Advertisements

USDA/Rural Housing Guidelines in Kentucky


Kentucky Mortgage USDA LoanRequirements

What are the Kentucky USDA Mortgage Loan Requirements?
To decide if you qualify for an USDA Mortgage Loan, we will look at:

  • Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.
  • Your credit history (this is important, but USDA’s credit standards are flexible). A FICO score of 620 or above is required for all loans
  • Your overall pattern rather than to individual problems you may have had.

To be eligible for an Kentucky USDA Mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at below Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

Can I get an USDA Mortgage Loan after bankruptcy?
Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentuck USDA Loan application

What are the USDA Down Payment Requirements? 
USDA Mortgages have no down payment requirement. Other loan programs don’t allow this.

What types of property are eligible? 
While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

What is the maximum amount that I can borrow? 
The maximum amount for an Kentucky USDA Mortgage Loans are determined by:

Maximum loan amount: The is no set maximum loan amount allowed for an USDA Mortgage. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Mortgage amount will be 100% of the appraised value of the home.

What kinds of loans does USDA offer?

 

Fixed rate loans – All Rural Housing and USDA loans are fixed-rate mortgages. In afixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

What is Considered a Rural Area by the USDA? 
Rural areas include open country and places with population of 10,000 or less and—under certain conditions—towns and cities. There is an automated rural area eligibility calculator at:http://eligibility.sc.egov.usda.gov.

Kentucky USDA Loans

What are USDA Home Loans?
USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison,

What Types of Loans does USDA offer in Kentucky? 
Currently, there are two kinds of USDA Homeo Loans available in Kentucky for single family households:

. USDA Guaranteed Rural Housing Loans
USDA Guaranteed Kentucky USDA Mortgage are the most common type of USDA loanin Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Kentucky?
To be eligible for A USDA Kentucky USDA Mortgage Loans | Rural Housing Ky Loans in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Kentucky USDA Mortgage Loans | Rural Housing Ky Loans approval . You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow? 
The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Kentucky USDA Mortgage Loans | Rural Housing Ky Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Kentucky USDA Mortgageamount is 102% of the appraised value of the home (100% plus the 2% USDA Kentucky USDA Mortgage RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?
USDA Kentucky USDA Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?
While USDA mortgage guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.
Additional offers from other lenders.

