More info below about Kentucky Rural Development Loans
Kentucky Rural Housing USDA Home Loan Frequently Asked Questions
I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 900 Kentucky families buy their first home and refinance their current mortgage for a lower rate; Kentucky First time buyers $0 down still available with down payment assistance with KHC. Free Mortgage applications same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS ID 1364
Criteria
|
Loan Type
| |
FHA
|
USDA
| |
|
3.5%
|
0% – None
|
| .85%
|
0.35%
|
|
1.75
|
1.0
|
|
Per County
|
None
|
|
None
|
YES -per county,etc
|
|
None
|
YES
|
| 580 down to 3.5% 500 score with 10% down payment
| no minimum score
|
With a lack of credit "depth" will not have to document non-traditional credit items such as utility or insurance payments | |
A negative past credit history may allow the Underwriter to not request letters of explanation for the cause of the past challenges | |
Collection accounts can remain open provided the Underwriter believes it unlikely that the account will eventually turn into a judgment |
Foreclosure or short sale within the last 3 years | |
Chapter 7 bankruptcy discharged within the past 3 years | |
Chapter 13 bankruptcy debt restricting plan completed within the last 12 months | |
Late mortgage payments within the last 12 months | |
Applicant or co-applicant delinquent on a federal debt; such as taxes, student loans, or previous agency loan (i.e. VA loan in which the eligibility was forfeited due to a foreclosure) |
Kentucky FHA Loan: | A Kentucky FHA Loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise been able to afford. FHA loans require 3.5% down payment but it can be gifted from relatives or family member or use a state housing agency down payment assistance program. Mi upfront is 1.75% and monthly mi is .85% to .80% depending on your term. |
Kentucky VA Loan: | A Kentucky VA Loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs. The VA loan allows veterans 100% financing without private mortgage insurance for monthly payments but it does have a funding fee upfront varying from 2.15% to 3.3% depending on your situation. Some Veterans are not required to pay if they have a VA disability. |
Kentucky USDA Rural Housing Loan: | Single Family Housing Guaranteed Loan program or Section 502 loans are primarily used to help households purchase homes in rural areas. The Kentucky USDA loan allows for 100% financing with upfront mi fee of 1% and monthly or annual mi of .35%. This is very low compared to FHA loans in Kentucky |
DTI Ratio: | Debt-to-Income Ratio indicates the percentage of income that goes toward paying all recurring debt payments, including mortgage, interest, mortgage insurance, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments. |
Down Payment: | The difference between the investment price and the loan amount. |
Closing Costs: | All the cost that a lender requires to obtain a loan. |
Fixed Rate: | A constant interest rate that does not change for the term of the loan. |
Adjustable rate: | An interest that can change during the term of the loan on an annual basis. |
Rate Buy Down: | Lowers your interest rate for a given duration on a fixed mortgage reducing your monthly mortgage payment. |
Credit Report: | A report that contains a person's credit history. |
Appraisal: | A report that gives the current market value of the home. |
Term: | The number of years to pay off a loan. |
Points: | 1% of the loan amount a lender may charge. |
Pre-Paids: | Expenses that the lender requires being paid upfront. (Homeowners Insurance, Escrow Accounts, Interest) |
Short Interest: | Interest collected from the date of closing to the end of the month. |
Mortgage Insurance: | Insurance required by the lender for loans with less than 20% down payment. |
Home Owners Insurance: | Insurance required by the lender to replace the homes value in the case of disaster. |