I am a Kentucky based USDA Mortgage Lender that has originated over 300 KY Rural Housing Mortgage Loans in Kentucky
Tag: Elizabethtown Kentucky
1-4 Persons: $74,150
5+ Persons: $97,900
1-4 Persons: $110,650
5+ Persons: $146,050
Kentucky USDA Direct Loans are intended for low- and very-low-income applicants. Direct loans are processed by the USDA and are tailored for people with incomes typically below 80% of the median income in their area.
Kentucky USDA Guaranteed Loans are more accessible to a broader range of incomes and are processed by local lenders. They are suited for moderate-income families and typically support incomes up to 115% of the median income in their area.
| Topic | KY USDA Direct Loan | KY USDA Guaranteed Loan | KY Conventional Mortgage |
|---|---|---|---|
| Income limits | Yes, low income | Yes, moderate income | None |
| Who holds the loan? | USDA | Private lender | Private lender |
| Interest rate | set below market rate – with subsidy-current rate is 4.625% | Market rate | Market rate |
| Mortgage insurance | None | 1% upfront, .35% annually | Yes, if less than 20% down |
| Down payment | $0 depending on assets | $0 | Minimum 3-5% |
| Loan term limits | as long as 38 years | 30 years | 30 years |
| Credit requirement | no minimum score – If lower, additional tradeline documentation is required | ≥ 580 to 620,preferred but no minimum score | ≥ 620 |
| Primary residence | Yes | Yes | No |
| New construction | Yes | Yes | Yes |
| Geographical restriction | Yes, rural only | Yes, rural only | No |
| Homebuyer education required? | Yes | No | Yes if you put down 3% |
| Home inspection required? | Yes and full report sent in | No | No |
| Avg. time to loan pre-approval / COE | Varies state to state | 2-5 days | 2-5 days |
| Subsidy recapture | Sometimes | No | No |
| Income generating property | No | No | Yes, rental and second home okay |
American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).
Out of Pocket Costs
$0 Down, 100% Financing for Kentucky USDA Rural Housing Loans
Home Qualifications
Single & Multi-Family Rural Homes and Condos that meet FHA Guidelines or Fannie Mae Guidelines
Competitive Interest Rates
Often Lower than Conventional Loans with lower mortgage insurance requirements than FHA and Fannie Mae.
Flexible Credit Guidelines
640 Credit Score Requirement* Can go lower possibly if the loan meets credit and debt to income ratio requirements.
*Scores below 640 may be eligible via manual underwriting.
Eligibility
USDA Defined Rural & Suburban Areas See may below for approved areas in Kentucky for USDA loans. 👇 click on link
https://kentuckyruralhousingusdaloan.blogspot.com/p/usda-property-eligibility-text.html
Closing Cost Opportunities
Roll Closing Costs into Mortgage and seller can pay for your closing costs and prepaids or if home appraises for more, can lump in the costs to higher appraised value.
Kentucky USDA Loan Eligibility Requirements
As with any loan, you must meet certain requirements to confirm USDA loan eligibility. To be an eligible candidate for a USDA loan, consider these general requirements:
Be a legal U.S. resident.
Show two years of income history.
Demonstrate a willingness to repay the loan as proven by no late payments or collections within the prior 12 months.
Have an acceptable debt ratio.
Possess an adjusted annual income of no more than 115% above the median income for the area as related to family size.
Be interested in a property in an area certified by USDA loan agreements.
Frequently Asked Questions
What’s a government-backed mortgage?
These mortgage loans are insured by an agency of the federal government, protecting the lender in the event a borrower can’t repay the debt. This significantly reduces the risk to the lender and may make it easier for borrowers to take out a loan by offering more lenient credit guidelines, interest rates, and down payment options.
What’s the difference between Kentucky USDA loans and other types of government-backed mortgage loans like Kentucky FHA loans?
While both are government-backed mortgages, Kentucky USDA loans are run by a different government agency than Kentucky FHA loans and has different application, underwriting, appraisal, lending amount, and mortgage insurance requirements. To be eligible for a Kentucky Rural Housing USDA loan, borrowers must be purchasing or refinancing property in rural areas that the USDA has defined as eligible.
Do I have to be a farmer or rancher to get a Rural Kentucky USDA loan?
No, despite what the name implies. As long as you meet the property and eligibility qualifications for a Rural Kentucky USDA loan, you can apply.
How do I know if a home is eligible for a USDA loan?
You can navigate to the link here👉 Rural Development Kentucky USDA’s eligibility website and type in the exact address of the home you want to purchase to find out if it’s in an approved area.
Are there maximum lending amounts for KY Rural Development USDA mortgage loans?
There are no set loan limits for USDA loans in Kentucky, but the maximum amount is set based on your ability to qualify for a USDA loan based on borrower’s income and work history over the last two years. and debt to income ratios. The max back-end debt ratio on USDA loans is set at 45.9% of a borrower’s gross monthly income while the front-end debt ratio centers around 28% to32% depending on credit score, ratios, assets.
Do USDA loans require private mortgage insurance (PMI)?
Yes, Kentucky USDA mortgage loans have an upfront funding fee of 1% currently with a monthly mortgage insurance premium of .35%– mortgage insurance is required by the USDA and pays your lender if you default on your loan.
What’s a USDA guarantee fee and annual fee?
These are fees involved during the USDA home loan process. The upfront guarantee fee is normally equal to 1% of the loan amount. It’s usually added to the initial loan amount and paid at closing. The annual fee is normally equal to 0.35% of the loan amount and some is financed into your loan.
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Have Questions or Need Expert Advice? Text, email, or call me below:
Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/
What is the interest rate and payback period?
Not the same as the USDA Rural Housing Guaranteed Program. These rates follow the secondary market and change daily like FHA, VA, Conventional Mortgage Loans and set by individual lenders based on lock period, credit score, loan amount, state, and other incentives
The USDA 502 Direct Loan Program helps low- and very-low-income applicants in federally-determined rural areas of the state obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. This payment assistance is a type of subsidy that reduces the mortgage payment. The amount of assistance is determined by the adjusted family income.
A number of factors are considered when determining an applicant’s eligibility for this loan. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
This is a zero down payment loan.
Click here for the current rate for the USDA 502 Direct Loan Program
Kentucky USDA Mortgage Lender for Rural Housing Loans 