�Kentucky Rural housing and Kentucky USDAhome loan Frequently Asked Questions
Kentucky RHS Home Loan Frequently Asked Questions
1. For RHS, the borrower is only permitted to own one residence. What if a borrower owns land also? If a borrower owns land, they must document that the land does not contain a residence by using the tax assessment.
2. If a borrower assets allow them to qualify for conventional financing, they cannot qualify for RHS. Are retirement assets counted towards the borrower’s 20% down? No.
3. Do we offer the Kentucky Direct or Guaranteed RHS program? Kentucky Guaranteed RHS program only .
4. When using the Income Compliance calculator, do you gross up income prior to entering? No.
5. How long must a borrower have a second job before he can use the income to assist in qualification? He must have the job for two years.
6. Typically, if there is less than six months left on a loan, the underwriter can remove the debt from the DTI calculation. Is this always the case? It is the underwriter’s discretion. If there is a debt with a significant payment and the underwriter deems it necessary to keep that debt in the calculation, they may.
7. Is a termite inspection required for all loans? No, a termite waiver is required in lieu of a termite waiver. If the property is new construction, a soil poison treatment is required.
8. How do you calculate the payment for a student loan? If the payment is not recorded on the credit bureau, use 1% of the loan balance.
9. How do you calculate the payment for revolving accounts? If the payment is not recorded on the credit bureau, use 5% of the balance.
10. Is there an acreage limit? No, but the site value cannot exceed 30% of the appraised value.
11. What is the maximum origination for the program? Maximum origination is the same for RHS as all other prog
Joel Lobb NMLS#57916Senior Home Loan Officer502-905-3708 cell502-813-2795 fax
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