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 for 2021

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 Fiscal Year 2021 Conditional Commitment Notice for details

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

Kentucky Rural Development Guidelines for Pools, credit scores, debt ratios.

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 are 29/41% (31%/43% for homes built after
Jan 1, 2001) but can be waived when it makes sense.: .5% (.005) annual fee will be assessed. Rural Development is a direct guarantor. There is no mortgage insurance and the Guarantee remains at the  maximum of 90% of original principal borrowed. Fee cannot be prepaid and is billed annually to the servicing lender. Rate and Term: 30 year fixed, very competitive conventional rate


Other eligibility criteria:

.• No co-signors residing outside of the household.

• In-ground swimming pools. The loan, not including RD fee, is limited to the appraised value WITHOUT the pool. The FHA appraiser must justify value ‘as is’ AND a value as if the property had no pool. The value of the  pool must be established and justified

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/

2017 Funds Now Available for Kentucky USDA Rural Development’s Single Family Housing Guaranteed Loan Program is now available.

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 will signal the request has been successfully obligated by the Agency.  NOTE: Closing transactions are not eligible for submission to USDA until a loan is successfully obligated. Once the loan has closed (including loans that were closed prior to the obligation of funds by the Agency) the lender may submit their request for Loan Note Guarantee along with a closing package.  For manually submitted packages, ensure the lender certification on the Conditional Commitment is signed and dated after the Agency’s obligation date (the issuance date on the updated Conditional Commitment).  Lenders using the Agency’s automated Lender Loan Closing (LLC) system will complete the lender certification electronically (i.e. no manual signature/date required).   Joel Lobb Senior  Loan Officer (NMLS#57916) American Mortgage Solutions, Inc. 10602 Timberwood Circle, Suite 3 Louisville, KY 40223 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). 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.

On October 1st, 2016,the USDA Rural Development Guaranteed Home Loan Program is making a very drastic cut to fees for Rural Housing Mortgage Loans in Kentucky

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 Development will process, approve, and issue Conditional Commitments (Form RD 3555-18) for those applications that are eligible “subject to the availability of commitment authority;”  An upfront guarantee fee of 1.00 percent and an annual fee of 0.35 percent will apply to both purchase and refinance transactions in FY 2017. Lenders may then close loans as scheduled; When funds become available, Rural Development will obligate funds for Conditional Commitments issued for loans subject to the availability of commitment authority; Once loans are obligated, Rural Development will process lenders’ Loan Note Guarantee requests as soon as the loan closing is verified and all conditions of the Conditional Commitment are satisfied; Lenders assume all loss default risk for the loan until Rural Development is able to obligate it and the Loan Note Guarantee is issued. Please refer to the Conditional Commitments Issued During the Beginning of Fiscal Year 2017’s Unnumbered Letter for more information! Thank you for your participation in the USDA Single Family Housing Guaranteed Program.  We look forward to serving you in FY17!   . New upfront fee: 1.00% Current upfront fee: 2.75% *monthly fee will also drop New annual fee: 0.35% Current annual fee: 0.50% 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.

On October 1st, the USDA is making drastic cuts to fees for Kentucky Home Buyers Using the Rural Housing Guaranteed Program

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, and 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 accordingly. If loans in USDA's portfolio perform well, another drop could come in 2017.

But the 2016 reductions alone equal big savings for USDA home buyers.

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.

USDA slashing mortgage fees: Borrowers who use the U.S. Department of Agriculture’s Rural Housing Service to get a mortgage could soon pay significantly less for their loan, as the USDA announced that it is about to cut its loan fees for lenders who use the Single Family Housing Loan Guarantee Program. Here are all the details.



According to the announcement, the USDA is set to cut its upfront guarantee fee from 2.75% of the loan-at-close amount to 1%. Additionally, the USDA is cutting its annual fee from reduced from 0.45% of the unpaid principal loan balance to 0.35%.

Great News for Kentucky Rural Housing Home Buyers using the USDA Loan Program!

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 family of four and up to $98k for a household family of five or more.

Lender Credit from the interest rate may be used to pay closing costs.

Gifts ok! Usually not needed for USDA loans because 100% Financing offered. Gift funds cannot be used for reserves to get a GUS approval.

Applicants with > 20% of the sales price in assets (exclude retirement accounts) are not eligible for USDA financing.

Clear CAIVRS required – CAIVRS is a Federal Government-wide data base of information regarding individuals where an insurance claim or guarantee loss was paid.

2 tradelines with > 12 months of repayment history – installment or revolving and trade lines may be open, closed or paid in full by applicant.

Student Loan Payments – important recent change to Kentucky Mortgage RHS USDA Loans. The change no longer allows for student loan payments that are IBR (Income Based Repayment), graduated, adjustable, interest only and deferred. USDA now requires a payment equal to 1% of the balance reflected on the applicant’s credit report.

Kentucky Rural Development USDA Changes Coming soon below:

Kentucky USDA Streamlined-Assist refinances – similar to an FHA Kentucky Streamline…details coming soon!

Upfront Fee and the Annual Premiums will be reducing in the Fall of 2016 for a new Kentucky Rural Housing Mortgage Loans!

To be eligible for the KY Rural Housing USDA program, properties must be outside the major metropolitan areas and income requirements be met.

Click here to go to the KY USDA Income & Property Eligibility site >>>> http://www.rd.usda.gov/files/RD-GRHLimitMap.pdf


KY USDA Income Limit Chart (Example – A family of 4 can make no more than $75,650 and a family of 5 can make up to $99,850 for eligible homes outside the Jefferson County Kentucky Metro area)






Joel Lobb
Senior Loan Officer
(NMLS#57916
phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com



http://www.mylouisvillekentuckymortgage.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 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 must have residual income left over after their loan closes, see table below for what is required:
Family Size
1
$450
2
$755
3
909
4
1,025
5
1,062
Over 5 Add $80 for each additional family member up to 7

Kentucky Rural Housing and USDA 620-639 Credit 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: 3 Trade Lines seasoned for 12 months with high balances of a minimum $500. No delinquency in last 12 months regardless of size or type.
No open collections or judgments (exceptions granted upon review only and only based on overall profile of the loan)
Alternative Trades: May be needed if credit is thin or needed to be strengthened overall credit quality.
May require four non-traditional trades if no Rent History.
Job Time: 2 years of consecutive work/education with no gaps.
Pricing: 1.50 negative adjustments to pricing.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2
months reserves.
Minimum Loan: $30,000

Kentucky USDA and Rural Housing Manual Underwrite with GUS Refer Scores >=640:

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 if no rent history is available.
Credit: 3 Trade Lines seasoned for 12 months with high balances of a minimum $500.
OR if payment shock <=25% and traditional trade lines cannot be supplied we can accept 3 alternative trade lines with 12 month history and 0 x 30.
No delinquency in last 12 months regardless of size or type on any credit.
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.
Pricing: 2.00 negative adjustments to pricing.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2
months reserves. May be waived with strong compensating factors.
Minimum Loan: $30,000

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell