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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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Kentucky USDA RHS Rural Housing Mortgage Loans for 2013

Kentucky USDA RHS Rural Housing Mortgage Loans for 2013

Kentucky USDA Rural Program Guidelines

Borrower Eligibility
U.S. citizens
Permanent resident aliens
First time homebuyers allowed
Maximum 2 borrowers allowed
Non-occupant co-borrowers NOT allowed
Commitment Fee
USDA Rural Developmet charges a 2% Commitment Fee
Commitment Fee can be financed into the loan
Example:
Purchase price – $100,000
Loan amount – $102,040
Commitment Fee – $2,040
Maximum financed loan amount = $102,040 ($100,000 [purchase price]/.98)

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

Downpayment Requirement
No down payment is required
If borrower has adequate assets (i.e. 20% of the property purchase price) to obtain conventional financing the borrower may be ineligible for the USDA Rural Development Loan
Eligible Properties
Must be in an eligible Kentucky USDA Rural Development Location
Owner-occupied properties
Existing attached & detached single family residences
New construction with permanent financing only
PUD’s (i.e. Townhomes)
Condo-units. HUD, VA, FNMA or FHLMC approved project
Ineligible Properties
Co-ops
Mixed-use
Condotels
Manufactured homes
Log cabin homes
Single Family Homes where the Land value exceeds 30% of the appraised value AND can be sub divided.
Maximum Income Amount
County specific. Reference the USDA website for adjusted household income limits
Maximum Loan-To-Value
Maximum loan-to-value is 102%
Maximum Mortgage Amount
None
Minimum Credit Score
Middle Credit Score – 640 for each applicant for GUS automated underwriting approval
Monthly Mortgage Insurance Premium (MIP) Requirements
.40 basis points  USDA Loan require a monthly mortgage insurance premium. For example on a $100,000.00 it would be $33.33 a month
Multiple Property Ownership
Kentucky USDA Rural Development often won’t allow applicants to own other properties
Exceptions include when the other property owned is:
Not owned in the local commuting area as the new property; or
Not structurally sound and/or functionally adequate
Manufactured home not on permanent foundation

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

Occupancy Type
Owner occupied only
Qualifying Ratios
29/41% debt-to-income (DTI) – Target
Higher dti allowed on Gus Approvals or With compensating factors such as:
680 or higher credit score
No or low “payment shock” – less than a 100% increase in proposed mortgage payment Vs. current rental housing expenses
Fiscally sound use of credit
Ability to accumulate savings
Stable employment history with 2 or more in current position or continuous employment history with no job gaps
Cash reserves available for use after settlement
Career advancement as indicated by job training or additional education in the applicants profession
Trailing spouse income – as a result of a job transfer, the house is being purchased, prior to the secondary wage-earner obtaining employment. If the secondary wage-earner has an established history of employment and has a reasonable chance to obtain new employment in the area
Low total debt
Seller Contribution
Unlimited Contribution towards closing costs, prepaids, discount points, buydown fees, and upfront Commitment Fee
Transaction Types
Purchase
Rate/Term Refinance on existing USDA loan

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

Buying a Home after Bankruptcy

Buying a Home after Bankruptcy.

via Buying a Home after Bankruptcy.

Bullitt County KY USDA and Rural Housing Mortgages

Image: The current area eligible in Bullitt County Kentucky for USDA and RHS loans consist of the following areas:

Mount Washington KY, 40047

Shepherdsville KY 40165

KY Bullitt County Ineligible Area

 

Bullitt County Ineligible Areas: The areas of Hillview, Brooks, Zoneton, and Hebron, commonly known as North Bullitt Area, are ineligible for Rural Development financing. The Line begins on the West at the Jefferson / Bullitt County line at Holsclaw Hill Road and follows Holsclaw Hill Road. South to Brooks Hill Road. The line continues South-Southeast to intersect with an East West line drawn from Bells Mill Road. At the intersection of Bells Mill Road. and Floyds Fork the line follows Floyds Fork East and then Northeast where it intersects the Bullitt County line .5 mile East of Floyds Fork.

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

Louisville Ky Down Payment Assistance Mortgage Program

Louisville Ky Down Payment Assistance Mortgage Program.

via Louisville Ky Down Payment Assistance Mortgage Program.

