Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Job History and Income Requirements for a Kentucky...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Job History and Income Requirements for a Kentucky...: 

  Job History and Income Requirements Kentucky Government Mortgage FHA, VA, USDA and Fannie Mae   Mortgage Home Loan Job History

Kentucky Government Mortgage FHA, VA, USDA and Fannie Mae  Mortgage Home Loan Job History & Income Requirement Breakdown

Kentucky Rural Housing USDA Income Eligibility guidelines.

Today I will like to discuss what income is allowed by USDA Lenders in Kentucky  when calculating your income, as well as income that is used to determine whether you meet Kentucky Rural Housing  USDA Income Eligibility guidelines.
USDA Loans in Kentucky equire that the borrower's income meet both "Income Eligibility" and "Income Qualifying" requirements.  Income Eligibility is income used to determine whether the income of all adult household members exceeds USDA's county specific and household size allowable limit.  Income Qualifying is the income used to determine whether the income is appropriate to support the loan request.  The components used to determine the income for both criteria differ.

A common list of areas that should be reviewed by the Loan Officer with the borrower is as follows:

Income Type	Income - Eligibility	Income -Qualifying
Household Income in Kentucky	Income of all adult members of the household are considered for qualifying purposes even if they are not on the loan application	Use only income from borrower(s) on the loan application
W-2 Annual Income in Kentucky	Use Box 3 – Social Security Income	Use Box 1 – Wages, tips, other comp
Court Ordered Child Support and Alimony	Use court ordered amount even if not receiving income regularly. This is for all members of the household	Must document on-time receipt over the previous 12 months
Part-Time, Overtime, and Bonus Income	Any income earned is extrapolated over a 12 month period of time	Need a two year documentable history with the same employer to be considered
Business Income/Loss	Business income or loss from a previously filed tax return will be used to determine income	Need a two year documentable history provided by tax return information obtained directly from the IRS
Unemployment Income	Benefit received from current year (and possibly previous year even if non-reoccurring) will be added to income eligibility	Only unemployment income derived from seasonal planned layoffs will be considered as qualifying income.  All other unemployment income will be disregarded
Unreimbursed Business Expense	Reduce income eligibility income	Reduce income qualifying income

Loan Officers that are inexperienced with USDA Loans in Kentucky often incorrectly calculate income eligibility, which may lead to a subsequent loan denial.  Furthermore, the actual borrower should review this information as well. Borrowers need to realize there are variables identified through the loan approval process that the Loan Officer has no way of knowing when providing an initial pre-qualification letter. For instance, the Underwriter will not know if there are any unreimbursed business expenses until tax returns are obtained directly from the IRS, unless the borrower proactively communicates the information to the Loan Officer during the initial loan pre-qualification interview. 

Most are familiar with USDA Rural Housing Loan Program  being a great no money down program available and it is not just for Kentucky first time 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.

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What are the income and employment guidelines for a Kentucky Rural Development Loan Housing Approval?

What is an acceptable income and employment for a KY USDA Loan Approval?

 There is no minimum length of time an applicant must have held a position to
 consider employment income as dependable.
 Lender must verify the applicant’s employment for the most recent 2 full years
& verify that the applicant’s income has been stable.
 The applicant should not have any gaps in employment of more than a month
 within the 2 year period prior to making the loan application.
 Applicants that have not been employed for 12 months with their current
employer or have experienced a significant earnings increase are considered high
risk.

• Second jobs, full 2 year history
• Unearned income, 3 year continuance
• Self‐employed applicants, 2 year history


Newly Employed:

Less than a 2-year employment & income history can be considered when documentation = applicant was attending school immediately prior to current employment.
School Program/Classes must correlate to job!
For those applicants about to start a new job:
Firm offer letter from new employer indicating the job will begin within 60 days of loan closing

Re-entering the Workforce:

Applicants who re-enter the workforce after an absence to care for a family member or minor child,
extended medical illness, or other reasonable circumstances & less than 2-year employment &income history: May be considered for repayment income if the applicant has been at the current employer for a minimum of six months and there is evidence of a previous employment history

Significant increases or decreases in income level:

Experienced a Significant Decrease?

Previous higher income cannot be averaged for repayment purposes
 unless there is documentation of a one-time occurrence (e.g. injury)
that prevented working or earning full income for a period of time & proof that the applicant
is back to the income amount that they previously earned. Focus on the most recent earnings
and income that is likely to be received at the level used for qualifying.

 Experienced a Significant Increase?

 Proposing to qualify the applicant at the higher amount?

 NEED: sufficient documentation to confirm the increased income is stable and likely to
continue at the level used as part of the written analysis


Fixed Income like Social Security, SSI, non-taxable income:

• May be grossed up 25% for repayment
• Do not gross up for annual income
• No other adjustments are authorized

If you have questions about qualifying as first time home buyer in Kentucky using the USDA Home Loan Program, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.

I have successfully originated over 200 USDA Home loans in Kentucky. Put my experience to work for you. Your Kentucky USDA Rural Housing Loan Expert.

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 Text or call phone: (502) 905-3708

email me at 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 views of my employer. Not all products or services mentioned on this site may fit all people