Kentucky Housing Loans and Down payment Assistance for 2013


Kentucky Housing Loans and Down payment Assistance for 2013

 

 

To successfully originate KHC mortgages, begin with prequalified applicants and properties that meet FHA, VA, RHS, or Conventional guidelines. They must be purchasing or refinancing a single-family, one-unit, owner-occupied property, in Kentucky. If so:

1. Make sure the property or refinance is below $243,000.
2. Make sure they meet KHC’s simple credit overlays:
• 640 credit score for FHA, VA, and RHS.
• 680 credit score for Conventional.
• Max ratio caps of 40% / 45%.
• AUS Approval required, except on RHS.

3. Check the income limits in the MRB and Secondary Market Program Guides, on pages 9 and 10, respectively, to see if household income is below threshold. If they are over MRB income limits, select the Secondary Market funding source. Details of each source are outlined in the table below.
MRB
Secondary Market
• Household’s gross annual income
• First time home buyers in non-targeted counties
• All home buyers in targeted counties

4. Does the borrower require down payment and closing costs assistance with their FHA, VA, or RHS first mortgage?

 

Down payment Assistance Program (DAP)
Quick Reference Card
Only home buyers approved for a KHC first mortgage are eligible for DAP. All DAPs take a lien position and require input into LP/DU as subordinate financing. DAP funds can never be used to pay for repairs. Once the loan type and KHC first mortgage funding source is determined, determine for which of the three KHC DAPs the borrower is eligible.
1. Make sure the property is existing (previously occupied) and below the purchase price limit of $195,700. If not, HOME DAP is eliminated. Proceed to question 3.
2. To ensure HOME DAP eligibility, ensure the following requirements are met:
• Household income below the HOME DAP income limits, available in the MRB Program Guide, page 10.
• Borrower requires a minimum of $1,000 assistance, up to a max of $4,500, based on need. Must use their own liquid funds in excess of two months’ PITI before they look to HOME DAP.
• Must go maximum allowed LTV on the first mortgage.
• Property must pass HQS inspection (Lead Paint).
• Cannot be used in conjunction with REO properties or FHA 203K streamline program.
If all of these are met, you must determine how much HOME DAP can be accessed. This is total cash needed to close, minus seller concessions, minus borrower funds in excess of two months’ PITI. Whatever remains, rounded to the nearest $100, is the HOME DAP loan amount.
3. Does the borrower or property meet one of the three Neighborhood DAP qualifiers?
• Is the property being purchased as an REO, foreclosure, bank-owned, or short sale property?
• Has the property been marketed for six months or more?
• Has the borrower experienced a foreclosure, short sale, or deed-in-lieu in the past and now credit qualifies?
If yes to any of these, the borrower qualifies for the $10,000 Neighborhood DAP. Funds can be used toward the down payment or for closing costs and prepaids. Loan is amortized over 30 years at 1 percent interest rate. The borrower must qualify with second mortgage payment. If not, proceed to Regular DAP in question 4.

KHC’s First Mortgage Loan Products
Federal Housing Administration (FHA)
•Minimum 640 credit score required.
•Financing to 96.50% of lesser of sales price or appraised value.
•All KHC Down payment Assistance Programs (DAP) and other KHC-approved secondary financing may be used.
•Maximum 6% seller-paid items.
•Maximum ratios of 40/45 with AUS approval.
•FHA’s Appraiser Independence rules apply. (see page 4)
•All borrowers must be scored by total and receive approve/eligible or accept/accept.
•Lender must follow the FHA maximum mortgage limits for particular area–see
https://entp.hud.gov/idapp/html/hicostlook.cfm.
Upfront and Annual Mortgage Insurance Premiums
30-Year Loan Term
LTV less than or equal to 95% 1.75% annual 1.20 monthly
LTV greater than 95% 1.75% annual 1.25 monthly
Conventional
• Minimum 680 credit score required.
• Maximum loan-to-value (LTV) ratio is 80%.
• Maximum ratios 40/45 with AUS approval.
• No down payment assistance products may be used. Borrower must meet down payment requirements with their own
funds or a gift.
Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as
subordinate financing in DU/LP.
• Pre-purchase education required as per AUS findings.
• Not available for manufactured housing.
• Appraiser Independence required (see page 4).
• KHC does not presently have a product for 81% LTV or greater.
Rural Housing Services (RHS)
• Minimum 640 credit score required.
• Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.40% annual fee.
• All KHC DAP and other KHC-approved secondary financing may be used.
• No maximum on seller-paid items.
• Ratio requirements and guarantee fee per agency guidelines.
• KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with
approval, expanded ratios up to 40/45.
Veteran’s Administration (VA)
•Minimum 640 credit score required.
•Financing to 100% of the lesser of the appraised value or sale price.
•All KHC DAP programs and other KHC-approved secondary financing may be used.
•Maximum 4% seller-paid items.
•Ratio requirements and funding fee per agency guidelines
4. Borrower is eligible for Regular DAP up to $6,000 in $100 increments with a minimum $500 loan amount. Regular DAP is amortized over ten years at 6 percent. Must go to maximum LTV allowed on first mortgage amount. Borrower must qualify with second mortgage payment.
Please Note: Quote KHC interest rate with DAP. GFE required on all DAPs. TIL only required on the Neighborhood and Regular DAP. Both the DAP GFE and TIL can be found on KHC’s Web site, http://www.kyhousing.org, under Lenders/Realtors, Loan Connection Services