Credit Scores and the Kentucky USDA Rural Development Loan Program

Credit Scores and the  Kentucky  USDA Rural Development Loan Program

 

The Kentucky USDA Rural Development Loan Program is by far the most credit score friendly loan program currently available. While USDA is willing to work with scores lower than 640 most lenders won’t. Thus, pragmatically the minimum credit score required by USDA is 640.

 

For Kentucky homebuyers with a minimum credit score of 640 lenders may streamline the credit approval process normally required as part of the underwriting process. This means that a borrower:

 

With a lack of credit “depth” will not have to document non-traditional credit items such as utility or insurance payments
A negative past credit history may allow the Underwriter to not request letters of explanation for the cause of the past challenges
Collection accounts can remain open provided the Underwriter believes it unlikely that the account will eventually turn into a judgment

However, USDA is not willing to overlook certain overtly negative credit items even when the credit scores are over 640. For instance borrowers with any of the following adverse past credit should not expect to obtain credit approval using the Kentucky USDA loan program:

 

Foreclosure or short sale within the last 3 years
Chapter 7 bankruptcy discharged within the past 3 years
Chapter 13 bankruptcy debt restricting plan completed within the last 12 months
Late mortgage payments within the last 12 months
Applicant or co-applicant delinquent on a federal debt; such as taxes, student loans, or previous agency loan (i.e. VA loan in which the eligibility was forfeited due to a foreclosure)

Kentucky USDA may be willing to give a borrower an exception to a past bankruptcy or foreclosure prior to the three year period provided the borrower can document the cause of the past negative credit experience as being related to an illness or job loss and unlikely to reoccur.

 

Once the credit score exceeds 680, Kentucky USDA allows this score to be considered as justification for allowing the borrowers debt-to-income-ratio to exceed the target ratios of 29% for the housing costs and 41% for the total debt ratio. Frequently USDA will approve loans where the housing ratios are in the high 30% range and total debt ratios are in the high 40% range.

 

Bottom line the Kentucky USDA Rural Development Loan Program is more flexible in approving a perspective borrower than any other loan program. But like any loan program today, the Loan Officer shouldn’t assume that this level of credit flexibility will result in an automatic positive underwriting decision if the Underwriter doesn’t feel strongly that the borrowers chance of success at homeownership is strong.

 

Downpayment Requirement
No down payment is required
If borrower has adequate assets (i.e. 20% of the property purchase price) to obtain conventional financing the borrower may be ineligible for the USDA Rural Development Loan

 

Eligible Properties
Must be in an eligible USDA Rural Development Location
Owner-occupied properties
Existing attached & detached single family residences
New construction with permanent financing only
2-4 unit properties
PUD’s (i.e. Townhomes)
Condo-units. HUD, VA, FNMA or FHLMC approved project

 

Ineligible Properties
Co-ops
Mixed-use
Condotels
Manufactured homes
Log cabin homes
Single Family Homes:
 
The property must be “Modest” residential lot that can’t be subdivided
Land value exceeds 30% of the appraised value

 

Maximum Income Amount
County specific. Reference the USDA website for adjusted household income limits

 

Maximum Loan-To-Value
Maximum loan-to-value is 103.50%

 

Maximum Mortgage Amount
None
With in-ground swimming pool

 

Minimum Credit Score
Middle Credit Score – 640 for each applicant

 

Monthly Mortgage Insurance Premium (MIP) Requirements
0%. USDA Loan doesn’t require a monthly mortgage insurance premium

 

Multiple Property Ownership
USDA Rural Development primarily doesn’t allow applicants to own other properties
Exceptions include when the other property owned is:
 
Not owned in the local commuting area as the new property; or
Not structurally sound and/or functionally adequate

 

Occupancy Type
Owner occupied only

 

Qualifying Ratios
29/41% debt-to-income (DTI) – Target
39/49% debt-to-income (DTI) – With compensating factors such as:
 
680 or higher credit score
No or low “payment shock” – less than a 100% increase in proposed mortgage payment Vs. current rental housing expenses
Fiscally sound use of credit
Ability to accumulate savings
Stable employment history with 2 or more in current position or continuous employment history with no job gaps
Cash reserves available for use after settlement
Career advancement as indicated by job training or additional education in the applicants profession
Trailing spouse income – as a result of a job transfer, the house is being purchased, prior to the secondary wage-earner obtaining employment. If the secondary wage-earner has an established history of employment and has a reasonable chance to obtain new employment in the area
Low total debt

