Kentucky Rural Development Guidelines for Pools, credit scores, debt ratios.
1. Is the property in an eligible area? Check address at: http://eligibility.sc.egov.usda.gov
Click on ‘single family’ under the link “Property eligibility”. Type in address or go to map.
2. Is their household income within the Agency limits? See the chart. Use the fast easy
calculator at http://eligibility.sc.egov.usda.gov Click on ‘single family’ under ‘Income Eligibility’
3. Do they have reasonable credit? Your lender’s underwriter makes the credit decision. Our
streamlined processing does not require credit explanations if the FICO is 640 or higher (EXCEPT with recent Bankruptcy in last 3 years or a foreclosure in the last 3 years). Alternate credit is acceptable. 580 and below would be rare. A 670+ score is a stand-alone compensating factor. The lender’s underwriter makes the final decision on creditworthiness.
Do they have reasonable repayment ability? Ratios are 29/41% (31%/43% for homes built after
Jan 1, 2001) but can be waived when it makes sense.: .5% (.005) annual fee will be assessed. Rural Development is a direct guarantor. There is no mortgage insurance and the Guarantee remains at the maximum of 90% of original principal borrowed. Fee cannot be prepaid and is billed annually to the servicing lender. Rate and Term: 30 year fixed, very competitive conventional rate
Other eligibility criteria:
.• No co-signors residing outside of the household.
• In-ground swimming pools. The loan, not including RD fee, is limited to the appraised value WITHOUT the pool. The FHA appraiser must justify value ‘as is’ AND a value as if the property had no pool. The value of the pool must be established and justified
Senior Loan Officer
phone: (502) 905-3708