Category: FHA
Kentucky FHA Guideline Update
via Kentucky FHA Guideline Update
In “2019 Kentucky FHA Loan Limits”

$10,000 Down payment Assistance Grant for Kentucky First Time Home buyers 2019
Text/call 502-905-3708
kentuckyloan@gmail.com
Customer Testimonials
We just moved here the first of January in 2017 from Ohio to the Louisville, KY area and we found Joel’s website online. He was quick to respond to us and got back the same day on our loan approval. He was very knowledgeable about the local market and kept us up-to date throughout the loan process and was a pleasure to meet at closing. Would recommend his services.
Angela Forsythe
“We were searching online for mortgage companies in Louisville, Ky locally to deal with and found Joel’s website, and it was a godsend. He was great to work with, and delivered on everything he said he would do. I ended up referring my co-worker at UPS, and she was very pleased with his service and rates too. Would definitely vouch for him.” September 2016
Monica Leinhardt
“We contacted Joel back in July 2011 to refinance our Mortgage and he was great to work with. We contacted several lenders locally and online, and most where taking almost 60 days to close a refinance, Joel got it done in 23 days start to finish,I would definitely recommend him. He got us 3.75% with just $900 in closing costs on our FHA Streamline loan.
Kayle Griffin
“Joel is one of the best Mortgage Brokers I have ever worked with in my sixteen years in the real estate and mortgage business.” May 25, 2010
Tim Beck
“Joel has always worked very hard to keep his word and to work out seasonable solutions to difficult problems. He is truly an expert in FHA and other type loans.” September 1, 2010
Nancy Nalley
“I have worked with Joel since 1998. He is a great loan professional.” I refer most of my Louisville, Kentucky area home buyers to him and he always take special care of them. August 23, 2012
Jon ClarK
“Joel Lobb is a real professional in the lending industry, with many years of experience, he is the one to go to for any mortgage lending needs.” August 22, 2011
RICHARD VOLZ , Residential Sales , Remax Foursquare Realty
“When looking to purchase our new home in 2006, I had the pleasure of meeting Joel Lobb. Not only was he personable and easy to reach, he was extremely knowledgable in his field and made sure to find us the best rate and a top notch mortgage company. We were able to complete the process in less than 3 weeks with his expertise. I find Joel to have the utmost high integrity and I recommend him to anyone who say’s they are need of mortgage assistance. He is also fantastic and keeping everyone up to date on the latest in the housing industry through his twitter posts. He provided great results for our family and we still communicate to this day!” August 21, 2010
Stacie Drake
“We first use Joel on our new home purchase in 2007 in St Matthews, Kentucky area and he was great to work with. We have since refinanced our home with him in 2010 when rates got really low and he has always delivered on what he says. I could not imagine using anyone else.”
Melody Glasscock March 2014
Contacted him about buying a home and he was great to work with. I was moving to Louisville Ky to take a new job and he walked me through the entire process. He explained to me all the different options for FHA, VA, USDA mortgage loans and credit score requirements versus Fannie Mae. Since I was a first time home buyer I needed alot of help and guidance. I would definitely recommend him. Fast to respond and available to answer questions that I or my realtor had after hours.
Anderson Johnson June 2018
We moved from Michigan to Northern Kentucky area and we were really impressed. We got a USDA loan no money down and closed in less than 3.5 weeks. We shopped around online with other lenders but Joel was always first to respond and his rates were just a little better than other lenders. He kept us informed through the process along with our realtor and there was absolutely no surprises like we heard from other co-workers and friends that they experienced in their loan process. We have already referred another co-worker to Joel . He’s AWESOME!
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
— 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. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
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Text/call: 502-905-3708
email:kentuckyloan@gmail.com
Credit Scores Needed To Qualify For A Kentucky Mortgage Loan Approval?
via Credit Scores Needed To Qualify For A Kentucky Mortgage Loan Approval?

How to qualify for a Kentucky FHA Home Loan ?

via How to qualify for a Kentucky FHA Home Loan ?
How do I qualify for an FHA loan in Kentucky?
