Kentucky USDA Rural Housing Mortgage Lender

Kentucky Rural Housing Loans  has made changes to the program guidelines for guaranteed loans, which will include the changes described below. The 1980-D and all associated publications are replaced by the 7 CFR Part 3555. All effective Administrative Notices must reflect "3555". The new handbook is the HB-1-3555 and can be accessed by clicking the link  here . FLOOD ZONES: Existing properties located in a flood zone are now eligible as long as flood insurance is available through FEMA's NFIP program. New or proposed homes in a flood zone must still meet additional flood zone requirements. Flood coverage must cover the lesser of the total loan amount or maximum allowed by NFIP. Maximum deductible is $1000 or 1% of the face amount of the policy HAZARD INSURANCE: Maximum deductible is $1000 or 1% of the face amount of the policy BUILDINGS/LAND: The subject property cannot contain any land or buildings that will be used principally for income. M...

Short Sale and Kentucky USDA Rural Housing Mortgage Requirements for a Home Loan Short Sale Applicant must present documentation of their full release from the creditor involved. If the creditor is Rural Development, the applicant must contact the Central Servicing Center for evidence of full release. There is not a specified waiting time but the applicant must meet the normal credit, capacity and collateral requirements. The credit report must indicate a zero balance from the creditor. Chapter 13 A satisfactory performance history for one year of the pay-out period and MUST be discharged. The minimum of two (2) credit scores on RHS loans Minimum score is 640 – Loans without a score are not eligible.  The following are indication of unacceptable credit history and must be carefully investigated: More than one payment being more than 30 days late in the last 12 months  A foreclosure or Chapter 7 bankruptcy in the past 36 months (not allowed). ...