2013 First Time Home Buyer Mortgage Loans in Louisville Kentucky


To get a First time home buyer loan in Louisville Kentucky in 2013, you will need to look at these following three first time home buyer loans program in Louisville.

Louisville Ky First Time Home Buyer Loan

1. Louisville KY FHA Loan Program-This program allows for 3.5% down payment and low 30  30 year fixed rate loans currently. The minimum credit score for a Louisville KY FHA loan with us is 640. You have three scores, and we take the middle credit score.

The down payment can be saved or gifted from a family member, or borrowed from a 401k loan . The 3.5% down payment cannot be borrowed from a lending instiution or off a credit card.

The current debt to income ratios for a Louisville KY FHA loan is 31% and 43%. This means  that your current house payment, with taxes and insurance included, cannot be more than 31% of your gross monthly income. The 43% means the new house payment and total debts on credit report along with child support or 401k loans.

For example if you made 4k gross a month, the maximum house payment would be $1240 piti, and the maximum total bills outstanding each month, including new house payment would be $1720.00

There are some compensating factors that will allow for a higher house payment if you have  good credit scores (740 score or higher) and a large down payment. (more than the minimum 3.5% down payment)

If you have had a bankruptcy or foreclosure in the past, you will have to need be out of the  bankruptcy for at least 2 years with good reestablished credit and a foreclosure must be 3 years from the when the masters commissioners deed was filed at courthouse.

2. Fannie Mae Loan Program -This requires 5% down, and it must be from your own saved funds, no gifted funds from family members. The 30 year fixed rate is a little higher than the FHA loan, but the mortgage insurance is much cheaper. If you have a credit score of 740 or higher, and can put down the 5%, this is better program for you due to lower monthly payments and less upfront and monthly mortgage insurance.

Most lenders will want a 680 credit score, with less than 20% down, and the seasoning for foreclosures and bankruptcies are much tougher than the FHA loan program.

Fannie Mae will require 5 years or more on a foreclosure, and 4 years on a bankruptcy.

The debt to income ratios are a little tougher too, with them being at 35% and 45% respectively.

3. Louisvile Kentucky VA Loan Program -This requires no down payment, but you must be a qualified veteran or active duty military to participate in the program. The current minimum credit score is 620, with no bankruptcies or foreclosures in the last 2 years.

The maximum debt to income ratio is usually set at 41%, but can go higher with compensating factors, such as over 740 credit score, large down payment, or high residual income. The residual income is set by each region, and you can clink the link below for more info about this .http://kentuckyvaloan.com

 502 905 3708
kentuckyloan@gmail.com
NMLS #57916
Jo
Advertisements

Louisville Kentucky mortgage rates


Louisville Kentucky mortgage rates.

Kentucky Homepath Financing 2012 Fannie Mae Properties in Kentucky


HomePath Financing for Kentucky Homebuyers 2012

HomePath Mortgage loans have the following characteristics: HomePath Renovation loans have the following characteristics:
HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.

Benefits to You, the Borrower

  • Low down payment and flexible mortgage terms (fixed–rate, adjustable rate, or interest–only).
  • Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • No lender-requested appraisal.
  • No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
  • Expanded seller contributions for closing costs allowed.
  • Available for primary residences, second homes and investment properties.
  • Many condo project requirements are waived; ask your lender for details.
  • For more information, contact a HomePath Mortgage lender or click here for the Home Buyers Guide.
HomePath Renovation Mortgage allows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation – up to 35% of the as completed value, no more than $35,000.

Benefits to You, the Borrower

  • Low down payment and flexible mortgage terms (fixed- rate or adjustable-rate).
  • Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • Renovation amount based on appraisal “as completed” value.
  • No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
  • Expanded seller contributions for closing costs allowed.
  • Available for primary residences, second homes, and investment properties.
  • Many condo project requirements are waived; ask your lender for details.
  • For more information about the renovation process, contact a HomePath Renovation Mortgage lender.
Note: Potential buyers should always use the lender and financing product that best meets the needs of the buyer and property, and should always consider requesting a home inspection of the property. *Ask your lender for cost details for loans with no mortgage insurance.

Credit Scores For Louisville Kentucky FHA Loans


Credit Scores For Louisville  Kentucky FHA Loans.

Louisville Ky FHA Loans


Louisville Ky FHA Loans

The Federal Housing Administration (FHA) is a federal agency within the U.S. Department of Housing and Urban Development (HUD). FHA’s primary objective is to assist in providing housing opportunities for lo to moderate income families. FHA has both single family (1-4 unit homes) and multi-family (5 or more units) mortgage lending programs. The agency does not generally provide funds for the mortgages, but rather insures home mortgage loans made by private industry lenders such as mortgage bankers, savings and loans and banks.


Is there a Loan Limit on Louisville Ky FHA Loans?
FHA Maximum Loan Amounts are set by HUD for every county in the United States. Maximum loan amounts vary from one county to another. It is critical that the borrower’s loan amount, including financed closing costs, not exceed the maximum set by FHA for the county in which the subject property is located. There are no income limits on Louisville Ky FHA Loans  . Check with you Loan Consultant for the maximum Mortgage amount allowed in the county you are considering purchasing a home in.


Is Mortgage Insurance Required On Louisville Ky FHA Loans?
FHA is a government insured program with a unique mortgage insurance program. Although not as expensive monthly, you have an up front MIP fee. FHA requires a mortgage insurance premium on the 203(b) program. An up front premium of  1.0% of the loan amount is paid at closing and can be financed into the mortgage amount. In addition there is a monthly MIP amount included in the PITI of 1.15% . Condos do not require up front MIP, only monthly MIP.


Can I Use Gift Funds for the Down Payment for a Louisville Ky FHA Loans   ?

One of the most popular aspect of FHA financing is the ability to receive your down payment as a gift. It just needs to be from a relative. The down payment can be 100% gift funds. This is one of the key benefits to the Louisville Ky FHA Loans and FHA program. Most conventional mortgages do not allow 100% gift funds. Generally the borrower must have 5% of the funds.

Verification of the source of gift money is not required. However, it is necessary that the gift funds be deposited in the borrower’s bank account, or in an escrow account, prior to underwriting approval. Proof of deposit is required.

Gift donors are restricted primarily to a relative of the borrower. They can also be certain organizations, such as a labor union or charitable organization. Contact your Loan Consultant for complete information.


What are the Rules Regarding Bankruptcy for a Louisville Ky FHA Loans?
FHA may have the most lenient policies towards bankruptcy, but you still must have a valid reason and re-established credit. Generally, a bankruptcy will not necessarily disqualify a potential borrower. Guidelines are as follows:

Chapter 7: Two years must have passed since the bankruptcy was discharged. (Note: Discharge, not Filing Date) The borrower must have re-established good credit without delinquencies for two years (or has chosen not to incur new credit obligations), and has demonstrated an ability to manage financial affairs. If the borrower does not incur new credit, such thing as, Car Insurance, Telephone, Cable, Utilities, Medical Payments, Etc. will be used to demonstrate re-established credit.

Chapter 13: A borrower currently paying off debts through this process may qualify if a minimum of one year of the pay out period had elapsed and payment performance has been satisfactory with no new derogatory credit and the borrower must receive court approval to enter into the mortgage transaction.

Louisville Ky FHA Loans

Call me for your next Louisville Kentucky FHA Loan; I have closed over 300 FHA loans in my career