Kentucky FHA & Credit Scores

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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/

Featured

Kentucky FHA Loan Requirements For 2020

Kentucky Mortgage Requirements

Kentucky FHA Guidelines Program for 2020

 

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 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.
  • Max FHA loan in Kentucky is $331,760 in Kentucky for 2020
  • 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.
  • 2020 Kentucky FHA loan limits are as follows:
Kentucky FHA loan limits for 2020 is set at $331,760.00
Kentucky FHA loan limits 2020

All Kentucky Counties received a loan amount increase in 2020 for FHA loans made starting January 1, 2020

The new loan limits are effective with case numbers assigned on
or after January 1, 2020

https://entp.hud.gov/idapp/html/hicostlook.cfm

Why Lenders Use CAIVRS

It is true that your CAIVRS report can help lenders to predict the risk of doing business with you, just like a traditional consumer credit report. But the primary reason lenders check your CAIVRS report is because they are generally required to do so for any applications that involve a federal loan (FHA, VA, USDA, SBA, etc.). Lenders are required to conduct a CAIVRS search because of Title 31 of the United States Code (Section 3720B) bars “delinquent federal debtors from obtaining federal loans or loan insurance guarantees.”

Kentucky FHA Loan Requirements for 2020

 

  • 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 2019, 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.

     

  • Benefits and Drawbacks for an FHA Borrower


    Image result for gift funds fha infographic

    Kentucky FHA Loan Requirements for 2020
    What are the requirements for a FHA loan 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.

     

    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.

     

 

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Kentucky FHA Loans in the State of Kentucky for 2020.

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 $331,760 for 2020.  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 2020 Kentucky State Loan Limits for a Fannie Mae loan being $510,400
  • 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 theFHA 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 fundsfha loan kentuckyFHA Loans Kentucky Housing First time home buyerfha mortgagefha mortgage loangift funds for fha mortgagekentucky fha loans |

 

 

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What are the Kentucky FHA Credit Score Requirements for 2020 Mortgage Loan Approvals?

FHA, VA, USDA and Fannie Mae loan requirements Kentucky

 

Credit Scores Required for a Mortgage Loan Approval in Kentucky.
Credit Scores Required for a Mortgage Loan Approval in Kentucky.

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

 

 

Getting a FHA loan in Kentucky in 2020 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 loan in 2020 some 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 $331,760.00 for 2020

 

Kentucky FHA loan limits for 2020 is set at $331,760.00
Kentucky FHA loan limits 2020

If you are looking to take a FHA loan in 2020 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:

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.
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.
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, very few lenders will go below the 620 threshold.
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:
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.

 

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 Company ID #1364 | MB73346

 

 

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

Featured

Kentucky Conventional Loan versus Kentucky FHA Loan comparison chart

FHA Loans vs Fannie Mae Loans in Kentucky

fha vs conventional

Comparison chart of Kentucky FHA Loans vs Kentucky Conventional Loans for 2019

Kentucky Conventional Loan versus Kentucky FHA Loan comparison chart
KY Conventional Loan Kentucky FHA Loan
Limits Max $484,350 for all Kentucky Counties Max $314,827 for all Kentucky Counties
Required credit score 620 or higher required for Fannie Mae. You have three credit scores from Transunion, Experian and Equifax, and they take the middle score. Throw out high and low score. They take the Fico Score model 8 for Mortgage loans. Minimum score of  500 to qualify for 10% down payment. Credit scores above 580 can go with a  minimum credit score of 500. They take the middle credit score of the three credit bureaus  just like Fannie Mae.**However, most FHA lenders will not go below 620 so keep that in mind on your FHA lenders. Credit Overlays exist for lenders that choose not to participate on lower credit scores  to protect them from being cut off from FHA for delivering loans with bad loan performing quality.
Down payment Minimum down payment is 3%. 3.5% minimum down payment required, with credit scores over 580.
Mortgage Insurance No upfront mortgage insurance just monthly mortgage insurance. The monthly mortgage premiums are tied to your credit score and down payment or equity position on a refinance. They’re several different private mortgage insurance companies that compete for this business. Typically credit scores over 740 and above will get the best mi premiums as long as the debt to income ratios are under 45% to 50%-Only required for borrower making less than 20% down payment. Mortgage insurance is not for life of loan. Upfront mortgage insurance and monthly mortgage insurance is required on all loans regardless of credit score and debt to income ratio. Every borrower pays the same mortgage insurance . Mortgage insurance is figured on loan term and equity position or down payment requirements. FHA loans are for life of loan currently, but they’re some bills in congress to change this. It use to drop off at 78% ltv based on original sales price or after 5 years of mi payments. Currently 1.75% and .85% are the mi premiums for a FHA loan. Lesser premiums are available for more money down loan programs and lesser term like 15 years or less.
Bankruptcy 4-7 years removed from a Chapter 7. Chapter 13 possible after 2 years with a good pay history and 20% down payment. 2 years removed from Chapter 7. If Chapter 13 and currently in plan, then they will consider this with a 12 month history of good payments and permission from trustee. If Chapter 13 paid out, there is no waiting as long as good pay history.

 

 
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.

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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

 

 

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 FHA Appraisal Requirements For A Mortgage Loan Approval.

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

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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

 

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.






http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

 

 

 

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FHA STREAMLINES REFINANCE GUIDELINES IN KENTUCKY 2015

FHA STREAMLINES REFINANCE GUIDELINES IN KENTUCKY 2015.

7 Major FHA Rule Changes – Effective June 15, 2015

As you probably know, HUD has scrapped their old underwriting handbook and has re-written the whole darn thing which they will be implementing on all case numbers order on or after June 15. What they DIDN’T do was indicate which rules were CHANGED significantly from the previous handbook. We compared both the old and the new handbook and found 46 rule changes. Here are seven of them.

Earnest Money

Old Rule – Document source of earnest money if the amount exceeds 2% of the sales price

New Rule – Document source of earnest money if the amount exceeds 1% of the salesprice

CAVIRS

Old Rule – Federal debt makes borrower ineligible

New Rule – VERIFIED federal debt makes the borrower ineligible

Part-Time Income

Old Rule – Underwriter discretion allowed when received less than 2 years

New Rule – Two years uninterrupted part-time income is required. Average income over prior 2 years or use 12-month average of hours at the current pay rate if the lender documents an increase in pay rate.

Rental Income on Retained Primary Residence

Old Rule – Rental income may be counted when relocating outside of reasonable commute distance for job and borrower has 25% equity.

New Rule – Rental income may be counted when relocating and the new residence is at least 100 miles from previous residence. If no history of rental income since the last tax filing, borrower must have 25% equity.

Non-taxable income

Old Rule – Gross up using tax rate evidenced on last tax return. If borrower did not filea return, use tax rate of 25%.

New Rule – Gross up using the greater of 15% or actual tax rate. If borrower did not file a tax return, use tax rate of 15%

Installment Debts Less Than 10 Months

Old Rule – May be excluded from ratios. If manual underwrite—may be excluded if debt will not affect ability to pay the mortgage.

New Rule – May be excluded ONLY if—they have cumulative payment of less than or equal to 5% of the borrower’s gross monthly income AND the borrower may not pay the debts down to achieve this percentage.

Multiple FHA Loans

Old Rule – If relocating for employment, borrower may obtain a second FHA loan for a new principal residence if current residence is more than a reasonable commute to new residence.

New Rule – If relocating for employment, the commuting distance between the old residence and new residence must be more than 100 miles.

Source: Mortgage Currentcy


Joel Lobb (NMLS#57916)
Senior  Loan Officer

 

via FHA STREAMLINES 

EFINANCE GUIDELINES IN KENTUCKY 2015.

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Annual MIP Rates for Kentucky FHA Mortgage Loans have been Reduced for 2015

FHA
Annual MIP Rates for Kentucky FHA Mortgage Loans have been Reduced
Per the HUD Mortgagee Letter published January 9th, 2015, there will be a “reduction of Federal Housing Administration (FHA) annual Mortgage Insurance Premium (MIP) rates and Temporary Case Cancellation Authority”. This will be “effective for case numbers assigned on or after January 26, 2015“.

NOTE:  15 YR PREMIUMS ARE REMAINING THE SAME.


Up Front MIP (UFMIP)

UFMIP for all FHA transactions remains unchanged at this time.

MI duration

The duration of MI for FHA loans is also unchanged, remaining effective for life of loan for most transactions.  Refer to ML 2013-04 for details.

images (6)
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

 refinance_buttonprequalify_buttonheader-contac-us

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What are the 2014 Kentucky FHA Guidelines for credit scores, down payments, cash out, and mortgage insurance requirements for a FHA Mortgage loan?

Kentucky FHA Program guidelines have been updated as follows:

For a Kentucky FHA Purchase Loan, we can go down to a 600 credit score with the minimum down payment of 3.5%.  No bankruptcies or foreclosures in the last 2 years.

If you are getting cash out, then the max loan to value or equity position is limited to 85% of the homes value. For example, if you had a home that was valued at $100,000, then the max loan for a FHA Cash Out in Kentucky would be $85,000.00. You still have to may mortgage insurance for life of loan so think carefully about using FHA for a cashout refinance.

The maximum debt to income ratios will be set by the AUS when we run it, but for a refer, it will be limited to 31% and 43% respectively. For example, if you make $3000 a month gross income, the max house payment would be $930.00 piti, and the maximum monthly payments including the new house payment would be $1290.00. So in the above example, the most you could have left in monthly bills listed on the credit report would be $360.00–If you had child support this would count in the dti calculation on the backend ratio of 43%

The seller can pay up to 6% of the buyer’s closing costs and prepaids (property taxes, home insurance for 1st years escrows) of the sales price. So, if you purchased a home for $100,000.00, the seller could give you a concession at closing to pay your closing costs and prepaids. A lot of Kentucky First Time homebuyers use this to limit their cash to close.

The minimum down payment of 3.5% for Kentucky FHA Loans can come from a family member in the form of a gift, or can be borrowed from a 401k, retirement account, or secured asset like a car.

• Seller must own the property a minimum of 90 days prior to the contract date.

FHA loans do not require a termite or home inspection, but they do require a HUD appraisal by a FHA approved Appraiser.

The following changes are effective for all Kentucky  FHA case numbers assigned on or after June 3, 2013: FHA is changing the duration for the collection of MIP
o For all mortgages with an original principal LTV of 90% or less, regardless of loan term, the annual MIP will be assessed for 11 years.
o For all mortgages with an original principal LTV greater than 90%, regardless of loan term, the annual MIP will be assessed for the entire life of the loan.

Loans of 15 year terms or less with LTV 78% or less will pay an MIP amount of 45 bps.

FHA Streamlines Prior to June 2009
FHA Streamlines with case numbers dated June 11, 2012 or later will have new MIP rules applied. If the loan being refinanced was endorsed on or before May 31, 2009, the new Streamline will receive a flat annual MIP of 55 basis points, regardless of loan amount, and the UFMIP ratio will decrease to 0.01% of the base loan amount.

 

 

2014 Kentucky FHA Loan Guidelines for Credit, Down payment, income,

Senior Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com

Company ID #1364 | MB73346
http://mylouisvillekentuckymortgage.com/

 

FHA loans are secured through the FHA, or Federal Housing Administration
FHA loans are secured through the FHA, or Federal Housing Administration
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FHA eases rules for some credit-impaired applicants

FHA eases rules for some credit-impaired applicants.

