Showing posts with label 502 USDA. Show all posts
Showing posts with label 502 USDA. Show all posts

Kentucky USDA Rural Housing Mortgage Lender: KENTUCKY USDA MORTGAGE LOANS

Kentucky USDA Rural Housing Mortgage Lender: KENTUCKY USDA MORTGAGE LOANS:


 KENTUCKY USDA MORTGAGE LOANS KENTUCKY USDA Loans are issued by qualified lenders and are guaranteed by the United States Departme...



KENTUCKY USDA Loans are issued by qualified lenders and are guaranteed by the United States Department of Agriculture. These are not farm loans! They are intended to encourage home ownership in rural areas as defined by the USDA in Kentucky.

Here’s a quick overview of KENTUCKY MORTGAGE USDA loans:
  • No down payment - a true 100% LTV Loan
  • Minimum credit score of NONE . Just investors will create overlays and institute a higher minimum credit score-Be aware of this!~!!
  • The following slides will highlight a few key credit requirements.
  • • Credit requirements may vary for loans underwritten with the assistance of the GUS compared
  • to those that are manually underwritten.
  • • Lenders and investors may impose overlays. A common overlay is credit score requirements.
  • Rural Development does not have a minimum published credit score, but many lenders do.
  • • It is the lender’s responsibility to determine the creditworthiness of their applicant. In some
  • cases of adverse credit, the lender’s underwriter can grant credit exceptions.
  • • There are a few instances of adverse credit that a lender cannot waive which include delinquent
  • non‐tax Federal debt, delinquent child support, previous USDA losses, and a CAIVRS claim
  • indicating the applicant is delinquent on federal debt.


  • Borrowers that do not have a credit score may be eligible with additional requirements.
  • Kentucky USDA Rural Housing has a Household income limits apply.
  • The base USDA income limits are for most Kentucky counties below:

    Kentucky USDA Mortgage Limits for Households with 1-4 members have different limits as households with 5-8. Similarly, applicants living in high-cost counties will have a higher income limit than those living in counties with a more average cost of living.

    New Income limits for most counties (*) in Kentucky are $91,900 for a  4 unit household and household families of five or more + can make up to  $121,300.

    The Northern Kentucky Counties (***) of Boon, Kenton, Campbell, Bracken, Gallatin, and Pendleton are $99,250 for a household of four or less and up to $130,000 for a family of five or more.

    Remember,  Jefferson County Kentucky, Fayette County Kentucky are not eligible for USDA loans.

  • Generally easier to qualify for than a Conventional mortgage and much cheaper mortgage insurance than FHA loans in Kentucky!
  • Property must be located in an eligible rural area as designated by map below 
  • No maximum loan amount unlike FHA and Conventional loans.
  • Eligible Property Types:
    • 1 unit properties only and must meet HUD FHA minimum standards
    • HUD Approved Condos
    • New Manufactured Homes (*There is currently a pilot program in KENTUCKY only that allows for existing homes built after Jan. 2006)


Credit Accounts and Adverse Credit

• Authorized user accounts do not require a monthly payment be included in the debt ratio.
However, lenders may include a payment at their discretion.
Chapter 7 Bankruptcy
• A Chapter 7 bankruptcy that is discharged or dismissed more than 36 months at the time of loan
application is not considered adverse credit.
• If the bankruptcy is less than 36 months, a credit exception is required if the GUS underwriting
recommendation is a “Refer” or “Refer with Caution” or the file is a manually underwritten file.
• If the bankruptcy included a mortgage, the lender must include any debt that the applicant may still be liable for such as real estate taxes and home owners insurance.


Chapter 12 or 13 Bankruptcy

• When there is a Chapter 12 or 13 Bankruptcy plan in progress and the GUS loan receives an “Accept” recommendation, the lender must confirm all payments are included on the Assets and Liabilities application page.

• Neither a GUS downgrade nor a credit exception are required.
• If the loan receives a “Refer” or “Refer with Caution” underwriting recommendation or is a
manually underwritten loan, the lender must retain the bulleted list of items shown on this slide.
• If the plan has been completed for 12 months prior to loan application, nothing further is
required regardless of underwriting recommendation.


Charge‐Offs

• If there are charge‐offs, the lender’s underwriter must determine if the credit risk is acceptable.
• Charge‐offs are not required to be paid; however, if there is a repayment plan in place, the
payment must be included.
Collections
• The lender’s underwriter must review all collection accounts and determine if it is an acceptable
credit risk regardless of the GUS underwriting recommendation.
• If the cumulative total of all non‐medical collections exceeds $2000, the lender must:
1. Require payment in full of these accounts prior to closing
2. Use an existing repayment agreement amount OR
3. Include five percent of the outstanding balance.

• All open collections must be listed on the Asset and Liabilities GUS page and noted and marked

• A credit exception is not required for collection accounts regardless of the GUS underwriting
recommendation.


Consumer Credit Counseling Debt Management Plans

• Lenders must include the monthly payment amount in the monthly liabilities and must retain the bulleted list of items shown on this slide.

Delinquent Court Ordered Child Support

• Applicants currently delinquent on court ordered child support are ineligible unless they have an approved repayment agreement and have made 3 timely, consecutive payments.
Delinquent Federal Non‐Tax Debt
• Applicants with delinquent Federal non‐tax debt are ineligible until the debt is paid in full or a
release of liability is documented.


Federal Taxes

• Applicants currently delinquent on federal tax debt are ineligible for a guaranteed loan unless
they have a repayment plan approved by the IRS or pay the total delinquent amount in full prior to closing.
• A minimum of 3 timely, consecutive payments must have been made and the applicant
cannot prepay a lump sum at one time to equal 3 monthly payments.
• An IRS approved extension to file a tax return does not grant the applicant additional time to pay their taxes that are due.
• Applicants must pay their estimated income taxes due by the filing date or they are considered delinquent. 


Deed‐in‐Lieu, Foreclosures, and Short Sales

• Lenders must ensure the Declarations in the GUS are completed accurately.
• A deed‐in‐lieu recorded, foreclosure discharged, or short sale closed 36 months prior to the date of loan application is not adverse credit.
• If the loan receives a GUS “Accept” underwriting recommendation, neither a GUS downgrade nor a credit exception is required.
• A credit exception is required if a deed‐in‐lieu, foreclosure, or short sale occurred within the
past 36 months and the GUS underwriting recommendation is a “Refer” or “Refer with
Caution”.

• A deed‐in‐lieu, foreclosure, or short sale that occurred post divorce or legal separation and the home was awarded to the other party will not count adversely against the applicant if
documentation evidences the debt was current at the time the home was awarded to the other


Previous USDA Loss

• A lender cannot waive adverse credit for an applicant whose previous Rural Development Direct or Guaranteed home loan resulted in a loss to the agency. Only a Rural Development official may grant this exception.
• Rural Development will perform its review after the lender’s underwriter has approved the loan and has processed the final GUS submission.
• The applicant and lender must provide a letter of explanation and supporting documentation as required


Rent/Mortgage Payment History

• An applicant’s current rent or mortgage payment history is a good indicator of the probability of their future mortgage payments.
• A GUS “Accept” file does not require a verification of rent or mortgage.
• A GUS “Refer”, “Refer with Caution”, or manually underwritten loan may require a verification of rent or mortgage. The lender will refer to their GUS Underwriting Findings Report to determine if it is required.
• If a full 12 month verification is not available, the lender may utilize the time period that is
available.
• One rent or mortgage payment that was 30 or more days late in the past 12 months is significant derogatory credit and will require a credit exception from the lender’s underwriter.
25


Contact us for an overview of the property eligibility boundaries specific to your area, or look up the eligibility of a specific address here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

Want to learn more about KENTUCKY USDA loans? Let us know, we are here to help!


Kentucky USDA Mortgage Lender for Rural Housing Loans

Kentucky USDA Rural Development Single Family Housing Guaranteed Loan Program

Fill out my form!
KENTUCKY RURAL DEVELOPMENT LOAN


Kentucky USDA Rural Development Single Family Housing
Guaranteed Loan Program

APPLICANT BENEFITS

 100 percent financing available with no down payment required. Eligible repairs and 
closing costs may be included in the loan up to the appraised value of the property. 
 Upfront guarantee fee may be included in the loan amount above the appraised value. 
 Existing or new construction homes including all Planned Unit Development’s (PUD’s) are 
eligible. 
 Condominiums may be eligible. 
 30 year loan terms with fixed interest rates. 
 No pre-payment penalties. 
 Satisfactory credit and qualifying ratios apply. Nontraditional credit histories may be 
eligible. 