Kentucky FHA loans allow buyers with down payments as little as 3.5% to buy a home, and with many state-sponsored down payment assistance programs like KHC or Kentucky Housing Agency down payment asssitance program of up to $6000 currently to use for your own down payment, Kentuck borrowers using FHA loans can can get the loan with zero money down.
They’re are other down payment assistance programs in KEntucky see below:
KACO Down Payment Assistance Program
Louisville Metro Housing Grant
Covington Kentucky Grants and Northern Kentucky Grants to Buy a Home
Chenoa Fund Down Payment Assistance
Kentucky FHA loans allow up to a higher debt to income ratio than conventional loans which are restricted to 45 to 50% debt to income ratio, which is much lower than most Kentucky FHA loans. That means more Kentucky FHa buyers can qualify for a home loan in case if your co-borrower cannot go on the loan due to credit issues.
Do I qualify for an FHA loan in Kentucky?
They’re are many FHA Kentucky loans requirements, which can be confusing. Some lenders are tougher and will not lend even though FHA will insure the loan. So check around on your FHA loan questions
- Buy a property you will use as your primary residence
- Your credit score must meet the minimum requirements of the FHA and the lender (FHA requires a minimum of 500 for 10% down and 580 for 3.5% down; however, lenders often require higher minimums)
- The property you want to buy has to meet the FHA criteria and get approved
- Must meet debt-to-income requirements
- Clear Cavirs number
- 3 years removed from foreclosure sale date
- 2 years removed from Chapter 7 Bankruptcy
- 1 year in Chapter 13 plan with good pay history and permission from trustee
For a detailed explanation of the requirements, you can read the HUD handbook and check with prospective lenders.
Senior Loan Officer
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). USDA Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation
Senior Loan Officer
FHA’s New Student Loan Rule Could Impact Mortgage Borrowers
via FHA’s New Student Loan Rule Could Impact Mortgage Borrowers
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“Grossing-Up” Non-Taxable Income for a Kentucky Mortgage Loan Approval
“Grossing-Up” Non-Taxable Income
Did you know that you can gross up non-taxable income?
You may gross up non-taxable income for income qualifying purposes. The non-taxable income source being “grossed-up” must be documented.
Non-taxable income refers to types of income not subject to federal taxes, which includes, but is not limited to:
- some portion of Social Security Income;
- some federal government employee Retirement Income;
- Railroad Retirement benefits;
- some state government Retirement Income;
- certain types of disability and Public Assistance payments;
- Child Support;
- military allowances; and
- other income that is documented as being exempt from federal income taxes.
The percentage to be grossed-up varies by agency:
- FHA – the greater of 15% or the appropriate tax rate for the income amount
- USDA – 25%
- VA – 25%
- Freddie Mac – 25% or the amount of the current federal and state income tax withholdings tables
- Fannie Mae – 25% or the amount of the current federal and state income tax withholdings tables
- Jumbo – 25% (see guidelines for specific restrictions)
Now let’s talk about what it takes to qualify for a mortgage.
First off, you’ll need an adequate credit score, along with sufficient income to make the proposed mortgage payment each month.
[What credit score do I need to get a mortgage?]
Generally speaking, a credit score below 620 is considered subprime in the mortgage world and will make qualifying for a mortgage that much more difficult. But it’s still possible depending on lender and loan type.
If you’ve got previous foreclosures on your credit report, things will get even more problematic and you may not even be eligible for a certain period of time.
But if your credit score is above 740 and you’ve got some decent credit history to back it up, you should have access to the lowest mortgage rates and a wide array of loan options.
Credit scores in between should still work, though there might be pricing hits associated, which all else being equal, may bump up your interest rate.
Tip: Lenders want to see a minimum of 3 active credit tradelines with two-year history on each to assess your creditworthiness.
As far as job history goes, it’s important to show the mortgage underwriteryou’ve had (and still have!) a steady job, typically for two years or longer.
This essentially proves that you will continue to receive regular income to make those costly mortgage payments each month for the next 30 years.
