Most Kentucky home buyers will need to gather and document the information upfront so you will have minimal problems once the underwriter issues your final mortgage loan approval . Let’s look at some common underwriting issues that arises on the final mortgage approval

.Earnest Money Deposit- If you put down a deposit on the home you are buying, you will need to get a copy of the bank statement or cancelled check to show the check has cleared your bank account and it will need to show your updated balance after the cancelled check has cleared

.Job Gap–The application will call for you to document your last two years of employment history. If you have had several jobs, or job gaps of more than 6 months, you will need to document why you were off work and why you made the changes in your job. The underwriter is looking for stability in your pay and job. If you were in school recently, then the underwrite may want to see transcripts to verify this

.Credit Inquiries- Are there credit inquiries producing a red flag?

Does the applicant have excessive verified assets that could cover the dollar amount of the large deposit to, in essence, negate the effect of the large deposit?The asset documentation must present sufficient funds of an acceptable source for down payment, closing costs and reserves. If you have had a lot of recent inquiries on your credit report, the underwriter will want an explanation on why the inquiries were made and see if any new debts has opened since the credit report has been issued.Large Deposits in Checking and Savings Accounts- this is a biggie for most people. what constitutes a large deposit requiring additional explanation and documentation. For Kentucky Mortgage Conforming loans: considers a large deposit to be any deposit greater than 25% of the borrower’s qualified monthly income. A letter of explanation and sufficient documentation to support the source of the funds will be required.

For FHA/VA loans: will require a letter of explanation on any large deposit, as determined by the underwriter. Additionally, any deposit of an amount equivalent to 2% or greater of the loan sales price must have its source of funds documented and verified.Most Kentucky Mortgage underwriters now days considers a large deposit to be any deposit greater than 25% of the borrower’s qualified monthly income. Any such deposit not consistent with the borrower’s employment, earnings and/or savings profile must be fully explained and sourced with acceptable documentation in order to be eligible for down payment, closing costs, earnest money deposit and reserves. All funds used for down payment, closing costs, earnest money deposit and reserves must be from an acceptable source and clearly not be a result of undisclosed borrowed funds or incentive from an interested party such as a seller, real estate agent

A large deposit could be a single deposit or multiple deposits over a period of time that in aggregate, result in a large deposit. A review of the borrower’s financial profile must be conducted in order to draw a conclusion that a deposit must be sourced. Items to take into consideration when identifying deposits to be sourced are as follows: o Are the deposits within the normal deposit pattern from an identifiable income source? o Are total monthly deposits consistent with income? Is the ratio of deposits to income reasonable? o Is the borrower’s income direct deposited? Are there multiple deposits over a period of time that in aggregate, result in a large deposit? o Was the account recently opened?All large deposits must be addressed. Regardless of how long ago the earnest money was deposited, it must be verified. A signed letter of explanation from the borrower is required in all circumstances. If the borrower is able to provide a reasonable explanation and sufficient documentation to support the deposit is of an acceptable source, the large deposit may be included in the funds to close.There may be an occasion, when the borrower is able to provide a reasonable explanation, but unable or unwilling to sufficiently document the source of a large deposit and has assets exclusive of the large deposit that are sufficient for closing and reserves. An underwriter, after exercising due diligence to ensure funds are not from an unacceptable source, may deduct the large deposit from the balance of the account, and allow the remaining balance in the account to be used as funds to qualify. In the course of due diligence, the underwriter must be confident the deposit was not as a result of an undisclosed debt or as a result of incentives from a seller, real estate agent or developer. In the event that an asset balance is reduced by the amount of a deposit, the system must be corrected, the reason for the change in the asset amount documented and the AUS decision must be updated.Any deposit that cannot be adequately explained could potentially raise a red flag and result in a declination. Items for consideration when excluding a deposit from the asset balance: o Do the overall assets seem reasonable given the borrower’s financial profile? o Is there other documentation in the file (such as tax returns) that may support additional income or asset sources? o Is the deposit possibly a loan

GIFT FUNDS -– Gift funds are acceptable from a close relative, a close friend with a clearly defined interest in the borrower, the borrower’s employer or a non-profit organization. Entire cash investment can be gifted by relative, church municipality, non-profit agency. Transfer of funds must be documented (no exceptions). Underwriters will require the donor’s account statement and proof of withdrawal. Provide copy of fully executed gift letter (FHA applicant must also sign). Provide copy of cancelled check from donor or copy of donor’s withdrawal slip and matching deposit into applicant’s bank account or deposit slip; or Provide copy of cashier/treasurer/certified check to be given to closing agent. Amount must be denoted on HUD-1. If funds wired at closing, provide copy of wire transfer or copy of the check. This will need to take place prior to the funding of the loan. Only family members may provide a gift of equity.

