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A Kentucky USDA loan is a loan product that is offered through the U.S. Department of Agriculture. There are two types, which are the USDA guaranteed and the USDA direct loan. The loan program was designed for low to moderate-income families in rural areas. It is the only 100% no money down loan offered for non-veterans.
Any person or family is eligible to participate in the Kentucky USDA home loan program as long as they meet the requirements and the property is in an eligible area.
No, you do not need a down payment with the Kentucky USDA loan. The USDA home loan program is a 100% no money down loan. Homebuyers who wish to put money down can do so, but it is not required.
Residents of Kentucky who wish to do a USDA direct loan will work directly with their local USDA office to complete the transaction. The USDA guaranteed loan is when Kentucky residents work with a private lender or local bank to complete the transaction.
No, you do not have to be a first-time homebuyer in order to obtain a Kentucky USDA mortgage. Current homeowners are eligible to participate in the program. If a homebuyer owns a home, they must sell that home in most cases prior to closing on the new loan. It is not uncommon to have a closing the prior or the day of the closing of the new home on the old home.
To determine a property's Kentucky USDA eligibility, a homebuyer can use the USDA eligibility map to do a quick search. The map allows users to enter a specific address, and it will indicate if that property qualifies. The USDA eligibility map is also an excellent tool to use when a property has not yet been selected. The map is color-coded to indicated which areas qualify and which areas do not.
The Kentucky USDA home loan does not have mortgage insurance but has something that is very similar that is called a guarantee fee. The guarantee fee is found in two places on a USDA loan. There is an upfront that is 1% of the loan amount. This fee is actually added to the loan, so the impact on the overall monthly payment is minimal. There is also a yearly guarantee fee. This fee is paid out on a monthly basis.
The Kentucky rural development loan is specifically designed for the homebuyer's primary residence. Investment properties are not allowed.
Yes, homes with swimming pools are eligible for the USDA home loan. The pool must be fully functional and in working order with no safety issues.
USDA interest rates will vary from lender to lender, so it is always a good practice to speak with your loan officer on this matter. As a general rule of thumb, USDA interest rates are usually close to FHA interest rates. The competitive environment of mortgage lending keeps most lenders close to each other on the rate.
A Kentucky USDA direct loan is a loan where the homebuyer works directly with their local USDA office to obtain a loan. The Kentucky USDA guaranteed loan is when a home buyer works with a bank or a private lender to obtain a USDA home loan.
Determining a property's USDA eligibility in Kentucky is very easy to do. The USDA eligibility map is straightforward to use. Homebuyers can enter a specific address, and it will indicate if the property qualifies or not for the USDA loan. If the homebuyer does not have a property picked out yet, the map is still a useful tool. They can search o see what areas qualify. The map is colored coded to identify what areas are eligible and what areas are not.
The Kentucky USDA home loan does not have mortgage insurance but has something that is very similar that is called a guarantee fee. The guarantee fee is found in two places on a USDA loan. There is an upfront that is 1% of the loan amount. This fee is actually added to the loan, so the impact on the overall monthly payment is minimal. There is also a yearly guarantee fee. This fee is paid out on a monthly basis.
The Kentucky rural development loan is specifically designed for the homebuyer's primary residence. Investment properties are not allowed.
Yes, homes with swimming pools are eligible for the USDA home loan. The pool must be fully functional and in working order with no safety issues.
USDA interest rates will vary from lender to lender, so it is always a good practice to speak with your loan officer on this matter. As a general rule of thumb, USDA interest rates are usually close to FHA interest rates. The competitive environment of mortgage lending keeps most lenders close to each other on the rate.
A Kentucky USDA direct loan is a loan where the homebuyer works directly with their local USDA office to obtain a loan. The Kentucky USDA guaranteed loan is when a home buyer works with a bank or a private lender to obtain a USDA home loan.
Determining a property's USDA eligibility in Kentucky is very easy to do. The USDA eligibility map is very easy to use. Homebuyers can enter a specific address, and it will indicate if the property qualifies or not for the USDA loan. If the homebuyer does not have a property picked out yet, the map is still a good tool. They can search o see what areas qualify. The map is colored coded to identify what areas are eligible and what areas are not.
The Kentucky rural development loan does not make a termite policy a requirement. A best practice is to with a local pest control company to get recommendations. While it is not required, it is usually recommended that a policy is in place.
One of the many amazing features of the USDA mortgage is the one that allows the seller to pay up to 6% of the buyers closing costs. This also includes the pre-paids. In most cases, this is more than enough to cover all costs, which will often be enough to cover all the homebuyer's costs, and the buyer will not have come to the closing table with any money out of pocket.
Yes, USDA refinances are available. The rule is in order to complete a USDA refinance; the current home loan must be a USDA rural development loan. A non-USDA loan is not eligible to be refinanced into a USDA loan. There are several different types of refinances, so a best practice is to speak with your loan officer to get a better understanding of which one will be most suited for you.
Yes, there is no limit on the amount of acreage with the USDA loan Kentucky. The caution is when the value of the overall transaction becomes more tilted towards land and not the home, there could be an issue. The rule of thumb is 30%. Meaning 30% of the transaction's overall value can be land, but anything beyond that could be a problem.
Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.