If you just graduated and have held a job for a mere two months, don’t expect to qualify for a mortgage unless your new position directly correlates with what you studied in school.
For example, if you went to medical school, and now have a job as a doctor, this might be sufficient to qualify for a mortgage.
But if you were an art history student who has been working as a flight attendant for two months, mortgage lenders probably won’t feel comfortable lending to you just yet. Make sense?
When seeking out your mortgage, you’ll also need to consider the mortgage down payment requirements, which vary depending on the type of loan you’re after.
While there are still some zero down mortgages around, namely VA loans and USDA loans, it certainly helps to set aside some assets so you’ve got something to put into your home purchase.
Obviously, the amount of money needed will also vary based on the purchase price of the home. If you want a more expensive house, expect to put more down in order to qualify.
If we’re talking about a mortgage refinance, you’ll need a certain amount of home equity to qualify for the mortgage, as determined by loan-to-value ratioconstraints.
Use Common Sense and Think Like the Mortgage Lender
- Would you approve YOU for a mortgage?
- If not, address those red flags immediately
- Don’t guess, run the actual numbers with a professional
- And ask plenty of questions if you’re unsure about anything early on
When it comes down it, it’s all pretty much common sense. Do you think you can/should qualify for a mortgage?
Do you have a track record of making on-time payments, carrying large amounts of debt and paying it down, holding a job, and saving money?
Are you ready to make a big commitment? If you were the bank, would you lend you a mortgage…hmm.
[How much house can I afford?]
I would guess that most prospective homeowners could assess the situation beforehand and determine if they should be granted a mortgage.
But without running the numbers, you won’t know for certain. So be sure to do plenty of calculations and speak with a loan officer or two to see where you stand.
They’ll be able to get you a quick answer so no one’s time is wasted.
What You Need to Qualify for a Mortgage
Here’s a general list of what you need to qualify for a mortgage. Keep in mind that qualification requirements vary greatly by lender and loan type.
In some cases, you won’t need all of these things, but it should certainly make life easier to satisfy everything on this list.
- Credit History – minimum of 3 active tradelines with 2-year history on each (credit score minimums vary)
- Job History – at least 2 years on same job or in same line of work (recent graduates with new jobs in certain fields like doctors and lawyers may be exempt)
- Income – verifiable income (tax returns, pay stubs) for the past two years that satisfies debt-to-income ratio limits
- Assets – enough to cover down payment, closing costs, and at least two months of mortgage payments (known as reserves)
- Rental History – proof of clean rental history for the past two years is also important to show the lender you have a propensity to pay on time each month (those currently living with their parents may be excluded from this rule).
If you can’t satisfy these basic requirements, you may want to keep renting, saving, and working on your credit until you can.
Or consider adding a co-signer who is better qualified to apply for a mortgage.
Either way, don’t be discouraged. There are lots of home loan programs and creative options out there to suit all different needs. As noted, one lender may say no while another says YES.
Read more: Tips for first-time homebuyers.
Mortgage Loan Officer
Text/call: 502-905-3708
email: kentuckyloan@gmail.com
Latest FHA shift to mitigate risks may shut out some Kentucky home buyers wanting FHA Loans in 2019
via Latest FHA shift to mitigate risks may shut out some Kentucky home buyers wanting FHA Loans in 2019
Call or Text me at 502-905-3708 with your mortgage questions.
Email Kentuckyloan@gmail.com
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Mortgage Loan Officer
Text/call: 502-905-3708
email: kentuckyloan@gmail.com
Senior Loan Officer
AFR announces homebuyer program to grant 2% of purchase price, 6% of closing costs

American Financial Resources announced its new down payment assistance program that will provide grants for homebuyers, and caters especially to teachers, military members and first responders. The program will grant up to 2% of the purchase price and up to 6% of closing costs.
Source: AFR announces homebuyer program to grant 2% of purchase price, 6% of closing costs
DPA Advantage Program Guidelines
Borrower Eligibility – Must meet one of the following three categories outlined below
- First-time Home Buyer
- Purchasing the subject property
- Will reside in the subject property as their principal residence
- Has no ownership interest in any residential property, for a period three years prior to the date of application.
