Tag: United States

KY USDA Single Family Housing Homes for Sale in 2017 Currently.

Your properties subscription for USDA Single Family Housing is kentuckyloan@gmail.com as of 10/24/2017
State Days Old Counties
KY 365 ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD
To change your preferences, click here.
Address Bed/Bath Price
117 Dove Drive 3/1 $34,840.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
301 Eastview Circle 2/1 $51,135.00 – GovtBid
Shelbyville, KY 40065 Foreclosure Sale
1006 Twelve Oaks Dr 3/2 $67,000.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
117 Western Ave 3/2 $26,800.00 – GovtBid
Cynthiana, KY 41031 Foreclosure Sale
427 Earl St. 3/1.5 $30,150.00 – GovtBid
Danville, KY 40422 Foreclosure Sale
200 Verde Dr. 3/2 $36,850.00 – GovtBid
Padacah, KY 42003 Foreclosure Sale
136 Fuller Way 3/1 $28,810.00 – GovtBid
Mount Sterling, KY 40353 Foreclosure Sale
139 Pearl Street 2/1.5 $30,820.00 – GovtBid
London, KY 40741 Foreclosure Sale
609 Ridgeview Drive 3/2 $46,230.00 – GovtBid
London, KY 40741 Foreclosure Sale
261 Bridlewood Ave 3/2 $114,330.00 – GovtBid
Shelbyville, KY 400657222 Foreclosure Sale
265 Meadowbrook Rd. 2/1 $13,400.00 – GovtBid
Vanceburg, KY 41179 Foreclosure Sale
50 Crabtree Rd 3/2 $43,515.00 – GovtBid
Strunk, KY 42649 Foreclosure Sale
412 Chestnut St. 3/1 $12,060.00 – GovtBid
Vanceburg, KY 41179 Foreclosure Sale
508 Hickory Hill Drive 3/1 $13,400.00 – GovtBid
Monticello, KY 42633 Foreclosure Sale
105 Woodland Place 3/1.5 $18,090.00 – GovtBid
Mt Vernon, KY 40456 Foreclosure Sale
502 N. Main St. 2/1.5 $25,795.00 – GovtBid
Brownsville, KY 42210 Foreclosure Sale
66 Craycraft Rd 2/1 $47,280.00 – GovtBid
Tollesboro, KY 41189 Foreclosure Sale
328 E. Legend Dr 3/2 $40,200.00 – GovtBid
Mount Sterling, KY 40353 Foreclosure Sale
90 Brewer Subdivision 3/1 $21,440.00 – GovtBid
Campton, KY 41301 Foreclosure Sale
RR 746 Box 5230 3/1.5 $16,750.00 – GovtBid
Campton, KY 41301 Foreclosure Sale
234 Gardner Lane 3/1 $25,460.00 – GovtBid
Mt Sterling, KY 40353 Foreclosure Sale
221 Man O War Dr 3/2 $103,525.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
111 Beechmount Drive 3/1 $54,885.00 – GovtBid
Nicholasville, KY 40356 Foreclosure Sale
5915 Woodcreek Crossing W 3/2 $46,900.00 – GovtBid
Crestwood, KY 400148229 Foreclosure Sale

 

 

 