 

KHC’s First Mortgage Loan Products
Federal Housing Administration (FHA)
•Minimum 640 credit score required.
•Financing to 96.50% of lesser of sales price or appraised value.
•All KHC Down payment Assistance Programs (DAP) and other KHC-approved secondary financing may be used.
•Maximum 6% seller-paid items.
•Maximum ratios of 40/45 with AUS approval.
•FHA’s Appraiser Independence rules apply. (see page 4)
•All borrowers must be scored by total and receive approve/eligible or accept/accept.
•Lender must follow the FHA maximum mortgage limits for particular area–see
https://entp.hud.gov/idapp/html/hicostlook.cfm.
Upfront and Annual Mortgage Insurance Premiums
30-Year Loan Term
LTV less than or equal to 95% 1.75% annual 1.20 monthly
LTV greater than 95% 1.75% annual 1.25 monthly
Conventional
• Minimum 680 credit score required.
• Maximum loan-to-value (LTV) ratio is 80%.
• Maximum ratios 40/45 with AUS approval.
• No down payment assistance products may be used. Borrower must meet down payment requirements with their own
funds or a gift.
• Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as
subordinate financing in DU/LP.
• Pre-purchase education required as per AUS findings.
• Not available for manufactured housing.
• Appraiser Independence required (see page 4).
• KHC does not presently have a product for 81% LTV or greater.
Rural Housing Services (RHS)
• Minimum 640 credit score required.
• Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.40% annual fee.
• All KHC DAP and other KHC-approved secondary financing may be used.
• No maximum on seller-paid items.
• Ratio requirements and guarantee fee per agency guidelines.
• KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with
approval, expanded ratios up to 40/45.
Veteran’s Administration (VA)
•Minimum 640 credit score required.
•Financing to 100% of the lesser of the appraised value or sale price.
•All KHC DAP programs and other KHC-approved secondary financing may be used.
•Maximum 4% seller-paid items.
•Ratio requirements and funding fee per agency guidelines

