Tag: Mortgage Credit Certificate

>The Kentucky MCC Program

The Kentucky MCC Program!!

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The MCC (Mortgage Credit Certificate) program is a state tax credit program currently available to qualified buyers. It allows a tax credit of up to 25% of the mortgage interest paid each year, not to exceed $2000, for qualified buyers, for each year of ownership during the term of the mortgage. The MCC is available to qualified first-time home buyers in all Kentucky counties and to all qualified homebuyers in certain areas, including Jefferson, Oldham, Bullitt, Nelson, Meade, Hardin and Spencer County

via >The Kentucky MCC Program

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

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

Louisville Ky First Time Home Buyer

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Louisville Ky First Time Home Buyer Loan

Many home loan programs have been specifically created for first time home buyers. These loans feature low down paymentsand approval guidelines that make it easier to qualify. Some of the more popular first time homebuyer programs are listed below. .

Louisville KY First Time Buyers Loans

What is a First Time Buyer Loan?

Kentucky FHA and VA Loans for First Time Buyers

Who is Eligible for a Kentucky First Time Buyer Loan?

Louisville Ky Community Home Buyer Programs

What is Escrow?

Mortgage Credit Certificates from KHC

What is a First Time Buyer Loan?

Many people dream of owning a home but the home loan process can be confusing for many first time home buyers. Mortgage lenders offer first time buyers with many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments, or reduced taxes.

FHA and VA Loans for First Time Buyers Apply Online

First time homebuyers often experience the most difficulty amounting a significant down payment and everyone should have the opportunity to buy a home. For this reason the Federal government has developed two loan programs to assist homebuyers that have a little or no down payment. These programs are called the Kentucky Federal Housing Administration (FHA) and the Kentucky Veteran’s Administration (VA). These programs are not solely intended for first time home buyers; your home loan advisor will be able to determine if you qualify and if so which program is acceptable for your needs. Kentucky FHA and VA loans can be especially advantageous when combined with a HFA or MCC first time homebuyer program.

AWho is Eligible for a First Time Buyer Loan?
Kentucky First time home buyer programs are designed to help borrowers who may not have enough money to pay the full cost of the down payment or the closing costs on a mortgage. These programs make obtaining a mortgage more cost effective. There are even programs specifically for residents of each state. First time home buyer programs are available to those who have not owned a home for the past three years.

Community Home Buyer Programs
Kentucky  Community homebuyer programs reduce the down payment the borrower must pay to 3%, which must be the borrower’s own funds. The closing costs can be gift funds, a grant, or seller assistance up to 3% of sale price. This type of home loan requires the home buyer to take a class on home ownership in their state. Upon completion of the class, the homebuyer will receive a certificate that reduces the cash requirement and expands the qualification ratios. Community homebuyer programs have been making it possible for many people to have the opportunity to buy a home.

What is Escrow?

Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of an event. In simpler terms, escrow is where the transaction changes hands and prevents the seller from not receiving the money from the sale and prevents the buyer from not receiving the home that was purchased. Escrow is important to both buyers and sellers during the mortgage process.

Mortgage Credit Certificates
A Mortgage Credit Certificate or MCC from KHC -Kentucky Housing Corp is a certificate awarded by your local government agency authorizing the home loan borrower to take certain federal income tax credits. The credits awarded help to free up funds and make the monthly home loan payments more affordable for the homeowner. First time home buyers are typically the candidates eligible for an MCC but in special cases that you may discuss with your home loan advisor this requirement may be waived. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative.

Louisville Ky First Time Buyers Program
First time buyer programs in Louisville can make securing a Louisville home loan easier and more affordable. Contact us at 502-905-3708 for your Louisville Ky  mortgage to begin your first time buyer loan.

Interest Rates

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KHC Mortgage Interest Rates as of 11/09/2011, 10:00 a.m. ET

Rates subject to change without notice.

