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What are the Kentucky FHA Credit Score Requirements for Mortgage Loan Approvals?

This content provides detailed information about Kentucky mortgage loan options, credit score requirements, and tips for improving credit scores. It covers FHA loan requirements, credit bureau scores, credit utilization, and factors affecting mortgage approval. The post emphasizes the importance of credit history and offers specific advice for maintaining a favorable credit profile to qualify for a mortgage in Kentucky.

The Best Kentucky Mortgage Loan Options When Looking for your first house in Kentucky Kentucky First-time Home Buyer Programs👀💯👇‼

Kentucky Mortgage Requirements for FHA, VA, USDA and Fannie Mae

FHA loan in Kentucky you will be confronted with minimum credit score requirements set forth by FHA and the lender. Even though FHA will insure the mortgage loan at a certain credit score, you will see that lenders will create “credit-overlays” to protect their risk and ask for a higher credit score.

So keep in mind when you are getting an FHA lenders will have higher credit score minimums in addition to the FHA Mortgage Insurance program.

For a Kentucky Homebuyer wanting to purchase a home or refinance their existing FHA loan, FHA requires a 3.5% down payment and the borrower must have a 580 FICO Credit Score. If the score is below 580, then you would need 10% down and still qualify on a manual underwrite.

You must have a FICO score of at least 500 to be eligible for a Kentucky FHA loan. If your FICO score is from 500 to 579, your down payment on the loan is 10 percent of the loan.

If your FICO score is 580 or higher, your down payment is only 3.5 percent. If your credit score is less than 580, it may be more cost-effective to take the necessary steps to improve your score before taking out the loan, rather than putting the money into a larger down payment.

How do they get the credit score: There are three main credit bureaus in the US. Equifax, Experian, and Transunion. The three scores vary but should be relatively close as long as the same creditors are reporting to the same bureaus.

You will get a variation in the scores due to all creditors or collection companies don’t report to all three bureaus. This is why they take the mid score. So if you have a 590 Experian, 680 Equifax, and 620 TransUnion, your qualifying credit score would be 620

Based on my experience with lenders that I deal with in Kentucky on FHA loans, most lenders require 620 middle credit score for consideration for loan approval.

How do they get the score: They take the mid score, so if you have a 590 Experian, 680 Equifax, and 620 TransUnion, your qualifying score would be 620.

Kentucky FHA Loans with less than 620 Score

If your score is below 620, a manual underwrite is where the AUS (Automated Underwriting System) refers your loan to a human being, and they look at the entire file to see if they can overturn and approve the mortgage loan because the Desktop Underwriting Automated Software could not approve you.

With scores below 620, they typically will want to verify your rent history, have no bankruptcies in the last two years, and no foreclosures in the last 3 years.

If you have had any lates since the bankruptcy this will probably result in a denial on a refer manual underwrite file.

Your max house payment will be set at 31% of your gross monthly income, and your new house payment plus the bills you are paying on the credit report cannot be more than 43%.

Typically, on scores below 620 for FHA loans, they will also look at reserves or money you have saved up after the loan is made to try and qualify you. For example, if you have a 401k or savings account that has at least 4 months reserves (take your mortgage payment x 4) and this would equal your reserves. They look at this as a rainy day fund and could help you keep up on your bills if you were unemployed or could not work.

Maximum FHA loan limits in Kentucky are set at $680 for 2022

If you are looking to take a FHA loan in 2022 to buy or refinance a home in Kentucky, please contact me below with your questions about the credit score requirements and how they affect your loan approval.

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

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 600 and 640 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 uses 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:

When applying for a mortgage loan,

lenders will pull what they call a “tri-merge” credit report which will show three different fico scores from Transunion, Equifax, and Experian. The lenders will throw out the high and low scores and take the “middle score.” For example, if you had a 614, 610, and 629 score from the three main credit bureaus, your qualifying score would be 614.

Most lenders will want at least two scores.

So if you only have one score, you may not qualify. Lenders will have to pull their own credit report and scores so if you had it ran somewhere else or saw it on a website or credit card you may own, it will not matter to the lender, because they have to use their own credit report and scores.

Lastly, lenders will pull your credit report for free nowadays so this should not be a big deal as long as your scores are high enough.

The Secondary Market of Mortgage

offered by FHA, VA, USDA, Fannie Mae, and KHC all have their minimum fico score requirements and lenders will create overlays in addition to what the Government agencies will accept, so even if on paper FHA says they will go down to 580 or 500 in some cases on fico scores,

If you have low fico scores it may make sense to check around with different lenders to see what their minimum fico scores are for loans.

The lenders I currently deal with have the following fico cutoffs for credit scores:

FHA–500-580 minimum score

VA—-no minimum score

Fannie Mae–620 minimum score can do no score sometimes

USDA–no minimum score

KHC with Down Payment Assistance –580-620 minimum score.

As you can see, different government-backed loan programs have different minimum score requirements with most lenders for an FHA, VA, or Fannie Mae loan, and 620 is required for the no down payment programs offered by USDA and KHC in Kentucky for First Time Home Buyers wanting to go no money down.

By paying down your credit card balances (credit utilization) and having a good pay history (payment history) ,this is the best way to raise your score.

The credit bureaus don’t update immediately, so I would not add to the balance or open any new bills or have any other lender do an inquiry on your credit report while we wait for the scores to hopefully go up in the next 30 days. Try to keep everything status quo and make your payments on time and keep your balances low or lower than what is now reporting on the credit report.

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How to improve your credit score!

Pay Every Single Bill on Time, or Early, Every Month

Please understand one thing; paying your bills on time each month is the single most important thing you can do to increase your credit scores.

Depending on the credit bureau, there are 4 or 5 main items that determine everyone’s credit score. Of those items, your history of paying bills makes up about 35% of the score. THIS IS HUGE!

Paying your bills on time shows lenders that you are responsible. It will also spare you from paying late fees whether it is a charge from a credit card or an added fee from your landlord.

Use a calendar, or a phone app, or some other organized system to make sure that you pay your bills on time every single month.

MAIN TIP: Do not pay ANY bill late!

Credit Cards: Lower Balances Are Always Better

( If you don’t have a credit card, I suggest getting a secured credit card through Capital one Secured Card Or Open Sky Credit card...click this link here

Another big factor in calculating a credit score is the amount of credit card debt. Credit bureaus look at two things when analyzing your credit cards.

First, they look at your available credit limit. Second, they look at the existing balance on each card. From these two figures an available ratio is developed. As the ratio goes higher, so too will your credit score increase.

Here is one simple example. Suppose a person has the following credit cards, corresponding balances, and credit limits

Credit Card	Current Balance	Credit Limit
Chase Visa	$105	$1,000
MarterCard from local bank	$236	$1,500
BP MasterCard	$87	$500
Totals	$428	$3,000

From these numbers, we get the following calculation

$428/$3,000 = 14%

In other words, the person is using 14% of their available credit and they have 86% available credit. The closer that ratio is to 100%, the better the credit score will be.

MAIN TIP: Keep all credit card balances as low as possible.In this particular example, if they had a problem with their car, or needed medical attention or some other emergency, the person would have the money necessary to handle the situation without incurring new debt. This is wise on the consumer’s part and lenders like to see this kind of money management.

Credit Cards Part 2: 1 or 2 is Better Than a Wallet Full

The previous example showed a person that utilized just three credit cards. This is much better than someone who has 5+ credit cards, all with available balances. Why? Lenders do not like to see someone that has the potential to get too far in debt in a short amount of time.

Some people have 5, 10 or more credit cards and they use many of them. This shows a lack of restraint and control. It is much better, and neater, to have only 2 or 3 cards with low rates that handle all of your transactions. A lower number of cards are easier to manage and it does not give a person the temptation to go on a huge shopping spree that could take years to payoff.

MAIN TIP: Try to limit yourself to no more than 2-3 credit cards.

Keep the Good Stuff Right Where it is

Too many people make the mistake of paying off old debts, such as old credit cards, and then closing the account. This is actually a bad idea.

A small part of the credit score is based on the length of time a person has had credit. If you have a couple of credit cards with a long track history of making payments on time and keeping the balance at a manageable level, it is a bad idea to close out the card.

Similarly, if you have been paying on a car or motorcycle for a long time, do not be in a hurry to pay off the balance. Continue to make the payments like clockwork each month.

An account that has a good record will help your scores. An account that has a good record and multiple years of use will have an even better impact on your score.

MAIN TIP: Keep old accounts open if you have a good payment history with them.

Stop Filling Out Credit Applications

Multiple credit inquiries in a short amount of time can really hurt your credit scores. Lenders view the various inquiries as someone that is desperate and possibly on the verge of making a bad financial choice.Too many people make the mistake of getting more credit after they are approved for a loan. For example, if someone is approved for a new credit card, they feel good about their finances and decide to apply for credit with a local furniture store. If they get approved for the new furniture, they may decide to upgrade their car. This requires yet another loan. They are surprised to learn that their credit score has dropped and the interest rate on the new car loan will be much higher. What happened?

If you currently have 2 or 3 credit cards along with either a car loan or a student loan, don’t apply for any more debt. Make sure the payments on your current debt are all up to date and focus on paying them all down.

In a few months of making timely payments your scores should noticeably go up.

MAIN TIP: Limit your new loans as much as possible

Which credit scores do mortgage lenders use to qualify people for a mortgage?

While it’s common knowledge that mortgage lenders use FICO scores, most people with a credit history have three FICO scores, one from each of the three national credit bureaus (Experian, Equifax, and TransUnion).

Which FICO Score is Used for Mortgages

Most lenders determine a borrower’s creditworthiness based on FICO® scores, a Credit Score developed by Fair Isaac Corporation (FICO™). This score tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk. FICO scores have different names at each of the three major United States credit reporting companies. And there are different versions of the FICO formula. Here are the specific versions of the FICO formula used by mortgage lenders:

Equifax Beacon 5.0
Experian/Fair Isaac Risk Model v2
TransUnion FICO Risk Score 04

Lenders have identified a strong correlation between Mortgage performance and FICO Bureau scores (FICO score). FICO scores range from 300 to 850. The lower the FICO score, the greater the risk of default.

Which Score Gets Used?

Since most people have three FICO scores, one from each credit bureau, how do lenders choose which one to use?

