Kentucky HUD Homes for Sale with the FHA $100 Down Program


via Kentucky HUD Homes for Sale with the FHA $100 Down Program

 

Home Loan Options for Kentucky First-Time Home-buyers in 2020


Kentucky FHA Mortgage Loans

Kentucky FHA loans are insured to give lenders a layer of protection if you default on the mortgage. They typically have competitive interest rates, smaller down payments and lower closing costs than conventional loans. A low credit score can still warrant only a 3.5 percent down payment down to a 580 credit score.

If the score is below 580, you will need a down payment of 10%

2 years removed from bankruptcy and 3 years removed from foreclosure

Clear Cavirs Alert Number (Delinquent with Government Debts)

2 year work history usually needed.

No need for rent verification unless credit scores are derogatory.

Collections usually don’t have to be paid, but if being garnished or sued with a judgement lien, typically will need to be paid.

Max debt to income ratio centered around 50% of your total gross monthly income divided by your monthly payment on the credit report along with new house payment.

Kentucky VA Home Loans

Kentucky Mortgage  loans is backed by the  VA guarantees home loans that help active military members, veterans and surviving spouses. VA loans don’t require a down payment or minimum credit score and no monthly mortgage insurance. This is one of the biggest benefits of VA loans is that they don’t require monthly mi, like FHA (.85. .80 or .45) , USDA (.35) and some Conventional Loans (varies on credit score and equity position or down payment or as lenders call it Loan to Value.

They offer 100% Financing, 2 years removed from bankruptcy or foreclosure, a clear CAVIRS, and must meet residual income requirements.

 

VA loans is the only type of mortgage loan offered in the Secondary Market (FHA, VA, USDA, Fannie Mae and Freddie Mac Conventional Loans) that has residual income requirements based on household size and state you live in.

What is residual income?

Residual income is the amount left over after you pay your monthly utilities on home, property taxes and home insurance, mortgage payment and the FICA/Medicare, Taxes for State and Federal, Health Insurance, 401k deductions and loans on credit report to include child support.

 

Kentucky Fannie Mae and Freddie Mac

They are government-sponsored entities that back home loans for low- and moderate-income families.

Down payments can be as low as 3 percent and monthly mortgage is relativity cheap if you have a high credit score (over 720) and at least 5% down payment.

One of the biggest advantages of conventional loans when you are putting down less than 80%,  is that the mortgage insurance is not for life of loan like, FHA, USDA has, and it has no upfront mortgage insurance premium like FHA (1.75% upfront mi premium) or VA (upfront mi premium from 2.15% to 3.6% depending on usage and loan type)

Kentucky USDA Rural Housing Loan
The U.S. Department of Agriculture, or USDA, focuses on homes in rural areas and guarantees the home loan. Borrowers don’t have to buy or run a farm.

A credit score of 640 or higher typically gets an applicant streamlined processing. A lower score is allowed but may require extra documentation about payment history.

Kentucky Rural Development Mortgage Guide

No Down Payment Required, Zero NADA! – Kentucky Rural Housing USDA loans allow someone to buy a home without putting any money down.
Lower Mortgage Insurance costs – Mortgage Insurance, is much lower on KY USDA loans than on FHA This can save you a lot of money.
30 year fixed Interest Rates for Kentucky Rural Housing Loans with no prepay penalty The interest rates are lower on USDA loans, which results in lower payments, and plenty of money saved over time.

How to Qualify for a Kentucky USDA Loan

Property Eligibility – The home you want to finance with a KY USDA loan must be an eligible property. The property must be located in a rural area which is generally defined to have the following characteristics: Under certain conditions, towns and cities with populations between 10,000 and 25,000. The USDA makes the eligibility determination, which may be verified at the following link: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

Job History – Similar to all other mortgage loans, a two year employment history is required. You must show that you have been consistently employed for the past two years in order to qualify for Kentucky USDA financing; however in certain circumstances a small gap in employment may be permitted with a reasonable explanation. Additionally, if you have just completed schooling or military service and are newly employed but do not yet have a 2 year history, your income may also be eligible.

