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 Housing USDA Guarantee Upfront and Annual Fee Changes October 2016

 

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Good News for Kentucky First Time Home Buyers Using the USDA Rural Housing Loan Program!

 

Kentucky RHS USDA Mortgage Insurance  Changes Below and Important Dates to Keep in Mind that could affect your loan closing and approval!

On October 1, 2016, both the upfront guarantee fee and annual fee for purchase and refinance loans will decrease. We are reducing the upfront guarantee fee from 2.75% to 1%, and the annual fee from .5% to .35%. The Guaranteed Underwriting System (GUS) will be updated on August 31, 2016, to allow lenders to select and underwrite using either the FY16 or FY17 fee schedule.

Due to the large volume of loan applications received daily, as well as current turn times, Kentucky will begin accepting applications using the new FY17 fee schedule on September 27, 2016

Applications using the new FY17 fee schedule submitted before September 27, 2016 will not be processed before October 1, 2016.

 September 27, 2016 will be the last day Kentucky will accept applications using the existing FY16 fee schedule. This will ensure all of these submissions are reviewed by the Agency prior to October 1.

 

 Most are familiar with USDA Rural Housing Loan Program  being a great no money down program available and it is not just for Kentucky first time buyers

But starting with commitments on October 1, the funding fee that is financed is going from 2.75% to only 1%!  On a $100,000 loan, a buyer saves about $1750!  In addition, the annual fee (like PMI) reduces from .5% to .35% which lowers the monthly payment by $15 a month on an $100,000 loan amount.

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Joel Lobb
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.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). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

 

Kentucky Rural Housing USDA Appraisal Requirements

  • Property must meet HUD’s minimum Property standards. i.e.: permanent heat source, functional kitchen, health & safety
  • Flips subject to UW review
  • Transferred appraisal – not allowed
  • Appraisal valid 120 days – 30 day extension possible
  • Swimming Pools – ok
  • Property eligibility – Located in a USDA designated rural area
  • New Construction Available
  • RHS Condos
    In order for a condo to be eligible for an RHS loan, it must appear on the FHA, VA, or FNMA approval list. Please see the Condos Guideline for more information.
  • Income Producing Properties and Outbuildings
    Minimal income production from property is allowable within reason (e.g. gardening) as long as the property remains predominantly residential in nature
    Outbuildings are permitted as long as they are no longer in commercial use. Interior photographs of all outbuildings will be required to determine usage
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|
 Company ID #1364 | MB73346

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). I lend in the following states: Kentucky

 

KENTUCKY USDA RURAL HOUSING MORTGAGE GUIDELINES FOR 2020

Kentucky Rural Housing USDA Highlights for 2020

Kentucky USDA Rural Development Guaranteed Lending Program is geared to assist low to moderate income families realize home ownership. Below are some important highlights:

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.
  • Debt Ratios–29/41% on manual underwrites  – max to 45% Debt to Income ratios with GUS Approve/Eligible Finding.
  • ZERO down payment – 100% LTV ok
  • Income Eligibility Limits do apply. Usually to $86k for a family of four and up to $15k for a household family of five or more.
  • Lender Credit from the interest rate may be used to pay closing costs.
  • Gifts ok! Usually not needed for USDA loans because 100% Financing offered. Gift funds cannot be used for reserves to get a GUS approval.
  • Applicants with > 20% of the sales price in assets (exclude retirement accounts) are not eligible for USDA financing.
  • Clear CAIVRS required – CAIVRS is a Federal Government-wide data base of information regarding individuals where an insurance claim or guarantee loss was paid.
  • Student Loan Payments
    Effective immediately for all RHS loans, student loan calculations will be changed to the following
    • Fixed Payment Loans: A permanent amortized, fixed payment may be used when it can be documented that the payment is fixed, the interest rate is fixed, and the repayment term is fixed.
    • Non-Fixed Payment Loans (i.e. deferred, income based, graduated, adjustable, etc.): The payment should be calculated as the greater of 0.5% of the loan balance or the actual payment reflected on the credit report. No additional documentation is required.

 

KENTUCKY USDA RURAL HOUSING PROPERTY STANDARDS FOR THE GUARANTEED HOME LOAN PROGRAM

Kentucky based USDA Mortgage Lender
Kentucky based USDA Mortgage Lender

 

Sites must be modest and developed in accordance with any standards imposed by a State or local government. Therefore, the lender must verify that the following requirements are met at the time of application.

