Credit Scores and the Kentucky USDA Rural Development Loan Program

Changes to RHS Guarantee and Annual Fee
Effective on October 1, 2012, RHS will revise the Up-Front Guarantee Fee and Annual Fee structure as follows:

Up-Front Guarantee Fee Through
Sept. 30, 2012 Effective
Oct. 1, 2012
Purchase Transactions (no change) 2% 2%
Refinance Transactions 1.5% 2%

Annual Fee Through
Sept. 30, 2012 Effective
Oct. 1, 2012
Purchase Transactions .30% .40%
Refinance Transactions .30% .40%

Loan guarantee requests submitted to RHS by September 30, 2012, in which a conditional commitment has not been issued, will be subject to the new, October 1, fee structure. Lenders are encouraged to plan for the changes because, as mentioned previously, some RHS offices are experiencing extreme backlogs in loan guarantee delivery.

Louisville Kentucky Mortgage Loans

Kentucky USDA credit score and mortgage requirements for 2012

Credit Scores and the Kentucky USDA Rural Development Loan Program

The Kentucky USDA Rural Development Loan Program is by far the most credit score friendly loan program currently available. While USDA is willing to work with scores lower than 640 most lenders won’t. Thus, pragmatically the minimum credit score required by USDA is 640.
For Kentucky homebuyers with a minimum credit score of 640 lenders may streamline the credit approval process normally required as part of the underwriting process. This means that a borrower:
With a lack of credit “depth” will not have to document non-traditional credit items such as utility or insurance payments
A negative past credit history may allow the Underwriter to not request letters of explanation for the cause of the past challenges
Collection accounts can remain open provided the Underwriter believes it unlikely that the account will…

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4 thoughts on “Credit Scores and the Kentucky USDA Rural Development Loan Program

  1. Pingback: Very first time residence consumer, in which to go online for assist?

  2. Pingback: Your Questions About Credit Score Range | Credit & Debt

  3. Pingback: Kentucky USDA Rural Development Funding Update « Louisville Kentucky Mortgage Loans

  4. Pingback: Kentucky Single Family Housing Guaranteed Loan Program | Kentucky USDA RHS Rural Housing Mortgage Loans

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