Secondary Market Interest Rates

Loan Type

Rate without DAP*

Rate with DAP

FHA only



RHS only



VA only



* DAP – Down Payment Assistance Program, including Regular DAP and HOME DAP


MRB Interest Rates

  • For all approved KHC lenders
  • 60-day reservation for new and existing properties

640+ Credit Score Mortgage Revenue Bond (MRB) Interest Rates

  • KHC-funded down payment assistance may be utilized with these rates

Loan Type

Rate without DAP

Rate with DAP

*Government Rates only



* Government includes FHA, RHS, and VA.




Louisville Kentucky VA Mortgage and home loan Program Quick Reference

VA Program Quick Reference Terms 15 & 30 Year Fixed

Loan Amount Max Purchase = $1,500,000 max Refinance = limited to the max LTV of the property value on the appraisal

. To calculate max loan amount (and guaranty), visit http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf

Max LTV/CLTV Purchase & IRRRL = 100%/100% Cash-Out Refinance = 90%/90% (based on appraised value)

Min. Credit Score 620 up to $417,000, 640 for Interest Rate Reduction Refis 720 for $417,000-$650,000 740 for loan amounts > $650,000 Borrower Eligibility Veterans who served on active duty after 9/15/40 and who were honorably discharged /released from active duty.

Occupancy Owner occupied by veteran and/or spouse. Ratios 29%/41% – ratios may be exceeded with acceptable AUS and underwriter’s approval. Transaction Types Purchase, Interest Rate Reduction Refinance & Cash-Out Refinance Income Documentation Full/Alt Residual Income Refer to Residual Income Table in VA Guidelines for specific requirement, Chapter VII. Assets Less than or = $417,000 None required $417,000 – $650,000 6 months PITI Greater than $650,000 12 months PITI Property Types SFR, 2-4 units, PUDs & VA-approved Condos Appraisal IRRRL: 2055 or full appraisal by VA-approved appraiser Purchase & Cash-Out: Full appraisal by VA-approved appraiser Loan amounts > $650,000: Require full appraisal by VA-approved appraiser and field review

. Energy Efficient Mortgage Up to $6,000 of the loan proceeds may be used to reimburse the veteran for the cost of energy efficient improvements. Funding Fees Refer to the Funding Fee Table in VA Guidelines, Chapter XII. Seller Concessions Limited to 4% maximum

Kentucky First Time Home Buyer Grants and Loan Programs

Kentucky First Time Home Buyer Grants and Loan Programs.

Credit Fico Score for a Kentucky Mortgage FHA VA KHC

Credit Fico Score for a Kentucky Mortgage FHA VA KHC.

As a rule of thumb, however, a credit score below 640 will make buying a home very difficult. A FICO score below 640 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 640, recognizing that other factors weigh in the decision and that some banks may require a higher score.

Joel Lobb
Senior  Loan Officer

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


How do you calculate income for self-employed borrowers Kentucky Mortgage?

How do you calculate income for self-employed borrowers?.


Under normal Fannie Mae underwriting standards, a borrower is considered self-employed if he or she owns more than 25% of a business from which income is derived. Any lower percentage ownership and a borrower can simply be considered employed by the firm (Yes, this is a help for co-owners of a small business – if you own less than 25% you don’t even have to read this article).

How do you calculate income for self-employed borrowers Kentucky Mortgage?
Self-employed borrowers who want to go the full documentation route must be able to provide the following:

1) two years of business tax returns; 2) two years of personal tax returns; 3) a letter from a CPA confirming two years of self-employment; and 4) a year to date profit and loss statement. If there are any problems with this information, then additional documentation will be required, such as letters from accountants, business bank statements or other financial records.

Underwriters average the net income to the business owner over the past two years to obtain an estimate of total income.If a business owner suffered a difficult year in 2011, but in all years before and after income was significantly higher, then the averaging method of analyzing income would unfairly deny the borrower a standard loan.

Kentucky FHA Mortgage Loans—updated Guidelines

By LYNNLEY BROWNING–New York Times Article
  Kentucky FHA Mortgage Loans—updated Guidelines

Kentucky home buyers with sketchy credit who are unable to qualify for conventional mortgages may now find it more costly and difficult to obtain loans insured by the Federal Housing Administration.

New rules that went into effect this month adjust the two types of mortgage insurance paid by consumers for loans insured by the F.H.A., which is part of the Department of Housing and Urban Development.

