Tag: rates

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.

 

 

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USDA financing

USDA financing.

via USDA financing.

 

Rural Development loans are underwritten to comply with guidelines set forth by the Rural Housing Service (RHS) under the United States Department of Agriculture (USDA).  Available for buyers of primary residences in designated rural areas, these loans require no down payment and have somewhat more lenient credit guidelines than other types of loans.  USDA guarantees the loan,requiring an initial guarantee fee which is typically financed and a monthly fee which is paid as a part of the monthly house payment.
Buyers need not be first-time buyers but household income and property location limitations apply.  USDA loans are among our specialties as a leading lender with the program.

Kentucky USDA Rural Housing Guidelines for 2013

Kentucky USDA Rural Housing PROGRAM ELIGIBILITY

 
 
 

Borrower Eligibility

• In order to be eligible for a Rural Development guaranteed loan, the Borrowers’ adjustable household income cannot exceed the maximum allowable income limit set forth in Rural Development Instruction 1980-D §1980.348, Exhibit C (use moderate-income limits). (http://eligibility.sc.egov.usda.gov)
• The borrower must not have sufficient assets to obtain other traditional conventional financing. The borrower may, however, qualify for an FHA or VA loan. In other words, applicants may have liquid assets and be eligible to participate in the GRH Program. Those assets, however, should not be sufficient to meet the down payment and closing cost requirements associated with a conventional uninsured mortgage product (LTV ≤ 80%). This means applicants do have a choice of USDA-Guaranteed Rural HousingFHA, VA, or a conventional mortgage product with private mortgage insurance.

 

 

The USDA Loan Guaranteed Rural Housing Purchase Program Features

 
 
 

The USDA Loan Guaranteed Rural Housing Refinance Program Features

Property Eligibility (GRH Purchase Transactions Only)