Kentucky FHA Mortgage Guidelines for Collections in 2014
Kentucky FHA Mortgage Guidelines for Collections in 2014

Handling of Collections and Disputed Accounts

This guidance is effective for all case numbers assigned on or after

October 15, 2013.

Documentation Requirements: Collection Accounts and Judgments

Applicable to Manually Underwritten Loans:

The lender must document reasons for approving a mortgage when the borrower has collection accounts or judgments.

Regardless of the amount of outstanding collection accounts or judgments, the lender must determine if the collection account or judgment was a result of:

 the borrower’s disregard for financial obligations;

 the borrower’s inability to manage debt; or

 extenuating circumstances.

The borrower must provide a letter of explanation with supporting documentation for each outstanding collection account and judgment. The explanation and supporting documentation must be consistent with other credit information in the file.

Applicable to Loans Run Through TOTAL Mortgage Scorecard:

TOTAL Mortgage Scorecard Accept/Approve – There are no documentation or letter of explanation requirements for loans with collection accounts or judgments run through TOTAL Mortgage Scorecard receiving an “Accept/Approve” despite the presence of collection accounts or judgments. These accounts have been already taken into consideration in the borrower’s credit score. If TOTAL Mortgage Scorecard generates a “Refer,” the lender must manually underwrite the loan in accordance with the guidance above applicable to manually underwritten loans with collection accounts and judgments.

Collections – FHA does not require collection accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage. To mitigate this risk, FHA is requiring a capacity analysis of collection accounts with an aggregate balance equal to or greater than $2,000, as described below.

If the total outstanding balance of all collection accounts for all borrowers is equal to or greater than $2,000, the lender must perform a capacity analysis as detailed below. Unless excluded under state law, collection accounts of a non-purchasing spouse in a community property state are included in the cumulative balance.

All medical collections and charge off accounts are excluded from this guidance and do not require resolution.

Capacity analysis includes any of the following actions:

 At the time of or prior to closing, payment in full of the collection account (verification of acceptable source of funds required).

 The borrower makes payment arrangements with the creditor. If the borrower has entered into a payment arrangement with the creditor, a credit report or letter from the creditor verifying the monthly payment is required. The monthly payment must be included in the borrower’s debt-to-income ratio.

 If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.

TOTAL Mortgage Scorecard Accept/Approve/Refer – Regardless of the Accept/Approve/Refer recommendation by TOTAL Mortgage Scorecard, the lender must include the payment amount in the calculation of the borrower’s debt-to-income ratio.

Judgments – FHA requires judgments to be paid off before the mortgage loan is eligible for FHA insurance. An exception to the payoff of a court ordered judgment may be made if the borrower has an agreement with the creditor to make regular and timely payments. The borrower must provide a copy of the agreement and evidence that payments were made on time in accordance with the agreement, and a minimum of three months of scheduled payments have been made prior to credit approval.

Borrowers are not allowed to prepay scheduled payments in order to meet the required minimum of three months of payments. Furthermore, lenders are instructed to include the payment amount in the agreement in the calculation of the borrower’s debt-to-income ratio.

FHA requires judgments of a non-purchasing spouse in a community property state to be paid in full, or meet the exception guidance for judgments above, unless excluded by state law.

Disputed Derogatory Accounts Indicated on the Credit Report

If the credit report utilized by TOTAL Mortgage Scorecard indicates that the borrower is disputing derogatory credit accounts, the borrower must provide a letter of explanation and documentation supporting the basis of the dispute. The lender must analyze the documentation provided for consistency with other credit information in the file to determine if the derogatory credit account should be considered in the underwriting analysis.

Guidance for TOTAL Mortgage Scorecard Accept/Approve loans with disputed accounts.

Disputed Derogatory Credit Accounts greater than or equal to $1,000

If the cumulative outstanding balance of disputed derogatory credit accounts of all borrowers is equal to or greater than $1,000, the mortgage application must be downgraded to a “Refer” and a Direct Endorsement underwriter is required to manually underwrite the loan as described above.

Disputed Derogatory Credit Accounts less than $1,000

If the cumulative outstanding balance of disputed derogatory credit accounts of all borrowers is less than $1,000, a downgrade is not required.

Excluded Accounts

 Disputed medical accounts are excluded from the $1,000 limit and do not require documentation.

 Disputed derogatory credit accounts resulting from identity theft, credit card theft, or unauthorized use are also excluded from the $1,000 limit. However, the lender must provide in the case binder a credit report, letter from the creditor, or other appropriate documentation to support the dispute, such as a police report disputing the fraudulent charges

Disputed derogatory credit accounts are defined as follows:

 disputed charge-off accounts,

 disputed collection accounts, and

 disputed accounts with late payments in the last 24 months.

Disputed derogatory credit accounts of a non-purchasing spouse in a community property state are not included in the cumulative balance for determining if the mortgage application is downgraded to a “Refer”.

Non-derogatory disputed accounts are excluded from the $1,000 cumulative total.

Non-Derogatory Disputed Accounts and Disputed Accounts Not Indicated on the Credit Report.

Non-derogatory disputed accounts include the following types of accounts:

 disputed accounts with zero balance,

 disputed accounts with late payments aged 24 months or greater, and

 disputed accounts that are current and paid as agreed.

If a borrower is disputing non-derogatory accounts, or is disputing accounts which are not indicated on the credit report as being disputed, the lender is not required to downgrade the application to a “Refer.” However, the lender must analyze the effect of the disputed accounts on the borrower’s ability to repay the loan. If the dispute results in the borrower’s monthly debt payments utilized in computing the debt-to-income ratio being less than the amount indicated on the credit report, the borrower must provide documentation of the lower payments.

 


 
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

 

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Back to Work Program for FHA Borrowers in Kentucky

 fha back to work program in kentucky
fha back to work program in kentucky
Kentucky FHA Mortgage Guidelines for Previous short sale or foreclosure

• FHA permits loans to Kentucky Home-buyers  whose credit history indicates a short sale within the most recent three years prior to loan application, provided all of the following conditions are met:

– The borrower must have made all mortgage payments within the month due for  the 12 months prior to the short sale

• Borrowers who executed a short sale after completing a permanent  modification are eligible for Kentucky FHA financing, provided the borrower made at  least 12 payments on the permanent modification and all payments on the  permanent modification were made within the month due for the 12 months  prior to the short sale

• Borrowers who completed a short sale on a loan that was under a temporary  modification plan at the time of the short sale are ineligible for Kentucky FHA financing  for three years after the short sale
– The short sale must serve as payment in full on the existing liens, and the existing mortgage servicer may not require repayment of the difference between the mortgage balance and the short payoff – Borrowers in default on their mortgages at the time of a short sale are ineligible  for Kentucky  FHA financing for three years after the date of the short sale unless the  borrower experienced significant extenuating circumstances
– For additional information, refer to FHA Mortgagee Letter 2009-52 – Short Sales 

Kentucky FHA Lender for Back to Work Program
Joel Lobb Senior  Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 phone: (502) 905-3708
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346
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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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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

Do you have the ability to repay your Louisville Ky mortgage loans? Your banks and lenders are sure to ascertain that. You have to give them enough reasons to agree that you are indeed capable of repaying mortgage loans in Louisville. Start the “confidence building measure” by reducing your debts. Pay all the credit card balances in order to get qualified for Louisville Ky  mortgage loans. If you have too many debts, try to delay your loan application. A positive certification by your credit bureau would ensure that you obtain mortgage loans in the  Louisville Kentucky area.

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…

Louisville Home Loans

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.

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Mortgage brokers in Louisville deal exclusively with mortgage loans. kentucky Louisville mortgage brokers not only have professional expertise but also access to various lenders and Kentucky Louisville mortgage bankers. Access to lenders and top Kentucky Louisville mortgage bankers give them access to variety of loan products, too. Experienced brokers in Louisville provide the most cost effective financing options. The best Louisville mortgage broker pays attention to both your financial and personal goals. See that your mortgage brokers in Louisville also provide individualized attention to your needs.

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.

 

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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 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.
  • 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 31st, 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 11th, 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 31st, 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%

 



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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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Back to Work Program in Kentucky for home buyers with previous short sale or foreclosure less than 2 years

Do you qualify for the Back to Work Program in Kentucky for home buyers with previous short sale or foreclosure less than 2 years?Back to Work Program, bad credit, Bankruptcy, FHA Back to work, foreclosure, job loss, Short Sales

 

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Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
 800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com 

Kentucky First Time Home Buyer Loan Programs for FHA, VA, KHC and USDA Mortgage Loans in Kentucky

FHA changes may aid those who lost homes.

Kentucky FHA changes may aid those who lost homes

The Federal Housing Authority has shortened the mandatory waiting periods for an Kentucky  FHA-insured mortgage loan for those who have undergone foreclosure, deed-in-lieu, taken a short sale or declared bankruptcy during the economic recession.

 

Through its new program, Back to Work—Extenuating Circumstances, the waiting period for most borrowers is now just 12 months instead of the typical three, seven or 10 years. Both first-time and repeat home-buyers can apply. “Most people do not know this program has been released, and are only renting because

If you feel like you qualify for this and live in Kentucky, please call or email me with your questions and I would be glad to see if you qualify for the new Kentucky FHA Program for free.

 

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
 800 Stone Creek Pkwy, Ste…

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KHC Loan Programs

KHC Loan Programs.

via KHC Loan Programs.

 

KHC’s First Mortgage Loan Products
Federal Housing Administration (FHA)
•Minimum 640 credit score required.
•Financing to 96.50% of lesser of sales price or appraised value.
•All KHC DAPs and other KHC-approved secondary financing may be used.
•Maximum 6% seller-paid items.
•Maximum ratios of 40/45 with AUS approval.
•FHA’s Appraiser Independence rules apply. (see page 4)
•All borrowers must be scored by TOTAL and receive approve/eligible or accept/accept.
•Lender must follow the FHA maximum mortgage limits for particular area – see
Upfront and Annual Mortgage Insurance Premiums
30-Year Loan Term
LTV less than or equal to 95% 1.75% annual 1.20 monthly
LTV greater than 95% 1.75% annual 1.25 monthly
Conventional
• Minimum 660 credit score required
• Maximum loan-to-value (LTV) ratio is 80%.
• Maximum ratios 40/45 with AUS approval.
• No down payment assistance products may be used. Borrower must meet down payment requirements with their own
funds or a gift.
• Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as
subordinate financing in DU/LP.
• Pre-purchase education required as per AUS findings.
• Not available for manufactured housing.
• Appraiser Independence required (see page 4).
• KHC does not presently have a product for 81% LTV or greater.
Rural Housing Services (RHS)
 Minimum 640 credit score required.
• Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.3% annual fee.
• All KHC DAP programs and other KHC-approved secondary financing may be used.
• No maximum on seller-paid items.
• Ratio requirements and guarantee fee per agency guidelines.
• KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with
approval, expanded ratios up to 40/45.
Veteran’s Administration (VA)
•Minimum 640 credit score required.
•Financing to 100% of the lesser of the appraised value or sale price.
•All KHC DAP programs and other KHC-approved secondary financing may be used.
•Maximum 4% seller-paid items.
•Ratio requirements and funding fee per agency guidelines
•Maximum ratios of 40/45% with AUS Approval

 

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FHA loan requirements Louisville Kentucky Mortgage

FHA loan requirements – 2010 – 7 tips – Louisville Kentucky Mortgage.

