What is your debt-to-income ratio?
How to calculate your front-end DTI for a Kentucky Mortgage Loan Approval
How lenders use your DTI for a Kentucky Mortgage Loan Approval
|Down Payment is not required||Borrowers without savings, or who wish to retain their savings qualify|
|100% financing||More Americans become homeowners|
|No reserves are required||Buyers do not need to provide bank statements|
|Expanded qualifying ratios||Buyers with satisfactory credit may qualify with higher Debt-to-Income ratios to accommodate high cost housing areas, etc|
|Seller is allowed to pay Buyer’s Closing Cost (ask Kentucky USDA Specialist for details)||Reduces out of pocket costs for Buyers|
|Low minimum credit score (no minimum credit score required but lenders will have overlays up to 620 to 640 minimums)||Buyers with non-traditional or no credit histories may qualify|
|Streamlined processing with 640 credit score||No explanations on credit with 640+ score|
|Generous income limits based on 115% US median (not HUD)||Deductions are available for dependents, daycare, elderly households, etc. to assist more individuals and families in qualifying|
|No maximum purchase price limit||Buyers choose the home that meets their needs and repayment ability|
|NOT just for first time buyers||All home buyers are eligible for benefits|
|Modular Homes may be eligible||Purchases only (Manufactured Homes are NOT Eligible)|
|Education/training substitute for job tenure||Income history for ratios is waived.|
|USDA is the lowest payment loan option for buyers wanting a FIXED Rate||Low upfront and monthly MI, very low 30 YEAR FIXED rates and very easy to qualify|
To be eligible, applicants must:
A Kentucky USDA Guaranteed Loan is a Government Insured 100% Purchase Loan. These loans are only offered in rural areas.
What is Considered a Kentucky Rural Area by the USDA?
Rural areas include open country and places with population of 10,000 or less and—under certain conditions—towns and cities. There is an automated rural area eligibility calculator for USDA home loans at: http://eligibility.sc.egov.usda.gov.
What is the Maximum Loan Amount for a Kentucky USDA Loan?
There is no maximum loan amount for a USDA rural mortgage. However, it is limited by the appraised value and repayment ability (determined by your household income).
Can Closing Costs be Financed into the Loan?
Yes, any difference between the contract price and the appraisal value can be used to finance normal closing costs for a Kentucky USDA mortgage.
What is a Kentucky USDA Loan Guarantee?
USDA Rural Development Single Family Housing Program serves as a safety net for mortgage lenders. The USDA provides the full faith and assurance of the U.S. government that any financial loss resulting from servicing the loan will be reimbursed in full up to an amount not exceeding 90% of the original loan amount.
All loss up to an amount not exceeding 35% of the original loan is fully reimbursed. Any loss amount exceeding the 35% is 85% reimbursed. This leaves the lender only 15% exposed on the loss amount above the 35% of original loan.
In the majority of cases, the total loss does not exceed 35% of the original loan and the lenders are fully reimbursed. This guarantee provides lenders an expanded level of protection against losses. The quality of this guarantee allows lenders to easily sell the loans on the secondary market.