Kentucky USDA Rural Housing Mortgage Lender

 WASHINGTON, July 23, 2021 – United States Department of Agriculture (USDA) Deputy Under Secretary for Rural Development Justin Maxson today announced that the Department is extending the COVID-19 Special Relief Measure for USDA’s Single-Family Housing Guaranteed Loan borrowers. The USDA COVID-19 Special Relief Measure provides new alternatives for borrowers to help them achieve  up to a 20 percent reduction in their monthly principal and interest payments. New options include an interest rate reduction, term extension and a mortgage recovery advance, which can help cover past due mortgage payments and related costs.   Borrowers will first be assessed for an interest rate reduction, and if additional relief is still needed, the borrowers will be considered for a combination rate reduction and term extension. In cases where a combination of rate reduction and term extension is not enough to achieve a 20 percent payment reduction, a third option combining the rate redu...

  The Single Family Housing Guaranteed Loan Program (SFHGLP) is pleased to announce revisions to technical HB-1-3555, Chapter 11. 11.2 B. The Total Debt Ratio: Revolving accounts: “with no outstanding balance” are not required to be closed. Mortgages: Rental Property - Eliminated language regarding omission of mortgage debt.   Guidance for entry of rental income in GUS is provided in the  GUS Lender User Guide  under 4.1.4.1.1, Retained Investment Properties. Added: Debt management plans: Include the monthly payment amount due from the counseling plan. Refer to Chapter 10 for guidance on credit exception and documentation requirements. Student Loans: Removed the phrase “the greater of” from Non-Fixed payment loans and added guidance regarding “when the payment is above zero” and “when the payment is zero”. 11.3 DEBT RATIO WAIVERS AND COMPENSATING FACTORS A. Purchase Transactions: Debt ratio waivers GUS Refer, Refer with Caution, and manually underwritten loans w...

Kentucky USDA Rural Development has funding available  The Direct Home Loan program offers financing to qualified very low- and low-income applicants who are unable to qualify for traditional financing. No down payment is required, and the interest rate could be as low as 1 percent with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability. The program is available in rural communities of generally 35,000 people or less. The maximum loan amount is $20,000 at a 1 percent interest rate, repayable for a 20-year term and can be used to improve or modernize homes and do essential repairs. Grants of up to $7,500 are available to homeowners 62 and older and must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing, or replacing a furnace. Time is limited to receive funds for the current fiscal year. Contact a USDA Rural Development Housing specialist to see if you qualify. USDA Rural Development loan...

  Kentucky USDA Mortgage Program The USDA Home Loan Program does not technically have an minimum employment history requirement but lenders are required to verify applicants' employment history for the prior two years and confirm that the applicant's income is stable Applicants are required to explain any employment gaps of at least one month Explainable employment gaps of six months or more are also permitted as long as the applicant can document the reason for the gap, has been back to work for at least six months and has a two year employment history prior to the work gap Self-employed borrowers are typically required to demonstrate a two year job history as documented by the applicant's tax returns A self-employed job history of between one and two years is permitted if the applicant was previously employed in a similar line of work for at least two years or one year of work plus one year of formal education or training The lender is required to confirm that the self-em...