100% Financing Zero Down Payment Mortgage Loans for Kentucky Home Buyers. For the first First Time Homebuyer, I hope you find this website educational and informative, giving you the confidence when buying your first Kentucky Home. USDA, VA, KHC, and FHA loans all offer $0 Down Home Loan Options-Text or Call for your free application 502-905-3708- Email Kentuckyloan@gmail.com
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What are the main reasons for a mortgage loan denial on a Kentucky USDA Rural Housing Loan
Any of the following items may result in a Kentucky Rural Housing USDA loan denial:
-A credit score below 640 (middle score) of any applicant-They will do lower scores but it is hard to find lenders that will go lower than 640 because USDA uses an automated approval software engine that will validate your approval or mark it ineligible. If it comes back from GUS, (Guarantee Underwriting System), you cannot get a loan approval. If it comes back refer eligible, then this will call for additional conditions like verification of rent for last 12 months and lower debt to income thresholds than you could get on an Automated Approval.
-Chapter 13 Bankruptcy discharged for less than 1 year
- Chapter 7 Bankruptcy discharged for less than 3 years
- Foreclosure less than 3 years old (based on Sheriff Sale date)
Down payment of at least 20%
If you have more than 20% of the purchase price in the bank (this does not include retirement accounts like a 401k)
Appraisal Issues/Income Producing Farm income
- Property you want to buy produces income (Farm income, rental property)
- Unpaid Tax Lien or delinquent Government debt (must be paid to get loan)
- Unpaid Court Judgment outstanding within the last 12 months(must be paid to get approval because it will affect title. You can payoff and still get a loan appoval. If you payoff the judgement at closing, the USDA underwriter will want to know how you obtained the funds to payoff. You cannot go get another loan to payoff.
High Debt to Income Ratios
Housing only debt ratio over 35% of your income (just the cost of the house) -Total debt ratio not to exceed 45% of your income (house + cars + credit cards + student loans, etc)