 

Seller Contribution
Unlimited Contribution towards closing costs, prepaids, discount points, buydown fees, and upfront Commitment Fee

 

Transaction Types
Purchase
Rate/Term Refinance on existing USDA loan

 

Kentucky USDA Rural Development County Specific Income and Location Guidelines

 

County Max Household Income Location Restrictions
  1 – 4 5 + People
Adair $74,050 $97,750 100% Eligible
Allen $74,050 $97,750 Partially Eligible
Anderson $74,050 $97,750 100% Eligible
Ballard $74,050 $97,750 100% Eligible
Barren $74,050 $97,750 Partially Eligible
Bath $74,050 $97,750 Partially Eligible
Bell $74,050 $97,750 100% Eligible
Boone $79,950 $105,550 Partially Eligible
Bourbon $75,350 $99,450 Partially Eligible
Boyd $74,050 $97,750 Partially Eligible
Boyle $74,050 $97,750 100% Eligible
Bracken $79,950 $105,550 Partially Eligible
Breathitt $74,050 $97,750 100% Eligible
Breckinridge $74,050 $97,750 100% Eligible
Bullitt $74,050 $97,750 Partially Eligible
Butler $74,050 $97,750 Partially Eligible
Caldwell $74,050 $97,750 100% Eligible
Calloway $74,050 $97,750 Partially Eligible
Campbell $79,950 $105,550 Partially Eligible
Carlisle $74,050 $97,750 100% Eligible
Carroll $74,050 $97,750 Partially Eligible
Carter $74,050 $97,750 Partially Eligible
Casey $74,050 $97,750 100% Eligible
Christian $74,050 $97,750 Partially Eligible
Clark $75,350 $99,450 Partially Eligible
Clay $74,050 $97,750 Partially Eligible
Clinton $74,050 $97,750 100% Eligible
Crittenden $74,050 $97,750 100% Eligible
Cumberland $74,050 $97,750 Partially Eligible
Daviess $74,050 $97,750 Partially Eligible
Edmonson $74,050 $97,750 100% Eligible
Elliott $74,050 $97,750 Partially Eligible
Estill $74,050 $97,750 100% Eligible
Fayette N/A N/A Completely Ineligible
Fleming $74,050 $97,750 Partially Eligible
Floyd $74,050 $97,750 100% Eligible
Franklin $75,550 $99,750 Partially Eligible
Fulton $74,050 $97,750 Partially Eligible
Gallatin $79,950 $105,550 Partially Eligible
Garrard $74,050 $97,750 100% Eligible
Grant $74,050 $97,750 Partially Eligible
Graves $74,050 $97,750 100% Eligible
Grayson $74,050 $97,750 Partially Eligible
Green $74,050 $97,750 100% Eligible
Greenup $74,050 $97,750 Partially Eligible
Hancock $74,050 $97,750 Partially Eligible
Hardin $74,050 $97,750 Partially Eligible
Harlan $74,050 $97,750 100% Eligible
Harrison $74,050 $97,750 Partially Eligible
Hart $74,050 $97,750 100% Eligible
Henderson $74,050 $97,750 Partially Eligible
Henry $74,050 $97,750 Partially Eligible
Hickman $74,050 $97,750 100% Eligible
Hopkins $74,050 $97,750 Partially Eligible
Jackson $74,050 $97,750 100% Eligible
Jefferson N/A N/A Completely Ineligible
Jessamine $75,350 $99,450 Partially Eligible
Johnson $74,050 $97,750 100% Eligible
Kenton $79,950 $105,550 Partially Eligible
Knott $74,050 $97,750 Partially Eligible
Knox $74,050 $97,750 100% Eligible
Larue $74,050 $97,750 100% Eligible
Laurel $74,050 $97,750 Partially Eligible
Lawrence $74,050 $97,750 100% Eligible
Lee $74,050 $97,750 Partially Eligible
Leslie $74,050 $97,750 100% Eligible
Letcher $74,050 $97,750 Partially Eligible
Lewis $74,050 $97,750 100% Eligible
Lincoln $74,050 $97,750 Partially Eligible
Livingston $74,050 $97,750 Partially Eligible
Logan $74,050 $97,750 100% Eligible
Lyon $74,050 $97,750 Partially Eligible
Madison $74,050 $97,750 Partially Eligible
Magoffin $74,050 $97,750 100% Eligible
Marion $74,050 $97,750 100% Eligible
Marshall $74,050 $97,750 Partially Eligible
Martin $74,050 $97,750 Partially Eligible
Mason $74,050 $97,750 100% Eligible
Mccracken $74,050 $97,750 Partially Eligible
Mccreary $74,050 $97,750 Partially Eligible
Mclean $74,050 $97,750 100% Eligible
Meade $74,050 $97,750 Partially Eligible
Menifee $74,050 $97,750 100% Eligible
Mercer $74,050 $97,750 Partially Eligible
Metcalfe $74,050 $97,750 Partially Eligible
Monroe $74,050 $97,750 100% Eligible
Montgomery $74,050 $97,750 100% Eligible
Morgan $74,050 $97,750 Partially Eligible
Muhlenberg $74,050 $97,750 Partially Eligible
Nelson $74,050 $97,750 100% Eligible
Nicholas $74,050 $97,750 100% Eligible
Ohio $74,050 $97,750 Partially Eligible
Oldham $74,050 $97,750 100% Eligible
Owen $74,050 $97,750 Partially Eligible
Owsley $74,050 $97,750 100% Eligible
Pendleton $79,950 $105,550 Partially Eligible
Perry $74,050 $97,750 100% Eligible
Pike $74,050 $97,750 Partially Eligible
Powell $74,050 $97,750 100% Eligible
Pulaski $74,050 $97,750 Partially Eligible
Robertson $74,050 $97,750 100% Eligible
Rockcastle $74,050 $97,750 Partially Eligible
Rowan $74,050 $97,750 100% Eligible
Russell $74,050 $97,750 Partially Eligible
Scott $75,350 $99,450 100% Eligible
Shelby $79,800 $105,350 Partially Eligible
Simpson $74,050 $97,750 100% Eligible
Spencer $74,050 $97,750 Partially Eligible
Taylor $74,050 $97,750 100% Eligible
Todd $74,050 $97,750 Partially Eligible
Trigg $74,050 $97,750 100% Eligible
Trimble $74,050 $97,750 Partially Eligible
Union $74,050 $97,750 100% Eligible
Warren $74,050 $97,750 Partially Eligible
Washington $74,050 $97,750 Partially Eligible
Wayne $74,050 $97,750 100% Eligible
Webster $74,050 $97,750 Partially Eligible
Whitley $74,050 $97,750 Partially Eligible
Wolfe $74,050 $97,750 100% Eligible
Woodford $75,350 $99,450 Partially Eligible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011

USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011

USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011
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 insurance on 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.
The annual fee (divided by 12 months gives you the monthly mortgage insurance fee) and upfront guarantee fee are subject to change annually to maintain a subsidy neutral program.
What does “to maintain a subsidy neutral program” mean? It means the USDA program is trying  to model it’s self after the FHA and VA programs which are self sustaining/self funded and do not require congressional approval for funding.
This is great news for tax payers in general but not so much for the potential new home buyer and here’s why. As you see from the example below, the new monthly mortgage insurance will increase your monthly payment which in turn effects your debt to income ratio. Your debt to income ratio is one of the primary factors looked at when an underwriter determines your eligibility for any mortgage and USDA Mortgages have some semi-restrictive debt to income guidelines.
The other down side here is that the monthly mortgage insurance will NEVER go away! Unlike FHA Mortgages or even Conventional Mortgages, the USDA Mortgage will require the monthly mortgage insurance for the entire life of the loan. This will pretty much ensure that you will want to refinance out of your USDA Mortgage and into a Conventional Mortgage without mortgage insurance as soon as you have enough equity in your home.
Current USDA USDA After 10/01/2011
Sales Price $200,000.00 $200,000.00
Loan Amount with USDA Guarantee Fee $207,253.00 $241,250.00
Monthly Payment (with mortgage insurance after 10/2011 on the right) $1,019.56 $1,053.56
Difference In Payment $ 34.00more per 

Apply for a home loan by clicking the link below: It’s free and takes less than 5 minutes Or call us at 502-905-3708 for your free application over the phone

Key Financial Mortgage of Ky (NMLS# 1800) is not affiliated nor a part of the USDA Government Agency.