Tuesday, November 15, 2016

100 percent Financing Kentucky USDA Rural Development Loans

Kentucky Rural Housing Loans for 2016

USDA home loans in Kentucky are also known as the Rural Development Loan or RHS Loans. It is one of the best options for homebuyers that are currently looking for a home outside the urban areas of Lexington, Louisville, Bowling Green and Northern Kentucky that requires No Money Down. 
Another major advantage of this home loan is it’s fixed interest rate.  The fixed interest rate insulate buyers from interest rate fluctuations. You’ll have the same monthly loan repayment throughout the life of your loan.
100 percent Financing Kentucky USDA Rural Development Loans will allow you to roll up some of your closing cost into your monthly mortgage. While it is impossible to avoid closing costs of the home purchase, it is possible to have the seller pay for some of these cost and or arranged for them to be added to your total loan with minimal impact on your monthly payments.

Eligibility for Kentucky USDA Loans

When applying for eligibility for 100% USDA loans, There are six factors taken into account:
  • Loan income restrictions Most household income limits are set between $75k for a family of four, and up to $98k 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
(NMLS#57916)

 phone: (502) 905-3708
 Fax:     (502) 327-9119








What are the qualifications for a Kentucky Rural Housing USDA Mortgage Loan Approval?



When it comes to qualify for a Kentucky Rural Housing Development Loan backed by USDA,  these are the things to keep in mind so you can know what to expect once you make that step to get pre-approved :

The income limits for all household members that currently have an income limitations (maximum family income of a family 1-4 people is roughly $75,000 in Kentucky and 5 or more up to $98,000 roughly), and location (house must be located in an approved area).

In Kentucky  the main counties of Jefferson, Fayette are not eligible for USDA financing, while like smaller counties of Warren, Mccracken, Daviess, Hopkins, Boone, Kenton, Campbell  and Bullitt only part of the county is eligible for USDA financing.  Bottom line, the closer you get to a major metropolitan area, your chances decrease of qualifying due to the eligibility maps. 
To see if a home is eligible simply click this link enter in your property address and it will tell you whether or not that address is eligible for a Kentucky USDA guaranteed home loan.
Here’s the link to the maximum Kentucky  income limits for 
In addition to the income limits and property maps, these are the other things to consider:


  • Monthly mortgage insurance to begin fiscal 2016, which October 1, 2016.  The Guarantee fee will drop to 1% and a monthly MI premium of .35 will be added to all USDA loans.  It currently stands at 2.75% upfront mi premium with .50 monthly fee. This is a BIG SAVINGS for Kentucky USDA Rural Housing Home Buyers and Owners.
  • Education for first-time homebuyers is no longer required by USDA in Indiana.  Some investors overlays may still require it, however.
  • Can finance closing costs up to 100% of appraised value, not including Guarantee Fee. the Guarantee Fee can finance 102.750% of appraised value
  • seller contributions allowed
  •  gift funds, can come from any source other than an interested party.
  • Extra ways you can stay under the maximum income:  Can deduct child care costs dollar for dollar from household income for children 12 and under. You can deduct $480 per dependent under 18. You can also deduct $400 per household member over 62 off of the annual household income.
  • Bankruptcies and Foreclosure require 3 years seasoning; if the mortgage was in the bankruptcy, then you can go off the discharge date and not sale date of home. This is different from FHA and Conventional because they go off sale date of home.
  • A mid 640 score with two trade lines for 12 months will be required for a Automated GUS Approval. Some lenders will go below that on a refer eligible basis with compensating factors such as not payment shock, low debt to income ratios, and a lot of reserves with a 12 month verifiable rent history. Cancelled checks allowed but no cash payments.
  • No Pest Inspection will be required unless addressed in appraisal.
  • A Water test and Septic test sometimes  is  required on private wells and septics tanks  for a Kentucky USDA home loan.

Questions about qualifying? CAll or text, email me below your questions. 
I have been doing Kentucky USDA Rural Housing Loans since 1998. 


Joel Lobb
Senior  Loan Officer
(NMLS#57916)


 Text or call phone: (502) 905-3708






The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only.  The posted information does not guarantee approval, nor does it comprise full underwriting guidelines.  This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the views of my employer. Not all products or services mentioned on this site may fit all people

Kentucky USDA Rural Homes for Sale Currently

Your properties subscription for USDA Single Family Housing is kentuckyloan@gmail.com as of 11/15/2016
StateDays OldCounties
KY365ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD

