Tuesday, December 31, 2013

Kentucky Rural Housing and USDA Guidelines for 2014

Kentucky Rural Housing and USDA Guidelines for 2014

What is a Kentucky USDA Loan?

A Kentucky USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down. USDA Loans offer 100% financing to Kentucky qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate.

Am I Eligible for a Kentucky  USDA Rural Housing Loan?

Kentucky USDA Loan Eligibility will be determined by 3 Factors
Credit : Most Kentucky USDA Rural Housing Credit guidelines call for a minimum 640 credit score with no bankruptcies or foreclosures, short sales in the last 3 years. All Kentucky Rural Housing Loans are ran thru the GUS -Guaranteed Underwriting System Automated Approval  software  for  the initial credit approvals.  Credit scores below 640 will be automatically referred and it is much harder to get approved for a loan when this happens.

USDA on paper says that they will allow these scores down to 620 with a manual underwriter, but there is much stricter credit guidelines and chances for denial before the loan closes.

USDA Loan Income Restrictions: You will need to be able to document your income on a USDA Loan. USDA will generally want to see a two year history of employment or consistent income. Exceptions on the two year requirement can be made for applicants such as students. On a USDA Loan Assets are not required for approval, but can help overcome any possible blemishes on credit. There are income limits based on the total household income by each county in Kentucky, with most households with family members of 5 or more allowing a gross adjusted household income of up to $98,500, and $74,750 for a family of four or less. This is called "compliance income"

The "qualifying income" is the actual income used to qualify based on the credit, income and assets of the loan applicant. Sometimes a spouse may have bad credit and thus cannot go on the loan application. The qualifying income of the spouse with the bad credit would not go on the loan application but would be counted on the total gross household income for compliance income purposes.
Location of your new homeIn order to qualify for a USDA Loan your home must be located in a designated USDA rural area. You can check the USDA eligibility of your county. Check below for maps for eligible Kentucky USDA Rural Housing Maps for 2014

The No-Money-Down Loan , 100 % Financing Mortgage option is available to Kentucky home buyers and through the (USDA), for the Kentucky Rural Devevlopment Housing Loan  these  loans allow:

Joel Lobb
Senior  Loan Officer

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

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

 Company ID #1364 | MB73346