For a FICO score to be considered “usable”, it must be based on adequate, concrete information. If there is too little information, or if the information is inaccurate, the FICO score may be deemed unusable for the mortgage underwriting process. Once the underwriter has determined if a score is usable or not, here’s how they decide which score(s) to use for an individual borrower:

If all three scores are different, they use the middle score
If two of the scores are the same, they use that score, regardless of whether the two repeated scores are higher or lower than the third score

If it helps to visualize this information:

Identifying the Underwriting Score
Example	Score 1	Score 2	Score 3	Underwriting Score
Borrower 1	680	700	720	700

Joel Lobb

Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call: 502-905-3708

fax: 502-327-9119
email: kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

—

NMLS Consumer Access

Accessibility Statement

Privacy Policy

Joel Lobb
Senior Loan Officer

(NMLS#57916)

Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

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). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation

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Kentucky Conventional Loan versus Kentucky FHA Loan comparison chart

This content discusses the credit score requirements, down payment options, and mortgage insurance for Kentucky Conventional and FHA Loans. It also outlines bankruptcy timelines for eligibility and provides contact information for Joel Lobb, a Senior Loan Officer. The disclaimer emphasizes that loan approvals are subject to various qualifications and conditions, and the content is not endorsed by any government agency.

Kentucky FHA Loans are good for borrowers who have the following:

• Credit scores less than 680.
• Less than 5% down payment and no reserves to use.
• Borrowers with past foreclosures between 3 and 7 years old.
• Borrowers with past short sales between 2 and 4 years old.
• Borrowers who need a gift for the down payment and/or closing costs, prepaid taxes and
insurance.
The FHA Mortgage Insurance premium is a premium that exists for the FHA Loan that is
paid up front and monthly by the homebuyer. This premium protects the lender should the
buyer default. They vary per state and per type of loan Kentucky home buyers qualify for. In Kentucky, upfront mortgage insurance premiums are 1.75%.
Below are the rates per type of loan:
• 15-Year Fixed with down payment more than 10%: .45%
• 15-Year Fixed with down payment less than 10%: .70%
• 30-Year Fixed with down payment more than 5%: .80%
• 30-Year Fixed with down payment less than 5%: .85%

Kentucky Conventional loans are usually reserved for the following:

• Credit scores greater than 680
• Greater than or equal to 5% down payment with reserves
• Borrowers with past foreclosures over 7 years old.
• Borrowers with past short sales between 5-7 years old.
• Borrowers who have a lot of money saved up and want to get rid of mortgage insurance within the first 5 years give or take. 20% equity position is needed for no mi

The biggest difference between conventional loans and FHA loans comes down to the mortgage insurance. Mortgage insurance is more expensive for FHA loans, but the trade off is a lower fixed rate than conventional loans.

On Conventional loans there is no upfront mortgage insurance like FHA, and if you have a high credit score you can possibly get a lower monthly mi premium as compared to FHA where everybody gets the same mortgage insurance premium not matter your credit score or down payment.

Lastly, FHA Mortgage insurance is for life of loan, whereas Conventional mortgage insurance or pmi it’s called, is discontinued once you reach the 80% threshold equity position of your home loan.

Again, I would not get too caught in FHA having mortgage insurance for life of loan, because most loans are only kept open a minimum of 5-7 years so a lot of times it may make sense to go with the lower rate and pay the mortgage insurance with FHA because most people don’t hold their mortgage for 30 years.

You can call or text me with your questions and we can compare the differences based on your credit score, down payment and income.

Equal Housing Lender. NMLS#:57916 http://www.nmlsconsumeraccess.org/Rates, terms, and program information are subject to change without notice. Subject to certain approvals, terms and conditions. This is not a commitment to lend.

Not part of any government lending agency and only lending in the State of Kentucky.

Looking at FHA loans vs Conventional loans can arm you with a lot of valuable information as these are the 2 most popular mortgage loan products today. Before getting to the content let’s look at some abbreviations that will need to be defined.

PMI stands for Private Mortgage Insurance
MIP stands for Mortgage Insurance Premium
Credit Scores are a numerical measure of your credit worthiness, the maximum score is 850
Debt-to-Income Ratio measures your monthly income versus your monthly obligations. A good rule of thumb is to try to be below 45%

FHA Loans vs Conventional Loans

Conventional Mortgage Benefits

20% down payment preferred to avoid PMI
No upfront PMI
3% Down Payment Conventional Loan Option is available
PMI expires once principal balance is less than 78%
Houses do not have to be owner-occupied (so they can be used at rentals)
Can purchase any condominium and townhome (no FHA regulations)

Conventional Mortgage Disadvantages

Significant upfront investment (20% down preferred)
Credit score of 620 required
No Down Payment Assistance
Down Payment must be at least 5% unless you qualify for a 3% conventional mortgage
Harder to Qualify for a Conventional Mortgage
No government inspection so the home can be in any quality
Only a portion of a down payment can be a gift
Interest rates are higher than FHA loans

Most of the disadvantages of conventional mortgages stem around qualifications and resources needed upfront. If a borrower has significant resources most of these disadvantages are of little consequence.

Conventional loan rates today

FHA Loan Advantages

The major advantage to going with an FHA loan is that there are much more lax credit standards you have to meet to obtain financing. Usually, FHA mortgages require a lower down payment, can work with lower credit scores, less elapsed time is needed if you have some credit problems (charge-offs, foreclosures) and you can use a non-occupant co-borrower or co-signer (who is a relative) to help you qualify for the loan. That way you can use blended ratios. Blended ratios are debt-to-income ratios that equally blend or combine the primary borrower’s income and the non-occupant co-borrower’s income and monthly payments to help get approval for the loan. Except for HomeReady (formerly Fannie Mae HomePath) mortgages, conventional loans do not allow you to use a non-occupant co-borrower.

Government-backed program. Ideal for first-time home buyers
Easier to obtain, lower credit scores needed and lower minimum down payment
Down Payment minimum is 3.5%
All of down payment can be a gift
Down Payment Assistance Available (in some circumstances)
No reserves required
Minimum credit score is 500 (for 3.5% down payment)
edition to be approved for FHA so there are less potential upfront repairs needed
Lower interest rates than conventional mortgages

FHA Loan Disadvantages

FHA loans require the owners to live in the home
Mortgage Insurance Premium required if borrowers put down less than 10%
Private Mortgage Insurance monthly cost is higher for FHA loans
Government Licensed Inspector required to inspect home before sale can be approved
Condominiums require FHA approval
FHA Loans take longer to process because of government requirements and all mandated repairs have to be completed before sales can be finalized

Most of these disadvantages involve extra requirements or limits added to the process of the house (see Pros and Cons of FHA Loans). Some of these might not be disadvantages depending on one’s personal situation, but they are extra steps to note. Since FHA mortgages are a government program, more care and consideration goes into the process, which may be better in some situations.

FHA loans vs Conventional loans

There are four important numbers in deciding which loan you will go with: credit scores, down payment amount, debt-to-income, and mortgage insurance percentage rate. Conventional mortgages and FHA home loans have different limits and rates which are important to examine. They also have important differences which affect the availability of properties, the condition of the properties one wishes to buy and how your down payment can be paid. So comparing FHA loans vs Conventional loans can sometimes be a tricky endeavor.

Down Payment Requirements

Conventional Mortgages require between 5 and 20% upfront
- In certain circumstances, down payments can be as low as 3% (Conventional 97 loan program)
FHA Mortgages have 2 possibilities
- If Credit Score is 500-579 then 10% down payment is required (not all lenders will even go down this low)
- If Credit Score is 580+ then 3.5% down payment is required

Debt-to-Income Ratio

Conventional Mortgages’ maximum debt-to-income ratio is 43% (hard cap)
FHA Mortgages’ maximum debt-to-income ratio is 45%
- Soft cap as in certain circumstances this can be adjusted up to 50%

Mortgage Insurance Premium Rates

FHA Mortgages
- If Down Payment is 10% or more the percentage is .80% MIP
- If Down Payment is less than 10% the rate is .85% MIP.

Credit Score Minimum Requirement

Conventional Mortgage minimum credit score
- Most lenders will require between 620 and 640
- Some lenders it will be as high as 700
FHA Mortgage minimum credit score
- Credit Score is a minimum of 500 if putting 10% down
- Credit Score is a minimum of 580 if not

These four numbers are important to know and will affect one’s decision to pursue a particular type of home loan. Knowing your combination of numbers as you are looking to buy a house will help buyers find the best loans for their particular situation.

OTHER COMPARISONS

All sellers will take conventional mortgages and some sellers will not take FHA Loans
- People looking for short-sells won’t take FHA because FHA has a longer closing process.
- If sellers know there are FHA repairs that are needed in order to sell their house, they will not always accept FHA financing.

Thus, if one is wanting a low-risk transaction then the FHA home loan route is a better option to pursue, even though it limits your options for homes that you might wish to buy. If one is looking to fix-up a house and raise its equity quickly then a conventional loan is going to be more beneficial because there are no requirements as to the condition of the house and it’s occupied status.

DOWN PAYMENT GIFTING

Making the Down Payments (Assistance and Gifts)
- Conventional mortgages have no assistance but can be partially fulfilled with a gift
- FHA Mortgages have loans and assistance programs available and the whole down payment can be fulfilled with a gift

In this article, we have given you the basic parameters of FHA loans vs Conventional loans. The conventional loans are for people who have a better financial track record and can handle a larger upfront cost. Because of PMI, conventional loans are cheaper in the long run if you can put enough of a down payment to get rid of PMI. However, there are no down payment assistance programs to help you reach that goal. FHA loans are for people who are looking to build their investment and in some cases may not have a great financial track record. FHA loans have lower down payment requirements and many grants/forgivable loans to help people wanting to buy a first house in which to live for at least a few years. It is important to assess your situation and decide which mortgage is going to work better for your circumstances.

CONCLUSION

Both mortgages have a lot of benefits and drawbacks because they are designed for people with different needs. This article has hopefully helped you to get a basic understanding of the different terms and conditions of different mortgage packages when looking at FHA loans vs Conventional loans. Home buying can be an emotional roller coaster and the knowledge in this article will help you navigate the various emotional struggles of home buying.

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Kentucky FHA Loan Requirements For 2024

How to Qualify for a Kentucky FHA Mortgage Loan with a lender in Kentucky?

The requirements for Kentucky FHA loans are set by HUD.

