Showing posts with label Rural Housing Guidlines. Show all posts
Showing posts with label Rural Housing Guidlines. Show all posts

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!

Kentucky USDA RHS Guarantee Fee Change

Kentucky USDA RHS Guarantee Fee Change




RHS Guarantee Fee Change
 
   
Beginning October 1st, All Kentucky RHS  and USDA Mortgage Guarantee fees will be changing as indicated in the following table:
 
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%
 
This is effective for all RHS loans which receive conditional commitments on or after October 1st, 2012 regardless of when the loan was submitted.
 
Several USDA/Rural Development offices have a significant backlog of files. You can contact your state and local USDA/Rural Development offices for further information and to check their current turn-around times. Please make sure to accurately disclose guarantee fees with this in mind as errors may cause a delay in approval.
 
 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 here by clicking this link and getting a free mortgage pre-approval for a USDA Loan in Kentucky !

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 USDA Loans vs Louisville Kentucky FHA Loans.



Q: Differences between Rural Development and FHA Loans?
An Kentucky FHA loan is a loan that is made by a bank but insured by the Federal Housing Administration (FHA). The FHA guarantees the bank who lends the money in case of loan default.
Kentucky FHA loans require 3.5% down payment and will allow for the seller to pay some closing costs thru a process called ‘seller concessions.’ Seller concessions are limited to 6% of the sale price. 

Kentucky FHA loans have a mortgage insurance premium of 1.75% of the loan balance financed into the loan. Additionally, FHA loans carry a monthly mortgage insurance premium of 1.35%  (in other words, you pay an additional $112.50 a month for ever $100,000 financed).
FHA loans have lending limits based on the county you live in, and generally require a 620-640 or greater credit score. No bankruptcies in last 2 years and no foreclosures in last 3 years.

Lastly, FHA loans can be done in any location without the restrictions of being in a rural area like USDA loans have.
A: What is a Rural Development Loan?
Like a FHA loan a Rural Development Loan (also called USDA Loan) is also insured by the US Government.  Rural development loans offer 100% and will allow all closing costs to be paid by the seller, or can be rolled into your loan. Kentucky Rural Development loans are truly NO MONEY DOWN Loans!
Rural Development Loans http://kentuckyusdaloan.com have a one-time ‘funding fee’ of 2.0% that is financed into the loan amount on a purchase loanon a Rural Development refinance loan   In addition to the 100% financing, Rural Development Loans has a low monthly mortgage insurance of only .50 bps per month or $41.66  a month on a $100,000 sales price loan . 
Rural Development loans can only be done in certain rural areas, and they have income limit thresholds set by which County you are looking to buy in.

In order to qualify for the credit portion of the USDA Rural Development Loan, they generally will want a 640 or higher credit score with no bankruptcies or foreclosures in last 3 years. 


The “Farm Bill” revised the eligible rural area definition for USDA housing programs by amending population limits used to determine eligibility for program benefits.  It also retained the requirement for eligible areas to be rural in character and have a serious lack of mortgage credit.  However, on August 21, 2014, the Secretary of Agriculture suspended any changes to an eligibility determination based solely on the “rural in character” clause through September 30, 2015

On October 1, 2014, the USDA Rural Housing Service will update maps used to determine property eligibility.  The updated maps will include all eligibility changes.  Changes that were originally slated to take effect due to the "rural in character" clause will not be implemented at this time.  In advance of the upcoming map changes, future eligibility maps will be posted to the Eligibility Website on or about September 22, 2014.  A notification will be sent once the new future eligibility maps have been posted.






Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346



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2012 Kentucky FHA loans vs Kentucky USDA Loans for Kentucky Home buyers.


2012 Kentucky FHA loans vs Kentucky USDA Loans for Kentucky Home buyers.



Criteria
Loan Type

FHA
USDA
  1. Down Payment
3.5%
0% – None
  1. PMI
1.25%
0.03%
  1. Funding Fee *
1.75
2.0
  1. Limits (loan)
Per County
None
  1. Limits (income)
None
YES -per county,etc
  1. Restricted location
None
YES
  1. Credit score
640
640
There are a few other points that put the Kentucky USDA loan  at an advantage over the KEntucky FHA mortgage program such as the appraisal value. USDA appraisal value is normally higher than the selling price. If the appraisal value is more than the purchase price, this becomes an additional advantage for borrowers as the USDA will permit you to roll in closing costs.
Essentially the only issues that could be considered as drawbacks of the USDA loan are the restriction of location and the USDA RD income limits. The location must be in a designated rural area with a total population of 20,000. This can be a setback for those who do not want to drive farther to get to work in the city. But buyers should check their location in detail, please click here for the USDA housing map. Many populated locations just outside of the big cities are USDA rural housing approved -  locations just outside of Louisville, Ky, Lexington Kentucky, and Northern Kentucky Counties..
Additionally, the USDA‘s income limit imposed on would-be borrowers is currently set at 115% of the median or average income of the area where your home is to be situated. That means for those who have a higher income than the average in town would have to opt for mortgage loans under theFHA or through a conventional lender if they so decide to live in a rural area.
Regarding the rates as well as the guidelines in qualifying potential borrowers, the FHA and USDA are just about equally matched and they are currently at historic low rates. However, the USDA, unlike the FHA, allows borrowers to finance the whole purchase price and include any closing expenses as well into the loan.
Lastly, all USDA guaranteed loans have a 30-year fixed rate term. This can be very advantageous mainly when the homeowner eventually starts earning more than the required 115% median, the rate is fixed and even after 10 years only, will practically be insignificant compared to other monthly expenses at this time.
The funding fee in both government backed programs are incorporated (rolled into)  into the overall loan.

Apply for FREE Below for your Kentucky FHA Mortgage loan or USDA Loan:


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!