CASH ON HAND--Money must be deposited and verified either through VOD or title company escrow letter AND the applicant must provide satisfactory evidence of the ability to have saved this money. If a VOD is used, a 1 month bank statement supporting the VOD is required. (The applicant must also provide a letter explaining how the money was saved and the length of time it took to save it.) May not be used as a source of assets for gift transactions

.Note: All other factors being equal, those individuals with checking and/or savings accounts are less likely to save money at home than an individual with no history of such accounts.If you would like more information or just have questions about qualifying for a Kentucky Mortgage in 2013, be it FHA, VA,

Joel Lobb (NMLS#57916)Senior Loan Officer

502-905-3708 cell502-813-2795 fax

jlobb@keyfinllc.com

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

http://mylouisvillekentuckymortgage.com

Kentucky Mortgage Underwriting Guidelines updated for 2013 (kentuckyfirsttimehomebuyer.com)
2013 Louisville Kentucky Mortgage programs (louisvillekentuckymortgagerates.com)
Ky FHA Guidelines for mortgagee and Bankruptcy Foreclosures (trulia.com)
Kentucky First Time Home Buyer (Louisville, Ky) (kentuckyfirsttimehomebuyer.com)
Kentucky First Time Home Buyer Loan Programs (mylouisvillekentuckymortgage.com)
Kentucky USDA credit score and mortgage requirements for 2013 Credit Scores and the Kentucky USDA Rural Development Loan Progra (trulia.com)
Louisville Kentucky mortgage rates (louisvillekymortgage.net)
Kentucky First Time Home Buyer Grants and Loan Programs (kentuckyfirsttimehomebuyer.com)
No Down Payment Mortgage Loan Louisville Ky (kentuckyfirsttimehomebuyer.com)
Home Loan Home (louisvillekentuckyvamortgage.blogspot.com)

Written by Louisville Kentucky Mortgage

June 19, 2013 at 2:06 am

Kentucky Mortgage Underwriting Guidelines updated for 2013

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Kentucky Mortgage Underwriting Guidelines updated for 2013

Applying for a Kentucky Mortgage in 2013 has changed a lot since the go go years of the mid 2000′s. Most Kentucky home buyers will need to gather and document the information upfront so you will have minimal problems once the underwriter issues your final mortgage loan approval . Let’s look at some common underwriting issues that arises on the final mortgage approval.

Earnest Money Deposit– If you put down a deposit on the home you are buying, you will need to get a copy of the bank statement or cancelled check to show the check has cleared your bank account and it will need to show your updated balance after the cancelled check has cleared.

Job Gap—The application will call for you to document your last two years of employment history. If you have had several jobs, or job gaps of more than 6 months, you will need to document why you were off work and why you made the changes in your job. The underwriter is looking for stability in your pay and job. If you were in school recently, then the underwrite may want to see transcripts to verify this.

Credit Inquiries- Are there credit inquiries producing a red flag? • Does the applicant have excessive verified assets that could cover the dollar amount of the large deposit to, in essence, negate the effect of the large deposit?
The asset documentation must present sufficient funds of an acceptable source for down payment, closing costs and reserves. If you have had a lot of recent inquiries on your credit report, the underwriter will want an explanation on why the inquiries were made and see if any new debts has opened since the credit report has been issued.

Large Deposits in Checking and Savings Accounts– this is a biggie for most people. what constitutes a large deposit requiring additional explanation and documentation. For Kentucky Mortgage Conforming loans: considers a large deposit to be any deposit greater than 25% of the borrower’s qualified monthly income. A letter of explanation and sufficient documentation to support the source of the funds will be required. For FHA/VA loans: will require a letter of explanation on any large deposit, as determined by the underwriter. Additionally, any deposit of an amount equivalent to 2% or greater of the loan sales price must have its source of funds documented and verified.

Most Kentucky Mortgage underwriters now days considers a large deposit to be any deposit greater than 25% of the borrower’s qualified monthly income. Any such deposit not consistent with the borrower’s employment, earnings and/or savings profile must be fully explained and sourced with acceptable documentation in order to be eligible for down payment, closing costs, earnest money deposit and reserves. All funds used for down payment, closing costs, earnest money deposit and reserves must be from an acceptable source and clearly not be a result of undisclosed borrowed funds or incentive from an interested party such as a seller, real estate agent or developer.
A large deposit could be a single deposit or multiple deposits over a period of time that in aggregate, result in a large deposit. A review of the borrower’s financial profile must be conducted in order to draw a conclusion that a deposit must be sourced. Items to take into consideration when identifying deposits to be sourced are as follows: • Are the deposits within the normal deposit pattern from an identifiable income source? • Are total monthly deposits consistent with income? • Is the ratio of deposits to income reasonable? • Is the borrower’s income direct deposited? • Are there multiple deposits over a period of time that in aggregate, result in a large deposit? • Was the account recently opened?
All large deposits must be addressed. Regardless of how long ago the earnest money was deposited, it must be verified. A signed letter of explanation from the borrower is required in all circumstances. If the borrower is able to provide a reasonable explanation and sufficient documentation to support the deposit is of an acceptable source, the large deposit may be included in the funds to close.
There may be an occasion, when the borrower is able to provide a reasonable explanation, but unable or unwilling to sufficiently document the source of a large deposit and has assets exclusive of the large deposit that are sufficient for closing and reserves. An underwriter, after exercising due diligence to ensure funds are not from an unacceptable source, may deduct the large deposit from the balance of the account, and allow the remaining balance in the account to be used as funds to qualify. In the course of due diligence, the underwriter must be confident the deposit was not as a result of an undisclosed debt or as a result of incentives from a seller, real estate agent or developer. In the event that an asset balance is reduced by the amount of a deposit, the system must be corrected, the reason for the change in the asset amount documented and the AUS decision must be updated.
Any deposit that cannot be adequately explained could potentially raise a red flag and result in a declination. Items for consideration when excluding a deposit from the asset balance: • Do the overall assets seem reasonable given the borrower’s financial profile? • Is there other documentation in the file (such as tax returns) that may support additional income or asset sources? • Is the deposit possibly a loan?

