Kentucky USDA Rural Housing Mortgage Lender

The U.S. Department of Agriculture (USDA) has approved a new exemption on seller concessions to meet industry standards while ensuring Kentucky Mortgage borrowers for rural homebuyers in Kentucky remain eligible for affordable financing under the  Single Family Housing Guaranteed Loan Program . This exemption enables Kentucky USDA homebuyers to exclude real estate commission fees from the 6 percent cap on seller, or other interested party, allowances to incentivize a buyer to purchase a home. These concessions may include funding toward the buyer’s mortgage financing costs or loan closing costs. Under the exemption, real estate commission fees paid by the seller on behalf of the homebuyer will be exempt from this cap to ensure that rural homebuyers will retain affordable access to Kentucky USDA guaranteed home loan financing regardless of changes to real estate commission requirements.   Kentucky Rural Housing USDA’s Single Family Housing Guaranteed Loan Program assists lender...

Information on the Kentucky USDA Rural Development Loan, I am providing you with a series of informational  on the Kentucky Money Down USDA Rural Loan Program.  Yesterday I provided a quick overview of Kentucky USDA Loans minimum credit score requirements.  Today  I will like to discuss how a perspective home buyer can purchase housing using the USDA Loan program with no-to-minimal cash required at settlement. Since the USDA Rural Development Loan will finance 100% of the purchase price there is no down payment required on the loan. The only remaining items with out-of-pocket cash requirements by the buyer are the settlement related closing costs and escrows.  USDA allows these items to be paid for by the seller or financed into the new mortgage loan using flexible guidelines that can virtually eliminate the buyer's out-of-pocket cash requirements. Like every type of purchase transaction USDA Loans have closing costs.  However, the USDA Loan Progr...

 Kentucky USDA Rural Housing Guidelines Updated  As previously announced, USDA has published Chapter 6 updates which are effective for all loan commitments issued on and after 11/12/2020. The key updates are as follows: Seller Contributions USDA has clarified that seller contributions cannot be used to pay personal debt or as an inducement to purchase by including personal items that can be removed from the property. Fees USDA previously provided eligible discount point options; however, USDA has removed and discount points are no longer eligible to be financed to permanently “buy-down” the interest rate. The Up-Front Guarantee Fee and Annual Fee is to be included in the 3% lender fee calculation, whereas it previously was not included. Contract for Deed USDA has added the allowance of loan funds to be used for the conversion of seller-financed mortgages with an existing dwelling, also known as a conversion of a contract for deed or land contract. This was not previously addre...