  •  Site size The site size must be typical for the area.  (Some acreage is fine as long as it is normal and the appraisal has comparable sales with similar acreage)

 

  • Income-Producing Buildings. The property must not include buildings designed and to be used principally for income-producing purposes. For example barns, silos, greenhouses, or livestock facilities used primarily for income producing agricultural, farming or commercial enterprise are ineligible. However, barn, silos, livestock facilities or greenhouses no longer in use for a commercial operation, used for storage, and outbuildings such as storage sheds are permitted if they are not used primarily for income producing agricultural, farming or commercial enterprise. A minimal income-producing activity, such as maintaining a garden that generates a small amount of additional income, does not violate this requirement. Home-based operations such as childcare, product sales, or craft production that do not require specific features are not restricted.  A qualified property must be predominantly residential in use, character and appearance.

 

  • Income-Producing Land. The site must not have income-producing land that will be used principally for income producing purposes. Vacant land or properties used primarily for agricultural, farming or commercial enterprise are ineligible. Sites that have income-producing characteristics (e.g. large tracts of arable land ready for planting) are considered income-producing property.  However maintaining a garden for personal use is not in violation of this requirement. A minimal income-producing activity, such as a garden that could generate a small amount of additional income does not violate this requirement. A qualified property must be predominantly residential in use, character and appearance.
  • Site Specifications. The site must be contiguous to and have direct access from a street, road, or driveway. Streets and roads must be hard surfaced or all weather surfaced and legally enforceable arrangements must be in place to ensure that needed maintenance will be provided.
  • Utilities. The site must be supported by adequate utilities and water and wastewater disposal systems.

 

 

Kentucky based USDA Mortgage Lender
Kentucky based USDA Mortgage Lender

 

Kentucky USDA Rural Housing Credit Report Requirements Update 2016

February 12, 2016

KY USDA Rural Housing Credit Report Update 2016

Effective immediately, an applicant’s credit score may be validated with at least two eligible trade lines instead of three trade lines as previously required.  Such trade lines consist of credit accounts (revolving, installment, etc.) with at least twelve months of repayment history reported on the credit report.  Corresponding revisions to the 3555 Handbook will be posted on the USDA Rural Development’s Regulation and Guidance website on March 9, 2016.

At least one applicant whose income or assets are used for qualification must have a valid credit report score or have at least two historical trade line references that have existed for at least 12 months to establish a credit reputation.

For applicants without an established credit history and unable to establish the required number of eligible trade lines to validate the credit score, alternative methods may be used to evidence an applicant’s willingness to pay, such as a non-traditional mortgage credit report or multiple independent verifications of trade references per 7 CFR 3555, Section 3555.151 (i)(6).

Non-traditional credit may not be used to enhance poor payment records or low credit scores. GUS applications receiving an “Accept” underwriting recommendation, but which fail to meet the credit score validation test using a traditional credit report, must be downgraded to a “Refer” by the lender.  In these instances the use of a non-traditional credit history will be required in order to proceed.

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Kentucky Rural Housing Mortgage offer zero down payments and low 30 year fixed rates with lower monthly mortgage insurance requirements than FHA currently
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|

 Company ID #1364 | MB73346

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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). I lend in the following states: Kentucky

KENTUCKY USDA UP-FRONT GUARANTEE FEE INCREASE

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KENTUCKY USDA UP-FRONT GUARANTEE FEE INCREASE
 
As announced by Rural Development, the upfront Guarantee Fee for purchase and refinance loans will increase as follows for Rural Housing USDA loans in Kentucky:
UPFRONT GUARANTEE FEE
THROUGH 9/30/2015
EFFECTIVE 10/1/15
All Transactions
2.0%
2.75%
The new fee structure is applicable to all Conditional Commitments issued by Rural Development on or after October 1, 2015. Loan guarantee requests submitted to Rural Development (RD) on which a conditional commitment has not been issued by September 30, 2015, will be subject to the new, higher guarantee fee structure.
Kentucky USDA Guaranteed Rural Housing Loans are one of the only “no money down” options available to home buyers today. Kentucky USDA loans aren’t just in the country. Many other areas fall within the USDA Kentucky Rural Housing designated areas, so opportunities may be closer than you think. To view eligible rural areas near you, CLICK HERE to access the USDA lookup tool on their website.
This program is very attractive to low-to-moderate income buyers:
  • Zero percent down
  • CLTV up to 102.04%
  • 6% seller contributions allowed
  • Credit scores as low as 640
  • No reserves required

 

 

 

 

 

 

 

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Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 
 Fax:     (502) 327-9119