Kentucky USDA Rural Housing Mortgage Lender

USDA Fiscal Year 2021 Conditional Commitment Notice Fiscal Year 2021 will begin 10/01/2020.    USDA has announced an upfront guarantee fee of 1% accompanied by an annual fee of 0.35% , which remains the same, for both purchase and refinance transactions in FY 2021 (no fee change from FY2020).  During the beginning of each fiscal year, funding for the Single Family Housing Guaranteed Loan Program (SFHGLP) may not be available for a short period of time (historically about two weeks).  Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions”.   As we have in the past, FWL will continue closing and funding USDA loans if there is a lapse in funding during the fiscal changeover. Conditional Commitments will be accepted from RD with "subject to commitment authority" language in them, which means USDA loans continue closing and funding. (Business as usual.) Refer to Fi...

Kentucky Rural Development Guidelines for Pools, credit scores, debt ratios.  1. Is the property in an eligible area? Check address at: http://eligibility.sc.egov.usda.gov Click on ‘single family’ under the link “Property eligibility”. Type in address or go to map. 2. Is their household income within the Agency limits? See the chart. Use the fast easy calculator at http://eligibility.sc.egov.usda.gov Click on ‘single family’ under ‘Income Eligibility’ 3. Do they have reasonable credit? Your lender’s underwriter makes the credit decision. Our streamlined processing does not require credit explanations if the FICO is 640 or higher (EXCEPT with recent  Bankruptcy in last 3 years or a foreclosure in the last 3 years). Alternate credit is acceptable. 580 and below would be rare. A 670+ score is a stand-alone  compensating factor. The lender’s underwriter makes the final decision on creditworthiness. Do they have reasonable repayment ability? Ratios ...

Money is available for Kentucky USDA Rural Development’s Single Family Housing Guaranteed Loan Program 2017-2016  Fiscal Year 2017 Funds Now Available Fiscal Year (FY) 2017 funding for Rural Development’s Single Family Housing Guaranteed Loan Program is now available.  The funding is authorized by the Continuing Appropriations and Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2017, and Zika Response and Preparedness Act ( P.L. 114-223, H.R. 5325 ). Requests that received Form RD 3555-18E, “Conditional Commitment for Single Family Housing Loan Guarantee” (aka Conditional Commitment), contingent upon the availability of an appropriation, will be obligated in the Agency’s financial system over the next 2-3 business days.  An updated Conditional Commitment will be electronically generated by the Agency to remove the “contingent upon” language.  Lender receipt of the updated Conditional Commitment wi...

Fiscal Year 2017 Conditional Commitment Notice With the start of fiscal year 2017 (FY17) just around the corner, please take a few minutes for a timely review of the Single Family Housing Guaranteed Loan Program (SFHGLP) conditional commitment process. We hope you find this information helpful.  Issuance of Conditional Commitments:  At the beginning of each fiscal year, funding for the SFHGLP is not available for a short period of time – approximately two weeks.  This will not change in FY 2017, which starts  October 1, 2016 .   During the temporary lapse of funding,   Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions .  The application processing workflow is as follows: Rural Development will continue to accept complete SFHGLP applications for purchase and refinance loan transactions from lenders; Rural Developmen...

On October 1st, the USDA is making drastic cuts to fees The USDA mortgage requires two types of fees: an upfront guarantee fee and a monthly fee. They are both being reduced, allowing more buyers to qualify. Starting on October 1, 2016, the upfront fee will be reduced. Current upfront fee: 2.75% New upfront fee: 1.00% and the monthly fee will also drop. Current annual fee: 0.50% New annual fee: 0.35% The term “guarantee” simply refers to USDA’s loan backing that allows lenders to issue loans according to its guidelines. The current upfront guarantee fee stands at 2.75 percent of the loan amount and is seeing a drastic cut to 1.00 percent , a nd the "annual fee" is currently 0.50 percent also dropping significantly to 0.35% , paid in twelve equal installments and included in each mortgage payment. The changes will be in effect until September 30, 2017. Typically, USDA re-examines financials of previous fee changes then raises, holds, or reduces fees acc...

Kentucky Rural Housing USDA Rural Development Guarantee Upfront and Annual Fees are going down October 2016 for all Kentucky Rural Home loans! On October 1, 2016, the first day of Fiscal Year 2017 (FY17), both the upfront guarantee fee and annual fee (collectively the “fee schedule”) for purchase and refinance loans will decrease. We are reducing the upfront guarantee fee from 2.75% to 1%, and the annual fee from .5% to .35%. In real money terms, this is $3,500 Upfront & $58.33 per month on a $200,000 Home Purchase. The Guaranteed Underwriting System (GUS) will be updated on August 31, 2016, to allow lenders to select and underwrite using either the FY16 or FY17 fee schedule. The determination will be based on the current processing timeframes in each state. Debt Ratios–29/41% on manual underwrites – max to 45% Debt to Income ratios with GUS Approve/Eligible Finding. ZERO down payment – 100% LTV ok Income Eligibility Limits do apply. Usually to $75k for a famil...

  Kentucky USDA and Rural Housing Credit Scores Guidelines Kentucky USDA No Score Loan Guides DTI: 29/41 Maximum no exceptions. Rent: 12 months 0 x 30 on Rent. 12 months cancelled checks or VOR if institution. Or a four Non Traditional Trade Lines may be substituted with underwriting approval. Credit: No delinquent or derogatory past or current credit. Regardless of size or type. No open collections or judgments (exceptions granted upon review only and only based on overall profile of the loan). Job Time: 2 years of consecutive work/education with no gaps. Alternative Trades: 3 Non Traditional Trades with Rent or 4 Non Traditional Trades with No Rent. 0 x 30 and must have 12 month history on each trade. Pricing: 3.00 negative adjustment to price. Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2 month Reserves. FTHB Education is required. Minimum Loan: $30,000 Residual Incomer per Family/Geographic: Borrowers mus...