GIFT FUNDS —- Gift funds are acceptable from a close relative, a close friend with a clearly defined interest in the borrower, the borrower’s employer or a non-profit organization. Entire cash investment can be gifted by relative, church municipality, non-profit agency. Transfer of funds must be documented (no exceptions). Underwriters will require the donor’s account statement and proof of withdrawal. Provide copy of fully executed gift letter (FHA applicant must also sign). Provide copy of cancelled check from donor or copy of donor’s withdrawal slip and matching deposit into applicant’s bank account or deposit slip; or Provide copy of cashier/treasurer/certified check to be given to closing agent. Amount must be denoted on HUD-1. If funds wired at closing, provide copy of wire transfer or copy of the check. This will need to take place prior to the funding of the loan. Only family members may provide a gift of equity.

CASH ON HAND—Money must be deposited and verified either through VOD or title company escrow letter AND the applicant must provide satisfactory evidence of the ability to have saved this money. If a VOD is used, a 1 month bank statement supporting the VOD is required. (The applicant must also provide a letter explaining how the money was saved and the length of time it took to save it.) May not be used as a source of assets for gift transactions.
Note: All other factors being equal, those individuals with checking and/or savings accounts are less likely to save money at home than an individual with no history of such accounts.

If you would like more information or just have questions about qualifying for a Kentucky Mortgage in 2013, be it FHA, VA, Fannie Mae, USDA, just contact me below for your mortgage needs.

First Time Homebuyers in Louisville KY buy-a-home 1st time home buyer louisville ky buyer buying your first home louisville first buying your first home louisville first first time home buyer louisville ky first time home buyer louisville ky home how to buy your first house louisville ky first time time home buyer louisville ky homes for sale mortgages for first time buyers

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*

http://mylouisvillekentuckymortgage.com

Kentucky FHA Mortgage Changes for 2013 (trulia.com)
Kentucky Mortgage Underwriting Guidelines updated for 2013 (kentuckyfirsttimehomebuyer.com)
Kentucky Mortgage Underwriting Guidelines updated for 2013 (kentuckyusdaloan.com)
Kentucky VA Loan Overview for 2013 (kentuckyvaloan.com)
Kentucky Housing first mortgage loans guidelines for 2013 (louisvillemortgageguide.com)
Kentucky Housing first mortgage loans guidelines for 2013 (kentuckyfirsttimehomebuyer.com)
Compensating factors may affect the loan decision for a Kentucky VA Mortgage Denial. (kentuckyvaloan.com)
Kentucky FHA Mortgage Guideline Changes April, 2013 (louisvillemortgageguide.com)
Kentucky First Time Home Buyer Loan Programs (mylouisvillekentuckymortgage.com)
Kentucky FHA Mortgage Guideline Changes for 2013 Lawrenceburg, KY and Anderson County (trulia.com)

Written by Louisville Kentucky Mortgage

June 10, 2013 at 11:33 am

No Down Payment Mortgage Loan Louisville Ky

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No Down Payment Mortgage Loan Louisville Ky

via #1 No Down Payment Loan Louisville Ky.

No Down Payment Mortgage Loan Louisville Ky

Zero Down Loans

First Time Home Buyer Louisville Kentucky Mortgage Programs

All Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest. The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding. To qualify, you must meet KHC’s regular income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history. Some Kentucky Housing loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional Insured by approved mortgage insurance company. Minimum credit score of 660 or better. Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA Insured by the Federal Housing Administration. Down payments as little as 3.5 percent. Can use DAP for 3.5 percent down payment requirement. Upfront and monthly mortgage insurance. Minimum credit score of 640.

VA Guaranteed by the Veterans Administration for qualified military veterans. No down payment if the property appraises for the sale price or greater. Credit underwriting is flexible. Minimum credit score of 620. No monthly mortgage insurance payments.

RHS Guaranteed by Rural Housing Services (RHS). Home must be located in a rural area as defined by RHS. No down payment if the property appraises for the sale price or greater. Minimum credit score of 640. No monthly mortgage insurance payments.

