Kentucky Refinance Streamline Guidelines for an IRRL


Kentucky Refinance Streamline Guidelines for an IRRL.

Louisville Kentucky First Time Home Buyer Programs and Resources


Louisville Kentucky First Time home Buyers programs including, FHA, VA, KHC, and USDA, Rural Housing Zero Down home loans–Our site is updated daily for Louisville Kentucky first time home buyers with the best programs and rates

Louisville Kentucky First Time Home Buyer Programs and Resources

3 Types of Lending Approvals [Infographic].

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

2014 First Time Home Buyer Programs Louisville Kentucky


First Time Home Buyer Programs Louisville Kentucky.

 

Government Mortgage Products available to Kentucky First Time Home Buyers in 2014

KENTUCKY FHA MORTGAGE LOANS

  • Min FICO 600
  • Non-Occupant co-borrowers allowed
  • 100% Gifts Allowed from family members
  • Manual UW allowed but must keep debt to income ratios at 29/41% respectively and have a verifiable rent history ox30
  • Non-credit qualify Streamlines — No income or credit report required
Kentucky FHA First Time Home Buyer Loans for 2014
Kentucky FHA First Time Home Buyer Loans for 2014

 

 

 

 

 

 

 

KENTUCKY VA MORTGAGE LOANS

  • Min FICO 620
  • Manual UW
  • 100% Cash Out and Zero Down Payment Home loans. Must have COE
  • IRRRL — OR KENTUCK VA STREAMLINE REFINACE
Kentucky VA Mortgage Lender Guidelines for 2014
Kentucky VA Mortgage Lender Guidelines for 2014

 

 

 

 

 

 

 

 

 

 

 

 

KENTUCKY RURAL HOUSING AND USDA RURAL HOUSING LOANS

  • Min FICO 620
  • 100% Max LTV, no money down financing.
  • Manual UW but must have debt to income ratios of 29 and 41% respectively with a verifiable rent history 0x30
  • 100% Gift Funds allowed
kentucky usda rural housing loan programs for 2014
Kentucky usda rural housing loan programs for 2014

 

 

 

 

 

 

 

Kentucky Conventional Housing Loans

Fannie Mae

  • 95% Financing available
  • Lower mortgage insurance premiums than FHA and max loan is about $100k higher in Kentucky for A Fannie Mae Loan vs. FHA Loan

 

Kentucky Fannie Mae Mortgage Guidelines for 2014
Kentucky Fannie Mae Mortgage Guidelines for 2014

 
Flex-Banner Apply for a free mortgage pre-approval qualificaton today.
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

Louisville Kentucky VA Refinancing IRRL – Frequently Asked Questions


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Back to FAQ’s home

Louisville Kentucky VA Refinancing

 

 

Do you have an existing Louisville Kentucky VA Home Loan or conventional loan that you are interested in refinancing? While interest rates are still low, there are many advantages to refinancing now in order to get a lower interest rate, take cash out of the equity in your home, consolidate credit, or make home improvements. If you are interested in refinancing with a Kentucky VA Loan, the VA has programs that can assist you. Below are some questions other people have asked about the Louisville Kentucky VA Refinancing programs. Follow the headers to find information about Louisville Kentucky VA Refinancing. If you cannot find an answer here, a VA Loan Specialist can be contacted online or by phone to answer all your refinancing questions.

What is an IRRRL?

An IRRRL is the VA’s Interest Rate Reduction Refinancing Loan, also known as a VA Streamline Refinance. An IRRRL is a loan that refinances your existing VA Loan into a new VA Loan with a lower interest rate, or from an adjustable rate mortgage (ARM) into a fixed rate mortgage. A Certificate of Eligibility is not required for an IRRRL.

Do I have to be eligible for a lower interest rate in order to qualify for a VA IRRRL?

Not necessarily. In order to qualify for an IRRRL, the VA requires you to obtain a lower interest rate if you are going from a one fixed rate mortgage to another fixed rate mortgage, but if you are going from an adjustable rate mortgage to a fixed rate mortgage, the VA will allow you to refinance to a higher interest rate.

If it is called an Interest Rate Reduction Loan, why does the VA allow me to refinance my ARM to a higher interest rate?

Since you are refinancing your adjustable rate mortgage into a fixed rate mortgage the interest rate may be higher initially, but you will save money over time. With adjustable rate mortgages you may get a lower interest rate than a fixed rate mortgage for the first few years, but after that your interest rates increase and you are paying higher rates than you would with a fixed rate mortgage. This is why the VA allows you to refinance into a higher fixed rate of interest on your mortgage before your adjustable rate on your current mortgage increases.

