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

USDA Rural Housing’s Streamline Refinance Pilot Program has great news for homeowners with a USDA home loan......

USDA Rural Housing’s Streamline Refinance Pilot Program has great news for homeowners with a USDA home loan......





(USDA Section 502 Guaranteed loans) allowing homeowners to include closing costs and other settlement charges into a lower rate USDA mortgage with streamlined guidelines making it easier to refinance to a lower interest rate and payment.  USDA mortgages offer buyers the ability to finance 100% of the purchase price when purchasing a primary residence but now USDA is making it much easier to refinance these USDA mortgages so homeowners can take advantage of today’s low fixed mortgage rates.
Effective June 22, 2012 Primelending began accepting the USDA Rural Housing Refinance Pilot Program and the financing of the principal balance of the existing USDA loan plus the accrued interest used to calculate the payoff, and any eligible closing costs.  The two year pilot refinancing program is available to homeowners with USDA mortgages in 19 eligible states including Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, and Tennessee.  But, if a borrower with a USDA loan in any of the other 31 states is looking to refinance, there is still a USDA streamline refinance that does not require an appraisal but it cannot finance the closing costs like the Pilot Refinance Program.
The USDA Pilot refinance program is available to help homeowners with a USDA mortgage refinance at a lower interest rate without an appraisal, inspection, or calculating debt to income ratios as long as the property is still in an eligible area and the household is under the USDA income limit for the county in which the property is located.   With the new USDA refinance guidelines, it provides a less restrictive form of refinancing to save money.
PrimeLending is one of the leading USDA lenders in the country and the Russell Smith team is one of the top producing USDA loan officers as well and both have extensive experience in USDA Rural Housing Mortgage Loans.
The USDA Rural Development Pilot refinance program guidelines include the following:
  • The interest rate on the new USDA loan must be a minimum or 1.00% lower than the existing USDA loan
  • Pilot eligible states include AL, AZ, CA, FL, GA, IL, IN, KY, MI, MS, NV, NJ, NM, NC, OH, OR, RI, SC, & TN.  All other states are ineligible
  • Rural Refinance Pilot loans must meet basic eligibility:  Property must be in a USDA eligible area and the household income must be under the USDA county income limit
  • New term of the refinance loan must be 30 years
  • Upfront USDA Guarantee fee is 2.00% of the loan amount which can be financed on top of the base loan amount
  • Annual fee of 0..40%.  This would be new for most USDA borrowers since this is fairly new for USDA guaranteed loans.  This fee is paid monthly in the payment. For example:  $100,000 loan would be $30 per month.  $100,000 x .40% / 12 = $30..00
  • New USDA loan refinance loan may include the principal balance of the existing USDA guaranteed loan plus accrued interest through the payoff date, and any eligible closing costs
  • No cash out is permitted
  • Reasonable and customary closing costs and other fees may be collected from the borrower by the originating company
  • Income verification for all adult household members is required for income eligibility determination only, not for determining repayment ability
  • Ratio waivers are not required as income is just used for compliance income calculation only for verifying the income is under the county USDA household income limit


To apply for the Kentucky  USDA Pilot Refinance Program, click here.







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

Here are the cities in Kentucky that will no longer be eligible for RHS or USDA Rural Development mortgage loans:


More Info on Kentucky RHS - Support Rural Definition Amendment for Kentucky  USDA Programs - Please read carefully and ACT NOW!!!

USDA Rural Housing Loans - No Down Payments, Lower Payments than FHA Loans. Income and location restrictions apply. Contact Ed Collins at Kentucky Federal Savings & Loan at 859-525-6655.


