Kentucky USDA Rural Housing Single Family Housing Guaranteed Loan Program

Kentucky USDA Rural Housing Guaranteed Loan Program

Offers 0% Down for Kentucky Rural Home Buyers 

See guidelines below for credit, income, assets, property, eligibility in Kentucky 


• Maximum Loan Amount: 100% Appraised Value PLUS Upfront Guarantee Fee (101% financing)

• Loan Fees: 1) Upfront Guarantee Fee = 1.00%, 2) Technology Fee = $25; Annual Fee = 0.35% UPB

• Interest Rate: 30-year fixed rate term negotiated between the applicant and lender. No cap on rate.

• Seller/Interested Party Contributions: Allowable up to 6% of sales price. No limit on gift funds.

• Types: Purchase, Build, Refinance, Streamline Refinance

• Participating Lenders earn Community Reinvestment Act (CRA) credit

Applicant • Occupancy: Must agree to personally occupy home within 60 days of loan closing

• Citizenship: Must be a U.S. citizen, U.S. non-citizen national, or qualified alien

• Assets: Must be unable to obtain conventional financing with no PMI and a 30-year fixed rate term

• Suspension or Debarment: Lender will verify eligibility through the System for Award Management (sam.gov)

• NOT limited to First Time Home Buyers

Income • Annual Income: Income of ALL adult household members must be below the Moderate limit [115% of the county median household income (MHI)].

• Adjusted Annual Income: Eligible deductions—$480 per eligible dependent, $400 elderly household; eligible childcare, elderly medical, and disability expenses

• Repayment Income: Stable and dependable income of the applicants who will sign the note; Co-signers not permitted; Non-taxed repayment income may be grossed-up by 25%

• Repayment Ability (Ratios): 29% PITI and 41% TD (flexible with compensating factors)

◊ GUS “Accept” = no waiver required; GUS “Refer” or “Refer with Caution” = waiver required

Credit • Credit Score: No minimum credit score but lender or investor may require one***most USDA lenders in Kentucky will a 620 to 640 mid score. 

• GUS “Accept”: Credit score validation not required; Streamlined documentation submission

• GUS “Refer” or “Refer with Caution”: Credit score validation required (at least 1 applicant must have 2 tradelines with a 12-month history); Full documentation submission

• Non-Traditional Credit: Acceptable for applicants without a usable score; 2 trade references when 1 is a verification of rent or mortgage, 3 trade references if no verification of rent or mortgage

Property • Eligible Area: Must be located within a rural area

• Property Types: Single Family Existing, New Construction, Condos, PUDs, Modular, and some Manufactured

• Site Size: No acreage limit. Site size must be typical for the area and have no land or buildings principally utilized for income producing purposes

• Inspection: Existing homes must meet HUD Handbook 4000.1 requirements; Safe water test required for private wells; Well and/or septic inspection if required by appraiser, inspector, or lender

• Construction-to-Permanent: Short-term construction loan & long-term permanent mortgage in a single close loan. Loan Note Guarantee issued/realtor paid before construction begins.

Kentucky USDA Rural Housing  Single Family Housing Guaranteed Loan Program

Kentucky USDA Rural Housing  Single Family Housing Guaranteed Loan Program


Kentucky USDA Rural Housing  Single Family Housing Guaranteed Loan Program
Kentucky USDA Rural Housing  Single Family Housing Guaranteed Loan Program



Area and county loan limits

https://www.rd.usda.gov/files/RD-SFHAreaLoanLimitMap.pdf

Minimum property standards

https://www.hud.gov/program_offices/housing/ramh/mps/mhsmpsp

International building code adopted throughout most of the United States

http://www.iccsafe.org/codes-tech-support/codes/2015-i-codes/ibc/

Property rural status and eligibility

http://eligibility.sc.egov.usda.gov/



click on link for mortgage pre-approval


Joel Lobb (NMLS#57916)


Senior Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223


Company ID #1364 | MB73346

Text/call 502-905-3708


kentuckyloan@gmail.com



If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.


