Sunday, May 29, 2011

KENTUCKY USDA RURAL DEVELOPMENT LOANS ZERO DOWN

USDA RURAL DEVELOPMENT LOANS
 KENTUCKY 


Kentucky USDA is a manually underwritten product that has to be delivered to the Local USDA branch to give the final UW approval and the Guarantee Commitment.

Borrowers household must meet income requirement *: http://www.rurdev.usda.gov/HSF-Guar_Income_Limits.html
*All household income, must be used to determine if they qualify for RD. (even if they are not on the loan)
Guidelines:

Score -  Middle FICO 620
Tradelines- 3 tradelines with 12 months reporting (2 if we have 12 months rent checks also)    VOR or Rent free letter on every file
Employment - 2 years of employment in same field (recent college graduate – transcripts w/ employment within the field studied)
Funding Fee - 3.5% (see worksheet to determine loan amount)
Loan Amount – 103.5% can be calculated using appraised value if higher.  Allowing all fees to be rolled into the loan amount. 
DTI - Standard USDA DTI’s are 29/41%
Debt ratio waiver to 50% with compensating factors. **
The USDA has a max payment shock of 100%.  
Seller paid closing cost - up to 6%

** Compensating factors would include reserves, down payment, 5 years on job, 24 months rent checks pd on time

CREDIT

BK’s- discharged 3 years (ch 7 or 13)             
Foreclosures- 5 years
Collections- UW judgment, $1500 or less in medical can be left open, all others paid

INELIGIBLE

Titles to be held in a Trust 
Non- Occupying Co-borrower
Leasholds
Escrow Holdbacks for repairs



fill-out my free pre-qualification  form by clicking here for USDA loans !