Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan


Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan.

What Credit Score do You Need to qualify for a FHA VA KHC USDA Kentucky Mortgage


 

What Credit Score do You Need to Buy a Home?

Call me today for a free credit report–502-905-3708 or email me at kentuckyloan@gmail.com

When it comes to mortgages and credit scores, there are two really important questions to ask:

–What credit score do I need to qualify for a mortgage?

–What credit score do I need to get the lowest interest rate on a mortgage?

These different but related questions are important if you are looking to buy a home. And the second question is particularly important. With a high FICO score, you can literally save tens of thousands of dollars in interest over the life of a home loan. So let’s take a look at both questions. And if you don’t know you score, be sure to get you free credit score.

What credit score do you need to qualify for a mortgage?

The first thing to keep in mind is that qualifying for a mortgage involves a lot more than just a credit score. While your FICO score is a very important ingredient, it is just one factor. Lenders also look at your income and level of debt, among other things.

As a rule of thumb, however, a credit score below 620 will make buying a home very difficult. A FICO score below 620 is considered sub-prime. In the past there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.

A FICO score between 620 and 650 is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 620, recognizing that other factors weigh in the decision and that some banks may require a higher score.

What credit score do you need to get a low rate mortgage?

It use to be that a score of about 720 would yield the lowest mortgage rates available. Today, the best rates kick in with a FICO score of 760. And interest rates go up significantly as your credit score drops. To give you an idea, the following table shows current rates by credit score and calculates a monthly principal and interest payment based on a $300,000 loan:

Eligibility Requirements  for a Kentucky  FHA Loan after September 15, 2015

When applying for eligibility for A Kentucky  FHA Loans, There are some factors taken into account:
  • Credit score 620 and above with the mortgage investors we work with, even though FHA will insured lower credit scores, most mortgage lenders will create overlays
  • No bankruptcies (Chapter 7) in last 2 years with clean credit afterwards and 3 years after a foreclosure or short sale
  • 3.5% Down payment. Can be gifted or money saved-up or money taken out of 401k or retirement account. No cash gifts or unsourced deposits are allowed for down payment on a FHA loan.
  • Debt to income ratios can be up to 55% on an Approved Eligible Files but restricted on manual underwrites to 31% and 43% respectively.
  • Overtime or bonus income needs to show a 2 year history for it be eligible for income qualifying on a FHA loan. FHA underwriters typically will take a 2 year average.
  • FHA appraisals with the new changes now call for the FHA appraiser to check and review the home more thoroughly, hence the typical costs of a FHA appraisal has gone from $325 to $425 due to more legwork involved on a FHA appraisal.
  • Any disputes on credit bureau will need to be taken out of dispute status typically for your credit scores to be validated, so please be aware of this.
  • Rent references are usually not called for unless your file get downgraded to a manual
  • FHA mortgage insurance the upfront and annual mi monthly fee is for life of loan.
  • A lender may approve a borrower if:  acceptable payment history and  no major derogatory credit on revolving accounts in the last 12 months. “Acceptable payment history” means:  the borrower made all housing and installment debt payments on time for the previous 12 months, and  there are no more than two 30‐day late mortgage or installment payments in the last 24 months. “Major derogatory credit” means:  payments made more than 90 days after the due date, or  3 or more payments made more than 60 days after the due date.
  •  Child support income is Allowed If using a voluntary payment agreement, the lender:  obtains 12 months canceled checks, deposit slips, or tax returns.  For divorce decree, legal separation agreement, or court order if there is evidence of receipt for the most recent 6 months, may use the current payment to calculate income, &  if there are not 6 months of consistent payments, may average the income received over the prior 2 years, or less if the income has not been received that long  4000.1 II.A



Joel Lobb
Senior  Loan Officer
(NMLS#57916)
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). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.
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joel lobb
Louisville Mortgage Group
License:  NMLS# 57916
I specialize in Kentucky FHA, VA, USDA, KHC, Jumbo and Fannie Mae mortgage loans in Ky. I have helped over 589 Kentucky families buy their first home and refinance their current mortgage for a lower rate; For the first time buyer with little money …view more
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Can You Afford to Buy a House?


Can You Afford to Buy a House?.

Be sure to factor in all the costs

By Michelle Dawson | Realtor.com

Although the thought of paying a mortgage is more enticing than paying rent, it’s important to understand all the costs involved in buying and owning a home as you determine whether you can afford to join the ranks of homeowners.