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A Complete Guide to Closing Costs

A Complete Guide to Closing Costs.

via A Complete Guide to Closing Costs.

Five different types of Mortgage Loans avaialbe for first-time homebuyers in Kentucky

1) FHA–  3.5% of the purchase price is required for a down payment. The 3.5% down has to come from buyer funds or a buyer’s family member as a gift.

2)  VA- No money down required.  You have to be a veteran, spouse of deceased veteran, or active duty military to qualify for a VA loan.

3) USDA (aka Rural Housing)- No money down required.  You have to purchase a home outside of Jefferson County and buy in an approved USDA county.  Typically, most of the counties that surround Jefferson County are approved for USDA.

4) Conventional- As little as 5% down payment is required.  20% down payment might be required if the borrower/buyer has a lower credit score.  When putting personal money down along with gift money on a conventional loan, the buyer must have 5% personal funds verified before any gift funds can be received.  Gift funds can be used on top of the 5% personal funds to increase down payment or contribute to closing costs.  The only exception to this rule with a conventional loan would be if the buyer is getting a 20% gift. If the buyer receives a 20% gift they would not be required to provide 5% of their own funds.

5) KHC or Kentucky Housing-

Down Payment and Closing Costs Assistance

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Kentucky Housing recognizes that down payments, closing costs and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP

  • Purchase price up to $243,000.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.  A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.
  • Available to all KHC first-mortgage loan recipients.

Affordable-DAP

  • Purchase price up to $243,000.
  • Assistance up to $4,500
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP Household Income Limits.

More about down payment and closing costs

  • No liquid asset review and no limit on borrower reserves.
  • Specific credit underwriting standards may apply to down payment programs.

Closing Costs on a FHA, VA, Conventional Mortgage Loan in Kentucky

 

 

 

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Kentucky FHA HUD Back to Work Program for FHA Borrowers in Kentucky

Kentucky FHA HUD Back to Work Program for FHA Borrowers in Kentucky 

 6b444-action

 

 
What is Back to Work?
FHA is continuing its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances.
Many borrowers experienced periods of recession related financial difficulty and/or credit impairment resulting from unemployment or a severe reduction in income. FHA recognizes the hardships faced by these borrowers, and that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.
 
For Purchase transactions with case numbers assigned on or after August 15, 2013 
 The Good Neighbor Next Door Sales Program

 

 

 

 

Are borrowers with a foreclosure, short sale, or bankruptcy eligible for Back to Work?

Important Back to Work Definitions

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

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

 

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New FHA Program Seeks to Return Foreclosed Borrowers to Homeownership

New FHA Program Seeks to Return Foreclosed Borrowers to Homeownership.

That’s good news for borrowers who lost their home due to specific financial hardships but can now demonstrate they have regained previously lost financial ground. The list of eligible financial hardships reads like a list of housing crisis woes:

• Chapter 7 or Chapter 13 bankruptcy

Deed-in-lieu

Forbearance

• Foreclosure

Loan modification

• Loss of income, employment or both that totaled at least 20 percent of previous earnings for at least six months – including copies of applicable termination notices or changes in employment status

Pre-foreclosure sales

Short sales

Additionally, consumers must also meet other verifiable measures to participate in the program:

• Proof of borrower’s current income – usually W-2 forms or federal tax returns that show the desired mortgage would be affordable and sustainable;

Credit history before and after the eligible hardship event that is free from late payments or other major credit issues, including rental housing payments and accounts delinquent by 30 days or more;

Credit score of at least 500;

• Housing counseling by a HUD-approved counselor at least 30 days but no more than six months before submitting an FHA application.

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Legal Disclaimer

This website 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.

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FHA Home Mortgage Purchase or Refinance Loan

Why You Might Consider Getting an FHA Loan

Most borrowers have heard of FHA home loans. They are very common. You hear about them mostly as loans for first time borrowers, which is common. However, most people don’t realize that FHA loans can also be does for refinancing. They are not only for purchasing a house.HUD owns and operates FHA, which is a program designed to help borrowers who might have difficulty buying a house.

If the borrower falls within FHA’s requirements FHA insures the loan for the lender, which makes the loan very low risk for the lender, which is very good for the borrower. It could mean a lower interest rate, better terms and just an overall better loan.FHA’s requirements are; a down payment of 3-5%, the home must be under the FHA’s set loan limit for the county that the borrower lives in and a few other small requirements.The main advantage to an FHA loan, is if you can fall within their requirements, your credit history or income level, will not hold you back from getting a home loan.

If you are getting turned down from other lenders because of a high debt to income ratio or because your credit is bad. You may want to consider applying for an FHA loan, where those requirements are either non-existent or much more flexible.If the idea of down payment is holding you back, consider also, that FHA loans allow the use of a non-profit organization as a source for the down payment, which opens up the option of using down payment assistance programs like Neighborhood Gold.To view our list of recommended mortgage lenders online, who offer FHA

 

How to qualify for an FHA loan

To be eligible for an FHA loan, borrowers must meet the following lending guidelines:

  • FICO score of 500 to 579 with 10 percent down or a FICO score of 580 or higher with 3.5 percent down.
  • Verifiable employment history for the last two years.
  • Income is verifiable through pay stubs, federal tax returns and bank statements.
  • Loan is used for a primary residence.
  • Property is appraised by an FHA-approved appraiser and meets HUD property guidelines.
  • Your front-end debt ratio (monthly mortgage payments) should not exceed 31 percent of your gross monthly income. Lenders may allow a ratio up to 40 percent in some cases.
  • Your back-end debt ratio (mortgage, plus all monthly debt payments) should not exceed 43 percent of your gross monthly income. Lenders may allow a ratio up to 50 percent in some cases.
  • If you experienced a bankruptcy, you must wait 12 months to two years to apply, and three years for a foreclosure. Lenders may make exceptions on waiting periods for borrowers with extenuating circumstances.

FHA vs. conventional loans

Unlike FHA loans, conventional loans are not insured by the government. Qualifying for a conventional mortgage requires a higher credit score, solid income and a down payment of at least 3 percent for certain loan programs. Here’s a side-by-side comparison of the two types of loans.

FHA loans vs. conventional mortgages
CONVENTIONAL LOAN FHA LOAN
Credit score minimum 620 500
Down payment Between 3% to 20% 3.5% for credit scores of 580+; 10% for credit scores of 500-579
Loan terms 10, 15, 20, 30 years 15 or 30 years
Mortgage insurance premiums PMI: 0.5% to 1% of the loan amount per year Upfront premium: 1.75% of the loan amount; annual premium: 0.45% to 1.05%
Interest type Variable rate, fixed rate Fixed rate

 

 

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FHA cuts mortgage wait times after hard times

FHA cuts mortgage wait times after hard times.

FHA cuts mortgage wait times after hard times



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FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire

FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire.

FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire

According to a letter sent to mortgage lenders, the FHA said it would offer mortgage insurance to borrowers who, during the recession, filed for bankruptcy or lost their homes through a foreclosure or short-sale proceeding.

The insurance is now available to those who can prove they are no longer financially compromised — and met all other FHA requirements.

FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage,” the letter says.

Besides the burden of proof on the borrower to demonstrate a recovery from the “economic event,” the potential homeowner must also complete housing counseling. This event would need to result in a minimum loss of 20% of the household income.

The FHA is requiring lenders to verify at least a year has passed since the foreclosure and the economic event is responsible for the loss of the home or bankruptcy.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire

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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

Steps for refinancing FHA Mortgage Loans

26Step 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.

Steps for refinancing FHA Mortgage Loans

Steps for refinancing FHA Mortgage Loans

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Louisville Kentucky FHA Streamline Mortgage Refinance Progra,

How to Get Qualify for FHA Streamline Mortgage Refinance Program

 

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.

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Kentucky Mortgage Underwriting Guidelines updated for 2013

Kentucky Mortgage Underwriting Guidelines updated for 2013.

via Kentucky Mortgage Underwriting Guidelines updated for 2013.

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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

Kentucky FHA Streamline Refinance Calculator

Refinance.

Kentucky FHA Streamline Refinance

Kentucky FHA Streamline Refinance

Kentucky FHA Streamline Refinance

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Kentucky FHA Mortgage Guidelines for 2013

Kentucky FHA Mortgage Guidelines for 2013.

via Kentucky FHA Mortgage Guidelines for 2013.

FHA will increase its annual mortgage insurance premium for Kentucky FHA Mortgages beginning in early 2013. For example, for most new Kentucky FHA mortgages by 10 basis points, or 0.10%. Premiums on jumbo mortgages — $625,000 or larger — will also increase by 5 basis points, or 0.5%, to maximum authorized annual mortgage insurance premium. These increases exclude certain Kentucky FHA streamline refinance transactions.

Now the big change. It use to be you only paid the annual mip for 60 months or 78% ltv, but now  FHA will also require most Kentucky FHA  borrowers to continue paying annual premiums for the life of their mortgage loan.

In 2001, the FHA cancelled required MIP on loans when the outstanding principal balance reached 78% of the original principal balance. However, FHA will remain responsible for insuring 100% of the outstanding loan balance throughout the entire life of the loan, a term which often extends beyond the cessation of these MIP payments.

For credit scores below 620 now, FHA is  requiring manual underwriting on loans with decision credit scores below 620 and DTI ratios over 43%, raising down payments on loans above $625,000, access to FHA after foreclosure and continuing efforts to improve risk management. There is still a 3 year waiting period for foreclosures and 2 years for a bankruptcy with no lates after bankruptcies. IF you have lates after bankrupcty , it will be hard to get a mortgage loan again.

The FHA will also step up its efforts for approved lenders with regard to aggressive marketing to borrowers with previous foreclosures, while also reminding lenders of their duty to fully underwrite loan applications. All new loans must meet FHA guidelines.

FHA will announce a proposal to increase down payment requirements for mortgages that have original principal balances above $625,000. The minimum down payment requirement for these mortgages will increase from 3.5% to 5%.

