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I specialize in Kentucky USDA Rural Housing mortgage loans in KY. Apply for free today for a Rural Housing loan Pre-Approval Letter. Same day approvals. I offer the USDA Rural Development Guaranteed Housing Loans for all counties in Kentucky that are eligible. Put my expert advice to use. Call or text 502-905-3708 or email kentuckyloan@gmail.com This website is not affiliated with USDA or any other government agency. NMLS# 57916 NMLS# 1738461
Showing posts with label zero down rural housing loan. Show all posts
Showing posts with label zero down rural housing loan. Show all posts
Kentucky USDA Rural Development Loan
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 Program allows for the closing costs to be either (1) paid for by the seller, (2) paid for by the lender via a lender credit, (3) under certain circumstances financed into the mortgage loan, or (4) a combination of the above. To understand how this works reference the following three scenarios based on a purchase price of $200,000 and $10,000 in theoretical closing costs (such as lenders fees, settlement/title fees, taxes, escrows, homeowner's insurance, warranties, etc.).
Scenario 1 - Seller Agrees To Pay All Closing Costs:
The USDA Loan Program allows up to 6% of the purchase price to cover your closing costs. By working with a knowledgeable Lender and Realtor you should know upfront how much the settlement costs will be to purchase a house. When making the offer to purchase a home the sales contract will be written to include the requirement that the seller agrees to pay up to a specific dollar amount or a percent of the purchase price to cover these costs.
Scenario 2 - Lender Agrees To Pay A Portion Or All Of The Closing Costs:
Every state has different closing costs requirements. Based on the total amount of closing costs required, the lender may be able to pay a portion or all of the closing costs by charging the borrower a higher interest rate than their normal rate, and applying the "excess compensation" received from the investor for the higher interest rate toward the borrowers closing costs. Typically for every quarter point increase in rates, the lender will have between half to one percent of the loan amount that can be applied toward the buyers overall closing costs.
Scenario 3 - House Appraises For More Than The Purchase Price:
The USDA Loan Program is the only major loan program that allows for the difference between the appraised property value and the contract sales price to be applied toward settlement closing costs. The maximum loan amount, excluding the USDA Guarantee Fee, can be the combination of the sales contract price plus the settlement closing costs; provided this amount doesn't exceed the appraised property value.
Scenario 4 - Combination Of Multiple Scenarios:
If the seller paid closing costs are not enough to pay all closing costs and the property appraised for more than the sales price, the home buyer can use a combination of seller paid closing cost assistance/lender paying a portion of the closing cost/and (or) finance the remaining closing cost up to the appraised property value.
Joel Lobb
Mortgage Loan Officer
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
fax: 502-327-9119
email: kentuckyloan@gmail.com
email: kentuckyloan@gmail.com
Things needed to get pre-approved for a Kentucky USDA Rural Housing Loan.
Things needed to get pre-approved for a Kentucky USDA Rural Housing Loan.
1 What kind of credit score. USDA does not have minimum credit scores but most lenders will create overlays so as they don't get shut off from the USDA dept from issuing mortgage loans. USDA uses an online system, called GUS, to evaluate the credit portion of the loan approval. Credit scores, bankruptcies or foreclosures, collections, trades lines are all reviewed for credit worthiness.
USDA use to have a minimum tradeline requirement of 2 trades for 12 months but this was changed at the first of 2020.
Credit scores under 640 will automatically receive a refer, meaning it will be more difficult to get approved for the mortgage loan. I have seen credit scores below that get pre-approved, but it is very difficult to get approved below that.
3 year removed from Chapter 7 Bankruptcy and foreclosure.
2. Gather your documents---
USDA will want the following documents for pre-approval
Last two years tax returns for all household members to determine total household income
Last two years w-2's, 1099's and other incomes that are fixed like ssi, retirement, etc
Last two months bank statements and retirement accounts last quarterly statement.
Last 30 days of paystubs
If pay or receive child support, a record of last 12 months and copy of divorce papers
3. What does USDA loans offer Home Buyers in Kentucky?
- USDA: If you’re looking for a home in rural areas, the U.S. Department of Agriculture offers a single-family guaranteed loan program that offers up to 100% financing. Borrowers must meet income guidelines but do not need a down payment with very low mortgage insurance requirements.
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.
100% Financing Home Loans in Kentucky
Potential homeowners in rural areas often struggle to accumulate enough funds for down payments and closing costs, but there are several programs to help.
