Tag: Real estate

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.

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Refinance your home loan to ensure cheapest rate of interest on the deal

Refinance your home loan to ensure cheapest rate of interest on the deal.

via Refinance your home loan to ensure cheapest rate of interest on the deal.

Understand Your Credit Score To Help Avoid Foreclosure : Fannie Mae

Understand Your Credit Score To Help Avoid Foreclosure : Fannie Mae.

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Seller Concessions to Close the Transaction

Seller Concessions to Close the Transaction.

via Seller Concessions to Close the Transaction.

Ky Rural Housing and USDA Loans Guidelines

Ky Rural Housing and USDA Loans Guidelines

USDA/Rural Housing 0 Down

Kentucky Single Family Housing Guaranteed Loan Program

Kentucky Single Family Housing Guaranteed Loan Program 
– 25 Frequently Asked Questions

25 Questions and  Answers

1 What is the guarantee?
USDA Rural Development 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. Losses exceeding 35% are 85%
reimbursed.
2 What is the advantage to the customer?
100 percent financing, fixed interest rate, no MIP/PMI, and no restrictions on size or
design are just a few of the advantages.
3 What are the eligibility requirements?
Have adequate and dependable income (up to 115 percent of adjusted area median
income), have acceptable credit, do not own a dwelling in the local commuting area, US
Citizen or permanent resident, have the ability to personally occupy the home on a
permanent basis, and do not have funds for a 20% down payment loan plus closing and
moving expenses.
4 Can a Broker originate Guaranteed loans? Yes, however only Approved lenders may underwrite & submit loans.
5 How long does it take to get an answer?
Our goal is a 2 to 5 day turnaround. Time will be longer in some offices due to the large
number of guarantee requests received.
6 What is the maximum fixed Interest Rate  and term?
Fannie Mae 90 day delivery rate plus 60 basis points rounded up to nearest quarter of
one percent Or no more than the Lender’s published VA rate for first mortgage loans
with no discount points. The term is 30 years.
7 What is the maximum loan amount? The Loan amount is limited by the market value and repayment ability.
8 What is the maximum Loan to ValueIt can be up to 100% LTV plus the Agency guarantee fee.
9 What is the Guarantee Fee? The guarantee fee is 3.5 percent of the “Total” loan amount.
10 What are the qualifying ratios? PITI Ratio 29 percent, TD Ratio 41 percent.
Higher ratios may be approved with compensating factors.
11 Do we show deferred student loans in the debt ratio?
Deferred student loans should be included in the debt ratio calculations for Guaranteed
Loans regardless of the deferment period.
12 What is the minimum credit score?
Under certain criteria, credit score 640 and above no comment required.
For credit score 639 and below document circumstances were temporary in nature
beyond the applicants control and have been removed. In most cases, loans will not be
guaranteed for applicants who have a middle credit score of 580 & below.
13 What about location? The dwelling must be located in eligible rural area (See eligibility site)
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
14 What about refinancing? Limited to existing USDA Rural Development guaranteed or direct loans.
15 Can loans include acreage?
Possibly. The acreage must not contain any income producing facilities and the value of
acreage may not exceed 30% of the total property value.
16 Can Manufactured Homes be financed? Yes, however they must be new and sold by an approved dealer contractor.
17 What about an in-ground swimming pool? Waivers may be granted (on a case by case basis)
18 What are the required inspections?
Property must meet HUD Handbook 4905.1 & 4150.2 or similar standard. A FHA
roster appraiser can verify adequacy/working order of electrical, plumbing, heating,
water & waste disposal on existing dwellings.
19 Will USDA Rural Development issue a letter asking the Approved Lender to make
a loan? No. This is the Approved Lender‟s loan. They underwrite the loan and decide if it meets
their standards and Agency standards before submitting.
20 Is homebuyer education required? Homebuyer education is not required, however it is recommended.
21 Are seller concessions allowed? Yes. Rural Development does not restrict the amount of seller concessions.
22 Who approves the Appraiser? The appraiser must be licensed by the State to complete appraisals.
23 Can necessary repairs be included in loan? Yes. An „as improved‟ appraisal will be needed to include cost of repairs.
24 Are alternate verifying income documents allowed?
Yes. Paycheck stubs, payroll earnings statements and W-2 tax forms for previous 2 tax
years, and telephone verification of employment.
25 Who buys Guaranteed Housing Loans? JP Morgan , FHLB, Fannie Mae, Ginnie Mae, and other

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*

Fill out my form!

