Category: usda rural housing guidelines

Northern Kentucky for the USDA Rural Housing Loan Home Program


via Northern Kentucky for the USDA Rural Housing Loan Home Program

 How Does the USDA Home Loan Work in Northern Kentucky?

Here are some of the Key Financial Elements of the USDA Home Loan in Northern Kentucky:01414_ayaynqojqrd_600x450

 

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 ?
How to qualify for a Kentucky FHA Home Loan ?

 

 

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USDA , Fannie Mae Home Loans In "Credit Scores and Credit Report" What Credit Score do You Need to qualify for a FHA VA KHC USDA Kentucky Mortgage

2019 Kentucky First Time Home Buyer Loan Programs


via 2019 Kentucky First Time Home Buyer Loan Programs

 

 

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Single Family USDA Rural Housing Direct Loan and Grant Programs In Kentucky 2019 Shutdown Government


via Single Family USDA Rural Housing Direct Loan and Grant Programs In Kentucky 2019 Shutdown Government

Government Shutdown Affects USDA Loans. Are FHA, VA, USDA Mortgage Loans Shutdown in Kentucky?


via Government Shutdown Affects USDA Loans. Are FHA, VA, USDA Mortgage Loans Shutdown in Kentucky?49202911_10158433385021164_3411137423906701312_n

Kentucky Housing Loans with Government Shutdown


Source: Kentucky Housing Loans with Government Shutdown

 

Partial Federal Government Shutdown

Affects Loan Programs

The partial shutdown of the federal government is affecting some of the first mortgage programs through Kentucky Housing Corporation (KHC).
RHS Guarantee Loans
  • KHC will not purchase or close a loan without the RHS Conditional Commitment and tax transcripts.
Verification of Employment (VOE) on Conventional, FHA, and RHS Loans for Federal Employees
  • KHC will require a VOE within 10 days prior to closing.
  • The only exceptions will be conventional loans for military personnel who use their Leave and Earnings Statement (LES), or if their employment was validated by Desktop Underwriter (DU) service and follows all conditions.
Flood Insurance
  • KHC will follow agency guidelines that are in place during the partial federal government shutdown.
Federal Tax Transcripts and Social Security Validation
  • If federal tax transcripts or validation of social security numbers are required per underwriting, or are listed as an automated underwriting engines (AUS) finding within DU, then applicants will be required to provide copies prior to closing or purchase of a loan.
KHC Interest Rate Lock

If you have an existing interest-rate lock that will need an extension due to the partial federal government shutdown, please email your loan officer at the KHC lender handling your loan. 

6 options for buying a home with little or no money down


Here’s what you need to know when you have little or no money to put down on a home!

Source: 6 options for buying a home with little or no money down

2019 KY USDA Rural Housing Income Limits for Kentucky Counties Kentucky Rural Development Mortgage Guide


via 2019 KY USDA Rural Housing Income Limits for Kentucky Counties Kentucky Rural Development Mortgage Guide

 

Kentucky Cincinnati (OH, KY, IN FMR) $90,050 $118,850
Shelby $86,450 $114,100
All Other Areas $82,700 $109,150

What does debt to income ratio mean for a Mortgage Loan Approval in Kentucky?


via What does debt to income ratio mean for a Mortgage Loan Approval in Kentucky?

 

How does your debt to income ratio play into a Kentucky Mortgage Loan Approval for FHA, VA, USDA and Fannie Mae Mortgage Loans

When it comes to getting approved for a Kentucky Mortgage loan, lenders will look at your current gross monthly income versus your current debts to qualify up to your maximum spending limits for a mortgage loan. Also called your dti or debt to income ratios.

There are two ratios they use: Front end ratio and back-end ratio

The first ratio is measured using your new house payment, taking into account your principal and interest payment, property taxes and home insurance premiums along with the mortgage insurance. That ratio typically needs to be less than 1/3 of your gross monthly income to fit most KY mortgage programs for FHA, VA, USDA and Fannie Mae guidelines.

I have attached below a picture with  a general overview of qualifying ratios for a Kentucky Mortgage loan approval when it comes to income vs debts or debt to income ratios.

Debt-to-Income Ratio Guide for Kentucky FHA, VA, USDA and KHC Loans: 

Acceptable Ratios
Housing Debt to Income
Conventional 28% 41-50%
FHA 29% 41-56.5%
VA
USDA/RHS
KHC 
29%
29%
40%
41-65%
41-45%
50%
Higher ratios may be accepted with compensating factors: low loan value, large cash reserves after closing, high credit scores, etc,

So for example, let’s say you make $3000 gross a month, then your max house payment on the new loan would equal about $1000 for your new house payment.

Your current rent payment, utility bills, car insurance, cell phone bills, don’t go into account when figuring your max ratios.

The second ratio, called the backend-ratio measures your new house payment, plus your current monthly debts listed on the credit report.  Most Kentucky Mortgage programs will want to cap this at 45% to 50%, with some going a little higher with compensating factors.

For example, let’s say you make $3000 gross a month, and your new house payment is $1000, taking you up to your max limits on the front end ratio of 1/3.  and let’s say you have a $300 car payment, $100 in credit card payments and $150 student loan payment.

What is your maximum qualifying house payment with a back-end ratio of 50% with the current debts above? Let’s look at the math: Take $3,000 x 50% =$1,500 — this is going to be your max limits on the backend ratio with new house payment and current debt load. So let’s see what this amounts to:

($1500-$300-$100-$150=$950)

So if we take the $1500 minus your current monthly bills on the credit report, this is going to equal a max house payment of $950. As you can see, even though the front end ratio allows for $1000 max house payment, the back-end ratio is going to be $950, so you would go with the lowest of the two.

If you pay or receive child support  or child support this can be added or deducted to affect your max qualifying ratios for a mortgage loan, along with 401k loans.

As stated above, car insurance, cell phone bills, current rent payments, utility bills, insurance, does not come into play when qualifying for a max mortgage loan approval.

Curios about how much you would qualify for a mortgage loan in Kentucky?

Call, text or email me your questions and I would be glad to help you.

 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


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

http://www.nmlsconsumeraccess.org/
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.

What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan in 2018?


via What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan in 2018?

What kind of credit score do I need to qualify for different first time home buyer loans in Kentucky?
Answer below:
Most lenders will wants a middle credit score of 620 to 640 for KY First Time Home Buyers looking to go no money down. The two most used no money down home loans in Kentucky being USDA Rural Housing and KHC with their down payment assistance will want a 620 to 640 middle score on their programs.
If you have access to 3.5% down payment, you can go FHA and secure a 30 year fixed rate mortgage with some lenders with a 580 credit score. Even though FHA on paper says they will go down to 500 credit score with at least 10% down payment, you will find it hard to get the loan approved because lenders will create overlays to protect their interest and maintain a good standing with FHA and HUD.
Another popular no money down loan is VA. Most VA lenders will want a 620 middle credit score but like FHA, VA on paper says they will go down to a 500 score, but good luck finding a lender for that scenario.
A lot of times if your scores are in the high 500’s or low 600’s range, we can do a rapid rescore and get your scores improved within 30 days.
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