Kentucky USDA Rural Housing Changes for Below


USDA Advance Copy Notice HB-1-3555 Chapter 11


USDA has announced that Chapter 11 of the HB-1-3555 will be updated and an advanced copy has been provided.  Changes will become effective after USDA issues a Special Procedure Notice.

  • Clarification was added that revolving accounts with no outstanding balance are not required to be closed.
  • USDA eliminated guidelines provided that a retained property that has been rented for 24 months or longer may be omitted from the DTI, and
  • Added guidance that the income received from rents may only be included in the repayment calculation if the property has been rented for 24 mo. or more.
  • Guidelines were added that monthly payment for borrowers in debt management plans must be included in the DTI.
  • The calculation guidelines for Non-Fixed Student Loan Payments were updated removing the requirement for the greater of calculation to be used and added guidance for when the payment amount is zero.
  • Additional guidance was added that compensating factors supporting Debt Ratio Waivers for manually underwritten loans must be documented.
  • Clarification was added that federal, state and local taxes don’t need to be included in the DTI unless there is a payment plan in place.

Refer to the Advance Copy Notice HB-1-3555 Chapter 11 and Chapter 11: Ratio Analysis

Kentucky Rural Housing Loan Program Update for 2021 Single Family Housing USDA Guaranteed Loan


100% Financing Zero Down2021 Kentucky USDA Income and Property Guidelines2021 Kentucky USDA Income Limits Increased2021 Kentucky USDA Mortgage Guides Updated502 Guaranteed LoanCurrent USDA and RHS GuidelinesDebt Ratio and Deferred Student Loansdebt ratios

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