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Your properties subscription for USDA Single Family Housing is kentuckyloan@gmail.com as of 07/09/2017
State Days Old Counties
KY 365 ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD
To change your preferences, click here.
Address Bed/Bath Price
245 Miller Lane 3/2 $34,170.00 – GovtBid
London, KY 40741 Foreclosure Sale
6080 Franklintown Road 3/1 $22,780.00 – GovtBid
Pleasureville, KY 40057 Foreclosure Sale
197 Reynolds Hill 3/1 $26,800.00 – GovtBid
Allen , KY 41601 Foreclosure Sale
335 Harrisburg Ave 2/1 $14,740.00 – GovtBid
Owingsville, KY 40360 Foreclosure Sale
1026 Raceland Ave 3/1 $18,760.00 – GovtBid
Raceland, KY 41169 Foreclosure Sale
98 Thompson Ridge Rd 4/2 $23,450.00 – GovtBid
Germantown, KY 41044 Foreclosure Sale
12016 Bethlehem Road 3/1 $66,585.00 – GovtBid
Bethlehem, KY 40007 Foreclosure Sale
5442 Scenic Vista Dr. 3/1.5 $38,190.00 – GovtBid
Somerset, KY 425018138 Foreclosure Sale
25 River Valley Run 3/2 $80,550.00 – GovtBid
Ghent, KY 41045 Foreclosure Sale
3175 State Rt.2 3/2 $27,470.00 – GovtBid
Greenup, KY 41144 Foreclosure Sale
1019 Parkside Drive 2/1 $33,500.00 – GovtBid
Georgetown, KY 40324 Foreclosure Sale
69 Veterinarian Lane 2/1 $77,835.00 – GovtBid
West Liberty, KY 41472 Foreclosure Sale
283 Simmons Lane 3/2 $86,200.00 – GovtBid
Flemingsburg, KY 41041 Foreclosure Sale
11 Roe Street 2/1 $36,850.00 – GovtBid
Walton, KY 41094 Foreclosure Sale
4837 Elkwood Dr 3/1.5 $38,190.00 – GovtBid
Burlington, KY 41005 Foreclosure Sale
3008 Allens Fork Dr 4/1 $44,220.00 – GovtBid
Burlington, KY 41005 Foreclosure Sale
5 Terence Dr. 2/1 $24,120.00 – GovtBid
Williamstown, KY 41097 Foreclosure Sale
132 OI’ Stable Drive 3/2 $45,560.00 – GovtBid
Somerset, KY 42503 Foreclosure Sale
10897 Pleasant Ridge Rd 3/1 $21,440.00 – GovtBid
Alexandria, KY 41001 Foreclosure Sale
78 Cedar Brook Way 3/2 $48,240.00 – GovtBid
Morehead, KY 403517242 Foreclosure Sale
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Bullitt County Kentucky USDA Home Loan and Rural Housing Loans for Bullitt County KY

Bullitt County Kentucky USDA Home Loan and Rural Housing Loans for Bullitt County KY.

via Bullitt County Kentucky USDA Home Loan and Rural Housing Loans for Bullitt County KY.

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USDA Rural Development No Money Down USDA Rural Housing Loan Program for Shelby County Kentucky

USDA Rural Development No Money Down USDA Rural Housing Loan Program for Shelby County Kentucky

 

For Shelby County Kentucky USDA Rural Mortgage buyers, there are certain income limits you must meet for the Shelby County Rural Housing homebuyers Program:

Section 502 Guaranteed Rural Housing Loan Program
 income limits for usda rural housing loan program for shelby county kentucky
Maximum Adjusted Household Income for Selected State and County :  $83,950.00
Section 502 Direct Rural Housing Loan Program
 
Maximum Adjusted Household Income for Selected State and County :  $58,400.00

 

Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House

Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House.

via Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House.

Kentucky First Time Home Buyer Grants and Loan Programs

Kentucky First Time Home Buyer Grants and Loan Programs.

via Kentucky First Time Home Buyer Grants and Loan Programs.

What is a Good Credit Score to qualify for a Kentucky Mortgage Loan for USDA, RHS, VA, FHA, and Fannie Mae

What is a Good Credit Score.

via What is a Good Credit Score.

What is a Good Credit Score to qualify for a Kentucky Mortgage Loan for USDA, RHS, VA, FHA, and Fannie Mae

 

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What is a Good Credit Score?

An established credit history and credit score often stands between potential home or car buyers and their dream. But What is a good credit score? What exactly is a credit score? What makes a credit score “good?” How to improve your credit score? If you’re new to building credit there are a few things you need to know in order to keep your credit looking stellar.
What is a credit score?
Your credit score is a numerical representation of your credit report. This three-digit number is like a badge that predicts risk, credit responsibility and determines your interest rates if you borrow money from lenders much like your CLUE Report. While you will be able to get a copy of your credit report you may not find this numerical key listed. Think of your credit score like the cliff notes version of your credit report. There are a few different measures of credit scores between divisions. Based on their own systems different scorers might view certain numbers in many ways.