Borrowers must have a steady employment history of the last two years within the same industry or line of work. Recent college graduates can use their transcripts to supplant the 2-year work history rule as long as it makes sense.
Self-Employed will need a 2-year history of tax returns filed with IRS. They will take a 2-year average.
FHA requires a 3.5% down payment. Can be gifted from a family member or from a retirement savings plan, or money saved up. Any type of cash deposits is not allowed for down payments. No exceptions to this rule!! This is one of the biggest issues I see in FHA underwriting nowadays.
FHA loans are for primary residence occupancy. Not rental houses.
Borrowers must have a property appraisal from an FHA-approved appraiser.
Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 43 percent. If the Automated Underwriting System gives you an Approved Eligible you can go higher on the debt ratios
Borrowers must have a minimum credit score of 580 for maximum financing with a 3.5% down payment
Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. Most lenders will not go below 580 to 620 score, and very few lenders will go to 580 score. It’s best to work on getting your scores up before you apply or work with a loan officer to improve them.
2 years removed from Chapter 7 is required with good pay history after bankruptcy
1 year removed from Chapter 13 is okay with an excellent pay history with the Chapter 13 plan and permission from the trustee. You will need to qualify with the Chapter 13 payment along with a new house payment. Again, scores will play into your loan pre-approval.
Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you’ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.
The property must be appraised by a Kentucky FHA-approved appraiser.
The property must be safe, sound and secure, in compliance with minimum property standards as defined by the U.S. Department of Housing and Urban Development, or HUD.

You may not have delinquent federal debt or judgments, or debt associated with past FHA loans. Caivrs Alert System will show up if you owe the government money.

Kentucky FHA Loan Requirements for 2024

Gift Rules for Down-Payment Sources Guidelines on FHA Mortgage Programs

One of the biggest obstacles to buying a home for Americans is the down payment. There was a time when you needed a 20% down payment and a high credit score to buy a home. But in 2022, you can buy a home with average to below-average credit and low down payment in some cases. One of the most popular loan programs for these buyers if the FHA loan. A major advantage of the FHA mortgage loan is you can get approved with only a 3.5% down payment with a 580 or higher credit score. If you have a lower score than that, you need a 10% down payment.

Still, there are situations where the borrower is having trouble coming up with the down payment for the loan. What to do then? FHA guidelines do allow other options. Keep reading to learn more.

More on FHA Down Payments and Approved Sources

As we noted above, you are required to have at least a 3.5% down payment to be approved for an FHA loan. The money must be verified by the FHA-approved lender to come from an ‘approved source.’ What is an approved source, anyway? Most people get their down payment from cash reserves, investments, borrow from 401k or IRA, etc. The idea behind verifying where the money came from is to make sure the borrower did not get the down payment from a credit card or payday loan, etc.

But there are other options for your down payment. The funds also can come from a gift. The gift and the giver do need to meet FHA requirements, but this flexible guideline makes it possible to get into an FHA loan with, technically, zero money down. To determine if the down payment gift can be used or not, it is necessary to check HUD rules. According to HUD 41.55.1 Chapter 5 Section B, for the funds to be a gift, there cannot be any expected repayment of the money.

Also, FHA will scrutinize the giver of the gift. Chapter 5 of the HUD Code states the cash gift is OK if it comes from your relative; employer or labor union; close friend with a defined interest in you; charitable organization; government agency or public entity.

FHA also states who cannot give gift funds to you for the down payment. These are the seller; the real estate agent or broker on the deal; the builder or an associated entity.

Gift Terms Explained

The gift for your down payment cannot be made based upon paying it back later. You are required to get a gift letter from the person or organization. The letter should state that you are not required to pay the money back. It also should provide the contact information for the borrower, such as name, address, and phone number. Also included should be the bank account from which the funds will be sent.

The gift donor should be OK with giving a bank statement with the letter. Also, he or she should ensure that the transfer amount matches what is in the gift letter and what is deposited into your account.

FHA rules are very specific on these areas to ensure that the home buying process through FHA is fair and just. But as long as you follow the FHA rules, you should be able to get help with your down payment from a friend or relative.

Don’t Have Friends or Family Who Can Help?

Not every borrower has friends or family who can give them a gift for their down payment. But HUD lists many government programs spread throughout the country in most states that can offer down payment and closing cost help for certain borrowers.

It also is worth checking if your employer and state have employer-assisted housing. This program can help people with moderate incomes to get a loan to cover closing costs and down payment. Look up FHA in your state on Google to see what is available.
The FHA is actually not the lender. They insure the loans that are issued by FHA-approved lenders. FHA loans are gear more toward borrower’s with less than 20% down payment and credit issues in the past.

Qualifying for a FHA Loan Mortgage In Kentucky

Credit Scores and Down Payment Percentages – Each year, the rules for qualifying for these loans changes. For 2024, applicants need a minimum credit score of 580 in order to get the low down payment, which is 3.5 percent.

For those whose credit score is less than 580, they will have to come up with 10 percent for their down payment. This does not guaranteed a mortgage loan approval if you have the certain credit scores, just a the minimum required.

Compensating Factors for FHA loan Approval

The credit score is just one part of the story. The FHA will also evaluate the borrower’s bankruptcies, foreclosures, prior payment history on other debts. They will also want information on difficulties that kept the borrower from making payments on other debts in the past.

Negative strikes against qualifying for the loan include not having any credit history or a bankruptcy.

Someone with a bankruptcy will have to wait for two or more years after their bankruptcy before applying for an FHA-insured loan.

If you have late payments on debt obligations, it is best to wait until you have had a full year of on-time payments before you apply for a FHA-insured loan.

If you have had a foreclosure in the past, you may still be able to get a FHA-insured loan three years after your foreclosure. The lender will be looking at the circumstances behind the foreclosure.

If you have had any civil judgement against you for money owed, collections actions or unpaid/unresolved federal debt, the FHA-approved lender will be required by the FHA to establish that all of these outstanding issues are resolved or paid before you can go through closing.

Watch out for student loans if they are delinquent because sometime this can cause a lien against you in the form of a CAVIRS Alert with HUD

As you can see, many types of borrowers who would not be eligible for a traditional mortgage, or who would face exorbitant interest rates, will be able to qualify for a FHA-insured loan at attractive interest rates.

Employment and Income for a Kentucky FHA Loan

You must have an employment history that is steady for the last two years. Does not have to be same employer.

Your income has to be verifiable in some way, whether that be through pay stubs, your income tax returns. No bank statements or cash deposits , or undocumented income can be used for income qualifying purposes.

Debt-to-Income Ratio Requirements –

Depending on the automated underwriting system from Desktop Originator, your Debt-to-income ratio is the percentage of your income before taxes that you spend on monthly debt.

Taking into account the proposed mortgage payment as well as the other debts, the FHA requires that these debts all total less than 43 percent of your pretax income in order to qualify for the loan.

If your debt load is too high, you will struggle to pay all of your bills and mortgage expenses and care for yourself and your family.

Property Requirements for a Kentucky FHA Loan

It must be the place where you intend to reside. You must move into the home within 60 days of closing the loan. The home cannot be an investment. There will be an inspection to ensure that the home is safe and habitable.

It is really not too hard to pass FHA loans and the appraisal process.

Pros of FHA Loans –

New homebuyers and those who have lower credit scores or who have other blemishes on their credit history will often qualify for FHA-insured loans.

Even though these borrowers are considered “subprime” to a traditional lender, they will receive attractive interest rates through the FHA-insured mortgage programs.

The down payments required from borrowers are lower than those required by traditional mortgage lenders.

These loans can be combined with other forms of public assistance for lower income or new borrowers so that the borrower will not need to come up with a down payment of any kind.

Cons of FHA Loans –

Since the FHA is not actually the lender, and you have to go through FHA-approved lenders, you may not qualify due to stricter standards that the lender has for the loan.

Because you are not paying 20 percent as a down payment, the FHA requires two mortgage insurance premiums to be paid. One is an upfront premium that is 1.75 percent of the loan amount. Lenders often will allow you to make that mortgage insurance premium a part of your loan. The second is an annual mortgage insurance premium that is .45 percent or 1.05 percent. This premium is paid monthly.
FHA FINANCING

CREDIT REQUIREMENTS FOR KENTUCKY FHA FINANCING

What credit score do I need to qualify for a Kentucky FHA loan is one of the most common questions I hear from Kentucky homebuyers?

The short answer is you must have a minimum credit score of 500 to be eligible for an FHA loan in Kentucky. Anything lower than 500 disqualifies you from consideration for an FHA loan.

There are two sets of credit score requirements for a Kentucky FHA Loan

One important thing to understand is that the Federal Housing Administration (FHA) does not lend money directly to home buyers. You will fill out an application with a regular lender just as you would if you were applying for any other type of mortgage. What the FHA does is ensure your loan to help protect the lender in case you default.

You will be required not only to meet the FHA guidelines to qualify for a loan but also meet any additional qualifications required by the lender. This means there are two sets of requirements you have to meet with your credit score.

1. The first set of requirements comes from the Department of Housing and Urban Development (HUD). HUD oversees the FHA and determines what a borrower’s minimum eligibility requirements will be to obtain an FHA loan.

2. The second set of requirements comes from the mortgage lender. The mortgage lender has the right to add its requirements to those mandated by HUD.

What HUD requires of borrowers to be eligible for an FHA loan

The HUD Handbook 4000.1 includes the official guidelines when it comes to the FHA mortgage insurance program.

Borrowers with credit scores from 500 to 579 are eligible for a 90% loan with 10% down.

Individuals with credit scores below 500 are not eligible for the FHA program.

What lenders may require of borrowers to be eligible for an Kentucky FHA loan

Lenders have the right to add requirements over and above the minimum requirements of HUD. These additional requirements are called overlays. Your lender may or may not require them.

This is not something that should come as a surprise to you, however. Requiring a credit score of 580 to 620 is not unusual. In addition to your credit score, you must have a manageable debt level that lenders are comfortable with and enough income to repay your loan.
Joel Lobb (NMLS#57916)
Senior Loan Officer

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3

Louisville, KY 40223

Company ID #1364 | MB73346

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

#fhaloans #fhaloan #fha #conventionalloans #conventionalmortgage #kentuckymortgage #louisville #mortgage #homeloan #firsttimehomebuyers #khcloan #fhaloanky

#mortgagebroker #mortgagelender #homeloan

Featured

Kentucky FHA Manual Underwriting Guidelines for Approval

Kentucky FHA loans are manual underwrites

We have the expertise to manually underwrite even the most difficult Kentucky FHA Mortgage loans. Whether it’s purchase or refi—we work hard to approve what other lenders won’t.

Did you know over 50% of our Kentucky FHA loans are manual underwrites?