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#57916http://www.nmlsconsumeraccess.org/


NMLS Consumer Access for Joel Lobb 

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100 percent Financing Kentucky USDA Rural Development Loans

USDA Lender Kentucky


Kentucky Rural Housing Loans for 2021

USDA home loans in Kentucky are also known as the Rural Development Loan or RHS Loans. It is one of the best options for homebuyers that are currently looking for a home outside the urban areas of Lexington, Louisville, Bowling Green and Northern Kentucky that requires No Money Down. 
Another major advantage of this home loan is it’s fixed interest rate.  The fixed interest rate insulate buyers from interest rate fluctuations. You’ll have the same monthly loan repayment throughout the life of your loan.
100 percent Financing Kentucky USDA Rural Development Loans will allow you to roll up some of your closing cost into your monthly mortgage. While it is impossible to avoid closing costs of the home purchase, it is possible to have the seller pay for some of these cost and or arranged for them to be added to your total loan with minimal impact on your monthly payments.

Eligibility for Kentucky USDA Loans


When applying for eligibility for 100% USDA loans, There are six factors taken into account:

  • Credit score  You have three credit scores, they throw and the high and low score and take the middle score of each of the three main credit bureaus, Experian, Equifax, and Transunion. Most lenders will want a 620 middle credit score due to the fact that GUS (Guaranteed Underwriting System) will not give you an automated approval upfront if the middle score is below the 640 threshold. You may get a refer eligible on the initial pre-approval but a lot of lenders will not honor a refer eligible USDA file. On paper USDA says they will go down to a minimum credit score of 581 but most lenders will not touch them. 

  • Property Ownership (Do you own other Property) In most cases, USDA will not allow you to use their program to purchase another home if you already have a home in your name. In some extreme cases, they will waive this if certain exceptions are met. You can call or email me for more details on this matter. The USDA loans are only available for single family primary residences. No rental homes or working farms are allowed on the USDA Home Loan Program

  • Residential Location (USDA Eligibility:  to checkk click here ) Is the property located in a Eligible area. See link above for eligibility boundaries for counties in Kentucky

  • Debt to Income Ratios: If your credit score is above 640, GUS will typically limit your backend ratio to 45% of your total gross income. The front end ratio, or the housing ratio, usually is centered around 30% to 35% range, with compensating factors such as assets or money in bank to cover your new house payment, disposable income, high credit scores, and no rent payment shock. Rent payment shock is where your new house payment is much larger than your current rent payment. This only comes into play on lower credit scores.

  • Assets  I have noticed that with 3 or 4 months reserves you can typically get a loan approved with lower credit scores with payment shock on the new loan. Additionally, if you have access to 20% down payment in your checking or savings account, they will make you use your own money. If the money is in a 401k or other tax deferred savings accounts this will not factor in and you can use the USDA loan program.
  • I can explain this more in detail if you want to call or email me. 

Look-up tool to determine if a Kentucky property is eligible for No Money Down USDA financing-


https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do




Look-up tool to determine maximum household income limits for a Kentucky County




http://eligibility.sc.egov.usda.gov













Kentucky USDA Rural Housing Eligibility Map for 2021

Kentucky USDA Rural Housing Map

How to determine if property is in an eligible USDA area

Click on image of map below and this will take you to the USDA map. Then type in the address and it will determine if in an eligible area. 

Click on map below 👇👇


Kentucky USDA Rural Housing Eligibility Map








Joel Lobb (NMLS#57916) Senior  Loan Officer   American Mortgage Solutions, Inc. 10602 Timberwood Circle Suite 3 Louisville, KY 40223 Company ID #1364 | MB73346    Text/call 502-905-3708 kentuckyloan@gmail.com
Joel Lobb (NMLS#57916)
Senior  Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com
http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
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#57916http://www.nmlsconsumeraccess.org/
Kentucky USDA Eligibility Map | Kentucky Rural Housing USDA Home Loan Qualifications | USDA Rural Development
Call TOLL FREE to speak
with a USDA Loan Specialist
502-905-3708

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky USDA Rural Housing Streamline Refinance G...

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky USDA Rural Housing Streamline Refinance G...

How does a Kentucky  USDA streamline ​mortgage ​ refinance ​ work?   


You must have a current USDA mortgage loan to streamline refinance to a new USDA mortgage loan in Kentucky.

 ​Streamline means you don't have to do a lot of things usually required for a regular mortgage transaction, and is  is faster than with most types of refinances. You usually don't need to get an appraisal, and in some cases, you don't even need to show your credit score or debt-to-income ratio​, income documents, like paystubs, bank statements, tax returns etc. ​


​You have two options in regards to a streamline refinance: your  USDA refinance, you have two options: a USDA streamline refinance and USDA streamlined assist refinance.