On July 31, 2012 Congress passed a 6-month Continuing Resolution (CR) to fund the government through March 31, 2013, avoiding a messy fight over the FY13 Appropriatios bills.  At this time, the Continuing Resolution (CR) is our best opportunity to enact a solution to USDA's "rural" definition issue before the October 1, 2012 deadline for RHS.
PLEASE CALL OR EMAIL YOUR REPRESENTATIVES TODAY AND EVERY DAY and ask them to sign on to Rep. Fortenberry's letter to Appropriations Chairman Hal Rogers, urging the Committee to address the "rural" definition issue in the Continuing Resolution (CR).
The CR is our best opportunity to address these issues before the October 1st deadline.  If the House does not enact a solution to the "rural" definition issue, USDA will move forward with the below changes on October 1st.  The Senate already has a provision in their appropriations bill.  Now, we need the House to act. When you call or email your Representative make sure they know that without this CR, the October 1st changes will serve a massive blow to affordable housing in rural communities.
Please, don't think that someone else will make the calls or send the emails.  It is up to YOU! Also contact all the Realtors and Builders that you know because it affects them too!  Ask them to call their Representatives as well. 

Here are the cities in Kentucky that will no longer be eligible for RHS mortgage loans:

Bardstown, city 

Burlington, city

Elizabethtown, city

Gerogetown, city

Independence, city

Nicholasville, city

Shelbyville, city

Shepherdsville, city





IMPPORTANT - READ CAREFULLY!
Representative Hal Rogers is the Chairman of the Agriculture Appropriations Committee.  The Farm Bill is currently in the House of Representatives Agriculture Appropriations Committee for review.  Hal Rogers is in favor of the changes we are requesting.  Even if he is not your Representative contact him anyway so that he can provide more fuel to the committee as to the importance of this bill - he's on our side. CLICK HERE TO CONTACT HAL ROGERS.


Click here if you would like tips on how to communicate with your legislato





Fill out my form!

Kentucky USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012





Kentucky USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012!

August 21, 2012

USDA Mortgage Purchase and Refinance Funding Update for Kentucky Homeowners and Buyers 

This announcement is to inform you of the current commitment authorities available for the Single Family Housing Guaranteed Loan Program (SFHGLP) loans.

Due to a change in Fiscal Year (FY) 2013 fee structure which goes into effect October 1, 2012, Lenders are urged to check with States to determine application processing time frames before underwriting applications.

 USDA Mortgage Refinance Funds:

FY (fiscal year) 2012 USDA Mortgage refinance funds have been exhausted.
We expect to run out of refinance commitment authority no later than Monday, August 20, 2012.  When USDA Mortgage refinance commitment authority is exhausted, refinance loan requests for which a conditional commitment (Form RD 1980-18) has not been issued will be returned to the lender and require underwriting under the fiscal year 2013 fee structure.  The FY 2013 fee structure will require a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.  At this time, the Agency will not issue conditional commitments “subject to” receipt of FY 2013 funding or commitment authority.


USDA Mortgage Purchase Funds:

Lenders are urged to be cognizant of the differing backlogs and processing time frames from state to state.  If it is determined unrealistic that the State will be able to review the USDA loan guarantee application and issue a conditional commitment before September 30, 2012, lenders are urged to underwrite the USDA Mortgage application at the FY 2013 fee structure.  The FY 2013 guarantee fee structure will require purchase and refinance loans to carry a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.

In addition, if the state where the property is located is experiencing longer processing time frames, lenders should advise the applicant accordingly when discussing interest rate locks and potential loan closing dates.



Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)
107 South Hurstbourne Parkway
Louisville, KY 40222




Fill out my form!

Kentucky USDA Rural Housing Update 




August 17, 2012

Purchase and Refinance Funding Update

This announcement is to inform you of the current commitment authorities available for the Single Family Housing Guaranteed Loan Program (SFHGLP) loans.  

Due to a change in Fiscal Year (FY) 2013 fee structure which goes into effect October 1, 2012, Lenders are urged to check with States to determine application processing timeframes before underwriting applications.

REFINANCE FUNDS:

FY 2012 refinance funds are nearly exhausted. 
Currently, the balance of available refinance commitment authority is under $15 million.  We are issuing refinance commitment authority at a pace of approximately $10 to $15 million per day.  We expect to run out of refinance commitment authority no later than Monday, August 20, 2012.  When refinance commitment authority is exhausted, refinance loan requests for which a conditional commitment (Form RD 1980-18) has not been issued will be returned to the lender and require underwriting under the FY 2013 fee structure.  The FY 2013 fee structure will require a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.  At this time, the Agency will not issue conditional commitments “subject to” receipt of FY 2013 funding or commitment authority.

PURCHASE FUNDS:

Lenders are urged to be cognizant of the differing backlogs and processing timeframes from state to state.  If it is determined unrealistic that the State will be able to review the loan guarantee application and issue a conditional commitment before September 30, 2012, lenders are urged to underwrite the application at the FY 2013 fee structure.  The FY 2013 guarantee fee structure will require purchase and refinance loans to carry a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent. 

In addition, if the state where the property is located is experiencing longer processing timeframes, lenders should advise the applicant accordingly when discussing interest rate locks and potential loan closing dates. 



The Kentucky USDA program has changed. Effective October 1, 2012 it will no longer be subsidized by the US Taxpayer.

Effective October 1, 2012, USDA mortgage insurance rates are:

For purchases, 2.00% upfront fee paid at closing, based on the loan size.
For refinances, 2.00% upfront fee paid at closing, based on the loan size.
For all loans, 0.40% annual fee, based on the remaining principal balance.

A $100,000 loan would require a $2,000 mortgage insurance payment at closing, and $33.33 of mortgage insurance paid monthly.




Changes to RHS Guarantee and Annual Fee
Effective on October 1, 2012, RHS will revise the Up-Front Guarantee Fee and Annual Fee structure as follows:

Up-Front Guarantee Fee
Through
Sept. 30, 2012
Effective
Oct. 1, 2012
Purchase Transactions (no change)
2%
2%
Refinance Transactions
1.5%
2%

Annual Fee
Through
Sept. 30, 2012
Effective
Oct. 1, 2012
Purchase Transactions
.30%
.40%
Refinance Transactions
.30%
.40%

Loan guarantee requests submitted to RHS by September 30, 2012, in which a conditional commitment has not been issued, will be subject to the new, October 1, fee structure.  Lenders are encouraged to plan for the changes because, as mentioned previously, some RHS offices are experiencing extreme backlogs in loan guarantee delivery.




With the Kentucky USDA Rural Housing Program, your home must be located in a rural area. This is based on the most recent US Census. Follow this link to check a home’s eligibility;

-The USDA has no down payment requirement. You can finance 100% with a USDA loan.


 the Kentucky USDA Rural Housing Program can be used by first-time buyers and repeat buyers.


USDA will let you finance your Upfront Mortgage Insurance payment into your loan size. For example, if you bought a home for $100,000 and borrowed the full $100,000 from your lender, your Upfront Mortgage Insurance would be $2,000. You could then raise your loan size to $102,000.




The USDA / Rural Housing Program offers 30-year fixed rate mortgages only. There is no 15-year fixed rate mortgage.



USDA loans allow gifts from family members and non-family members. You will need a gift letter to accompany your loan application.


There is no minimum score, but 640 is generally regarded to get an Automated Approval through  their online underwriting system named GUS 


If you are a W-2 employee, you are eligible for USDA financing immediately; you don’t need a job history. If you have less than 2 years in a job, however, you may not be able to use your bonus income for qualification purposes.

Self-employed persons can use the USDA Rural Housing Program. If you are self-employed and want to use USDA financing, as with FHA and conventional financing, you will be asked to provide 2 years of federal tax returns to verify your self-employment income.




Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*


Fill out my form!

Low and no money down home loans - wave3.com-Louisville News, Weather & Sports

Low and no money down home loans - wave3.com-Louisville News, Weather & Sports



LOUISVILLE, KY (WAVE)- Springtime is always a popular time to house hunt and potential buyers often don't need much when it comes to a down payment.   A recent survey by Lending Tree finds the average money down is just over 12% which means a lot of people are putting down far less.

Thanks to government loans and programs, low or even no-money down mortgages are not just possible, they're plentiful and many people are surprised to find they qualify.

Of course, VA is out if you're not a veteran or a veteran's widow, but two other government funded loan programs are viable options, turning paychecks into the property.

As 23 year old Lacey Lamon shows our WAVE TV camera around her new home, she giggles with pride, pointing out the 2 car garage, the landscaping and once inside, the stainless steel appliances.