Kentucky USDA Rural Development Single Family Housing Guaranteed Loan Program

Logo of the USDA Rural Development office, par...
Logo of the USDA Rural Development office, part of the Department of Agriculture. (Photo credit: Wikipedia)
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Kentucky USDA Rural Development Single Family Housing
Guaranteed Loan Program

APPLICANT BENEFITS

 100 percent financing available with no down payment required. Eligible repairs and
closing costs may be included in the loan up to the appraised value of the property.
 Upfront guarantee fee may be included in the loan amount above the appraised value.
 Existing or new construction homes including all Planned Unit Development’s (PUD’s) are
eligible.
 Condominiums may be eligible.
 30 year loan terms with fixed interest rates.
 No pre-payment penalties.
 Satisfactory credit and qualifying ratios apply. Nontraditional credit histories may be
eligible.

APPLICANT REQUIREMENTS

The following information is not all inclusive. For complete information refer to RD
Instruction 1980-D, supplemented by applicable Administrative Notices (AN) available
online at http://www.rurdev.usda.gov/RegulationsAndGuidance.html http://www.rurdev.usda.gov/RegulationsAndGuidance.html. 
APPLICANT ELIGIBILTY
The applicant must:
 Be a U.S. Citizen, legally admitted as a permanent resident, or be a qualified alien.
 Have the legal capacity to incur the loan obligation.
 Be unable to secure credit with rate and terms reasonable to the applicant without a
guarantee from the Single Family Housing Guaranteed Loan Program (SFHGLP).
 Not own a home within the local commuting area at the time of loan closing. Applicants that
do own a home that is structurally unsound or functionally inadequate, or is located outside
of the local commuting area may still be eligible for guaranteed loan consideration.
 Occupy the home purchased in an eligible rural area as their permanent primary residence.
 Have stable and dependable income to ensure repayment ability. Households may not
exceed the moderate income limit established for the applicable rural area.
 Have an acceptable credit history that demonstrates the willingness and ability to meet
financial obligations as they become due. If applicants exhibit unacceptable credit per RD
Instruction 1980-D, section 1980.345(d) the approved lender may still consider the
applicant if documented evidence of strong compensating factors as outlined in section
1980.345(d)(3) exists.

ANNUAL INCOME LIMITS

 Annual income includes the total gross income of the applicant, co-applicant, and any other
adult (age 18 and up) household members.
 Adjustments to annual income may be deducted for program eligibility determination.
Deductions may be made for dependants, eligible annual childcare expenses, disability
expenses, and annual medical expenses for elderly families. Please discuss eligible
deductions with your SFHGLP contact.
 Income limits are published for each county as an Exhibit to RD Instruction 1980-D and are
available online at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

REPAYMENT ABILITY: DEBT/INCOME RATIOS

 Repayment ability is determined by calculating the following ratios:
– PITI (Principal, Interest, Real Estate Taxes, and Homeowner Insurance): The total PITI
payment divided by the repayment income must be 29 percent or less.
– Total Debt (TD): The PITI payment plus all other monthly debt obligation payments
divided by the repayment income must be 41 percent or less.
 Repayment ratios that exceed 29 and/or 41 percentmay be approved by Rural
Development when a ratio waiver request is provided by the approved lender. The ratio
waiver must document and provide evidence of strong compensating factors to support the
request. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012
1400 Independence Ave., S.W. Washington D.C. 20250-0784
202.720.1452
Examples of strong compensating factors include but are not limited to:
– Current rent/housing payment is equal to or less than the proposed PITI.
– Applicant has a history of devoting a similar percentage of income to housing expense
similar to the PITI over the previous 12 months.
– Strong credit score and repayment history.
– Reserves are available post loan closing, which evidence the applicant’s ability to
accumulate savings.

PROPERTY REQUIREMENTS
ELIGIBLE RURAL AREA

The property must be located in an eligible rural area as defined in 7 CFR 3550.10 as:
1. Open country which is not part of or associated with an urban area.
2. Any town, village, city or place, including the immediate adjacent densely settled area,
which is not part of or associated with an urban area and which:
a. Has a population not in excess of 10,000 if it is rural in character, or
b. Has a population in excess of 10,000 but not in excess of 20,000, is not contained within
a Standard Metropolitan Statistical Area, and has a serious lack of mortgage credit for
very low, low and moderate income households as determined by the Secretary of
Agriculture and the Secretary of HUD.
Property eligibility is available online and through GUS.