APPLICANT REQUIREMENTS

The following information is not all inclusive. For complete information refer to RD 
Instruction 1980-D, supplemented by applicable Administrative Notices (AN) available 
online at http://www.rurdev.usda.gov/RegulationsAndGuidance.html.  http://www.rurdev.usda.gov/RegulationsAndGuidance.html.
APPLICANT ELIGIBILTY 
The applicant must: 
 Be a U.S. Citizen, legally admitted as a permanent resident, or be a qualified alien. 
 Have the legal capacity to incur the loan obligation. 
 Be unable to secure credit with rate and terms reasonable to the applicant without a 
guarantee from the Single Family Housing Guaranteed Loan Program (SFHGLP).
 Not own a home within the local commuting area at the time of loan closing. Applicants that 
do own a home that is structurally unsound or functionally inadequate, or is located outside 
of the local commuting area may still be eligible for guaranteed loan consideration.
 Occupy the home purchased in an eligible rural area as their permanent primary residence. 
 Have stable and dependable income to ensure repayment ability. Households may not 
exceed the moderate income limit established for the applicable rural area. 
 Have an acceptable credit history that demonstrates the willingness and ability to meet 
financial obligations as they become due. If applicants exhibit unacceptable credit per RD 
Instruction 1980-D, section 1980.345(d) the approved lender may still consider the 
applicant if documented evidence of strong compensating factors as outlined in section 
1980.345(d)(3) exists. 

ANNUAL INCOME LIMITS

 Annual income includes the total gross income of the applicant, co-applicant, and any other 
adult (age 18 and up) household members. 
 Adjustments to annual income may be deducted for program eligibility determination. 
Deductions may be made for dependants, eligible annual childcare expenses, disability 
expenses, and annual medical expenses for elderly families. Please discuss eligible 
deductions with your SFHGLP contact. 
 Income limits are published for each county as an Exhibit to RD Instruction 1980-D and are 
available online at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

REPAYMENT ABILITY: DEBT/INCOME RATIOS

 Repayment ability is determined by calculating the following ratios: 
- PITI (Principal, Interest, Real Estate Taxes, and Homeowner Insurance): The total PITI 
payment divided by the repayment income must be 29 percent or less. 
- Total Debt (TD): The PITI payment plus all other monthly debt obligation payments 
divided by the repayment income must be 41 percent or less.
 Repayment ratios that exceed 29 and/or 41 percentmay be approved by Rural 
Development when a ratio waiver request is provided by the approved lender. The ratio 
waiver must document and provide evidence of strong compensating factors to support the 
request. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012
1400 Independence Ave., S.W. Washington D.C. 20250-0784
202.720.1452
Examples of strong compensating factors include but are not limited to: 
- Current rent/housing payment is equal to or less than the proposed PITI. 
- Applicant has a history of devoting a similar percentage of income to housing expense 
similar to the PITI over the previous 12 months. 
- Strong credit score and repayment history. 
- Reserves are available post loan closing, which evidence the applicant’s ability to 
accumulate savings. 

PROPERTY REQUIREMENTS
ELIGIBLE RURAL AREA

The property must be located in an eligible rural area as defined in 7 CFR 3550.10 as:
1. Open country which is not part of or associated with an urban area. 
2. Any town, village, city or place, including the immediate adjacent densely settled area, 
which is not part of or associated with an urban area and which: 
a. Has a population not in excess of 10,000 if it is rural in character, or 
b. Has a population in excess of 10,000 but not in excess of 20,000, is not contained within 
a Standard Metropolitan Statistical Area, and has a serious lack of mortgage credit for
very low, low and moderate income households as determined by the Secretary of 
Agriculture and the Secretary of HUD.
Property eligibility is available online and through GUS. 

