Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist.

Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist.

Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist.

loan, the property must be located in a rural designated area as defined in Rural Development Instruction §1980.312. You may view eligible areas on USDA Rural Development’s web-site at:

the value of the site must not exceed 30 percent of the total value of the property. When the value of the site is typical for the area, as evidenced by the appraisal, and the site cannot be subdivided into two or more sites, the 30 percent limitation may be exceeded.”

If a 10-year Builder Warranty is provided, only a Final Inspection and a

Thermal Certification are required

Existing properties must meet the current requirements of HUD Handbooks 4150.2 and 4905.1, typically verified through an RHS Adequacy Certification (Existing Dwelling Inspection Report), or by the appraiser certifying in the comments section of the appraisal that the property meets HUD Handbooks 4150.2 and 4905.1.

•

Required Repairs/Escrow Agreements

When repairs are required for structural or mechanical deficiencies that exceed the Seller’s contractual obligation, can assist borrowers.  allows the ability to finance required improvements based on an “as improved” appraised value, in combination with an escrow hold-back at closing.

Unless the deficiency is a significant item that negatively impacts the safety or livability of the dwelling, loan closing need not be delayed. For those deficiencies that can be corrected post-closing, Chase will require, in addition to our standard closing items:

•

A corrected FNMA 1003 (Uniform Residential Loan Application) with the amount of financed improvements listed under the “Repairs” Section.

•

Estimates/contracts for all repairs financed with loan proceeds.

•

A -approved escrow hold-back agreement signed by buyer and

seller at closing.

•

A collection of one and one-half times of the estimated repair cost

retained at closing to be disbursed by the settlement agent.

•

Final inspection of required repairs will be required.

Rural Development requires all repairs to be completed prior to their issuance of the final Loan Note Guarantee (Rural Development Form 1980- 17). However, external repairs delayed by weather related issues must be completed within 120 days of loan closing as outlined inKentucky Rural Housing USDA  Rural Development Instruction §1980.315 – Escrow accounts for exterior development.

 

Kentucky Rural Housing USDAUNDERWRITING GUIDELINES

For loans closing with  funds, it is our policy to have repairs for internal deficiencies completed within 30 days of loan closing. As Rural Development will require a final inspection once the work is completed, please include this expense as part of the escrow holdback.

•

Maximum Interest Rate (GRH Purchase Transactions Only)

The maximum interest rate for the Rural Development Guaranteed Rural Housing Program is defined as the FNMA 90-day actual-actual yield requirements plus 60 basis points, rounded up to the nearest quarter percent. 

  

RURAL HOUSINGKentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

Assumability

The Guaranteed Rural Housing loan is assumable subject to the following

conditions: Kentucky Rural Housing USDA

•

Subject property and applicant(s) must meet all criteria for the Rural

Development Guaranteed Housing Program.

•

Applicant (buyer) must be credit-approved by •

In accordance with Rural Development (FmHA) Instruction 1980-D,

no release of liability will be granted to the original Borrower(s).

•

A new title policy will be required at closing.

•

Normal application, processing, and transfer fees will apply.

 

 

RURAL HOUSINGKentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

INCOME VERIFICATION/REQUIREMENTS

•

The Guaranteed Rural Housing loan is documented with both Rural Development and FNMA forms. (Rural Development forms are provided in the Forms Section of this manual.)

•

All sources of income must be verified using FNMA Form 1005 – “Verification of Employment“. Rural Development, as outlined in Rural Development Instruction §1980.351, will typically review the past 24 months to determine both Income Eligibility, as well as compliance with Monthly Housing (29%) and Total Debt (41%) Ratios. Usually, Chase requires verified primary sources of income for a 24-month period to confirm loan approval.

•

Alternate documentation is permitted in place of FNMA Form 1005. Alternate documentation must include: two years W-2’s, 30 days paystubs with year-to-date information, and a Processor’s Certification of Employment.

•

The following should serve as a guideline for handling income-related issues:

•

Full Time – For borrowers whose income is derived from full-time

employment, two (2) years of full employment history must be verified

on FNMA Form 1005 (Verification of Employment).

•

Borrowers are not required to have 24 months continuous

employment with their current employer.

•

Where there has been a change in employers in the last 24 months, the borrower must explain any gap in employment that extends beyond one (1) month.

•

Two (2) years of tax returns will only be required for:

•

Self-employed borrowers

•

Commissioned borrowers

•

Borrowers employed by a relative or closely-held family

business.