Kentucky FHA will consider the borrower’s entire story, including extenuating circumstances and compensating factors, to justify loan approvals. If your borrower falls under any of these conditions, they may benefit from manual underwriting:

Non-traditional credit / lack of credit
True extenuating circumstances affecting credit or income history
Lack of seasoning on a Chapter 13
Disputed accounts over $1,000
Frequent job changes in the last 12 months

If you think your borrower could benefit from manual underwriting call us to learn more about manual underwriting or submit your scenario today.

Lowest Minimum Decision Credit Score Maximum Qualifying Ratios (%) Acceptable Compensating Factors
All manual underwritten loans require a VOR.
If the borrower does not pay rent a letter of explanation from borrower stating where living rent free.
620 & Above
31/43
• No compensating factors required.
• Energy Efficient Homes may have stretch ratios of 33/45.
620 & Above
37/47
One of the following:
• Verified & documented cash reserves equal to at least three total monthly mortgage payments.
• New total monthly mortgage payment is not more than $100 or 5% higher than previous total monthly housing payment, whichever is less; and there is a documented twelve-month housing payment history with no more than one thirty-day late payment.
• Residual Income per VA chart.
620 & Above
40/40
• Borrower has established credit lines in his/her own name (open for at least six months) but carries no discretionary debt (monthly total housing payment is only open installment account and borrower can document that revolving credit has been paid off in full monthly for at least the past six months).
620 & Above
40/50
Two of the following:
• Verified & documented cash reserves equal to at least three total monthly mortgage payments.
• New total monthly mortgage payment is not more than $100 or 5% higher than previous total monthly housing payment, whichever is less; and there is a documented twelve-month housing payment history with no more than one thirty-day late payment.
• Verified and documented significant additional income that is not considered effective income and likely to continue (part-time or seasonal income verified for more than 1 year but less than 2 years). The income if it were included in gross effective income is sufficient to reduce the qualifying ratios to not more than 37/47.
• Residual Income per VA chart.

KENTUCKY FHA MORTGAGE MANUAL UNDERWRITING GUIDELINES FOR VA RESIDUAL INCOME

Residual Income
Calculating Residual Income
Residual income is calculated in accordance with the following:
• Calculate the total gross monthly income of all occupying borrowers
• Deduct from the gross monthly income the following items:
➢ State income taxes
➢ Federal income taxes
➢ Municipal or other income taxes
➢ Retirement or Social Security
➢ Proposed total monthly fixed mortgage payment
➢ All recurring monthly debt obligations
➢ Estimated maintenance and utilities ($0.14 x sq. ft.)
➢ Job related expenses (e.g., child care)
• The difference between the gross monthly income and the deductions above is the residual income
Compensating Factors
Using Residual Income as a Compensating Factor
Count all members of the household of the occupying borrowers without regard to the nature of their relationship and without regard to whether they are joining on title or the note.
Exception: As stated in the VA Guidelines, the mortgagee may omit any individuals from “family size” who are fully supported from a source of verified income which is not included in the effective income in the loan analysis. These Individuals must voluntarily provide sufficient documentation to verify their income to qualify for this exemption.
From the table below, select the applicable loan amount and household size. If residual income equals or exceeds the corresponding amount on the table, it may be cited as a compensating factor.

Kentucky FHA Mortgage Manual Undewriting Guidelines for FHA Mortgage Refer Eligible or Manual Downgrades Compensating Factors for Manual FHA approval

Accept Risk Class required downgrade to Manual Underwriting
The Mortgagee must downgrade and manually underwrite any mortgage that received an accept or approve/eligible recommendation if:
• The mortgage file contains information or documentation that cannot be evaluated by TOTAL.
• Additional information, not considered in the AUS recommendation affects the overall insurability of the mortgage.
• The borrower has $1,000 or more collectively in Disputed Derogatory Credit Accounts.
• The date of the borrower’s bankruptcy discharge as reflected on bankruptcy documents is within two years from the date of the case number assignment.
• The case number assignment date is within three years of the date of the transfer of title through a Pre-Foreclosure Sale (Short Sale).
• The case number assignment date is within three years of the date of the transfer of title through a foreclosure sale.
• The case number assignment date is within three years of the date of the transfer of title through a Deed-in-Lieu (DIL) of foreclosure.
• The Mortgage Payment history, for any mortgage trade line reported on the credit report used to score the application, requires a downgrade as defined in Housing Obligations/Mortgage Payment History.
• The Borrower has undisclosed mortgage debt that requires a downgrade.
• Business income shows a greater than 20 percent decline over the analysis period.

Continue reading “Kentucky FHA Manual Underwriting Guidelines for Approval”

Featured

Kentucky FHA Appraisal Requirements For A Mortgage Loan Approval.

Applies to case numbers assigned on or after June 1, 2022

Updates the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report;
Extends the appraisal update validity period from 240 days to one year from the effective date of the initial appraisal report;

Allows the appraisal update to be ordered AFTER an appraisal expires; and
Eliminates the optional 30-day extension.

✨This is big news for FHA ✨

The guideline change also puts FHA appraisal expirations on par with conventional loan expiration dates.

Kentucky FHA Appraisal Requirements For A Mortgage Loan Approval.

Ordered through a third party source. Interested/vested parties may not initiate the appraisal. I.E> buyers, sellers, realtors, loan officer, family members
Property must meet HUD’s minimum property standards. i.e.: permanent heat source, utilities must be on and in working order at time of inspection
Flips < 90 days – not allowed Per HUD -If current owner owned less than 90 days FHA will not insure. Sometimes a second appraisal will be required by FHA investor if sold within the last 6 months for a large profit. Receipts of work done may be needed to substantiate increase in value of home in short-time period.
Transferred appraisal – ok
Appraisal valid 120 days – 30 day extension possible*
Property eligibility – No location restrictions.
New Construction Available

FHA MORTGAGE LOANS AND FLIPPING RULE FOR APPRAISALS
Resales Occurring 90 Days or Fewer after Acquisition:
 Not eligible for FHA financing
Resales occurring between 91 days and 180 Days after Acquisition:
 Obtain 2nd appraisal if resold between 91 to 180 days after acquisition
 Obtain 2nd appraisal if resale price is 100% or more over price paid by seller
 If 2nd appraisal is more than 5% lower than value of first appraisal, the lower value must be used
 Borrower not allowed to pay for 2nd appraisal
Exceptions to FHA Flipping Rules:
 Property purchased by an employer or relocation company due to relocation of an employee
 Resales by HUD – REO program
 Sales by other government agencies (i.e., IRS, court-ordered, DEA, etc.)
 Sales of non-profit agencies approved to purchase HUD properties
 Acquisition due to inheritance
 Sales of properties by federally chartered financial institutions
 Sales of properties by GSE’s
 Sales of properties by local or state governments
 Sales by builders selling a new home
 Sales of properties in federally declared disaster areas
NOTE: Mortgage Company must obtain a 12-month chain of title to document time restrictions above.
VA MORTGAGE AND FLIPPING RULE

 No Flipping Rules – Overlays may apply or at Underwriter’s discretion

USDA RURAL HOUSING MORTGAGE FLIPPING RULES
 Lender is responsible to ensure that any recently sold property’s value is strongly supported when a significant
increase between sale and purchase occurs.
 Lender must ensure that the appraisal value is supported with validated comps and protect the borrower from
predatory lending.

Fannie Mae Appraisal Flipping Rules
 No Flipping Rules – Lender overlays may apply
Freddie Mac
 No Flipping Rules – Lender overlays may apply

Applies to case numbers assigned on or after June 1, 2022

Allows the appraisal update to be ordered AFTER an appraisal expires; and
Eliminates the optional 30-day extension.

✨This is big news for FHA ✨

The guideline change also puts FHA appraisal expirations on par with conventional loan expiration dates.

Kentucky FHA appraisals can take home buyers by surprise. That’s why we’ve put together some good-to-know info about the process. Feel free to use this to help educate your clients.

Joel Lobb
Senior Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc. NMLS# 1364

10602 Timberwood Circle, Suite 3

Louisville, KY 40223

text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com

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.

Featured

Credit scores required for A Kentucky Mortgage Loan Approval for FHA, VA, USDA and Conventional Fannie Mae

What credit score is needed to buy a house in Kentucky?

Ultimately, there is no singular credit score that can guarantee you a mortgage approval. Each lender is free to set their own credit score requirements.

But many loan types are insured by government organizations. And lenders cannot accept borrowers with credit scores below the minimum these organizations set. The four most popular home loan types are:

Conventional: Not backed by any government agency, but must meet the Fannie Mae and Freddie Mac underwriting guidelines

FHA: Loans backed by the Federal Housing Administration

VA: Loans backed by the US Department of Veterans Affairs (for military members)

USDA: Loans backed by the US Department of Agriculture (for low- to moderate-income families who buy homes in rural areas)

And here are the minimum credit score requirements for each of these loan types:

Conventional:

620 SCORE NEEDED. BUT TO GET APPROVED FOR A FANNIE MAE LOAN MOSTLY LIKE YOU WILL NEED A 720 SCORE OR HIGHER IF YOU HAVE LESS THAN 20% EQUITY POSITION OR LESS THAN 20% DOWN PAYMENT DUE TO PRIVATE MORTGAGE INSURANCE

FHA:

580 for a 3.5% down payment
500 for down payments of at least 10%

**MOST FHA LENDERS WILL WANT A 580 to 620 CREDIT SCORE NOWADAYS

VA:

No minimum BUT MOST VA LENDERS WILL WANT A 580 to 620 CREDIT SCORE

USDA:

No minimum, but with a credit score of at least 620 to 640 you could qualify for streamlined credit analysis and chances of approval goes way down if score is below 640…

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Joel Lobb
Senior Loan Officer

