Tag: Section 502 loans

Rural Housing Funds for Kentucky USDA Loans Now Available for 2017 and 2016 Mortgage Loans

updates
RHS Funding Now Available for Kentucky Rural Housing Mortgage Loans for 2017
Funding has now been authorized for RHS loans. Over the next two to three business days, USDA will be obligating all conditional commitments in their system. An updated Conditional Commitment will be issued for each loan removing the “contingent upon” language. Once Century has received this updated commitment, the loan will be eligible to close.

In order to get you pre-approved for your max loan amount, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free!

 

 Mortgage Pre-Approval Checklist:

  1. One full month’s or 30 days worth of pay stubs
  2. Last 2 years W-2′s
  3. Last 2 years tax returns
    4.  Last two months bank statements for all accounts including 401 k or retirement account  if you have one


_______________________________________________

 


if you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.



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 views of my employer. Not all products or services mentioned on this site may fit all people

 

http://www.mylouisvillekentuckymortgage.com

 

 

 

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DIFFERENCES BETWEEN THE SECTION 502 GUARANTEED AND DIRECT LOAN PROGRAMS

DIFFERENCES BETWEEN THE SECTION 502 GUARANTEED AND DIRECT LOAN PROGRAMS FOR RURAL DEVELOPMENT RHS 

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There are several other Section 502 loan programs, but the only one that approaches the guaranteed program in number of loans made is the Homeownership Direct Loan Program

This program once accounted for almost all the Section 502 loans, but the number of guaranteed loans has greatly increased in the last few years. In Fiscal Year 2001, the guaranteed program obligated approximately $2.3
billion for 29,326 loans, while the direct program obligated approximately $1.07 billion for a total of 14,789 loans. The important differences between the Section 502 guaranteed and direct loan programs are as follows:

ƒ The lender for Section 502 guaranteed loans is a private savings and loan institution, bank, or mortgage company which also handles all the loan servicing. The lender for the direct program is the Rural Housing Service; Rural Development handles the servicing.

ƒ Income levels for Section 502 guaranteed borrowers are capped at 115 percent of the area median income. Income levels for the direct program must be no more than 80 percent of the AMI. ƒ Payment assistance subsidy is not available 
through the guaranteed program. Payment assistance, which can reduce the interest paid on the mortgage to as low as 1 percent, is available for borrowers in the direct program and is based on the borrower’s income as a percent of AMI.
ƒ Borrower protections differ between the programs. Applicants for guaranteed loans do not have the rights of moratorium or of appeal that accompany the direct program. Also, in the case of default, Section 502 guaranteed loans are liquidated by
the commercial lender, while direct loans are liquidated by the government

Louisville Kentucky Mortgage Rates

ADDITIONAL INFORMATION

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell

kentuckyloan@gmail.com

502 905 3708

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.

Rural Housing and USDA Loans in Kentucky

Rural Housing and USDA Loans in Kentucky

When searching for home loan options in the Kentucky , you do not want to overlook the possibility of a USDA and Rural  Home Loans . Designed to help encourage economic growth throughout the state of Kentucky, a USDA Loan is a great alternative to a traditional home loan. With no down payment required andflexible credit guidelines, a government backed USDA Loan can help your dream of homeownership become a reality in Kentucky.

  • 100% Financing Up to the Appraised Value
  • New and Existing Homes are Eligible
  • No Maximum Loan Amount
  • Low Fixed Interest Rates
  • Minimum 640 score and 3 years removed from Bankruptcy and Foreclousre
  • Maximum Income Limits Per Kentucky Household
  • Low mortgage insurance on USDA loans in Kentucky
  • Seller can pay all closing costs and prepaids
  • No Termite report or Home Inspection Needed
  • Low 30 year fixed Rates on Kentucky Home Loans

Kentucky Areas that Qualify for a USDA Loan

While USDA Loans are limited to rural areas, you will probably be surprised at the selection of qualifying areas. Rural does not have to mean farm country, and so a number of areas that that are located right next to major cities do qualify.
In general terms, eligible USDA homes are limited to areas that are not within city limits and have less than 20,000 residents. However, you should never assume that your Kentucky home does not qualify. Even if the property you are considering is close to Lexington or Louisville, it may still qualify. So seek out the guidance of the USDA Loan Agency. Fill out the Application on this page, or call one of our certified USDA loan agents at1-502=905=3708 or email kentuckyloan@gmail.com and find out if you’re eligible.

Kentucky’s USDA Loan Income Limits by County

Some of the eligibility restrictions that determine if you qualify for a USDA include the county and zip code the home resides in, as well as, your past credit history and number of dependents.

