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Louisville Kentucky Mortgage Lender

Louisville Kentucky Mortgage Lender

By Joel Lobb | Mortgage Broker
or Lender in Louisville, KY

Kentucky USDA Loans | Rural Housing Loans Kentucky Zero Down

Kentucky USDA Loans | Rural Housing Loans Kentucky Zero Down



Kentucky USDA Mortgage Loans




Kentucky Mortgage USDA Loan Requirements

What are the Kentucky USDA Mortgage Loan Requirements?

To decide if you qualify for an USDA Mortgage Loan, we will look at:






•Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.

•Your credit history (this is important, but USDA’s credit standards are flexible). A FICO score of 640 or above is required for all loans

•Your overall pattern rather than to individual problems you may have had.

To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 640 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.



Can I get an USDA Mortgage Loan after bankruptcy?

Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentucky USDA loan application.



What are the USDA Down Payment Requirements?

USDA Mortgages have no down payment requirement. Other loan programs don’t allow this.



What types of property are eligible?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.



What is the maximum amount that I can borrow?

The maximum amount for an Kentucky USDA Mortgage Loans are determined by:



Maximum loan amount: The is no set maximum loan amount allowed for an USDA Mortgage. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Loan income limits for your area can be found at here.



Maximum financing: The maximum USDA Mortgage amount will be 100% of the appraised value of the home.



What kinds of loans does USDA offer?







Fixed rate loans - All USDA loans are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.



What is Considered a Rural Area by the USDA?

Rural areas include open country and places with population of 10,000 or less and—under certain conditions—towns and cities. There is an automated rural area eligibility calculator at:http://eligibility.sc.egov.usda.gov.



Kentucky USDA Loans

What are USDA Home Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, ENG Lending’s USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and no monthly mortgage insurance.



What Types of Loans does USDA offer in Kentucky?

Currently, there are two kinds of USDA Home Loans available in Kentucky for single family households:



USDA Guaranteed Rural Housing Loans

USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loanin Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.



USDA Direct Rural Housing Loans

USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.



What factors determine if I am eligible for a USDA Loan in Kentucky?

To be eligible for A USDA Rural Loan in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through ENG Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.



What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:



Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.



Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).



How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).



What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

Additional offers from other lenders.



Kentucky USDA Loan Adjusted Maximum Income Limits by County

Updated 05/01/2009



County Name 1-4 Person Households

(Guaranteed Loans) 5-8 Person Households

(Guaranteed Loans)

NON-METRO ADAIR $73,600 $97,150

NON-METRO ALLEN $73,600 $97,150

FRANKFORT, KY (MICRO) ANDERSON $73,600 $97,150

PADUCAH, KY-IL (MICRO) BALLARD $73,600 $97,150

GLASGOW, KY (MICRO) BARREN $73,600 $97,150

MOUNT STERLING, KY (MICRO) BATH $73,600 $97,150

MIDDLESBOROUGH, KY (MICRO) BELL $73,600 $97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) BOONE $73,600 $97,150

LEXINGTON-FAYETTE, KY (MSA) BOURBON $73,600 $97,150

HUNTINGTON-ASHLAND, WV-KY-OH (MSA) BOYD $73,600 $97,150

DANVILLE, KY (MICRO) BOYLE $73,600 $97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) BRACKEN $73,600 $97,150

NON-METRO BREATHITT $73,600 $97,150

NON-METRO BRECKINRIDGE $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) BULLITT $73,600 $97,150

NON-METRO BUTLER $73,600 $97,150

NON-METRO CALDWELL $73,600 $97,150

MURRAY, KY (MICRO) CALLOWAY $73,600 $97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) CAMPBELL $73,600 $97,150