(NMLS#57916)

phone: (502) 905-3708

Fax: (502) 327-9119

kentuckyloan@gmail.com

Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

Featured

Kentucky FHA Loans in the State of Kentucky for 2022

FHA insured loan first time home buyer

Advantages of Kentucky FHA Mortgage Loans

You can often make a down payment as low as 3.5 percent down to a 580 credit score
You can finance a home with a 500 credit score with 10% down payment.
Kentucky FHA loans are assumable meaning that if you have a good rate on your current mortgage and the potential buyer of your home meets FHA guidelines, then he can assume your low rate mortgage
Kentucky FHA loans offer streamline refinancing without credit score minimums, verification of income, and no appraisals to refinance to a lower rate making it easier to qualify.
Kentucky FHA loans offer flexible terms when it comes to previous bankruptcy or foreclosures. 2 years removed from Chapter 7 with reestablished
credit, or if a Chapter 13, one year in the payment plan is eligible for FHA financing.
Foreclosures on a past home. FHA will finance a home 3 years removed from the sale date of your foreclosure property
30 year fixed rate mortgage with usually the best going rates on government insured loans like FHA, VA, USDA etc.
No prepayment penalty on Kentucky FHA loans.
Higher debt to income ratio requirements when compared to Conventional loans because most Fannie Mae Conventional loans cannot have a higher debt to income ratio than 45% on the back-end
You can make an FHA loan anywhere in the state of Kentucky with no geographical restrictions.
Will allow for down payment assistance and grants for borrowers minimum down payments in the State of Kentucky through the likes of KHC, Welcome Home Grant, and Kentucky Housing Down Payment Second Mortgage loans.
Kentucky FHA loans allow for unoccupied cosigner. For example, lets say you have a daughter that is getting ready to graduate college and does not have the income or credit history established yet to buy a home. FHA allows a family-member to co-sign for them to buy a home and you don’t have to occupy as primary residence. Note, FHA co-singers are not allowed to makeup for some that has bad credit, because they will take the lowest credit scores of both applicants. FHA usually allows for co-singers lack of income purposes only.
Can usually close within 30 days just like a regular conventional mortgage. No extra time to close an FHA loan in Kentucky versus other secondary market loans like VA, USDA, Fannie Mae.
You can use the FHA loan over and over. You can actually have two FHA loans open at the same time, but it gets tricky on this. Call or text me with more info if you have an FHA loan currently and would like to use FHA Financing again.
FHA loans aren’t just for first time home buyers in Kentucky.

Disadvantages of Kentucky FHA Mortgage Loans

There are loan limits in the State of Kentucky on FHA Mortgage loans. The maximum FHA loan in the state of Kentucky is $$420,680 for 2022. So if you were needing to finance a loan over this amount, you would need to look at doing a Conventional loan with the updated 2021 Kentucky State Loan Limits for a Fannie Mae loan being $647,250
If buying a condo in Kentucky, FHA requires the condo development be FHA approved. There is a >>>list here of Kentucky FHA approved condos here.
Seller must have own the home for 90 days before you can make an offer on the home. This comes into play where the seller bought the home as an investor and rehabbed the property and wants to sell for a quick profit. FHA mandates seller must maintain for 90 days before you can write up an offer on it. Also called FHA Flipping Policy. Read more here
There is mortgage insurance. This is one of the biggest disadvantages for FHA loans. But as I tell most people, nobody rarely has a loan for 30 years, so if it meets your payment and your cash to close requirement, I tell people to go with it because it can be refinanced down the road and you are getting one of the lowers 30 year fixed rates out there. Both upfront and monthly mortgage insurance premiums you have to pay HUD/FHA. These premiums change whenever FHA/HUD replenish their insurance pool to pay claims from defaults, but currently the FHA upfront mortgage insurance premium is 1.75% and monthly is .85% and .80% of the loan amount. If you happen do a 15 year term or shorter, the mortgage insurance is cheaper monthly with .45 and .70 respectively each month. The upfront mortgage insurance is the same for a 30 year and 15 year at 1.75%
FHA Mortgage insurance can be on the loan for life of loan. This is a recent change made in 2016 when FHA lowered there premiums for upfront and monthly mi premiums, but made the mortgage insurance for life of loan for some FHA loans.
If you put down more than 10% on the loan, or have at least 10% equity in the home for a refinance, you only have to pay mortgage insurance for 11 years before it automatically falls off.
Obviously you can refinance out of an FHA loan at anytime, since it does not a prepayment penalty, and you can potentially get a refund of your upfront mortgage insurance if paid off within 3 years on sliding scale.
I have incorporated some charts below to illustrate the different Kentucky FHA Mortgage Insurance premiums to explain it better.
The upfront mortgage insurance is usually financed into the loan, so it will look like you are borrowing more than the standard 3.5% down payment because this is financed into the loan. Some borrowers elect to pay it out of pocket upfront, but I have never seen this done in my 20 years of doing FHA loans in the State of Kentucky
Kentucky FHA Loans Greater Than 15 Years MIP Chart

👇

Base Loan Amt.	LTV	Annual MIP
≤$625,500	≤95.00%	80 bps (0.80%)
≤$625,500	>95.00%	85 bps (0.85%)
>$625,500	≤95.00%	100 bps (1.00%)
>$625,500	>95.00%	105 bps (1.05%)

Kentucky FHA Loans Less Than or Equal to 15 Years MIP Chart👇

Base Loan Amt.	LTV	Annual MIP
≤$625,500	≤90.00%	45 bps (0.45%)
≤$625,500	>90.00%	70 bps (0.70%)
>$625,500	≤78.00%	45 bps (0.45%)
>$625,500	78.01% – 90.00%	70 bps (0.70%)
>$625,500	>90.00%	95 bps (0.95%)

When can I get the FHA mortgage insurance off my Mortgage Loan? See chart below 👇👇

Image result for fha cancellation of mortgage insurance chart kentucky

Appraisals. On an FHA appraisal, the FHA appraiser has to turn on the utilities to make sure they are in worked order when he gets there. This is different that Conventional loan appraisals. A lot of realtors or buyers think that FHA loans are harder due to appraisals, but honestly, they’re really not. FHA puts these minimum HUD standards in place to make sure the home is in good working order and SAFE to live in. I.e.is there any lead based paint or chipping paint that could lead to poisoning It is all about Safety with FHA and HUD on these appraisals. The value is determined just like a regular Conventional, USDA, VA appraisals whereas they compare the house to 3 recent homes sold in the area to get a value.
Some lenders don’t offer FHA loans due to their complexity and sale on the secondary market, so if you call a local lender in Kentucky and they don’t offer FHA loans, the reason is usually they don’t have the team in place to do them or don’t want to do them due to lack of experience on the secondary government market.
Government Liens. FHA will not be an option for you usually if you have unpaid federal tax liens, delinquency on federal backed-government loans, or a claim with social security etc. FHA loans are ran through aCAVIRS alert system to check to see if you are delinquent on any federal oblation. If so, this swill stop you until you can clear the CAVIRS alert system. For example, I did a loan for a buyer that had a delinquent federal debt with his student loan that happened over 14 years old. It was off the credit report and title search, so I had to switch to a conventional loan to make the home loan work.
FHA loans are not good for second homes or investment properties. FHA loans are mainly for single family residence 1-4 unit, that are going to occupied primarily as main home.

In summary, FHA loans have few drawbacks other than the mortgage insurance in my opinion. It is a great first time home buyer program or borrowers with past credit problems to get into a house of their own with very little out of pocket, at a low 30 year fixed rate, and no prepayment penalty

Questions about qualifying for a FHA loan in Kentucky . Give me text, call or email below. Love to help you out on your next home or refinance in Kentucky

Read more below about specific FHA Loans in Kentucky.👇👇👇

Joel Lobb (NMLS#57916)
Senior Loan Officer

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3

Louisville, KY 40223

Company ID #1364 | MB73346

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

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.

Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans | October 17, 2018 at 3:54 pm | Tags: fha gift funds, fha loan kentucky, FHA Loans Kentucky Housing First time home buyer, fha mortgage, fha mortgage loan, gift funds for fha mortgage, kentucky fha loans |

Featured

How does Kentucky FHA Mortgage Rates work?

Kentucky FHA mortgage loans are backed by the Federal Housing Administration under the umbrella of HUD. FHA loans were developed to help borrowers that don’t have a large down payment and a weaker credit profile to buy and refinance their home mortgage loan.

Kentucky FHA rates are backed by the government, so they are typically lower than other mortgage rates in the secondary market like Conventional loans and portfolio loans at banks, but fall in line compatible to other backed government loans in the secondary market likeUSDA, VA, mortgage loans. Most people seeking FHA mortgages will get a 30 year, 20 year of 15 year fixed rate loan with the security of the house payment not changing.

Lower Credit Standards and Credit Scores for FHA loans

FHA mortgages will go down to a 500 credit score with at least 10% down payment, and if your credit score is higher than 580, you can put the minimum of 3.5% down payment. Additionally, you need to be only 2 years removed from a Chapter 7 bankruptcy, or 1 year from a Chapter 13 bankruptcy.

Mortgage Insurance on FHA loans

Mortgage insurance is required on most FHA loans and is usually for life of loan with everyone paying the same. If you have a higher credit score and a larger down payment, it would make sense to look at doing a conventional mortgage loan because they are based on your credit score, money down, and debt to income ratio and not for life of loan.

You can get a lower FHA mortgage insurance premium and not have to finance the premiums for life of the loan if you put more than 10% down payment and finance on a 15 year term.

Why would you consider a FHA mortgage?

My best opinion is this. If you have a bankruptcy that is less than 4 years, have a credit score lower than 660, and very little money down, I would recommend at looking to do a FHA mortgage Loan. Your chances of getting approved with likely result in a loan approval as opposed to doing a conventional loan backed by Fannie Mae.

Why would you consider a Conventional Loan?

My best opinion is this. If you have a bankruptcy over 4 years or longer, at least 5% down payment, a credit score of 680 or higher, I would look doing a conventional mortgage loan.

I can help you understand what mortgage is correct for you. Please contact me below and I will be happy to answer any questions.

Joel Lobb (NMLS#57916)

Joel Lobb (NMLS#57916)
Senior Loan Officer

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3

Louisville, KY 40223

Company ID #1364 | MB73346

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

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.

Featured

What are the requirements to qualify for a Kentucky FHA Mortgage?

What are the requirements to qualify for a Kentucky FHA Mortgage in 2020?

Kentucky FHA loan is a mortgage that is insured by the Government agency under Housing and Urban Development that is called FHA or short for Federal Housing Administration. The loan was established for Kentucky Home buyers will very little or no money down home loans with more lenient credit score and income requirements and tends to be more forgiving about credit history with regard to bankruptcy and foreclosures, higher debt to income ratios and job history with limited work history for home buyers will only 2 years work history or less.

Kentucky FHA Credit Score Requirements and Down Payment Requirements

The Kentucky FHA home loan program may accept credit scores as low as 580 and require at least a 3.5 percent down payment of the sales price on a purchase. If you have a credit score below 580, then a 10 percent down payment or more may be acceptable some FHA lenders in Kentucky , providing you meet all program guidelines in regards to debt to income ratios, assets, and income requirements . The loan cannot be used for rental properties and does allow for co-signers if they are related.