Mortgage Credit Certificates (MCC) A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.

First Time Home Buyer

Regular Down payment Assistance Program (DAP)

Programs in Kentucky

Complete First Time Home Buyer Programs Available in Kentucky.

The state agency created by the legislature in Kentucky to offer first time home buyer programs is the Kentucky Housing Corporation. Here is a summary of the current first time home buyer programs that are offered:

Regular Down payment Assistance Program (DAP)

Assistance up to $5,000.

Available to all KHC first mortgage loan recipients.

Repaid over 7 or 10 years at a low fixed interest rate (6.0%)

HOME-DAP

Assistance up to $4,500

No monthly repayment; forgiven over five years.

Existing homes only.

Borrowers must meet HOME-income guidelines.

HOME Special Program

Assistance up to $10,000

No monthly repayment; forgiven over five years.

Existing homes only.

Borrowers must meet HOME-income guidelines.

Purchase price may not exceed $200,000.

Eligible borrowers include:

Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).

Households where at least one of the home buyers is age 62 or older.

HOME Family Program

Assistance up to $10,000

No monthly repayment; forgiven over five years.

Existing homes only.

Borrowers must meet HOME-income guidelines.

Purchase price may not exceed $200,000.

Eligible borrowers include:

Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

Special First Mortgage Loan Programs New Construction Program for Single-Parent, Disabled and Elderly Households offers loans for newly constructed houses at interest rates from 1 to 6 percent. These limited funds are available, usually in July, on a first-come, first-served basis. Guidelines Interest rate determined by the families’ ability to repay the loan. For new homes with a purchase price of $115,000 or less. Eligible borrowers: Single parents (at least one dependent under the age of 18 must live in the home.) Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.). Households where at least one of the home buyers is age 62 or older. Income guidelines: $28,000 for a household of 1 or 2 people; or $33,000 for a household of 3 or more people. Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance. Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.
First Time Home Buyer Louisville Kentucky Mortgage Programs

Call us today for a free pre-approval at 502-905-3708 or email your mortgage questions to kentuckyloan@gmail.com

We are located at 107 South Husrtbourne Parkway Louisville Ky 40222

Kentucky USDA, FHA, VA, and Refinance Guidelines for 2013 (trulia.com)
Louisville Kentucky mortgage rates (louisvillekymortgage.net)
2013 Louisville Kentucky Mortgage programs (louisvillekentuckymortgagerates.com)
Louisville Kentucky Mortgage Rates (louisvillekentuckymortgagerates.com)
Kentucky First Time Home Buyer (Louisville, Ky) (kentuckyfirsttimehomebuyer.com)
Kentucky VA Loans (kentuckyvaloan.com)
Louisville Kentucky FHA Streamline Mortgage Refinance Progra, (louisvillemortgageguide.com)
Louisville Kentucky mortgage rates (louisvillekymortgage.net)
Louisville Kentucky Mortgage Rates (louisvillekentuckymortgagerates.com)
Louisville Kentucky FHA Mortgage Insurance Changes June 2013 (mylouisvillekentuckymortgage.com)

Written by Louisville Kentucky Mortgage

June 8, 2013 at 10:40 pm

Kentucky Mortgage Refinance Questions to ask: Kentucky Housing VA FHA KHC USDA and FNMA

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Six questions to ask before refinancing your mortgage Kentucky Housing VA FHA KHC USDA and FNMA

Kentucky Mortgage Refinance Questions to ask Kentucky Housing VA FHA KHC USDA and FNMA

Are you thinking about refinancing your kentucky mortgage? Are you not sure how much money you’ll save if you do – or if you’ll even qualify for a new kentucky mortgage loan? Kentucky Housing VA FHA KHC USDA and FNMA

Here are six questions to ask yourself before you refinance.

What are the fees?

There are many standard fees associated with a mortgage refinancing – lender fees, title fees, inspection fees, insurance fees, etc. – that you should always know before deciding to refinance.

However, as Bankrate.com reports there are also other, newer fees to look out for – so-called “risk adjustment” fees from Fannie Mae and Freddie Mac. These fees – which can be 2 percent of the loan’s value – will be higher for borrowers who don’t have perfect credit scores, and for those who have less than 20 percent equity in their homes. These fees can also be converted to a higher interest rate. This may be why you can seem to get the advertised rates. This is something you should ask your Loan Officer about.

Knowing all the fees associated with your refinancing will help you determine if it makes mathematical sense to refinance.

How good is your credit?

The better your credit, the better chance you have at getting the best mortgage rate. Keep in mind that only those with excellent credit scores – usually around 760 or better – get the best rates.

The lower your credit score, the higher your rate will likely be – if you’re approved by the lender at all. Tighter lending standards in the wake of the credit crisis have left many people with bad credit scores unable to refinance.

How much equity do you have in your home?