Revenue Bond Programs – KHC Program Guide – February 1, 2013 Page – 10 of 10
2012 GROSS ANNUAL HOUSEHOLD INCOME LIMITS
FOR HOME DAP
Effective February 21, 2012
Purchase Price Limit for HOME DAP – $195,700
Person(s) (1) (2) (3) (4 or more)
Adair, Bath, Bell, Breathitt, Carter, Casey, Clay, Clinton, Cumberland, Elliott, Estill, Floyd,
Fulton, Harlan, Hart, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Leslie, Letcher,
Lewis, Magoffin, Martin, McCreary, Menifee, Metcalfe, Monroe, Morgan, Owsley, Perry,
Pike, Powell, Pulaski, Rockcastle, Russell, Wayne, Whitley, and Wolfe
24,450 27,950 31,450 34,900
Bullitt, Henderson, Henry, Jefferson, Oldham, Spencer, Trimble, and Webster 35,750 40,850 45,950 51,050
Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford 37,600 43,000 48,350 53,700
Boone, Bracken, Campbell, Gallatin, Kenton, and Pendleton 39,950 45,650 51,350 57,050
Other Counties
Person(s) (1) (2) (3) (4 or more) Person(s) (1) (2) (3) (4 or more)
Allen 26,150 29,850 33,600 37,300 Larue 32,000 36,600 41,150 45,700
Anderson 35,950 41,100 46,250 51,350 Laurel 25,850 29,550 33,250 36,900
Ballard 28,200 32,200 36,250 40,250 Lincoln 24,600 28,100 31,600 35,100
Barren 27,950 31,950 35,950 39,900 Livingston 27,900 31,900 35,900 39,850
Boyd 28,200 32,200 36,250 40,250 Logan 28,700 32,800 36,900 40,950
Boyle 29,350 33,550 37,750 41,900 Lyon 27,400 31,300 35,200 39,100
Breckinridge 27,100 31,000 34,850 38,700 Madison 31,150 35,600 40,050 44,500
Butler 24,850 28,400 31,950 35,500 Marion 28,500 32,550 36,600 40,650
Caldwell 28,150 32,150 36,150 40,150 Marshall 29,350 33,550 37,750 41,900
Calloway 31,150 35,600 40,050 44,500 Mason 26,700 30,500 34,300 38,100
Carlisle 24,750 28,250 31,800 35,300 McCracken 32,100 36,700 41,300 45,850
Carroll 28,850 33,000 37,100 41,200 McLean 32,100 36,700 41,300 45,850
Christian 30,350 34,700 39,050 43,350 Meade 28,600 32,650 36,750 40,800
Crittenden 27,400 31,300 35,200 39,100 Mercer 31,400 35,850 40,350 44,800
Daviess 32,100 36,700 41,300 45,850 Montgomery 29,050 33,200 37,350 41,500
Edmonson 32,150 36,750 41,350 45,900 Muhlenberg 25,150 28,750 32,350 35,900
Fleming 26,050 29,800 33,500 37,200 Nelson 32,150 36,750 41,350 45,900
Franklin 37,450 42,800 48,150 53,450 Nicholas 24,850 28,400 31,950 35,500
Garrard 27,650 31,600 35,550 39,450 Ohio 25,450 29,050 32,700 36,300
Grant 30,050 34,350 38,650 42,900 Owen 31,050 35,450 39,900 44,300
Graves 26,550 30,350 34,150 37,900 Robertson 28,350 32,400 36,450 40,500
Grayson 25,100 28,700 32,300 35,850 Rowan 25,200 28,800 32,400 36,000
Green 26,250 30,000 33,750 37,450 Shelby 39,850 45,550 51,250 56,900
Greenup 28,200 32,200 36,250 40,250 Simpson 28,950 33,050 37,200 41,300
Hancock 32,100 36,700 41,300 45,850 Taylor 25,900 29,600 33,300 36,950
Hardin 32,000 36,600 41,150 45,700 Todd 27,100 31,000 34,850 38,700
Harrison 29,800 34,050 38,300 42,550 Trigg 30,350 34,700 39,050 43,350
Hickman 29,650 33,850 38,100 42,300 Union 30,800 35,200 39,600 44,000
Hopkins 29,050 33,200 37,350 41,450 Warren 32,150 36,750 41,350 45,900
Washington 28,600 32,650 36,750 40,800

 

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Author: Louisville Kentucky Mortgage

I have helped over 589 Kentucky families buy or refinance their home over the last 18 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process. I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues. You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process. Give us a try or let us compare your options on your next mortgage transaction. Call me locally at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications. Email me at kentuckyloan@gmail.com with your questions I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance. This website is not an government agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. NMLS# 57916 http://www.nmlsconsumeraccess.org/ Joel Lobb Senior Loan Officer (NMLS#57916) American Mortgage Solutions, Inc. 800 Stone Creek Pkwy, Ste 7, Louisville, KY 40223 phone: (502) 905-3708 Fax: (502) 327-9119 kentuckyloan@gmail.com Company ID #1364 | MB73346 http://mylouisvillekentuckymortgage.com Equal Housing Lender

5 thoughts on “Kentucky Housing Loans and Down payment Assistance for 2013”

  1. You need to have a borrower’s proof that comes with the name of the employer, his phone number and address. Yourpaycheck stub can be a great borrower’s proof. Another crucial thing to remember here is that fast cash loans are illegal in some states and therefore you need to check out the state norms beforehand.

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