Remember, these guidelines are set forth by FHA and all lenders do not have to offer these guidelines, to whereas they may a higher credit score or more money down or income restrictions on how much you can qualify for.

Kentucky FHA Mortgage Loans and Bankruptcy or Foreclosure

In case you had a blemish on your credit report with a bankruptcy, short sale or foreclosure, follow these guidelines.

Kentucky FHA loans requires a passage of two years since the discharge date of a chapter 7 bankruptcy. A chapter 13 bankruptcy may be acceptable after at least 12 months of an on time pay-back period and the borrower has received permission from bankruptcy court to enter the mortgage transaction, and you qualify with the new house payment along with other debts on the credit report.

Three years must pass if you went through a short sale or foreclosure. The date starts when the home was sold, not when you entered the transaction toward foreclosure or short sale period. Sometimes the house will not sell to 1-2 years later after the foreclosure and this is when the passage date starts. Keep this in mind on your next FHA loan pre-approval if you have had a bankruptcy or foreclosure in the past.

Kentucky FHA Loans and Mortgage Insurance

FHA loans have two forms of mortgage insurance which protects the lender for any losses suffered if the borrower defaults on the payment. ne is called upfront mortgage insurance premium (UFMIP) which has a rate of 1.75% of the loan amount. The fee can be added to the loan amount or paid in full as part of your closing costs. In addition, FHA loans also have a 0.8-0.85% (of the loan amount) monthly mortgage insurance. In most cases, this mortgage insurance remains for the life of the loan. To eliminate the mortgage insurance, the borrower must refinance the loan into a non-FHA loan program and have 20% equity in the property.

In addition to the down payment requirements on a FHA loan, they’re closing costs and prepaids to pay at closing. The seller can contribute up to 6% of the sales price to help the buyer with closing costs and prepaid expenses. Closing costs vary from lender to lender and your prepaids would be the same no matter which lender you choose because this is a function of the property ‘s home insurance premium quote you obtain and the property tax bill on the home set by PVA.

Sometimes the lender can pay a credit toward these expenses at closing with a lender credit which lets the lender credit back to you with a higher rate to reduce the costs of the loan’s costs at closing for out of pocket expenses.

All Kentucky FHA loans are assumable, which means that when the homeowner sells a home, the buyer may be able to take on the existing loan and terms (e.g.: balance, rate and remaining loan amount). Of course, anyone interested in the assumable loan feature must go through the approval process (credit check, income verification) with the current lender on the property. This is a very rare occurrence because most sellers are going to sell the home for more than they owe on it.

Kentucky FHA Loan Requirements

All loans and lines are subject to credit approval, verification, and collateral evaluation

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Louisville Kentucky FHA Seller Contributions and Closing Costs

Louisville Kentucky FHA Seller contributions can make a big impact for a first time home buyer struggling to save the required 3.5% down payment let alone all other related fees. A seller who understands the benefit and has the ability to offer assistance could make the difference between purchasing a home now and continuing to rent.

Louisville Kentucky FHA Maximum Seller Contributions

Louisville Ky FHA guidelines allow the seller to contribute up to 6% of the sales price toward the buyers closing costs, discount points, and prepaids. The seller is also allowed to pay the upfront mortgage insurance premium (MIP) which is typically rolled into the cost of the loan.

Common FHA Closing Costs:

Below is a list of customary fees associated with an Kentucky FHA loan. This is only an example of costs the seller may pay on your behalf and does not include all allowable costs per Kentucky FHA guidelines. Make certain your lender provides you with an itemized list known as a Good Faith Estimate.

Origination fee – The maximum origination fee is 1 percent of your loan amount, or 2 percent of the loan amount if it’s a home equity conversion loan.
Appraisal fee to determine the value of the home
Costs associated with your mortgage credit report
Attorney’s fees, title search fees, title insurance – Attorney’s fees are not typical in Colorado, but title fees are and can range from $250 to $1,500 depending on the home’s location.
Prepaid interest – You will pay interest accrued between the closing date and the end of the month.
Upfront premium for your Kentucky FHA mortgage insurance. This will be 1.5 percent of the loan amount, but you may be able to roll it into your loan.
Escrow amounts for future taxes and insurance – You will be required to pay 1 year of homeowner’s insurance and a few months of your property taxes.
Discount points (if applicable)
Up Front Mortgage Insurance Premium (MIP)
Buy Downs (cost incurred for a permanent or temporary interest rate buy down)While the total amount of your closing costs might seem like a hefty price to pay, keep in mind what you’re getting in return:A home you can call your very own.

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Kentucky FHA Streamline Refinance

Our Kentucky FHA lenders can help you buy a home with no money down or refinance to the lowest rates possible!

via Kentucky FHA Streamline Refinance.

Kentucky FHA Streamline Refinance

Welcome to the Kentucky FHA Streamline Refinance program! Our KY FHA lenders can help you save money each month on your FHA mortgage. Want to take advantage of the current low rates? No problem! We service all areas of The Bluegrass State and we’re here to help!

This FHA Streamline Refi process is so simple that it’s been called “Streamline” because it allows you to refinance the interest rate on your current home mortgage rather quickly. Appraisals are usually not required and there is also less paperwork involved – saving both you and the lender time and money!

***Starting June 11, 2012 if you currently have an FHA loan you may qualify for a refinance that will reduce your upfront mortgage premium to only .01 percent and your annual premium of .55 percent!***

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell

Louisville Ky homeowners looking to for a FHA refinancing offers benefits for current real estate home owners who are seeking to complete a refinance mortgage of their existing real estate mortgage (s).

Some advantages of using a Louisville KY FHA mortgage for your mortgage refinance are as follows:

Cash-Out Refinance up to 85% for existing or new FHA mortgages.

Cash-Out up to 85% of your properties value.

Consolidate first and second mortgages into single loan.

Bill consolidation programs.

Easier credit and income qualifications.

FHA regulated closing costs.

Rate and Term Mortgage Refinancing up to 96.5% of your homes value.

Consolidate first and second mortgages* into a single loan.

min. 640 credit score.

Competitive rates for borrowers with a Bankruptcy older than two years.

Competitive rates for borrowers with a Foreclosure older than three years.

Easier credit and income qualifications.

FHA regulated closing costs.

Louisville KY FHA Streamline Refinance for existing FHA loans only.

No Cost Interest Rate Reductions programs.

No Income or Credit Qualifications*.

Zero cost refinance options available.

Easily switch amortization for adjustable to fixed or vice versa.

Easily shorten or lengthen term of your existing loan.

Easier credit and income qualifications.

What Are the New Changes That Make FHA Streamline Loans Even Better?

These home loans have been available for years. Unfortunately, recent increases to mortgage insurance (MI) premiums often wiped out the savings for those refinancing.

At least until now…

New changes to the FHA Streamline program apply to those whose FHA-insured home loans were endorsed on or before May 31^st, 2009.

In an effort to assist more Kentucky homeowners with FHA mortgages to refinance at today’s incredibly interest rates FHA mortgage insurance rates were reduced, effective June 11^th, 2012.

This new change alone means thousands of dollars in savings for most borrowers.

According to the FHA, based upon a $200,000 30 year mortgage with a loan-to-value higher than 95%, those who took out loans on or before May 31^st, 2009, will now realize the following savings:

	Before June 11th, 2012	After June 11th, 2012
Mortgage Premium at Closing	$3,500	$20
Monthly MI Premium	$208.33	$91.67
Upfront MI Premium Percentage	1.75%	0.01%
Annual MI Premium Percentage	1.25%	0.55%

*Guidelines may change so please check with us to determine the exact savings for your specific situation.

Additional guidelines for FHA streamline refinances state that:

*IMPORTANT: These are FHA guidelines. Lenders may have their own guidelines called overlays, which may require all or some of these guidelines to be met.

Fill out my form!

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Kentucky FHA loans have new guidelines for collections, judgements, and disputed accounts on credit report.

Kentucky FHA Loan Guidelines for Credit, Down payment, income,

HA has published the following guideline updates, which will be effective for all loans with case numbers assigned on or after September 9th

Specific verbiage for Well Water Testing has been added indicating that it must be performed by a disinterested party in a method acceptable to the local health authority. The borrower or any other interested party may not have contact with the sample. Additionally, cases mandating a Well Water Test have been added to include (but not limited to) the following
- Newly constructed properties and/or wells
- Properties with deficiencies in the well or well water as determined by an appraiser
- Areas where water has been reported or is otherwise known to be unsafe
- Properties located in close proximity to dumps, landfills, industrial sites, farms, or other sites that could contain hazardous waste
- Properties where distance between well and septic systems is less than 100 feet
Clarification issued indicating Overtime, Bonus, or Tip Income must be calculated using the lesser of
- Average Overtime, Bonus, or Tip income earned over the previous 2 years (or if earned less than 2 years, the total length of time it has been received); OR
- Average Overtime, Bonus, or Tip income earned over the previous year
All requirements regarding unreimbursed business expenses and Commission Income or Automobile Allowances has been completely removed to align with current IRS tax laws
Mortgagees and Third Party Originators have been specifically added to the list of parties to which Interested Party Contribution (IPC) limits apply, with the exception that Premium Pricing credits do not apply to the IPC limit unless the mortgagee is also acting as the seller, agent, builder, or developer.
Rent Below Fair Market has been defined as an inducement to purchase when the borrower is allowed to live in the property rent free or at a rental amount more than 10 percent under the fair market rent as determined by the appraiser.
Disaster Certifications and new Appraisals in Disaster Areas must now be dated at least 14 days after the Incident Period start date. NOTE: This requirement is in addition to the standard Century Disaster Area Policy.
Clarification has been added that Reduction in Term for Streamline Refinances refers specifically to the reduction of the remaining amortization period of the existing mortgage.

Manual Underwriting Tips for FHA

Don’t Forget to Submit!

Verbal VOE, paystub(s) covering most recent 30 day period, W2’s for the past 2 years
2 year employment history
At least 1 months reserves from the borrower’s own funds (cannot be a gift); 3 months required for 3-4 unit properties
VOR or 12 months cancelled checks if credit does not report last 12 months housing history
LOX for any derogatory credit or any late payments within the last 24 months

DTI Requirements:

31/43% FHA (no compensating factors required)

What can trigger a downgrade to manual underwrite?