what is a good credit score

what is a good credit score
Deciphering your three-digit credit score is quite easy if you know the levels. The range usually runs from 300-850. Good to excellent credit is considered anything from 700 to 850. If your credit score falls in this range you’re going great! Fair credit runs from 625-699, poor runs from 550-624, and anything below 550 is bad. Some finance experts would classify anything over 720 a good credit rating. Experts will disagree depending on their preferred credit rating systems, and in most cases the criteria you use to determine whether or not your credit score is good will not be far off.
What Does a Good Credit Score Mean?
Having a good credit score is great, but if you don’t know how to use it you could be missing out on some crucial credit building. Credit scores are used in varying ways by lenders and banks. One thing your credit score implies is how likely you are to pay back debt. Basically it announces how reliable you are as a borrower. People with good credit scores are more likely to pay back funds that they borrow while those with lower scores aren’t so reliable. Lenders like reliable borrowers, and good credit points them out.
But a credit score does much more than predict whether or not you’ll pay a loan back. When it comes to buying a house or car, there is an interest charge. Higher credit scores usually have a lower interest rate than those with bad to fair credit. Lenders not only base whether or not they’ll approve a loan by your credit score, but also how much interest to charge. If your credit is in good standing your interest rate won’t be as high as someone with bad credit. Your credit score saves you money with lower interest rates.
How is a Credit Score Calculated?
In order to build and maintain good credit you must first know how your score is determined. Once you know what goes into a credit score you can begin building your credit or nursing your score towards higher digits. Credit scores are based on your financial history only, and laws prevent your score being affected by things like race, gender, age and where you live. What is included are items such as your payment history, your current credit debts, age of your credit history, new credit items added to your accounts and types of credit used.
These five basic areas are where the bulk of your credit score is formed. All criteria have varying degrees of involvement in your score. For example:
  • Payment history (35%) – How many on-time payments you’ve made, missed, defaulted and past due items
  • Current amount owed (30%) – How much you currently owe – if you owe a large amount this could negatively affect your score
  • Age of credit history (15%) – The average length of your credit accounts and time since last activity
  • New credit (10%) – The number of new credit items on your accounts
  • Types of credit (10%) – The kinds of credit accounts are you currently maintain
How to Improve Your Credit Score?
Many people avoid credit based on all the negatives they’ve heard against it, but neglecting your credit score hurts your chances of being able to make major purchases in the future. The best way to build credit is to use credit, and forming the following good credit habits early will pull your low score to higher ground.
  • Pay bills on time – This is the easiest and best way to boost your credit score. Since the bulk of your credit score comes from your payment history, paying bills on time will pull you up quickly. Not only will that help, but a recent and consistent history of paying bills on time overshadow a period long in the past where you may have missed payments.
  • Budget – Setting up a budget and staying within its parameters will keep you from overspending and using credit for frivolous things. Although using credit builds credit not being able to pay it off hurts more in the future.
  • Use all your credit cards regularly – If you have a few credit cards try to use them from time to time in order to show that you use all of your accounts. Remember that the last usage of an account is 15% of your score.
If you want to start repairing a bad credit history or start building yours, find out what your credit score is. I use Credit Karma to check mine, you can check out my review of Credit Karma or if want just apply here –www.creditkarma.com.
Making your way to a good credit score and keeping your score high won’t be a financial nightmare when you know how to build it and what it means financially.


Posted By Blogger to Louisville Ky Mortgage Lender FHA/VA

Joel Lobb (NMLS#57916)
Senior  Loan Officer

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.

Kentucky USDA Loans | Rural Housing Loans Kentucky

Kentucky USDA Loans | Rural Housing Loans Kentucky.

via Kentucky USDA Loans | Rural Housing Loans Kentucky.

100% Financing Zero Down Payment Financing Kentucky Mortgages and Home loans

Buy a Home with No Down-Payment or Refinance Your Mortgage to 100% Just a few years ago, most mortgage companies offered no money down home loans, but today only there are only a handful of experienced lenders offering the USDA and VA home loans. Don’t miss out on affordable mortgage rates for no equity mortgages. Now is the time to discuss no money down home buying or no equity refinancing while rates are low and the programs still exist.

 

13959394512549000293

 

 

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). 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 USDA Guaranteed loans applicant’s household income cannot exceed adjusted annual income limits

Kentucky USDA Guaranteed loans applicant’s household income cannot exceed adjusted annual income limits


7 CFR 1980.347 Annual Income

To participate in the SFHGLP, an applicant’s household income cannot exceed adjusted annual
income limits as set forth in 7 CFR 1980 1980.345(a). The calculation of annual income, as set forth in
7 CFR 1980.347, require the lenders to document the annual income for all adult members of the
household. All sources of income in the household must be considered in the determination, regardless
of whether the household member is a party to the note. Current verified income should be used to
estimate the household’s annual income over the ensuing 12 months, unless there is verified evidence
of a likely change in circumstances, or historical data which does not support current income. Lenders
should use the gross amount before any payroll deductions of base wages and salaries, overtime pay,
commissions, fees, tips, bonuses, housing allowances, income from deposit accounts, investments and
other assets, unemployment benefits and other compensation for personal services of all adult members
of the household.
Once the income source is verified, the lender must project the expected income from this source for
the next 12 months. This calculation is used only to determine the household eligibility for the
SFHGLP. This calculation does not necessarily represent stable and dependable income for
repayment of the loan. This projection should be based on a comparison and analysis to establish
earning trends and avoid underestimating annual income for the household. The following methods
represent examples of calculating annual income. The lender should choose the most representative
calculation method which most accurately reflects the applicant’s income to be received during the
next 12 months and validated by supporting documentation.