They are both tools for refinancing from one USDA mortgage into a new one, and in most cases, neither requires an appraisal. But there are some key differences between the two.

👇

 USDA streamline refinanceUSDA streamlined assist refinance
Credit score required 
Debt-to-income ratio required 
Add a name to the mortgage
Remove a name from the mortgageOnly if the person has died
Tangible benefit required 
Minimum history of on-time payments180 days12 months

Kentucky USDA Rural Housing Streamline Refinance



You can do either type of refinance if you have a USDA direct loan (one straight from the USDA) or a USDA guaranteed loan (one you got from a private lender that's backed by the USDA).

You shouldn't need to get a new appraisal with either refinance, unless you have a direct loan and have collected a payment subsidy.

With a USDA streamline refinance, you need to show the lender your credit score and debt-to-income ratio to qualify. You can add or remove someone's name on the mortgage.

A USDA streamlined assist refinance does not require you to show your credit score or DTI ratio. You can add someone's name to the mortgage, but you can only remove a name if the person has died.

Your choice between the two will come down to your situation. For example, you might prefer a USDA streamline refinance if your credit score has improved since you got your initial mortgage, because a better score can land you a lower interest rate.

As these two types of refinances work a little differently, each one has its own rules about who is eligible.

How to qualify​ for a Kentucky ​USDA streamline refinance

 You should already have a USDA mortgage, either a direct or guaranteed loan. You can't use a USDA streamline refinance to refinance from another type of mortgage into a USDA loan​ like FHA, VA, Conventional. ​
Current on payments. You must have made all mortgage payments on time for at least the last 180 days.
Time restraints. A minimum 12 months should have passed since you closed on your original USDA mortgage.
Credit score and debt-to-income ratio. 

You must show your credit score and DTI ratio. For a USDA mortgage, you'll likely need a 640 score and DTI ratio of 41% or lower.No cash out. You can't use a USDA streamline refinance to receive cash. Unlike other types of mortgages, USDA loans don't have a cash-out refinance option.

USDA streamlined assist refinance

Have a USDA mortgage. You should already have a USDA direct or guaranteed loan. A USDA streamlined assist refinance won't refinance another type of mortgage into a USDA loan.
Current on payments. You need to have made all mortgage payments on time for at least the last 12 months.
Tangible financial benefit. The USDA requires a streamlined assist refinance to put you in a better financial position than your initial mortgage. Your principal, interest, taxes, and insurance payments must be at least $50 less per month.
No cash out. You can't refinance to receive cash. Unlike other types of mortgages, the USDA doesn't have a cash-out refinance option.
Should you streamline your refinance?
As with any big financial decision, there are tradeoffs to streamlining your refinance. Think about the following factors before making your decision:

Pros
Lower rate. The USDA requires either type of streamline refinance to lock in a lower rate than you paid on your original mortgage. Landing a better rate could save you thousands (or tens of thousands) over the years.
Save money. If you choose a USDA streamlined assist refinance, you must have a "tangible benefit," meaning your monthly payments should be at least $50 lower.
No appraisal. In most cases, you don't need an appraisal with either streamline option. This will save you both time and money.
Cons
Only one term option. You can only refinance into a 30-year fixed-rate mortgage. Let's say you have 15 years left on your initial mortgage, and you refinance into a 30-year term. You'll have to pay your mortgage for 15 extra years. Even if you get a lower rate, paying for longer could ultimately cost you more. You do have the option to pay off your mortgage early, though.
Closing costs. As with any type of mortgage, you have to pay closing costs all over again when you refinance. This includes a 1% guarantee fee that comes with all USDA mortgages.
No cash-out options. If you've gained equity in your home since buying it, you may want to tap into that equity by doing a cash-out refinance. The USDA doesn't offer any cash-out refinances, though.
Other options for refinancing your USDA mortgage
Maybe you want to refinance your USDA mortgage, but you don't know that streamlining is the best move. You have a few other options.

Non-streamlined USDA refinance
You can refinance from your current USDA mortgage into another without streamlining the process. This way, you'll go through an appraisal and show your credit score and debt-to-income ratio.

This could be a good option if your home has gained value since you bought it. A new appraisal would show that you have more equity in your home, which could land you a better rate.

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: About FICO® Scores

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