Upfront guarantee fee will change from 2.75% to 1.0% Annual fee will change from 0.50% to 0.35%-Huge Savings for Kentucky Home Buyers using the Rural Housing USDA Program

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*Upfront guarantee fee will change from 2.75% to 1.0%
Annual fee will change from 0.50% to 0.35%

 

Kentucky USDA Loans are not just for small farm communities, but rather they can help many lower-income individuals or households purchase homes in many small cities, towns and townships!

 

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kentuckyloan@gmail.com
Call or Text 502-905-3708 with your KY USDA Rural Housing Questions

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Kentucky Rural Development Has Funds Available for Rural Housing Loans in Kentucky for 2015

Kentucky Rural Development Has Funds Available for Rural Housing Loans in Kentucky for 2015.

via Kentucky Rural Development Has Funds Available for Rural Housing Loans in Kentucky for 2015.

 

 

Kentucky Rural Housing USDA Loan Changes for October 1, 2014 to Annual Guarantee Fee MI

USDA/Rural Development.  The Annual Guarantee Fee is set to INCREASE October 1.
USDA/Rural Development. The Annual Guarantee Fee is set to INCREASE October 1.

The Kentucky USDA/Rural Development loan Annual Guarantee Fee is set to INCREASE October 1. 2014.  Mark your calendar and prepare your processors for this change.  Any loans that will be sent to Kentucky Rural Housing  USDA for Commitment 10/1/14 or after will need to have this fee showing properly.  Which translates to loans that you start in September that are anticipating a conditional commitment being issued October 1 or after, will need the proper fee disclosed for us to send to USDA.  Please understand that this may hold up the file from being sent to USDA in a timely manner.

Please note that the Kentucky Rural Development Upfront Guarantee Fee is not changing and will remain at the current 2% rate.  The new Annual Fee will be increased to .50%.  The terms currently in place regarding the fee remain the same.  It will continue to be based on the unpaid principal balance and remain for the life of the loan.

In the case that a loan was obligated prior to October 1, but there is a change to the loan requiring it to go back to RD for a new Commitment, the borrowers will be subject to the new annual guarantee fee amount. 

Adverse credit is listed in section 1980.345(d)(1). If a manually underwritten loan
is approved by the underwriter with any indicators of adverse credit, the underwriter
must document a credit waiver on the underwriting analysis to establish the
applicant’s intent for good credit. The applicant must provide the lender with
evidence to explain how the circumstances of the adverse credit meet the
requirements of 1980.345(d)(3)(i).

The evidence must support the adverse credit
was:

1.) temporary in nature,

2.) beyond the applicant’s control and

3.) the circumstances contributing to the adverse credit have been removed . Evidence
presented by the applicant must be retained in the lender’s permanent loan file. A
properly documented credit waiver will explain the details surrounding the adverse
credit to support the rational of the underwriter for their loan approval decision.
Exception: Manually underwritten loan files and GUS loans that receive a “Refer”
or “Refer with Caution” underwriting recommendation:

Credit scores of 680 and above: A documented credit waiver from the lender must
be submitted to RD. The supporting documentation from the applicant(s) is not
required to be submitted to RD. This documentation must be retained in the
lender’s permanent case file, available for future compliance reviews.

Credit scores of 679 to 581: The documented credit waiver and supporting
documentation must be submitted to RD and retained in the lender’s permanent case
file.
Credit scores for 580 and below: Lenders should not approve loans with credit
scores of 580 and below if the loan exhibits any of the indicators of unacceptable
credit listed in section 1980.345(d)(1).

GUS “Accept” loans that have adverse credit accounts selected as “omit” by the
underwriter do not require a documented credit waiver to be submitted to RD.
Lenders are responsible to retain documentation provided by the applicant to
support their data entries in GUS. Lenders should enter comments in the “Notes”
section to support the omission of any debts on the “Asset and Liabilities”
application page.

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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With USDA Housing Programs, 3.4 Million Rural Homebuyers Own Their Future

With USDA Housing Programs, 3.4 Million Rural Homebuyers Own Their Future.

 

With USDA Housing Programs, 3.4 Million Rural Homebuyers Own Their Future

RHS Guarantee Fee Change

Beginning October 1st, RHS Guarantee fees will be changing as indicated in the following table:

Up-Front Guarantee Fee FY 2012 Through 9/30/2012 FY 2013 Effective 10/01/ 2012

Purchase Transactions (no change)

2%

2% Refinance Transactions 1.5% 2%

Annual Fee FY 2012 Through 9/30/2012 FY 2013 Effective 10/01/2012

Purchase Transactions

.30%

.40% Refinance Transactions .30% .40%

This is effective for all RHS loans which receive conditional commitments on or after October 1st, 2012 regardless of when the loan was submitted.