NON-METRO CARLISLE $73,600 $97,150

NON-METRO CARROLL $73,600 $97,150

NON-METRO CARTER $73,600 $97,150

NON-METRO CASEY $73,600 $97,150

CLARKSVILLE, TN-KY (MSA) CHRISTIAN $73,600 $97,150

LEXINGTON-FAYETTE, KY (MSA) CLARK $73,600 $97,150

NON-METRO CLAY $73,600 $97,150

NON-METRO CLINTON $73,600 $97,150

NON-METRO CRITTENDEN $73,600 $97,150

NON-METRO CUMBERLAND $73,600 $97,150

OWENSBORO, KY (MSA) DAVIESS $73,600 $97,150

BOWLING GREEN, KY (MSA) EDMONSON $73,600 $97,150

NON-METRO ELLIOTT $73,600 $97,150

NON-METRO ESTILL $73,600 $97,150

LEXINGTON-FAYETTE, KY (MSA) FAYETTE $73,600 $97,150

NON-METRO FLEMING $73,600 $97,150

NON-METRO FLOYD $73,600 $97,150

FRANKFORT, KY (MICRO) FRANKLIN $73,600 $97,150

UNION CITY, TN-KY (MICRO) FULTON $73,600 $97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) GALLATIN $73,600 $97,150

NON-METRO GARRARD $73,600 $97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) GRANT $73,600 $97,150

MAYFIELD, KY (MICRO) GRAVES $73,600 $97,150

NON-METRO GRAYSON $73,600 $97,150

NON-METRO GREEN $73,600 $97,150

HUNTINGTON-ASHLAND, WV-KY-OH (MSA) GREENUP $73,600 $97,150

OWENSBORO, KY (MSA) HANCOCK $73,600 $97,150

ELIZABETHTOWN, KY (MSA) HARDIN $73,600 $97,150

NON-METRO HARLAN $73,600 $97,150

NON-METRO HARRISON $73,600 $97,150

NON-METRO HART $73,600 $97,150

EVANSVILLE, IN-KY (MSA) HENDERSON $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) HENRY $73,600 $97,150

NON-METRO HICKMAN $73,600 $97,150

MADISONVILLE, KY (MICRO) HOPKINS $73,600 $97,150

NON-METRO JACKSON $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) JEFFERSON $73,600 $97,150

LEXINGTON-FAYETTE, KY (MSA) JESSAMINE $73,600 $97,150

NON-METRO JOHNSON $73,600 $97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) KENTON $73,600 $97,150

NON-METRO KNOTT $73,600 $97,150

NON-METRO KNOX $73,600 $97,150

ELIZABETHTOWN, KY (MSA) LARUE $73,600 $97,150

LONDON, KY (MICRO) LAUREL $73,600 $97,150

NON-METRO LAWRENCE $73,600 $97,150

NON-METRO LEE $73,600 $97,150

NON-METRO LESLIE $73,600 $97,150

NON-METRO LETCHER $73,600 $97,150

MAYSVILLE, KY (MICRO) LEWIS $73,600 $97,150

DANVILLE, KY (MICRO) LINCOLN $73,600 $97,150

PADUCAH, KY-IL (MICRO) LIVINGSTON $73,600 $97,150

NON-METRO LOGAN $73,600 $97,150

NON-METRO LYON $73,600 $97,150

RICHMOND-BEREA, KY (MICRO) MADISON $73,600 $97,150

NON-METRO MAGOFFIN $73,600 $97,150

NON-METRO MARION $73,600 $97,150

NON-METRO MARSHALL $73,600 $97,150

NON-METRO MARTIN $73,600 $97,150

MAYSVILLE, KY (MICRO) MASON $73,600 $97,150

PADUCAH, KY-IL (MICRO) MCCRACKEN $73,600 $97,150

NON-METRO MCCREARY $73,600 $97,150

OWENSBORO, KY (MSA) MCLEAN $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) MEADE $73,600 $97,150

MOUNT STERLING, KY (MICRO) MENIFEE $73,600 $97,150

NON-METRO MERCER $73,600 $97,150

GLASGOW, KY (MICRO) METCALFE $73,600 $97,150

NON-METRO MONROE $73,600 $97,150

MOUNT STERLING, KY (MICRO) MONTGOMERY $73,600 $97,150

NON-METRO MORGAN $73,600 $97,150

CENTRAL CITY, KY (MICRO) MUHLENBERG $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) NELSON $73,600 $97,150

NON-METRO NICHOLAS $73,600 $97,150

NON-METRO OHIO $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) OLDHAM $73,600 $97,150

NON-METRO OWEN $73,600 $97,150

NON-METRO OWSLEY $73,600 $97,150

CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) PENDLETON $73,600 $97,150

