5 Things I Wish I’d Knew Before Getting an FHA Mortgage

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via 5 Things I Wish I’d Knew Before Getting an FHA Mortgage

Interest Rate Decrease for USDA Rural Housing Loans Direct Programs — Kentucky USDA Mortgage Lender for Rural Housing Mortgage Loans

Interest Rate Decrease for SFH Direct Programs October 17, 2019 Programs Current Interest Rate Interest Rate Effective 11/1/19 Section 502 Direct – Program Loans 3.125% 3.000% Section 502 Direct – Non-Program Loans 3.625% 3.500% Section 524 Housing Site Development Loans – Non-Self-Help 3.125% 3.000% For Program Information Single Family Housing Direct Loans Single Family […]

via Interest Rate Decrease for USDA Rural Housing Loans Direct Programs — Kentucky USDA Mortgage Lender for Rural Housing Mortgage Loans

New Condominium Approval Rule For Kentucky FHA Mortgage Loans 

New Condominium Approval Rule For Kentucky FHA  Condo Mortgage Loans 
The Federal Housing Administration (FHA) announced the publication of its Condominium Project Approval Final Rule effective with new case number assignments on or after October 15, 2019.
For more information, please read the press release issued by the Department of Housing and Urban Development (HUD).
Kentucky Mortgage loans done through FHA’s new condo rule and the new Condominium Project Approval section of the Single-Family Housing Policy Handbook were designed to be flexible and responsive to market conditions, and provide a comprehensive revision to Kentucky FHA condominium project approval policy. In particular, the new policy will allow certain individual condominium units to be eligible for
FHA mortgage insurance, even if the condominium project is not FHA approved. These policies became effective on October 15, 2019. Read FHA’s new condominium approval regulation.
The Legacy “Spot Condo” is Now Single Unit Approval
Effective for case number assignments on or after October 15th, 2019, Kentucky FHA borrowers may obtain Single Unit Approval (SUA) on non-FHA approved condominium properties that meet eligibility requirements (detailed below).

A Significant Kentucky FHA  First-Time Buyer Opportunity for Condo Lovers!

  • As a result of Kentucky FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
  • Condo projects that are not currently on Kentucky  FHA’s list of approved condos may be eligible for an FHA Single Unit Approval.
  • Target opportunities include previously approved projects that are now expired or were never approved.
Kentucky FHA Single Unit Condo Eligibility

  • At least five units
  • 10 or more units, up to 10% may be FHA-Insured
  • Less than 10 units, up to two FHA-Insured units
  • At least 50% owner-occupancy
  • HOA Budget 10% reserve requirement (or amount supported by reserve study)
  • Applications must receive an Accept from TOTAL Mortgage Scorecard or have a maximum 90% LTV for an Accept Risk Classification requiring a downgrade to Manual Underwriting.
  • Maximum of 35% commercial space
  • Maximum 10% individual ownership
  • Has a Certificate of Occupancy that was issued at least one year ago or has been occupied
  • Manufactured homes, gut rehab or new construction is not eligible
  • No more than 15% of units are 60 days delinquent
  • Not located in an approved condominium project or unapproved phase of a condominium project with an approved Legal Phase in HOA dues

 

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

 

 

Company NMLS ID #1364
Individual NMLS ID #57916

http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/42056

This is not a commitment to make a loan.  Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements for refinances, 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.  Joel Lobb and his employer, American Mortgage Solutions is not acting on behalf of or at the direction of HUD/FHA or the Federal Government.  Equal Opportunity Lender and Equal Housing Lender.  

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
Company NMLS ID #1364

 

Gift Funds for a Kentucky FHA Mortgage

Getting Gift Funds for your down payment on a Kentucky FHA Mortgage. 

Image result for gift funds fha infographic

What is the Great Way to do it?

To avoid getting turn down for your Kentucky FHA mortgage loan if you are getting a gift from your mom, dad or another family member, please follow these rules:

The source of the down payment must always show Kentucky FHA gift funds and their source (usually a relative). It cannot be a personal loan or cash.

Common Gift Fund Issues:

Scenario 1 – only gift funds being used in the transaction
Gift amount: $5,000

Common submission problem:

  • Source of down payment submitted as “checking and savings account.”
  • Asset submitted as “checking account” with the financial institution as “Gift from Relative.”

Correct submission practice:

  • Source of a down payment should be submitted as an “FHA Gift from a relative for $5,000”
  • If funds are not yet in the bank account, DU should be submitted as miscellaneous assets, “Gift for $5,000”

Scenario 2 – (gift funds and borrower’s own funds being used in transaction)
Gift amount: $5,000

Common submission problem:

  • Checking account has $7,000 in total – including the gift.
  • Source of down payment submitted as “checking and savings account.”
  • Asset submitted as “checking account”:
    • Financial institution with $7,000 AND
    • Miscellaneous asset, “Gift from relative of $5,000”
  • When ran this way, the gift is put through twice and assets are overstated by $5,000.

Correct submission practice:

  • Source of down payment should be submitted as an “FHA Gift from relative $5000.”
  • Since the gift fund is already in the Borrower’s bank account, DU should be submitted as “checking or savings” in ABC account in the amount of $7,000. DU will recognize that $5,000 of the $7,000 in the account is from a gift. 
Scenario 3 – (gift funds and borrower’s own funds being used in transaction)
Gift amount: $5,000Correct submission practice:
  • Checking account currently has $2,000. The $5,000 gift will be wired to the title company.
  • Source of down payment submitted as “checking and savings account.”
  • Asset submitted as “checking account:”
    • The financial institution with $7,000, AND
    • Miscellaneous asset, “Gift from relative of $5,000.”

Correct submission practice:

  • Source of down payment should be run as “FHA Gift from relative $5,000.”
  • Since gift funds will be provided to the title company and not the borrower:
    • DU should be submitted as checking or savings in ABC account in the amount of $2,000, AND
    • Miscellaneous assets, “gift funds as $5,000.”

 

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American Mortgage Solutions, Inc.
 

Text/call:      502-905-3708

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

 

 

How does Flood Insurance Affect A Kentucky FHA Mortgage Loan Approval?

A woman stands in her flooded living room. There are a couple of inches of water over the floor and she has a shovel and water-proof boots on. The National Flood Insurance Program logo has been embedded into the top left corner of the photo.

 

Here are the facts about flood insurance in regards to FHA mortgage loans in Kentucky:

  1. A lender will require if the Kentucky home mortgage property is in a flood zone. High-Risk areas are A or V. Zone X doesn’t require it.
  2.  The flood zone is based on local elevation certificates. Sometimes the surveys on these certificates are old, and updates can be requested. There is usually a cost involved, but it can lower the Zone so it may be worth it.
    3. Kentucky Insurance companies think of floods as very different than the general public. Most people think flooding is when a body of water rises and gets into your house. Floods are defined as any ground-water entering a house from the outside. Even if you are not in a flood zone, groundwater damage won’t be covered by homeowner’s insurance.
    4. Kentucky Flood insurance is priced by FEMA regardless of what the company writes it. All rates will be the same and shopping won’t help. If one company has different rates, it will always be a difference in coverage.
    5. Flood insurance in Kentucky flood zones are expensive, but outside flood zones, it is more cost-effective. This is up to the individual to decide whether they want it or not.
    6. Flood insurance coverage does not begin until 30 days after the policy is bound and the Kentucky Mortgage has closed. New Purchase no waiting period.
    7. Kentucky Flood insurance costs are higher for non-owner-occupied property such as rental property.
    8. A customer in Kentucky can mitigate costs by only covering the property structure or contents only in the lowest floor.

 

What is the mobile home or manufactured home is located in a Flood Zone for a Kentuck FHA Mortgage Loan Approval?

