Monday, November 3, 2014

Kentucky USDA Rural Housing Underwriting Guidelines Updated below




Here is the most common application problem we encounter on a Rural Development Guarantee USDA loan approval for Kentucky RHS loans.


The “Kentucky Rural Housing USDA Worksheet for Documenting Eligible Household and Repayment Income” is not submitted or contains errors.   For example, if the income on the worksheet doesn’t match GUS or RD Form 1980-21, the processing of your request could be delayed or the case returned to you.

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·       Pages 1 and 2 should show the Annual Income and page 3 should show the Monthly Repayment Income.

o   Repayment income represents the parties to the note who will repay the loan request.

o   Annual income is calculated one time to qualify the HOUSEHOLD for the loan program. 

·        Net family assets with a cumulative total of $5,000 or greater has to be considered in the annual income calculation. The greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate must be considered when calculating annual income and that income must be reported on the Worksheet for Documenting Eligible Household Income

·        All household members need to be listed on the worksheet and the breakdown of the income calculation is required.

o   Student loans currently in repayment must have documentation to verify the current payment due (e.g. letter from a loan servicer, online account verifications, or other official written documentation), but do not need to be submitted to RD unless it is a manual or full documents submission. The credit report alone is not acceptable documentation.

o   If GUS detects a borrower on the application is also associated with other submissions in GUS, you should research the matter and provide us with an explanation regarding the reason for multiple applications.

·        Loans that are underwritten with the assistance of GUS and receive a “Refer” or “Refer with Caution” become manually underwritten loans. 



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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