Tag: usda refinance

Kentucky USDA Rural Housing Streamline Refinance Guidelines

KENTUCKY USDA MORTGAGE STREAMLINE REFIANCE

Kentucky USDA Rural Housing Mortgage Lender: Top 5 Reasons To Apply For A Kentucky USDA Rural Housing Streamline Refinance
Rate/Term Refinance
(with
•
Allows financing of
unpaid principal and
eligible costs subject
to available equity
Streamlined Refinance
(without
•
Allows financing of
unpaid principal
balance and upfront
guarantee fee along
with accrued interest
•
Debt ratios are
calculated
Streamlined
Assist
Refinance (no appraisal
effective 6/2/2016)
•
Allows financing of
unpaid principal
balance and eligible
costs
•
Debt ratios not
calculated

Streamline Refinance
•
A new appraisal is not required (unless the loan being refinanced is a Direct Loan and subsidy
recapture is required).
•
The new loan amount may not exceed the original loan amount of loan being refinanced.
•
The new loan is limited to:
•
The principal balance of the loan being refinanced
•
The upfront guarantee fee (if financed)
•
Accrued interest (current interest)
•
Reasonable and customary fee for reconveyance
•
Subsidy recapture due for Direct Loan borrowers may not be included in the new loan amount
•
A borrower may be removed from the loan as long as at least one original borrower remains on
the new loan.
•
All other rate/term refinance requirements, including debt ratio calculation and limits apply.
(Except as outlined above, all Rate/Term Refinance requirements also apply to Streamline Refinance. See the
HB 1 3555 for all three types of refinance transactions allowed.)

Streamlined
Assist Refinance (cont.)
•
The new loan amount is limited to:
•
The unpaid principal balance of the loan being refinanced
•
The upfront guarantee fee (if financed)
•
Accrued interest (current interest)
•
Eligible loan closing costs (not to exceed 2% of total loan amount)
•
Permissible bona fide discount points (not to exceed 2% of total loan amount).
•
Funds to establish an escrow account for real estate taxes and insurance.
•
Subsidy recapture due for Direct Loan borrowers may not be included in new loan amount; however,
the cost of any appraisal obtained for recapture purposes is an eligible closing cost and may be
included.
Note:
The maximum loan amount cannot exceed the balance of the loan being refinanced, plus the guarantee
fee and reasonable and customary closing costs (including funds necessary to establish a new tax and
insurance escrow account). Subordinate financing, such as home equity lines of credit and down payment
assistance “silent” seconds, cannot be included in the new loan amount. Unpaid fees, past due interest and
late fees/penalties due the servicer, cannot be included in the new loan amount.
(Except as outlined above, all Rate/Term Refinance requirements also apply to Streamline
Assist Refinance.)

Joel Lobb
Mortgage Loan OfficerIndividual NMLS ID #57916

American Mortgage Solutions, Inc.10602 Timberwood Circle Louisville, KY 40223Company NMLS ID #1364
click here for directions to our office
Text/call:      502-905-3708fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

USDA Streamline Product: Streamline Assist for all USDA Kentucky Homeowners of current USDA mortgages for refinances


I now offer the USDA Streamline Product: ‘Streamline Assist’ for all USDA Kentucky Homeowners for refinances Take advantage of our Kentucky Rural Development USDA Streamline Refinance today!

 PROGRAM HIGHLIGHTS
  • Min 640 FICO
  • No appraisal
  • 30 year fixed only
  • Rate term only
  • No GUS run
  • No household income calculation
  • Mortgage only credit report
  • 2nd mortgage liens must be subordinated, but no max CLTV
  • Borrowers may be added but not removed from current loan
  • Max loan amount may include P&I balance of existing loan, eligible loan
    closing costs, funds necessary to establish tax and insurance escrow account
    and upfront guarantee fee
  • NTB must be met – $50 reduction in PITI plus annual fee payment
  • Seasoning required – 12 months timely payments prior to new application
    date
  • Streamlined application:
    * No income
    * Disclose assets only if needed to close
    * No liabilities listed other than mortgage to be refinanced
    * REO – list subject property only
New Product - New chalkboard with outlined text - on wood

 

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RHS USDA Recent News
Good news! Kentucky Mortgage holders of USDA Mortgage loans can get  new drastically lower fees starts with commitments starting tomorrow October 1.  If you have an  USDA eligible Loan up to $417,000 with no money down in most Kentucky Counties.
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
 

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Posted By Blogger to Kentucky First Time Home Buyer Mortgage Loans

Can you refinance a Kentucky Rural USDA Housing Loan?