EXISTING HOMES

 Properties must meet HUD Handbooks 4150.2 and 4905.1. An FHA Roster appraiser or 
licensed residential appraiser deemed qualified by the approved lender may certify to this 
determination. 
 A separate home inspection report prepared by the appraiser or a home inspector deemed 
qualified by the approved lender is an acceptable option to ensure properties meet 
minimum standards. 
 Homes must be structurally sound, functionally adequate and in good repair, or will be 
improved to meet good repair. 
 There are no thermal performance standards for existing homes. 
 Private water systems/wells: The local health authority or state certified laboratory must 
perform a water quality analysis, which must meet state and local standards. 
 Private septic systems: The septic system must be free of observable evidence of failure. An 
FHA Roster appraiser, government health authority, licensed septic professional or 
qualified home inspector may perform the septic system evaluation. 
 Termite: If required by the lender, appraiser, inspector, or State law, a pest inspection must 
be obtained to confirm the property is free of active termite infestation. 
 Repairs: Any repairs necessary for the dwelling to be structurally sound, functionally 
adequate and in good repair must be completed prior to the request of the loan note
guarantee. Exception: Escrow accounts that meet the requirements of RD Instruction 
1980-D, section 1980.315 are allowed for exterior weather delayed repairs. When eligible 
escrow accounts are established per section 1980.360(2)(ii) the loan note guarantee will be 
issued without the repairs complete. 
 Existing homes have been completed for more than 12 months or have been completed for 
less than 12 months but have been previously occupied. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012

NEW CONSTRUTION

 Evidence the home was built in accordance with certified plans and specifications (e.g., 
International Residential Building Code, CABO, BOCO, etc.) must be obtained through an 
eligible building permit, certificate of occupancy, or certification for a qualified individual or 
organization that reviews plans and specifications. 
 Evidence of construction inspections performed throughout the project in accordance with 
section 1980.341(b)(2) must be retained. Acceptable documentation includes an eligible 
certificate of occupancy or copies of three inspections performed: (1) inspections prior to 
footing and foundation poured, (2) inspections of plumbing, electrical, and mechanicals 
before the shell is enclosed, and (3) a final inspection will meet requirements.
 Evidence of a builder’s warranty. Minimum one year issued by the builder. If the builder 
has offered a 10 year insured builder’s warranty acceptable to the Agency, this may be 
accepted and evidence of construction inspections will be waived. 
 Thermal performance requirements must meet the 2006 IECC code. An eligible building 
permit, certificate of occupancy, final inspection, or 10 year insured builder’s warranty is 
acceptable evidence this requirement has been met. 
 New construction homes have been completed (as evidenced by a certificate of occupancy)
for less than 12 months and have never been occupied. 
 New manufactured homes must be purchased from an approved dealer –contractors (your 
SFHGLP contact can provide a list of those approved in your state). A unit is considered 
new if the purchase agreement is dated within 12 months of the date the unit was 
manufactured. The date of manufacture is available on the factory installed plate on the 
unit. 

LOAN REQUIREMENTS
LOAN PURPOSES

 Loans must be secured by a first lien on real property in an eligible rural area. 
Loan funds may be used to: 
 Purchase an existing or new construction (stick built, modular, or manufactured) home. 
 Purchase or pay off a site as part of a new construction package. 
 Purchase and improve an existing home. Improvements must be complete before a loan 
note guarantee will be issued. Exception: Escrow accounts are allowed for weather delayed 
exterior repairs only.
 Include eligible loan fees, including legal fees, title services, and eligible closing costs. 
 Refinance existing Section 502 Direct and Guaranteed loans. If only the principal balance 
and the guarantee fee will be financed, no new appraisal is required. If the applicant wishes 
to include eligible closing costs into the loan, a new appraisal is required. A new appraisal is 
always required for Section 502 Direct loan refinances. 
LOAN LIMITS
 The maximum loan amount is 100 percent of the appraised value plus the upfront 
guarantee fee.


-- 

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell

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What do I need to get approved for a Rural Housing Loan in Kentucky?





What do I need to get approved for a Rural Housing Loan in Kentucky?

You really need to look at the four following items below:

Credit Score: They typically want a 640 credit score with no bankruptcies or foreclosures in the last 3 years. KY USDA Loans are initially ran thru GUS (Guarantee Underwriting System), an underwriting approval engine online that Kentucky USDA Mortgage lenders use to tell us how much you are qualified for based on the income, assets, property, and credit provided. Most lenders will want an Approved Eligible. If your score is below 640, you will automatically get a refer eligible which most lenders will not do.

Homeownership: You cannot currently own another home with a USDA loan but there are waivers granted if you can show the current living arrangements are not suitable and safe for your family.

Income: Typically, you cannot make more than $86k approximately for a household family of four, and up to $115k for  a household family of five in most Kentucky counties. Some Kentucky Counties are more but not much.

Location: Kentucky has 120 counties, and USDA is not allowed in the following KY Counties: Jefferson, Fayette (whole county)  and parts of  McCracken, Boone, Kenton, Campbell, Bullitt, Daviess, Warren, Franklin and Christian counties. The best thing to do on the location is tell me an address and I can look it up for you.