Income Type Definition of Income Example Guidance Example Calculation

Straight Income Straight is based upon the
wage or benefit amount
and converted to the annual
equivalent.
For example, if an applicant is
paid hourly and works 40 hours
per week, income would be
derived by multiplying the hourly
wage by 2080 hours (for part-time
For example:
$20/hour x 2080 hours per year
(40 hours/week x 52 weeks/year)
= $41,600.
Overtime paid at $30/hour x 50 employment use anticipated
annual hours). If paid weekly, the
weekly wage is multiplied by 52
weeks. Bi-weekly paid
employee’s wages are multiplied
by 26 weeks and a monthly wage
is multiplied by 12 months.
hours/year = $1,500.
Total wages in this example:
$43,100.
Averaging Income Averaging income is
permissible if reported on
the pay stubs or benefit
statements for the last 30
days and covert to the
annual equivalent.
An example is of an applicant
who has submitted income
records for the period of the last
30 days.
For example:
The gross income received in the
past 30 days is $5,192 as verified
by pay stubs.
Multiply $5,192 by 12 to arrive at
the annual income of the
household.
$5,192 x 12 = $62,304.
Year-to-date
(YTD)
Year-to-date (YTD) gross
earnings divided by the
YTD interval, which is the
number of calendar days
elapsed between January 1
of the current year and the
date of the most recent
income verification,
multiplied by 365.
The YTD interval should be
closely examined to determine the
appropriateness of this method.
Lenders should not use this
method if the duration of the
YTD interval is insufficient, i.e.,
too short, to make a credible
annual projection. Generally,
there should be at least 3 months
of earnings when using this
method.
For example:
The applicant worked 230 days to
date (e.g. August 18) and income
earned during that time period is
$40,000.
Divide $40,000 by 230 days;
arrive at $173.91/day, then
multiply by 365 to arrive at the
annual income of $63,477.15.
Historical Income Historical income as
reported on the previous
year’s tax return is used.
Consider the time of year and the
reasonableness of this approach.
For example, if the income
documentation submitted is for
January of the current calendar
year, the historical data from the
previous year may be utilized.
For example:
The date is January 15. The most
representative income for the
applicant is the previous 12
months. The applicant earned
$60,000, in the previous tax year.
The applicant worked all year.
The anticipated annual income for
the ensuing year is $60,000.

7 CFR 1980.348 Adjusted Annual Income

Deductions may be made to determine the adjusted annual income which will be used to determine
eligibility. Adjustments to the annual income determination, in accordance with 7 CFR 1980.348,
include:
 deductions for dependants
 deductions for child care expenses
 deductions for qualifying elderly household member(s)
 deductions for the care of household members with disabilities
 deductions for medical expenses related to elderly households
To be eligible, the adjusted annual income must be within the applicable published income limits of
the county in which the subject property is located. Current income limits may be found at

http://eligibility.sc.egov.usda.gov/eligibility/.

 

Attachment A to this AN is provided as an aid to document eligibility of the household for the
SFHGLP. Completion of the attachment will demonstrate the lender has accurately computed
eligible income for the household. The determination of eligible household income should be
retained in the lenders permanent case file in accordance with 7 CFR 1980.347.

Documentation of Eligible Household Income

The lender’s permanent case file must retain supporting documentation that Agency guidelines have
been met. Attachment A provides lenders a format for documenting their income determination from
the various household income sources. An example of a case study of household income and an
example of a completed income determination follows the attachment.
The lenders calculation and determination of eligible household income should be submitted for all
requests for guarantee in accordance with 7 CFR 1980.353(c).
Lenders who utilize the Agency’s automated underwriting system are not required to submit
documentation of the household’s income verifications when receiving an “Accept” underwriting
recommendation, except as otherwise provided below. All documentation will be retained in the
lender’s permanent loan file for audit purposes.
The loan application package forwarded to the Agency must include copies of all income verification
documents from all sources/types of income from all household members in the following cases:
 Manually underwritten loans that were not submitted through the Agency’s Guaranteed
Underwriting System (GUS).
 Manually underwritten loans receiving a “Refer” or “Refer with Caution” underwriting
recommendation when utilizing GUS.
Lenders receiving an “Accept” underwriting recommendation do not need to submit income
verifications except when the GUS underwriting findings indicate the loans were selected for a quality
control review (Lender Condition 31063 on the GUS Underwriting and Findings Report). Lender
Condition 31063 is a quality control message requiring lenders to submit documentation supporting
their commitment request. The GUS system randomly selects final applications receiving an “Accept”
underwriting recommendation. When triggered, the lender should submit documentation noted on
Attachment C to this AN when requesting a commitment. This quality control measure ensures
lenders are accurately identifying, verifying, calculating and documenting eligible household income.
It also validates the integrity of the lender’s data in GUS.