Additionally, the FHA will require lenders to manually underwrite loans of which borrowers have a credit score below 620 as well as a total debt-to-income ratio greater than 43%. Thus, lenders will be required to document compensating factors supporting underwriting decisions to approve loans where parameters are exceeded.

fha_va_home_loan_mortgages.gif

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

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Kentucky Fannie Mae HomePath Mortgage Loan

We are an approved Kentucky Fannie Mae   HomePath lender.
We are an approved Kentucky Fannie Mae HomePath lender.
Kentucky Fannie Mae HomePath Mortgage Loan®
We are pleased to  announce the introduction of the Kentucky Fannie Mae HomePath® product 

The HomePath® mortgage provides special financing for loan‐to‐value (LTV) ratios up to 97% when the borrower is
purchasing an eligible Fannie Mae‐owned property. Other key features include financing without mortgage insurance
with LTVs greater than 80% and no appraisal report or cost.Product Overview & Guidelines
 Loan Terms: Fixed Rate Terms only‐ 10, 15, 20 and 30 year terms
 Occupancy: Owner Occupied 1‐4 unit principal residence
 Maximum Loan Amount & LTV Matrix:
Minimum Credit Score Maximum Loan Amount Max LTV Max CLTV Max HCLTV
1
>= 660 $417,000 97% 97% 105%
659‐640 $417,000 80% 97% 105%
1‐ HCLTV: acceptable secondary financing is a Community Second per Fannie Mae guidelines
 Down Payment Requirements:  
o 1 unit principal residence: Minimum 3% (may come from flexible sources per Fannie Mae’s Flexible
Mortgage guidelines)
o 2‐4 unit principal residence: Minimum 5% must come from borrower’s own funds
 Eligible Property Types:
o Single Family Primary Residence
o Site Condo’s
o PUD’s
o All homes eligible for HomePath® financing must be a listed at www.homepath.com, and include the
required HomePath® Mortgage logo

 HomePath® Mortgage ‐ Renovation Mortgage dual logo must be displayed for the property to
be eligible through RMC
 FHA to increase the FHA monthly mortgage insurance #Kentucky#" href="http://louisvillemortgageguide.com/2011/04/19/fha-to-increase-the-fha-monthly-mortgage-insurance-kentucky/">Mortgage Insurance: Not required regardless of the LTV
 Automated Underwriting System: Desktop Underwriter®(DU) must maintain Approve/ Eligible findings and
must be fully documented to the DU findings
o The following DU messages may be disregarded:
 Mortgage insurance is required
 The maximum allowable seller contributions have been exceededPage 2
 Level of fieldwork recommendation
 Property value estimate appears to have an excessive rate of appreciation based on analysis of
recent sale
o My Community Mortgage program is not an acceptable option for DU HomePath® loans
o Loans with a LTV/CLTV greater than 95% must meet the Fannie Mae’s Flexible Mortgage requirements
 Credit Score Requirements:
LTV Credit Score
> 80% 660
80% or less 640
 Reserves: Per DU Findings
 Qualifying Ratios: Debt‐to‐Income: 45%
 Documentation:  
o Standard Full/ Alternative Documentation required
o 4506‐T: properly completed and signed 4506‐T required for all loans‐ Tax Transcript results required
o Reduced documentation is not allowed, regardless of any lesser requirement given by the DU findings
o File documentation must include a printed copy of the home listing from Fannie Mae’s website
www.homepath.com denoting that the property is eligible for HomePath® financing
 HomePath® Mortgage ‐ Renovation Mortgage dual logo is eligible
 HomePath® Mortgage only is not eligible
 HomePath® Renovation Mortgage only is not eligible
 Appraisal Requirements: Not Required
o The LTV ratio will be based upon the sales price
o It is highly recommended that the borrower(s) obtain a home inspection of the property
 Financed Properties: Borrower may finance a maximum of ten (10) properties per Fannie Mae guidelines,
including borrower’s primary residence‐ Refer to the DU findings for more specific requirements
 Escrow Waiver: Permitted for LTV ratios of 80% and less (pricing adjustments will apply)
 Interested Party Contributions: Primary residences‐ 6%
 Pricing: See HomePath® page of daily rate sheets or live pricing at http://mylouisvillekentuckymortgage.com for all applicable
pricing adjustments

homepath louisville ky
homepath louisville ky


Frequently Asked Questions

Where can I get help on the Kentucky HomePath Online Offers Program?

Please click here to access our help materials including webinars, job aides, and FAQs. If you still have questions, please email our support mailbox atHomepath_Online_Offers@fanniemae.com.

I am a real estate broker. Can I sell Fannie Mae REO?

For more information on becoming a Fannie Mae listing agent, click here.

How can I learn more about  Kentucky Fannie Mae homes?

To learn more about Fannie Mae homes, click here

Where can I find home buying tips?

To obtain general information on purchasing a home click here.

Where can I find information on foreclosure prevention?

To obtain information on preventing foreclosures click here

What additional home buying resources are available?

For additional resources about the home buying process click here.

Why does Fannie Mae have properties for sale?

Fannie Mae works with all of its partners to help homeowners prevent and avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae is the investor, our goal is to sell properties in a timely manner in order to minimize the impact on the community.

What kinds of properties are available in the Fannie Mae HomePath database?

Fannie Mae’s HomePath database includes only properties that are owned by Fannie Mae. There is a wide selection of homes, including single-family homes, condominiums, and town houses—located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.

How is buying a home owned or managed by Fannie Mae different from other home purchases?

Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.
When buying a Fannie Mae-owned home, you should know the condition of the property, as explained in more detail below, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.

Has Fannie Mae fixed everything in the house?

Fannie Mae may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed. Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement.
Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn’t mean everything in the house is new, or even works.
Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense.
You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.

What can you tell me about this house?

If Fannie Mae knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents. However, we may not have been informed by the previous owner of all hazards. We encourage you to have the property inspected by a professional before you buy.

What type of sales contract does Fannie Mae use?

Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for our properties. If there is anything in the document you don’t understand or aren’t comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you.

Do I have to use Fannie Mae’s selected title, settlement, or escrow companies?

No. You may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract.

Will Fannie Mae accept an offer contingent on the sale of my house?

No, Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.

Why does Fannie Mae request a lender’s prequalification statement before negotiating a home purchase offer?

Fannie Mae does not require a prequalification statement or letter before negotiating an offer. However, by obtaining this statement or letter, you better position yourself to get financing and complete the sales transaction in a timely manner. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range.
A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.
You may obtain a loan prequalification or a loan pre-approval at the lender of your choice.  To take advantage of our special financing, we encourage you to work with a HomePath-approved lender.  To find a HomePath-approved lender in your area, please click here.

Does Fannie Mae provide special financing?

Special financing is available on many properties through HomePath® Mortgage and HomePath® Renovation Mortgage. Click here for more information.

Can I buy a house directly from Fannie Mae without going through a real estate sales professional?

No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.

What happens if Fannie Mae gets more than one offer?

All interested parties may be asked to submit their best offer in writing though the listing agent no later than a specified date and time. Fannie Mae may accept or provide a counteroffer that we determine to be in our best interest. Fannie Mae is not obligated to accept any offer submitted.
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

Featured

Louisville Kentucky FHA Loans

Louisville Kentucky FHA Mortgage Loan Calculator

Click image for Mortgage Calculator
Click image for Mortgage Calculator
http://mortgagecalculator.net/embeddable/?id=1Powered By <a href=”http://www.mortgagecalculator.net&#8221; target=”_blank”>Free Mortgage Calculator</a>

We provide a Louisville KY Mortgage FHA calculator to help you understand more about your FHA home loan. Keep in mind the following information as you work with the calculator.

With our FHA calculator you can put in your values and estimate the amount of your loan and get an Estimate on the amount of your monthly payments.

Louisville Kentucky FHA Specialists

This isn’t the only tool we have to help you with an FHA Loan. Our experienced Specialists will work with you one-on-one throughout the entire loan process. Connect with a Specialist to get started on your FHA loan or try our standard mortgage calculator. A FHA loan can allow you to include the costs of your home improvements in your loan. With HUD’ls 203 (k) program you can purchase or refinance a home that needs improvements and include all repair and improvement costs in the loan. Learn more about FHA refinancing or compare FHA vs conventional loans. The Federal Housing Administration is a branch of the Department of Housing and Urban Development and provides lenders with insurance on your loan. The FHA is here to help you become a homeowner. Both theFHA and HUD offer low-interest loans to qualified borrowers so that they may purchase homes. The FHA and HUD also offer mortgage insurance for those who are part of the VA Home Loan Guarantee Program. Contact a loan specialist to see if you are eligible for this type of loan.

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Kentucky FHA Streamline Refinance Changes 2012

Kentucky FHA Streamline Refinance Changes 2012

 

 

FHA ANNOUNCES PRICE CUTS TO ENCOURAGE STREAMLINE REFINANCING for Kentucky FHA Homeowners
Millions of Kentucky FHA borrowers  and other borrowers in other states could save big on their monthly payments to FHA 

WASHINGTON – Today, Acting Federal Housing (FHA) Commissioner Carol Galante announced significant price cuts to Kentucky FHA’s Streamline Refinance Program that could benefit millions of borrowers whose Kentucky mortgages are currently insured by FHA.   Beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers.

To qualify, borrowers must be current on their existing FHA-insured mortgages which were endorsed on or before May 31, 2009.  Late last month, FHA also announced it will increase its upfront premiums on most other loans by 75 basis points to 1.75 percent.  In addition, FHA will raise annual premiums 10 basis points and 35 basis points on mortgages higher than $625,500. Read FHA’s new Mortgagee Letter.

“This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates,” said Galante.  “By significantly reducing costs for these borrowers, we can make certain they cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process.”

Currently, 3.4 million households with loans endorsed on or before May 31, 2009, pay more than a five percent annual interest rate on their FHA-insured mortgages.  By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year or $250 per month. FHA’s new discounted prices assume no greater risk to its Mutual Mortgage Insurance (MMI) Fund and will allow many of these borrowers to refinance into a lower cost FHA-insured mortgage without requiring additional underwriting.  FHA-insured homeowners should contact their existing lender to determine their eligibility.

Last month, the Obama Administration announced a broad package of actions and legislative proposals to help responsible homeowners save thousands of dollars through refinancing. This includes the changes announced today that will benefit current FHA borrowers – particularly those whose loan value may exceed the current value of their home.  By lowering monthly mortgage costs for home-owners, FHA hopes to help more borrowers stay in their homes, thereby decreasing the potential for future default and reducing losses to the Mutual Mortgage Insurance (MMI) Fund.

The changes outlined in today’s mortgagee letter apply to all mortgages insured under FHA’s Single Family Mortgage Insurance Programs except:

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Louisville Kentucky Mortgage Programs

Louisville Kentucky Mortgage Programs

As an approved Louisville Kentucky  Fannie Mae (FNMA) and Louisville Ky FHA mortgage professional, I offer a wide array of Kentucky loan programs, including Kentucky First Time Home Buyers Programs, Kentucky Refinance Programs, or Louisville Kentucky Renovation Home Programs.

Kentucky Home Purchase Programs

 

Whether you’re a first-time home-buyer, upgrading to a new home, or buying an additional property, we offer a wide array of mortgage loan programs – many requiring a limited down payment (0 to 3%) for qualified individuals, both repeat and first time buyers.

Mortgage Program Highlights:
  • Fixed and adjustable rate options
  • $0 down payment options available
  • Up to 6% seller concessions
  • Down payment assistance and gifts permitted
  • Credit scores as low as 580 on FHA, VA, USDA Mortgage Programs. 
  • Debt to income ratios to 55.00% with automated approval

We specialize in the following Kentucky Home Mortgage Programs:

Conforming Agency (Conventional): Loans that conform to Fannie Mae and Freddie Mac guidelines, including maximum loan amount, borrower credit and income levels, down payment, and eligible properties.
Kentucky FHA: Loans insured by the Federal Housing Administration, a federal assistance program that promotes home ownership by offering low down payment options, lower interest rates and easier qualifications.
Kentucky VA: Loans guaranteed by the Department of Veterans Affairs for military service members with benefits like no down payment (100% financing) and competitive (and usually lower) interest rates.
Kentucky USDA: (United States Department of Agriculture) Government-insured rural development loans for the purchase of homes in rural areas with no down payment (100% financing), no monthly mortgage insurance and low interest rates.

