- 4 Things Required for a KY Mortgage Loan Approval
- Credit Scores Required For A Kentucky Mortgage Loan Approval in 2021
- Down Payment Assistance Kentucky 2021 Kentucky Housing Corporation KHC
- Kentucky First-time Home Buyer Programs
- Kentucky FHA Mortgage Information
- Kentucky VA Mortgage Loan Information
- USDA Rural Housing Kentucky Loan Information
- Zero Down Kentucky Mortgages
- First-time Home-buyers in Kentucky
- Documents Needed Mortgage Approval in Kentucky
- Free Credit Score Booklet
- Do's & Dont's before closing:
- Closing Costs Kentucky Mortgage
- Lock Kentucky Mortgage Loan Rate
- Home Inspections Kentucky
- Accessibility Statement
Kentucky USDA Rural Housing Mortgage Lender: USDA has announced an upfront guarantee fee of 1% ...: USDA Fiscal Year 2021 Conditional Commitment Notice Fiscal Year 2021 will begin 10/01/2020. USDA has announced an upfront guarantee ...
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.
Credit Scores and the Kentucky USDA Rural Development Loan Program
The Kentucky USDA Rural Development Loan Program is by far the most credit score friendly loan program currently available. While USDA is willing to work with scores lower than 640 most lenders won't. Thus, pragmatically the minimum credit score required by USDA is 581.
For Kentucky homebuyers with a minimum credit score of 640 lenders may streamline the credit approval process normally required as part of the underwriting process. This means that a borrower:
|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|
However, USDA is not willing to overlook certain overtly negative credit items even when the credit scores are over 640. For instance borrowers with any of the following adverse past credit should not expect to obtain credit approval using the USDA loan program:
|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)|
USDA may be willing to give a borrower an exception to a past bankruptcy or foreclosure prior to the three year period provided the borrower can document the cause of the past negative credit experience as being related to an illness or job loss and unlikely to reoccur.
Once the credit score exceeds 640, USDA allows this score to be considered as justification for allowing the borrowers debt-to-income-ratio to exceed the target ratios of 29% for the housing costs and 41% for the total debt ratio. Frequently USDA will approve loans where the housing ratios are in the high 30% range and total debt ratios are in the high 40% range.
Bottom line the Kentucky USDA Rural Development Loan Program is more flexible in approving a perspective borrower than any other loan program. But like any loan program today, the Loan Officer shouldn't assume that this level of credit flexibility will result in an automatic positive underwriting decision if the Underwriter doesn't feel strongly that the borrowers chance of success at homeownership is strong.
Looking for 100% Financing, No Money Down Home Loan in KY?
Kentucky Rural Housing Development Loans offer:
Effective 10/1/2016 the Up Front Guarantee Fee is reduced to 1.0%*
No down payment required
Up to 6% Seller Concessions
No minimum credit score but most lenders will want a 620 or higher, or 640 to be safe
GUS Accept Eligible (lenders run this for you)
No Bankruptcies or foreclosure in last 3 years
Max household income limits vary
Home must be in an eligible USDA Area. See links below for income and property
For list of eligible properties: Kentucky USDA Property Eligibility Map?
For income eligibility limits: Kentucky RHS USDA Income Eligibility?
Kentucky Rural Housing and USDA Property Eligibility County List Map for Eligible Properties in 2014
Kentucky USDA Rural Housing Property Eligibility County List Map for Eligible Properties in 2014
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The USDA Rural Development Loan program is one of the last true No Money Down Loanoptions on the market. Backed by the United States Department of Agriculture (USDA), these safe and secure loans offer:
- 100% Financing!
- Flexible Credit Guideline
- Fixed Interest Rates
- No Maximum Loan Amount
- Eligibility: New + Existing Homes
In short, affordability - This is what USDA Loans through the experts at the USDA Loan Agency have to offer.
The program you've been waiting for! USDA has rolled out their Rural Refinance Pilot for eligible borrowers to refinance their current USDA loan to a lower rate. This program is now being offered in 34 states.
These government programs are more liberal in terms of qualifying ratios, credit standards and offer higher loan to value limits than Conventional loans. Someone who lacks traditional credit can still obtain FHA or VA financing.
- Use of gifts for down payment and/or closing costs
- Loans may be assumable
- Possible leniency in credit score and debt ratio
- No prepayment penalty
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!!!
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:
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
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