Tuesday, August 6, 2013

Kentucky USDA and Rural Housing Income Requirements for Rural Development Loans in KY


Kentucky USDA and Rural Housing Income Requirements for Rural Development Loans in KY


BORROWER COMPLIANCE INCOME

The borrower’s adjusted income may not exceed 115% of the U.S. median income. An income calculator is available on the Kentucky  Rural Development web site at http://eligibility.sc.egov.usda.gov. From the home page, click ‘Single Family Housing” under “Income Eligibility”. Please keep in mind that Compliance Income and Qualification Income are calculated separately. Eligible borrowers must meet both compliance and qualification requirements to qualify.

The following are included in annual income for compliance on an Kentucky Rural Housing and USDA  guaranteed loan:

Gross amount of wages, salaries, overtime pay, commissions, fees, tips, bonuses and other compensation for personal services of all adult members of the household.

Net income from the operation of a farm, business or profession, interest, dividends and other net income of any kind from real or personal property.

Payments from social security, annuities, insurance policies, pensions, unemployment, workers compensation, alimony and/or child support and other types of periodic receipts

 All regular pay, special pay and allowances of a member of the armed forces who is the borrower or spouse whether or not that family member lives in the unit.

 All income derived from any household member 18 years of age or older. If household member is unemployed, underwriting will require a letter of explanation. A copy of the last year’s tax return will be required to determine compliance eligibility. Any income of a non-purchasing spouse must be verified to make sure income limits are not exceeded.

Adjustments to reduce annual income include $480.00 for each minor child, full time student or a disabled member of the family. $400.00 may be deducted from annual income for each family member over 62 years of age. An additional deduction may be calculated for certain expenses when added together exceed 3% of gross annual income.

INCOME QUALIFICATION REQUIREMENTS FOR A KENTUCKY USDA AND RURAL DEVELOPMENT LOAN BELOW:

Applicants must have adequate and dependable income, typically with a history of 24 months Income to be verified with a written VOE and one month’s current paystubs, OR one month’s pay stubs and two years of W2’s and a verbal VOE.
Self-employment borrowers require two year history with 1040’s.

A copy of the last year’s tax return will be required to determine eligibility.

 Disability and Social Security benefits – 3 year continuance documented with award letter or 2 months bank statements, grossed up 115%. Current part time employment must have a history of no less than 12 months. Alimony and child support income must continue for 3 years and have no less than a 12 month history.



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Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell

kentuckyloan@gmail.com
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