Showing posts with label rhs loans kentucky. Show all posts
Showing posts with label rhs loans kentucky. Show all posts

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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October 2012 Kentucky USDA and Rural Housing Loans Changes for Property Eligibility Locations in Kentucky.

October 2012 Kentucky USDA and Rural Housing  Loans Changes for Property Eligibility Locations in Kentucky. 


October 1, 2012 over 900 communities across the USA will lose their eligibility for 100% USDA Rural Housing loans including cities in Kentucky that where once eligible. If you know of buyers looking in these communities they need to act now. They should probably be under contract by end of August to be safe. There is no indication this expiration will be delayed. See the cities below that will be no longer eligible come 10/1/2012 for a Rural Housing USDA Loan in Kentucky 


No Longer Eligible for Kentucky RHS USDA Loans come 10/1/2012 below:

 Bardstown,  KY, Nelson County  

 Burlington, KY,   Boone County 

  Elizabethtown, KY,   Hardin County 

 Georgetown, KY,  Scott County

  Independence, KY,   Kenton  County 

 Nicholasville , KY, Jessamine County

 Shelbyville, KY , Shelby County

 Shepherdsville. KY , Bullitt County 

 Bardstown KY1

Table 1. Metropolitan Kentucky USDA Eligible Areas Potentially Impacted by Population Change

KY Burlington 8.84 15,926 10,779
KY Elizabethtown 25.36 28,531 22,542
KY Georgetown 15.84 29,098 18,080
KY Independence 17.44 24,757 14,982
KY Nicholasville 13.01 28,015 19,680
KY Shelbyville 8.06 14,045 10,085
KY Shepherdsville 9.67 11,222 8,334

To see an eligible Kentucky Map for Kentucky USDA Mortgage Loans for Rural Housing Mortgages in Kentucky  Please clink the following link below:

http://kentuckyusdaloan.com/




Kentucky USDA Rural Development No Money Down USDA Loan Program

For Kentucky homebuyers the no money down USDA Loan Program offers affordablemortgage financing for moderate income households purchasing a house in a designated USDA Rural area as determined by the Rural Housing Service (RHS). Income and property location guidelines for the USDA Loan Program require that the:
Household must have a moderate income not to exceed USDA Program county limits based on a household size of one to four or five and more family members.
The house must be located in a designated RHS USDA Rural approved area. Homebuyers should not assume that the term “rural” means the USDA Home Loan program is only available in farming communities.Many areas approved by the RHS for the USDA Loan Program are residential areas, near major cities, with a complete absence of any local farms.
By purchasing a home located in a USDA Rural area, USDA Loans allow qualified homebuyers the ability to buy a house with:

No Money Down – 100% USDA Loan Financing – No Monthly Mortgage Insurance – Flexible Credit Approval – Secure 30 Year Fixed Rate Mortgage – Unlimited Seller Closing Cost Help Allowed.





The Kentucky Guaranteed Rural Housing (GRH) Loan Program is designed to assist households in obtaining adequate but modest, decent, safe and sanitary dwellings and related facilities for their own use in rural areas. Loans are limited to applicants with incomes that do not exceed state and local Rural Development (RD) median income limits and property that is designated as rural by Rural Development.
 
The benefits of the Kentucky Guaranteed Rural Housing (GRH) Loan Program include:

•No Down Payment Required. Borrowers can finance up to 100% of the appraised value of the home.
•No monthly mortgage insurance payments.   
•Competitive 30 year fixed interest rates. 
•Flexible credit guidelines. 
•No maximum purchase price limit. 
 
To verify eligibility for a GRH Loan, property eligibility and income eligibility must be obtained.  Access our website for the USDA property and income eligiblity links (USDA Links). In addition, you will find AFR GRH Loan Program Guidelines, a GRH - Guarantee Fee Calculator and GRH overview presentation by Rural Development.

Thank you for your continued interest .  Please let me know if I can assist you.









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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