If the finish grade beneath the Kentucky Mobile Home or manufactured home is at or above the 100 yr return frequency flood elevation, so the only other option to be eligible for FHA financing is if a LOMA is issued by FEMA.   Like I said, I do not know if FEMA will issue a LOMA, but worth a try.  Here are Kentucky FHA guidelines for mobile homes in Flood plains

(d) Eligibility for Manufactured Housing in SFHAs The finished grade level beneath the Manufactured Home must be at or above the 100-year return frequency flood elevation. If any portion of the dwelling, related Structures or equipment essential to the Property Value and subject to flood damage for both new and existing Manufactured Homes are located within an SFHA, the Property is not eligible for Kentucky FHA mortgage insurance unless the Mortgagee obtains:

  • a FEMA issued LOMA or LOMR that removes the Property from the SFHA; or
  • a FEMA National Flood Insurance Program (NFIP) Elevation Certificate (FEMA Form 086-0-33) prepared by a licensed engineer or surveyor stating that the finished grade beneath the Manufactured Home is at or above the 100-year return frequency flood elevation, and insurance under the NFIP is obtained.

 

When making a determination for flood insurance purposes, the controlling document is the current effective Flood Insurance Rate Map. FEMA understands that sometimes structures will be shown to fall within the flood hazard area on the flood map when in reality the structure is elevated above the flood hazard. FEMA has created a process called the Letter of Map Amendment (LOMA) where they will review the elevation of the structure to determine if it can be removed from the flood hazard.

 

FEMA specifically reviews the Lowest Adjacent Grade and compares it to the Base Flood Elevation. Unfortunately, because FEMA says the FIRM is the controlling document, SLNF is not able to revise our determination until FEMA has amended the FIRM through the LOMA process. Because the elevation certificate has already been obtained, there will not be any additional cost to apply for the LOMA.

 

Below is a link to the FEMA website, where an instruction packet (How to fill it out, what to include, and where to send it) and the application can be found for the LOMA. You may also call the FEMA Map Information Exchange at (877) FEMA MAP with questions regarding the LOMA process.

The LOMA process generally takes 6-8 weeks to complete. The current year’s insurance premiums will be refundable through the National Flood Insurance Program (NFIP) if a LOMA removal is issued for the structure. Please let us know if you have any questions.

http://www.fema.gov/letter-map-amendment-letter-map-revision-based-fill-process

Thank you,

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How to Get A Kentucky FHA Upfront Mortgage Insurance Premium (UFMIP) Refund

 

 

How to refinance a Kentucky FHA loan in Kentucky?How do you get back a Kentucky FHA Upfront Mortgage Refund on your insurance on the old Kentucky FHA Loan?

 

KY FHA Upfront Mortgage Insurance Premium (UFMIP) Refunds Explained

A Kentucky mortgage holder with an  FHA mortgage insurancemay get a  refund if refinancing within three years of closing?

FHA UFMIP partial refunds are available for the first 3 years after loan consummation. The refund decreases by 2% each month the loan is in place. The refund amount / percentage will be provided at the time of case number assignment.

Here is how it works on a Kentucky FHA Loan on the refund:When doing an FHA to FHA refinance, the refund will be applied to the upfront mortgage insurance premium on the new loan:
MIP refunds are available for an FHA streamline refinance after the applicable seasoning period for these loans.
Kentucky FHA mortgage insurance refunds are available for FHA loans opened less than 3 years ago.
Requires a refinance into another FHA loan to receive a MIP refund.
How Much is the Refund on your Kentucky FHA Loan?

The chart below details the available refund percentage over time. In month one, the borrower starts out at 80%. In month two, it has decreased by the prescribed 2% amount and is now calculated at 78%, and so on. So, if the original UPMIP was $1000, 78% of that would be $780 that would be applied against your borrower’s new UPMIP.

Kentucky FHA MIP Refund Chart For Refinance

 

 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


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

http://www.nmlsconsumeraccess.org/
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.

 

What is a Kentucky Mortgage Rate Lock?

Locking in a Kentucky Mortgage Rate?

Louisville Kentucky Mortgage Loans

via What is a Kentucky Mortgage Rate Lock?

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oel Lobb
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). USDA Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

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