- The exception will be for an individual who is a homemaker or single parent with no ownership interest in a principal residence, other than a jointly owned property with a former spouse, during the three-year period prior to the date of the application
- Borrower(s) Income
- The borrower, or borrowers if multiple applicants on the loan application, income must be equal or less than 140% of the state or county median income regardless of family size
- To determine the median income use the following web tool to determine median income https://homeready-eligibility.fanniemae.com/homeready/
- Borrower(s) income must be less than the median income * 1.4
- If overtime income is not used to qualify the borrower, then the overtime income doesn’t not count towards the 140%
- The income that the underwriter will use to qualify the borrower is what will be compared to the 140%
- The borrower, or borrowers if multiple applicants on the loan application, income must be equal or less than 140% of the state or county median income regardless of family size
- Current or Retired Employment or Volunteer/Non-Paid Member
- Any borrower on the loan application is a current, retired, or volunteer, which includes:
- First responder (includes police officer, firefighter, public safety officer, paramedic, EMT)
- Educator (includes Sunday school teacher, tutor, day care provider)
- Medical personnel (includes nurse, doctor, phlebotomists, health ambassador, Red Cross worker)
- Civil Servant in Federal, State, or Local Municipality
- Military Personnel
- Any borrower on the loan application is a current, retired, or volunteer, which includes:
- Borrower(s) must complete an 8 hour, first-time Homebuyer education course from a HUD approved Housing Counseling Agency. Click Here for a list of HUD approved counseling agencies
- Online counseling is acceptable. Click Here for an example of one national counseling agency
- Only one borrower must take the first-time Homebuyer education course
- If the borrower has already completed another approved course that will be acceptable provided the course expiration is after the closing on the loan
Down Payment Requirements from Homebuyer
- When factoring in the DPA Advantage grant the borrower is responsible for a down payment equal to 1.50% of the purchase price (FHA 3.50% down payment, minus DPA Advantage Programs 2.00 Grant)
- The borrowers 1.50% down payment responsibility can come from flexible sources such as a family member gift or a loan against a 401k retirement account
Eligible Properties
- Existing homes
- New Construction
- Includes: single-family one-unit residence, townhomes, detached, condominiums, and modular homes
Interest Rate
- The interest rate on the DPA Advantage Program is significantly higher than a standard FHA Loan
Loan Type:
- FHA 203 (b)
- FHA 203 (k) Standard
- FHA 203 (k) Limited
- FHA Repair Escrow
Maximum Purchase Price
- The maximum purchase price is the lower of FHA maximum County loan limit or the conforming loan limit, which is currently $484,350
- Click Here to determine the maximum base loan amount for a FHA Loan, based on the County in which the property is located
Maximum Debt-To-Income (DTI)
- Maximum DTI limit is 48.99
Minimum Credit Score
- FHA: 580
Multiple Property Ownership
- Not permitted
Occupancy Type
- Primary residence only
- Non-occupant co-signers allowed, so long as the primary borrower meets one of the three requirements for the DPA Advantage Program
Repayment Requirements and Affordability Period
- None. Completely forgivable grant
Repair Escrows for Kentucky USDA, FHA, VA, Fannie Mae Home loans
via Repair Escrows for Kentucky USDA, FHA, VA, Fannie Mae Home loans
Maximum Repair Escrow Amounts for Kentucky Mortgages:
Kentucky Fannie Mae Loans:
The cost of completing improvements must not represent more than 10% of the “as completed” appraised value of the property.
Kentukcy FHA Loans:
There is no maximum amount to be held in escrow for the cost of repairs required by appraiser.
Kentucky FHA Loans: (HUD REO):
The maximum limit of cost of repairs for escrow holdback is $10,000, plus $1,000 contingency included in the loan amount.
Kentukcy VA Loans:
There is no maximum amount to be held in escrow for the cost of repairs required by appraiser.
Kentucky USDA Loans:
The maximum amount to be held in escrow for repairs required by appraiser cannot exceed $5,000.