Effective October 1, 2023, USDA loans in Kentucky has announced updates regarding the following topics.
• Fiscal Year 2024 Conditional Commitment USDA announced a delay of approximately two weeks in allocation of funding; however, we will continue to close, fund, and purchase of Kentucky USDA loans, even those with conditional commitments issued as “subject to the availability of commitment authority.”
• Changes to eligibility of certain rural areas o USDA announced new ineligible area maps will be updated on the Guarantee Underwriting System (GUS) and USDA Income and Property Eligibility site on October 1, 2023.
Fiscal Year 2024 Conditional Commitment
During the period of lapse in funding:
• USDA will issue conditional commitments “subject to the availability of commitment authority” for purchase and refinance transactions, beginning October 1, 2023.
• We will close, fund, and purchase USDA loans when the conditional commitment is issued as “subject to the availability of commitment authority,” as this is primarily a procedural delay with USDA and not a funding issue with the USDA-RD program.
The upfront guarantee fee of 1.00% and the annual fee of 0.35% will remain unchanged for both Purchase and Refinance transactions for the fiscal year 2024.
Changes to Eligibility of Certain Rural Areas
GUS will be updated with the new area maps on October 1, 2023 (current maps will be moved to the Previous Eligibility Areas tab). GUS underwriting recommendations will display an “Ineligible” property determination for a property that is no longer located in an eligible rural area.
GUS provides an “Ineligible” property recommendation because the property is located in an area being changed from rural to non-rural,
Joel Lobb Mortgage Loan Officer
American Mortgage Solutions, Inc.10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/
NMLS ID# 57916, (www.nmlsconsumeraccess.org).