Kentucky Housing Corporation: KHC housing program for qualified first-time home buyers offering down payment and closing costs assistance up to $6,000 in down payment assistance in form of a second mortgage over 10 years. It has different rates depending on the income of household but 1% for 10 years for lower income and 5.5% for 10 years for higher incomes.

 

Apply for a home loan by clicking the link below: It’s free and takes less than 5 minutes Or call us at 502-905-3708 for your free application over the phone

FHA Loans in Kentucky  – Gifts to Pay off Debt

Do you know that a gift can be used to pay off Borrower’s debts to qualify on an Kentucky FHA Loan?

A regular gift (this does not include a gift of equity) may be used to pay off a Borrower’s debt(s) for qualifying purposes as long as both the gift funds and the debt(s) being paid off with the gift funds are accurately disclosed and assessed by AUS TOTAL Scorecard. Whenever a gift is received on an Kentucky FHA loan, regardless of what it is being used for, it carries certain risks that must be assessed by TOTAL Scorecard for qualifying purposes.

When a gift is received to pay off debt(s), follow the steps below to ensure that TOTAL Scorecard accurately assesses the risk of using gift funds in paying off debt for qualifying:

  • Verify that evidence of the debt(s) having a zero balance has been obtained,
  • Enter the gift funds received separate from any account balances and check “will be paid off” for debts in loan origination system (not “paid off”), and
  • Submit the loan to TOTAL Scorecard
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/

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/

.

Featured

Type of Kentucky FHA loans available

FHA loans are government-backed, which protect lenders against defaults, making it possible to offer prospective borrowers lower interest rates. Keep in mind that the FHA doesn’t actually lend money to borrowers, nor does the agency set the interest rates on FHA loans, it simply insures them.

Because FHA loans are government-insured, they have easier credit qualifying guidelines than most lenders, as well as relatively low closing costs and down payment requirements.

With an FHA loan, your down payment can be as low as 3.5% of the purchase price, and closing costs can be bundled with the loan amount.

Types of FHA Loans

The FHA has a variety of loan programs for first-time homebuyers, along with reverse mortgages for senior citizens, and has insured more than 34 million mortgages since 1934.

FHA loans are available for both purchases and refinances, including cash out refinances. FHA loans can be used to finance residential 1-4 unit properties, including condominiums, manufactured homes and mobile homes (provided it is on a permanent foundation), but you can hold only one FHA loan at any given time.

FHA loans can be either adjustable-rate mortgages or fixed-rate mortgages. If the interest rate is adjustable, it will be based on the 1-Year Constant Maturity Treasury Index, which is the most widely used mortgage index.

 

FHA Mortgage Insurance Premium Costs

If the loan-to-value (LTV) is greater than 80%, mortgage insurance is required. FHA loans have an upfront mortgage insurance premium equal to 1% of the loan amount. This is typically bundled into the loan amount and paid throughout the life of the loan.

You must also pay an annual mortgage insurance premium if you take out an FHA loan.

Beginning October 4, 2010, if the loan-to-value is less than or equal to 95%, you will have to pay an annual mortgage insurance premium of 0.85% of the loan amount.  For FHA loans with an LTV above 95%, the annual insurance premium is 0.90%.

FHA Credit Score Requirements

Borrowers with credit scores of 580 and above are eligible for maximum financing, or just 3.5 percent down.

If your credit score is between 500 and 579, your FHA loan is limited to 90 percent loan-to-value (LTV), meaning you must put down 10%.

If your credit score is below 500, you are not eligible for an FHA loan.

The FHA, like any other bank or mortgage lender, has guidelines that need to be met, but generally makes it easy for potential homeowners to qualify for a loan.

Since the mortgage crisis struck, FHA loans have become increasingly popular, essentially replacing subprime lending, largely because of their relatively easy underwriting requirements and government guarantee.

But make sure you compare FHA loans with conventional loans as well. There will be cases when the benefit of one outweighs the other.

FHA loans are not guaranteed to be a better deal than other mortgages, so take the time to shop around. And watch out for unscrupulous FHA-qualified lenders who may attempt to misinform you.

Featured

2011 Kentucky FHA Mortgage Loan Limits

2011 Kentucky FHA Mortgage Loan Limits

 

Kentucky FHA Mortgage Limits List – FHA Forward

Message: MORTGAGE LIMITS SUCCESSFULLY COMPLETED

Mortgage maximums as of Wednesday November 30, 2011
(120 records were selected, records 1 through 50 displayed)

MSA Name MSA Code Division County Name County
Code
State One-Family Two-Family Three-Family Four-Family Median Sale Price Last Revised Limit Year
NON-METRO 99999   ADAIR 001 KY $271,050 $347,000 $419,425 $521,250 $73,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   ALLEN 003 KY $271,050 $347,000 $419,425 $521,250 $89,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
FRANKFORT, KY (MICRO) 23180   ANDERSON 005 KY $271,050 $347,000 $419,425 $521,250 $115,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
PADUCAH, KY-IL (MICRO) 37140   BALLARD 007 KY $271,050 $347,000 $419,425 $521,250 $83,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
GLASGOW, KY (MICRO) 23980   BARREN 009 KY $271,050 $347,000 $419,425 $521,250 $105,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MOUNT STERLING, KY (MICRO) 34460   BATH 011 KY $271,050 $347,000 $419,425 $521,250 $85,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MIDDLESBOROUGH, KY (MICRO) 33180   BELL 013 KY $271,050 $347,000 $419,425 $521,250 $67,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 17140   BOONE 015 KY $337,500 $432,050 $522,250 $649,050 $187,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LEXINGTON-FAYETTE, KY (MSA) 30460   BOURBON 017 KY $271,050 $347,000 $419,425 $521,250 $161,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
HUNTINGTON-ASHLAND, WV-KY-OH (MSA) 26580   BOYD 019 KY $271,050 $347,000 $419,425 $521,250 $115,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
DANVILLE, KY (MICRO) 19220   BOYLE 021 KY $271,050 $347,000 $419,425 $521,250 $114,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 17140   BRACKEN 023 KY $337,500 $432,050 $522,250 $649,050 $187,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   BREATHITT 025 KY $271,050 $347,000 $419,425 $521,250 $51,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   BRECKINRIDGE 027 KY $271,050 $347,000 $419,425 $521,250 $60,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   BULLITT 029 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   BUTLER 031 KY $271,050 $347,000 $419,425 $521,250 $85,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CALDWELL 033 KY $271,050 $347,000 $419,425 $521,250 $58,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MURRAY, KY (MICRO) 34660   CALLOWAY 035 KY $271,050 $347,000 $419,425 $521,250 $95,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 17140   CAMPBELL 037 KY $337,500 $432,050 $522,250 $649,050 $187,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CARLISLE 039 KY $271,050 $347,000 $419,425 $521,250 $69,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CARROLL 041 KY $271,050 $347,000 $419,425 $521,250 $92,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CARTER 043 KY $271,050 $347,000 $419,425 $521,250 $74,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CASEY 045 KY $271,050 $347,000 $419,425 $521,250 $54,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CLARKSVILLE, TN-KY (MSA) 17300   CHRISTIAN 047 KY $271,050 $347,000 $419,425 $521,250 $136,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LEXINGTON-FAYETTE, KY (MSA) 30460   CLARK 049 KY $271,050 $347,000 $419,425 $521,250 $161,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CLAY 051 KY $271,050 $347,000 $419,425 $521,250 $20,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CLINTON 053 KY $271,050 $347,000 $419,425 $521,250 $33,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CRITTENDEN 055 KY $271,050 $347,000 $419,425 $521,250 $46,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   CUMBERLAND 057 KY $271,050 $347,000 $419,425 $521,250 $59,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
OWENSBORO, KY (MSA) 36980   DAVIESS 059 KY $271,050 $347,000 $419,425 $521,250 $48,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
BOWLING GREEN, KY (MSA) 14540   EDMONSON 061 KY $271,050 $347,000 $419,425 $521,250 $153,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   ELLIOTT 063 KY $271,050 $347,000 $419,425 $521,250 $60,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   ESTILL 065 KY $271,050 $347,000 $419,425 $521,250 $80,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LEXINGTON-FAYETTE, KY (MSA) 30460   FAYETTE 067 KY $271,050 $347,000 $419,425 $521,250 $161,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   FLEMING 069 KY $271,050 $347,000 $419,425 $521,250 $30,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   FLOYD 071 KY $271,050 $347,000 $419,425 $521,250 $68,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
FRANKFORT, KY (MICRO) 23180   FRANKLIN 073 KY $271,050 $347,000 $419,425 $521,250 $115,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
UNION CITY, TN-KY (MICRO) 46460   FULTON 075 KY $271,050 $347,000 $419,425 $521,250 $55,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 17140   GALLATIN 077 KY $337,500 $432,050 $522,250 $649,050 $187,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   GARRARD 079 KY $271,050 $347,000 $419,425 $521,250 $92,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 17140   GRANT 081 KY $337,500 $432,050 $522,250 $649,050 $187,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MAYFIELD, KY (MICRO) 32460   GRAVES 083 KY $271,050 $347,000 $419,425 $521,250 $71,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   GRAYSON 085 KY $271,050 $347,000 $419,425 $521,250 $76,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   GREEN 087 KY $271,050 $347,000 $419,425 $521,250 $57,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
HUNTINGTON-ASHLAND, WV-KY-OH (MSA) 26580   GREENUP 089 KY $271,050 $347,000 $419,425 $521,250 $115,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
OWENSBORO, KY (MSA) 36980   HANCOCK 091 KY $271,050 $347,000 $419,425 $521,250 $48,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
ELIZABETHTOWN, KY (MSA) 21060   HARDIN 093 KY $271,050 $347,000 $419,425 $521,250 $125,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   HARLAN 095 KY $271,050 $347,000 $419,425 $521,250 $50,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   HARRISON 097 KY $271,050 $347,000 $419,425 $521,250 $70,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   HART 099 KY $271,050 $347,000 $419,425 $521,250 $84,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MSA Name MSA Code Division County Name County
Code
State One-Family Two-Family Three-Family Four-Family Median Sale Price Last Revised Limit Year
EVANSVILLE, IN-KY (MSA) 21780   HENDERSON 101 KY $271,050 $347,000 $419,425 $521,250 $154,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   HENRY 103 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   HICKMAN 105 KY $271,050 $347,000 $419,425 $521,250 $29,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MADISONVILLE, KY (MICRO) 31580   HOPKINS 107 KY $271,050 $347,000 $419,425 $521,250 $80,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   JACKSON 109 KY $271,050 $347,000 $419,425 $521,250 $62,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   JEFFERSON 111 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LEXINGTON-FAYETTE, KY (MSA) 30460   JESSAMINE 113 KY $271,050 $347,000 $419,425 $521,250 $161,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   JOHNSON 115 KY $271,050 $347,000 $419,425 $521,250 $79,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 17140   KENTON 117 KY $337,500 $432,050 $522,250 $649,050 $187,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   KNOTT 119 KY $271,050 $347,000 $419,425 $521,250 $73,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   KNOX 121 KY $271,050 $347,000 $419,425 $521,250 $79,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
ELIZABETHTOWN, KY (MSA) 21060   LARUE 123 KY $271,050 $347,000 $419,425 $521,250 $125,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LONDON, KY (MICRO) 30940   LAUREL 125 KY $271,050 $347,000 $419,425 $521,250 $88,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   LAWRENCE 127 KY $271,050 $347,000 $419,425 $521,250 $61,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   LEE 129 KY $271,050 $347,000 $419,425 $521,250 $59,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   LESLIE 131 KY $271,050 $347,000 $419,425 $521,250 $66,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   LETCHER 133 KY $271,050 $347,000 $419,425 $521,250 $56,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MAYSVILLE, KY (MICRO) 32500   LEWIS 135 KY $271,050 $347,000 $419,425 $521,250 $104,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
DANVILLE, KY (MICRO) 19220   LINCOLN 137 KY $271,050 $347,000 $419,425 $521,250 $114,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
PADUCAH, KY-IL (MICRO) 37140   LIVINGSTON 139 KY $271,050 $347,000 $419,425 $521,250 $83,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   LOGAN 141 KY $271,050 $347,000 $419,425 $521,250 $70,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   LYON 143 KY $271,050 $347,000 $419,425 $521,250 $68,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
RICHMOND-BEREA, KY (MICRO) 40080   MADISON 151 KY $271,050 $347,000 $419,425 $521,250 $133,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MAGOFFIN 153 KY $271,050 $347,000 $419,425 $521,250 $68,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MARION 155 KY $271,050 $347,000 $419,425 $521,250 $59,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MARSHALL 157 KY $271,050 $347,000 $419,425 $521,250 $97,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MARTIN 159 KY $271,050 $347,000 $419,425 $521,250 $80,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MAYSVILLE, KY (MICRO) 32500   MASON 161 KY $271,050 $347,000 $419,425 $521,250 $104,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
PADUCAH, KY-IL (MICRO) 37140   MCCRACKEN 145 KY $271,050 $347,000 $419,425 $521,250 $83,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MCCREARY 147 KY $271,050 $347,000 $419,425 $521,250 $43,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
OWENSBORO, KY (MSA) 36980   MCLEAN 149 KY $271,050 $347,000 $419,425 $521,250 $48,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   MEADE 163 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MOUNT STERLING, KY (MICRO) 34460   MENIFEE 165 KY $271,050 $347,000 $419,425 $521,250 $85,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MERCER 167 KY $271,050 $347,000 $419,425 $521,250 $102,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
GLASGOW, KY (MICRO) 23980   METCALFE 169 KY $271,050 $347,000 $419,425 $521,250 $105,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MONROE 171 KY $271,050 $347,000 $419,425 $521,250 $30,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
MOUNT STERLING, KY (MICRO) 34460   MONTGOMERY 173 KY $271,050 $347,000 $419,425 $521,250 $85,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   MORGAN 175 KY $271,050 $347,000 $419,425 $521,250 $71,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CENTRAL CITY, KY (MICRO) 16420   MUHLENBERG 177 KY $271,050 $347,000 $419,425 $521,250 $70,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   NELSON 179 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   NICHOLAS 181 KY $271,050 $347,000 $419,425 $521,250 $37,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   OHIO 183 KY $271,050 $347,000 $419,425 $521,250 $67,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   OLDHAM 185 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   OWEN 187 KY $271,050 $347,000 $419,425 $521,250 $80,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   OWSLEY 189 KY $271,050 $347,000 $419,425 $521,250 $45,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) 17140   PENDLETON 191 KY $337,500 $432,050 $522,250 $649,050 $187,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   PERRY 193 KY $271,050 $347,000 $419,425 $521,250 $69,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   PIKE 195 KY $271,050 $347,000 $419,425 $521,250 $40,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   POWELL 197 KY $271,050 $347,000 $419,425 $521,250 $72,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
SOMERSET, KY (MICRO) 43700   PULASKI 199 KY $271,050 $347,000 $419,425 $521,250 $86,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
 The Nov 18, 2011 – Dec 31, 2011 basic standard mortgage limits for FHA insured loans are:
      One-family   Two-family   Three-family   Four-family  
  FHA Forward   $271,050.00   $347,000.00   $419,425.00   $521,250.00  
  HECM   $625,500.00      
  Fannie/Freddie   $417,000.00   $533,850.00   $645,300.00   $801,950.00  