Income Limits – The Kentucky Rural Housing USDA program is intended to assist low and moderate-income Kentucky households, therefore to be eligible for a USDA loan, your household income may not exceed the moderate-income limits established for the specific county in which you are financing a home. you may view the eligibility requirements on this page of the USDA website:


New Income limits for most counties (*) in Kentucky are $86,850 for a household family of four and household families of five or more  can make up to  $114,650.



The Northern Kentucky Counties (***) of Boon, Kenton, Campbell, Brackenn, Gallatin, and Pendleton are $93,500 for a household of four or less and up to $123,400 for a family of five or more.

USDA Eligible Areas in Northern Kentucky
Burlington
Hebron
Independence
Walton
Alexandria
Highland Heights
Cold Springs
Grant County
Owen County
Pendleton County

USDA Income Limits
Boone, Kenton & Campbell Counties (N. KY)

$93,500 (family size 1-4)
$123,400 (family size 5 or more)

Grant, Owen & Pendleton Counties (N. KY)

$86,850 (family size 1-4)
$114,650 (family size 5 or more)

With the new changes for 2019 USDA Income limits, the Jefferson County Louisville, KY Metro area (**) saw an increase of $87,600 for a family of four and up to $115,650 for a family of five or more. The metro area surrounding counties of Jefferson County includes Oldham, Bullitt, Spencer are included in these higher income limits for USDA loans.

Remember,  the entire  Jefferson County and Fayette County  Kentucky counties are not eligible for USDA loans. Along with parts of the following counties Daviess (Owensboro), Mccracken (Paducah), Madison County, (Richmond), Clark County (Winchester), Warren (Bowling Green), Hardin (Fort Knox and Radcliff), Bullitt(Hillview, Maryville, Zoneton, Fairdale, Brooks), Franklin, (Frankfort), Henderson (Henderson City Limits), Christian County (Hopkinsville, Fort Campbell), Boyd County (Ashland city limits) and the most Northern Parts of Boone, Kenton, Campbell Counties of Northern Kentucky (Covington, Florence, Richwood, Hebron, Ludlow, Fort Thomas, Bellevue, Ryle, Beechwood, ) see  map below

DTI Ratio or debt to income ratios. One of the main criteria in determining if you will be approved or not is your debt-to-income ratio. While you must not make too much money, you also must not have too much debt. Your debt-to-income ratio is how much monthly debt you have (only those debts which show on your credit report are counted) compared to your qualifying income.

Credit Score – The minimum credit score for a Kentucky USDA Mortgage Loan goes down to a 581 credit score, however most loans get approved at 640 or higher .varies from lender to lender, but most want to see at least a 640 credit score for you to be approved.

Mortgage Insurance – USDA loans have their own version of mortgage insurance. It is called the “Guaranteed Fee” and works similarly to FHA loans which have an upfront and monthly mortgage insurance premium (MIP). With USDA loans, there is a 1.00% upfront guarantee fee which may be financed on top of your loan, and a 0.35% annual guarantee fee that is divided into 12 payments each year. The amount of your annual fee (paid monthly) adjusts each year and goes down as your loan balance does. Use our USDA calculator to get an idea of what your monthly payment will be

Kentucky Good Neighbor Next Door Mortgage Loan
This program sponsored by the U.S. Department of Housing and Urban Development helps law enforcement officers, firefighters, emergency medical technicians and K-12 grade teachers buy homes.

A 50 percent discount off a home’s listed price is available through the program in areas labeled “revitalization areas.” Buyers must commit to living in the home for at least 36 months.

Kentucky FHA 203(k) Rehab Loans

If a fixer-upper fits more easily into your budget, a Section 203(k) rehabilitation program loan that’s backed by FHA can help. It considers the value of the home after you’ve made improvements, and lets you borrow the money for these fixes, rolling it into your mortgage. The down payment can be as low as 3 percent!