NON-METRO PERRY $73,600 $97,150

NON-METRO PIKE $73,600 $97,150

NON-METRO POWELL $73,600 $97,150

SOMERSET, KY (MICRO) PULASKI $73,600 $97,150

NON-METRO ROBERTSON $73,600 $97,150

RICHMOND-BEREA, KY (MICRO) ROCKCASTLE $73,600 $97,150

NON-METRO ROWAN $73,600 $97,150

NON-METRO RUSSELL $73,600 $97,150

LEXINGTON-FAYETTE, KY (MSA) SCOTT $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) SHELBY $73,600 $97,150

NON-METRO SIMPSON $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) SPENCER $73,600 $97,150

CAMPBELLSVILLE, KY (MICRO) TAYLOR $73,600 $97,150

NON-METRO TODD $73,600 $97,150

CLARKSVILLE, TN-KY (MSA) TRIGG $73,600 $97,150

LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) TRIMBLE $73,600 $97,150

NON-METRO UNION $73,600 $97,150

BOWLING GREEN, KY (MSA) WARREN $73,600 $97,150

NON-METRO WASHINGTON $73,600 $97,150

NON-METRO WAYNE $73,600 $97,150

EVANSVILLE, IN-KY (MSA) WEBSTER $73,600 $97,150

CORBIN, KY (MICRO) WHITLEY $73,600 $97,150

NON-METRO WOLFE $73,600 $97,150

LEXINGTON-FAYETTE, KY (MSA) WOODFORD $73,600 $97,150




We lend in all of Kentucky’s top cities:



Louisville Kentucky USDA Loans Lexington Kentucky USDA Loans Fayette Kentucky USDA Loans

Owensboro Kentucky USDA Loans Bowling Green Kentucky USDA Loans Florence Kentucky USDA Loans

Paduca Kentucky USDA Loans Richmond Kentucky

Comments

By Joel Lobb,  Tue Oct 1 2013, 12:35
Update on Rural Development Operations


Due to a lapse in appropriations for Rural Development as of October 1, Rural Development has initiated the process of orderly shutdown of nonessential operations. You can view USDA’s plans for a lapse in appropriations at http://www.whitehouse.gov/omb/contingency-plans .

We understand the uncertainty that the current circumstances present for Americans that USDA serves every day, as well as our many partners around the country. Effective today, many Rural Development staff will be furloughed pending reinstatement of funding by Congress. These staff will not be available by phone or email, and cannot carry out work for the Agency, until funding is restored.

In Rural Development, this means that many services will be delayed or interrupted. For example, Rural Development will not be able to make any new loans or grants; the only exceptions will be for emergency purposes and to protect the Government’s interest.

We are committed to keeping you as up to date as possible, within the limits of current circumstances.
By Joel Lobb,  Wed Oct 23 2013, 09:13
USDA Funding Suspension


Funding for the Single Family Housing Guaranteed Loan Program will be delayed for a
short period of time for the Fiscal Year 2014. During the temporary lapse of funding,
Rural Development will issue Conditional Commitments “subject to the availability of
commitment authority.”We will NOT be able to close or fund any
USDA loan where the commitment is issued "subject to" until the point that those
funds are available. We have been advised that this process will take approximately 2-3
weeks, and we will notify you once funds are available.

It was previously communicated that eligible areas for USDA would be amended
beginning October 1, 2013. Since the Continuing Appropriations Act 2014 was signed
into law, the current eligible areas will remain unchanged through January 15, 2014
By Joel Lobb,  Sun Jan 19 2014, 15:29
Section 737 of the bill extends the rural definition through the end of the fiscal year, which ends on September 30th, 2014. As a result, all communities that are currently eligible for the USDA loan program will remain eligible through the end of the fiscal year. This continues to provide access to the USDA Rural Development Loan Program for more than 900 communities nationwide.

While this spending bill extends current eligibility through September 30th, Washington is working towards ensuring that many, if not all, current eligible areas remain so for the foreseeable future. The very important Farm Bill will be pushed to be voted on prior to the end of the fiscal year. As a reminder, the language in the Senate’s version of the farm bill would extend the majority of the existing areas through the next census decennial review in 2020

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