I am a Kentucky based USDA Mortgage Lender that has originated over 200 KY Rural Housing Mortgage Loans in Kentucky, Put my expert advice to use. Kentucky Rural Development RHS loans give KY Rural Homebuyers a zero down mortgage loan with a low 30 year fixed rate loan. A Local Kentucky Rural Housing Mortgage Lender offering same day free approvals and credit report. This website is not affiliated with USDA or any other government agency. NMLS#57916 Equal Housing Lender Text or call today 502-905-3708 with your mortgage questions about USDA Rural Housing Loans in Kentucky. Free Pre-Approvals on most applications within the same day. Kentuckyloan@gmail.com
USDA Home Loans : 100% Financing Kentucky USDA Rural Development Housing Zero Down Kentucky USDA Mortgage Loans Kentucky Single Family Housing Guaranteed Loan Program
The program’s full name is the Kentucky USDA Rural Development Guaranteed Housing Loan program. Most people call them “USDA loans” or “Rural Housing Loans.” Kentucky USDA loans are insured by the U.S. Department of Agriculture and the program’s most popular feature is its option for “no money down” financing. Via the USDA, you can finance 100% of a home’s purchase price.
It is a common misconception that these loans are only for farm types of properties. In fact, income producing farms are not eligible for the program. 118 of Kentucky’s 120 counties contain areas that are eligible for program (The whole area of Jefferson & Fayette Counties currently are ineligible). Parts of Bullitt County, McCracken, Christian, Boone, Kenton, Campbell Counties are ineligible.
The property cannot be located within the city limits of a municipality with a population level determined by the U.S Census with a limit set by the USDA.
A Kentucky USDA loans are similar to other loan types including loans via Fannie Mae and Freddie Mac. Kentucky USDA loans differ in their down payment requirements (none required) and its simpler loan approval standards. Kentucky Rural loans can be used by first-time buyers and repeat home buyers alike. Homeowner counseling is not required to use the Kentucky USDA program. Mortgage insurance premiums are also often more attractive than many alternative financing types.
Since October 1, 2012, USDA mortgage insurance rates have been : •For purchases, 2.00% of loan amount upfront fee paid at closing •For refinances, 2.00% of loan amount upfront fee paid at closing •For all loans, 0.40% annual fee, based on the remaining principal balance
As a real-life example, then, a homebuyer with a $100,000 loan size in Kentucky would be asked make a $2,000 upfront mortgage insurance premium payment at closing, plus $33.33 in mortgage insurance monthly.
The upfront mortgage insurance is not required to be paid as cash and the amount is often added to your loan balance even above the purchase price and appraised value of the home. USDA is one of the only loan types that allows you to also finance in other closing costs and prepaid items above the purchase price up the appraised value if it is greater than the purchase price of the home.
Also similar to the FHA, the USDA requires mortgage insurance premiums to be paid until the loan is paid-in-full, or until the home is sold. USDA mortgage insurance rates are lower than those for a comparable FHA mortgages.assess a 1.75% upfront mortgage insurance premium and charge as much as 1.55% in MIP annually.
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For home buyers today, there are two mortgage programs which offer 100% financing. The first is the VA loan from the Department of Veterans Affairs. It’s available to most active military personnel and veterans nationwide.
The other program is the U.S. Department of Agriculture’s Rural Development Single Family Housing Loan Guarantee Program.
Sometimes called a “Rural Housing Loan” or a “Section 502” loan, today’s USDA financing isn’t just for farms. Because of the way the USDA defines “rural”, there are plenty of exurban and suburban neighborhoods nationwide in which USDA loans can be used.
Home buyers who buy a home in a qualified USDA area, and who meet USDA income eligibility requirements, can take advantage of the USDA’s low interest rate, no downpayment mortgage program..
What Are The Benefits Of A USDA Home Loan?
USDA mortgages are structured just like conventional ones via Fannie Mae and Freddie Mac. Where they…
Kentucky FHA, VA, USDA or other type of Kentucky mortgage, contact one of our Kentucky Loan Officers today and take the next step toward home ownership today!
