Credit Score Requirements for Kentucky Mortgage USDA Zero Down Home Loans

Kentucky USDA Rural Development Housing Zero Down

Refinances can have 0 x 30 mortgage lates in the last six months. Previously 0 x 30 in last 12 month 

Language has been added for minimum of three tradelines (non-traditional credit may be used)

At least one applicant whose income and assets are used for qualification purposes must have 3 trade lines for 12 months (the trade lines can be open/closed/disputed/authorized use). GUS “Accept” recommendations that cannot meet these guidelines must be downgraded to “Refer”. In the case a loan has been downgraded , non-traditional credit is allowed

USDA guidelines for Bankruptcy of 36 months.  Shorter periods may be allowed if documented extenuating circumstances.

Credit reports cannot be more than 120 days old when the loan is closed. This rule now applies to new construction as well.
• If the collection balance is equal to $2,000 or greater, the underwriter must; require payment in full or verify payment arrangement with creditor and include monthly payment in ratios, or utilize 5% of each loan balance in debt ratios.
• If the collection balance is less than $2,000, the underwriter determines if payment in full is required, underwriter must document the decision. Applicants that demonstrate poor repayment of obligations should not be granted underwriting exceptions.
• Medical collections do not have to be paid.
• Federal judgments must be paid no exceptions allowed. Non-federal judgments may remain open IF there is evidence of repayment for 3 months prior to loan application. Prepayment for the 3 months is NOT allowed.
• When determining student loan payments, include the greater of 1% of the outstanding loan balance or the verified fixed payment reflected on the credit report. Monthly payments on credit report less than 1% of loan balance may be used when evidence from loan servicer verifies applicant is on a fixed repayment plan that is not subject to change.
• Long term debts with more than 10 months remaining must be included in the debt ratios. Rule of 6 months or less was removed.
• Mortgage Credit Certificates are allowed. Lender may consider the tax credit as a deduction from the monthly PITI payment.
• Payments for foster children and adults are not eligible for repayment income.

CHANGE TO ANNUAL USDA GUARANTEE FEE STRUCTURE and CHANGE IN ELIGIBILITY MAPS  As announced in RD AN No. 4757, the annual guarantee fee structure (paid monthly from the borrower's escrow account) for purchase and refinance loans will increase as follows (no change to the one-time upfront fee at this time):

Joel Lobb
Senior Loan Officer

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


Author: Louisville Kentucky Mortgage

I have helped over 589 Kentucky families buy or refinance their home over the last 18 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process. I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues. You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process. Give us a try or let us compare your options on your next mortgage transaction. Call me locally at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications. Email me at with your questions I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance. This website is not an government agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. NMLS# 57916 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 Equal Housing Lender

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