Krista Mettscher, a single family housing specialist for USDA Rural Development promoted a few of those programs last week during a visit to Chadron, noting that communities need a successful housing market to thrive.
USDA Rural Development offers two programs for individuals looking to purchase single family homes, both of which offer 100 % financing, thereby making a large down payment unnecessary. In conjunction with a lack of available housing, a down payment and the availability of financing are the largest barriers to home ownership, Mettscher said.
Her agency works to provide financing and find ways for homeowners to be successful by staying in their homes long-term.
“We do give our homeowners a lot of different options to stay in their homes,” she said.
USDA Rural Development’s Direct Loan Program offers 100% financing with no down payment and a current interest rate of 3.5%. Subsidies for low-income levels can make the interest rates as low as 1%.
“This program works really well for people on a fixed income,” she said.
There are income qualifications, but many people in rural areas fall within the guidelines. A household of up to four people can earn $54,400, while a household of five to eight individuals can earn up to $71,800 to qualify for the Direct Loan.
A credit score of 640 and above requires less documentation, but the agency doesn’t ask for potential home buyers to have perfect credit for the Direct Loan Program. In fact, there is no credit score requirement at all, Mettscher said, as financial ability is determined on a case-by-case basis.
The maximum mortgage allowed under the Direct program is $195,000, and home buyers are encouraged to keep their mortgage at no more than 30% of their income. The payment assistance subsidy, which can decrease the interest rate down to as low as 1%, can help home buyers who may struggle with their payments, but the goal is to remove the subsidy as soon as possible, Mettscher said. A portion of the subsidy – generally 20%- must be repaid to USDA Rural Development as soon as the home buyer sells the house, pays off the loan or no longer occupies the home.
The Direct program is a 33-year loan term and requires a whole-home inspection. Home buyers who qualify can use the loan for any modest (2,000 square feet), residential home in good condition, of either existing or new construction.
USDA Rural Development’s other program is its Guaranteed Loan Program, which does require some fees but is still cheaper than most traditional financing options. It’s not available for first-time home buyers, but still provides 100% financing with no maximum mortgage limits. Income guidelines are in place for this program as well. A family of up to four individuals can earn up to $82,700, while a family of five to eight individuals can earn up to $100,150. This program, however, requires a minimum credit score of 580, Mettscher said, but a whole-home inspection of the to-be-purchased property is not necessary. Instead, an appraiser must certify that it meets HUD standards.
The Guaranteed Loan Program also allows potential purchasers to consider buying acreages, but they must be residential, non-income producing properties.
Finally, USDA Rural Development can also help elderly homeowners (age 62 and above) with its Repair Loan Program and Repair Grant Program. The loan program allows homeowners to secure up to $20,000 in financing at 1% interest to make any repairs and improvements to their home. The income guidelines for this program are lower than those for the loans, set at $34,000 and $44,900. The grant program has the same income requirements, but is targeted to repair health and safety issues only by providing up to $7,500 in forgivable financial assistance.
“(The repair/grant programs) are very low-income categories,” Mettscher said.
Other assistance is available in Dawes, Sheridan, Sioux, Box Butte and Morrill counties through the High Plains Community Development Corporation, which is located in Chadron. Rita Horse said home buyers in those counties who meet certain eligibility requirements may qualify for closing cost assistance and down payment assistance. Horse also serves as a loan packager for USDA Rural Development, assisting prospective buyers with all of the paperwork to determine if they are eligible for the Direct or Guaranteed loans through the agency.
Kentucky Rural Housing USDA Home Loan Zero Down Payment Mortgage
A Kentucky Rural Housing USDA home loan is a zero down payment mortgage offered to rural property owners by the United States Department of Agriculture.
With applicants with qualifying incomes, the monthly loan payments are often cheaper than paying rent.
We have unrivaled expertise and success rate in securing Rural Development Kentucky USDA loan, click the link below to see if you qualify.
It only takes 2 minutes.
We have unrivaled expertise and success rate in securing Rural Development Kentucky USDA loan, click the link below to see if you qualify.
It only takes 2 minutes.
Kentucky Mortgage USDA Loan Requirements
What are the Kentucky USDA Mortgage Loan Requirements?
To decide if you qualify for an USDA Mortgage Loan, we will look at:
•Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.
•Your credit history (this is important, but USDA’s credit standards are flexible). A FICO score of 620 or above is required for all loans
•Your overall pattern rather than to individual problems you may have had.
To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.
if you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification belo
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