One change raises the annual insurance premium, paid monthly by the borrower, setting it at 0.85 percent to 0.9 percent of the loan balance, depending on the down payment or equity owned; the amount used to be 0.5 percent to 0.55 percent. The other change lowers the one-time upfront insurance premium that borrowers must pay, to 1 percent of the loan balance from 2.25 percent.

The upfront premium is paid in a lump sum at closing or added to the loan balance, unlike the monthly premium, which is paid over the life of the loan in addition to the interest and principal.

The decrease in the upfront premium, welcome though it might seem to some customers, does little to offset the effects of the monthly increase, called “really pretty hefty.”

Kentucky F.H.A. loans are usually taken out by buyers who cannot qualify under the stiffer down-payment requirements of Fannie Mae or Freddie Mac, the government-controlled buyers of loans. F.H.A. requires 3.5 percent, while Fannie Mae typically requires 5 to 15 percent or more, depending on the type of loan.

The changes, under an example provided by the F.H.A., mean that a borrower who puts 3.5 percent down on a $154,000 house with a 30-year fixed-rate mortgage at 5 percent (such a consumer typically earns a gross annual income of $54,000, according to the agency) and who finances the upfront premium into the loan will see monthly mortgage payments, including taxes, interest and the two insurance premiums, rise to $1,238 from $1,205. The example is based on median data, including property taxes put at about 2.5 percent of home value. That increase includes the drop in the upfront mortgage insurance, to $1,486 from $3,344 — but also includes the rise in the monthly insurance premium, to $111 from $68.

Last August, President Obama signed into law a bill authorizing the F.H.A. to increase premiums to shore up its insurance funds; the agency had been authorized to raise the annual premium to as much as 1.55 percent.

Conventional loans, which conform to Fannie and Freddie underwriting guidelines, do not require upfront mortgage insurance. But some may require monthly private mortgage insurance, if the borrower puts less than 20 percent down toward the purchase, or has less than 20 percent equity in a refinancing.

Kentucky F.H.A. borrowers, meanwhile, can stop paying the monthly mortgage insurance only after five years and when their loan-to-value ratio reaches 78 percent, at which point they have 22 percent equity in their home.

Kentucky F.H.A. loans are typically offered by niche direct lenders, and because of the insurance, they often carry interest rates equal to or slightly below those of conventional loans.

In October, the F.H.A. set a minimum FICO score of 500 for borrowers who want an Kentucky  F.H.A.-insured loan — the first time a minimum was set. It also introduced a new minimum down payment of 10 percent for borrowers with FICO scores below 580. (Those above 580 still pay a minimum 3.5 percent.)

The issue for the F.H.A, Mr. Harriott said, is that the realm of borrowers has widened. “We see executives of little companies, teachers, people making $200,000 a year, doing an F.H.A. loan, because they’ve gotten into a financial situation,” he said, adding that Kentucky F.H.A. loans are perceived as safe by investors because of the insurance.


 Kentucky FHA Mortgage Loans—updated Guidelines

First Time Home Buyer Kentucky

First Time Home Buyer
 Programs in Kentucky
Complete First Time Home Buyer Programs Available in Kentucky.

The state agency created by the legislature in Kentucky to offer first time home buyer programs is the Kentucky Housing Corporation. Here is a summary of the current first time home buyer programs that are offered:

Regular Down payment Assistance Program (DAP)

Assistance up to $5,000.
Available to all KHC first mortgage loan recipients.
Repaid over 7 or 10 years at a low fixed interest rate (6.0%)


Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.

HOME Special Program

Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Purchase price may not exceed $200,000.
Eligible borrowers include:
Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
Households where at least one of the home buyers is age 62 or older.

HOME Family Program

Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Purchase price may not exceed $200,000.
Eligible borrowers include:
Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

For complete details on these first time home buyer programs available to Kentucky residents, visit the Kentucky Housing Corporation website.

It is highly recommend that you also visit the First Time Home Buyer Grants page.
Kentucky First Time Home Buyer Programs

Getting a property in Kentucky may be one of the smartest decisions you will ever make. Kentucky first time home buyer programs give simple programs for those who are buying a house for the first time.

