Tuesday, November 5, 2013

Whar are the options for a USDA Rural Housing refinance options for existing 502 Guarantee Loans in Kentucky?

There are two USDA Rural Housing refinance options for existing 502 Guarantee Loans in Kentucky




1. Non-streamlined USDA Kentucky RHS refinance.  This option requires an appraisal.  
Non-streamlined refinance transactions may include the principal and interest of the existing Kentucky USDA loan, closing costs, lender fees and the current upfront guarantee fee to the extent sufficient equity in the property exists as determined by an appraisal. The maximum loan amount is the appraised value of the subject property plus any amount of the upfront guarantee fee financed into the new loan.  The Guaranteed Underwriting System (GUS) may be utilized when requesting a non-streamlined refinance.

2. Streamlined refinance Kentucky USDA Loan .  An appraisal is not required;  however, the refinance loan amount may not exceed the original loan amount (i.e. the original purchase loan amount will establish the maximum loan amount of the refinance transaction).  The refinance loan amount may represent the outstanding principal balance (including current interest charges due along with a reasonable and customary fee for reconveyance) of the existing Kentucky USDA loan and any amount of the upfront guarantee fee to be financed into the loan.  Delinquent interest, closing costs or lender fees may not be financed into the new loan with this option.

 This option is not available for Section 502 Direct loans that have received any payment subsidy during the term of the original loan.  All other costs, documentation and underwriting requirements remain consistent with a purchase guarantee, unless otherwise noted in this AN.

 Lenders must manually underwrite this refinance option.  GUS may not be utilized when requesting a streamlined refinance.


http://www.mylouisvillekentuckymortgage.com/

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/