One of the key things a lender wants to see before approving a borrower for refinancing is for the borrower to have at least 20 percent equity in his or her home.

If you’re not sure what percent equity you own, you can use a loan-to-value calculator to figure it out. Quite simply just divide you current loan balance into your estimated house value.

If you have very little equity – or even if you are underwater on your home due to falling home values – you may still be able to refinance your mortgage under the government’s Making Home Affordable program. Visit the program’s website to see if you qualify.

What type of mortgage should you get?

Because rates are at historic lows, some people who got 30-year mortgages a few years ago may be able to halve the length of their loan (and thus drastically cut the overall interest paid on the loan) without paying much more a month.

Compare the monthly payments between a 15-year and 30-year mortgage to see how much you’d owe – and how much you’d save over the life of the loan.

Or, if you’re planning to be in a home for only 3 to 7 years, an adjustable-rate mortgage may be for you. Read about different types of mortgages, and see how much your payments would be with each one, with this calculator.

How much will you save a month?

Use a mortgage refinance calculator to see if refinancing make financial sense for you.

How much you save – and how much you pay in fees – are key questions in determining if it makes financial sense to refinance. For example, if you are going to be paying $6,000 for all the fees related to refinancing a 30-year fixed-rate mortgage, and you’ll be saving $200 a month in payments with a new mortgage, then you’ll “break even” 30 months into the new loan, meaning that it only makes sense to refinance if you’re keeping the new loan for more than 2 1/2 years.

Do you have all your papers in order?

Because of the strict lending standards these days, lenders will want to scrutinize your financial situation before you are approved for a refinance.

Before approaching a lender, you’ll want to pull together the following paperwork:

• Copies of your past two years’ tax returns

• Copies of your past two years’ W-2s

• Copies of your most recent paystubs

• Copies of your most recent checking, savings, and investment statements.

Kentucky Mortgage Refinance Questions to ask

Kentucky Housing VA FHA KHC USDA and FNMA

Louisville Kentucky FHA Streamline Mortgage Refinance Progra, (louisvillemortgageguide.com)
Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Kentucky USDA Rural Housing Loans : No closing cos… (mylouisvillekentuckymortgage.com)
Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Louisville Ky Mortgage Lender FHA/VA KHC USDA Kent… (mylouisvillekentuckymortgage.com)
Kentucky First Time Home Buyer Grants and Loan Programs (kentuckyfirsttimehomebuyer.com)
Louisville Kentucky mortgage rates (louisvillekymortgage.net)
4 Things Every Borrower Needs to Get Approved for a Mortgage or Home Loan In Kentucky (mylouisvillekentuckymortgage.com)
Louisville Kentucky Mortgage Rates (louisvillekentuckymortgagerates.com)
Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Kentucky FHA, VA, USDA, Jumbo, Conventional Fannie… (louisvillekentuckyvamortgage.blogspot.com)
Louisville VA, FHA, USDA, KHC , Fannie Mae Mortgage Guide: Louisville Ky Mortgage Lender FHA/VA KHC USDA Kent… (louisvillekentuckyvamortgage.blogspot.com)

Written by Louisville Kentucky Mortgage

June 6, 2013 at 3:50 am

Posted in Kentucky Mortgage Refinance Questions to ask

Tagged with Fannie Mae, FHA insured loan, Kentucky, Loan, Loan officer, Louisville Kentucky, Mortgage loan, Refinancing, United States Department of Agriculture

Realty Times – Get a HUD Home for $100 Down Get a HUD Home for $100 Down | Kentucky First Time Home Buyer Mortgage Loan

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Realty Times – Get a HUD Home for $100 Down.

via Realty Times – Get a HUD Home for $100 Down.

Get a HUD Home for $100 Down | Kentucky First Time Home Buyer Mortgage Loan

HUD Homes are Foreclosures owned by the Department of Housing and Urban Development (HUD) that were previously financed with FHA financing.

While you may use any type of financing or pay cash, there are specific perks in using FHA financing when buying a HUD home as your primary residence.

HUD Homes can be Single Family Homes, Multi-Units (up to 4), Condominiums or Townhomes.

You can browse available inventory at the HUD Home Store.

Unlike most homes for sale, HUD Homes are sold through bids placed by HUD approved Realtors on its website.

Some of the most common misconceptions with this niche product are:

I cannot ask HUD to pay part or all of my closing cost.

WRONG. HUD does allow for closing cost concessions. However, as with any other real estate transaction, you may make your offer less attractive in a bidding situation.

I have to use FHA financing.

WRONG. While there are incentives for FHA buyers and thus owner occupant buyers (such as early bidding), you are not required to use FHA financing. You may use conventional financing or pay cash.

I can use my Realtor of choice.

WRONG. As in any other real estate transactions, HUD allows for a listing and selling realtor. However, both have to be approved/ registered with HUD. There is a comprehensive list on HUD’s website where you can check for your Realtor’s name.

I cannot inspect the home.