In addition, because they are designed for families with moderate to lower incomes, the income of homebuyers looking into a Kentucky USDA Home Loan cannot exceed their county’s set limit:

Kentucky USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2009

County Name    

1-4 Person Households
(Guaranteed Loans)

5-8 Person Households 
(Guaranteed Loans)

NON-METRO

ADAIR

$73,600

$97,150

NON-METRO

ALLEN

$73,600

$97,150

FRANKFORT, KY (MICRO)

ANDERSON

$73,600

$97,150

PADUCAH, KY-IL (MICRO)

BALLARD

$73,600

$97,150

GLASGOW, KY (MICRO)

BARREN

$73,600

$97,150

MOUNT STERLING, KY (MICRO)

BATH

$73,600

$97,150

MIDDLESBOROUGH, KY (MICRO)

BELL

$73,600

$97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)

BOONE

$73,600

$97,150

LEXINGTON-FAYETTE, KY (MSA)

BOURBON

$73,600

$97,150

HUNTINGTON-ASHLAND, WV-KY-OH (MSA)

BOYD

$73,600

$97,150

DANVILLE, KY (MICRO)

BOYLE

$73,600

$97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)

BRACKEN

$73,600

$97,150

NON-METRO

BREATHITT

$73,600

$97,150

NON-METRO

BRECKINRIDGE

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

BULLITT

$73,600

$97,150

NON-METRO

BUTLER

$73,600

$97,150

NON-METRO

CALDWELL

$73,600

$97,150

MURRAY, KY (MICRO)

CALLOWAY

$73,600

$97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)

CAMPBELL

$73,600

$97,150

NON-METRO

CARLISLE

$73,600

$97,150

NON-METRO

CARROLL

$73,600

$97,150

NON-METRO

CARTER

$73,600

$97,150

NON-METRO

CASEY

$73,600

$97,150

CLARKSVILLE, TN-KY (MSA)

CHRISTIAN

$73,600

$97,150

LEXINGTON-FAYETTE, KY (MSA)

CLARK

$73,600

$97,150

NON-METRO

CLAY

$73,600

$97,150

NON-METRO

CLINTON

$73,600

$97,150

NON-METRO

CRITTENDEN

$73,600

$97,150

NON-METRO

CUMBERLAND

$73,600

$97,150

OWENSBORO, KY (MSA)

DAVIESS

$73,600

$97,150

BOWLING GREEN, KY (MSA)

EDMONSON

$73,600

$97,150

NON-METRO

ELLIOTT

$73,600

$97,150

NON-METRO

ESTILL

$73,600

$97,150

LEXINGTON-FAYETTE, KY (MSA)

FAYETTE

$73,600

$97,150

NON-METRO

FLEMING

$73,600

$97,150

NON-METRO

FLOYD

$73,600

$97,150

FRANKFORT, KY (MICRO)

FRANKLIN

$73,600

$97,150

UNION CITY, TN-KY (MICRO)

FULTON

$73,600

$97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)

GALLATIN

$73,600

$97,150

NON-METRO

GARRARD

$73,600

$97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)

GRANT

$73,600

$97,150

MAYFIELD, KY (MICRO)

GRAVES

$73,600

$97,150

NON-METRO

GRAYSON

$73,600

$97,150

NON-METRO

GREEN

$73,600

$97,150

HUNTINGTON-ASHLAND, WV-KY-OH (MSA)

GREENUP

$73,600

$97,150

OWENSBORO, KY (MSA)

HANCOCK

$73,600

$97,150

ELIZABETHTOWN, KY (MSA)

HARDIN

$73,600

$97,150

NON-METRO

HARLAN

$73,600

$97,150

NON-METRO

HARRISON

$73,600

$97,150

NON-METRO

HART

$73,600

$97,150

EVANSVILLE, IN-KY (MSA)

HENDERSON

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

HENRY

$73,600

$97,150

NON-METRO

HICKMAN

$73,600

$97,150

MADISONVILLE, KY (MICRO)

HOPKINS

$73,600

$97,150

NON-METRO

JACKSON

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

JEFFERSON

$73,600

$97,150

LEXINGTON-FAYETTE, KY (MSA)

JESSAMINE

$73,600

$97,150

NON-METRO

JOHNSON

$73,600

$97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)

KENTON

$73,600

$97,150

NON-METRO

KNOTT

$73,600

$97,150

NON-METRO

KNOX

$73,600

$97,150

ELIZABETHTOWN, KY (MSA)