They help first time home buyers offering programs to assist first time home buyers purchase houses. Using their help you can qualify for low interest rates and reduced tax rates through the first time home buying program. There are US government, state offerings and low down costs loans available to qualified first time buyers and many more options.

Most Kentucky first time home buyer programs include the Federal Housing Administration (FHA) and the Veteran’s Administration (VA) loans.
View the list below of Kentucky first time home buyer programs:

•Covington Homebuyer Assistance Program
•Fayette County Local Development Corporation First Time Homeowners Assistance Program
•Jefferson County Home Ownership Assistance Program
•Kentucky FHA Home Loan
•Kentucky First Time Home Buyer Loans
•Kentucky Rural Home Loan
•Kentucky VA Home Loan
•Louisville New Construction Home Ownership Program
•Multi Counties REACH Inc First Key DownPayment Assistance Program
•Multi Counties- The Center For Women and Families, Inc. Common Wealth Individual Development Account Program”

Kentucky Mortgage Lenders
Kentucky First Time Home Buyer Programs

Refinance and Purchase – Direct Lender. Get Pre-Approved In Minutes. Loan Approval in Hours and Close in 10 Days. Get FHA Qualified and Approved. USDA Home Loans – $0 Down Financing Available. Buy & Renovate Your Home with a 203K Loan. VA Home Loans – $0 Down Up To $729,000. Mobile Home Financing, Single Families, 2-4 units, condos. Min. Loan Amount $80K for all loans. Min. Credit Score of 580 (FHA). 620 ( VA, USDA). Call Now For a No Cost Consultation. 502-905-3708 or email us at kentuckyloan@gmail.com for a free credit report an application
KHC Mortgage Credit Certificate – More Great News For First-Time Home Buyers

The KHC Mortgage Credit Certificate (MCCs) are a means of providing financial assistance to First-Time Home buyers (with some exceptions) for the purchase of qualifying Residences.

The 2009 KHC Mortgage Credit Certificate Program is designed to benefit purchasers of certain new or existing housing units located in the Commonwealth of Kentucky.
•What is a Mortgage Credit Certificate?

An MCC “converts” a portion of an available mortgage loan interest deduction into a credit against the homeowner’s federal income taxes. This tax credit has the effect of reducing the mortgage interest rate and mortgage loan payments for persons who make qualified purchases of Residences by reducing the federal income tax liability of such persons.

Table I below shows how an MCC can reduce the”effective” mortgage interest rate on a conventional mortgage.
•What is the difference between a “tax credit” and a “tax deduction”?

A “tax credit” entitles a taxpayer to subtract the amount of the credit from his other total federal income tax liability. A “tax deduction,” on the other hand, is subtracted from adjusted gross income before federal income taxes are computed.
•Who is eligible for the MCC?

Any first time home buyer, defined as a person who has not owned a home for the past three years and also meets the KHC income limits.
•Is the MCC program a KHC program?

The MCC program is being administered by KHC. However, your loan program must be a non-KHC loan. You can not obtain a KHC loan and qualify for an MCC.
•How does an MCC “reduce” the mortgage interest rate?

As Table I below indicates, a Borrower who purchases an Eligible Residence with a 5.50 percent fixed rate 30-year mortgage of $100,000 would pay $5,500 in interest payments during the first year of the mortgage.

If the Borrower holds a 25 percent MCC, up to $1,375 (25 percent of $5,500) of the mortgage interest paid could be converted into a federal tax credit, which reduces that Borrower’s federal income tax liability, i.e., the credit reduces the amount of federal taxes payable by the Borrower, up to the amount of the credit.

The remaining 75 percent of the mortgage interest paid, in this case, $4,125, can still be taken as a tax deduction in arriving at the Borrower’s adjusted gross income, thus reducing the amount of the Borrower’s income subject to federal income taxation.

Table I below shows that if this Borrower has an annual tax liability of $1,375 or more after all other deductions and credits, the effective rate of interest paid on the mortgage is reduced to 4.125 percent after the MCC tax credit is taken into account, i.e., annual interest of $4,125 on a $100,000 mortgage loan corresponds to a 4.125 percent interest rate on that loan.