$1,000 or more in Disputed Derogatory Credit Accounts
20% or greater decline in self employed income
Mortgage lates in the last 12 months (see guidelines for full list)

Payment History Requirements:

All mortgage and installment loan payments must have been on time within the last 12 months and no more than two 30 day lates within the last 24 months
No derogatory credit on revolving accounts in the last 12 months

FHA – Underwriting must follow DU to determine if a collection account must be paid, even on a manual underwrite. Typically DU will require the following:
- If the credit report shows a cumulative balance of $2,000 or more for collection accounts:
- The debt(s) must be paid in full prior to or at closing, or
- Payment arrangements must be made with the creditor and the monthly payment included in the DTI, or
- A monthly payment of 5% of the outstanding balances of each collection must be included in the borrower’s DTI.
- Collection accounts of non-borrowing spouses in a community property state must be included in the $2,000 cumulative balance and analyzed as part of the Borrower’s ability to pay all collection accounts. Community property states are Arizona, California, Texas, Washington, and Wisconsin.

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Steps for refinancing FHA Mortgage Loans

Steps for refinancing FHA Mortgage Loans.

via Steps for refinancing FHA Mortgage Loans.

Steps for refinancing FHA Mortgage Loans

Posted on April 15, 2013

Step 1: Get in touch with your local FHA mortgage lender / bank and make clear that you would like to refinance the present FHA mortgage loan. You don’t require working with the loaner /the bank that’s presently servicing the loan. You’re able to shop about for lenders to put forward the least fees / the speediest turnaround time.

Conditions needed to get a FHA Loan:

• stable employment record, not less than 2 years of service history

• Consistent revenue over the last 2 years

• Any Chapter seven bankruptcy on documentation must be not less than 2 years old with excellent credit for the 2 successive subsequent years.

• Any foreclosure have to be not less than 3 years old

• Inquire the lender regarding streamlined FHA refinance. This kind of refinance happens to only be for homeowners who by now contain an FHA loan. FHA Streamline mortgage refinance have need of a good deal less documentation compared to a refinance that isn’t traditional. You are only going to be qualified for streamlined refinancing in the event of you currently being in a FHA Loan.

Step 2: have the lender sent by mail, fax, or e-mail, based on first choice, all documents that mortgage lender asks for.

Step 3: Provide the lender with authorization to verify your credit & to evaluate your house. Both are significant for the mortgage refinance (or Mortgage Refinancing) process. Lenders depend on customer’s credit score – anything over 720 is thought to be good, even as scores beneath 620 is thought to be bad – to establish if they are going to lend you cash and what ROI. They would be sending an appraiser for ensuring that your home worth has sufficient equity. The majority of lenders & banks require you to have not less than 90% equity in your residence.

FHA house Mortgage Loans happen to be backed by the Federal Housing management and is a more and more popular option for house buyers. This happens to be partly for the reason that the FHA Refinance need just a 3.5 advance in the house purchase cost, as the majority of mortgage lenders need 20% down payment. Find an FHA accepted Mortgage Lender.

The benefits of Streamline FHA Mortgage Refinance Loans:

1. The house owner is able to get a lesser ROI and this is going to assist them to decrease their monthly mortgage imbursement.

2. They are able to alter the terms of their present loans like loan length.

3. Rapid processing and abridged paperwork & documentation. This is the way in which they obtain the name “streamlined”. It is going to be taking less time to close up and you would be spending less time attempting to get all the paperwork & information together.

4. Closing prices are able to be chosen to incorporate them in the fresh loan if there’s sufficient equity in the house or they are able to opt to have no closing prices but that possibly will bring about a higher ROI.

5. The house owner doesn’t have to authenticate income /employment status.

Certainly there’re some qualifications which you must meet to be able to get the Streamlined FHA Refinance loan.

Louisville Kentucky FHA Streamline Mortgage Refinance Progra, (louisvillemortgageguide.com)
Louisville Kentucky FHA Mortgage Insurance Changes June 2013 (mylouisvillekentuckymortgage.com)
How to Get Qualify for FHA Streamline Mortgage Refinance Program (mylouisvillekentuckymortgage.com)
Longer Mortgage Insurance To Be Required on FHA loans, beginning June 3rd (gbsheltermortgagemi.wordpress.com)
Floridians Who Buy Again After a Foreclosure or Short Sale Save $35,000 on Average by Purchasing Foreclosed Homes (virtual-strategy.com)
Kentucky FHA Mortgage Guideline Changes for 2013 Lawrenceburg, KY and Anderson County (trulia.com)
Finance Friday: FHA mortgage insurance premium changes set to take effect June 3rd (vaned.typepad.com)
Conventional Loan or FHA, Which Is Better? – Outpost (mylouisvillekentuckymortgage.com)
Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Ky First Time Home Buyer Loans (louisvillekentuckyvamortgage.blogspot.com)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: All About Lock-Ins (louisvillekentuckyvamortgage.blogspot.com)

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Louisville Kentucky FHA Streamline Mortgage Refinance Progra,

How to Get Qualify for FHA Streamline Mortgage Refinance Program

How to Get Qualify for a Kentucky FHA Streamline Mortgage Refinance Program

Individuals who are in the position of needing FHA loan mortgage refinance are in luck.

Pittsfield, MA — (SBWIRE) — 05/17/2013 — Real-estate-yogi.com is here to share its wisdom on the ins and outs of this process, such as:

– Qualifications for FHA Streamline Refinance- The FHA Streamline Refinance Program- No Verification Necessary- “Purpose” for Refinance

Eligibility Requirements

Oddly enough, the FHA Streamline mortgage refinance program is one of the easiest to qualify for. All one has to have is a current FHA-insured mortgage loan. To refinance it, one does not need a new appraisal of his home; the FHA will count the original value of the house as its existing worth. The only homeowners who cannot qualify for this program are those whose conventional loans are owned or serviced by Sallie Mae or Freddie Mac.

The Streamline Mortgage Refinance Plan

There are official rules for participating in an FHA mortgage Streamline refinance. The first of these is that one must have an excellent payment record that goes back at least three months. Another is that all loans must be current at the time they are closed upon. Also, the FHA mandates that borrowers complete 6 mortgage payments on their FHA mortgages, and that no less than 210 days go by from the most current closing to qualify for Streamline refinance.

What Verification?

Another perk of FHA Streamline mortgage refinance is that there is no verification of … anything, really. A person should be aware of the FHA Streamline refinance mortgage rates, but that’s all he’ll need to know. The FHA does not require income verification, proof of employment, or that one provide income tax returns. It also doesn’t look at one’s credit score because it relies on payment histories to determine future loan functioning. Add to that the fact that there’s no need for an appraisal, and this is a pretty good deal.

Refinance must have a “Purpose”

People who participate in an FHA loan mortgage refinance have to have a good, legitimate reason for doing so. They cannot simply decide to refinance their mortgage. This “purpose” is referred to by lenders as the Net Tangible Benefit. Basically, the Net Tangible Benefit reduces the principal plus interest plus insurance portion of a mortgage payment by at least 5%. One reason to refinance is to go from an adjustable rate mortgage to one with a fixed rate. Doing this makes it much easier to budget the payment each month because it will always remain the same.

—

Joel Lobb (NMLS#57916)Senior Loan Officer502-905-3708 cell502-813-2795 faxjlobb@keyfinllc.com

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

http://mylouisvillekentuckymortgage.com

—

Kentucky FHA Mortgage Guidelines for 2013 (louisvillemortgageguide.com)
Louisville Kentucky mortgage rates (louisvillekymortgage.net)
When Should You Refinance Your Mortgage? (realtorpegsdblog.wordpress.com)
Steps for refinancing FHA Mortgage Loans (homemortgagesloan.wordpress.com)
Federal Housing Administration to Make Mortgage Insurance Premium… (prweb.com)
Longer Mortgage Insurance To Be Required on FHA loans, beginning June 3rd (gbsheltermortgagemi.wordpress.com)
Lodi CA FHA Streamline Loans – Superb Home Loans – Call us at (916) 2388884 (superbhomeloans.wordpress.com)
Help for Underwater FHA borrowers (rrich741.wordpress.com)
453 Payday Loans $@ Refinance Mortgage Fha (grfwfdrl.wordpress.com)
*$~ Freedom Mortgage Fha Streamline Refinance Reviews (dccrvnrg.wordpress.com)

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Kentucky FHA Streamline Refinance

Image adapted from US fed gov't source nationa... — Image adapted from US fed gov’t source nationalatlas.gov Category:Congressional districts of Kentucky (Photo credit: Wikipedia)

Our Kentucky FHA lenders can help you buy a home with no money down or refinance to the lowest rates possible!

via Kentucky FHA Streamline Refinance.

via Kentucky FHA Streamline

Refinance.

Kentucky FHA Mortgage Guideline Changes for 2013 Lawrenceburg, KY and Anderson County (trulia.com)
FHA requirement changes to mortgage insurance, higher credit score needed (kentuckyfirsttimehomebuyer.com)
Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Kentucky USDA Rural Housing Loans : No closing cos… (mylouisvillekentuckymortgage.com)
Kentucky First Time Home Buyer Grants and Loan Programs (kentuckyfirsttimehomebuyer.com)
Kentucky FHA Streamline Mortgage Refinance Program at Lower Interest Rates (louisvillemortgageguide.com)
Kentucky First Time Home Buyer (Louisville, Ky) (kentuckyfirsttimehomebuyer.com)
Different Types of Mortgage Loans available for 2013 Kentucky Home buyers and homeowners (kentuckyfirsttimehomebuyer.com)
Kentucky FHA Mortgage Guidelines for 2013 (louisvillemortgageguide.com)

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Louisville Kentucky Home Inspections. Things to Look for.

A list of home inspectors in Louisville Kentucky.

Home Inspector Louisville – Independent Non-Biased Opinion

http://www.knowbeforeyoubuy.net

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Call 502-759-6355 You are my CLIENT

3111 Annadale Ct, Louisville, KY
(502) 759-6355 – Directions
Crepps Home Inspection – License # KY-3058 | crepps-hi.com

http://www.crepps-hi.com

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FHA, VA, USDA, and Kentucky Housing Corporation (KHC) down payment assistance programs with Joel Lobb’s expertise

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Customer Testimonials

We just moved here the first of January in 2017 from Ohio to the Louisville, KY area and we found Joel’s website online. He was quick to respond to us and got back the same day on our loan approval. He was very knowledgeable about the local market and kept us up-to date throughout the loan process and was a pleasure to meet at closing. Would recommend his services.

