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: Credit Score -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. Bankruptcy -Chapter 13 Bankruptcy discharged for less than 1 year - Chapter 7 Bankruptcy discharged for less than 3 years Foreclosures - Foreclosure less than 3 years old (based on Sheriff Sale date) Down payment of at least 20% If y ou have...