• In order for a property to be eligible for a Rural Development guaranteed loan, the property must be located in a rural designated area as defined in Rural Development Instruction §1980.312. You may view eligible areas on USDA Rural Development’s web-site at:
• Property must be a nonfarm, non-income providing tract.
• According to Rural Development Instruction §1980.313 (e) “Generally, the value of the site must not exceed 30 percent of the total value of the property. When the value of the site is typical for the area, as evidenced by the appraisal, and the site cannot be subdivided into two or more sites, the 30 percent limitation may be exceeded.”
The maximum interest rate for the Rural Development Guaranteed Rural Housing Program is defined as the FNMA 90-day actual-actual yield requirements plus 60 basis points, rounded up to the nearest quarter percent.
Each day USDA Loan will publish the maximum Note Rate as defined by FNMA on its Rural Housing Rate Sheet.  These rate sheets are only available to Licensed and approved mortgage brokers.
Note: For Guaranteed Rural Housing refinance transactions, the interest rate of the new loan must only be less than the interest rate of the existing loan.
GUARANTEED RURAL HOUSING PROGRAM
• Rural Development Guaranteed Rural Housing loans are typically underwritten to Rural Development Instruction §1980.345(d).
Additional specific requirements:
• The total debt ratio should include revolving debt regardless of when the debt will be retired. Installment loans will only be considered if the debt will be retired in more than six months. However, if the monthly payment on the debt is substantial, the payment will also be included in long term debt.
• If the borrower has co-signed a loan for another party, an acceptable 12-month history validating that the borrower is not making the payment must be provided in order to exclude the payment from the total debt.
• When a borrower has a delinquent student loan obligation, a satisfactory six-month repayment history must be provided.
• A 24-month history of residence is required on all files. Additionally, a 12-month verification of rent or mortgage with a payment rating is also required on all files when the primary wage earner has a credit score of less than 620. This may be done using a Request for Verification of Rent or Mortgage Account, or information contained on the credit report, or cancelled checks. All lates greater than 30 days must be documented with an explanation from the applicant.
NOTE: Applicants with credit scores of 640 or greater are not required to explain recent credit inquiries or to document adverse credit history except for those involving delinquent Federal debt or a previous Agency loan. Additionally, existing collection accounts may remain outstanding and rental verifications are not required for applicants with credit scores of 640 or greater.
Verification of funds is not required unless the borrower’s contribution is the greater than 2% of the purchase price. In those cases, the following are acceptable sources for verification of funds.
• Checking or Savings Verification of Deposit (FNMA Form 1006)
• Current balance must cover cash-to-close requirements.
• Average balance must be consistent with current balance. Any significant increase must be accompanied by written explanation and proof of source of deposits,
OR
•  Statements – To substantiate that a borrower has sufficient funds available for closing, the lender may accept the borrower’s original  statement(s) for the most recent two (2) months to verify funds that the borrower has in a deposit institution. The borrower’s  statements must identify clearly the depository institution, the account holder(s), the account number, the time period covered by the statement, all deposit and withdrawal transactions, and the ending account balance.
If the date of the borrower’s most recent  statement is more than 45 days earlier than the date of the borrower’s application, the borrower must supply a supplemental statement – the lender may accept any -generated forms (such as deposit or withdrawal slips) that show a machine-printed account number, balance, and date.
• Cash-On-Hand – Cash-on-hand is typically not an acceptable source of funds for closing. However, it may be acceptable if the following can be documented:
• Analysis of discretionary income through a household budget supports the ability to accumulate the funds.
• Cash is a way of life for the borrower and can be documented with receipts where cash is used consistently to make household payments, such as rent/mortgage, utilities, etc.
• Gifts (or grants) – A borrower can use funds obtained as a gift (or grant) to satisfy part of the cash requirement for closing only if the donor is a relative or friend, or charitable organization, municipality, or nonprofit organization.
A gift must be evidenced by a letter that is signed by the donor. The letter must:
• specify the dollar amount of the gift and the date the funds were transferred;
• indicate the donor’s name, address, telephone number, and relationship to the borrower; and
• include the donor’s statement that no repayment is expected.
The lender must verify that funds have been transferred to the borrower’s account and show documentation of the transfer of the gift funds from the donor’s account; for example, by obtaining a copy of the donor’s withdrawal slip or canceled check and the borrower’s deposit slip, etc. When the funds are not transferred prior to settlement, the donor may give the closing agent a certified check for the amount of the gift. A copy of that check or a settlement statement showing receipt of that check will be sufficient documentation for the lender’s records provided the donor is listed as the remitter.
A gift (or grant) from a charitable organization, municipality, or nonprofit organization must be evidenced by either a copy of the letter awarding the gift or grant to the borrower or a copy of the legal agreement that specifies the terms and conditions of the gift or grant. This supporting document must include language indicating that no repayment of the gift or grant is expected and an indication of how the funds will be transferred (to the borrower, the lender, or the closing agent). The lender must include in the individual mortgage file evidence of the transfer of the funds – such as a copy of the donor’s canceled check or a settlement statement showing receipt of the check.
Note: All supporting gift documentation (other than the gift letter) is no longer required if the entire gift is going toward closing costs/prepaids (any amount), or being used to pay-off debt of $1,000 or less.
• Disposition of Personal Assets – Proceeds from the sale of personal property may be used towards closing costs. Documentation for funds obtained should include a bill of sale,  statement verifying deposit of funds, and when applicable, a transfer of title.
• Borrowing of Funds on an Unsecured Basis – Borrowers that qualify may borrow funds on an unsecured basis to pay for their closing costs and prepaids. For example, a borrower could obtain an unsecured loan from a family member,  or credit union, or even a credit card cash advance.
In order to qualify for this option, a borrower’s median credit score must be 660 or above.
When utilizing this option, Lenders must remember to include the unsecured debt in the total debt calculations, and should indicate on the “Source of Downpayment, Settlement Changes, and/or Subordinate Financing” Section of the FNMA 1003 (Uniform Residential Loan Application) the amount of the unsecured funds.

Louisville Kentucky mortgage rates

Louisville, Kentucky Derby
Louisville, Kentucky Derby (Photo credit: Wikipedia)

Louisville Kentucky mortgage rates.

via Louisville Kentucky mortgage rates.

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Kentucky Mortgage Current Interest Rates
Fixed Rate Programs
 
Program
Calculator
Rate
 Conforming 30 year fixed
4.375
0.000
4.671
30
28 / 41Prequalify
Kentucky Mortgage Only- Rates Change w/o notice
Conforming 20 year fixed
4.375
0.000
4.587
30
40 / 41Prequalify
kentucky mortgage rates only- change w/o notice
 Conforming 15 year fixed
3.500
0.000
3.881
30
28 / 41Prequalify
kentucky mortgage rates only- change w/o notice
 FHA 30 year fixed
4.000
0.000
5.417
30
35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
 FHA 15 year fixed
3.500
0.000
3.989
30
35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
 USDA 30 year Fixed
4.000
0.000
4.985
30
31 / 45Prequalify
kentucky mortgage rates only- change w/o notice
 VA 30 Year fixed
4.000
0.000
4.714
41 / 41Prequalify
kentucky mortgage rates only- change w/o notice

Kentucky Mortgage  Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC,  and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required for a Kentucky Mortgage Only.

