New USDA Loan Guidelines for Kentucky Home Buyers

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:

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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.

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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.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky USDA Mortgage Loans get Drastically Lowering Costs for Buyers

Kentucky USDA Mortgage Loans get Drastically Lowering Costs for Buyers

  USDA has announced that effective their Fiscal Year 2017 which starts October 1, 2016, that the USDA funding fee is lowering from 2.75% to only 1% for all Kentucky-backed USDA Rural Housing Mortgage loans!  Plus the annual fee which is figured into the payment kind of like PMI is lowering from .50% to .35%! 

Here's an example of the savings: The current funding fee on a $100,000  purchase would be about $2,50  financed on top of the loan but 1% would make it just a little over $1,000.  That is a great savings, then there will be an additional lower payment because of the lower annual fee. For example on the monthly payment savings you are now looking at about an $14 monthly difference in your monthly payment.

Not only buyers looking for a no money down purchase at a great fixed rate can take advantage of this but also borrowers with a  current USDA loan can use these features to refinance to a new USDA loan even with no appraisal.  

Call us for questions/scenarios you have and approving buyers up-front or if you have an issue on a borrower. 

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Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

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100% financing-Downpayment Assistance and Zero Down Home loans Exist

USDA

GRH Guaranteed Rural Housing Program
100% financing

Talk with us about this 100 percent financing program if you are looking to buy or refinance a single family home in a rural area. All of Kentucky may be eligible by county and income limit. Contact us to verify if your property is eligible.

Some key features include:

- No PMI. That's right, no private mortgage insurance. Like VA, this program has a Guaranteed fee that can be financed into the loan the same way VA loans have a Funding fee.

- 6% seller help/contribution is allowed

- No minimum contribution from your own funds. FHA has a 3.5% requirement. There are also no cash reserves required, as is the case with your typical conventional loan.

- This program only offers a fixed rate option for primary 1 unit residences. Current maximum loan amount is $417,000.



There are income limitations to qualify. Contact a  Loan Officer and we will help you find a home where you can take advantage of this great 100% financing program. Contact us to see if your property is eligible for the USDA 100% program.



VA financing
100% financing

The VA does not make home loans, they insure them. We are VA approved and can help you with your VA loan request. Some VA benefits include:

- No downpayment is required in most cases

- Borrow up to 100% of purchase price

- Lower closing costs

- Mortgage is assumable

- No Private Mortgage Insurance (PMI)

- No penalties if you prepay the loan

- You may be eligible for waiver of VA funding fee

- VA support during temporary financial difficulties



More on 100% VA financing

FHA financing & down payment help

gift funds are allowed for the entire down payment, closing costs, and pre-paid items. Down payment can come as a gift from a family member, an employer (tip: convert a raise or bonus into down payment assistance), or from a nonprofit institution or government grant.

KHC's First Mortgage Government Loan Products

Kentucky Housing KHC Credit Standards and Guidelines

October 20, 2010Louisville Kentucky MortgageEditLeave a commentGo to comments

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