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KY USDA Up-Front Guarantee Fee Increase Effective October 1st, 2015

2015 Kentucky Rural Housing USDA Changes

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KY USDA Up-Front Guarantee Fee Increase Effective October 1st, 2015

Any Kentucky RHS USDA loan that has not received conditional commitment from state Rural Development Offices in Lexington, KY by end of business on 9/30 will be subject to the 2.75% up-front guarantee fee increase.

Loan Purpose Loans obligated at RD on and after 10/01/2014 Loans obligated at RD on and after10/01/2015
Purchase Up-Front Guarantee Fee 2.0% 2.75%
Refinance Up-Front Guarantee Fee 2.0% 2.75%
First time home buyer loan in Louisville Kentucky
First time home buyer loan in Kentucky
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 
 Fax:     (502) 327-9119
 
 

 CONFIDENTIALITY NOTICE: This message is covered by the Electronic

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KENTUCKY RURAL HOUSING CHANGES TO ANNUAL USDA GUARANTEE FEE STRUCTURE

KENTUCKY RURAL HOUSING CHANGES TO ANNUAL USDA GUARANTEE FEE STRUCTURE

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ANNUAL GUARANTEE FEE
THROUGH 9/30/2014
EFFECTIVE 10/1/14
Purchase Transactions

.40%

.50%

Refinance Transactions

.40%

.50%

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

(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 CONFIDENTI

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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2014 Income Limits for Kentucky USDA’s Single Family Guaranteed Loan Program

Kentucky USDA Rural Housing Home Loans 1 100% Financing in Kentucky for Home Loans
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.

Joel Lobb  Senior  Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 phone: (502) 905-3708
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com 

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA
This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA
Kentucky property eligibility map for USDA and rural development , property eligibility, maps, rhs, usda, rural development, rural housing,
Kentucky property eligibility map for USDA and rural development , property eligibility, maps, rhs, usda, rural development, rural housing,
Kentucky property eligibility map for USDA and rural development , property eligibility, maps, rhs, usda, rural development, rural housing,

Kentucky USDA Rural Development Guaranteed Housing Loan Income Worksheet for 2014

KENTUCKY RURAL HOUSING INCOME ELIGIBILITY CALCULATION WORKSHEET

Kentucky USDA Rural Development Guaranteed Housing Loan

INCOME ELIGIBILITY CALCULATION WORKSHEET  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:

http://www.rurdev.usda.gov/SupportDocuments/KY%20GRH.pdf

DEDUCTIONS FOR CALCULATING  ADJUSTED FAMILY INCOME

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.
_________________________________________________

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

 

GUARANTEED HOUSING PROGRAM INCOME LIMITS
GUARANTEED HOUSING PROGRAM INCOME LIMITS

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

 

 

Property Trax: Federal shutdown threatening local mortgages, rental assistance : Wsj USDA Rural Development’s Single Family Housing Guaranteed Loan Program

Property Trax: Federal shutdown threatening local mortgages, rental assistance : Wsj.

via Property Trax: Federal shutdown threatening local mortgages, rental assistance : Wsj.

The mission of USDA Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural home buyers achieve their dream of home ownership!

Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms.

Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located. Additional Guaranteed Loan Features include but are not limited to:

*100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included.

*Guarantee Fee applies: may be rolled into the loan amount.

*Flexible credit guidelines. Non-traditional credit histories may be accepted.

*Fixed 30 year interest rates apply. Lenders and applicants agree upon interest rate.

*Qualifying ratios are 29% for housing costs and 41% for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified.

*No maximum purchase price. Qualifying ratios and the applicant’s stable and dependable income will determine home affordability.

*Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments (PUD’s), eligible condominiums and new manufactured homes.

*Eligible closing costs and lender fees may be included in the loan or paid by the applicant.

*Gift/Grant Funds/Mortgage Credit Certificates (MCC’s)/Seller Concessions are allowed.

*Eligible repairs and improvements may be included in the loan.

*Applicants apply with an approved lender of their choice.

*Not limited to first time home buyers.

 

 

Kentucky USDA Rural Development Mortgage

cropped-usda_loan_big.jpgKentucky USDA Rural Development Mortgage Overview

Features Benefits
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 (640 minimum credit score required) Buyers with non-traditional or no credit histories may qualify
Streamlined processing with 640 credit score No explanations on credit with 640+ score
Very low monthly PMI According to a recent Administrative Notice (AN4557) sent out by USDA, starting October 1, 2011 the upfront guarantee fee will be reduced from 3.5% of the loan amount to 2% with the addition of minimal monthly mortgage insuranceon all purchase transactions with the USDA No Money Down Mortgage.On a refinance transactions involving USDA Mortgages, the upfront guarantee fee will remain at 1% of the loan amount but will include the monthly mortgage insurance.
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 homebuyers 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 No MI, very low 30 YEAR FIXED rates and very easy to qualify

Kentucky Guaranteed Rural Housing Loans

To be eligible, applicants must:

  • Have an adequate and dependable income;
  • Be a U.S. Citizen, qualified alien, or be legally admitted to the United States for permanent residence;
  • Have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income – such as annual child care expenses and $480 for each minor child – in order to qualify.USDA Rural Development field offices can provide information on the moderate income limits for the areas that fall within their jurisdiction, and can provide further guidance on calculating household income.
  • Have a credit history that indicates a reasonable willingness to meet obligations as they become due;
  • Have repayment ability based on the following ratios: Principle, Interest, Taxes, and Insurance (PITI) divided by gross monthly income must be equal to or less than 29 percent. Total debt divided by gross monthly income must be equal to, or less than, 41 percent.

A Kentucky USDA Guaranteed Loan is a Government Insured 100% Purchase Loan. These loans are only offered in rural areas.

Why choose a Kentucky USDA Mortgage?

  • USDA Loans require no down payment.
  • There are no prepayment penalties for USDA Rural Home Loans.
  • A USDA Rural Development Loan has low monthly mortgage insurance.
  • A USDA Rural Development Mortgage is available all rural areas of the country, provided a market exists for the property and the home meets HUD’s minimum property standards.
  • A USDA Rural Housing Loan can be used to purchase a new or existing one family home in rural areas.
  • USDA RD Loans are offered at terms of 30 years with a fixed interest rate.

  Kentucky USDA Loan FAQ’s

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).

What is the Maximum LTV for a Kentucky USDA Loan?
The maximum USDA rural loan LTV can be up to 100% LTV plus the Agency guarantee fee.

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.

4 Ways You Might Be Hurting Your Credit Score (And What You Can Do About It)

Factors contributing to someone's credit score...
Factors contributing to someone’s credit score, for Credit score (United States). (Photo credit: Wikipedia)

4 Ways You Might Be Hurting Your Credit Score (And What You Can Do About It).

Kentucky FHA, VA, KHC, Rural Housing and Fannie Mae Loan Free Pre-Approvals for Mortgage Loans

via 4 Ways You Might Be Hurting Your Credit Score (And What You Can Do About It).

Live5News.com | Charleston, SC | News, Weather, Sports

Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011

Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011.

via Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011.