AddressBed/BathPrice
500 White Oak Rd3/2$17,000.00 - GovtBid
Irvine, KY 40336Foreclosure Sale
7234 Nekirk Rd.3/1$25,460.00 - GovtBid
Ashland, KY 41102Foreclosure Sale
91 Roxanne St3/1$18,760.00 - GovtBid
Clearfield, KY 403139771Foreclosure Sale
275 Highway 227 N3/1$42,210.00 - GovtBid
New Liberty, KY 40355Foreclosure Sale
1721 Village Lane3/1$23,450.00 - GovtBid
Shelbyville, KY 40065Foreclosure Sale
177 Crawford Rd3/1$30,820.00 - GovtBid
Clearfield, KY 403139648Foreclosure Sale
415 Grassy Knoll Rd.2/2$28,140.00 - GovtBid
Flemingsburg, KY 41041Foreclosure Sale
1225 Tim Tam Way3/2$64,695.00 - GovtBid
Lawrenceburg, KY 40342Foreclosure Sale
171 State Route 14613/2$24,790.00 - GovtBid
Fulton, KY 42041Foreclosure Sale
204 N. Madison St.2/1$26,800.00 - GovtBid
Owenton, KY 40359Foreclosure Sale
125 Gloria Dr.3/1$36,850.00 - GovtBid
Shelbyville, KY 400658910Foreclosure Sale
2 Pebble Court3/1$30,820.00 - GovtBid
Frankfort, KY 40601Foreclosure Sale
381 Dunroven Dr.4/1.5$40,200.00 - GovtBid
Versailles, KY 40383Foreclosure Sale
377 Damron Br.3/1$26,130.00 - GovtBid
Grayson, KY 41143Foreclosure Sale

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Wednesday, November 2, 2016

What are the qualifications for a Kentucky Rural Housing USDA Mortgage Loan Approval?



When it comes to qualify for a Kentucky Rural Housing Development Loan backed by USDA,  these are the things to keep in mind so you can know what to expect once you make that step to get pre-approved :

The income limits for all household members that currently have an income limitations (maximum family income of a family 1-4 people is roughly $75,000 in Kentucky and 5 or more up to $98,000 roughly), and location (house must be located in an approved area).

In Kentucky  the main counties of Jefferson, Fayette are not eligible for USDA financing, while like smaller counties of Warren, Mccracken, Daviess, Hopkins, Boone, Kenton, Campbell  and Bullitt only part of the county is eligible for USDA financing.  Bottom line, the closer you get to a major metropolitan area, your chances decrease of qualifying due to the eligibility maps. 
To see if a home is eligible simply click this link enter in your property address and it will tell you whether or not that address is eligible for a Kentucky USDA guaranteed home loan.
Here’s the link to the maximum Kentucky  income limits for 
In addition to the income limits and property maps, these are the other things to consider:


  • Monthly mortgage insurance to begin fiscal 2016, which October 1, 2016.  The Guarantee fee will drop to 1% and a monthly MI premium of .35 will be added to all USDA loans.  It currently stands at 2.75% upfront mi premium with .50 monthly fee. This is a BIG SAVINGS for Kentucky USDA Rural Housing Home Buyers and Owners.
  • Education for first-time homebuyers is no longer required by USDA in Indiana.  Some investors overlays may still require it, however.
  • Can finance closing costs up to 100% of appraised value, not including Guarantee Fee. the Guarantee Fee can finance 102.750% of appraised value
  • seller contributions allowed
  •  gift funds, can come from any source other than an interested party.
  • Extra ways you can stay under the maximum income:  Can deduct child care costs dollar for dollar from household income for children 12 and under. You can deduct $480 per dependent under 18. You can also deduct $400 per household member over 62 off of the annual household income.
  • Bankruptcies and Foreclosure require 3 years seasoning; if the mortgage was in the bankruptcy, then you can go off the discharge date and not sale date of home. This is different from FHA and Conventional because they go off sale date of home.
  • A mid 640 score with two trade lines for 12 months will be required for a Automated GUS Approval. Some lenders will go below that on a refer eligible basis with compensating factors such as not payment shock, low debt to income ratios, and a lot of reserves with a 12 month verifiable rent history. Cancelled checks allowed but no cash payments.
  • No Pest Inspection will be required unless addressed in appraisal.
  • A Water test and Septic test sometimes  is  required on private wells and septics tanks  for a Kentucky USDA home loan.

Questions about qualifying? CAll or text, email me below your questions. 
I have been doing Kentucky USDA Rural Housing Loans since 1998. 


Joel Lobb
Senior  Loan Officer
(NMLS#57916)


 Text or call phone: (502) 905-3708






The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only.  The posted information does not guarantee approval, nor does it comprise full underwriting guidelines.  This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the views of my employer. Not all products or services mentioned on this site may fit all people

Winchester Kentucky USDA Rural Housing Map for Eligible and Ineligible Properties


 See below to see if you qualify for a Kentucky USDA Mortgage loan. Free application and credit report. 




In order to get you pre-approved for your max loan amount, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free!

 Mortgage Pre-Approval Checklist:
  1. One full month’s or 30 days worth of pay stubs
  2. Last 2 years W-2′s
  3. Last 2 years tax returns
    4.  Last two months bank statements for all accounts including 401 k or retirement account  if you have one

_______________________________________________


if you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.


The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only.  The posted information does not guarantee approval, nor does it comprise full underwriting guidelines.  This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the views of my employer. Not all products or services mentioned on this site may fit all people