Kentucky USDA Rural Housing Mortgage Lender

USDA’s Direct Home Loan Program USDA Direct Housing Loans are less common than USDA Loan Guarantee Program loans and are only available for low and very low income households to obtain home ownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. For these types of Rural Housing Loans, a borrower must contact the local USDA office directly. USDA Rural Development has funding available for very low- and low-income individuals and families seeking to purchase or repair a home in a rural area. USDA’s Direct Home Loan Program offers financing to qualified very-low and low-income applicants that are unable to qualify for traditional financing. No down payment is required, and the interest rate could be as low as one percent with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability. Gene...

  SFH Direct Loan and Grant Programs August 18, 2022 Interest Rate Increase for SFH Direct Programs   Programs Current Interest Rate Interest Rate Effective September 1, 2022 Rural Housing (RH) 502 Very-Low or Low 3.25% 3.50% Single Family Housing (SFH) Non-Program 3.75% 4.00% Rural Housing Site (RH-524), Non-Self-Help 3.25% 3.50%     Program Information Single Family Housing Direct Loans Single Family Housing Repair Loans and Grants Mutual Self Help Housing Technical Assistance Grants   Signup for SFH emails (Direct and GRH)   GovDelivery  

Who can apply for this program? A number of factors are considered when determining eligibility for Single Family Direct Home Loans. At a minimum, applicants must have an adjusted income that is at or below the applicable low-income limit for the area in which they wish to buy a house (an income limit map is available at this link: https://go.usa.gov/xzcfb). They must also demonstrate a willingness and ability to repay debt. Applicants must: • Be without decent, safe, and sanitary housing • Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to be met • Agree to occupy the property as their principal residence • Have the legal capacity to incur a loan obligation • Meet citizenship or eligible noncitizen requirements • Not be suspended or debarred from participation in federal programs Properties financed with direct loan funds must: • Be modest in size for the area • Not have market value in excess of the applicable area loan limit • ...

  SFH Direct Loan and Grant Programs Monday, September 27 USDA Updates Guidance for Direct Loan Borrowers Impacted by COVID-19 PURPOSE The purpose of this notice is to announce the removal of the September 30, 2021 deadline for COVID-19 impacted Direct Loan borrowers to request mortgage payment assistance.  Direct Loan Borrowers may request assistance until the end of the National Emergency is declared Mortgage (Payment) Forbearance Guidance: Borrowers who experience financial hardship due, directly or indirectly, to the COVID-19 emergency may request and be granted an initial forbearance until the end of the National Emergency is declared. The initial forbearance period may be up to 180 days and the borrower may request an extension of up to an additional 180 days. Borrowers who received an initial CARES Act forbearance may be granted up to two additional three-month payment forbearances.  The borrower must request each extension individually. Borrowers who received a CO...

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 Rural Development Announces Loan Relief Assistance for 2020 Coronavirus The U.S. Department of Agriculture’s Rural Development program on Wednesday announced measures, including loan relief, to help residents, businesses and communities affected by the COVID-19 outbreak. According to a release from the USDA, a 60-day moratorium on foreclosures and evictions was put into place March 19 in the Kentucky single-family housing Direct and Kentucky Guaranteed loan program. The moratorium applies to both the initiation of foreclosures and evictions and the completion of those in progress. Borrowers in the Kentucky USDA Guaranteed Loan program who are in default or facing imminent default due to a documented hardship can have payments reduced or suspended by their lender for a period not to exceed 12 months delinquency, the release stated. Once the hardship is resolved, the lender can modify the loan to cure the delinquency or make up the missed payments based on the...

Interest Rate Decrease for Kentucky Rural Housing  USDA Direct Programs March 19, 2020 Programs Current Interest Rate Interest Rate Effective  April 1, 2020 Rural Housing (RH) 502 Very-Low or Low               3.000%                               2.750% Single Family Housing (SFH) Non-program               3.500%     3.250% Rural Housing Site (RH-524), Non-Self-Help               3.000%     2.750%  

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...

For Program Information Single Family Housing Direct Loans Single Family Housing Repair Loans and Grants Mutual Self Help Housing Technical Assistance Grants --  Joel Lobb Senior  Loan Officer (NMLS#57916) American Mortgage Solutions, Inc. 10602 Timberwood Circle, Suite 3 Louisville, KY 40223  phone:  (502) 905-3708  Fax:      (502) 327-9119 kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.com/

The important differences between the Kentucky Section 502 guaranteed and Kentucky direct USDA and RHS loan programs are as follows: The Kentucky RHS or USDA  lender for Section 502 guaranteed loans is a private savings and loan institution, bank, or mortgage company which also handles all the loan servicing. The lender for the direct program is the Rural Housing Service; Rural Development handles the servicing. Income levels for Section 502 guaranteed borrowers are capped at 115 percent of the area median income. Income levels for the direct program must be no more than 80 percent of the AMI.  Payment assistance subsidy is not available through the guaranteed program . Payment assistance, which can reduce the interest paid on the mortgage to as low as 1 percent, is available for borrowers in the direct program and is based on the borrower’s income as a percent of AMI. Borrower protections differ between the programs.  Applicants for guaranteed lo...