BREAKING: HUD suspends FHA mortgage insurance premium cut

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That didn’t take long! BREAKING: HUD suspends FHA mortgage insurance premium cut

In first moments of Trump presidency, HUD makes it official: FHA mortgage insurance premium cut is suspended “indefinitely.”

The Department of Housing and Urban Development announced it suspended the reduction of Mortgage Insurance Premiums, effective immediately. HUD sent out an announcement just an hour after President Trump was sworn in on Friday, stating that the cuts have been suspended indefinitely. Click the headline for more.

Source: BREAKING: HUD suspends FHA mortgage insurance premium cut

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Kentucky FHA Loan Requirements for 2018

Benefits and Drawbacks for an FHA Borrower

Kentucky HUD $100 Down FHA Program for 2018

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Kentucky FHA Loan Requirements

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 family member or from retirement savings plan, or money saved-up. Any type of cash deposits are 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 a 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 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 trustee. You will need to qualify with the Chapter 13 payment along with 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.
  • Max FHA loan in Kentucky is between $275,000 to $299,000 depending on the county in Kentucky
    I can answer your questions and usually get you pre-approved the same day.

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  • 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 2018, you can buy a home with average to below average credit and a 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 note 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 EAH in your state on Google to see what is available.

    Experts say that down payment help is available for nearly 90% of homes in the US. There is a good chance that you can get help on your down payment through one of these organizations. References: https://www.fha.com/fha_article?id=441

  • Benefits and Drawbacks for an FHA Borrower
  • Call or Text me at 502-905-3708 with your mortgage questions.
    Email Kentuckyloan@gmail.com



    Image result for gift funds fha infographic

    Joel 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). 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.

Kentucky FHA Loan Limits for 2018

Kentucky FHA Loan Limits for 2018
FHA has announced new loan limits for 2018. For all FHA loans with Case Numbers assigned on or after January 1st, the following will be effective
 these values are updated to coincide with the new FNMA loan limit floor values.

FHA Limits for 2018

Lending Limits for FHA Loans in KENTUCKY Counties

FHA mortgage lending limits in KENTUCKY vary based on a variety of housing types and the cost of local housing. FHA loans are designed for borrowers who are unable to make large down payments.

120 match(es) found.
ADAIR County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ALLEN County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ANDERSON County
FRANKFORT, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BALLARD County
PADUCAH, KY-IL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BARREN County
GLASGOW, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BATH County
MOUNT STERLING, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BELL County
MIDDLESBOROUGH, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOONE County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOURBON County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOYD County
HUNTINGTON-ASHLAND, WV-KY-OH
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOYLE County
DANVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BRACKEN County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BREATHITT County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BRECKINRIDGE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BULLITT County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
BUTLER County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CALDWELL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CALLOWAY County
MURRAY, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CAMPBELL County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CARLISLE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CARROLL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CARTER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CASEY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CHRISTIAN County
CLARKSVILLE, TN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CLARK County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CLAY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CLINTON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CRITTENDEN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CUMBERLAND County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
DAVIESS County
OWENSBORO, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
EDMONSON County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ELLIOTT County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ESTILL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FAYETTE County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FLEMING County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FLOYD County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FRANKLIN County
FRANKFORT, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FULTON County
UNION CITY, TN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GALLATIN County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GARRARD County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GRANT County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GRAVES County
MAYFIELD, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GRAYSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GREEN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GREENUP County
HUNTINGTON-ASHLAND, WV-KY-OH
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HANCOCK County
OWENSBORO, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HARDIN County
ELIZABETHTOWN-FORT KNOX, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HARLAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HARRISON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HART County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HENDERSON County
EVANSVILLE, IN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HENRY County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
HICKMAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HOPKINS County
MADISONVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JACKSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JEFFERSON County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
JESSAMINE County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JOHNSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
KENTON County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
KNOTT County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
KNOX County
LONDON, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LARUE County
ELIZABETHTOWN-FORT KNOX, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LAUREL County
LONDON, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LAWRENCE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LEE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LESLIE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LETCHER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LEWIS County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LINCOLN County
DANVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LIVINGSTON County
PADUCAH, KY-IL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LOGAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LYON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MADISON County
RICHMOND-BEREA, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MAGOFFIN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MARION County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MARSHALL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MARTIN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MASON County
MAYSVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MCCRACKEN County
PADUCAH, KY-IL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MCCREARY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MCLEAN County
OWENSBORO, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MEADE County
ELIZABETHTOWN-FORT KNOX, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MENIFEE County
MOUNT STERLING, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MERCER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
METCALFE County
GLASGOW, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MONROE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MONTGOMERY County
MOUNT STERLING, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MORGAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MUHLENBERG County
CENTRAL CITY, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
NELSON County
BARDSTOWN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
NICHOLAS County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
OHIO County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
OLDHAM County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
OWEN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
OWSLEY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PENDLETON County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PERRY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PIKE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
POWELL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PULASKI County
SOMERSET, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ROBERTSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ROCKCASTLE County
RICHMOND-BEREA, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ROWAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
RUSSELL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SCOTT County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SHELBY County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
SIMPSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SPENCER County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
TAYLOR County
CAMPBELLSVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
TODD County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
TRIGG County
CLARKSVILLE, TN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
TRIMBLE County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
UNION County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WARREN County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WASHINGTON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WAYNE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WEBSTER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WHITLEY County
LONDON, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WOLFE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WOODFORD County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
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

http://www.nmlsconsumeraccess.org/
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#57916 http://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.