Potential buyers sometimes forget to factor in the down payment, homeowners insurance and the possibility of depreciation, as well as the costs associated with closing the transaction, moving, purchasing major appliances, and home, landscape and pool maintenance, not to mention furnishings and design accessories once you move in.
The days of calling up the landlord to fix your problems come to an abrupt halt when you’re a homeowner. You’ll be responsible for everything from malfunctioning appliances to leaky faucets to broken heating and air conditioning units and everything in between. And if you buy an older home, you’ll probably eventually encounter costly repairs, such as replacing the roof or windows.
To determine whether you can afford to buy a home, you should do the following:
1. Determine the property value of homes that interest you. The property value (what the home is worth) is determined by comparing the prices of homes recently sold of similar size in the same neighborhood. Your real estate agent will be able to provide this information to you.
2. Review different mortgage loan types and compare their required down payment amounts to the money you have available. Down payments, based on a percentage of the value of the property and determined by the type of mortgage you select, typically range from three to 20 percent of the property value. Don’t forget to factor in private mortgage insurance, a policy that allows mortgage lenders to recover part of their financial losses if a borrower fails to full re-pay a loan. Mortgage insurance makes it possible to buy a home with as little as 3 percent down. Usually, the lower the down payment, the higher the PMI, which typically will cost somewhere between $40 and $125 a month.
3. Get an estimate of your closing costs, including points (the dollar amount paid to a lender for obtaining a lower interest rate on a loan—one point is one percent of the loan amount), taxes, recording, inspections, prepaid loan interest, title insurance (a policy that insures a home buyer against errors in the title search; cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller) and financing costs from your mortgage lender or a real estate professional. These will generally add up to between 2 and 7 percent of the property value. You’ll receive an estimate of these costs from your lender after you apply for a mortgage.
4. Add the down payment requirements and the closing costs together to determine the amount of money you’ll need right off the bat. But you’re not done yet.
5. Think about the actual move. Will you hire a moving company or rent a truck? Either way will cost you. The more stuff you have, the more it will cost.
6. Property taxes. Many lenders will require an impound account in which monthly payments for property tax (and often insurance) are paid together with the monthly mortgage payment. You can figure your average annual tax rate will be about 1.5 percent of the purchase price of your home.
7. Next, budget for maintenance and repairs. HouseMaster, a home inspection company with 300 franchises nationwide, said that based on a study that evaluated 2,000 inspection reports, the typical costs of major repairs are:
  • Roofing: $1,500 to $5,000
  • Electrical systems: $20 to $1,500
  • Plumbing systems: $300 to $5,000
  • Central cooling: $800 to $2,500
  • Central heating: $1,500 to $3,000
  • Insulation: $800 to $1,500
  • Structural systems: $3,000 to $1,500
  • Water seepage: $600 to $5,000
Once you crunch the numbers and find you come up a bit short, investigate ways to reduce or creatively fund your down payment—it can come from a variety of sources. Check with your realtor or lender to find out what’s available.
You’ll also need to factor in the cost of homeowners insurance. In addition to the type of construction, age of the home, your credit history and past insurance history, new issues like litigating costly toxic mold cases are raising homeowners insurance rates.
In fact, the National Association of Insurance Commissioners reports that homeowners will spent an average of $822 on homeowners insurance in 2007, the last year data was available.
In your final analysis of whether you can afford to buy a home, you’ll want to weigh the costs with the financial benefits—a consistent mortgage payment (unlike rent, which can increase), the tax benefits (you can deduct, in most cases, mortgage interest, closing costs, and property taxes), and the all-important appreciation factor—the rate of increase in a home’s value.
And of course, you’ll want to weigh perhaps the biggest benefit of all—having a place to call your own.

Can I Pay My Loan Officers Differently Per Mortgage Product?


Can I Pay My Loan Officers Differently Per Mortgage Product?.

 

 

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How Long Do I Have To Be Employed to Qualify for an Kentucky FHA Loan?


How Long Do I Have To Be Employed to Qualify for an Kentucky FHA Loan?

Another Satisfied Home Buyer! Let us help you buy your next Kentucky Home. Great Rates and local, friendly, honest advice. Zero Application FEES! Free Credit Report on all April Applications
Another Satisfied Home Buyer! Let us help you buy your next Kentucky Home. Great Rates and local, friendly, honest advice. Zero Application FEES! Free Credit Report on all April Applications

The Kentukcy FHA loan application process includes many steps, including running a credit report and having the Kentucky FHA borrower fill out paperwork with personal information like open lines of credit and current income. Applying for a government home loan also requires giving the lender two types of personal history–a record of where the borrower has lived and where the borrower has worked.

