KENTUCKY USDA AND RURAL HOUSING MORTGAGE QUALIFYING GUIDELINES FOR 2016

Kentucky USDA Rural Development Guaranteed Lending Program is geared to assist low to moderate income families realize home ownership. Below are some important highlights:

• 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…