Tuesday, December 17, 2013

Kentucky Rural Housing USDA Program Guidelines for 2014

The Kentucky Rural Housing USDA program  purpose is to help borrowers that make less than a specified amount of income per household a year get into a house in a rural area that does not have access to at least 20% down payment. If you readily available access to a down payment of 20%, you cannot use the Kentucky USDA Rural Development Program.

0% Down?

One of the biggest perks of the KY Rural Housing USDA loans is that they can be 100% financed – that means a $0 down payment. This is hugely beneficial to low-income borrowers that the loan is intended to help. While it does require mortgage insurance, it lowers the closing costs for borrowers to get into the home which makes home ownership more attainable for those who qualify.

More Information...

There are two types of USDA loans in Kentucky:
  1. Guaranteed – Lenders fund the loan and the loan is guaranteed by the RHS if the loan goes into foreclosure. These loans are offered at 30 years.
  2. Direct Loans – The loan is funded directly by the government. They are for borrowers that have no other ways to obtain a source of credit. These loans are offered at 33 and 38 years.
I work with guaranteed loans, which means I can offer USDA loans for 30 years. Either way, both of these USDA loans have the following requirements:
  • Be secured by property that the RHS has designated as a “rural area”
  • Be secured by a dwelling that is “modest”
  • Income must be no higher than 115% of the rural area median income
  • Have a fixed interest rate
  • Be offered to a borrower who can demonstrate repayment ability
There are a few guidelines that all USDA loans must follow. One of them is that they must be located in a “rural area.” At first rural area had a definite number it has changed and is a little more complex.

 Factors include looking at population levels and the area the house is located outside of a metropolitan statistical area, and the rural character of the area that the house is located in. There is a website you can look at that will give you a map of where houses are in locations that are eligible for USDA.

 If you think the Kentucky Rural Development  USDA loan may be right for you, I encourage you to do your research on this particular type if loan. I am always here to help too!

This website is not acting on behalf of or at the direction of HUD/FHA, USDA, KHC, VA or the Federal Government.

Joel Lobb
Senior  Loan Officer

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346