LARUE

$73,600

$97,150

LONDON, KY (MICRO)

LAUREL

$73,600

$97,150

NON-METRO

LAWRENCE

$73,600

$97,150

NON-METRO

LEE

$73,600

$97,150

NON-METRO

LESLIE

$73,600

$97,150

NON-METRO

LETCHER

$73,600

$97,150

MAYSVILLE, KY (MICRO)

LEWIS

$73,600

$97,150

DANVILLE, KY (MICRO)

LINCOLN

$73,600

$97,150

PADUCAH, KY-IL (MICRO)

LIVINGSTON

$73,600

$97,150

NON-METRO

LOGAN

$73,600

$97,150

NON-METRO

LYON

$73,600

$97,150

RICHMOND-BEREA, KY (MICRO)

MADISON

$73,600

$97,150

NON-METRO

MAGOFFIN

$73,600

$97,150

NON-METRO

MARION

$73,600

$97,150

NON-METRO

MARSHALL

$73,600

$97,150

NON-METRO

MARTIN

$73,600

$97,150

MAYSVILLE, KY (MICRO)

MASON

$73,600

$97,150

PADUCAH, KY-IL (MICRO)

MCCRACKEN

$73,600

$97,150

NON-METRO

MCCREARY

$73,600

$97,150

OWENSBORO, KY (MSA)

MCLEAN

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

MEADE

$73,600

$97,150

MOUNT STERLING, KY (MICRO)

MENIFEE

$73,600

$97,150

NON-METRO

MERCER

$73,600

$97,150

GLASGOW, KY (MICRO)

METCALFE

$73,600

$97,150

NON-METRO

MONROE

$73,600

$97,150

MOUNT STERLING, KY (MICRO)

MONTGOMERY

$73,600

$97,150

NON-METRO

MORGAN

$73,600

$97,150

CENTRAL CITY, KY (MICRO)

MUHLENBERG

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

NELSON

$73,600

$97,150

NON-METRO

NICHOLAS

$73,600

$97,150

NON-METRO

OHIO

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

OLDHAM

$73,600

$97,150

NON-METRO

OWEN

$73,600

$97,150

NON-METRO

OWSLEY

$73,600

$97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)

PENDLETON

$73,600

$97,150

NON-METRO

PERRY

$73,600

$97,150

NON-METRO

PIKE

$73,600

$97,150

NON-METRO

POWELL

$73,600

$97,150

SOMERSET, KY (MICRO)

PULASKI

$73,600

$97,150

NON-METRO

ROBERTSON

$73,600

$97,150

RICHMOND-BEREA, KY (MICRO)

ROCKCASTLE

$73,600

$97,150

NON-METRO

ROWAN

$73,600

$97,150

NON-METRO

RUSSELL

$73,600

$97,150

LEXINGTON-FAYETTE, KY (MSA)

SCOTT

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

SHELBY

$73,600

$97,150

NON-METRO

SIMPSON

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

SPENCER

$73,600

$97,150

CAMPBELLSVILLE, KY (MICRO)

TAYLOR

$73,600

$97,150

NON-METRO

TODD

$73,600

$97,150

CLARKSVILLE, TN-KY (MSA)

TRIGG

$73,600

$97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)

TRIMBLE

$73,600

$97,150

NON-METRO

UNION

$73,600

$97,150

BOWLING GREEN, KY (MSA)

WARREN

$73,600

$97,150

NON-METRO

WASHINGTON

$73,600

$97,150

NON-METRO

WAYNE

$73,600

$97,150

EVANSVILLE, IN-KY (MSA)

WEBSTER

$73,600

$97,150

CORBIN, KY (MICRO)

WHITLEY

$73,600

$97,150

NON-METRO

WOLFE

$73,600

$97,150

LEXINGTON-FAYETTE, KY (MSA)

WOODFORD

$73,600

$97,150

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*

Section 502 USDA Guaranteed Loan Program Rural Refinance Pilot Guidelines for Kentucky Mortgages

Section 502 Guaranteed Loan Program Rural Refinance Pilot Guidelines for Kentucky:

Brief Pilot Description: The Rural Refinance Pilot is available to eligible borrowers who qualify to refinance their current USDA mortgage loans. Under the Rural Refinance Pilot program, a lender does not need to submit a new credit report, new appraisal, any HUD Handbook minimum property determinations, or any additional property inspections. Eligible “Hardest Hit” States: The following states may participate in the Rural Refinance Pilot: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, and Tennessee. Additional States are not eligible at this time.