You can refinance your existing USDA Rural Housing Loan. See details below:

 

 

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Can you refinance a Rural Housing Loan? The short answer is yes. See below for qualifying criteria

 

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KENTUCKY  USDA LOAN GUARANTEED RURAL HOUSING REFINANCE FEATURES

  • Loan must be secured by the same property as the original loan. The original loan must be Guaranteed Rural Housing (GRH) or USDA Section 502 Direct only. The Program may not be used to refinance FHA, VA, or other government or conventional mortgages.
  • Term of the new loan will be 30 years.
  • Interest rate of the new loan cannot exceed the interest rate of the loan being refinanced. However, the interest rate of the new loan does not have to meet the interest rate requirements established in RD Instruction 1980-D, §1980.320 Interest rate.
  • Property must be owned and occupied by the borrowers as their principal residence.
  • The guarantee fee is 1.00% of the total principal obligation of the new loan.
  • The 1.00% guarantee fee may be always financed into any GRH refinancing transaction. As usual, borrowers may finance other closing costs and fees up to 100% of the current appraised value. However, it is possible for the loan-to-value (LTV) of the new loan to reach 101% if the 1% guarantee fee is financed. Loans may exceed 100% LTV only to the extent that the excess represents a financed guarantee fee of no more than 1.00%.
  • Total household income cannot exceed the moderate level for the area as established in RD Instruction 1980-D, Exhibit C.
  • GRH refinance loans are permitted for properties in areas that have been determined to be non-rural since the existing loan was made.
  • Applicants are not eligible to receive “cash out” from the refinancing transaction. However, applicants may receive reimbursement from loan proceeds at settlement for their personal funds advanced for eligible loan purposes that are part of the refinance transaction, such as an appraisal fee or credit report fee. At loan closing, a nominal amount of “cash out” to the applicants (beyond reimbursement of these “prepaid” items) may occasionally result due to final escrow and interest calculations. This amount, if any, must be applied to a principal reduction of the new loan.
  • Subordinate financing such as home equity seconds and down payment assistance “silent” seconds cannot be included in the new loan amount. Any existing secondary financing must be subordinate to the new first lien.
  • Maximum loan amount cannot exceed the balance of the loan being refinanced, plus the guarantee fee, and reasonable and customary closing costs, including funds necessary to establish a new escrow account.
  • Unpaid fees, such as late fees due the current servicer, are not eligible to be included in the new loan amount.
  • eligible areas on USDA Rural Development’s web-site at:
  • http://eligibility.sc.egov.usda.govhttp://eligibility.sc.egov.usda.gov

 


For commitments issues on or after October 1, 2016:

USDA charges the lender, who can pass the charge to the borrower, a one-time up-front cost, which is known as a Guarantee Fee. The Guarantee Fee can be financed in addition to the maximum base loan amount. The Guarantee Fee is calculated as follows as of October 1, 2016:
PURCHASE TRANSACTION CALCULATION:

  • 1.00% of the TOTAL loan amount for commitments issued on or after 10/1/16.
  • Calculation: Base loan amount divided by .99 = Total loan amount (round down to nearest dollar). Total loan is then multiplied by 1.00% to get the amount of the guarantee fee.
  • A Guarantee Fee & Annual Fee (monthly) Calculator can be found on the USDA training resource website.

