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)
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/

Kentucky FHA Loan Requirements For Loan Approval.

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FHA Handbook 4000.1 Updates

Administration (FHA) Single Family Housing Policy Handbook 4000.1. These updates are effective September 30, 2016 and

 Clarification that an Upfront Mortgage Insurance Premium (UFMIP) refund calculation applies even if original UFMIP was
not financed.
 Mortgage Debt Not Included in Credit Report: Clarification that a manual downgrade is not required when there is no history of late payments, as detailed below.
o Not currently delinquent; and
o No 30 day late payments within 12 months of the case number assignment date; and
o No more than 2 x 30 day late payments within 24 months of the case number assignment date.
 A link has been added in the FHA Product Description from Mortgage Payment History requirements to “Credit History
Requirements for Manually Underwritten Loans.”
Appliances that add contributory value must be operable.
 Mechanical components and utilities: The appraiser must report the utility, safety, and capacity of the mechanical systems.
The appraiser must observe and operate all applicable mechanical systems and utilities. In conjunction with this guidance,
existing FHA Handbook guidance on the following topics will be added:
o Electrical System
o Heating and Cooling
o Plumbing
o Utilities

If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.


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 views of my employer. Not all products or services mentioned on this site may fit all people

FHA mortgage insurance premiums won’t be going down in 2015 | 2014-11-18 | HousingWire

FHA mortgage insurance premiums won’t be going down in 2015 | 2014-11-18 | HousingWire.

Frequently Asked Questions about FHA Kentucky Home Loans

Frequently Asked Questions about FHA Kentucky Home Loans.

via Frequently Asked Questions about FHA Kentucky Home Loans.

 

FHA to 50%…up to 55% with comp factors and a strong borrower

Manual UW’s on FHA/ to 620 Score

FHA purchases and R/t refi’s down to a 580 with DU Approved Eligible

— 

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

Wells Fargo cheered by Realogy, Home Depot leaders for loosening up on FHA loans | Inman News

Wells Fargo cheered by Realogy, Home Depot leaders for loosening up on FHA loans | Inman News.

via Wells Fargo cheered by Realogy, Home Depot leaders for loosening up on FHA loans | Inman News.

Louisville Ky FHA Mortgage Loans

NMLS #57916

Louisville Ky FHA  Mortgage loans

Free Credit Report and Pre-Approval within 1 hour. Click my Picture

 If you are looking to step into the benefits of homeownership in the Louisville Ky area  then we can help you. Let us guide you to the best Louisville Ky mortgage, Louisville Ky mortgage refinance, Louisville Ky  home loans, or any other mortgage program in the city as per your requirements. Our reliable mortgage lenders provide you best terms at cheap rates.

Louisville Ky  Mortgage Loans

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Best terms and rates on a Louisville Ky home loans is now just a mouse click away. Apply now and secure the best terms and rates on your preferred mortgage program. We deal in a variety of Louisville home loans, including Louisville first residential mortgage, Louisville home loan refinance, and more…

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Purchasing Louisville Home Loans can be a difficult task especially if you are new to the mortgage jargon. Let our reliable mortgage professionals help you in obtaining home loans in Louisville at best possible terms and prices. Key to receiving best terms on your Louisville home loan lies in comparing multiple offers and identifying a reliable state mortgage lender offering best terms and condition at lowest possible interest rates. Prior to applying for mortgage loans in Louisville you should figure out how much mortgage you can afford. Make sure you have sufficient savings to make required levels of down payments. There are many home loan programs in Louisville that require only a low down payment or no down payment, with less or no closing costs. There are also numerous options to choose from in the event you are looking to purchase a second mortgage or refinance existing mortgage.

Let us help you find offering best mortgage plans in tune with your requirements. Spare a few seconds to fill out our simple no obligation mortgage quote. We will study your needs and will find you excellent Louisville home loans at lowest possible rates.

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Act on the recommendations from your friends and co-workers while selecting Louisville mortgage lenders. They have a variety of financing options like Louisville mortgage loans, Louisville home loans etc… After selecting your kentucky Louisville mortgage lenders, contact them and appraise them about your financial situation and plans for your property. Check out the various loan programs suggested by your mortgage company in Louisville. Also note your lenders’ fees for each loan program. Compare rates and fees of different Louisville mortgage lenders to ascertain the competitiveness. Try to negotiate with the mortgage company in Louisville in case their rates and fees are not competitive.

A Louisville mortgage company can answer your questions about mortgage rates in Louisville only after you have decided on Louisville mortgage. If you want best mortgage rates, you have to satisfy your lender about your credit score and credit history. Remember that lenders will not commit to mortgage rates in Louisville until you have set a closing date. You may keep asking your lenders for mortgage rates but note that those rates are hypothetical. Lenders are not going to commit themselves unless you commit yourself.

 

Louisville Ky FHA Loans

Free Home Loan Application-Call today at 502-905-3708 or email kentuckyloan@gmail.com for your free credit application today
NMLS# 57916
Equal Housing Lender

Louisville Ky FHA Loans.

via Louisville Ky FHA Loans.

Louisville Ky FHA Loans

Louisville Ky FHA Loans

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


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


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


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

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

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

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


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

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

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

Louisville Ky FHA Loans

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