issuance of the Conditional Commitment should be expected. We  will be able to underwrite and condition the loan file. However, we will not be able to close and fund the loan until the Kentucky  Rural Housing Conditional Commitment is issued by the Local Kentucky RHS office.
 
We will notify our clients when RHS resumes the issuance of Conditional Commitments.

Kentucky Single Family Housing Guaranteed Loan Program USDA and Rural Housing
 
  

September 30, 2011 FISCAL YEAR 2012 COMMITMENT NOTICE!

Please find attached the “Fiscal Year 2012 (FY 12) Commitment Notice” for the Single Family Housing Guaranteed Loan Program. 

Beginning October 1, 2011, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority.” 

 The FY 2012 fee structure will be as follows:

2 percent up-front fee for purchase transactions;

1 percent up-front fee for refinance transactions

; and 0.3 percent annual fee based on the average scheduled unpaid principal balance of the loan, for both purchase and refinance loans transactions.

 Form RD 1980-21, “Request for Single Family Housing Loan Guarantee,” has been revised with an effective date of 10-2011.  The revised form incorporates the Annual Fee disclosures.  Therefore, beginning October 1, 2011 all “Request for Single Family Housing Loan Guarantee” must be submitted on the revised form.  The prior version of the form is dated 10-2010, and will not be accepted for FY 2012 Conditional Commitment requests. 

The revised form is attached to this communication and can also be obtained from the following link: http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/RD1980-21.PDF

As a reminder, the new Guarantee Fee and Annual Fee Calculator is available for download at:https://kentuckyusdaloan.wordpress.com/2011/08/30/kentucky-usda-rural-development-guaranteed-section-502-loans/

 Questions regarding this notice may be directed at 502-905-3708