Chairman of the House Appropriations Committee, Rep. Hal Rogers (R-KY), have voiced similar concerns about the president’s budget. At a committee hearing earlier this month, Rogers claimed the proposed reductions demonstrate USDA’s “lack of respect for our rural communities and the constituents who have made these programs successful.”
Rogers cited NRHC members Kentucky Highlands Investment Corporation, Frontier Housing and the Federation of Appalachian Housing Enterprises (FAHE) as effective and successful organizations that have used USDA’s Self-Help Housing and Section 502 Direct Loan programs to help low-income, working families become homeowners.
Chairman Rogers voiced concern about how the president’s proposed cuts would affect families who benefit from these programs. For example, Rogers highlighted the story of a woman who had been the victim of extreme domestic abuse who called Kentucky Highlands hoping to find a home for herself and her young daughter. With some financial counseling and guidance from Kentucky Highlands, she was approved for a $66,000 Section 502 Direct Loan. And with the Self-Help Housing program, she was able to build her own home for about $35,000 less than it would have cost to hire a contractor. That means that today, she is living in a home that she can afford that she built with her own hands.
USDA has reported that this program has helped the agency save $1.5 million to date. “Because of this demonstration program, one of my constituents and his family were able to secure a 502 Direct Loan in half the time it normally takes for USDA to process the loans themselves. And because of that loan, he now lives in a new, energy-efficient, green home in Rowan County (Kentucky),” commented Rogers.
Section 502 Direct Homeownership Loans provide fixed-rate mortgages – with up to 38-year terms and subsidized interest rates as low as just one percent – to help low-income rural families gain access to clean, decent and affordable housing.
Kentucky USDA Rural Housing Home Loans 1 100% Financing in Kentucky for Home Loans
The 2014 Income Limits for Kentucky USDA’s Single Family Guaranteed Loan Program were recently published. The good news is that the majority of all areas either increased or stayed the same.
Click Here to view the updated Kentucky Rural Housing USDA Income Limits for 2014 in your area.
KENTUCKY RURAL HOUSING INCOME ELIGIBILITY CALCULATION WORKSHEET
Kentucky USDA Rural Development Guaranteed Housing Loan
KENTUCKY INCOME ELIGIBILITY CALCULATION WORKSHEET USDA Rural Development Guaranteed Housing Loan
Borrower/s ____________________________________________________________
Date of Calculation__________ Total # household members = _________
State:_________________________ County:______________________________
List all non-exempt household income: (Per §1980.347)
Name of household member receiving the income
Source of income Monthly income from source
(Actual or Average)
X12
Annual income
from source
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
_________________________________________$___________ X12 $___________
Total Gross Household Income $______________ X12 $______________
Total Monthly Total Annual
Deductions from Annual Income: (Per § 1980.348) (Use when gross income is above income limit):
(1) Number of Minors living in household: ___X $480.00 (Under age 18) $_____________
(2) Number of Disabled/Handicapped Adults:___ X $480.00 (18 or over& NOT borrowers) $_____________
(3) Number of full time adult students: ____ X $480.00 (18 or over& NOT borrowers) $_____________
(4) Elderly Family: (borrower or co-borrower over 62) One time deduction of $400.00 $_____________
(5) Annual Child Care Expense $_____________
(6) Medical expenses (Elderly family only. Un-reimbursed >3% gross annual income) $_____________
TOTAL Annual Deductions (Sum of Line 1 thru Line 6) $_____________
Adjusted Gross Annual Household Income (Gross income less deductions) $____________
ADJUSTED COUNTY HOUSEHOLD INCOME LIMIT per Rural Development $____________
Kentucky USDA and Rural Housing Income limits are available at:
Deductions From
Annual Income Deduct For: Do Not Deduct For:__________________________________
$480 for each (A) Minors (under 18 years of age) Applicant/Borrower, Spouse, Foster Children, or member of the Children of Non-family members.
family residing in the household. (B) Adults (18 years of age or older) Applicant/Borrower, Spouse or Non-family members.
