Tuesday, November 18, 2014

Kentucky Rural Development Mortgage Changes for December 1st, 2014



Kentucky USDA Rural Development offices are not accepting new Single Family Housing Guaranteed loan applications from November 21, 2014, through December 1, 2014.
 
Any loans submitted to the Kentucky Rural USDA offices by end of business November 21 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


  1. 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.
  2. Refinances can have 0 x 30 mortgage lates in the last six months. Previously 0 x 30 in last 12 months.
  3. Streamlines will be submitted to GUS. Previously GUS did not support Streamline Refinances.
  4. Language has been added for minimum of three tradelines (non-traditional credit may be used).
  5.  USDA guidelines for Bankruptcy of 36 months.  Shorter periods may be allowed if documented extenuating circumstances.
  6. Gifts may be received from members of the household.
  7. Site size must be typical for the area. The 30% site value restriction has been removed.
  8. In-ground swimming pools are now allowed with no additional restrictions.
  9. 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.
  10. Additional guidance will be provided on when a borrower may be allowed to own another property.
  11. Repair escrows will be allowed for minor interior development. Previously escrows were only allowed for exterior development work.
  12. Kentucky USDA Guaranteed Rural Housing
    Updated per 7 CRF 3555 for all loans with conditional commitments issued on or afte rafter December 1, 2014. Refer to the updated Program Guidelines for complete changes.
  13. Tax return transcripts are required for all adult household members to fully verify total household income.


-- 

Joel Lobb
Senior  Loan Officer
(NMLS#57916)

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

http://www.mylouisvillekentuckymortgage.com/p/usdarural-housing-0-down.html