I have a website that is really good for USDA loans, located at http://kentuckyruralhousingusdaloan.blogspot.com/p/usda-rural-housing-loan-program.html  that may assist and educate you about the program.


Kentucky FHA Mortgage Loans vs Kentucky USDA Rural Housing Loans Compared



 
FHA Loan Program for Kentucky


Rural housing loan program in Kentucky




Here are the important points about Kentucky USDA Rural Housing Loans:


  • USDA loan are only available in certain counties of Kentucky.
  • There are two types of USDA loans available: Direct and Guaranteed. 
  • 100% financing. No down payment 
  • USDA will go down to 580 score and uses and  automated underwriting pre-approval system called GUS-Guarantee Underwriting System. The GUS findings will dictate your loan pre-approval.
  • Kentucky USDA Rural Housing Income limits based on county and number of people in household. Currently $86,400  for a family of four and up to $115,600  for a family of five or more. 
  • Must be 3 years removed from bankruptcy and foreclosure
  • No purchase price limit
  • Upfront funding fee of 1% of loan amount paid to RD at closing 
  • Annual mi fee of .35% paid each month for life of loan. 
  • Takes on average 30-45 days to close. 
  • 30 year fixed rate is the only term available and rates are usually comparable to FHA and VA government mortgage insured rates.
  • Do not have to be a first time home buyer and can currently own another home if USDA deems the current living situation not suitable. 
  • Appraisal has to meet FHA minimum standards
  • You can buy a home with land on USDA Loans as long as the property does not have any agricultural characteristics or income producing capabilities. 
  • There is no set max acreage but the appraisal will dictate approval of property by USDA. 
  • You can only use USDA loans to purchase property or refinance an existing USDA loan
  • Pools are okay and homes in a flood zone are okay. This is a recent change 



Here are some important facts about Kentucky FHA Loans:


  • FHA loans can be made in any county of Kentucky. 
  • FHA loans require 3.5% down payment
  • FHA Mortgage terms are available in 30, 20, 15, 10 year terms.
  • Credit score down to 500 are acceptable but subject to investor approval.
  • Most lenders will want a 620 score, with some going down to 580 with conditions
  • FHA loans are pre-approved using DU, an online automated underwriting system that will dictate your loan approval conditions. 
  • FHA has max income limits in Kentucky with the maximum being $314,500 for most Kentucky Counties
  • There are no income limits on the household for FHA loans
  • There is a upfront mi premium of 1.75% and a monthly fee of .85% payable each month. 
  • If you finance over 90% of the homes value, the monthly mi factor of .85% is for life of loan. If less than 90%, 11 year term for annual mi fee.
  • FHA, USDA rates are really comparable on paper, no big difference except for the mi
  • FHA requires 3 years out on a short-sale or foreclosure
  • FHA requires 2 years out on Chapter 7 and 1 year out on a Chapter 13 with good clean history for the last 12 months with no lates. 
  • Not required to be a first time home buyer
  • Can refinance an existing FHA loan to another without appraisal, income, a processed call FHA streamline refinance

Joel Lobb (NMLS#57916)
Senior  Loan Officer


American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708

kentuckyloan@gmail.com

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/


KENTUCKY RURAL HOUSING AND USDA LOANS AFFECTED DUE TO GOVERNMENT SHUTDOWN




KENTUCKY RURAL HOUSING AND USDA LOANS AFFECTED DUE TO GOVERNMENT SHUTDOWN
                                                                                                  
Please be advised that the Kentucky USDA Offices are closed due to the Government shutdown. This means that existing loans submitted to USDA for review will not be reviewed by USDA until their offices reopen. In addition to the offices being closed, the GUS automated approval system is also unavailable at this time. No new or existing Kentucky USDA loans can be submitted through the GUS system and Platinum cannot finalize any submissions to USDA for review at this time. Therefore, any new USDA loan submissions or conditions submitted will be suspended by Platinum pending GUS availability.
The closing of the USDA offices and unavailability of GUS may impact the ability of USDA loans to close when scheduled.