WRONG. While every HUD home comes with a Property Inspection Report, given to you once you win the bid and thus are buying the house, you are able to still inspect the home on your own or with alicensed home inspector.

I do want to point out one downside:

As with any government owned foreclosures (FannieMae/FreddieMac), the seller is congressionally exempt from paying sales tax. Thus, you will pay your documentary stamps/state tax on the mortgage (35 cents per $100), your intangible tax/county tax (20 cents on $100) plus the sellers documentary stamps/state tax on the Deed (70 cents per $100).

Regardless of the financing tool you intend to use, HUD homes are worth exploring.

Legal Disclaimer

This web site 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.

Louisville Kentucky mortgage rates (louisvillekymortgage.net)
HUD Homes for Sale in Wimauma FL via New ARME Realty.com Buyer Broker… (prweb.com)
Different Types of Mortgage Loans available for 2013 Kentucky Home buyers and homeowners (louisvillekymortgage.net)
Kentucky First Time Home Buyer (Louisville, Ky) (kentuckyfirsttimehomebuyer.com)
2013 Louisville Kentucky Mortgage programs (louisvillekentuckymortgagerates.com)
Fhfa Authorizes Fannie Mae and Freddie Mac to Expand Home Affordable Refinance Program to 125 Percent Loan-to-value (kentuckyfirsttimehomebuyer.com)
FHA requirement changes to mortgage insurance, higher credit score needed (kentuckyfirsttimehomebuyer.com)
Kentucky VA Loan Overview for 2013 (kentuckyvaloan.com)
Kentucky Housing Corporation (kentuckyfirsttimehomebuyer.com)
Kentucky First Time Home Buyer Grants and Loan Programs (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

May 26, 2013 at 10:44 pm

FHFA AUTHORIZES FANNIE MAE AND FREDDIE MAC TO EXPAND HOME AFFORDABLE REFINANCE PROGRAM TO 125 PERCENT LOAN-TO-VALUE

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Reblogged from First Home Guy:

This is great news for most American who did 100% mortgages at the top of the real estate market and now they owe more than their house is worth. This will give all those people who qualify a chance to refinance into today's low rates giving them a lower house payment.

If your loan is held by Fannie Mae or…

4 Things Every Borrower Needs to Get Approved for a Mortgage Loan In Kentucky

-FHA, VA, USDA and Rural Housing and KHC Conventional Mortgage

4 Things Every Borrower Needs to Get Approved for a Mortgage Loan In Kentucky-FHA VA KHC Conventional Mortgage I wish it were that easy. There are 4 basic things that a borrower needs to show a lender in order to get approved for a mortgage. Each category has so many what ifs and sub plots that each box can read as it's own novel. In other words, each category has so many variables that can affect what it takes to get approved, but without further adieu here are the four categories in no particular order as each without any of these items, you're pretty much dead in the water: Income: You need income. You need to be able to afford the home. Without it, forget it! But what is acceptable income? Basically, it all depends on the type of loan that a borrower applies for. Jumbo, V.A., USDA, FHA, Conventional, Super Jumbo? Let's just say that there are two ratios:First Ratio - The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let's just say that if your ratio is 33% or less, generally, across the board, you're safe.Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards, student loans, personal loans, child support, alimony....basically any consistent outgoing debt that you're paying on. Again, if you're paying less than 43% of your gross monthly income to all of the debts, plus your proposed housing payment, then......generally, you're safe. You can go a lot higher in this area, but there are a lot of caveats when increasing your back ratio.What qualifies as income? Basically, it's income that has at least a proven, two year history of being received and pretty high assurances that the income is likely to continue for at least three years. What's not acceptable?????? Cash income, short term income and income that's not likely to continue. Assets Assets , for the most part this is fairly simple. Do you have enough assets to put the money forth to qualify for the downpayment that the particular program asks for. USDA says that there can be no money down. FHA, for now, has a 3.5% down payment. Some loans require 20% down. These assets need to be validated through bank accounts and sometimes gifts. Can you borrower the down payment? Sometimes. Generally if you're borrowing a secured loan against a secured asset you can use that. But rarely can cash be used as an asset. TALK TO YOUR LOAN OFFICER FIRST when discussing what's acceptable? Credit Whewwwwwwwwwwwwwwwwwwwwwwwwwwww. This can be the bane to every borrower, every loan officer and every lender......and yes, to every realtor. How many times has a borrower said my credit's good, only to find out that it's not nearly as good as a borrower thinks or nearly as good as the borrower needs. Big stuff for sure. 620 is the bottom score (again with few exceptions) that lenders will permit. Below a 620, then you're in a world of hurt. Even at 620, people consider you a higher risk that other folks and are going to penalize you or your borrower with a more expensive loan. 700 is when you really start to get in the "as a lender we love you" credit score. 720 is even better. Watch your credit!!!!! Check out my post: Appraisal In many ways this is the easiest box. Why????? Generally, there's nothing you can do to affect this. Bottom line here is....."is the value of the house at least the value of what you're paying for it?" If not, then not good things start to happen. Generally you'll find less issues with values on purchase transactions, because, in theory, the realtor has done an accurate job of valuing the house prior to taking the listing. The big issue comes in refinancing. In purchase transactions, the value is determined as the Lower of the value or the contract price!!!That means that if you buy a $1,000,000 home for $100,000, the value is established at $100,000. Conversely, if you buy a $200,000 home and the value comes in at $180,000 during the appraisal, then the value is established at $180,000. Big issues....Talk to your loan officer.For each one of these boxes, there are over 1,000 things that can effect if a borrower has reached the threshold to complete that box. Soooooooooooo.....talk to a great loan officer. There are so many loan officers that don't know what they're doing. But, conversely, there's a lot of great ones as well. Your loan is so important! Get a great lender so that you know, for sure, that the loan you want, can be closed on!Call us today for a free pre approval and compare our rates and service to anyone in Kentucky Free credit report and Free pre-approvals within 1 hour.