 

 

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency.

Rates are subject to qualifying criteria and Mortgage Rates can change without notice.

Assumptions include a 640 or higher credit score for Kentucky FHA, USDA, KHC,  and 620 credit scores for a  Kentucky VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required.

A 720 credit score or higher is assumed for a Kentucky  Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Kentucky Conventional loans are assumed at 80% ltv or less.

  • The displayed Annual Percentage Rates (APRs) reflect the interest rates, total points, and additional estimated pre-paid finance charges for the loan products shown, but do not include other closing costs.
  • The approximate cost of prepaid finance charges does not constitute and is not a substitute for the Good Faith Estimate of Closing Costs (GFE) that you will receive once you apply for a loan. This is not a mortgage loan approval or commitment to lend. The actual fees, costs and monthly payment on your specific loan transaction may vary and may include additional fees and costs.
  • For loans with less than 20% down payment borrower-paid mortgage insurance may apply.
  • These mortgage rates are based on a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit profile up to the time of closing.
  • FHA

    • Kentucky FHA loans require both an upfront and an annual mortgage insurance premium. The premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling, and other factors.
  • Jumbo

    • Kentucky Jumbo Mortgage  rates are higher for borrowers who do not meet the criteria for Conventional Mortgage Loans.,; Please contact your home mortgage consultant for details regarding the  criteria or with any other questions.
  •   VA Loans
                Kentucky VA loans require a funding fee upfront paid to VA in the form of mortgage insurance .he premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling     factors.
  • USDA Loans
                         Kentucky  USDA loans require a funding fee upfront and a monthly mortgage insurance premium paid to RHS/USDA. The premium varies based on the loan characteristics, your credit score,    and other factors.

Free Credit Report and Pre qualifications available anytime. 

FREE MORTGAGE PREQUALIFICATIONS SAME DAY

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
 

     

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA

 

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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.

Kentucky Mortgage Loan Application for A Pre-Approval

Kentucky Mortgage Loan Application for A Pre-Approval.

via Kentucky Mortgage Loan Application for A Pre-Approval.

Louisville Kentucky Mortgage Rates

Louisville Kentucky Mortgage Rates.

via Louisville Kentucky Mortgage Rates.

Kentucky Mortgage Rates

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                                                            Open Today 9:00 am -7:00 pm

Kentucky Mortgage  Rates

Kentucky Mortgage Current Interest Rates
Fixed Rate Programs
    Lock
days
 iQualifying
Ratios
Program Calculator Rate Points APR
 Conforming 30 year fixed 3.500 0.000 3.574 30 28 / 41Prequalify
Kentucky Mortgage Only- Rates Change w/o notice
Conforming 20 year fixed 3.500 0.000 3.412 30 40 / 41Prequalify
kentucky mortgage rates only- change w/o notice
 Conforming 15 year fixed 3.00 0.500 2.974 30 28 / 41Prequalify
kentucky mortgage rates only- change w/o notice
 FHA 30 year fixed 3.125 0.500 4.187 30 35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
 FHA 15 year fixed 3.125 0.000 3.389 30 35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
 Jumbo 30 year Fixed 4.375 1.000 4.385 30 28 / 36Prequalify
kentucky mortgage rates only- change w/o notice
 VA 30 Year fixed 3.125 0.000 4.114 30 41 / 41Prequalify
kentucky mortgage rates only- change w/o notice

Kentucky Mortgage  Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC,  and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required for a Kentucky Mortgage Only.

A 720 credit score or higher is assumed for a Kentucky Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Kentucky Conventional loans are assumed at 80% ltv or less.

