Rural Development Kentucky Underwriting Guideline Mortgage Changes for Income, Credit, Work History and Assets

Chapter 9 – Income Analysis

• Paragraph 9.3 is being revised as follows:
  o To clarify that lenders must verify the income of each adult household member for the previous 2
  years, which is consistent with the requirements in 7 CFR 3555.
  o To clarify under “full income documentation”, the lender must obtain W-2s or IRS Wage and Income
  transcripts, in addition to paystubs.
  o To change the term “streamlined documentation” to “alternative income documentation” to remove
  confusion with the streamlined refinance product.
  o To clarify under “self-employed income documentation” that if ownership interest is less than
  25%, neither the “Business Owner” or “Self-Employed” options should be selected in GUS.
  o To clarify the Verbal Verification of Employment must be obtained within 10 business days of loan
  closing and confirmation a self-employment business remains operational must be…

VA Update to Private Roads and Shared Driveways VA has announced that effective on and after 11/25/2022, they will no longer require the borrower to obtain a joint maintenance agreement when one doesn’t exist for properties that are accessed through a private road or shared driveway because it creates an undue burden on the veteran.

A recorded permanent easement or recorded right-of-way to the property from the public road is still required to ensure the veteran has legal and continued access to the subject property. VA underwriters are no longer required to mark item 5 of the NOV as it will no longer apply. Please refer to the Property Characteristics and the Appraisal Requirements, Forms topics for complete guidelines

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email:kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

The…

Kentucky Mortgage VA Guidelines for Income.

Generally, Overtime, Part-Time, Second Jobs, and Bonuses cannot be considered stable and reliable unless it has continued and been verified for 2 years.
However, Kentucky VA guidelines allow the lender to offset debt of 6-24 months in duration with this income.

Reference: VA Handbook – Chapter 4 – Section 2(h)
“The lender may use this income, if not eligible for inclusion in income, but verified for at least 12 months, to offset debts of 6 to 24 months duration. An explanation of why the income was used to offset must be documented.”

This little-known secret in the guidelines could help your borrower qualify by reducing the debt included in their qualifying ratio!

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Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223