 

Kentucky FHA Home loan programs for people with bad credit


via Kentucky FHA Home loan programs for people with bad credit

 

Lowers Minimum Credit Score Requirement on Kentucky FHA Loans

Kentucky FHA Home loan programs for people with bad credit

2020 Welcome Home Program for Kentucky Home Buyers

Kentucky Housing MCC | KHC Mortgage Credit Certificate


via 2020 Welcome Home Program for Kentucky Home Buyers

Lending 101: FHA Loans In Kentucky


Lending 101: FHA Loans In Kentucky

Kentucky FHA loans are great loan program that is not just for first-time buyers!Here are some of our favorite features of Kentucky FHA loans:

  1. Low down payment – FHA requires 3.5 % down. For qualified buyers, this money may be able to be gifted from a family member.
  2. No income limits – There are no income limits placed on the borrower or the household.
  3. Credit scores – Interest rates and underwriting requirements are less credit score sensitive than other loan programs. In some scenarios, we are able to lend to buyers with scores in the mid-500s. *Note: Credit scores under 580 will require a 10% down payment.
  4. Manufactured homes – No problem with FHA! Manufactured homes must be on a permanent foundation and have been built after June 1976.
  5. Rehab loans – Utilizing the FHA 203K program, we can do purchase and refinance loans that roll the cost of rehabs or repairs into the loan amount.
  6. No geographic restrictions – FHA loans can be done anywhere,
  7. Generous Debt-to-Income Ratios – For most buyers, FHA allows for a higher debt load than other programs. FHA may be the only program for some borrowers with high credit card and/or student loan debt.
  8. Non-Occupant Co-Borrowers – FHA is one of the few programs that allow non-occupant co-borrowers. While a non-occupant co-borrower cannot help in scenarios where a buyer has a low score and cannot qualify on their own, it is a great solution for buyers who have low income or income that can’t be documented.

Want to learn more about FHA loans? Contact any member of our team today, reply to this email, or give us a call at 502-905-3708 and ask to speak to a mortgage loan originator.

 

 

 

 

 

via Lending 101: FHA Loans In Kentucky

Approval Requirements for a Mortgage Loan in Kentucky for 2020


5 tips to on getting approved for a Mortgage Loan in Kentucky for 2020

1. You Need a Credit Score to Get a Home Loan

getting approved for a Mortgage Loan in Kentucky for 2020
getting approved for a Mortgage Loan in Kentucky for 2020

 Credit Score

Credit scores go from 300 to 800 on the FICO scale. The higher the score, the better the chances of getting approved. Most borrowers fall in the 500 to 700 range on most credit pulls.
A good rule of thumb, to get the very best rates, you will need a 760 Fico score or higher. Now that doesn’t mean you have to have that high of score to get approved, just to get the best rates and pricing.
In order to get approved for most homes loans nowadays that are sold to FHA, VA, USDA, Fannie Mae and Kentucky Housing, you will need to have a 620 credit score for most programs, with FHA, USDA, and VA going below that threshold.
You have three credit scores from Experian, Transunion and Equifax. Lenders will throw out the high and low score to get your qualifying score.
For example, if you have a 598 Experian score, a 609 Equifax score, and a 603 Transunion score, then your qualifying scour would be 603.
If your scores are in the lower range, say below 680, they’re still numerous home loan programs in Kentucky where you can get approved for a mortgage loan and get a very good fixed rate for 30 years.
On FHA loans in Kentucky, FHA will go down to a 500 minimum credit score with at least 10% down payment or 10% equity on a refinance.
If your scores is over 580, then you could use a FHA loan in Kentucky to with just 3.5% down payment or refinance with that much equity.
If it turns out that you have a 620 credit score or higher, you can look at doing an Conventional loan with just 3 to 5% down payment. Typically on conventional loans if your score is below 660, you would need 5% down payment.
If you happen to be a Veteran and qualify for a Kentucky VA loan,  you could possibly get approved for a VA loan with no minimum credit score.
In reality, it is very difficult to get for a VA loan with a score below 560 to 580 range, with most VA lenders requiring a 620 credit score.
If you are looking to purchase a home in a rural area, you can look at doing a Kentucky USDA loan because they have no minimum credit score but most lenders will want a 620 to 640 credit score.
CD-0908-CCD-CreditScore_BuyingHome_Final

2.How much can I afford?

Your Debt to Income Ratio (DTI) is the percentage of your incomet hat you owe in debt on a monthly basis. For example, if you make $5,000 per month, and have debt payments (car loans, credit cards, student loans, etc.) of $2,000, your DTI ratio is 40%. The higher this ratio is, the less likely you will be to qualify for a low interest rate.