This effect, however, is achieved only when the MCC holder has a sufficient income tax liability to receive the entire benefit from the MCC tax credit.

Table I: Effective Reduction of MortgageInterest Rate Through Use of a 25% MCC

The MCC tax credit reduces the amount of federal income taxes otherwise due by the Borrower. The benefit to the Borrower cannot exceed the Borrower’s federal income tax liability for the year, after other credits and deductions have been taken into account.

However, if the Borrower is unable to use all of the available MCC tax credit in any year, the unused portion of the tax credit can be carried forward three tax years or until used, whichever comes first. A Borrower may want to consider adjusting his or herf ederal income tax withholding (by filing an amended IRS Form W-4) to spread the benefit of the MCC tax credit over the entire year.

•How does a First-Time Home Buyer obtain an MCC?

A First-Time Home Buyer who is purchasing a New or Existing Residence applies for an MCC through a Participating Lender at the same time as applying for a mortgage loan.
•May an MCC be used in connection with a refinanced loan or with an


An MCC cannot presently be issued to a homeowner who is refinancing an existing mortgage loan, except in connection with certain construction loans. An MCC may be assumable by certain qualified buyers.

Contact your lender for additional information.
•What are the Purchase Price and Income Limitations on MCC Applicants?

MCCs are available to eligible first time home buyers purchasing eligible homes in the commonwealth. Your lender will advise you regarding the underwriting procedures required to determine qualification and eligibility of each Applicant for an MCC. Participating Lenders will process the underlying mortgage loans using standard procedures, with adjustments to those procedures as needed in order to satisfy the Program Requirements.
•Can I receive the KHC MCC through any lender?

No. The MCC Program is only offered by qualified participating lenders and is not available through all mortgage lending companies.
Best 0-5% Down Firsthomebuyer Programs
Progressive Payment Saver Buydown Program-Ground-breaking 30 year fixed loan which offers increased purchasing power and low initial mortgage  rate of 3.00% (APR 3.10%) as of 5/26/10.

$8,000 Tax Credit-Deadline June 30th, 2010

New!-Fannie Mae HomePath-Purchase FNMA foreclosure with 30 year fixed loan and NO PMI 

USDA Rural Loan-30 year fixed zero down loan with 620 score. 0 PMI or mortgage insurance.

My Community Plus -Exclusive 3% down program for Teachers, Firefighters, Paramedics, Police Officers, Nurses and other Healthcare workers, and Military Personnel-Veteran. Easier qualifying guidelines and discount on closing costs.  

Fannie Flex 95% Financing Program-Great FNMA 30 yr fixed loan if you plan on living in the home a long time.

Fannie Mae Expanded Program-only 620 credit score may qualify

Home Possible-Freddie Mac Community Lending program designed to meet the needs of low and moderate income borrowers by providing financing up to an LTV of 97%

FirstHomeBuyers Down Payment Assistance Program-Get up to $25,000 for down payment or earnest money deposit. Pay off debt to help you qualify.

Government Loans
FHA requires only 3.5% Down and VA Loans requires 0 Down. Usually, fair to marginal credit will qualify for low fixed rate mortgage rate program. 

FHA-Best 30 year fixed program with low rate. If you have bad credit, you should contact a loan officer to assist you in improving your credit and scores. 

FHA $100 Down HUD Home Loan Program-Purchase HUD Foreclosure Home with $100 down payment.   

Kiddie Condo-Parent(s) can co-sign for son and daughter without occupying property.

Streamline 203k Renovation Loan-Repairs and home improvements may be added into mortgage to fix up home. Great for foreclosures and short sales!

2-1 Buydown-Great 30 year fixed loan with low initial rate of 3.00% (APR 3.12%-5/07/10)-not adjustable rate mortgage!

VA-0% Down Payment geared toward Veterans and active Personnel in Navy, Army, Marine Corps, Air Force, Coast Guard, and National Guard.

First Time Home Buyer Programs in Kentucky

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