Can I refinance with the VA if I am already using my Loan Guarantee entitlement with my current mortgage?

Yes. As long as you are refinancing your VA-guaranteed mortgage, then you can use this program to get more favorable loan terms and save money over the long run. If you’re ready to get started with your VA Refinance, contact a VA Refinance Specialist now.

What out-of-pocket expenses will I have when refinancing?

None. The VA allows you to finance all closing costs associated with refinancing into your new mortgage. Your lender may have some fees, but you will need to consult them to find out what they expect you to pay up front, if anything.

Do I have to use my current lender to refinance?

No. If you want a new lender, you can choose from any mortgage lender on the VA-approved lender’s list. Make sure that you shop around for your refinancing loan. By going to several lenders, you will get more offers and you can choose the best loan terms for you and your family. Be careful of lenders that try to deceive you into thinking they are the only lender that can finance a VA IRRRL. The VA has a long list of approved lenders, and you should shop around.

Do I have to go through the credit check and appraisal process again when refinancing?

The VA does not require another credit check and appraisal because it has already approved you for the loan guarantee in the first place. However, lenders usually do require a credit check and appraisal when refinancing because they need to make sure you are still credit worthy and the property still has a higher market value than their maximum loan amount. For more information about this, check out VA Appraisal, Qualification and Approval FAQ’s.

Do I have to get another Certificate of Eligibility?

No. You have already been approved by the VA for your home loan guarantee, and refinancing does not require a Certificate of Eligibility.

Keys with a VA Loan

What fees does the VA charge for an IRRRL?

The VA only requires a 1.5% funding fee of the value of your new loan. There are no other fees involved with the VA. If a lender tries to tell you that the VA charges extra fees you should contact the VA to see if something has recently changed and, if not, you should find a new, ethically responsible lender.

Does the VA have any requirements for me to get an IRRRL?

The VA has the following eligibility requirements for an IRRRL:

  • You must be refinancing an existing VA Loan into a new VA Loan in order to use this program.
  • You need to certify that you have been occupying the property. For your original loan you had to sign an agreement stating you would be the primary occupant of the home, and now you will have to sign an additional agreement saying that you have been the primary occupant.
  • You cannot take more out on your new loan than what you currently owe. The loan can be more only as a result of fees and closing costs being financed into the mortgage.

Can I include the cost of home improvements in my IRRRL?

You are allowed to include up to $6,000 in your refinancing loan for the purpose of energy efficient home improvements. Any other home improvements are not eligible.

Can I take cash out of an IRRRL?

No. An IRRRL from the VA is only for the purposes of obtaining a better interest rate on your mortgage loan in order to save you money over time.

What is a VA Cash Out Refinancing Loan?

This is the type of refinancing loan the VA offers for those Veterans who want to take cash out of the equity in their homes. You must be refinancing an existing VA Loan in order to use the VA Cash Out Refinancing Program.

What can I use the cash I take out of my home for?

Anything you want. Make sure you consult your lender to see if they have any restrictions on what you can use the money for.

Can I consolidate debt with a Cash Out Refinance Loan?

Yes. As a matter of fact, many lenders prefer that you do consolidate all of your debt into your new loan because it makes you less of a credit risk for them.

How much cash can I take out of my home equity?

Your home’s value is on a Certificate of Reasonable Value, and you are allowed to take up to 90% of this amount. On top of this you are also allowed to finance the VA funding fee and include up to $6,000 for energy efficient home improvements.

I am delinquent on my current mortgage. Can I still get a VA Cash Out Refinance Loan?

This depends on your lender. The VA allows it, and many lenders will also allow you to refinance as long as you are financially able to make the new payments. If you are a delinquent on your current mortgage because of excess debt, the lender will probably require you to consolidate that debt into your new mortgage loan in order to lower you interest rates on your unsecured debt and give you a more affordable monthly payment.

How much does the VA guarantee my loan for with a VA Cash Out Refinance?

The highest amount the VA will guarantee a Cash Out Refinance mortgage for is $36,000.

Still have questions?

More information on refinancing options is available through the Department of Veterans Affairs or by contacting your VA Regional Loan Service Center.

Louisville Kentucky Mortgage Refinance: How Can I Pay Off My Mortgage Faster?