 

 

RURAL HOUSING Kentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

Borrowers who are not commissioned, but need to

validate their expenses.

•

Part-Time – Part-time or second job income with duration of 24 months

may be used.

•

Overtime and Bonus Income – Overtime and bonus income can be

used to qualify the applicant if the employer verifies that the applicant has received it during the last 24 months and indicates that the overtime or bonus income will in all probability continue. The lender must develop an average of the last 24 months overtime and bonus income to determine the amount of income that can be considered in evaluating the borrower’s qualifications.

•

Self-Employed Income – Two (2) previous years 1040′s are required.

They must be signed and certified by the applicant. Additionally, a year-to-date Profit & Loss Statement with Balance Sheet, prepared and signed, must be submitted. If the applicant has 25 percent or more ownership interest in any business entity, the applicant must also provide the most recent two (2) years’ business tax returns (Corporate, Sub-S Corporate, or Partnership) along with a current Profit and Loss Statement with a Balance Sheet prepared and signed by an accountant.

•

Alimony, Child Support, and Separate Maintenance – Chase

requires documentation that child support, alimony, or separate maintenance will continue for three (3) years after the date of the mortgage application or it will not be considered as income. The borrower must also provide evidence that the funds have been received for the last 12 months. Acceptable evidence includes deposit slips, canceled checks, court records, or tax returns.

•

Retirement Income – Retirement income, i.e., pensions, annuities,

401K distribution, etc., may be verified by letters from the organizations providing the income, copies of the retirement award letters (with photocopies of canceled checks attached), tax returns, or IRS W-2 forms. This evidence must confirm a continuation of this income for a minimum of three (3) years.

 

RURAL HOUSING Kentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

Social Security Income – Acceptable verification includes a

photocopy of the Social Security Administration’s award letter or copies

of the borrower’s last 2 bank statements to confirm the

regular deposit of the payments. Benefits that have defined expiration dates must have a remaining term of at least three (3) years to be considered as income.

•

Disability Income – Disability income will be considered acceptable

income provided it can be documented by furnishing a recent copy of respective letter of benefits or allotment setting forth the terms of the income. The benefits must be on-going for a minimum of three (3) years.

•

Unemployment And Public Assistance Benefits – Unemployment

And Public Assistance benefits will be considered as income if they are properly documented by letters or exhibits by the paying agency. The amount, frequency and duration of payments must be stated in the verifying documents. If an individual receives unemployment benefits as a regular part of his/her income, Chase requires copies of tax returns for the past two (2) years to establish a history of receipt. This income must be documented as on-going for a minimum of three (3) years.

•

Dividends/Interest Income – Dividends and interest may be used as

income provided the assets that are generating the dividend/interest income will not be used for the down payment or closing costs on the proposed loan. The applicant must provide tax returns for the previous two (2) years along with verification of current assets via bank statements, verification of deposits, etc. This income will be averaged over two (2) years or calculated at current market interest rates, whichever is less.

 Kentucky Rural Housing USDA

 

Related articles

• 3 Things The Lender Looks At When You Apply For A Kentucky USDA Rural Development Home Loan (kentuckyfirsttimehomebuyer.com)
• Paje urges public to support rural development initiatives (tuklasinnatin.wordpress.com)
• No Down Payment Product for Rural Buyers – USDA Loans (keciabland.wordpress.com)
• $14 Billion in No Money Down Guaranteed Loans for Rural Homebuyers (theraleighmortgageguy.com)
• Sustainable Land Use and Rural Development in Mountain Areas at Hohenheim University in Stuttgart (chimalaya.org)

502 905 3708 or email kentuckyloan@gmail.com

Kentucky Rural Development

Kentucky Guaranteed Housing

Home Financing Options for Lenders

Think Guaranteed First!

The advantages:

• Loan up to appraised value plus the guarantee fee.
• No monthly mortgage insurance (MI).
• Maximum loan amount is the appraised value plus a one time guarantee fee.
• No cash contribution or cash reserves required from applicant.
• Unrestricted gifts.
• Non-traditional credit acceptable.
• Streamlined credit documentation available – based upon credit.
• No minimum credit score.
• Repayment ratios are 29/41.  Ratio waivers are allowed with documented compensating factors.
• Not limited to first-time home buyers.
• Competitive market based fixed interest rates with 30 year term.
• Available secondary markets: wholesale lenders as well as Fannie Mae, Freddie Mac, and Ginnie Mae.
• Qualifies for Community Reinvestment Act (CRA)
• Agency approved lenders underwrite the loan.
• Any lender, or broker, may originate loans through an Agency approved lender.
• Agency guarantee commitments are issued within 1-2 business days of receipt of the complete package – based on volume of loan requests.
• Rural Development provides lender support for questions, training, and outreach assistance.

