Kentucky USDA Rural Housing Mortgage Lender

Kentucky USDA Rural Development Loans Program Guidelines Loan Purpose of Kentucky Rural Housing Loans Purchase One-time Close Construction Loan (very few lenders do this) Rate-term refinance for existing USDA Loans Only. Cannot refinance a Conventional loan, FHA, VA, or other loans into an USDA loan.  Credit Profile for a Kentucky Rural Housing Buyer 581 minimum middle credit score for all borrowers on the loan – purchase No score allowed with alternative trade lines Most Kentucky USDA lenders will want a 620 or 640 score or higher. A 640 middle score is required for a USDA loan through GUS, the automated underwriting system used by rural development to determine the max lending limits for a loan.  No foreclosure, short sale, or Chapter 7 bankruptcy discharge within three years of contract ratification date on credit report not permitted Minimum of two tradelines on credit, with a positive pay history within the most recent 12-month period. Accounts can be...

A Change in Underwriting for USDA Mortgage Loans in Regards to Student Loans.  Effective immediately for all Kentucky USDA Rural Housing Mortgage Loans. If you are a Kentucky USDA Mortgage applicant who has student loan calculations will be changed to the following Fixed Payment Loans: A permanent amortized, fixed payment may be used when it can be documented that the payment is fixed, the interest rate is fixed, and the repayment term is fixed.  Non-Fixed Payment Loans (i.e. deferred, income based, graduated, adjustable, etc.): The payment should be calculated as the greater of 0.5% of the loan balance or the actual payment reflected on the credit report. No additional documentation is required. Student loans. Lenders must include the payment as follows: Fixed payment loans : A permanent amortized, fixed payment may be used in the debt ratio when the lender retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayme...