Qualifying for an FHA Loan in Kentucky

When it comes to buying a home in Kentucky, FHA loans are a popular choice for many first-time homebuyers due to their flexible qualifying criteria. If you’re considering an FHA loan in the Bluegrass State, understanding the key qualifying factors is crucial. Here’s a comprehensive guide to the criteria you need to know:

1. Credit Score Requirements:
   • FHA loans are known for accommodating borrowers with lower credit scores. While the minimum required credit score can vary, typically, a credit score of 580 or higher is needed to qualify for the minimum down payment of 3.5%. However, borrowers with credit scores between 500 and 579 may still be eligible with a higher down payment, usually around 10%.
2. Down Payment:
   • The minimum down payment for an FHA loan in Kentucky is 3.5% of the home’s purchase price. This is advantageous for buyers who may not have substantial savings for a larger down payment, making homeownership more accessible.
3. Work History:
   • Lenders typically look for a steady 2 year employment history when considering FHA loan applications. A consistent work history, preferably with the same employer or within the same field, helps demonstrate financial stability and the ability to repay the loan.
4. Debt-to-Income Ratio (DTI):
   • The debt-to-income ratio is a crucial factor in mortgage approval. For FHA loans, the maximum allowable DTI ratio is typically around 40% to 45% of your gross monthly income and can go higher up to 56% with good credit scores, large down payment or shorter term loan although lenders may consider higher ratios in certain cases if compensating factors are present.
5. Bankruptcy and Foreclosure:
   • FHA loans have lenient guidelines regarding bankruptcy and foreclosure. Generally, borrowers with a past bankruptcy may qualify for an FHA loan after two years if they have re-established good credit and demonstrated responsible financial behavior. For foreclosures, the waiting period is usually three years.
6. Mortgage Term:
   • FHA loans offer various mortgage term options, including 15-year and 30-year fixed-rate loans. The choice of term depends on your financial goals and ability to manage monthly payments.
   • Occupancy: Primary residences not for rental properties
   • Mortgage Insurance on the loan for life of loan. Larger down payments and shorter terms will reduce the upfront mi and monthly mi premiums
   • can be used for refinances, not only for purchases.
   • Max FHA loan in Kentucky is $498,257. This changes every year
   • No income limits nor property restrictions on where home is located
   • Can close within 30 days typically with good appraisal and title work

Understanding these qualifying criteria can help you navigate the FHA loan application process in Kentucky more effectively. Working with an experienced mortgage professional can also provide valuable guidance and assistance tailored to your specific financial situation and homeownership goals.

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

 

 

 

 

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

 

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).

 

Kentucky FHA Mortgage Loans with Private Flood Insurance

HUD INCREASES FLOOD INSURANCE OPTIONS FOR KENTUCKY HOMEOWNERS WITH KENTUKY FHA MORTGAGES LIVING IN FLOOD AREAS

Federal Housing Administration to allow private flood insurance policies on insured single-family mortgages in special flood hazard areas

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), is announcing today that effective December 21, 2022, it will allow homeowners with FHA-insured mortgage financing to obtain flood insurance policies that conform to FHA requirements from private insurance providers. The change was announced through a final rule published in the Federal Register today and in a companion Mortgagee Letter, also published today, that provides implementation guidance for FHA-approved lenders.

FHA requires that insured mortgages for properties in Federal Emergency Management Agency (FEMA)-designated Special Flood Hazard Areas (SFHAs) have flood insurance. Previously, only flood insurance obtained through the National Flood Insurance Program (NFIP) was permissible for FHA-insured mortgages, which limited choices for consumers.

“Today, HUD is increasing the flood insurance choices available to individuals and families with FHA-insured loans in areas that FEMA has designated to be at special risk for flooding,” said HUD Secretary Marcia L. Fudge. “Flood insurance is required to ensure families and individuals are prepared if disaster strikes. Increasing consumer options for this important protection is one way we are building more resilient communities in the face of climate change.”