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

Groups Oppose Rural Development Cuts

Groups Oppose Rural Development Cuts.

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.


— 

 
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

Credit Scores Needed to qualify for a Ky Mortgage

 

What Credit Score do You Need to qualify for a FHA VA KHC USDA or Conventional Fannie Mae Kentucky Mortgage Louisville Kentucky
What Credit Score do You Need to qualify for a FHA VA KHC USDA or Conventional Fannie Mae Kentucky Mortgage Louisville Kentucky

Credit Scores Needed to qualify for a Ky Mortgage.

 

 

 

 

 

 

 

 

 

 

via Credit Scores Needed to qualify for a Ky Mortgage.

Bullitt County Kentucky USDA Home Loan and Rural Housing Loans for Bullitt County KY

Bullitt County Kentucky USDA Home Loan and Rural Housing Loans for Bullitt County KY.

via Bullitt County Kentucky USDA Home Loan and Rural Housing Loans for Bullitt County KY.

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USDA Lending Tip; Eligible Homes Locator Map

USDA Lending Tip; Eligible Homes Locator Map.

via USDA Lending Tip; Eligible Homes Locator Map.

 

Type of Mortgage Conventional Loan FHA Loans Conventional Financed MI Conventional Lender Paid MI
Purchase Price $300,000 $300,000 $300,000 $300,000
Mortgage Amount W/5% Down $285,000 $289,987 $289,547 $285,000
Interest Rate W/1.75 points 5.25% 4.50% 5.25% 5.75%
Principal Interest Payment $1,573.78 $1,469.90 $1,626.50 $1,663.11
Mortgage Insurace Payment $185.25 $118.75 Built into MTG Built into MTG
Total Mortgage Payment-P&I and Mortgage Insurance $1,759.03 $1,588.67 $1,626.50 $1,663.11
Monthly Saving Winner against all 3 read below

 

 

USDA Rural Housing Map for Ineligible Cities in Kentucky for Housing Loans.  Areas including are Louisville,  Lexington, Paducah, Richmond, Hopkinsville, Owensboro, and Bowling Green KY

Eligible Cities are Back!A Continuing Resolution has passed allowing RHS to refer back to the 2000 census data for eligible areas.  This will allow the following eight Kentucky cities to remain eligible until January 2014:  Bardstown, Burlington, Elizabethtown, Georgetown, Independence, Nicholasville, Shelbyville, and Shepherdsville.  This is good news as implementation of the 2010 census data has been put on hold again

click on image to enlarge the area for more detailed map

 

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The United States Department of Agriculture has created a special home buyer opportunity for Americans that live in rural areas. These home buying programs were designed to increase homeownership amongst lower and middle income families that live in smaller sized cities, towns, and remote areas.

What makes these loans so special?

  • No Down Payments – USDA loans are one of the only home mortgages that allow someone to buy a home without putting any money down. In fact, the only other way someone can finance 100% of their home purchase is if they are in the military or a veteran. Even someone with perfect credit, long job history, and plenty of savings/assets can not qualify for 0 down on a home loan. This is a unique and very special aspect of USDA home buyer loans.
  • Lower PMI costs– Private Mortgage Insurance, also known as “PMI” is much lower on USDA loans than FHA or conventional mortgages. This can save you a lot of money.
  • Reduced Interest Rates The interest rates are lower on USDA loans, which results in lower payments, and plenty of money saved overtime.

Would You Like to Get Prequalified or Apply For a USDA Loan Now?
Click Here to Get Pre-Approved for a USDA Loan

How to Qualify for a USDA Loan

The best way to find out if you qualify for a USDA loan is to speak with one of our USDA specialists. It is easy to find out if you are eligible and usually only takes a few minutes. There are some basic qualification guidelines that the Department of Agriculture has set up which will help you have an idea if you can get a USDA loan.