Kentucky USDA Loan Adjusted Maximum Income Limits by County\\\\\\\\\

Kentucky USDA Mortgage Loans | Rural Housing Ky Loans
Updated 05/01/2009

County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households
(Guaranteed Loans)
NON-METRO
ADAIR
$73,600
$97,150
NON-METRO
ALLEN
$73,600
$97,150
FRANKFORT, KY (MICRO)
ANDERSON
$73,600
$97,150
PADUCAH, KY-IL (MICRO)
BALLARD
$73,600
$97,150
GLASGOW, KY (MICRO)
BARREN
$73,600
$97,150
MOUNT STERLING, KY (MICRO)
BATH
$73,600
$97,150
MIDDLESBOROUGH, KY (MICRO)
BELL
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
BOONE
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
BOURBON
$73,600
$97,150
HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
BOYD
$73,600
$97,150
DANVILLE, KY (MICRO)
BOYLE
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
BRACKEN
$73,600
$97,150
NON-METRO
BREATHITT
$73,600
$97,150
NON-METRO
BRECKINRIDGE
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
BULLITT
$73,600
$97,150
NON-METRO
BUTLER
$73,600
$97,150
NON-METRO
CALDWELL
$73,600
$97,150
MURRAY, KY (MICRO)
CALLOWAY
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
CAMPBELL
$73,600
$97,150
NON-METRO
CARLISLE
$73,600
$97,150
NON-METRO
CARROLL
$73,600
$97,150
NON-METRO
CARTER
$73,600
$97,150
NON-METRO
CASEY
$73,600
$97,150
CLARKSVILLE, TN-KY (MSA)
CHRISTIAN
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
CLARK
$73,600
$97,150
NON-METRO
CLAY
$73,600
$97,150
NON-METRO
CLINTON
$73,600
$97,150
NON-METRO
CRITTENDEN
$73,600
$97,150
NON-METRO
CUMBERLAND
$73,600
$97,150
OWENSBORO, KY (MSA)
DAVIESS
$73,600
$97,150
BOWLING GREEN, KY (MSA)
EDMONSON
$73,600
$97,150
NON-METRO
ELLIOTT
$73,600
$97,150
NON-METRO
ESTILL
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
FAYETTE
$73,600
$97,150
NON-METRO
FLEMING
$73,600
$97,150
NON-METRO
FLOYD
$73,600
$97,150
FRANKFORT, KY (MICRO)
FRANKLIN
$73,600
$97,150
UNION CITY, TN-KY (MICRO)
FULTON
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
GALLATIN
$73,600
$97,150
NON-METRO
GARRARD
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
GRANT
$73,600
$97,150
MAYFIELD, KY (MICRO)
GRAVES
$73,600
$97,150
NON-METRO
GRAYSON
$73,600
$97,150
NON-METRO
GREEN
$73,600
$97,150
HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
GREENUP
$73,600
$97,150
OWENSBORO, KY (MSA)
HANCOCK
$73,600
$97,150
ELIZABETHTOWN, KY (MSA)
HARDIN
$73,600
$97,150
NON-METRO
HARLAN
$73,600
$97,150
NON-METRO
HARRISON
$73,600
$97,150
NON-METRO
HART
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
HENDERSON
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
HENRY
$73,600
$97,150
NON-METRO
HICKMAN
$73,600
$97,150
MADISONVILLE, KY (MICRO)
HOPKINS
$73,600
$97,150
NON-METRO
JACKSON
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
JEFFERSON
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
JESSAMINE
$73,600
$97,150
NON-METRO
JOHNSON
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
KENTON
$73,600
$97,150
NON-METRO
KNOTT
$73,600
$97,150
NON-METRO
KNOX
$73,600
$97,150
ELIZABETHTOWN, KY (MSA)
LARUE
$73,600
$97,150
LONDON, KY (MICRO)
LAUREL
$73,600
$97,150
NON-METRO
LAWRENCE
$73,600
$97,150
NON-METRO
LEE
$73,600
$97,150
NON-METRO
LESLIE
$73,600
$97,150
NON-METRO
LETCHER
$73,600
$97,150
MAYSVILLE, KY (MICRO)
LEWIS
$73,600
$97,150
DANVILLE, KY (MICRO)
LINCOLN
$73,600
$97,150
PADUCAH, KY-IL (MICRO)
LIVINGSTON
$73,600
$97,150
NON-METRO
LOGAN
$73,600
$97,150
NON-METRO
LYON
$73,600
$97,150
RICHMOND-BEREA, KY (MICRO)
MADISON
$73,600
$97,150
NON-METRO
MAGOFFIN
$73,600
$97,150
NON-METRO
MARION
$73,600
$97,150
NON-METRO
MARSHALL
$73,600
$97,150
NON-METRO
MARTIN
$73,600
$97,150
MAYSVILLE, KY (MICRO)
MASON
$73,600
$97,150
PADUCAH, KY-IL (MICRO)
MCCRACKEN
$73,600
$97,150
NON-METRO
MCCREARY
$73,600
$97,150
OWENSBORO, KY (MSA)
MCLEAN
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
MEADE
$73,600
$97,150
MOUNT STERLING, KY (MICRO)
MENIFEE
$73,600
$97,150
NON-METRO
MERCER
$73,600
$97,150
GLASGOW, KY (MICRO)
METCALFE
$73,600
$97,150
NON-METRO
MONROE
$73,600
$97,150
MOUNT STERLING, KY (MICRO)
MONTGOMERY
$73,600
$97,150
NON-METRO
MORGAN
$73,600
$97,150
CENTRAL CITY, KY (MICRO)
MUHLENBERG
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
NELSON
$73,600
$97,150
NON-METRO
NICHOLAS
$73,600
$97,150
NON-METRO
OHIO
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
OLDHAM
$73,600
$97,150
NON-METRO
OWEN
$73,600
$97,150
NON-METRO
OWSLEY
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
PENDLETON
$73,600
$97,150
NON-METRO
PERRY
$73,600
$97,150
NON-METRO
PIKE
$73,600
$97,150
NON-METRO
POWELL
$73,600
$97,150
SOMERSET, KY (MICRO)
PULASKI
$73,600
$97,150
NON-METRO
ROBERTSON
$73,600
$97,150
RICHMOND-BEREA, KY (MICRO)
ROCKCASTLE
$73,600
$97,150
NON-METRO
ROWAN
$73,600
$97,150
NON-METRO
RUSSELL
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
SCOTT
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
SHELBY
$73,600
$97,150
NON-METRO
SIMPSON
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
SPENCER
$73,600
$97,150
CAMPBELLSVILLE, KY (MICRO)
TAYLOR
$73,600
$97,150
NON-METRO
TODD
$73,600
$97,150
CLARKSVILLE, TN-KY (MSA)
TRIGG
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
TRIMBLE
$73,600
$97,150
NON-METRO
UNION
$73,600
$97,150
BOWLING GREEN, KY (MSA)
WARREN
$73,600
$97,150
NON-METRO
WASHINGTON
$73,600
$97,150
NON-METRO
WAYNE
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
WEBSTER
$73,600
$97,150
CORBIN, KY (MICRO)
WHITLEY
$73,600
$97,150
NON-METRO
WOLFE
$73,600
$97,150
LEXINGTON-FAYETTE, KY (MSA)
WOODFORD
$73,600
$97,150

Why choose a USDA Mortgage?

