Kentucky USDA Rural Development offices are not accepting new Single Family Housing Guaranteed loan applications from, through .
Any loans submitted to the Kentucky Rural USDA offices by end of business must meet the current guidelines.
GUS (Guarantee Underwriting System) will still accept loans after 11/21 and you can continue to submit them to Plaza. However we will not be able to submit to USDA for conditional commitment until after 12/1.
Summary of Changes
- No changes to LTV (100% financing still available) Credit Score or DTI. Still looking for a 640 score on most loans to get a GUS Approval and max debt to income ratios of 29% and 41% respectively on refer eligible files.
- Refinances can have 0 x 30 mortgage lates in the last six months. Previously 0 x 30 in last 12 months.
- Streamlines will be submitted to GUS. Previously GUS did not support Streamline Refinances.
- Language has been added for minimum of three tradelines (non-traditional credit may be used).
- USDA guidelines for Bankruptcy of 36 months. Shorter periods may be allowed if documented extenuating circumstances.
- Gifts may be received from members of the household.
- Site size must be typical for the area. The 30% site value restriction has been removed.
- In-ground swimming pools are now allowed with no additional restrictions.
- Existing properties in a flood zone are eligible with no restrictions other than being located in area with NFIP available and flood insurance will be required. New construction in a flood zone continues to be ineligible.
- Additional guidance will be provided on when a borrower may be allowed to own another property.
- Repair escrows will be allowed for minor interior development. Previously escrows were only allowed for exterior development work.
- Kentucky USDA Guaranteed Rural Housing:
Updated per 7 CRF 3555 for all loans with conditional commitments issued on or afte r. Refer to the updated Program Guidelines for complete changes.
- Tax return transcripts are required for all adult household members to fully verify total household income.