KEntucky FHA requirements dictate furnishing at least a two-year work history, but that requirement shouldn’t be mistaken for an employment minimum. According to the FHA’s official site, “FHA does not impose a minimum length of time a borrower must have held a position of employment to be eligible for a mortgage.”

What does a buyer do if they can’t show at least a two-year work history? Some KEntukcy FHA home loan applicants who recently graduated from college or have separated from the military may wonder if they have reduced chances of getting an FHA loan approved because they can’t show a history of traditional employment.

In the case of military members, especially Guard and Reserve members who may have joined and been called to active duty right away because of wartime operations, the military service itself is viewed as employment.

There’s no liability or negative consequences as a result of military service, especially where a government home loan application is concerned. The FHA requests a copy of discharge paperwork or related documents to establish a military work history.

For students, part-time work and internships may be interpreted as employment under the right circumstances, but regardless all the FHA requires is supporting documentation of college attendance. College transcripts are usually sufficient. There is one caveat–according to the FHA official site, “…You must prove steady income for at least three years, and demonstrate that you’ve consistently paid your bills on time.”

Steady income for college students may be more difficult to demonstrate, but those on work-study programs, lengthy internships or other programs may find it easier to get Kentucky FHA approval for a home loan than those who studied full-time but did not work. In the end, it’s up to the lender and the FHA to determine what college experience is worth on the Kentucky FHA loan application.

How Long Do I Have To Be Employed to Qualify for an Kentucky FHA Loan?

Free Application and Credit call today 502=905=3708 or email kentuckyloan@gmail.com
Free Application and Credit call today 502=905=3708 or email kentuckyloan@gmail.com
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