CALCULATION FOR REFINANCE TRANSACTIONS:

  • 1.00% of the TOTAL loan amount for commitments issued on or after 10/1/16.
  • Calculation: Base loan amount divided by .99 = Total loan amount (round down to nearest dollar). Total loan is then multiplied by 1.00% to get the amount of the guarantee fee.
  • A Guarantee Fee & Annual Fee (monthly) Calculator can be found on the USDA training resource website.

ANNUAL FEE:
All loan transactions will include an annual fee of .35%

 

 

 
REPAYMENT RATIOS REFINANCE FOR BOTH GUARANTEED LOAN TO GUARANTEED LOAN AND DIRECT LOAN TO GUARANTEED LOAN:
USDA – GUS Approved
USDA – Manual Underwrite – Must meet USDA guideline maximum debt ratios of 29 & 41%–No Exceptions Allowed.
TERM OF NEW LOAN FOR BOTH GUARANTEED LOAN TO GUARANTEED LOAN AND DIRECT LOAN TO GUARANTEED LOAN:
TERM OF THE NEW LOAN WILL BE A 30 YEAR FULLY AMORTIZED FIXED RATE MORTGAGE ONLY.
INTEREST RATE
  • Interest rate of the new loan must be a fixed rate.
  • The interest rate must be lower than the existing loan to be refinanced.
  • Funded buy down accounts are not permitted.
HOUSEHOLD INCOME Total adjusted income for the household cannot exceed the moderate level for the area as established in HB-1-3555.
LOAN SECURITY
  • Loan security must include the same property as the original loan.
  • The security property must be owned and occupied by the applicants as their principal residence.
RURAL / NONRURAL AREAS SFHGLP refinance loans are permissible for properties in areas that have been determined to be non-rural since the existing loan was made.
PROPERTY VALUATION
  • The value of the new mortgage loan request must be supported by a new appraisal. The loan amount cannot exceed the present market value plus the one-time 2 percent guarantee fee. The new loan amount can include closing costs or lender fees if supported by market value.
INSPECTIONS
  • The lender must confirm the property meets or continues to meet the current requirements of HUD Handbook 4150.2 and 4905.1.
  • No further inspections or repairs required by Rural Development.
  • Lender may require inspections or repairs. Expenses related to inspections or repairs may not be financed.
NET TANGIBLE BENEFIT Every refinance
52798-academy-mortgage-apply-now

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

Kentucky USDA Streamline Refinance – USDA to USDA Refi

Kentucky USDA Streamline Refinance – USDA to USDA Refi
• Costs can NOT be rolled into loan, but NO appraisal rquired
• 640 Minimum Credit Score
• New Guarantee fee is 2.75%, new Annual MI is .5%
• Full Credit Qualifying – Income and assets must be stated, just as any r/t refinance
• 29/41 ratios, manually underwritten. NO GUS is run.
• Interest rate must be 100 bp lower than loan being refinanced (1 full point)
USDA “Pilot” Streamline Refinance  Kentucky, 
• 640 Minimum Credit Score
• Must have made timely mortgage payments for the 12 months period prior to the refinance
• A Rural Refinance Pilot loan may include the existing principal balance of the loan, accrued (non-delinquent) interest, eligible closing costs & pre-paids, plus the upfront guarantee fee. The applicable upfront refinance guarantee fee is 2.75%.
o Closing costs and pre-paids can also be paid in cash or through premium pricing.
o Discount points cannot be financed.
• The new interest rate must be a fixed rate 100 basis points below the current interest rate.
• The new term of the refinance loan must be 30 years
• An annual fee also applies. For FY 2012 the applicable annual fee is 0.50%
• The home must remain the borrower’s primary residence
• 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.
• Income verification for all adult household members.

MUST MEET CURRENT INCOME ELIGIBILITY REQUIREMENTS.
o Salary Income – VOE – 24 month history plus most recent paystub or 2 pay check stubs covering most recent 30 days and W-2 for previous 2 years.
o Self-employed and commissioned borrowers or employed by a relative – 2 years tax returns required.
o All household income must be included in the total eligibility income, even if not on the loan.
• Ratio calculations are not required. Therefore debt ratio waiver requests will not be necessary.

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

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