images (3)

 

 

Kentucky FHA Lending Limits

2017 Kentucky FHA limits include the following cities of  Fort Thomas, Erlanger, Florence, Ashland, Frankfort, Lexington, Richmond, Somerset Elizabethtown, Louisville, Owensboro, Hopkinsville, Fort Campbell North, Mayfield, Paducah, Madisonville, Henderson, Radcliff, Fort Knox, Georgetown, London, Bowling Green, E-town, Shepherdsville, Mount Washington, Lagrange, Shelbyville, Independence,  Hodgenville, Brandenburg, Morehead, Danville, Versailles, Lawrenceburg, Simpsonville, Winchester, Williamstown, Pikeville, Munfordville, Prospect, Crestwood, St. Matthews, Highlands,

 

22 New Fannie Mae Homes in Kentucky

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$25,000Just Listed

3801 Herd Elias Rd
Tyner, KY 40486

3 Beds |2 Baths | 1634 sq. ft.

View Property

 

$79,900Back on Market

36 Sweetbriar Ave
Florence, KY 41042

3 Beds |1 Baths | 1288 sq. ft.

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$40,000Back on Market

2204 Parkwood Rd
Louisville, KY 40214

2 Beds |1 Baths | 624 sq. ft.

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$55,000Price Reduced

504 5th Ave
Frankfort, KY 40601

3 Beds |1 Baths | 1056 sq. ft.

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$108,900Price Reduced

1927 Brooklyn Chapel Rd
Morgantown, KY 42261

3 Beds |2 Baths | 2097 sq. ft.

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$288,900Price Reduced

7154 Thornwood Ln
Florence, KY 41042

4 Beds |3 Baths | 2776 sq. ft.

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$64,900Price Reduced

517 Washington Ave
Paintsville, KY 41240

3 Beds |2 Baths | 2242 sq. ft.

View Property

 

$135,500Price Reduced

136 W Main St
Mount Sterling, KY 40353

5 Beds |2 Baths | 3641 sq. ft.

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$42,900Price Reduced

147 Williams Branch
Hazard, KY 41701

3 Beds |2 Baths

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$39,900Price Reduced

158 Baker Ave
Hazard, KY 41701

3 Beds |2 Baths | 2416 sq. ft.

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$19,000Price Reduced

1229 Hermes Ave
Covington, KY 41011

1 Beds |1 Baths

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$79,000Price Reduced

2116 Quillman Rd
Louisville, KY 40214

4 Beds |1 Baths | 1440 sq. ft.

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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
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Underwriting Rental Income for a Kentucky Mortgage Loan in 2014

Underwriting Rental Income.

 

Rental income can be used if all of the following conditions apply:

• The borrower has a two year history of managing rental properties as demonstrated by two years personal tax returns (1040’s) and schedule E.
• If the borrower wishes to qualify with rental income on the subject property in an investment transaction, they must provide evidence of rent loss insurance to cover six month’s rent in the event of a property vacancy.
• If the borrower owns a rental property that is not yet reflected on schedule E, they may use income from this property to qualify with a lease agreement. However, if the borrower does not have a two year demonstrated history of managing rental properties, this guideline is not valid. Also note, when a property is reflecting on the schedule E of the personal tax returns, lease agreements may not be used to determine qualifying income for any reason.

Once the gross rental income has been calculated from the schedule E of the tax returns OR using 75% of the monthly lease payment, you must deduct the monthly housing expense to determine net rental income. Net rental income is the final figure that is used to calculate the total debt ratio.

For example:

• Using a 24 month average of the calculated schedule E the underwriter has determined there is $300 monthly gross rental income.
• The underwriter then verifies the monthly PITI (principle, interest, taxes, and insurance) of $450 on the rental property. Note: If the rental property has a mortgage insurance or homeowners association dues expense, these amounts will be included in the PITI calculation.
• $300 gross rental income minus $450 monthly PITI nets a rental loss of $150. As a result, a $150 monthly liability is added to the total debt ratio.
This calculation is commonly referred to as “washing” the housing expenses on the property. Even though we still have a net loss that is included in the debt ratio, we were able to “wash” $300 of the $450 monthly PITI thereby improving our total debt ratios.

— 


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

Bank Statement Basics for A Kentucky Mortgage Loan Approval for USDA, KHC, FHA, VA, Fannie Mae and Rural Housing Mortgage Loans

 

Give us a try or let us compare your options on your next mortgage transaction. Call me locally at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications.

Email me at kentuckyloan@gmail.com with your questions

I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky.  For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance.

This website is not an government agency, and does
not officially represent the HUD, VA, USDA or FHA or any other government agency.

NMLS# 57916 http://www.nmlsconsumeraccess.org/

Joel Lobb Senior  Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
 Fax:     (502) 327-9119
Company ID #1364 | MB73346E
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