Kentucky USDA Rural Housing Mortgage Lender

 Kentucky USDA Rural Housing Approval Guidelines for Tax payments, debt ratio, income, assets and appraisals How are delinquent federal income taxes without a payment plan handled?  An applicant with delinquent Federal tax debt is ineligible unless they have a repayment plan approved by the IRS and have made a minimum of three timely payments on the most recent IRS approved repayment plan.  Timely is defined as payments that coincide with the most recently approved IRS repayment agreement. If the borrower has an existing repayment plan, all plans and payments must be shown on the IRS repayment plan in order to satisfy Rural Development Guidelines.  The applicant may not prepay a lump sum at one time to equal three monthly payments to meet this requirement. The lender must retain evidence of the repayment agreement and payment history in their permanent file. The tax debt may be paid in full at closing as long as loan funds or seller concessions are not used to pay of...

The program requires a minimum of three years from the date of a bankruptcy, foreclosure, or short sale prior to the borrower being eligible for a USDA Loan. For a Chapter 7 bankruptcy, the borrower must allow three years from the discharge date prior to submitting a new loan request. For a Chapter 13 bankruptcy the waiting period is 12 months after the completion of the court ordered repayment plan. If the bankruptcy included a property, whether a primary residence or investment property, the earliest a new loan can be obtained is based on USDA Loan short sale and foreclosure guidelines. When the borrower experienced either a short sale, foreclosure, or surrenders the property through the bankruptcy process, there will be a three year waiting period between the date of property transfer from the borrower to a new entity, and the date the new loan application can be processed. The most conservative stance by a USDA Loan Underwriter for defining the date of the negative occurrence is th...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: How much income do I need qualify for Kentucky Hom... : DEBT-TO-INCOME RATIOS From a Kentucky Mortgage lender's perspective, your ability to purchase a home depends largely on the following factors: Front-End Ratio The front-end ratio is the percentage of your yearly gross income dedicated toward paying your mortgage each month. Your mortgage payment consists of four components: principal, interest, taxes and insurance (often collectively referred to as PITI) A good rule of thumb is that PITI should not exceed 31% of your gross income. If you make $100,000 a year, then your max house payment to include escrows for home insurance, mortgage insurance, property taxes would be $2583.00 Back-End Ratio The back-end ratio, also known as the debt-to-income ratio, calculates the percentage of your gross income required to cover your debts. Debts include your mortgage, credit-card payments, chil...

 CREDIT ALERT VERIFICATION REPORTING SYSTEM (CAIVRS) CAIVRS is a Federal government wide repository to file and report delinquent and/or defaulted claims on individuals that were paid on their behalf. CAIVRS may return the following results: • A: Approved by CAIVRS (no issues exist) • B: Multiple cases from one or more Federal agencies • C: Claim filed • D: Default on loan • F: Foreclosure of loan • J: Judgment filed An “A” response is the only acceptable result for an applicant to be eligible for a guaranteed loan. CAIVRS in GUS: • GUS will automatically retrieve the CAIVRS response for each applicant when the Borrower Information application page is saved. If the automatically retrieved CAIVRS response is not an “A” response, the lender must obtain evidence of an “A” CAIVRS response outside of GUS.  This documentation must be uploaded as part of a complete loan application submission of the GUS application to USDA.  The CAIVRS response cannot be overwritten or revised ...