Kentucky Refinance Rural Development Pilot Program 2013
Kentucky USDA Pilot program is designed to assist existing Rural Development Section 502 borrowers to refinance their homes with greater speed and ease.
The program will be available to borrowers in Kentucky refinancing a current mortgage to more affordable terms very difficult
Must be current Rural Development Section 502 Guaranteed Loan borrowers Must meet Current income eligibility requirements Must have made timely mortgage payments for the 12 months period prior to the refinance
UNDERWRITING: NO CASH OUT IS PERMITTED TO THE BORROWER!! THERE IS NO TOLERANCE FOR CASH BACK!!
A Kentucky Rural Refinance Pilot loan may include the existing principal balance of the loan, accrued (non-delinquent) interest, eligible closing costs & pre-paids, plus the upfront guarantee fee. The applicable upfront refinance guarantee fee is 2%.
The new interest rate must be a fixed rate 100 basis points or 1% below the current interest rate.
The new term of the refinance loan must be 30 years An annual fee also applies. For FY 2012 the applicable annual fee is 0.40% The home must remain the borrower’s primary residence A new appraisal, new credit report, HUD Handbook determination and additional property inspections are not required. The original appraisal amount may be used from Guaranteed Loan System to process the loan. Ratio calculations are not required. Therefore debt ratio waiver requests will not be necessary.
Income verification for all adult household members. MUST MEET CURRENT INCOME ELIGIBILITY REQURIEMENTS.
Evidence of previous 12 months mortgage payment history is required. The lender must secure evidence to document the borrower(s) has paid the loan on time for the previous 12 months. The lender may utilize a Verification of Mortgage obtained from or provided directly by the loan servicer that lists the payment history for each of the previous 12 months. As an alternative, the lender may submit a “single trade line” credit report which reflects a satisfactory mortgage payment history of the past 12 months.