  • The displayed Annual Percentage Rates (APRs) reflect the interest rates, total points, and additional estimated pre-paid finance charges for the loan products shown for Kentucky Mortgage Rates, but do not include other closing costs.
  • The approximate cost of prepaid finance charges does not constitute and is not a substitute for the Good Faith Estimate of Closing Costs (GFE) that you will receive once you apply for a Kentucky Mortgage  loan. This is not a Kentucky mortgage loan approval or commitment to lend. The actual fees, costs and monthly payment on your specific loan transaction may vary and may include additional fees and costs.
  • For loans with less than 20% down payment borrower-paid mortgage insurance may apply.
  • These Kentucky  mortgage rates are based on a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit profile up to the time of closing.
  • FHA

    • Kentucky FHA loans require both an upfront and an annual mortgage insurance premium. The premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling, and other factors. All Kentucky FHA loans require a minimum credit score of 640
  • Jumbo

    • Kentucky Jumbo Mortgage  rates are higher for borrowers who do not meet the criteria for Conventional Mortgage Loans. All Jumbo loans require a 680 or higher score and a maximum loan to value of 80% 
  •   VA Loans
                Kentucky VA loans require a funding fee upfront paid to VA in the form of mortgage insurance .he premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling   factors. Kentucky VA loans require a minimum credit score of 620
  • USDA Loans
                         Kentucky  USDA loans require a funding fee upfront and a monthly mortgage insurance premium paid to RHS/USDA. The premium varies based on the loan characteristics, your credit score,    and other factors. Kentucky USDA loans require a 640 minimum credit score. 

Free Credit Report and Pre qualifications available anytime. 

                                                                

.  Joel Lobb (NMLS#57916) is a licensed mortgage loan officer in the state of Kentucky.

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. 


Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage (NMLS #1800) 107 South Hurstbourne Parkway*
Louisville, KY 40222*

Fill out my form!

4 Things Every Borrower Needs to Get Approved for a Mortgage Loan In Kentucky-FHA VA KHC Conventional Mortgage

4 Things Every Borrower Needs to Get Approved for a Mortgage Loan In Kentucky-FHA VA KHC Conventional Mortgage.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

Credit Requirements for A Kentucky Rural Housing RHS Mortgage Loan

2013 Credit Requirements for A Kentucky Rural Housing RHS Mortgage Loan  Kentucky First Time Home Buyers---Zero Down Loans Still Exist
REQUIREMENTS
  • · Credit report must match GUS Findings.
  • · Must not be older than 120 days on the date of closing for existing properties and 180 days for proposed and new construction.
  • · Must contain complete information provided by all three repositories.
  • · The credit report must show the following three required FICO scoring models for the report to be valid with Platinum Mortgage, Inc.:

1. Equifax Beacon 5.0

2. Transunion FICO Risk Score, Classic 04

3. Experian/Fair Isaac Risk Model V2.

  • · Must reflect a minimum of 1 score per borrower.

TRADELINE REQUIREMENTS:

GUS Approved: Each credit report must contain 2 acceptable tradelines with at least 12 month history and last active within the last 24 months (see below regarding acceptable tradelines).

Manual Underwrite: As determined acceptable by the underwriter.

CREDIT SCORE
  • · If more than one score is supplied by the same repository, the lesser of the scores will be used.
  • · Determining Qualifying Credit Score:

o Middle of 3

o Lower of 2

o If only one score is provided, that score is the qualifying credit score for that borrower.

Minimum credit score for:

  • · Manual Underwrite = 660
  • · GUS Approval = 660

LIABILITIES & CREDIT HISTORY

(INDEX)

H
OPEN CHARGE ACCOUNTS
ALIMONY, CHILD SUPPORT, OR SEPARATE MAINTENANCE
  • · Court-ordered payments should be documented by a copy of the court order.
  • · Borrower(s) must have an acceptable existing repayment plan for any arrearages and proof of 12 months on time payments, and/or be required to pay account in full prior to, or at closing.
  • · See Collections/Chargeoffs for additional requirements if there are arrearages.
CONTINGENT LIABILITIES
  • · If the borrower is a co-signer on an account paid by a 3rd party, the liability may only be excluded from the borrower debt ratios if evidence the primary obligor has been making the payments on time on the debt for a minimum of 12 months can be obtained.
  • · Court-ordered assignment of debt should be documented by a copy of the court order. Must have 12 months cancelled checks from the payer of the court ordered debt in order to exclude from the debt ratio.