Angela Forsythe

“We were searching online for mortgage companies in Louisville, Ky locally to deal with and found Joel’s website, and it was a godsend. He was great to work with, and delivered on everything he said he would do. I ended up referring my co-worker at UPS, and she was very pleased with his service and rates too. Would definitely vouch for him.” September 2016

Monica Leinhardt

“We contacted Joel back in July 2011 to refinance our Mortgage and he was great to work with. We contacted several lenders locally and online, and most where taking almost 60 days to close a refinance, Joel got it done in 23 days start to finish,I would definitely recommend him. He got us 3.75% with just $900 in closing costs on our FHA Streamline loan.

Kayle Griffin

“Joel is one of the best Mortgage Brokers I have ever worked with in my sixteen years in the real estate and mortgage business.” May 25, 2010

Tim Beck

“Joel has always worked very hard to keep his word and to work out seasonable solutions to difficult problems. He is truly an expert in FHA and other type loans.” September 1, 2010

Nancy Nalley

“I have worked with Joel since 1998. He is a great loan professional.” I refer most of my Louisville, Kentucky area home buyers to him and he always take special care of them. August 23, 2012

Jon ClarK
“Joel Lobb is a real professional in the lending industry, with many years of experience, he is the one to go to for any mortgage lending needs.” August 22, 2011

RICHARD VOLZ , Residential Sales , Remax Foursquare Realty

“When looking to purchase our new home in 2006, I had the pleasure of meeting Joel Lobb. Not only was he personable and easy to reach, he was extremely knowledgable in his field and made sure to find us the best rate and a top notch mortgage company. We were able to complete the process in less than 3 weeks with his expertise. I find Joel to have the utmost high integrity and I recommend him to anyone who say’s they are need of mortgage assistance. He is also fantastic and keeping everyone up to date on the latest in the housing industry through his twitter posts. He provided great results for our family and we still communicate to this day!” August 21, 2010

Stacie Drake

“We first use Joel on our new home purchase in 2007 in St Matthews, Kentucky area and he was great to work with. We have since refinanced our home with him in 2010 when rates got really low and he has always delivered on what he says. I could not imagine using anyone else.”

Melody Glasscock March 2014

Absolutely Amazing!! I emailed Joel after I had just got a denial from a bank and just thought i would try to get some advice on what my next steps would be to get a house. I honestly didn’t expect to even get a reply because my credit is not great. That was about a week and a half ago. I just signed a contract on a house last night. ONLY because of Joel Lobb. He even worked with us throughout the weekend, which shocked me. Best decision I have ever made. THANK YOU SO MUCH FOR WORKING WITH US THROUGHOUT THE ENTIRE PROCESS.

Cee Bellisle August 2017

Contacted him about buying a home and he was great to work with. I was moving to Louisville Ky to take a new job and he walked me through the entire process. He explained to me all the different options for FHA, VA, USDA mortgage loans and credit score requirements versus Fannie Mae. Since I was a first time home buyer I needed alot of help and guidance. I would definitely recommend him. Fast to respond and available to answer questions that I or my realtor had after hours.

Anderson Johnson June 2018

We moved from Michigan to Northern Kentucky area and we were really impressed. We got a USDA loan no money down and closed in less than 3.5 weeks. We shopped around online with other lenders but Joel was always first to respond and his rates were just a little better than other lenders. He kept us informed through the process along with our realtor and there was absolutely no surprises like we heard from other co-workers and friends that they experienced in their loan process. We have already referred another co-worker to Joel . He’s AWESOME!

Patty Kingston

Joel Lobb (NMLS#57916)
Senior Loan Officer

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3

Louisville, KY 40223

Company ID #1364 | MB73346

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

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.

—

Website Fine Print The content provided on this website is presented or compiled by Joel Lobb and is provided for informational purposes only. It does not necessarily represent the views or opinions of his employer. Joel Lobb or his employer assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information disclosed, or represents that its use would not infringe privately owned rights. The mortgage or financial services or strategies mentioned in this website may not be not suitable for you. This website participates as an Equal Opportunity Lender. All rights Reserved. Joel Lobb is a Licensed Mortgage Originator: NMLS #57916. Legal Disclaimer This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans. **Download Fair Housing Booklet – CLICK HERE All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines.

PRIVACY POLICY
“Site” refers to this Internet web site ) and its related services. “You” or “User” refers to a registered user of this Site. “American Mortgage Solutions.” or “We” refers to American Mortgage Solutions..
This Site contains links to other sites.
American Mortgage Solutions. is not responsible for the privacy practices of the content of any other Web sites to which We link or to which We are linked. We encourage You to read the posted privacy statement whenever interacting with any web site.
The Work Space.
This area of the Site is for the benefit of Users. The private and shared Work Space areas of the Site help to facilitate communication and the exchange and sharing of information. The information contained in private work spaces shared between Users and American Mortgage Solutions. is not used for any purposes other than to facilitate communication and the exchange of information between the parties involved.

Information We Gather.

Registration.
If You register to use or provide services using American Mortgage Solutions., we may collect and store information that specifically identifies You or your account (“Personally Identifiable Information”). The required information may include your User ID, password, first name, last name, business name, address, city, state, zip/postal code, phone, fax, email and web site address. We may, in the future, include other optional requests for information from You, to help us to tailor the Site for You and deliver personalized information to You.

Online Surveys and Contests.
American Mortgage Solutions. may conduct online user surveys to collect information about our Users preferences. These surveys are optional and if You choose to respond, your responses will be kept anonymous. Similarly, we offer contests to qualifying Users in which we ask for contact and demographic information such as name, email address and mailing address.

Automatically Gathered Information.
American Mortgage Solutions. automatically collects your browser type and browser software version to tailor the presentation of the services to your platform and to maintain a record of your activity on the Site. American Mortgage Solutions. may also use cookies to enable users to specify unique preferences and to track user trends and patterns. Users always have the option of disabling cookies via their browser preferences. If You disable cookies on your browser, please note that some parts of our Site may not function as effectively or may be considerably slower. As an automatic process, our web server software records a log file of IP addresses that access the Site. We also collect IP address information but do not ordinarily link IP addresses to Users Personally Identifiable Information. However, We can and will use IP addresses to identify a User when We, in our sole discretion, determine that it is necessary to enforce compliance with our Terms and Conditions of Use or to protect our service, Site, customers or others.

Your Public Profile.
As part of registration, You may be required to provide contact information such as name, address, city, state, zip, phone, fax and email address, some of which can be displayed to other users of our service in an effort to simplify communication between members.

How We Use Information.

Registration Information.
We use Personally Identifiable Information for our own internal purposes including contacting You via email to inform You about updates to our services and providing You with other information that we deem necessary. We reserve the right to disclose your information as required by law. We do not rent or sell our Users Personally Identifiable Information to third parties.

Advertising.
At this time we do not display banner advertising on our site, but we may send You email communications including information that we think may be of interest to You. You may opt out of receiving these promotional email communications, either when You register to become a Member, or at any time thereafter by contacting us.

Demographic Information, Surveys and Contests.
The demographic information that American Mortgage Solutions. collects in the registration process and through online surveys may be used to help us improve our services to meet the needs and preferences of our Users. This may include targeting advertising to You about our services. Information we gather through a contest may also be disclosed to third parties as necessary for prize fulfillment and other aspects of any contest or similar offering.

Comments Submitted by Users.
American Mortgage Solutions. constantly seeks to improve the quality of the services We provide and the User experience on the Site. We value your input and encourage You to help us expand and make improvements to the Site by providing Us with any thoughts or comments You might have regarding our services or the operation of the Site. You can submit any comments by contacting us. If You provide this information, we will only use it to acknowledge or respond to your comments. In certain circumstances, we may ask for your permission to post your comments in marketing or promotional materials.

Security.
We will use commercially reasonable methods to keep Personally Identifiable Information securely in our files and systems. Please note that with current technology, we cannot guarantee the security of your data as it travels over the Internet.

How We Respond To Browser Do Not Track Requests
American Mortgage Solutions. and other parties not affiliated with us may collect Personally Identifiable Information about your online activities over time and across different websites when you use our website or the services offered on our website. Industry standards regarding how to handle “Do Not Track” requests from web browsers are still evolving and there is currently no set of industry standards for handling such requests. As such we may not separately respond to or take any action with respect to a “do not track” configuration set in your internet browser. At this time, we do not have any protocol in place that allows you to opt-out of internet tracking. If you have any questions regarding our internet tracking methods please contact us.
Terminating Your Membership.
We save your Personally Identifiable Information until your membership with us is terminated. To terminate your membership, contact us. If You terminate your membership, your Personally Identifiable Information cannot be recovered. You may continue to receive email communications for a short period of time until we have updated all of our databases. After termination of your membership, your Personally Identifiable Information may remain on our archived database and records for a reasonable time as residual information. We will not use this residual information. Notwithstanding the above, we will maintain information on Users who have been removed for violating our Membership Agreement.

Correcting/Updating Your Information.
To correct and/or update your information, please contact us.

Contacting Us.
If You have any questions about this Privacy Agreement or the practices of this Site, you may contact us at:
American Mortgage Solutions.
Customer Service
10602 Timberwood Circle, Suite 3
Louisville, Kentucky 40223
502-905-3708

Kentucky Mortgage Requirements for FHA, VA, USDA and Fannie Mae

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

Pay Every Single Bill on Time, or Early, Every Month

Credit Cards: Lower Balances Are Always Better

( If you don’t have a credit card, I suggest getting a secured credit card through Capital one Secured Card Or Open Sky Credit card...click this link here

Another big factor in calculating a credit score is the amount of credit card debt. Credit bureaus look at two things when analyzing your credit cards.

Credit Cards Part 2: 1 or 2 is Better Than a Wallet Full

Keep the Good Stuff Right Where it is

Stop Filling Out Credit Applications

Which Score Gets Used?

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Kentucky FHA Loans are good for borrowers who have the following:

Kentucky Conventional loans are usually reserved for the following:

FHA Loans vs Conventional Loans

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Credit Score Minimum Requirement

OTHER COMPARISONS

DOWN PAYMENT GIFTING

CONCLUSION

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CREDIT REQUIREMENTS FOR KENTUCKY FHA FINANCING

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Disadvantages of Kentucky FHA Mortgage Loans

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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.

Lower Credit Standards and Credit Scores for FHA loans

Mortgage Insurance on FHA loans

Why would you consider a FHA mortgage?