-- 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
kentuckyloan@gmail.com



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Kentucky Single Family Housing Guaranteed Loan Program




Kentucky Single Family Housing Guaranteed Loan Program
I have originated over 200 Kentucky and USDA Loans over  my entire 20 year  career. Put my experience to work for you today,. Free Mortgage Pre-Approvals for every County of Kentucky 


24 Questions and  Answers 

1 What is the guarantee?

USDA Rural Development provides the full faith and assurance of the U.S Government
that any financial loss resulting from servicing the loan will be reimbursed in full up to
an amount not exceeding 90% of the original loan amount. All loss up to an amount not
exceeding 35% of the original loan is fully reimbursed. Losses exceeding 35% are 85%
reimbursed.

2 What is the advantage to the customer?

100 percent financing, fixed interest rate, no MIP/PMI, and no restrictions on size or
design are just a few of the advantages.

3 What are the eligibility requirements?

Have adequate and dependable income (up to 115 percent of adjusted area median
income), have acceptable credit, do not own a dwelling in the local commuting area, US
Citizen or permanent resident, have the ability to personally occupy the home on a
permanent basis, and do not have funds for a 20% down payment loan plus closing and
moving expenses.

4 Can a Broker originate Guaranteed loans? Yes, however only Approved lenders may underwrite & submit loans.

5 How long does it take to get an answer?

Our goal is a 2 to 5 day turnaround. Time will be longer in some offices due to the large
number of guarantee requests received.

6 What is the maximum fixed Interest Rate  and term?

Fannie Mae 90 day delivery rate plus 60 basis points rounded up to nearest quarter of
one percent Or no more than the Lender's published VA rate for first mortgage loans
with no discount points. The term is 30 years.

7 What is the maximum loan amount? 

The Loan amount is limited by the market value and repayment ability.

8 What is the maximum Loan to Value?

It can be up to 100% LTV plus the Agency guarantee fee.

9 What is the Guarantee Fee? 

The guarantee fee is 3.5 percent of the “Total” loan amount.

10 What are the qualifying ratios?

 PITI Ratio 29 percent, TD Ratio 41 percent.
Higher ratios may be approved with compensating factors.

11 Do we show deferred student loans in the debt ratio?

Deferred student loans should be included in the debt ratio calculations for Guaranteed
Loans regardless of the deferment period.

12 What is the minimum credit score?

Under certain criteria, credit score 640 and above no comment required.
For credit score 639 and below document circumstances were temporary in nature
beyond the applicants control and have been removed. In most cases, loans will not be
guaranteed for applicants who have a middle credit score of 580 & below.

13 What about location? The dwelling must be located in eligible rural area (See eligibility site)

14 What about refinancing?

Limited to existing USDA Rural Development guaranteed or direct loans.
15 Can loans include acreage?

Possibly. The acreage must not contain any income producing facilities


16 Can Manufactured Homes be financed? 

Yes, however they must be new and sold by an approved dealer contractor.

17 What about an in-ground swimming pool? 

Pools are okay
18 What are the required inspections?

Property must meet HUD Handbook 4905.1 & 4150.2 or similar standard. A FHA
roster appraiser can verify adequacy/working order of electrical, plumbing, heating,
water & waste disposal on existing dwellings.

19 Will USDA Rural Development issue a letter asking the Approved Lender to make
a loan? 

No. This is the Approved Lender‟s loan. They underwrite the loan and decide if it meets
their standards and Agency standards before submitting.

20 Is homebuyer education required? 

Homebuyer education is not required, however it is recommended.

21 Are seller concessions allowed? 

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

22 Who approves the Appraiser?

The appraiser must be licensed by the State to complete appraisals.

23 Can necessary repairs be included in loan?

Yes. An „as improved‟ appraisal will be needed to include cost of repairs.

24 Are alternate verifying income documents allowed?

Yes. Paycheck stubs, payroll earnings statements and W-2 tax forms for previous 2 tax
years, and telephone verification of employment.







A complete loan guarantee request received by Kentucky Rural Development Office  on or before September 30, 2013, will not be subject to the new rural area designations that will take place on October 1, 2013, barring any Congressional action that extends current eligibility areas.  

Applications received by close of business on September 30, 2013 and processed on/after October 1, 2013, due to state loan processing times, will be subject to the newly designated rural areas if the application is incomplete.  A complete loan guarantee request represents the following documents. 

Transaction Type:  Purchase and Standard Non-Streamlined Refinance
     Guaranteed Underwriting System (GUS) Accept Underwriting Recommendation

  •  
Form RD 1980-21, “Request for Single Family Housing Loan Guarantee.”

