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


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.


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

Scores 679 and below = VOR required.


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.


Joel Lobb
Senior  Loan Officer

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346




THROUGH 9/30/2014
Purchase Transactions



Refinance Transactions



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

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346


Kentucky USDA and Rural Housing Changes May 1, 2013





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.




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.




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

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