Tag: Rural Development
|Kentucky||Cincinnati (OH, KY, IN FMR)||$90,050||$118,850|
|All Other Areas||$82,700||$109,150|
Kentucky Rural Housing Loans for 2018
Eligibility for Kentucky USDA Loans
- Loan income restrictions Most household income limits are set between $78k for a family of four, and up to $103k for a family of five or more see map >>>>>http://www.rd.usda.gov/files/RD-GRHLimitMap.pdf
- Credit score You have three credit scores, they throw and the high and low score and take the middle score of each of the three main credit bureaus, experian, equifax, and transunion.Most lenders will want a 640 middle credit score due to the fact that GUS(Guaranteed Underwriting System) will not give you an automated approval upfront if the middle score is below the 640 threshold. You may get a refer eligible on the initial pre-approval but a lot of lenders will not honor a refer eligible USDA file.
- Property Ownership (Do you own other Property) In most cases, USDA will not allow you to use their program to purchase another home if you already have a home in your name. In some extreme cases, they will waive this if certain exceptions are met. You can call or email me for more details on this matter. The USDA loans are only available for single family primary residences. No rental homes or working farms are allowed on the USDA Home Loan Program
- Residential Location (USDA Eligibility: to checkk click here ) Is the property located in a Eligible area. See link above for eligibility boundaries for counties in Kentucky
- Debt to Income Ratios: If your credit score is above 640, GUS will typically limit your backend ratio to 45% of your total gross income. The front end ratio, or the housing ratio, usually is centered around 30% to 35% range, with compensating factors such as assets or money in bank to cover your new house payment, disposable income, high credit scores, and no rent payment shock. Rent payment shock is where your new house payment is much larger than your current rent payment. This only comes into play on lower credit scores.
- Assets I have noticed that with 3 or 4 months reserves you can typically get a loan approved with lower credit scores with payment shock on the new loan. Additionally, if you have access to 20% down payment in your checking or savings account, they will make you use your own money. If the money is in a 401k or other tax deferred savings accounts this will not factor in and you can use the USDA loan program.
- I can explain this more in detail if you want to call or email me.
Joel Lobb Senior Loan Officer
American Mortgage Solutions, Inc.10602 Timberwood Circle Suite 3Louisville, KY 40223phone: (502) 905-3708Fax: (502) 327-9119Company ID #1364 | MB73346EThis website is not an government agency, and does
not officially represent the HUD, VA, USDA or FHA or any other government agency.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. NMLS#57916 http://www.nmlsconsumeraccess.org/. 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.
Kentucky Guaranteed Housing
Think Guaranteed First!
|Do you have clients with no down payment? Do you have clients with some cash but they do not wish to exhaust all of it to buy a home? How many times have you pre-qualified an applicant only to realize that the mortgage insurance or higher interest rates keep them out of the price range needed to accommodate their family? The Rural Development guarantee may be able to help!
Rural Development assists thousands of clients annually to become homeowners. This year we want you as our partner!
- Loan up to appraised value plus the guarantee fee.
- No monthly mortgage insurance (MI).
- Maximum loan amount is the appraised value plus a one time guarantee fee.
- No cash contribution or cash reserves required from applicant.
- Unrestricted gifts.
- Non-traditional credit acceptable.
- Streamlined credit documentation available – based upon credit.
- No minimum credit score.
- Repayment ratios are 29/41. Ratio waivers are allowed with documented compensating factors.
- Not limited to first-time home buyers.
- Competitive market based fixed interest rates with 30 year term.
- Available secondary markets: wholesale lenders as well as Fannie Mae, Freddie Mac, and Ginnie Mae.
- Qualifies for Community Reinvestment Act (CRA)
- Agency approved lenders underwrite the loan.
- Any lender, or broker, may originate loans through an Agency approved lender.
- Agency guarantee commitments are issued within 1-2 business days of receipt of the complete package – based on volume of loan requests.
- Rural Development provides lender support for questions, training, and outreach assistance.
- A competitive fixed rate combined with no mortgage insurance provides long term savings for the customer.
- Home buyers are able to retain their savings since there is no down payment requirement and closing costs can be financed up to the appraised value.
- Lenders report an overwhelming preference for the Guaranteed Rural Housing loans for the great value it provides to their customers. Choose the best program for your customers!
- Occupy the property as your primary residence.
- Be able and willing to occupy the property.
- Be a U.S. citizen, a U.S. non-citizen national or a qualified alien.
- Demonstrate an ability and willingness to meet obligations and debts as they become due.
- Have a credit history that indicates a willingness to meet obligations as they become due.
- Have an adjusted household income that is within Rural Development guidelines based on the number of persons who will occupy the home.
- Purchase a residential property that is within a Rural Development eligible area.
- Determine if the property is within the Rural Development eligible area.
- Use the link “Single Family Housing” under “Property Eligibility”.
- Determine if your applicant’s adjusted household income is within the Agency limits,
- Use the link “Single Family Housing” under “Income Eligibility”
- What is adjusted household income?
- Determine income limits by State or particular county
- Loan application package checklist
- Forms list
- Form RD 1980-21, Request for SFH Conditional Commitment
- Useful web links
- Lenders have less risk with the Rural Development guaranteed loans than with conventional loans covered by private mortgage insurance.
Thank you for visiting our web site. We look forward to working with you as partners in providing affordable housing opportunities in rural areas. Let us know how we can further serve you.
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