EXISTING HOMES

 Properties must meet HUD Handbooks 4150.2 and 4905.1. An FHA Roster appraiser or
licensed residential appraiser deemed qualified by the approved lender may certify to this
determination.
 A separate home inspection report prepared by the appraiser or a home inspector deemed
qualified by the approved lender is an acceptable option to ensure properties meet
minimum standards.
 Homes must be structurally sound, functionally adequate and in good repair, or will be
improved to meet good repair.
 There are no thermal performance standards for existing homes.
 Private water systems/wells: The local health authority or state certified laboratory must
perform a water quality analysis, which must meet state and local standards.
 Private septic systems: The septic system must be free of observable evidence of failure. An
FHA Roster appraiser, government health authority, licensed septic professional or
qualified home inspector may perform the septic system evaluation.
 Termite: If required by the lender, appraiser, inspector, or State law, a pest inspection must
be obtained to confirm the property is free of active termite infestation.
 Repairs: Any repairs necessary for the dwelling to be structurally sound, functionally
adequate and in good repair must be completed prior to the request of the loan note
guarantee. Exception: Escrow accounts that meet the requirements of RD Instruction
1980-D, section 1980.315 are allowed for exterior weather delayed repairs. When eligible
escrow accounts are established per section 1980.360(2)(ii) the loan note guarantee will be
issued without the repairs complete.
 Existing homes have been completed for more than 12 months or have been completed for
less than 12 months but have been previously occupied. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012

NEW CONSTRUTION

 Evidence the home was built in accordance with certified plans and specifications (e.g.,
International Residential Building Code, CABO, BOCO, etc.) must be obtained through an
eligible building permit, certificate of occupancy, or certification for a qualified individual or
organization that reviews plans and specifications.
 Evidence of construction inspections performed throughout the project in accordance with
section 1980.341(b)(2) must be retained. Acceptable documentation includes an eligible
certificate of occupancy or copies of three inspections performed: (1) inspections prior to
footing and foundation poured, (2) inspections of plumbing, electrical, and mechanicals
before the shell is enclosed, and (3) a final inspection will meet requirements.
 Evidence of a builder’s warranty. Minimum one year issued by the builder. If the builder
has offered a 10 year insured builder’s warranty acceptable to the Agency, this may be
accepted and evidence of construction inspections will be waived.
 Thermal performance requirements must meet the 2006 IECC code. An eligible building
permit, certificate of occupancy, final inspection, or 10 year insured builder’s warranty is
acceptable evidence this requirement has been met.
 New construction homes have been completed (as evidenced by a certificate of occupancy)
for less than 12 months and have never been occupied.
 New manufactured homes must be purchased from an approved dealer –contractors (your
SFHGLP contact can provide a list of those approved in your state). A unit is considered
new if the purchase agreement is dated within 12 months of the date the unit was
manufactured. The date of manufacture is available on the factory installed plate on the
unit.

LOAN REQUIREMENTS
LOAN PURPOSES

 Loans must be secured by a first lien on real property in an eligible rural area.
Loan funds may be used to:
 Purchase an existing or new construction (stick built, modular, or manufactured) home.
 Purchase or pay off a site as part of a new construction package.
 Purchase and improve an existing home. Improvements must be complete before a loan
note guarantee will be issued. Exception: Escrow accounts are allowed for weather delayed
exterior repairs only.
 Include eligible loan fees, including legal fees, title services, and eligible closing costs.
 Refinance existing Section 502 Direct and Guaranteed loans. If only the principal balance
and the guarantee fee will be financed, no new appraisal is required. If the applicant wishes
to include eligible closing costs into the loan, a new appraisal is required. A new appraisal is
always required for Section 502 Direct loan refinances.
LOAN LIMITS
 The maximum loan amount is 100 percent of the appraised value plus the upfront
guarantee fee.

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 Development, Rural Housing Service Properties for Sale in Ky.

Kentucky Rural Development, Rural Housing Service Properties and homes for Sale in Ky. 