  • The loans  require no down payment.
  • There are no prepayment penalties for USDA Kentucky USDA Mortgage Rural Home Loans
  • A USDA Kentucky USDA Mortgage Rural Housing has no monthly mortgage insurance.
  • A USDA Kentucky USDA Mortgage Rural Housing is available all rural areas of the country, provided a market exists for the property and the home meets HUD’s minimum property standards.
  • A USDA Kentucky USDA Mortgage Rural Housing Loan can be used to purchase a new or existing one family home in rural areas.
  • USDA RD LOANS are offered at terms of 30 years with a fixed interest rate.

 USDA Loan FAQ’s

Kentucky USDA Mortgage Loans | Rural Housing Ky Loans

What is the Maximum LTV for a USDA Loan?
The maximum USDA rural loan  LTV can be up to 100% LTV plus the Agency guarantee fee.

Can Closing Costs be Financed into the Loan?
Yes, any difference between the contract price and the appraisal value can be used to finance normal closing costs for a Kentucky USDA Mortgage

What is a USDA Loan Guarantee?
USDA Rural Development Single Family Housing Program serves as a safety net for mortgage lenders. The USDA 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. Any loss amount exceeding the 35% is 85% reimbursed. This leaves the lender only 15% exposed on the loss amount above the 35% of original loan. In the majority of cases, the total loss does not exceed 35% of the original loan and the lenders are fully reimbursed. This guarantee provides lenders an expanded level of protection against losses. The quality of this guarantee allows lenders to easily sell the loans on the secondary market.

Kentucky USDA Mortgage Loans | Rural Housing Ky Loans

Louisville Kentucky USDA Loans               Lexington Kentucky USDA Loans               Fayette Kentucky USDA Loans

Owensboro Kentucky USDA Loans           Bowling Green Kentucky USDA Loans     Florence Kentucky USDA Loans

Paducah Kentucky USDA Loans Richmond Kentucky USDA Loans              Elizabethtown Kentucky USDA Loans

Related Articles

Kentucky Fannie Mae HomePath® Buyer Incentive


Kentucky Fannie Mae HomePath® Buyer Incentive

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011.

The HomePath property buyer must meet the following qualifications to be eligible:

  • Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
  • The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  • The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
  • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  • Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
  • If a buyer’s total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.
Note: Fannie Mae can give no assurance on the time required to close, but initial offers submitted after May 15, 2011 are particularly questionable for closing by the incentive deadline of June 30, 2011.

In a few states, a bonus promotion may be available to selling agents who close on an owner occupant property meeting the above terms & conditions.

Retail and public entities are eligible for the incentive; however pool and auction sales are not eligible.

The incentive may not be available for a property where Fannie Mae acquired the property in connection with financing under a reverse mortgage. Ask the listing agent for details

Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.

Buyers should consult their lenders for guidance on financing. Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.

Fannie Mae’s innovative First Look marketing period contributes to neighborhood stabilization by encouraging home ownership. During this period, owner occupants who occupy the home as their primary residence, some non profits, and public entities and their partners can submit offers and purchase properties without competition from investor offers.

The First Look period is typically the first 15 days a property is listed on HomePath.com, except Nevada where it is 30 days. Properties within the First Look period include a countdown clock on the property details page, which displays the number of days remaining for negotiation with eligible purchasers.

Investor offers submitted after the expiration of the First Look period will be considered along with all other offers.

Ask a Fannie Mae listing broker for more details

If you are concerned that the First Look marketing period is not being handled appropriately on a particular property, please contact the Fannie Mae Resource Center immediately at 1-800-732-6643.

Need help financing your new home?

Many state and local housing authorities offer financing programs that can assist you with the purchase of your new home. These public funds programs can provide down payment assistance, counseling, and more for those who qualify.

Currently many local housing authorities and non-profit groups are offering HUD’s Neighborhood Stabilization Program funds through special financing programs for homebuyers. For more information about the NSP programs available in your area, please click here.

Fannie Mae is committed to meeting the mortgage and housing needs of communities across the country, therefore buyers using public funds are very important to us. Fannie Mae supports buyers using public funds in many ways, including the following:

  • The earnest money requirement for individuals using public funds is only $500. Fannie Mae waives the earnest money requirement for public entities using public funds to purchase a Fannie Mae owned property
  • Once an offer using NSP funds is accepted, Buyers have the opportunity to renegotiate their offer after receiving an NSP required Uniform Residential Appraisal value for the property.
  • The standard closing period for a public funds offer is 45 days, which allows the time it may take to fulfill the NSP requirements for funding.
  • During the initial listing and marketing period of a Fannie Mae owned property, Fannie Mae will only consider offers from Buyers using public funds, and Owner Occupants. This period is known as the ‘First Look’ marketing period. The ‘First Look’ period shelters these buyers from competition from investor offers during this time.