Kentucky Guaranteed Loans vs. Kentucky Direct Loans by USDA

KY Interest Rate Decrease for Single Family Housing Direct Program













The following interest rates will be effective March 1, 2019:














For Program Information







Single Family Housing Direct Loans








Single Family Housing Repair Loans and Grants








Mutual Self Help Housing Technical Assistance Grants













Kentucky Guaranteed Loans vs. Kentucky Direct Loans by USDA







Everyone wants to own a home, but what if you don’t have enough cash to do so? Does that mean you’ll have to spend all your life in a rented apartment? Not any more, buying a home has become easier than ever. Kentucky USDA home loans support people from all income groups and help them buy safe and decent dwellings. Various loan programs are offered by USDA and you should know the basic characteristics that make them unique.







The basic types of loans offered by USDA are:

Kentucky Rural Housing USDA Guaranteed Home Loans

USDA Direct Home Loans (also known as Section 502 Loans)

Rural Repair and Rehabilitation Loan







The most common among these are the ‘Guaranteed loans’ and ‘Direct Loans’. Many people are unaware of the differences between the two loan programs, so mix up both of them. There are key differences between the two loan programs, which should be known clearly in order to get maximum benefits. We’ll help you understand the basic differences between the two.







Kentucky Guaranteed Loans vs. Kentucky Direct Loans by USDA

Income Limits

KY Guaranteed Loans: This is designed for people belonging to the moderate income groups. Ideally the income of the applicant should be 115% of the AMI (area median income).

KY Direct Loans: This is specially designed for those who have low income, ideally 50% to 80% of the AMI.

Source of Funding

Kentucky Guaranteed Loans: USDA approved 3rd party lenders offer funding for those applying for guaranteed home loans. The government secures these loans so that there are no risks involved for the lender.

Kentucky Direct Loans: Section 502 loans are directly approved by the Government and no 3rd party lenders are involved. This means if you want to get a direct loan, you have to visit to local USDA office.

Credit Requirements

Guaranteed Loans: USDA has credit standards of its own, but since the funding will be approved by lenders, you might have to qualify for the credit standards of the lender as well. Lender requirements are – a minimum credit score of 581 with no bankruptcy and foreclosures, debt to income ratios should be 29/41. The lender can ease these if you have an excellent credit history. All USDA Mortgage loans are ran through GUS, to determine the credit, income, assets risk of the mortgage loan approval.

Direct Loans: Though there are no strict credit guidelines, you have a decent credit score and should be able to prove that you have the ability to repay the loan. People applying for Direct loans from USDA should be unable to get finding from other sources.

Loan Terms

Guaranteed Loans: Loans are available at a fixed rate for 30 years. The interest rates are not set by the USDA; the lender would decide the interest rate depending upon various factors.

Direct Loans: You can take the loan for 33years or 38years. 33 years loan term is available for those whose income is above 60% of the AMI. For manufactured loans, you get a loan term of 30 years. The government sets the interest rates for Direct home loans, unlike guaranteed loans.

Benefits of the Loan programs

Guaranteed Loans: The main benefits of the guaranteed home loans are:

There is no maximum purchase limit

You get 100% financing

Various types of properties are covered under this loan plan

Closing costs and lender fees can be included into the loan itself

Concessions in form of gift funds, grants, etc are allowed

Direct Loans: The best benefit that this loan program offers is homeownership for people with low monthly income, which would otherwise remain a dream.







Now that you know the difference between the two, you are in a better position to know which one suits you better. With our guidance and expert assistance, you can find the USDA loan that meets your needs the best. So, get in touch with us today!

Kentucky USDA Rural Refinance Pilot Program for 2014

Kentucky USDA Rural Housing Refinance Pilot Program 

 The Kentucky USDA Rural Refinance Pilot Program was authorized for two years from its inception in February 2012. The two-year period expires February 28, 2014. We anticipate the Ky RHS Refinance Pilot  program will continue, however we have no information confirming the continuation at this time. We will pass along more information as we receive it.

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Joel Lobb
Senior  Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

800 Stone Creek Pkwy, Ste 7,

Louisville, KY 40223

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com 

Refinance of USDA and Rural Housing 502 Direct, Guaranteed Home Loans in Kentucky

Purchase & Rate/Term Refi Maximum loan amount cannot exceed 100% of the appraised value. Maximum loan amount including financed guaranteed fee cannot exceed 101% of the appraised value.

Streamline Refi Maximum loan amount cannot exceed the unpaid principal balance of the existing loan plus the guarantee fee. Accrued interest, closing costs, and fees cannot be financed. The original appraisal may be used to determine the appraised value for the streamline transaction.

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

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

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

Kentucky Rural Housing USDA Streamline Assist Refinance

Kentucky Rural Housing USDA Streamline Assist Refinance Attention Kentucky USDA Mortgage Holders. USDA Streamline Assist is a refinance of an existing USDA Guaranteed Loan. Check out the table below for details regarding this new loan program from Rural Development. Some of the benefits are: No Appraisal! No Income Documentation Minimum 12 monthly payments made on time  Reduce Mortgage Insurance with new USDA MI Guidelines No cash back Must reduce payment by $50 Must Occupy Home as primary residence and be living in home

Joel Lobb
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

Kentucky Rural Development Guidelines for Refinancing a USDA Mortgage Loan: Streamlined, Non-Streamlined, Streamline- Assist

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2015 Kentucky USDA Rural Housing Refinance Pilot Program Guidelines

Do you have a Kentucky USDA Rural Development loan that you would like to refinance to a lower rate?

WHO IS ELIGIBLE:

Kentucky Current Section 502 Direct and Guaranteed loan borrowers may be eligible to refinance their existing Kentucky USDA mortgage loans into new Guaranteed loans through the Rural Refinance Pilot program. There are 35 states that are currently eligible for the Refinance Pilot Program and Kentucky is one of them.

APPLICANT MUST: 

•Be a current Section 502 Direct or Guaranteed loan borrower
•Meet the applicable adjusted income eligibility limit Reside in an eligible rural area, or an area that was eligible at the time of original loan closing
•Have made timely mortgage payments for the previous 12 months at the time of loan application 

TERMS:

•The new interest rate fixed and a minimum of 100 basis points (1%) lower than the current interest rate
•The new loan term must be 30 years
•Borrowers may be added to the new loan. Original borrowers may not be removed unless they are deceased.
•The new loan amount may include the principal loan balance, accrued interest, eligible loan closing costs, pre-paids, lender fees, escrow account establishment, and the applicable upfront guarantee fee.
•Direct loan borrowers that owe subsidy recapture must pay the balance due or subordinate the balance.
•The applicable annual fee applies.
•No cash out is allowed.
•A new appraisal, credit report, HUD Handbook determinations and additional property inspections are not required. However a new appraisal will be required for Direct loan borrowers that received subsidy in order to calculate subsidy recapture. Many lenders will order a credit report in order to verify the mortgage payment history. Rural Development does not require lenders to consider any credit criteria other than the mortgage payment history. 

-- 

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/