Choose Rural Development as the first option

• A competitive fixed rate combined with no mortgage insurance provides long term savings for the customer.
• Home buyers are able to retain their savings since there is no down payment requirement and closing costs can be financed up to the appraised value.
• Lenders report an overwhelming preference for the Guaranteed Rural Housing loans for the great value it provides to their customers.  Choose the best program for your customers!

Applicant eligibility criteria:

• Occupy the property as your primary residence.
• Be able and willing to occupy the property.
• Be a U.S. citizen, a U.S. non-citizen national or a qualified alien.
• Demonstrate an ability and willingness to meet obligations and debts as they become due.
• Have a credit history that indicates a willingness to meet obligations as they become due.
• Have an adjusted household income that is within Rural Development guidelines based on the number of persons who will occupy the home.
• Purchase a residential property that is within a Rural Development eligible area.

Checklists and web site links:

• Determine if the property is within the Rural Development eligible area.
• Use the link “Single Family Housing” under “Property Eligibility”.
• Determine if your applicant’s adjusted household income is within the Agency limits,
• Use the link “Single Family Housing” under “Income Eligibility”
• What is adjusted household income?
• Determine income limits by State or particular county
• Loan application package checklist
• Forms list
  • Form RD 1980-21, Request for SFH Conditional Commitment
• Useful web links

What is the Rural Development “guarantee“?

• Lenders have less risk with the Rural Development guaranteed loans than with conventional loans covered by private mortgage insurance.

Thank you for visiting our web site.  We look forward to working with you as partners in providing affordable housing opportunities in rural areas.  Let us know how we can further serve you.

Apply today for Free Below:

Apply below for free–I am a USDA Expert and have done over 129 USDA loans in my lifetime in Kentucky

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County Ineligible Area Contact Person’s Email Address

Boyd and Greenup Ashland Area
Ashland Overview Map
Ashland Map 1
Ashland Map 2
Ashland Map 3
Ashland Map 4
Ashland Map 5

Jimmy Hall 
Phone: 606-784-6447, Ext. 4 
Email:  jimmy.hall@ky.usda.gov

Warren Bowling Green Area
Bowling Green Overview Map
Bowling Green Map 1
Bowling Green Map 2
Bowling Green Map 3
Bowling Green Map 4
Bowling Green Map 5
Bowling Green Map 6

Steve Cosby
Phone:  270-842-1146, Ext. 4
Email:  steve.cosby@ky.usda.gov

Bullitt Bullitt County Area
Bullitt County Overview
Bullitt County Map 1
Bullitt County Map 2
Bullitt County Map 3
Bullitt County Map 4
Bullitt County Map 5
Bullitt County Map 6
Bullitt County Map 7

Scott MacMahon
Phone: 270-769-1555
Email:  scott.mcmahon@ky.usda.gov

 Clark Clark County Area
Clark County Overview Map
Clark County Map 1
Clark County Map 2

Steve Lind
Phone:  859-233-0194, Ext. 4
Email:  steve.lind@ky.usda.gov

Fayette Fayette County Area Overview Steve Lind
Phone:  859-233-0194, Ext. 4
Email:  steve.lind@ky.usda.gov
 

Franklin  Frankfort Area 
Frankfort Overview Map
Frankfort Map 1
Frankfort Map 2
Frankfort Map 3
Frankfort Map 4
Frankfort Map 5

Gene Floyd
Phone: 502-633-3294, Ext. 4
Email: gene.floyd@ky.usda.gov

Christian Ft. Campbell Area
Ft. Campbell Map 1
Ft. Campbell Map 2
Ft. Campbell Map 3