High cost area limits are subject to a ceiling based on a percent of the Freddie Mac Loan limits
The ceilings for Nov 18, 2011 – Dec 31, 2011 are:
      One-family   Two-family   Three-family   Four-family  
  FHA Forward   $729,750.00   $934,200.00   $1,129,250.00   $1,403,400.00  
  HECM   $625,500.00      
  Fannie/Freddie   $625,500.00   $800,775.00   $967,950.00   $1,202,925.00  

 
      One-family   Two-family   Three-family   Four-family  
  FHA Forward   $1,094,625.00   $1,401,300.00   $1,693,875.00   $2,105,100.00  
  Fannie/Freddie   $938,250.00   $1,201,150.00   $1,451,925.00   $1,804,375.00  

MSA Name MSA Code Division County Name County
Code
State One-Family Two-Family Three-Family Four-Family Median Sale Price Last Revised Limit Year
NON-METRO 99999   ROBERTSON 201 KY $271,050 $347,000 $419,425 $521,250 $77,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
RICHMOND-BEREA, KY (MICRO) 40080   ROCKCASTLE 203 KY $271,050 $347,000 $419,425 $521,250 $133,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   ROWAN 205 KY $271,050 $347,000 $419,425 $521,250 $37,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   RUSSELL 207 KY $271,050 $347,000 $419,425 $521,250 $73,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LEXINGTON-FAYETTE, KY (MSA) 30460   SCOTT 209 KY $271,050 $347,000 $419,425 $521,250 $161,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   SHELBY 211 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   SIMPSON 213 KY $271,050 $347,000 $419,425 $521,250 $89,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   SPENCER 215 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CAMPBELLSVILLE, KY (MICRO) 15820   TAYLOR 217 KY $271,050 $347,000 $419,425 $521,250 $77,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   TODD 219 KY $271,050 $347,000 $419,425 $521,250 $87,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CLARKSVILLE, TN-KY (MSA) 17300   TRIGG 221 KY $271,050 $347,000 $419,425 $521,250 $136,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) 31140   TRIMBLE 223 KY $302,500 $387,250 $468,100 $581,750 $229,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   UNION 225 KY $271,050 $347,000 $419,425 $521,250 $40,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
BOWLING GREEN, KY (MSA) 14540   WARREN 227 KY $271,050 $347,000 $419,425 $521,250 $153,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   WASHINGTON 229 KY $271,050 $347,000 $419,425 $521,250 $103,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   WAYNE 231 KY $271,050 $347,000 $419,425 $521,250 $69,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
EVANSVILLE, IN-KY (MSA) 21780   WEBSTER 233 KY $271,050 $347,000 $419,425 $521,250 $154,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
CORBIN, KY (MICRO) 18340   WHITLEY 235 KY $271,050 $347,000 $419,425 $521,250 $36,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
NON-METRO 99999   WOLFE 237 KY $271,050 $347,000 $419,425 $521,250 $52,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011
LEXINGTON-FAYETTE, KY (MSA) 30460   WOODFORD 239 KY $271,050 $347,000 $419,425 $521,250 $161,000 11/30/2011 Nov 18, 2011 – Dec 31, 2011

 

 

This is a listing of the FHA single family mortgage limits. This listing was downloaded from the Department’s Computerized Home Underwriting Management System. Since mortgage limits are updated constantly, please contact the Homeownership Center if you believe this information is in error.

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FHA Mortgage Loan Limits for Kentucky (KY) 2011