(C) Adults (18 years of age or older) Applicant/Borrower, Spouse or Non-family members.
who are full-time students.
______________________________________________________________________________________________________
$400 for elderly (D) Head, Spouse or Sole Member who family. is a senior citizen, disabled or handicapped and is the applicant/
borrower.
(E) Two or more unrelated senior Family, if one or more of those living in the house-
citizens, disabled or handicapped hold is not a senior citizen, disabled or handicapped.
persons living together, at least one
is the applicant/borrower.
(F) Survivors of deceased FmHA senior Survivors after remarriage of the deceased borrowers citizen, disabled or handicapped spouse. borrower who occupied the dwelling
at the time of the borrower’s death.
______________________________________________________________________________________________________
Care of minors 12 years (G) Anticipated expenses to be paid for (a) Amount paid in excess of amount received from of age or foster children care of member of the family to be such employment. or children of non-family gainfully employed. (b) Payments made to dependents of the applicant/ members. borrower.
(H) Anticipated expenses paid for care of
minor(s) to enable a member of the Payments made to dependents of the applicant/
family to further his/her education. borrower.
______________________________________________________________________________________________________
Aggregate medical (I) Planned general medical and dental Accumulated bills in excess of planned payments for expenses of the house- expenses of an elderly family for the ensuing 12 months. hold in excess of 3% of ensuing 12 months which are not gross annual income. covered by insurance (eg., medicines, medical insurance premiums, costs of nursing care, payment of accumulated medical bills, and cost of full-time nursing or institutional care which cannot be provided in the home).
(J) Reasonable attendant care and auxiliary Cost already deducted for same user member of apparatus and equipment expenses to elderly family. enable any handicapped/disabled
member of a household (not just an elderly family) to be employed.
_________________________________________________
I specialize in Kentucky FHA, VA, USDA, KHC, Jumbo and Fannie Mae mortgage loans in Ky. I have helped over 589 Kentucky families buy their first home and refinance their current mortgage for a lower rate; For the first time buyer with little money …view more
ACCEPTABLE INCOME FOR A KENTUCKY USDA AND RURAL HOUSING LOAN FOR THE 502 GUARANTEE LOAN
• For the Guaranteed Loan Program, the borrower’s adjusted income may not exceed 115% of the U.S. median income
• An income calculator is available on the Rural Development Web site at http://eligibility.sc.egov.usda.gov. From the home page, click “Single Family Housing” under “Income Eligibility.”
• The following are included in annual income to qualify for an RHS guaranteed loan:
− Gross amount of wages, salaries, overtime pay, commissions, fees, tips, bonuses and other compensation for personal services of all adult members of the household
− Net income from the operation of a farm, business or profession, interest, dividends and other net income of any kind from real or personal property
− Payments from social security, annuities, insurance policies, pensions, unemployment, workers compensation, alimony and/or child support and other types of periodic receipts.
− All regular pay, special pay and allowances of a member of the armed forces who is the
borrower or spouse whether or not that family member lives in the unit
− All rental income, regardless if using to qualify, must always be considered when calculating total household income for program eligibility as follows:
• The following sources are not included in annual income but will be considered in determining the ability to repay the loan:
− Income from minors
− Food stamp allotment
− Payments from foster care
− Irregular cash gifts
− Lump sum additions, such as capital gains, etc.
− Medical reimbursements
− Educational benefits
− Hazardous duty pay for military person exposed to hostile fire Note: Not every situation can be thoroughly addressed and this sellers guide is not all-encompassing. At
underwriter discretion, additional documentation may be required on any loan.
− Income exempted by Federal Statute (details noted in 1980-D Exhibit F). Adjustments to reduce
annual income include $480.00 for each minor child, full time student or a disabled member of
the family. $400.00 may be deducted from annual income for each family member over 62
years of age. An additional deduction may be calculated for certain expenses when added
together exceed 3% of gross annual income