How Can I Pay Off My Mortgage Faster? Basic Concepts—–Louisville Kentucky Mortgage Refinance

How Can I Pay Off My Mortgage Faster? Basic Concepts
A 30 year mortgage, if paid monthly, is about 60% paid off in 24 years. If the borrower makes one extra monthly payment per year on a 30 year mortgage, the entire mortgage is paid off in 24 years. That’s six years of vacations, helping your children with college, or bolstering your retirement accounts.
To understand this, let’s look at how your mortgage payment is determined. We’ll use a $200,000 mortgage at 6.0% for our example.
The monthly payment would be $1199.10.
The interest payment is $200,000 * .06 = $12,000/ 12 months = $1000
The principal payment would be $199. That’s right. After one month you will have paid $1199.10 and your balance will have gone down $199.
A lower principal balance = a lower amount of interest. Each month the amount of interest paid goes down and the amount of principal paid goes up.
Anything extra
But who has an extra $1200 to make that extra payment? You do.
Call me today for your free refinance mortgage analysis..Rates are low and it is time to refinance
I can be reached locally at 502-905-3708 or email me your questions to kentuckyloan@gmail.com

Why Are More Kentucky Mortgage Loans Not Being Refinanced?


 

Kentucky Mortgage Rates at all time low..Call now for a free-analysis 502-905-3708

 

Why Are More Kentucky Mortgage Loans Not Being Refinanced?

Why Are More Kentucky Mortgage Loans Not Being Refinanced?October 25, 2010

While mortgage interest rates are at their lowest levels since 1945, millions of mortgages that carry interest rates of 6% to 9% or even higher, are not being refinanced. The reasons for this involve Fannie Mae and Freddie Mac, the two secondary market giants now in Government conservatorships, in a central role.
The problem is perhaps best seen through the eyes of borrowers who are unable to refinance. Each unsuccessful borrower cited below is representative of a sizeable group of unsuccessful borrowers.

Fannie Mae and Freddie Mac Have Become Excessively Restrictive

 

 

Adam was turned down for a refinance because he did not meet the new stiffer underwriting and pricing requirements set by the agencies in their standard programs. His credit score, which was acceptable when he got his loan before the crisis, is not high enough to meet the new requirements.
It clearly was appropriate for the agencies to correct the excessively liberal rules that had prevailed during the go-go years, which contributed to the financial crisis. However, they have reacted to their excessive liberality before the crisis by becoming excessively restrictive in the aftermath. Their underwriting and pricing structures are designed to maximize their net earnings, as if they were still private firms.

Fannie and Freddie are now part of the Government, and should set their underwriting rules and pricing adjustments not to maximize net revenue but to break-even over a long time horizon.

Kentucky Mortgage Loans

 

There Should Be No Maximum LTV on the HARP Program
Barbara is one of many homeowners who bought during the go-go years and who now owe more than their houses are worth – she is “underwater”. She applied for a loan under the Home Affordable Refinance Program (HARP), which was designed to make refinance possible for underwater borrowers who are current on their payments and whose loans are owned by Fannie or Freddie. Barbara is ineligible, however, because she is too far underwater. Her loan-to-value ratio (LTV)  is 130% and the agencies have set a 125% maximum.
A maximum LTV in the HARP programs cuts out a sizeable segment of the potential market, for no good reason. The agencies are already on the hook for any losses on high LTV loans, and a rate reduction can only reduce the probability that a default will occur that would trigger the loss. Indeed, the reduction in expected loss from a rate-reducing refinance is larger on a 150% LTV than on a 125% LTV. The default rate has to fall only half as much on a 150% loan as on a 125% loan to generate the same reduction in expected loss.

Fannie and Freddie should scrap the LTV maximum in the HARP program, for which there is no rational reason, thereby also eliminating the need for appraisals on HARP loans.

Kentucky Mortgage Loans

Too Few Lenders Make 125% HARP Loans

Charley was turned down for a refinance under the HARP program, although his LTV was only 120%, which made him eligible under agency rules. Nonetheless, the lenders Charley approached would not make the loan. They told him that their maximum LTV was 105%, and some said that it was 95%. Charley could have refinanced if he knew where to go, but he didn’t and gave up the search.
I did a quick and dirty survey and found that HARP loans above 105% are not available from brokers or from smaller lenders who sell to wholesalers who in turn sell to the agencies. HARP loans exceeding 105% are only available from some of the lenders who sell directly to the agencies.
Freddie Mac has a list of HARP lenders at http://www.freddiemac.com/cgi-bin/homeowners/relief_refi.cgi, but it is extremely difficult to find. If Fannie has one, I could not find it. The Freddie list has 27 lenders, 14 of which do 125% loans, of which only 4 have wide multi-state presence:

Fannie and Freddie ought to do a better job of informing potential borrowers how to find a lender who will make 125% HARP loans, and they should review their policies that have discouraged broader lender participation.