“We know borrowers face affordability challenges right now, yet a flood can be devastating to a family who is not properly insured,” said Federal Housing Commissioner Julia Gordon. “The choice to select a private flood insurance option may enable some borrowers to obtain policies that are less expensive or provide enhanced coverage.”

As part of its implementation, as of December 21, 2022, FHA will require lenders to provide detailed flood insurance coverage information when electronically submitting mortgages for FHA insurance on properties in SFHAs. This data collection is an objective included in HUD’s Climate Action Plan and will allow FHA to capture and analyze flood insurance information on mortgages in its portfolio at a more granular level than has been possible previously.

Ensuring that borrowers are protected against flood risk is a key component of HUD’s Climate Action Plan. In 2021, HUD released its Climate Action Plan in response to President Biden’s Executive Order on Tackling the Climate Crisis at Home and Abroad. HUD has been implementing this broad approach to the climate crisis that reduces climate pollution; increases resilience to the impacts of climate change; protects public health; delivers environmental justice; and spurs well-paying union jobs and economic growth. The action today further guides the integration of climate resilience and environmental justice into HUD’s core programs and policies. For more information about HUD’s work to advance sustainable communities and address climate change, visit hud.gov/climate.

#fha #fhaloans #fhaloan #floodinsurance #mortgage #homeloan #homebuying #homebuyingtips

Kentucky HUD Homes for Sale with the FHA $100 Down Program

KENTUCKY HUD HOMES SALES INCENTIVES

For a limited time, FHA offers sales incentives on HUD homes that will make these homes more affordable for home buyers when purchasing a property using FHA-insured financing. The incentives VARY from State to State but may include low down payments; sales allowances that can be used to pay closing costs, make repairs, or pay down the mortgage amount; broker bonuses for owner-occupant sales. The benefits of FHA financing are low down payments; competitive interest rates; flexible credit qualifying. To find a HUD-Approved Lender, and for the latest sales incentives in your areas, visit HUDhomestore.com The program incentives are subject to change without prior notice.
Sales Incentives (subject to change without prior notice)	Participating States
$100 Down Payment! Available to Owner Occupant Homebuyers when purchasing a property using FHA-insured financing.	Kentucky HUD Homes for Sale By FHA

Search Results for HUD Homes in KY

13 listings found List Gallery Save Search Email Search View Map Export to Display:  5 10 20

201-405318 409 Mildred Ave South Shore, KY 41175 Greenup County	201-585835 2215 Sharon Rd Ashland, KY 41101 Boyd County	201-648672 882 Whippoorwill Ro Paintsville, KY 41240 Johnson County
201-443322 99 Falls Br Belfry, KY 41514 Pike County	201-612315 2718 Cumberland Ave Ashland, KY 41102 Boyd County	201-654741 801 E Broad Street Central City, KY 42330 Muhlenberg County
201-492365 9655 Marshall Rd Ryland Hght, KY 41015 Kenton County	201-619887 2878 1st Street Petersburg, KY 41080 Boone County	201-662018 711 Aqua Shores Dr Shelbyville, KY 40065 Shelby County
201-569915 1840 Holman St Covington, KY 41014 Kenton County	201-631020 465 Kennedy Rd New Haven, KY 40051 Larue County	201-663813 1501 Old Henderson Rd Providence, KY 42450 Webster County
201-574687 2444 Bardstown Rd Lawrenceburg, KY 40342 Anderson County

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

Text/call:      502-905-3708
fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

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.

How to qualify for a Kentucky FHA Home Loan ?

 

FHA stands for the Federal Housing Administration which is a government agency created to increase home-ownership across the United States all the way back in 1934. The agency itself doesn’t offer home loans but insures loan that are offered by private lenders (i.e. mortgage companies).

It’s important to understand the different types of loan programs available to you and what benefits and drawbacks there are to each type.

For example, if you’re looking to find a fixer upper this may not be the right loan program for you. But an FHA loan may be a better fit for you if you have little cash saved up for a down payment or if you don’t have a high credit score.

Kentucky FHA loan requirements:

• At least 18 years old to apply
• No age limit. just must be 18 years of age to apply.
• Must occupy the home as a primary residence, no rental homes or investment property
• An appraisal must be done by an FHA-approved appraiser.Typically FHA appraisal in Kentucky costs anywhere from low-end $325 to $525 with most FHA lenders in KY.
• Home inspection is not required
• Termite inspection not required
• 2 years removed from Chapter 7 bankruptcy, and 1 year in Chapter 13 bankruptcy is possible to get a loan while in bankruptcy
• Foreclosure or short sale on previous home mortgage requires 3 years removal from those dates.
• Mortgage insurance (MIP) is required
• Upfront Mortgage Insurance Premium is 1.75% and monthly mortgage insurance is .85% or .80% depending on loan term and loan to value.
• Mortgage insurance is for life of loan.
• No matter your credit scores, everyone pays the same mortgage insurance premiums.
• Must have 2 years of employment history proving a reliable source of income
• 500 FICO score requirement with at least 10% down payment
• 580 FICO score requirement with at least 3.5% down payment
• Gifts and down payment assistance programs are allowed to meet your down payment requirements. Cannot come from seller, but seller can contribute up to 6% of the sales price toward buyer’s closing costs and prepaids.
• Student loan payments are factored into the debt-to-income ratio when applying. Typically if loans are deferred, or in an income=based repayment plan, the FHA underwriters will use 1% of the outstanding balance, which sometimes can make it difficult to qualify.
• Your debt-to-income ratio must not be higher than 31% or total debt obligation cannot be higher than 43% of your current income. This is for a manual underwriter, meaning that if the AUS underwriting system by mortgage lenders will approve you for a higher debt to income ratio, that is fine.

 

 

 

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 502-905-3708kentuckyloan@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.

KENTUCKY HUD HOMES FOR SALE

KENTUCKY FHA $100 DOWN PROGRAM FOR HOMEBUYERS IN KENTUCKY​

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FHA’s $100 Down Program​ is allowed for Kentucky Home Buyers buying a home that is owned by HUD or FHA​. The $100 Down sales incentive permits a Borrower to purchase a HUD REO Property with FHA-insured financing with a minimum downpayment of $100.

This program can ONLY be used to purchase homes owned by HUD OR FHA.

Check the link below to see if any properties are offered in your area. If a property is eligible, the listing on the website will specify $100 Down Financing Incentivize.

You can find all current listings for sale by HUD here.

The main factors in qualifying for this​ Kentucky FHA ​ program are that the property must be a HUD REO property and purchased using FHA Financing, aside from these, the requirements include:

1. Occupancy: The property must be purchased for use as your Primary Residence.

2. Property Type: Eligible properties include 1 or 2 unit homes, manufactured homes, condos, and PUDs.

3. Full Price Offer: You must submit an offer for the full listing price. Typically, when you purchase a home, you make an offer to the seller…. we all want to get the best deal so you may offer less than the asking price… or you may offer more if the home you want is being bid on by many buyers…. With HUD REO properties this is not allowed. The sales price HUD has on the listing is what you must offer.

4. Sales Contract: The $100 down payment incentive must be included on the executed sales contract.

5. Cannot have purchased a HUD home within the preceding 24 months

6. Credit Score:​ ​580 is the minimum FICO score you must have to qualify for a FHA Kentucky Home Buyer using the HUD $100 Down loan program. 
7. Usually takes about 30-45 days to close
8. Earnest Money Deposit usually needs to be at least $500 to $1000
9. This is a manual underwriter meaning that your debt to income ratio has to be 31 and 43% respectively
10. No Chapter 7 Bankruptcies in last two years
11. No Foreclosures in last 3 years
12. Clear Cavirs on borrowers.