Kentucky Mortgage Loan Approval Credit Requirements for 2013

.Call me today at 502-905-3708 or email me at kentuckyloan@gmail.com-NMLS#57916

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Written by Louisville Kentucky Mortgage

May 26, 2013 at 7:01 am

Posted in Uncategorized

Tagged with Fannie Mae, Federal Housing Administration, Kentucky, Loan, Loan officer, Mortgage loan, United States Department of Agriculture, USDA

Four Rules For a Home Run Refinance | Equifax Finance Blog

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Four Rules For a Home Run Refinance | Equifax Finance Blog.

1. Lower the interest rate

With record-low interest rates coming out every week, chances are you can do better than the 11 percent, 7 percent, or even 5 percent interest rate you have now. Credit is a major factor in getting the lowest interest rates, so be sure to check your credit report and score before you start talking to lenders. If you’ve paid your mortgage on time and kept the rest of your finances in order, you may actually have a better credit score than you did years ago.

2. Lower your payments

Ideally, you want to pay less each month, and there are two ways to do this. The best way is by lowering your interest rate. The other way is by extending your mortgage—but don’t do that. If you took out a 30-year mortgage initially, taking out another 30-year mortgage is a bad idea. While lowering your monthly payments will give you more breathing room, it’s not worth the extra cost you’ll pay over the long term.

3. Reduce the length of the loan

If you can secure a low enough interest rate, you can reduce both the length of your loan and the cost of your monthly payments—and the savings can really add up. For example, if you took out a $250,000 refinance loan at 5 percent for 30 years, you’ll pay almost $230,000 in interest over the life of the loan. But shave five years off that same loan and you’ll save nearly $45,000.

4. Manage the costs of refinance

If you’ve bought a house, then you know that there are plenty of costs associated with securing a mortgage. The same goes for refinancing. On top of administrative fees, your home must also be appraised, inspected, and assessed. You may have to pay a penalty for paying off your mortgage early, so be sure to check the details of your current mortgage agreement before moving forward with any plans. Make sure you can pay these costs off within six months to a year, and try to keep the costs to under $1,000.

Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and at the Home Equity blog for CBS MoneyWatch.

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Written by Louisville Kentucky Mortgage

May 12, 2013 at 4:11 pm

Different Types of Mortgage Loans available for 2013 Kentucky Home buyers and homeowners

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All loans are subject to credit approval.

Kentucky VA High Balance FICO Requirements

Minimum credit scores for Kentucky VA loans greater than $417,000 have been lowered to the following

Purchase/Rate-Term/IRRRL – Loan amount ≤ $1,000,000 : 640

Loan amount > $1,000,000 : 700

Cash Out - Loan amount ≤ $700,000 : 640

Loan amount $700,001 – $1,000,000 : 660

Loan amount > $1,000,000 : 700

Conforming FICO Requirements

Conforming loans, both Standard and High Balance. for these products as long as they meet our minimum credit scores as follows

Loan amount > $417,000 : 660

Loan amount ≤ $417,000 with MI : 660

Loan amount ≤ $417,000 w/o MI : 620

This only applies to regular Conforming loans and is not applicable to Homepath, DU Refi Plus, or any other Conforming program. All other requirements, including Maximum LTV, for these products will remain the same. Non-LTV based credit requirements still apply.

Kentucky FHA Condo Requirements

Kentucky FHA condo project approval is not required under the following circumstances

FHA/HUD Real Estate Owned (REO) loan transactions that will be FHA insured
FHA Streamlines without Appraisal where condo project approval has expired or been withdrawn

Condo projects which are not approved must still carry and provide a copy of all required forms of insurance. FHA Case numbers ordered for these types of loans should still include the FHA condo project assigned ID number, if applicable.

Kentucky FHA Previous Short Sale

Borrowers which have undergone a previous Short Sale are eligible for a new loan with no Derogatory Credit waiting period if they meet the following requirements

Prior mortgage must have been current at the time of Short Sale with no mortgage lates for the 12 months preceding the sale
No lates on installment debt payments for the 12 months preceding the Short Sale

The 3 year waiting period still applies for all previous Short Sales not meeting these requirements.