FHA  Mortgage Loan Limits for Kentucky (KY) 2011

County
1 Family
2 Family
3 Family
4 Family
Adair County, KY
$271,050
$347,000
$419,400
$521,250
Allen County, KY
$271,050
$347,000
$419,400
$521,250
Anderson County, KY
$271,050
$347,000
$419,400
$521,250
Ballard County, KY
$271,050
$347,000
$419,400
$521,250
Barren County, KY
$271,050
$347,000
$419,400
$521,250
Bath County, KY
$271,050
$347,000
$419,400
$521,250
Bell County, KY
$271,050
$347,000
$419,400
$521,250
Boone County, KY
$271,050
$347,000
$419,400
$521,250
Bourbon County, KY
$271,050
$347,000
$419,400
$521,250
Boyd County, KY
$271,050
$347,000
$419,400
$521,250
Boyle County, KY
$271,050
$347,000
$419,400
$521,250
Bracken County, KY
$271,050
$347,000
$419,400
$521,250
Breathitt County, KY
$271,050
$347,000
$419,400
$521,250
Breckinridge County, KY
$271,050
$347,000
$419,400
$521,250
Bullitt County, KY
Butler County, KY
$271,050
$347,000
$419,400
$521,250
Caldwell County, KY
$271,050
$347,000
$419,400
$521,250
Calloway County, KY
$271,050
$347,000
$419,400
$521,250
Campbell County, KY
$271,050
$347,000
$419,400
$521,250
Carlisle County, KY
$271,050
$347,000
$419,400
$521,250
Carroll County, KY
$271,050
$347,000
$419,400
$521,250
Carter County, KY
$271,050
$347,000
$419,400
$521,250
Casey County, KY
$271,050
$347,000
$419,400
$521,250
Christian County, KY
$271,050
$347,000
$419,400
$521,250
Clark County, KY
$271,050
$347,000
$419,400
$521,250
Clay County, KY
$271,050
$347,000
$419,400
$521,250
Clinton County, KY
$271,050
$347,000
$419,400
$521,250
Crittenden County, KY
$271,050
$347,000
$419,400
$521,250
Cumberland County, KY
$271,050
$347,000
$419,400
$521,250
Daviess County, KY
$271,050
$347,000
$419,400
$521,250
Edmonson County, KY
$271,050
$347,000
$419,400
$521,250
Elliott County, KY
$271,050
$347,000
$419,400
$521,250
Estill County, KY
$271,050
$347,000
$419,400
$521,250
Fayette County, KY
$271,050
$347,000
$419,400
$521,250
Fleming County, KY
$271,050
$347,000
$419,400
$521,250
Floyd County, KY
$271,050
$347,000
$419,400
$521,250
Franklin County, KY
$271,050
$347,000
$419,400
$521,250
Fulton County, KY
$271,050
$347,000
$419,400
$521,250
Gallatin County, KY
$271,050
$347,000
$419,400
$521,250
Garrard County, KY
$271,050
$347,000
$419,400
$521,250
Grant County, KY
$271,050
$347,000
$419,400
$521,250
Graves County, KY
$271,050
$347,000
$419,400
$521,250
Grayson County, KY
$271,050
$347,000
$419,400
$521,250
Green County, KY
$271,050
$347,000
$419,400
$521,250
Greenup County, KY
$271,050
$347,000
$419,400
$521,250
Hancock County, KY
$271,050
$347,000
$419,400
$521,250
Hardin County, KY
$271,050
$347,000
$419,400
$521,250
Harlan County, KY
$271,050
$347,000
$419,400
$521,250
Harrison County, KY
$271,050
$347,000
$419,400
$521,250
Hart County, KY
$271,050
$347,000
$419,400
$521,250
Henderson County, KY
$271,050
$347,000
$419,400
$521,250
Henry County, KY
$271,050
$347,000
$419,400
$521,250
Hickman County, KY
$271,050
$347,000
$419,400
$521,250
Hopkins County, KY
$271,050
$347,000
$419,400
$521,250
Jackson County, KY
$271,050
$347,000
$419,400
$521,250
Jefferson County, KY
Jessamine County, KY
$271,050
$347,000
$419,400
$521,250
Johnson County, KY
$271,050
$347,000
$419,400
$521,250
Kenton County, KY
$271,050
$347,000
$419,400
$521,250
Knott County, KY
$271,050
$347,000
$419,400
$521,250
Knox County, KY
$271,050
$347,000
$419,400
$521,250
Larue County, KY
$271,050
$347,000
$419,400
$521,250
Laurel County, KY
$271,050
$347,000
$419,400
$521,250
Lawrence County, KY
$271,050
$347,000
$419,400
$521,250
Lee County, KY
$271,050
$347,000
$419,400
$521,250
Leslie County, KY
$271,050
$347,000
$419,400
$521,250
Letcher County, KY
$271,050
$347,000
$419,400
$521,250
Lewis County, KY
$271,050
$347,000
$419,400
$521,250
Lincoln County, KY
$271,050
$347,000
$419,400
$521,250
Livingston County, KY
$271,050
$347,000
$419,400
$521,250
Logan County, KY
$271,050
$347,000
$419,400
$521,250
Lyon County, KY
$271,050
$347,000
$419,400
$521,250
McCracken County, KY
$271,050
$347,000
$419,400
$521,250
McCreary County, KY
$271,050
$347,000
$419,400
$521,250
McLean County, KY
$271,050
$347,000
$419,400
$521,250
Madison County, KY
$271,050
$347,000
$419,400
$521,250
Magoffin County, KY
$271,050
$347,000
$419,400
$521,250
Marion County, KY
$271,050
$347,000
$419,400
$521,250
Marshall County, KY
$271,050
$347,000
$419,400
$521,250
Martin County, KY
$271,050
$347,000
$419,400
$521,250
Mason County, KY
$271,050
$347,000
$419,400
$521,250
Meade County, KY
$271,050
$347,000
$419,400
$521,250
Menifee County, KY
$271,050
$347,000
$419,400
$521,250
Mercer County, KY
$271,050
$347,000
$419,400
$521,250
Metcalfe County, KY
$271,050
$347,000
$419,400
$521,250
Monroe County, KY
$271,050
$347,000
$419,400
$521,250
Montgomery County, KY
$271,050
$347,000
$419,400
$521,250
Morgan County, KY
$271,050
$347,000
$419,400
$521,250
Muhlenberg County, KY
$271,050
$347,000
$419,400
$521,250
Nelson County, KY
$271,050
$347,000
$419,400
$521,250
Nicholas County, KY
$271,050
$347,000
$419,400
$521,250
Ohio County, KY
$271,050
$347,000
$419,400
$521,250
Oldham County, KY
$271,050
$347,000
$419,400
$521,250
Owen County, KY
$271,050
$347,000
$419,400
$521,250
Owsley County, KY
$271,050
$347,000
$419,400
$521,250
Pendleton County, KY
$271,050
$347,000
$419,400
$521,250
Perry County, KY
$271,050
$347,000
$419,400
$521,250
Pike County, KY
$271,050
$347,000
$419,400
$521,250
Powell County, KY
$271,050
$347,000
$419,400
$521,250
Pulaski County, KY
$271,050
$347,000
$419,400
$521,250
Robertson County, KY
$271,050
$347,000
$419,400
$521,250
Rockcastle County, KY
$271,050
$347,000
$419,400
$521,250
Rowan County, KY
$271,050
$347,000
$419,400
$521,250
Russell County, KY
$271,050
$347,000
$419,400
$521,250
Scott County, KY
$271,050
$347,000
$419,400
$521,250
Shelby County, KY
$271,050
$347,000
$419,400
$521,250
Simpson County, KY
$271,050
$347,000
$419,400
$521,250
Spencer County, KY
$271,050
$347,000
$419,400
$521,250
Taylor County, KY
$271,050
$347,000
$419,400
$521,250
Todd County, KY
$271,050
$347,000
$419,400
$521,250
Trigg County, KY
$271,050
$347,000
$419,400
$521,250
Trimble County, KY
$271,050
$347,000
$419,400
$521,250
Union County, KY
$271,050
$347,000
$419,400
$521,250
Warren County, KY
$271,050
$347,000
$419,400
$521,250
Washington County, KY
$271,050
$347,000
$419,400
$521,250
Wayne County, KY
$271,050
$347,000
$419,400
$521,250
Webster County, KY
$271,050
$347,000
$419,400
$521,250
Whitley County, KY
$271,050
$347,000
$419,400
$521,250
Wolfe County, KY
$271,050
$347,000
$419,400
$521,250
Woodford County, KY
$271,050
$347,000
$419,400
$521,250
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Louisville Ky Mortgage Rates

Louisville Ky Mortgage Rates FHA, VA, KHC, USDAKentucky Housing Loans Jefferson County KentuckyKentucky FHA loansKentucky FHA Mortgage LendersFirst Time Home Buyer Louisvill eKy100_percent_financing Louisville Kentucky

Louisville Ky Mortgage Rates, a set on Flickr.

FHA, VA, KHC, Rural Housing, USDA, Fannie Mae Mortgage Loans
Current Louisville Kentucky mortgage rates today 06/04/2011
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Current Louisville Kentucky mortgage rates today

(Current FHA/VA KHC Rates) Kentucky today

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Louisville Kentucky Mortgage Rates for today
Mortgage Product Mortgage Rates & (APR)
15 Year Fixed Conventional 3.750% 4.135% apr
30 Year Fixed Conventional 4.375% 4.834% apr
30 Year Fixed FHA 4.250% 5.275% apr
30 Year Fixed USDA 4.625% 5.288% apr
30 year Fixed VA 4.250% 5.189% apr
30 year Fixed KHC 4.500% 5.377% apr

Current Louisville Kentucky Mortgage Rates today
Rates are subject to qualifying criteria
Rates are subject to change without notice.
Free Credit Report and Pre qualifications available anytime.

Louisville Kentucky Mortgage Rates are updated daily at this blog

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Louisville KY Home Loans

 Louisville KY Home Loans

Whether you are looking for great 30 year mortgage rates for a home in the Bonnycastle neighborhood of the Highlands District, low 5 year ARM rates for a place in Werne’s Row in Old Louisville, or unbelievable fha mortgage rates for a house in the South End, American Financial Resources is your low rate leader. Louisville, the county seat of Jefferson County, has grown into the largest city in Kentucky and offers its residents a laundry list of cultural and entertainment outlets. Whether you enjoy relaxing in the Louisville Waterfront Park, attending a show at the Kentucky Center, rooting for your favorite horse at the derby, or cruising on the Ohio River, Louisville offers something for everyone. If you are considering buying a home or refinancing your existing mortgage in the River City, give us a call. We can help you find the KY home loan you are searching for and some of the lowest Louisville mortgage rates anywhere.

Request Louisville Mortgage Rates and Program Information (3 options)

Louisville FHA Loan Options
Louisville KY Mobile Home Loans

Find Kentucky mortgage loan information for other parts of the state.
Lexington
Owensboro
Bowling Green

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Kentucky Mortgage Rates updated Tuesday, June 08, 2011

Kentucky Mortgage Rates updated Tuesday, June 08, 2011

Kentucky Mortgage Type Today Last Week  APR
30 yr fixed 4.375 4.500    4.754%
15 yr fixed 3.750 3.625   3.784%
30 yr FHA 4.250 4.375   5.178%
30 yr USDA 4.750 4.625     5 .478%

30 yr VA                                                     4.250                     4.250                              5.273

Current Louisville Kentucky Mortgage Rates Today 06/05/2011


Louisville Kentucky Mortgage Rates are subject to qualifying criteria
Louisville Mortgage Rates can change without notice
Free Credit Report and Pre qualifications available anytime. Key Financial Mortgage of KY is a licensed mortgage company in the state of Kentucky (NMLS#1800)  Key Financial Mortgage of KY is not a part of, nor are we affiliated with, the VA, FHA/HUD, USDA. These entities are a government agency, not a lender. They simply insures the mortgages; they do not loan the money. Joel Lobb (NMLS#57916) is a licensed mortgage  loanofficer in the state of Kentucky.Current Louisville Kentucky Mortgage Rates are updated daily at this blog
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Kentucky FHA Mortgage Guidelines

FHA Guidelines for Loan in Kentucky iQuantcast

>FHA Guidelines for Loan in Kentucky on a home

Guidelines for an FHA loan in Kentucky.Getting a Federal Housing Authority (FHA) sponsored loan in Kentucky requires several criteria to be met before an applicant can receive mortgage funds. Since the FHA is a federal agency, the qualification requirements for a mortgage loan are similar in most states. However, depending upon relevant financial considerations and cost of living indexes, the maximum FHA loan limit fluctuates from state to state and within regions of a state. Each FHA home loan application is considered on an individual basis.

FHA Loan Limits

In order to qualify for an FHA loan in Kentucky, the final negotiated selling price of the home an applicant is interested in buying must fall below the state’s FHA loan limits. According to FHA Home Loan Mortgage and Lender 411, in most counties in Kentucky, the FHA loan limit as of 2010 is $271,050. In the Louisville area including Bullitt, Henry, Jefferson, Meade, Nelson, Oldham, Shelby and Trimble counties, the FHA loan limit is $302,500. Additionally, in the Cincinnati area including Boone, Bracken, Cambell, Gallatin, Kenton and Pendleton counties, the FHA loan limit is $337,500.

Judgements Must be Paid

One of the guidelines to get an FHA loan in Kentucky is that there can not be any outstanding monetary judgments in the applicant’s name. According to 1st Continental Mortgage, judgments must be paid off before an FHA mortgage loan is eligible for insurance. 1st Continental Mortgage also states that exceptions can be made if an applicant has shown a strong payment history on his judgment and has been making his payments on time. Documents proving these acceptable payments and a creditor’s willingness to subordinate the judgment to the insured mortgage are necessary in this case.

Previous Foreclosure

In order to meet the FHA guidelines for a loan in Kentucky, a borrower does not qualify if she has had a recent foreclosure on another property. According to 1st Continental Mortgage, an applicant who has a real estate property that was foreclosed on within the past three years, or an applicant who was given a deed-in-lieu of foreclosure within the previous three years, is not generally eligible. Once again, exceptions can be made on an individual application basis if there are extenuating documented circumstances that a loan officer feels were beyond the applicant’s control.

Bankruptcy

In Kentucky, bankruptcy does not automatically disqualify an an applicant from receiving an FHA mortgage loan. states that with a Chapter 7 Bankruptcy, an FHA applicant will not be disqualified if at least two years have passed since the bankruptcy was discharged. In the case of a Chapter 13 Bankruptcy, a borrower may qualify for an FHA loan if at least one year of the pay-out period has been completed and the applicant can show a satisfactory payment history during that one year timeframe.

Down Payment

The guidelines for an FHA loan in Kentucky require a minimum down-payment of about 3.5 percent of the price of the home. Gifts from family and financial assistance from acceptable outside resources can satisfy the down-payment amount if an applicant does not have the cash on hand. According toMortgage, the seller can not pay the down payment, but he can pay up to 6 percent of the price of the home in closing costs.