*Required field, except if Property Case # or Zip Code is entered

Search Results for HUD Homes in KY 1 | 2 | 3 |

47 listings found List Gallery Save Search Email Search View Map Export to Display:  5 10 20 Property Case Address Price Status Bed Bath Listing Period Bid Open Date Details  201-271516 345 Concord Dr White Plains, KY, 42464 Hopkins County $13,600 3 1.00 Extended  11/29/2018 View Street Map it Email Info 201-278709 793 Highway 16 Glencoe, KY, 41046 Gallatin County $24,000 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-339965 2750 Latonia Ave Covington, KY, 41015 Kenton County $33,600 2 1.10 Exclusive  12/03/2018 View Street Map it Email Info 201-340924 1309 Little Pigeon Ct Lexington, KY, 40515 Fayette County $63,000 3 1.00 Lottery  11/29/2018 View Street Map it Email Info 201-347762 307 Elkhorn Green Pl Georgetown, KY, 40324 Scott County $105,000 4 2.10 Exclusive  11/29/2018 View Street Map it Email Info 201-348170 820 Mars Dr Verona, KY, 41092 Gallatin County $48,000 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-362370 194 Batton Loop Morehead, KY, 40351 Rowan County $59,400 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-368065 199 Lake Trail Land Russell Springs, KY, 42642 Russell County $34,400 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-370012 112 Cherry Lane Frankfort, KY, 40601 Franklin County $50,000 2 2.00 Exclusive  12/03/2018 View Street Map it Email Info 201-372013 10057 Elizabethtown Rd Big Clifty, KY, 42712 Grayson County $32,000 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-386189 4701 Dohn Rd Louisville, KY, 40216 Jefferson County $51,000 3 1.00 Exclusive  12/10/2018 View Street Map it Email Info 201-387184 12804 Walnut Creek Dr Alexandria, KY, 41001 Campbell County $159,000 4 2.10 Extended  11/29/2018 View Street Map it Email Info 201-391357 38 Lovelaceville Rd Lovelaceville, KY, 42060 Ballard County $19,600 2 1.00 Extended  11/29/2018 View Street Map it Email Info 201-393499 620 Main Street Uniontown, KY, 42461 Union County $26,100 3 1.00 Extended  11/29/2018 View Street Map it Email Info 201-396375 119 Crane St Somerset, KY, 42501 Pulaski County $30,000 2 1.00 Exclusive  11/29/2018 View Street Map it Email Info 201-401444 151 Eastside Park Dr Butler, KY, 41006 Pendleton County $50,400 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-407845 824 Pike St Sadieville, KY, 40370 Scott County $27,000 1 1.00 Extended  11/29/2018 View Street Map it Email Info 201-411349 115 Jimmy Lovell Ro Dawson Springs, KY, 42408 Hopkins County $75,000 2 1.10 Exclusive  12/10/2018 View Street Map it Email Info 201-412276 386 W Elm St Clay, KY, 42404 Webster County $35,000 3 2.10 Exclusive  12/03/2018 View Street Map it Email Info 201-417838 147 Main Street Newport, KY, 41071 Campbell County $38,500 1 1.00 Extended  11/29/2018 View Street Map it Email Info

1 | 2 | 3

 

