Wednesday, September 16, 2015

2015 USDA Rural Housing Guarantee Fee and Annual MI for Kentucky USDA Rural Housing Development Loans

Kentucky USDA Guarantee Fee and Annual MI

All USDA loans current charge 2.75% for the Guarantee Fee on ALL loans regardless of purchase or refinance. The Annual MI or Monthly Factor is .50 basis points

For example on a $100,000 Kentucky USDA Property with no money down financing the following USDA Guarantee fees and annual mi would be as follows:

$100,000.00 loan amount x .02% = $2750 Guarantee Fee. The total loan amount would be $102,750.00 with the guarantee fee being financed into the loan over 30 years.

The annual monthly mortgage insurance premium would be calculated as follows:
$100,000 x .0050 = $500 a year or $41.66 a month. This annual mi fee to USDA is for life of loan now.

The Kentucky USDA Rural Development has a method of determining a household's income by using two formulas.
Two Step Formula:
1.) The burden of principal, interest, taxes, and insurance (PITI) must be 29% less than the gross monthly income.
2.) The total monthly debts must be 41% or less than the gross monthly income.
The USDA is not limited to first-time homebuyers. The loans were set up to assist eligible homebuyers despite the fact that they own a home before or not.

Joel Lobb
Senior  Loan Officer

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