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