Eligible Borrowers: Current Section 502 Direct or Guaranteed Loan borrowers must:

1. Meet current income eligibility requirements;

2. Reside in an eligible rural area or an area that was eligible at the time of the original loan closing; and

3. Have made timely mortgage payments for the 12-month period prior to the refinance. Overview of Rural Refinance Pilot Guidelines: 1. The existing loan must be a Section 502 Direct or Guaranteed loan. 2. The new interest rate must be a fixed rate 100 basis points below the current interest rate. 3. The new term of the refinance loan may not exceed thirty years from the date of closing

. 4. A Rural Refinance Pilot loan may only include the principal balance of the loan plus a portion of or the full upfront guarantee fee. The applicable upfront refinance guarantee fee is 1.5 percent. No cash out is permitted to the borrower. Accrued interest, closing costs, lender fees, and late fees are not eligible to be part of the refinance loan.

5. An annual fee also applies. For FY 2012 the applicable annual fee is .3 percent.

6. A new appraisal, new credit report, HUD Handbook determination and additional property inspections are not required. The original appraisal amount may be used from Guaranteed Loan System to process the loan.

7. Ratio calculations are not required. Therefore debt ratio waiver requests will not be necessary.

8. Rural Refinance Pilot loans must be manually underwritten. They cannot be processed through the Guaranteed Underwriting System.

9. Customary and reasonable closing costs and other fees may be collected from the borrower by the lender. Such charges may not exceed the cost paid by the lender or charged to the lender by the service provider. An origination fee of up to one percent of the total loan amount may be charged to the borrower.

10. All the following documentation is required: a. Form RD 1980-21 “Request for Single Family Housing Loan Guarantee”. b. Income verifications for all adult household members. c. Uniform Residential Loan Application. d. Evidence of qualified alien status, if applicable. e. FEMA Form 81-93 “Standard Flood Hazard Determination.” Appropriate flood insurance must be obtained if the property is in a flood zone at the time of the new loan closing, even if the area was not in a flood zone at the time of the original loan closing. A flood elevation survey is not required. f. Evidence of previous 12 month mortgage payment history. The lender must secure evidence to document the borrower(s) has paid the loan on time for the previous 12 months. The lender may utilize a Verification of Mortgage obtained from or provided directly by the loan servicer that lists the payment history for each of the previous 12 months. As an alternative, the lender may submit a credit report which reflects a satisfactory mortgage payment history over the past 12 months. If the lender submits a credit report to Rural Development as proof of payment history, only the payment history of the current mortgage will be considered. Credit waivers or explanations for adverse credit that may be present on the report are not required.

11. All additional requirements of RD Instruction 1980-D and applicable Administrative Notices continue to apply. Rural Development Responsibilities: 1. Request funding for the refinance if necessary by sending an email request to: sfhgld@wdc.usda.gov. Please include the State and the amount of funding needed. 2. Retrieve original appraisal amounts in GLS when processing Rural Refinance Pilot transactions. 3. Review the previous 12-month mortgage payment history. If a credit report is submitted, only review the 12-month mortgage payment history. If the mortgage account is currently delinquent or has been reported delinquent in the previous 12 months, the borrower is not eligible. Agency staff should use the “Borrower ID” with GLS Report “GLSST01: Status of a GRH Loan Account” to ensure the loan is currently active and not in default. 4. Enter 0 in the “FICO Score” data field when processing a Rural Refinance Pilot application. 5. Enter the repayment income calculation in GLS, but do not include any “Additional Liabilities” amounts.

In the event the new mortgage payment results in ratios above 29 and/or 41 percent, check the box that indicates a debt ratio waiver has been issued by the Agency. 6. In the “Agency Notes” section of the GLS Application screen enter “Rural Refinance Pilot Loan.” This will identify the loan as part of this pilot in the event of a loan review. 7.

 

Kentucky USDA Rural Development Guaranteed Section 502 Loans

Kentucky Rural Development Guaranteed Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Guaranteed Section 502 Loans Kentucky

Eligibility: Applicants for Kentucky loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here.   Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.  In addition, applicants must have reasonable credit histories.
Approved lenders under the Single Family Housing
Guaranteed Loan program include:

Terms: Loans are for 30 years.  The promissory note interest rate is set by the lender.
There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost.   Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.  Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

Approval:Rural Development officials have the authority to approve most Section 502 loan guarantee requests.

Guaranteed Section 502 Loans Kentucky

Basic Instruction: 7 CFR Part 1980.

We are not affiliated with, nor a part of USDA or any other Government Agency.