PREVIOUS MORTGAGE:

  • · Section 1980.345(c)(1)(ii) requires all previous mortgage liabilities disposed of through a sale, trade, or transfer without a release of liability, to be included in the debt ratio calculation unless evidence can be obtained to confirm the remaining party has made payments over the last 12 months.
  • · In divorce settlements when one person retains ownership of a residence as a result of the proceedings, it does not imply that the person relinquishing ownership is automatically released of the financial liability associated with an existing mortgage debt. The divorce decree along with a release of liability from the mortgage creditor must be presented as evidence that an applicant is no longer legally responsible for the mortgage payment. If no release of liability is granted by the creditor then the applicant remains legally obligated for the debt. Quit claim deeds do not remove liability for mortgage debts.
DEFERRED INSTALLMENT DEBT May not be omitted from debt ratio. If the credit report does not reflect a monthly payment due at the end of the deferment period, the lender may request a copy of the applicant’s payment letter, or utilize the industry standard of estimating student loan payments as 1% of the loan balance.
NON-REIMBURSED EMPLOYEE EXPENSES If the borrower claims any non-reimbursed employee expenses (IRS Form 2106 or 1040 Schedule A), the borrowers monthly income should be reduced by the annualized monthly average.
BUSINESS DEBT IN BORROWER’S NAME When the account in question does not have a history of delinquency, the debt may be excluded with satisfactory evidence the obligation was paid out of company funds (such as 12 months cancelled company checks). If the account in question has a history of delinquency, the full debt obligation must be included in the borrower’s debt ratio.
FINANCED PROPERTIES Additional financed properties are generally not permitted as borrower may not own any other suitable housing at time of closing.
DEBTS WITH <6 REMAINING PAYMENTS The total debt ratio should include revolving debt regardless of when the debt will be retired. Installment loans will only be considered if the debt will be retired in more than six months. However, if the monthly payment on the debt is substantial, the payment will also be included in long term debt. The GUS system will automatically exclude debt that is eligible to be excluded. If not excluded by GUS the debt must be included in the debt ratio.
“PAYING DOWN” ACCOUNTS Not permitted. Settlement offers will not be considered as proof of balance
SETTLEMENT OFFERS Are acceptable on accounts that will be paid in full at closing as long as the offer is in writing from the creditor reporting on the credit report.
PAST DUE ACCOUNTS (NOT A COLLECTION OR CHARGE OFF) Recent derogatory credit >1×30 within the previous 12 months is not permitted unless approved by GUS. All past due accounts must be current at time of closing.
COLLECTIONS/ CHARGE OFFS
  • · No accounts converted to Collection/Charge off in previous 12 months allowed, unless approved by GUS.

GUS Approved:

  • · Medical Collections/Charge offs are not required to be paid.
  • · Other Collections/Charge offs, if >24 months, not required to be paid, otherwise accounts must be paid in full prior to, or at, closing.

Manual Underwrite:

  • · Medical Collections/Charge offs are not required to be paid.
  • · Other Collections/Charge offs must be paid in full prior to, or at closing.

Any unpaid Collections/Charge offs will require a satisfactory letter of explanation from the borrower.

OUTSTANDING FEDERALLY INSURED OR GUARANTEED DEBT Borrower(s) must have an acceptable existing repayment plan (minimum of 12 months), and/or be required to pay account in full prior to, or at closing. Borrower must also be cleared through CAIVRS.
JUDGMENTS/LIENS
  • · Must be paid at, or prior to, closing.
  • · Borrower(s) may not have any new Judgments/Liens within the previous 12 months, unless approved by GUS.
BANKRUPTCY (ALL) 3 years seasoning required from Discharge or Dismissal date.
FORECLOSURE 3 years seasoning required.
DEED-IN-LIEU OF FORECLOSURE 3 years seasoning required.
SHORT SALES 3 years seasoning required.
COMPENSATING FACTORS Some compensating factors include:

  • · Conservative use of credit
  • · Minimal increase in borrower’s housing expense
  • · Substantial cash reserves after closing
  • · Credit score >660
  • · Low total debt ratio (does not compensate for high housing ratio)
MULTIPLE RISK LAYERING Multiple risk layering is not allowed on manually underwritten loans:

  • · Payment Shock (>100%)
  • · Ratio Waiver
  • · Credit Waiver
  • · Credit Score <660
  • · Short Duration of Employment (less than 12 months employment with current employer)
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

applynow

Kentucky USDA and Rural Housing Underwriting Update for November 2012

Kentucky USDA and Rural Housing Underwriting Update for November 2012

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. 

