Here are the important points about Kentucky USDA Rural Housing Loans:
- USDA loan are only available in certain counties of Kentucky.
- There are two types of USDA loans available: Direct and Guaranteed.
- 100% financing. No down payment
- USDA will go down to 620-640 score range and uses and automated underwriting pre-approval system called GUS-Guarantee Underwriting System. The GUS findings will dictate your loan pre-approval.
- Income limits based on county and number of people in household.
- Must be 3 years removed from bankruptcy and foreclosure
- No purchase price limit
- Upfront funding fee of 1% of loan amount paid to RD at closing
- Annual mi fee of ..35% paid each month for life of loan.
- Takes on average 30-45 days to close.
- 30 year fixed rate is the only term available and rates are usually comparable to FHA and VA government mortgage insured rates.
- Do not have to be a first time home buyer and can currently own another home if USDA deems the current living situation not suitable.
- Appraisal has to meet FHA minimum standards
- You can buy a home with land on USDA Loans as long as the property does not have any agricultural characteristics or income producing capabilities.
- There is no set max acreage but the appraisal will dictate approval of property by USDA.
- You can only use USDA loans to purchase property or refinance an existing USDA loan
Joel Lobb (NMLS#57916)
Senior Loan Officer
Senior Loan Officer
American Mortgage Solutions, Inc.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.