Jerry Cloyd
Phone: 270-821-4430, Ext. 4
Email:  jerry.cloyd@ky.usda.gov

Hardin Hardin County Area

Hardin Overview Map

Hardin Map 1

Hardin Map 2

Hardin Map 3

Hardin Map 4

Hardin Map 5

Hardin Map 6

Hardin Map 7

Hardin Map 8

Hardin Map 9

Scott MacMahon

Phone: 270-769-1555

Email:  scott.mcmahon@ky.usda.gov

Henderson Henderson Area

Henderson Overview Map

Henderson Map 1

Henderson Map 2

Henderson Map 3

Henderson Map 4

Jerry Cloyd

Phone: 270-821-4430, Ext. 4

Email:  jerry.cloyd@ky.usda.gov

Christian  Hopkinsville Area

Hopkinsville Overview

Hopkinsville Map 1

Hopkinsville Map 2

Hopkinsville Map 3

Hopkinsville Map 4

Jerry Cloyd

Phone: 270-821-4430, Ext. 4

Email:  jerry.cloyd@ky.usda.gov

Jefferson Jefferson County Area

Jefferson Overview Map

Gene Floyd

Phone: 502-633-3294, Ext. 4

Email: gene.floyd@ky.usda.gov

Madison Madison County Area

Madison Overview Map

Madison Map 1

Madison Map 2

Madison Map 3

Steve Lind

Phone:  859-233-0194, Ext. 4

Email:  steve.lind@ky.usda.gov

Meade Meade County Area

Meade Overview Map

Scott MacMahon

Phone: 270-769-1555

Email:  scott.mcmahon@ky.usda.gov

Boone, Campbell, and Kenton Northern KY (Boone)  Area

Northern KY (Campbell) Area

Northern KY (Kenton) Area

Northern Kentucky Map 1

Northern Kentucky Map 2

Northern Kentucky Map 3

Northern Kentucky Map 4

Northern Kentucky Map 5

Northern Kentucky Map 6

Ernest Scruggs

Phone: 606-824-7171

Email:  ernest.scruggs@ky.usda.gov

Daviess Owensboro Area

Owensboro Overview Map

Owensboro Map 1

Owensboro Map 2

Owensboro Map 3

Owensboro Map 4

Jerry Cloyd

Phone: 270-821-4430, Ext. 4

Email:  jerry.cloyd@ky.usda.gov

McCracken Paducah Area

Paducah Overview Map

Paducah Map 1

Paducah Map 2

Paducah Map 3

Barbara Gillum

Phone:  270-247-9525, Ext. 4

Email:   barbara.gillum@ky.usda.gov

KHC’s First Mortgage Government Loan Products

Kentucky Housing KHC Credit Standards and Guidelines

October 20, 2010Louisville Kentucky MortgageEditLeave a commentGo to comments

1 Vote

KHC Credit Standards as of October 2010

Credit Standards
 Insuring agency credit standards for the loan type the borrower
receives.
 Minimum credit score required for FHA, VA, and RHS: 620.
Minimum score for conventional: 660.
 FHA, VA, and Conventional loans: AUS approval required;
follow findings with maximum debt ratios of 40/45.
 RHS loans: maximum debt ratios of 29/41 for manual
underwriting; with GUS approval 40/45 and follow findings.
 Collections: for FHA, VA and Conventional loans, AUSapproved
findings to be followed. For RHS loans, follow agency
guidelines and/or GUS findings.
 Bankruptcies must be discharged for 2-7 years, according to

Kentucky Housing KHC Credit Standards and Guidelines

FHA KHC Mortgage Guidelines

 Minimum 620 credit score required.
 Financing to 96.50% of lesser of sales price or appraised value.
 All KHC DAPs and other KHC-approved secondary financing may be used.
 Maximum 6% seller-paid items.
 Maximum ratios of 40/45 with AUS approval.

agency guidelines and AUS findings.
 Foreclosures must be discharged for a minimum 2-7 years
according to agency guidelines and AUS findings.
 For most loan types, non-taxable income can be grossed-up by
15%. Must follow insuring agency guidelines.

Rural Housing Services (RHS)

 Minimum 620 credit score required.
 Financing to 100% of the appraised value, plus guarantee fee of 3.5%.
 All KHC DAP programs and other KHC-approved secondary financing may be used.
 No maximum on seller-paid items.
 Ratio requirements and guarantee fee per agency guidelines.
 KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with approval, expanded
ratios up to 40/45.

Veteran’s Administration (VA)

 Minimum 620 credit score required.
 Ratios up to 40/45% with AUS Approval.
 Financing to 100% of the lesser of the appraised value or sale price.
 All KHC DAP programs and other KHC-approved secondary financing may be used.
 Maximum 4% seller-paid items.
 Follow agency guidelines for ratio requirements and funding fee.
Mortgage Revenue

KHC’s First Mortgage Government Loan Products

Call us today for a free preappoval and compare our rates and service to any one in Kentucky