Kentucky
Click on an address to view detailed property information.
City Address Bed Bath Agency
Artemus 1008 Ramsey Branch RD, 40309   0   0.0    RD
Bagdad 235 Jacksonville Road, 40003   2   1.0    USMS
Bagdad 1771 Lebanon Ridge Road, 40003   3   2.0    USMS
Bardstown 1009 W. Milestone Court, 40004   0   0.0    RD
Calvert City 244 Arizona Street, 42029   0   0.0    RD
Corbin 332 Forego Trail, 40701   0   0.0    RD
Corbin 96 Sandy Hill Circle, 40701   0   0.0    RD
Custr 7066 Highway 1073, 40115   0   0.0    RD
Cynthiana 168 Cedarbrook Drive, 41031   0   0.0    RD
Elkton 1410 Blue Gray Parkway, 42220   0   0.0    RD
Eminence 314 Vernon Street, 40019   0   0.0    RD
Ezel 14699 Hwy 460 W, 41425   0   0.0    RD
Ezel 1785 Hwy 882, 41425   0   0.0    RD
Falmouth 8137 HWY 10 N, 41040   0   0.0    RD
Frenchburg 528 Lantern Way, 40322   0   0.0    RD
Georgetown 103 Blackberry Ridge Ct, 40324   4   3.5    USMS
Grayson 610 Holcomb St, 41143   0   0.0    RD
Grayson 466 Leadingham Branch, 41143   2   1.0    USMS
Harlan 105 Sally Rachel Rd, 40831   0   0.0    RD
HICKMAN 106 BERNAL ST, 42050   0   0.0    RD

 

City Address Bed Bath Agency
INDEPENDENCE 30 PEACH DRIVE, 41051   0   0.0    RD
Irvine 25 McClanahan Court, 40336   0   0.0    RD
Lawrencburg 1808 ADDALYNE CT, 40342   0   0.0    RD
Lawrenceburg 104 HOLLY COURT, 40342   0   0.0    RD
Lawrenceburg 1516 BROOKE DRIVE, 40342   0   0.0    RD
Manchester 229 Laurel Heights Road, 40962   0   0.0    RD
McKee 447 TURKEY FOOT RD, 40447   0   0.0    RD
Monticello 102 Wells Court, 42633   0   0.0    RD
Mt. Sterling 287 Woodland Lane, 40353   0   0.0    RD
OWENSBORO 5438 DIANA AVE, 42301   0   0.0    RD
Perryville 141 SOUTHERN DRIVE, 40468   0   0.0    RD
Prestonsburg 25 Herald Lane, 41653   0   0.0    RD
Prestonsburg 1476 Ruff and Tuff Br, 41653   0   0.0    RD
Raceland 517 Greenup Ave., 41169   0   0.0    RD
Russellville 218 Center Street, 42276   0   0.0    RD
Scottsville 906 East Walnut, 42164   0   0.0    RD
Scottsville 422 SOUTH 3RD ST, 42164   0   0.0    RD
Sitka, KY 4888 KY RT 1559, 41255   0   0.0    RD
Somerset 5323 Beechwood Drive, 42501   0   0.0    RD
Somerset 249 Ridgeview Drive, 40741   0   0.0    RD
City Address Bed Bath Agency
Stanford 175 Young Dr., 40484   0   0.0    RD
Stanford 180 Robin Dr, 40484   0   0.0    RD
TOLLESBORO 6560 WEST KY 10, 41189   0   0.0    RD
West Paducah 7520 Nathan Drive, 42086   0   0.0    RD
Williamsburg 1355 New Zion Road, 40769   0   0.0    RD
Williamsburg 274 Shelby Hurst Rd, 40769   0   0.0    RD
Wilmore 324 Wise Drive, 40390   0   0.0    RD
Wilmore 609 TOCHER DR, 40390   0   0.0    RD
WINCHESTER 110 COLONIAL PARK DRIVE, 40391   0   0.0    RD
Winchester 608 Dixiana Dr, 40391   0   0.0    RD
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*

New Rural Housing and USDA Property Eligibility guidelines for Kentucky Cities Bardstown Burlington Elizabethtown Georgetown Independence Nicholasville Shelbyville Shepherdsville

 

New Rural Housing and USDA Property Eligibility guidelines for Kentucky Cities

New Rural Housing and USDA Property Eligibility guidelines for Kentucky Cities

 

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As of Thursday, March 28, 2013, RHS  or Rural Housing Loans will use the 2010 Census Data for Kentucky cities, which will impact certain cities in regards to their eligibility for RHS or USDA , rural housing  loans in Kentucky .  Unless there are other changes to this regulation, the cities that would become ineligible include:

  • Bardstown
  • Burlington
  • Elizabethtown
  • Georgetown
  • Independence
  • Nicholasville
  • Shelbyville
  • Shepherdsville

 

 

 

 

 

