I wanted to share an important update regarding the USDA Single Family Housing Guaranteed Loan Program (SFHGLP) for Kentucky home buyers.
The USDA has recently proposed revisions to several chapters of their technical Handbook 1-3555, which may impact various aspects of the loan process. These proposed changes are currently open for comment until December 8, 2024, with final publication expected soon. Here’s an overview of the proposed revisions:
Key Proposed Updates to Kentucky Rural Housing USDA Guidelines:
Seller Concessions: Clarifies that funds provided by the seller to pay the buyer’s real estate commission fees are excluded from the 6% seller concession cap.
Refinancing Eligibility: The seasoning period for an existing loan to be eligible for refinancing has been updated to 180 days.
Payment History Requirement: To qualify for a refinance, the existing loan must not have any delinquencies greater than 30 days within the previous 180-day period.
Manufactured Homes: Removed existing manufactured homes from the list of prohibited loan purposes.
Builder’s Warranty: The one-year builder’s warranty must include the date, warrantor, buyer, location, and signatures.
Rehabilitation and Repair: The maximum for non-structural repairs with a home purchase is updated to $75,000. Structural repairs now have a reserve period extended to 10 months if exceeding $75,000.
Manufactured Homes Repairs: Repairs to manufactured homes (both new and existing) are no longer listed as prohibited purposes.
Title Insurance: Community land trust, leasehold interest properties, and manufactured homes now require title insurance.
New Manufactured Homes: Must be built within 12 months of loan closing. The certification label should remain visible after installation is complete.
Existing Manufactured Homes: New guidelines for financing existing manufactured homes align with the requirements in the upcoming Existing Manufactured Home Final Rule.
These revisions enhance flexibility for Kentucky USDA home buyers, especially with updates related to manufactured homes, property types, and refinancing eligibility. If you’re interested in discussing how these changes may affect your eligibility or if you have any questions about Kentucky Rural Housing USDA loan options, please feel free to reach out. I’m here to help you navigate these updates and find the best financing solution for your new home.
Email - kentuckyloan@gmail.com 
Call/Text - 502-905-3708Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans
Website: www.mylouisvillekentuckymortgage.com
Address: 911 Barret Ave., Louisville, KY 40204
Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916
For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.