Confirming Lender’s Determination of Eligible Household Income

For manually underwritten loans, agency staff should recalculate the lender’s determination of eligible
income if the lender’s adjusted annual income calculation is within 10 percent of the income limit. Agency staff will utilize Attachment B to this AN to record the Agency’s calculation. Attachment B
will be imaged with essential documents in the Agency’s Imaging Repository.
Lender Action:
Identify, Verify, Calculate and Document Repayment Income to Qualify the Loan
7 CFR 1980.345 Adequate and Dependable Income
Repayment income often differs from annual adjusted income; repayment income must be treated
independently of the household’s adjusted annual income. Lenders use repayment income to
determine if applicant(s) have sufficient income to repay the mortgage in addition to other recurring
debts. To compute repayment income, the lender will count only the income of persons who will be
parties to the note.
The anticipated repayment income, and its likelihood of continuance, must be established to determine
the applicant’s capacity to repay the loan. Income from any source that cannot be verified, is not
stable, or cannot be reasonably expected to continue for at least the next three years, must not be used
in calculating the applicant’s repayment income. The lender must determine the sources of all income
and that the income is stable. There is no minimum length of employment to consider the income as
adequate and dependable. However, the lender must verify the applicant’s employment for the most
recent two full years and verify that the applicant’s income has been and will be stable. In most
instances, a two-year history of receiving income is required in order for the income to be considered
stable. The lender should focus on the applicant’s occupation, tenure, past employment history and
probability of continuation.
Many income sources such as commission, bonus, overtime, tips and income from a second job should
have a documented two year history. If less than a two year history is utilized for qualifying the loan,
the lender must document in their underwriting analysis a credible basis for determining the income as
stable and dependable.
Non-employment income sources such as child support, alimony, public assistance payments, social
security, retirement, etc., can be considered stable to the extent that they are reasonably expected to
continue for at least the next three years.
Generally, income from self-employment is considered stable and dependable if the applicant has been
self-employed for two or more years documented by not less than two years of income tax returns.
Projected or hypothetical income from any source is not acceptable for repayment purposes.
The Guaranteed Underwriting System (GUS) does not evaluate the stability and dependability of
repayment income in the overall risk evaluation. The lender must determine the history and stability of
earnings prior to entering repayment income into GUS. Lender Action:

Determination and Documentation of Repayment Income

The lender’s permanent case file must retain supporting documentation stable and dependable income
in accordance with

Attachment A provides lenders a format for documenting the various sources and analysis supporting
the adequate and dependable income calculations.
The loan application package forwarded to the Agency must include copies of all income verification
documents supporting the calculation and determination of stable and dependable income for all
parties to the note in the following cases:
 Manually underwritten loans that were not submitted through GUS.
 Manually underwritten loans receiving a “Refer” or “Refer with Caution” underwriting
recommendation when utilizing GUS.
Authorized lenders receiving an “Accept” underwriting recommendation do not submit income
verifications except whether GUS underwriting findings indicate the loan was selected for a quality
control review (Lender Condition 31063 on the GUS Underwriting and Findings Report) Lender
Condition 31063 is a quality control message requiring lenders to submit documentation supporting
their commitment request. The GUS system randomly selects final applications receiving an “Accept”
underwriting recommendation. When triggered, the lender should submit documentation noted on
Attachment C to this AN when requesting a commitment. This quality control measure ensures
lenders are accurately identifying, verifying, calculating and documenting stable and dependable
income when qualifying the loan. It also validates the integrity of the lender’s data in GUS.

Confirming Lender’s Determination of Repayment Income

For manually underwritten loans, agency staff should recalculate the lender’s determination of
repayment income for manually underwritten loans, during the review process, if the lender’s
repayment ratios are within 10 percent of the maximum debt ratio limits. Repayment ratios greater than
26.0 percent of principal, interest, taxes and insurance (PITI), and/or greater than 37.0 percent total
debt ratio (TD) require Agency staff to recalculate repayment income. Agency staff will utilize
Attachment B to this AN to record the Agency’s calculation. Attachment B will be imaged with
essential documents in the Agency’s Imaging Repository. Agency Action:

Buying a Home after Bankruptcy

Buying a Home after Bankruptcy.

via Buying a Home after Bankruptcy.