Search Results for HUD Homes in KY 1 | 2 | 3 |  47 listings found List Gallery Save Search Email Search View Map Export to Display:  5 10 20 Property Case Address Price Status Bed Bath Listing Period Bid Open Date Details  201-427873 229 Rosedale Ct Covington, KY, 41015 Kenton County $42,400 2 1.00 Extended  11/29/2018 View Street Map it Email Info 201-445853 902 Deer Haven Dr Owensboro, KY, 42301 Daviess County $63,000 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-448631 13302 Horncastle Ave Louisville, KY, 40272 Jefferson County $65,000 4 1.10 Exclusive  11/30/2018 View Street Map it Email Info 201-461769 511 1/2 Cleaver St Elizabethtown, KY, 42701 Hardin County $20,000 1 1.00 Exclusive  12/03/2018 View Street Map it Email Info 201-481525 216 10th St Carrollton, KY, 41008 Carroll County $117,000 4 2.00 Extended  11/29/2018 View Street Map it Email Info 201-483660 204 Village Dr Frankfort, KY, 40601 Franklin County $143,000 3 2.10 Exclusive  11/29/2018 View Street Map it Email Info 201-484750 3256 N Highway 259 Hardinsburg, KY, 40143 Breckinridge County $45,000 3 1.00 Extended  11/29/2018 View Street Map it Email Info 201-503727 207 Canyon Ridge Rd Wellington, KY, 40387 Menifee County $76,000 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-510934 5685 Old State Rd Guston, KY, 40142 Meade County $60,000 3 1.00 Extended  11/29/2018 View Street Map it Email Info 201-513130 109 W Chestnut St Carlisle, KY, 40311 Nicholas County $73,000 3 2.00 Exclusive  11/29/2018 View Street Map it Email Info 201-528046 330 Brookside Dr Danville, KY, 40422 Boyle County $175,000 4 3.00 Extended  11/29/2018 View Street Map it Email Info 201-536556 1504 Robinson St Grayson, KY, 41143 Carter County $46,400 3 1.00 Extended  11/29/2018 View Street Map it Email Info 201-537032 307 Liberty St Carlisle, KY, 40311 Nicholas County $40,000 3 1.00 Exclusive  11/29/2018 View Street Map it Email Info 201-546596 38 Harrison Holw Belfry, KY, 41514 Pike County $7,000 0 0.00 Extended  11/29/2018 View Street Map it Email Info 201-547160 324 Malone Rd Bradfordsville, KY, 40009 Marion County $40,000 3 2.00 Exclusive  12/07/2018 View Street Map it Email Info 201-550376 3904 Taffy Rd Whitesville, KY, 42378 Ohio County $50,000 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-557096 237 Wright St Frankfort, KY, 40601 Franklin County $40,000 3 1.00 Extended  11/29/2018 View Street Map it Email Info 201-560972 5457 Ky Route 680 Grethel, KY, 41631 Floyd County $76,000 4 2.10 Extended  11/29/2018 View Street Map it Email Info 201-576631 67 Snake Lick Rd Berry, KY, 41003 Harrison County $45,000 3 2.00 Exclusive  11/29/2018 View Street Map it Email Info 201-580027 255 Kingsway Dr Frankfort, KY, 40601 Franklin County $65,000 3 2.00 Extended  11/29/2018 View Street Map it Email Info 1 | 2 | 3 |

Search Results for HUD Homes in KY 1 | 2 | 3 |  47 listings found List Gallery Save Search Email Search View Map Export to Display:  5 10 20 Property Case Address Price Status Bed Bath Listing Period Bid Open Date Details  201-580611 2410 Paddock Ln Louisville, KY, 40216 Jefferson County $88,000 4 1.00 Exclusive  11/30/2018 View Street Map it Email Info 201-580733 2294 Josephine Rd Stamping Ground, KY, 40379 Scott County $108,000 4 2.00 Extended  11/29/2018 View Street Map it Email Info 201-583071 104 Jonathan Ct Somerset, KY, 42503 Pulaski County $108,900 4 2.00 Extended  11/29/2018 View Street Map it Email Info 201-590501 13255 Dawson Springs Rd Crofton, KY, 42217 Christian County $45,000 3 1.00 Exclusive  12/07/2018 View Street Map it Email Info 201-601254 1044 Scenic Dr Radcliff, KY, 40160 Hardin County $132,300 3 2.00 Extended  11/29/2018 View Street Map it Email Info 201-604473 8180 Georgetown Rd Owenton, KY, 40359 Owen County $69,000 3 2.00 Exclusive  12/07/2018 View Street Map it Email Info 202-019773 516 Wood Street Maysville, KY, 41056 Mason County $25,000 3 1.00 Extended  11/29/2018 View Street Map it Email Info 1 | 2 | 3 |