Thursday, May 24, 2018

Kentucky Rural Development Home Mortgage Loans Guidelines for 2018 Updated









Terms/Product

  Fixed: 30 Yr. only

Underwriting 

  All loans are run through GUS (Guaranteed Underwriting System). Must be
located in an eligible location http://eligibility.sc.egov.usda.gov/eligibility/
Accept/Eligible and

 Manual underwriting allowed on an exception basis. Technically a manual
underwrite is considered an exception.

 USDA files cannot have multiple exceptions when a file has to receive a
manual underwrite.

 All USDA files will need 2 months bank statements regardless if funds are
needed or not needed for closing.

Credit Score

  600 - Lower of 2 or Middle of 3 repositories. (580-599 exception only)
 640 and below credit scores require a manual underwrite. (GUS will not
approve 640 and below)

Down Payment

 No minimum down payment required- but asset verification is still required

Seller Assist


 Maximum 6% of sales price

DAP Assistance

 Borrowers who choose to make a down payment may use a Government or
Municipal Down Payment Assistance Program (DAP).

Subordinate Financing

  Not Permitted.

Reserves 

 N/A No Reserves

Mortgage/Rent History

 If Credit score is > 640 then follow GUS Findings. If Credit Score is < 640 need
verification of rent (cancelled checks or 3rd party Institution)

Occupancy 

 Owner Occupied Primary residence only.

Debt to Income Ratio

  Must maintain Gus Accept Findings – typically maximum 43% DTI, Credit score
less than 640 – DTI must not exceed 29/41

Bankruptcy

  Minimum 2 Years discharged if a result of extenuating circumstances. Minimum 3
Years discharged if a result of financial mismanagement. Multiple Bankruptcies
are not permitted.

Foreclosure

  Minimum 3 Years completed. Delinquencies since Foreclosure discharge will be
scrutinized and may result in an ineligible loan.

Property Types

  Single Family Attached and Detached, Condo, PUD

Condominium 

 Condominium must be currently approved by HUD (FHA).

Mortgage Insurance

  1.00% Up front guarantee Fee as of 10/1/15, .35% Annual Fee

Cash out 

 Not applicable. Program is available on Purchases/ Rate and Term only.


Appraisal

  Full Appraisal is required. Appraisals must be ordered via Mortgage Machine or
approved AMC. Appraisal must meet HUD standards

Escrows

  Escrow of Tax, Insurance and MIP are required on all loans.

Property Flips 

 Flip transactions are eligible

Borrower may own additional property however the other property must be
deemed inadequate (increased family size, family needs, and safety hazards) or
other property must be more than 50 miles away from the subject



Must be an Arm’s Length transaction. Must prove the loan is not a bail out if a Non
Arm’s length transaction


--



http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu






Text/call:      502-905-3708
fax:            502-327-9119
email:
          kentuckyloan@gmail.com






Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.