  • Property Eligibility – The home you want to finance with a USDA loan must be an eligible property. You can not buy any home you want, it must be a designated property. You can look up homes in certain areas, or you can search by address on the USDA website.
  • Job History – Similar to all other mortgage loans, a two year work history is required.  You must show that you have been consistently employed for the past two years straight in order to qualify for USDA financing.
  • Income Limits – You must not make over a certain amount in order to receive a USDA mortgage. This amount varies by location so you will need to look up your specific counties income limits.
  • DTI Ratio– One of the main ways which determines if you will be approved or not is your debt-to-income ratios. While you must not make too much money, you also must not have too much debt. Your debt-to-income ratio is how much monthly debt you have (only those debts which show on your credit report are counted) compared to your bring home income. So if your household income is $4,000/month, and your currently monthly debts (excluding rent), combined with your new mortgage payment are $1,500/month, this would equal a 37.5% DTI ratios (this was calculated by taking $1,500 and dividing it by $4,000).
  • Credit Score – The minimum credit score varies from lender to lender, but most want to see at least a 640 credit score for you to be approved.
  • Mortgage Insurance – USDA loans have their own version of mortgage insurance. It is called the “Guaranteed Fee” and works similarly to how FHA loans have upfront and monthly mortgage insurance premiums (MIP). With USDA loans, there is a 1.0% upfront guarantee fee, and a 0.350% annual guarantee fee that is divided into 12 payments each year. The amount of your annual fee (paid monthly) adjusts each and goes down as your loan balance does. Use our USDA calculator to get an idea of what your monthly payment will be:

What Are the USDA Programs That Exist?

The USDA has two primary loan programs that exist. This includes direct loans and guaranteed loans.

  • Direct Loan – These are loans made directly by the government. You do not have to go through a mortgage lender, but instead you apply with the Department of Agriculture.  The direct loan is named the USDA 502 Direct Loan.
  • Guaranteed Loans – Guaranteed loans are those processed and closed by a USDA mortgage lender.  This program is called the USDA 502 Guaranteed Loan. The USDA backs the loan, but does not issue the loan themselves.

The difference between these two, aside from who provides the financing, is eligibility requirements.  The USDA 502 direct loan is geared more towards lower income families that may have issue obtaining a loan from a mortgage lender.  The USDA 502 guaranteed loan allows for more borrowers, including those with more income, to get a USDA loan.  Some applicants may be able to get a direct or guaranteed loan.  When you speak with a mortgage representative, they will help you identify which programs are available to you.  You can then compare loan terms of any mortgage you qualify for.

How to Apply for a USDA Loan

It is very easy to apply for a USDA loan. In fact, we can prequalify you over the phone. The best way to apply is to request a free USDA loan consultation and a loan specialist will contact you. All we need for an initial pre qualification is for you to share some basic information and we can inform you of your eligibility.

Would You Like to Get Prequalified or Apply For a USDA Loan Now?

USDA Mortgage Questions and Answers

Are USDA loans only for farms and agricultural properties?
This is a very common question and something that many people wonder about since it is the Department of Agriculture that backs these loans. It is actually the complete opposite though. USDA loans are meant for residential homes in rural areas, not agricultural or farmland.

Can you buy a farm with a USDA?
USDA loans are strictly for residential properties, so no farm or land that is used for agricultural purposes are allowed. In simplest words, the property can not be income producing.

If USDA loans are for rural properties does that mean they are not available near cities?
Surprisingly this is not the case either. Another misconception about the USDA home buying program is that the loans are exclusively for homes in remote areas. There are actually plenty of eligible homes just outside of various urban/suburban areas. The best way for you to get an idea of what type of home you can buy, and where, is to use the USDA property eligibility search.

Can I buy an investment property with a USDA loan?
No, you may only use a USDA loan for a home that you personally occupy as the owner.

Can I finance the loan costs into the loan?
Yes, you can finance the closing costs and the upfront mortgage insurance into the loan. This means that you do not pay the fees out of pocket at closing, but instead it is added to the loan amount. It is important to note that you will then be paying interest on these fees if they are wrapped into the mortgage. Just some “food for thought” when you decide if that is something you want to do.

How much is mortgage insurance on USDA loans?
There are two types of mortgage insurance on USDA loans. This includes both upfront mortgage insurance and what is called the “annual fee”. The upfront amount is 1.00% of the loan amount. This can be added to the loan amount (as described in the question above). The “annual fee” is divided into your monthly payments. This fee is 0.35% of the loan balance (recalculated each year). So the amount goes down as you pay your mortgage. The annual fee of 0.35% is divided into 12 and added to the monthly payments. This is cheaper than FHA MIP (mortgage insurance premiums), as well as the PMI amounts on VA and conventional loans.

Do I have to be a first time home buyer?
The good news is you do not have to be a first time buyer. The only stipulation is that it must be your primary residence. So you must not currently own a home to be able to get a USDA loan.

What is the loan limits? How much can I borrow?
USDA loan limits adhere to the Fannie Mae / Freddie Mac conforming loan limits. For a single family residence, this amount is $417,000 in most areas of the county


http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
 
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
 
 

 

Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House

Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House.

via Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House.