  •  
Evidence of qualified alien, as applicable.

  •  
FEMA Form 81-93, “Standard Flood Hazard Determination Form.”

  •  
Uniform Residential Appraisal Report (URAR) with Market Condition Addendum (MC 1004).



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Kentucky property eligibility map for USDA and rural development , property eligibility, maps, rhs, usda, rural development, rural housing, 


Kentucky USDA and Rural Housing Loan Information


Kentucky USDA and Rural Housing Loan Information

Kentucky USDA and Rural Housing Loan Information



 Frequently Asked Questions For Kentucky USDA Qualifying Criteria




1 What is the guarantee?


USDA Rural Development provides the full faith and assurance of the U.S

Government that any financial loss resulting from servicing the loan will be

reimbursed in full up to an amount not exceeding 90% of the original loan

amount. All loss up to an amount not exceeding 35% of the original loan is fully

reimbursed. Losses exceeding 35% are 85% reimbursed.


2 What is the advantage to the customer?

100 percent financing, fixed interest rate, no first time homeowner requirement, and no restrictions on size or design are a few advantages.


3 What are the eligibility requirements?


Have adequate and dependable income (up to 115 percent of adjusted area median

income), have acceptable credit, do not own a dwelling in the local commuting

area, US Citizen or permanent resident, have the ability to personally occupy the

home on a permanent basis, and do not have funds for a 20% down payment loan

plus closing and moving expenses.


4. What is the maximum loan amount?


The Loan amount is limited by the market value and repayment ability.


5.  What is the maximum Loan to Value?

It can be up to 100% LTV plus the Agency guarantee fee


9 What is the Guarantee Fee?

The upfront guarantee fee is 1 percent of the “Total” loan amount. The Lender also has an annual fee of .35 percent based on principal.


10 What are the qualifying ratios?


PITI Ratio 29 percent, TD Ratio 41 percent
Higher ratios may be approved with compensating factors through the Automated Underwriting System Called GUS.


11 Do we show deferred student loans in the debt ratio?


Deferred student loans must be included in the debt ratio calculations for

Guaranteed Loans regardless of the deferment period.


12 What is the minimum credit score?


Under certain criteria, middle credit score of 680 and above no comment required.

For middle credit score of 679 and below document circumstances were

temporary in nature beyond the applicants control and have been removed. In

most cases, loans will not be guaranteed for applicants who have a middle credit

the score of 581 & below. 






13 What about location?


The dwelling must be located in eligible rural area (See eligibility site)

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do


14 What about refinancing?
Limited to existing USDA Rural Development guaranteed or direct loans.

15 Can loans include acreage? 


Possibly. The acreage must not contain any income producing facilities and the value of acreage may not exceed 30% of the total property value.


17 What about an in-ground swimming pool?


In-ground pools permitted if the value is NOT financed; Appraiser must document

value.


18 What are the required inspections?


Property must meet HUD Handbook 4905.1 & 4150.2. A FHA roster appraiser

can verify adequacy/working order of electrical, plumbing, heating, water & waste

disposal on existing dwellings.


19 Will the USDA Rural Development issue a letter asking the Approved Lender to make a loan?



No. This is the Approved Lender’s loan. They underwrite the loan and decide if

it meets their standards and Agency standards before submitting them.


21 Are seller concessions allowed?


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


22 Who approves the Appraiser? The appraiser must be licensed by the State to complete appraisals.



24 Are alternate documents verifying income allowed?


Yes. Paycheck stubs, payroll earnings statements and W-2 tax forms for previous

2 tax years, and telephone verification of employment.



 

Kentucky USDA and Rural Housing Loan Information





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Kentucky USDA RHS Rural Housing Mortgage Loans for 2020






Kentucky USDA RHS Rural Housing Mortgage Loans for 2020
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 1% Commitment Fee




Commitment Fee can be financed into the loan




Example:






Purchase price – $100,000




Loan amount – $101,040




Commitment Fee – $1,000




Maximum financed loan amount = $101,040 ($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 101%




Maximum Mortgage Amount




None




Minimum Credit Score




Middle Credit Score – 581 for each applicant for GUS automated underwriting approval







Monthly Mortgage Insurance Premium (MIP) Requirements




.35 basis points USDA Loan require a monthly mortgage insurance premium. For example on a $100,000.00 it would be $ a month 29.16




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