Recent Prospect Kentucky Area Home Sales 40059


Recent Prospect Kentucky Area Home Sales 40059

ADDRESS / OWNER SALES PRICE / DATE TYPE PARCEL ID
6904 WYTHE HILL CIR 6904 WYTHE HILL CIR
HULBERT LELAND T Sr
$277,500
11/04/2011
0.5963 AC LOT 3 HUNTING CREEK SEC 1 A PB 21 PG 27 155200030000
6926 WYTHE HILL CIR 6926 WYTHE HILL CIR
DUVALL SCOT A
$333,000
03/07/2011
HUNTING CREEK SEC 1 A 155200140000
6928 WYTHE HILL CIR 6928 WYTHE HILL CIR
HANNAH DWIGHT
$340,000
09/19/2011
LOT 15 HUNTING CREEK SUBDIVISION SEC 1A, PB. 21, PG. 27, 0.4053 AC +/- 155200150000
7006 FOXCROFT PL 7006 FOXCROFT PL
THACKER GEORGE W III
$314,500
10/27/2010
HUNTING CREEK SEC 1 B 1 155300580000
7409 SHADWELL LN 7409 SHADWELL LN
MARKHAM JENNIFER
$254,000
03/08/2012
LOT 62 HUNTING CREEK SEC 1 B 1 PB 21 PG 28 0.6053 AC 155300620062
6408 DEEP CREEK DR 6408 DEEP CREEK DR
KIDMAN ERIN H
$395,000
09/23/2011
0.4767 AC LOT 187 HUNTING CREEK SEC 5 PB 25 PG 5 158201870000
6203 DEEP CREEK DR 6203 DEEP CREEK DR
STOVALL JEFFREY G
$355,000
02/28/2012
LOT 232 HUNTING CREEK SEC 6 PB 27 PG 59 0.4133 AC 161002320000
6310 DEEP CREEK DR 6310 DEEP CREEK DR
POSNANSKY BRIAN E
$239,000
12/28/2011
LOT 248 HUNTING CREEK SUBDIVISION SEC 6, PB 27 PG 59, 0.3747 AC +/- 161002480000
6301 DILLARD CT 6301 DILLARD CT
PHILLIPS MARY LISA
$289,500
05/13/2011
LOT 332 HUNTING CREEK SUBDIVISION SEC 7, PB. 28, PG. 54, 0.6679 AC +/- 162203320000
7516 ROCKINGHAM RD 7516 ROCKINGHAM RD
SAUER MICHAEL B
$230,000
08/26/2011
HUNTING CREEK SEC 7 162203360000
7504 ROCKINGHAM RD 7504 ROCKINGHAM RD
WRIGHT HEATHER
$268,500
11/08/2011
LOT 345 HUNTING CREEK SUBDIVISION SEC 7, PB. 28, PG. 54, 0.4413 AC +/- 162203450000
7521 ROCKINGHAM RD 7521 ROCKINGHAM RD
TATE ROBERT L
$365,000
07/21/2011
HUNTING CREEK SEC 7 162203680000
6604 GUNPOWDER LN 6604 GUNPOWDER LN
WILLIAMS STUART JOSEPH
$235,000
09/16/2010
FOX HARBOR SEC 2 APP 100 X 157 164400790000
6709 GUNPOWDER LN 6709 GUNPOWDER LN
GREENE WILSON W
$327,000
11/07/2011
0.4553 AC LOT 89 FOX HARBOR SEC 2 PB 29 PG 70 164400890000
8029 MONTERO DR 8029 MONTERO DR
SCHEITLIN CONSTANCE J
$249,000
09/20/2011
LOT 421 HUNTING CREEK SUBDIVISION SEC 0-2, PB. 30, PG. 14, 0.4366 AC +/- 165204210000
7915 WESTOVER DR 7915 WESTOVER DR
ELMORE PATRICIA A
$330,000
11/23/2010
HUNTING CREEK O-3 165304370000
8309 STAR POINT CT 8309 STAR POINT CT
MCDEARMAN MICHAEL A
$265,000
01/21/2011
HUNTING CREK SECTION 0-4 166504690000
8201 MONTERO DR 8201 MONTERO DR
COYLE JENNIFER M
$235,000
12/09/2011
0.4657 AC LOT 481 HUNTING CREEK SEC 0-4 PB 31 PG 4 166504810000
6910 TIMBER RIDGE CT 6910 TIMBER RIDGE CT
ETHERTON DON E Sr
$270,000
09/15/2011
0.3316 AC LOT 22 TIMBERLAKE SEC 1 PB 32 PG 90 171100220000
2 RIDING RIDGE RD 2 RIDING RIDGE RD
ZAUSCH JO F
$260,000
08/10/2011
LOT 2 RIDING RIDGE SUBDIVISION, PB. 34, PG. 21, 0.1435 AC +/- 174100020000
13 RIDING RIDGE RD 13 RIDING RIDGE RD
HILL YANCHUN GRAHAM
$287,500
02/15/2012
LOT 17 REV OF LOTS 14-21 RIDING RIDGE SUB PB 34 PG 21 (ORIGINAL PLAT) 0.1212 AC 174100170000
22 AUTUMN HILL CT 22 AUTUMN HILL CT
GAMMEL ALLEN
$457,000
09/16/2011
LOT 22 MINOR PLAT DB 5274 X 542, 5304 X 714, 0.524 AC +/- 174600220000
14 AUTUMN HILL CT 14 AUTUMN HILL CT
MAYHUGH JOAN H
$330,000
03/09/2012
0.3299 AC LOT 14A MINOR PLAT DB 5646 PG 98 (REVISION OF LOTS 13, 1746014A0000
7805 DEEP TRAIL CT 7805 DEEP TRAIL CT
CISSELL DEBORAH
$355,000
03/01/2011
.3668 AC+- DEEP COVE WOODS 244201690000
7802 DEEP TRAIL CT 7802 DEEP TRAIL CT
SCHMIED BRAD
$376,000
02/17/2012
LOT 171 & 171A MINOR PLAT DB 5828 X 287, 0.6253 AC +/- 24420

With homes sold within 6 months and are located within 5.0 miles.

Address Radius
From
Property
Sales
Date
Sales
Price
Square
Feet
8117 Montero Dr
Prospect, KY 40059
.35 03/22/2012 $237,300 0
7509 Rockingham Rd
Prospect, KY 40059
.40 04/24/2012 $275,000 0
6301 Rockingham Ct
Prospect, KY 40059
.41 04/04/2012 $235,000 0
14 Autumn Hill Ct
Prospect, KY 40059
.43 03/09/2012 $330,000 0
6203 Deep Creek Dr
Prospect, KY 40059
.47 03/02/2012 $355,000 0
7409 Shadwell Ln
Prospect, KY 40059
.50 03/08/2012 $254,000 0
8300 Westover Dr
Prospect, KY 40059
.57 05/14/2012 $345,000 0
7206 Fox Harbor Rd
Prospect, KY 40059
.76 04/18/2012 $297,500 0
6923 Wythe Hill Cir
Prospect, KY 40059
.89 04/02/2012 $250,000 0
7017 Rock Hill Rd
Prospect, KY 40059
1.00 04/04/2012 $245,000 0
Neighborhood High: $355,000
Neighborhood Low: $235,000
Neighborhood Avg: $282,380
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*