 

Borrowers With LTVs Above 105% Who Have PMI Can Refinance Only With Their Current Servicer
Doris’s situation was the same as Charley’s, including an LTV of 120%,  with one difference. Doris’s existing loan carries privarw mortgage insurance (PMI). The lenders who turned her down told her that the mortgage insurer had to agree to shift the MI policy to the new loan, but would not do so in her case.
Under HARP rules, if there is no MI on the existing loan, none is required on the new loan. If there was MI on the old loan, as in Doris’s case, it will be carried forward on the new loan, provided the PMI firm agrees. But if the current LTV exceeds 105%, they won’t agree unless the new loan is being made by the existing servicer.
Doris was not aware that only the lender servicing her loan can shift the mortgage insurance policy from the existing loan to a new one. PMIs will not shift the mortgage insurance to a new loan with a different lender when the LTV exceeds 105%.

Fannie and Freddie ought to inform potential HARP borrowers who have mortgage insurance and LTVs greater than 105% that they can only refinance with their current lender, and they should examine whether there is anything they can do to remove the PMI roadblock.

 

Kentucky Mortgage Loans

HARP Should Be Expanded to Cover Mortgages Not Owned by Fannie or Freddie
Ethan is an underwater borrower in good standing whose loan is not owned by Fannie or Freddie. His only possibility of a refinance is the new FHA program I wrote about a few weeks ago, but that program requires the existing lender to write-down the balance to 97.75% of house value. Since Ethan is making timely payments, the lender has very little incentive to do that.
Ethan had no say in who ended up owning his loan, from his perspective it was a coin toss that came up tails and made him ineligible for HARP. The out-of-luck group to which Ethan belongs includes a large number of sub-prime borrowers who meet their obligations faithfully while paying rates up to 9% and even higher.
There is no good reason why such borrowers have to be left entirely out in the cold. While including these borrowers in HARP would expose Fannie and Freddie to risks they did not have before, the agencies could set payment performance requirements and charge risk premiums large enough to protect taxpayers while still offering many of these borrowers substantial relief..

 

Treasury should have the agencies develop a HARP1 program covering loans they do not now own that would be subject to underwriting rules and price adjustments consistent with the Government breaking even.

 


Kentucky Mortgage Loans

Labels: Kentucky Housing Mortgage Rates Louisville Kentucky, Kentucky Mortgage Rates and Home Loan Options, Louisville Kentucky

FHA Mortgage Streamline Refinance Louisville Kentucky


Kentucky  First Time Home BuyerFHA KENTUCKY MORTGAGE REFINANCE

Did you know you can refinance your Kentucky FHA mortgage with no appraisal? It’s called a FHA Streamline Refinance. It requires little qualification and it has no appraisal requirements. The benefits are obvious, a homeowner with a Kentucky FHA loan can refinance to a lower rate even if the property value has decreased.

An added benefit of the FHA Streamline Refinance is the cost, many cost such as title fees, doc prep fees, appraisal fees etc. are reduced or eliminated. Since the loan amount can not be adjusted to include fees, it is important to minimize cost, thus reducing your cash-out of pocket.

Another option for reducing cost is to raise the interest rate. Many lenders call this a “No Cost Refinance.” While the title is somewhat misleading as there is a cost in a higher interest rate, it is an effective tool for eliminating cash-to-close.

The Kentucky Mortgage FHA streamline refinance is a government backed mortgage that can help homeowners reduce their monthly payment by reducing their mortgage rate. A FHA streamline refinance mortgage in Kentucky  can be one of the simplest and most cost-effective ways to refinance your mortgage. Unlike some modification loans, the streamline refinance does not have any negative consequence on your credit rating.

Items needed:

  • Present mortgage must be a Kentucky FHA mortgage.
  • Written application, complete with present mortgage info.
  • Mortgage credit rating – must be current on the existing loan with no late payments in the last twelve months.
  • You must have owned your current home for at least six months.
  • No appraisal is required, unless you want to include your closing cost in the loan.


Joel Lobb
Senior Mortgage Loan Officer

Key Financial Mortgage
107 S. Hurtsbourne Parkway
Louisville Ky 40222

ph# 502-905-3708
fax# 502-895-2266

jlobb@keyfinllc.com

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