Wednesday, January 5, 2011

Kentucky Rural Development Frequently Asked Questions (Real Estate Professionals)

Kentucky Rural Development Guaranteed Housing

Frequently Asked Questions (Real Estate Professionals)

Q. Is the loan amount limited to the purchase price?

A. No. It is limited to the appraised value. In addition, the one-time guarantee fee
can be included in the loan above the appraised value.

Q. Can closing costs be financed in the loan?

A. Yes, if the appraised value exceeds the contract amount.

Q. Can repairs be included in the loan?
A. Yes. The appraiser can do an 'as improved' appraisal to include the cost of repairs.

Q. Is mortgage insurance required?
A. No. The Agency charges a one-time guarantee fee that can be financed.

Q. How much time should we allow for closing the transaction?
A. Upon receipt of a complete loan package from an approved lender, our review process takes 24 to 48 hours. The loans close within the typical time frame allowed for conventional financing.
Q. Is there a minimum credit score?
A. No. However, the approved lender will expect an adequate credit history to demonstrate the customer is creditworthy. Currently need a 620 score for Rural Housing Loans

Q, Can a hobby farm be financed?
A. No. The property must be considered a rural residence that does not produce income or have excessive acreage.

Q. Are seller concessions allowed?

A. Yes. Rural Development does not restrict the amount of seller concessions.

Kentucky Rural Development Frequently Asked Questions (Real Estate Professionals)

Call us today for you free approval for a Rural Housing Loan....Call 502-905-3708 for same day approvals...