Kentucky USDA and Rural Housing Guaranteed Home Loan Program

 

 

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*

 

 

 

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Related Articles

Kentucky Rural Housing and USDA Property Eligibility Requirement Changes March 27,2013

Kentucky Rural Housing and USDA Property Eligibility Requirement Changes March 27,2013

by Louisville Kentucky Mortgage

 

Kentucky Rural Housing and USDA Property Eligibility

 

 Beginning March 27, 2013, RHS  will begin using the 2010 Decennial Census data to determine property and income eligibility for Kentucky properties for USDA and Rural Housing Loans in Kentucky . This means that a borrower in any area which has experienced a significant change in population and/or median income between 2000 and 2010 may lose eligibility for the Kentucky Rural Housing or USDA RHS Loan Program. Loans on hand will be allowed to continue using the 2000 Census data eligibility requirements only if there is a completed loan application (and all the documentation that entails) dated on or before March 26, 2013. Any loan using the 2000 Census data eligibility requirements must close and fund by September 30, 2013.

 

RHS or Rural Housing / USDA  has not yet released a list of the county specific changes that will occur for Kentucky Properties. . We encourage everyone to make their borrowers aware that changes will occur and to try and get applications completed  for a Kentucky USDA Property by March 26th for any cases where continued eligibility may be in jeopardy.


 

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*

 

Fill out my form!

Seller Tax Issues and the Sale of a Principal Residence for Kentucky Home Buyers and Homeowners

Seller Tax Issues and the Sale of a Principal Residence for Kentucky Home Buyers and Homeowners
The following information will assist each Seller of a principal residence with the tax issues they should discuss with a qualified tax preparer prior to filing a 2012 tax return.

 

   I.              General Summary

The sale of real or personal property may generate federal and/or state tax liabilities for a seller. Generally, the seller will need to compare the “basis” of the property in light of the sales price in order to determine whether there is a potential “capital gain” or “capital loss” under the tax code. Fortunately, the IRS allows the great majority of homeowners to treat the sale of a principal residence as a “tax-free” event, regardless of whether any portion of the proceeds from the sale are reinvested into a new home.

II.            Reporting Requirements

Each seller should be asked by the closer to complete an IRS Form 1099 Certification, which is an effort by the IRS to receive notice that a seller may have a potential tax liability or information to report in relation to the sale. The questions asked on this form relate only to whether the title agency is required to file an electronic “IRS Form 1099-S”, not whether tax is owed for the sale.

III.           FORM 1099 Certification

If any of the following questions are not “true” for each seller, the title agency will file an electronic Form 1099-S and each seller will need to seek competent tax advice prior to filing their tax return. The questions can be summarized, as follows:

Q: The property served as the seller(s) principal residence for a period of 2 out of the last 5 years? ( T / F )
Q: The sellers have not sold another principal residence in the past 2 years? ( T / F )
Q: The sellers did not use the property for “business” or “rental” purposes? ( T / F )
Q: The sales price was (i) $250,000 or less for an unmarried owner, or (ii) $500,000 or less for a married couple who will file a joint return? ( T \ F )

Principal residence” will be determined based upon the “ownership & use test”, which relates to factors such as (a) the amount of time spent living in the home, (b) employment location, (c) the address listed on bills, tax returns, driver’s license, voter registration, and (d) the location of banks, recreation clubs, and religious organizations frequented by the owners.

Special Considerations: There are many circumstances [examples include work-related moves, death of a spouse, health issues for you or a family member, divorce, extended duty military service, receipt of a “first-time” homebuyer credit, ownership of multiple tracts of land, natural disasters, and many other “unforeseen circumstances”] that may require additional tax guidance in order to identify, minimize or exclude the tax liabilities associated from the sale of a principal residence.

IV.           FORM 1099-S Contents

If each seller fails to certify all statements in Section III as “true”, the title agency will file an electronic Form 1099-S at the end of the tax year, which includes each seller’s (a) name and mailing address, (b) description of the property sold, (c) closing date, and (d) gross proceeds (sales price). Each seller must provide written instructions if the sales price is to be allocated or “split” between sellers.

 

If you would like a handout of this summary to provide to your customers, feel free to print out this flyer.

Disclaimer : This email is only intended to provide general information regarding tax issues as they pertain to the sale of a personal residence, does not create an attorney/client relationship between the sender and recipient, and should not be relied upon as specific legal or tax accounting advice. If you need legal assistance with respect to a specific transaction, please contact us to discuss the specific facts.