Conventional loans typically have a qualifying ratio of 28/45. FHA loans will sometimes allow for a higher debt load of 45/55 qualifying ratio.

The first number in a qualifying ratio is the maximum percentage of your gross monthly income that can be applied to your mortgage. That includes the loan principal and interestprivate mortgage insuranceproperty taxeshomeowners insurance, and homeowner’s association dues.

The second number is the maximum percentage of your gross monthly income that can be applied to housing expenses and recurring debt. Recurring debt includes monthly payments for carsboatsmotorcycleschild support payments and monthly credit card payments.

 Example:  of a 28/36 qualifying ratio:

Gross monthly income of $5,000 x .28 = $1400 can be applied to housing.

Gross monthly income of $5,000 x .36 = $1,800 can be applied to recurring debt plus housing expenses

Example: of a 29/41 qualifying ratio:

Gross monthly income of $5,000 x .29 = $1,450 can be applied to housing.

Gross monthly income of $5,000 x .41 = $2,050 can be applied to recurring debt plus housing expenses

That means your monthly debt payments are divided by your gross monthly income.  Most lenders want your debt-to-income ratio to be no higher than 40%

The general rule for most FHA, VA, KHC, USDA and Fannie Mae loans is that we run your loan application through the Automated Underwriting systems, and it will tell us your max loan qualifying ratios.
There are two ratios that matter when you qualify for a mortgage loan. The front-end ratio, is the new house payment divided by your gross monthly income.  The back-end ratio, is the new house payment added to your current monthly bills on the credit report, to include child support obligations and 401k loans.
Car insurance, cell phone bills, utilities bills does not factor into your qualifying rations.

If the loan gets a refer on the initial desktop underwriting findings, then most programs will default to a front end ratio of 31% and a back-end ratio of 43% for most government agency loans that get a refer. You then take the lowest payment to qualify based on the front-end and back-end ratio.

So for example, let’s say you make $3000 a month and you have $400 in monthly bills you pay on the credit report.

What would be your maximum qualifying house payment for a new loan?

Take the $3000 x .43%= $1290 maximum back-end ratio house payment. So take the $1290-$400= $890 max house payment you qualify for on the back-end ratio.
Then take the $3000 x .31%=$930 maximum qualifying house payment on front-end ratio.
So now your know! The max house payment you would qualify would be the $890, because it is the lowest payment of the two ratios.

 

∘ How much money do I need to pay to close the loan?

Answer:

Depending on which loan program you choose, the outlay to close the loan can vary. Typically you will need to budget for the following to buy a home: Good faith deposit, usually less than $500 which holds the home for you while you close the loan. You get this back at closing; Appraisal fee is required to be paid to lender before closing. Typical costs run around $400-$450 for an appraisal fee; home inspection fees. Even though the lender’s programs don’t require a home inspection, a lot of buyers do get one done.

The costs for a home inspection runs around $300-$400. Lastly, termite report. They are very cheap, usually $50 or less, and VA requires one on their loan programs. FHA, KHC, USDA, Fannie Mae does not require a termite report, but most borrowers get one done.

There are also lender costs for title insurance, title exam, closing fee, and underwriting fees that will be incurred at closing too. You can negotiated the seller to pay for these fees in the contract, or sometimes the lender can pay for this with a lender credit. The lender has to issue a breakdown of the fees you will incur on your loan pre-approval.

Here are a few home loans you can choose from:

FHA

The Federal Housing Administration (FHA) mortgage loan is popular with first-time home buyers. You can get approved with a 500 credit score and only 10% down.

USDA Loans

The U.S. Department of Agriculture (USDA) has a loan program to help low-income buyers living in rural areas. These loans come with a zero-down payment and offer the lowest mortgage insurance premium for any type of mortgage.

VA Loans

You’ll need a Veterans Affairs (VA certificate of eligibility to qualify for the VA home loan program. If you do qualify, there’s no down payment requirement and no mortgage insurance.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

 

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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Kentucky FHA Loan Requirements For 2020


via Kentucky FHA Loan Requirements For 2020