Income Requirements for A Kentucky Rural Housing Loan Approval.

Effective 1 October 2016, offers the USDA Streamline Assist product. Take a look at let us know how we can use this product to benefit you and your borrowers.

Min 600 FICO
Subsidy recapture must be paid with other funds or subordinated to the new guaranteed loan
Max loan amount may include P&I balance of existing loan, eligible loan closing costs, funds necessary to establish tax and insurance escrow account and upfront guarantee fee
Borrower must receive a tangible net benefit to refinance under this option
Existing loan must have closed 12 months prior to request for refi
Borrower not required to meet all credit requirements as outlined in Chap. 10 of USDA Handbook. However, existing mortgage must be paid as agreed for the 12 months prior to application for a streamlined-assist refi
Borrowers may be added but not removed from current loan
Borrower not required to meet repayment provisions as oulined in Chap. 9 of USDA Handbook
GUS may not be utilized and all loans must be manually underwritten
Streamline-assist Refi: new appraisal not required for existing guaranteed loan borrowers

Kentucky USDA Rural Housing Mortgage Loans


Income Eligibility:

Income from all occupants of the household must be included as qualifying income regardless of whether or not they are obligated on the note. Income eligibility can be determined from the following USDA web site. Final eligibility must still be determined by USDA

When a borrower has a rental property it must also be included in the eligibility calculation.

  • Positive net rental income is included in the eligibility income for the household
  • Negative net rental income is counted as zero for eligibility income

Qualifying Income:

The underwriter is responsible for calculating income and approving the loan. Applicants with commission only position’s, or varying amounts of overtime and bonus income may not exhibit enough stable monthly income to qualify. Typically, income of less than 24 months duration should not be included in qualifying income.

  • Salaried Borrowers
    • Pay-stubs covering most recent 30 day period, W-2’s for the previous two years…

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