"I've had a ton of people asking me, 'where did you get the money to put down a down payment?', and once I tell them I didn't have to they're just really surprised."

Lacey's loan officer at Citizens Union Bank in Shelbyville, Nathan Poole agrees that many are shocked to find out the types of mortgages available that don't require the traditional 20% down.

"There's a lot of good home buyers out there" said Poole, "that just don't have the traditional 20% down for a conventional loan."

He's helped countless people like Lacey own a home using government loans.  "It's just a matter of meeting guidelines.  The debt to income ratio" Poole said.
For both the popular FHA and the lesser known USDA Rural Housing Service (RHS) loans, the borrower must have a credit score of 640.
FHA loans require at least 3 1/2% down, and there's a loan limit just over $300,000.  For USDA's RHS loans, there's an income limit that's not much higher than the average income in the area of the home.  And the home must be in a qualifying area.  Jefferson County homes do not qualify for RHS loans, but homes in all of Shelby, Oldham and Spencer Counties and in pockets of Bullitt County do qualify

Poole crunched the numbers on both loan types for Lacey and "the RHS just seemed like the best fit" she said.

With no money down and the lowest monthly payment.  Poole says between the two option, RHS is often the way to go.

All low or no down payment loans come with a price called PMI, a Private Mortgage Insurance that the lender charges so that the buyer can get the loan without that 20% down.

The PMI is more costly up front on an RHS loan, but Poole says the monthly premium added in on the FHA loan is much higher and in the end will cost more.

"Couple that with the fact, you don't have to make a down payment and 99 out of 100 times the RHS deal is better than the FHA deal" Poole said.

Low or no money down mortgage options are a surprising welcome mat to lots of potential home buyers often giving people the key to home affordability.

Another low  money down option is a conventional loan with as little as 5-percent down, but if your credit score is below 740 you'll get penalized with a higher interest rate and you'll pay PMI with this too.

Some other guidelines apply with these loans, like a buyer can't own a home while getting a USDA RHS loan, but if you sell your home, then you may qualify for the loan.

If you're in the market, it may be worth the time to crunch the numbers if you qualify.



SFH Guaranteed Underwriting System Updates for Kentucky Rural Housing and USDA Loans in Kentucky

SFH Guaranteed Underwriting System Updates for Kentucky Rural Housing and USDA Loans in Kentucky
   


 





August 1, 2012

Advance Notice:  Changes to Guarantee and Annual Fee

Effective on October 1, 2012, the start of Fiscal Year (FY) 2013, All Kentucky Rural Development loans will revise the Up-Front Guarantee Fee and Annual Fee structure as follows:

Up-Front Guarantee Fee

FY 2012
Through
9/30/2012
FY 2013 Effective
10/01/ 2012
Purchase Transactions (no change)
2%
2%
Refinance Transactions
1.5%
2%

Annual Fee

FY 2012
Through
9/30/2012
FY 2013
Effective 10/01/2012
Purchase Transactions
.30%
.40%
Refinance Transactions
.30%
.40%

The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, “Conditional Commitment for Single Family Housing Loan Guarantee”) issued by Rural Development Loans In Kentucky  on or after October 1, 2012.  Loan guarantee requests submitted to Rural Development by September 30, 2012, in which a Conditional Commitment has not been issued, will be subject to the FY 2013 fee structure. 

Lenders are encouraged to plan for the changes noted and should keep in mind that some Kentucky  Rural Development offices are experiencing extreme backlogs in loan guarantee delivery.  There are no exceptions to the FY 2013 fee structure. Therefore, starting on October 1, 2012 all Conditional Commitments will be subject to the FY 2013 fee structure, regardless of the date the request was received by Rural Development.  

The FY 2013 fee structure is only applicable to Conditional Commitments issued on or after October 1, 2012, Conditional Commitments issued by Rural Development office in Kentucky prior to this date are not subject to the new fee structure.



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







http://kentuckyusdaloan.com


Fill out my form!

Kentucky Rural Development Loans

Kentucky Rural Development
Guaranteed Housing
Home Financing Options for Kentucky Home Buyers Lenders
Think Guaranteed First!























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! 



  • 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.
  • 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!
  • 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. 

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