Kentucky Rural Development Loans

Kentucky Rural Development

Guaranteed Housing

Home Financing Options for Kentucky Home Buyers Lenders

Think Guaranteed First!

Advantages Frequently Asked Questions Choose Rural Development Applicant Eligibility How to start Become an approved lender Checklists and web site links. Brochures and guides. Training  Find a Rural Development office  What is the Rural Development guarantee.

Do you have clients with no down payment?  Do you have clients with some cash but they do not wish to exhaust all of it to buy a home?   How many times have you pre-qualified an applicant only to realize that the mortgage insurance or higher interest rates keep them out of the price range needed to accommodate their family?    The Rural Development guarantee may be able to help!  Generous income limits  Flexible credit and qualifying ratios can help open up a new market of homebuyers.   Competitive 30 year fixed rates - no monthly mortgage insurance allows you to offer affordable payments to all homebuyers.  No down payment and no cash reserve requirements help you qualify more clients. No maximum purchase price or mortgage limit. Become an expert in Guaranteed Rural Housing financing to gain more clients and close more loans in small communities and rural areas. Rural Development assists thousands of clients annually to become homeowners.  This year we want you as our partner!

The advantages: 

• Loan up to appraised value plus the guarantee fee.
• Low monthly mortgage insurance (MI) .35% monthly on 30 years and universal for all credit scores. 
• Maximum loan amount is the appraised value plus a one time guarantee fee.
• No cash contribution or cash reserves required from applicant.
• Unrestricted gifts.
• Non-traditional credit acceptable.
• Streamlined credit documentation available - based upon credit.
• No minimum credit score.
• Repayment ratios are 29/41.  Ratio waivers are allowed with documented compensating factors.
• Not limited to first-time home buyers.
• Competitive market based fixed interest rates with 30 year term.
• Available secondary markets: wholesale lenders as well as Fannie Mae, Freddie Mac, and Ginnie Mae.
• Qualifies for Community Reinvestment Act (CRA)
• Agency approved lenders underwrite the loan.
• Any lender, or broker, may originate loans through an Agency approved lender.
• Agency guarantee commitments are issued within 1-2 business days of receipt of the complete package - based on volume of loan requests.
• Rural Development provides lender support for questions, training, and outreach assistance.

     Choose Rural Development as the first option

• A competitive fixed rate combined with no mortgage insurance provides long term savings for the customer. 
•  Home buyers are able to retain their savings since there is no down payment requirement and closing costs can be financed up to the appraised value.
• Lenders report an overwhelming preference for the Guaranteed Rural Housing loans for the great value it provides to their customers.  Choose the best program for your customers!

Applicant eligibility criteria: 

• Occupy the property as your primary residence.  
• Be able and willing to occupy the property. 
• Be a U.S. citizen, a U.S. non-citizen national or a qualified alien. 
• Demonstrate an ability and willingness to meet obligations and debts as they become due.
• Have a credit history that indicates a willingness to meet obligations as they become due.
• Have an adjusted household income that is within Rural Development guidelines based on the number of persons who will occupy the home.  
• Purchase a residential property that is within a Rural Development eligible area. 

 Checklists and web site links:

• Determine if the property is within the Rural Development eligible area. 
• Use the link "Single Family Housing" under "Property Eligibility". 
• Determine if your applicant's adjusted household income is within the Agency limits,
• Use the link "Single Family Housing" under "Income Eligibility"
•  What is adjusted household income? 
• Determine income limits by State or particular county
• Loan application package checklist 
•  Forms list
  • Form RD 1980-21, Request for SFH Conditional Commitment
• Useful web links

 Brochures and guides:

• Guaranteed Loan brochure
• A quick guide overview to Guaranteed Loans
•  For additional information contact your local Rural Development office. 

T

Find a Rural Development office. 

• The Rural Development Office Locator website is: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd
• Look in the telephone directory blue pages under United States Department of Agriculture, and then look for Rural Development or Rural Housing Service.

 What is the Rural Development "guarantee"?

• Lenders have less risk with the Rural Development guaranteed loans than with conventional loans covered by private mortgage insurance. 

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