Pest Inspection

A home inspection is not required to borrow money in the form of an FHA loan in Kentucky, even though it is a positive home buying practice. However, the FHA’s guidelines do require an acceptable pest inspection before the property can be purchased.

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FHA Loan Qualifying Summary

FHA Loan Qualifying Summary
…………………………………………………………………….

FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA loan requirement guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.

Basic FHA loan requirements.

  • Two Years of steady employment,
  • Last two years Income should be the same or increasing.
  • Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 580 or higher or in some cases no credit score at all.
  • Bankruptcy’s must be at least two years old, with perfect credit since discharge.
  • Foreclosure’s must be at least three years old, with perfect credit since.
  • Your new mortgage payment should be approximately 30% of your gross (before taxes)  income.

These are some of the most basic of FHA loan requirements  for qualifying for a FHA loan.  If   you have answered yes to most of these statements, you probably qualify for a FHA mortgage loan.

Get prequalified for a FHA loan >> Here – or-  Apply now for a FHA loan >> Here.

If you are unsure about your credit score or credit report, you can get a free credit score and view your credit report online instantly.

Following are some hyperlinks to some more detailed descriptions of FHA guidelines for qualifying for a FHA loan. Please click on the item that you require additional information on FHA requirements.

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Frequently Asked Questions about FHA Kentucky Home Loans

Frequently Asked Questions about FHA Kentucky Home Loans.

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Credit Scores For Kentucky FHA Loans

Credit Scores For Kentucky FHA Loans

 

By KAREN BLUMENTHAL  Wall Street Journal

Are you keeping score?

Credit scores have been getting a lot of attention lately, as lenders tighten credit standards and contend with new legislation that has, among other things, reined in how credit-card issuers can raise rates.

Meanwhile, several firms, preying on our insecurities, are pushing credit scores and credit-score-tracking services for a monthly fee.

For all the attention they generate, though, credit scores are largely misunderstood. For instance, your precise score matters only when you’re in need of new debt, like a home, auto or education loan or a new credit card, which should be a fairly rare occurrence.

You don’t have just one score, but many. Your FICO score, the one developed by Fair Isaac Corp. that runs from a low of 300 to a high of 850, will vary depending on which credit bureau is reporting it and the kind of lender that requested it.

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So the score that costs you $15.95 at MyFico.com may not be the score your lender sees. Beyond that, the three credit bureaus— Equifax, Experian and TransUnion— sell their own proprietary scores.

Confused about what to believe? Here are some common myths about credit scores:

My credit score is a good reflection of my financial smarts and good behavior.

Not really. Your score doesn’t reflect your income, employment history or your assets, which should be a part of your overall financial picture. It also doesn’t show whether you pay your rent or utilities on time. As a result, a credit score is less like a report card and more like an SAT score—your results on a particular date that seek to predict your future credit success or failure.

I pay my card off every month, so I must be a low credit risk.

True, your financial habits are excellent. But they won’t affect your score. That’s because the credit bureaus don’t have a clue whether you pay your bill in full or carry a balance on your cards each month. All they know is the amount you owed on your most recent statement.

Instead, the crucial fact is how much available credit you have used. Steve Ely, president of personal-information solutions at Equifax, says you should keep your credit use to less than half your credit limit to minimize the impact on your score.

Taking advantage of reward cards shouldn’t affect my creditworthiness.

Unfortunately, about 30% of your FICO score is based on “credit utilization,” a broad term that includes how much you’ve used of each credit limit, how much you’ve borrowed as a percentage of your total available credit and even how big the dollar balances actually are.

If you’re a rewards junkie like I am, charging groceries, charitable contributions and just about everything else to get points, you may be jeopardizing your score. Based on reports I paid for, my TransUnion score was 11 points lower than my Equifax score, apparently because of my vacation-enhanced balance, even though I used less than 10% of my available credit.

Luckily, there’s an easy solution: Cut back your credit-card use for two or three months before you plan to seek a car loan or mortgage so that your balances will be more modest.

Scored Straight

Credit scores, while crucial to one’s financial health, are widely misunderstood. Some oft-forgotten points to consider:

  • They don’t reflect your whole financial picture, but a snapshot of your debt at a point in time.
  • It doesn’t matter whether you carry a balance, but it does matter if you pay on time.
  • The score you buy isn’t necessarily the score lenders see.
  • You don’t need to apply for new credit for credit inquiries to show up on your report.

I was late on a payment, but the debt is now paid off. So I’m good, right?

Afraid not. The single most important factor in your score, accounting for 35% of the total, is whether you have paid your bills on time. One late payment will ding your score for up to a year, very late payments can hurt you for two or three years, and collections and bankruptcies can sting for up to seven years.

What counts as late? In theory, one day. But because credit-card companies know that people move, get sick or misplace their bills, they commonly wait to report your late payment to credit bureaus until about 30 days have passed, or you have missed two due dates. (You will likely be assessed a late fee right away, however.)

If you have missed a payment, pay it as soon as possible and consider calling and doing the honorable thing: groveling. Many companies will waive or reduce fees the first time a good customer makes a mistake, and they may even agree to withhold reporting the infraction to the credit bureau.

Information stays on my credit report for no more then seven years.

That’s largely true for bad news, including late payments. But good news hangs around—and pays dividends—a lot longer. My credit report reflects the 30-year history of the credit card I got back in college.

In addition, closed accounts in good standing will stay on your record for a decade, says Barry Paperno, FICO consumer-operations manager. Both old and closed accounts can help your score because the length of your credit history is another, if smaller, piece of the formula.

Getty ImagesYour credit card behavior affects your overall credit score.

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Preserving your credit history is one reason that Kenneth Lin, CEO of Creditkarma.com, recommends that you don’t formally close an account but let the issuer close it for lack of activity. The longer the account stays open, he says, the more you’ll add to your credit history and the longer you’ll benefit from the additional available credit.

I haven’t gotten a loan in a while, which should boost the “new credit” part of my score.

You don’t have to get new credit to show a so-called hard inquiry on your credit report. If you have opened a new checking account, the bank may have checked your score. Last year, I bought a car and the dealer, unbeknownst to me, checked my credit. I never applied for a loan, but that one inquiry knocked 15 points off my Equifax score—and that’s typical.

For that reason, Curtis Arnold, founder of Cardratings.com, suggests you ask up front if a bank, insurer or car dealer plans to check your credit record. Luckily, shopping around for a car or education loan or mortgage counts only as one inquiry as long as you do it within a few weeks. Otherwise, multiple inquiries may knock your score back for a year.

That said, when you check your score, when your current card company keeps tabs on your credit or when someone pre-approves you for a credit-card—all so-called soft inquiries—your score won’t be affected.

The score I pay for or get for free is my real score.

Most free scores are not the FICO scores that lenders request. You can buy FICO scores from Equifax and TransUnion—but not Experian—on MyFico.com for $15.95 each, but even then, they may not be the exact score the lender actually sees. You can, however, see each of your three credit reports—which include all the activity that is used to determine your score, but not the score itself—for free once a year by going to AnnualCreditReport.com. Because your scores aren’t likely to vary by much, ongoing tracking services are usually unnecessary.

I should aspire to a score above 800.

Sadly, a score of 800 or more—the holy grail for “high achievers” on online FICO forums—won’t make you thinner, smarter, richer or more attractive to lenders or anyone else. True, every 20 points in your score can mean a slightly lower mortgage rate or better car loan, but only up to the mid-700s.

That means it’s worthwhile to take steps to improve a score in the 600s or low 700s, and in the high 700s, you’ll have plenty of room for score fluctuation. Beyond that, a higher score is meaningless.

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Kentucky FHA Important Links

FHA MORTGAGE LIMITS FHA APPROVED CONDOS
FHA MORTGAGEE LETTERS FHA HANDBOOKS
GSA LIST HUDCLIPS
HUD APPROVED CREDIT COUNSELORS HUD HOME PAGE
LDP LIST

Kentucky FHA Mortgage Qualifying Guidelines for 2020

Kentucky FHA Loans

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 2020, 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.

Image result for Employment and Income for a Kentucky FHA Loan

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.

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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.

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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.

It states that in 2020 the Kentucky FHA borrowers with credit scores of 580 or higher are eligible for a 96.5% loan with 3.5% down.

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.

What credit score do I need to qualify for FHA loan?

Each month Ellie Mae, the software company processing more than ⅓ of America’s mortgage loans, publishes an insight report for mortgage trends and standards. One of the things they track is average credit scores. The following is their report for November 2019 which shows what percentage of successful borrowers fall into what credit score ranges.

500 – 549    2.14%
550 – 599    5.20%
600 – 649    23.01%
650 – 699    34.74%
700 – 749    21.88%
750 – 799    10.87%
800+     1.89%

These percentages show that the majority of borrowers who successfully qualify for FHA loans fall into the 600 to 799 range. While it is true that some successfully qualify in the low range of 500 to 599, you have a much better chance of being approved for a loan with good terms and a low down payment if you fall into the higher range.

 

 

 

For your free credit report and analysis call us today at 502-905-3708 or email us at kentuckyloan@gmail.com

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/

 

CREDIT SCORE REQUIREMENTS FOR KENTUCKY 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.

It states that in 2020 the Kentucky FHA borrowers with credit scores of 580 or higher are eligible for a 96.5% loan with 3.5% down.

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.

What credit score do I need to qualify for FHA loan?

Each month Ellie Mae, the software company processing more than ⅓ of America’s mortgage loans, publishes an insight report for mortgage trends and standards. One of the things they track is average credit scores. The following is their report for November 2019 which shows what percentage of successful borrowers fall into what credit score ranges.

500 – 549    2.14%
550 – 599    5.20%
600 – 649    23.01%
650 – 699    34.74%
700 – 749    21.88%
750 – 799    10.87%
800+     1.89%

These percentages show that the majority of borrowers who successfully qualify for FHA loans fall into the 600 to 799 range. While it is true that some successfully qualify in the low range of 500 to 599, you have a much better chance of being approved for a loan with good terms and a low down payment if you fall into the higher range.

 

 

 

For your free credit report and analysis call us today at 502-905-3708 or email us at kentuckyloan@gmail.com

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 VA Mortgage Loan Guidelines for 2020

Kentucky VA Mortgage Loan Guidelines for 2020
Complete List of VA Loan Benefits for Kentucky Veterans

• Eligible homebuyers are not required to have a down payment in most cases – typically cited as the greatest VA loan benefit. Conventional loans generally require a 5 percent down payment, and FHA loans require 3.5 percent.
• No monthly mortgage insurance premiums or PMI to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.

Louisville Kentucky Mortgage Loans

via Kentucky VA Mortgage Loan Guidelines for 2020

Kentucky VA Mortgage Loan Guidelines for 2020

Complete List of VA Loan Benefits for Kentucky Veterans

• Eligible homebuyers are not required to have a down payment in most cases – typically cited as the greatest VA loan benefit. Conventional loans generally require a 5 percent down payment, and FHA loans require 3.5 percent.
• No monthly mortgage insurance premiums or PMI to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.

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2020 Welcome Home Program for Kentucky Home Buyers

2020 KY USDA Rural Housing Income Limits for Kentucky Counties for the Guaranteed RHS Loan

2020 KY USDA Rural Housing Income Limits for Kentucky Counties for the Guaranteed RHS Loan

Louisville Kentucky Mortgage Loans

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