1)  Kentucky USDA loans and rural housing underwriting  is tightening up!  You are going to see us asking for more to make sure we have it to respond to USDA when they ask for it.  We don’t want to be caught shorthanded on these deals and be stuck waiting to get them closed (neither do you!) so to be reactive to the changes with USDA, you will find that we are conditioning for more than we used to.  To help us be on the ball with your USDA loans, be sure to include the following:

1)  30 days most recent paystubs showing a YTD amount

2)  VOE’s if the borrower is NOT employed in the same position for more than 2 years or the borrower has OT, Bonus or commission income.  We will recommend Written VOE’s   for the purpose of showing the borrower is in the same line of work!

3)  Assets – if your 1003 shows bank information and asset information then you must provide the most recent 2 statements to prove this information

4)  Collections & open judgments must show on your liabilities.  Please provide an LOX for all Derogatory credit  this LOX should show that the circumstances were temporary in  nature, beyond the applicant’s control and resolved to the best of their ability

5)  VOR‘s are required for all USDA loans.  USDA has been consistently requesting this information in the past 30 days.  For files above 640, a VOR will suffice.  For files under 640,     we will require 12 months cancelled checks.  If a VOR is not available due to the borrower living with family,  an LOX will be needed

6)  Paystubs for all income in the household regardless if they are on the loan or not. Must be most recent and 30 days worth to help determine actual income

7)  Garnishments or child support shown and if paying it we will require the court order. If receiving it, we need a 12 month history of receipt and court order

8)  W-2’s for the past 2 years for ALL jobs

9)  Tax returns if self employed or unreimbursed expenses are shown

10)  YTD P&L if self employed prepared by tax preparer and signed by borrower.

11)  1980-21 signed by borrowers

12)  Fully executed purchase contract

Remember – we cannot send a file to RD without an appraisal!!!  The appraisal must state that the property meets HUD Handbooks 4150.2 and 4905.1.

2)  Turn times for USDA in several states are extreme.  We understand your frustration with the delays and want to express to you that we are watching diligently for return commitments to push your files to closing.  If you could review your USDA loans with us and insure that all conditions are met….except for the CC…we can expedite these files ASAP when the commitment comes in.  If your file has been with us for over 30 days, please update the paystubs as ours will have expired!!!

Thank you for your attention and please let me know if you need me!

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

Kentucky Rural Housing Loans and USDA Guaranteed Loan Underwriting Issues

Kentucky Rural Housing Loans and USDA Guaranteed Loan Issues

Seller Concessions:
Seller concessions cannot be used to pay down buyer’s debt.

Deferred Student Loans and Debt Ratio Calculations:
Deferred student loans should be included in the debt ratio calculations regardless of the
deferment period. If the credit report does not indicate a monthly repayment amount, Lender may use the monthly payment amount provided by the loan servicer, or 1% of the loan balance reflected on the RMCR.

Risk Layering:
Refers to the existence of multiple levels of risk in an application such as marginal credit, high repayment ratios, extensive use of other credit, payment shock, etc. Lenders should be very cautious when evaluating applications with multiple risk levels.

Payment Shock:
Measured by dividing the new PITI by previous housing expenses minus 1. In cases where payment shock is 100% or higher, no additional risk layering should be allowed unless strong compensating factors are present.
Example:
New PITI = $1,500
Current Rent = $650
$1500 ÷ $650 = 2.30 ‐ 1= 1.30 or 130%
The payment shock in this example is above 100% and therefore is a risk factor.

Credit Waivers:
The lender approves a credit waiver and supplies all back up documentation used in the decision making process. Lender must document that the instances of unacceptable credit must have been temporary in nature and beyond the applicant’s control or the result of a justifiable dispute relative to defective goods or services. A lender need not require collection accounts to be paid in full if there are mitigating circumstances as described in RD Instruction 1980.345 (d)(3). Credit scores of 640 and above may eliminate the need for lender documentation of credit waivers.

Interest Rate Buydowns:
Temporary interest rate buydowns are permitted with prior RD approval. Underwriting
requirements for temporary interest rate buydowns include:
 The mortgage loan must be underwritten at the note rate.
 Buydown funds may come from the seller, lender, or third party.
 Buydown funds may not come from the borrower.
 The initial interest rate is temporarily reduced no more than 2% below the note rate
and increased by no more than 1% annually for no more than 2 years.