Previously Modified Loans

Refinance of any loan which has been previously modified is subject to the terms of that modification. Any requirements in the modification, including inability to refinance or length of time before eligibility to refinance, must be followed in addition to the below product specific rules.

For an FHA Rate-Term on a previously modified loan, the following requirements must be met:

If the loan modification was made through the Home Affordable Modification Program (HAMP), the refinance may close as soon as 1 month passes from the date the modification was made permanent.
If the modification was not done through HAMP, the borrower must have made 3 timely consecutive monthly payments since the modification was finalized and the modified mortgage must be current.
FHA must approve the modification refinance through TOTAL Scorecard.

For a Conforming Rate-Term on a previously modified loan, the following requirements must be met:

The borrower must have made 24 timely consecutive monthly payments on the restructured loan before closing on the new refinance.
The borrower must be current on their modified mortgage

For a Conforming DU Refi Plus on a previously modified loan, the following requirements must be met:

The borrower benefit provision for DU Refi Plus must be met using the current modified terms of the current mortgage, not the original terms.
The borrower must meet standard mortgage delinquency requirements.
The property and mortgage must qualify for the DU Refi Plus program as per DU.

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Written by Louisville Kentucky Mortgage

May 10, 2013 at 11:53 am

6 reasons why down payment assistance matters

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6 reasons why down payment assistance matters.

via 6 reasons why down payment assistance matters.

Preventing Your Closing From Being Delayed or Cancelled

In the period of time between writing an offer and getting to the closing table, there are more things that can occur to derail the purchase than you could possibly imagine!

Most buyers think that once they are pre-approved they are good to go and nothing bad can happen. Unfortunately, a pre-approval is not a guarantee that your loan will be approved or close on time. When you have an accepted contract, the lender will create a new application and collect updated documents. Even after this application, the lender will continue to monitor your credit and income. And as closing day approaches they may obtain additional updated financial documents. If there are changes, your closing could be delayed or cancelled.

Lenders are now required to tract “changed circumstances” between application and closing. If anything changes, at the very least, it may delay the closing while the loan goes back through underwriting. The rules are not new but are being enforced more vigorously due to quality loan initiatives.

The following are areas that require special attention by you to help prevent your closing from being delayed or cancelled.

TAX TRANSCRIPTS – The lender might not ask you for your tax returns but after you have an accepted purchase contract, they will request transcripts directly from the IRS. If you have a side business and take a loss, the loss is deducted from your employment income. Or if you take business deductions, the amount deducted is subtracted from your income. This will change your debt to income ratio and may put you outside acceptable numbers. When you are in the pre-approval process, tell your lender about any employment deductions or business loss you take.

BANK STATEMENTS – As the closing date approaches your most current bank statements will be analyzed for several reasons.
1. Lenders are now looking to see if you have bank fees for non-sufficient funds (NSF). Example: If you have more than 1 or 2 isolated NSF incidents over a 60 day period your approval will be downgraded and you may no longer qualify or it may cause a delay while additional paperwork is collected and analyzed. An explanation from you for the NSFs will be part of the review.
2. Lenders are required to analyze all non-payroll deposits. Be prepared to explain and document where every non-payroll deposit came from. If you are unable to supply documentation, your loan may not close or the closing will be delayed while you try to obtain satisfactory documentation.
3. Lenders will check your balance shortly before closing to make sure you have sufficient funds for closings. Sufficient funds might even be more than you will actually need at the closing table, especially if your loan requires that you have reserves. Keep as much money as possible in your checking and savings accounts. Stocking up on supplies for the new home can wait until after closing! And now isn’t the time to pay down or off debt…wait until after the closing.

NEW AUTO LOANS OR CREDIT CARDS – Do not open new debt after the preapproval or application. If you take out new debt, it changes the debt to income ratio. If the ratio of debt payments to income is too high, you could be turned down for a mortgage. Even if you can afford the new debt, when the lender finds out, it is considered a changed circumstance and it will require the loan to be re-underwritten. New debt can also lower your credit score. If it does, it could cancel your approval or cause your interest rate or costs to be higher.

CHARGING UP CREDIT CARDS – Charging up credit cards with thousands of dollars worth of appliances or furniture is another way to sabotage your closing. Lenders use your minimum monthly credit card payment when determining your debt to income ratio. If the minimum payment goes up and the ratio is too high you could be turned down for a mortgage. At the very least, it is considered a changed circumstance and will send your loan back to underwriting. Wait until after the closing before buying furniture, a refrigerator or a lawn mower on credit.

CHANGING JOBS – Changing jobs is another good way to derail a mortgage before closing. Even if you are in the same field and make more money, it could delay the closing because your circumstances changed and the loan will have to be re-underwritten. Other potential deal breakers includes staying with current employer but switching from a salaried position to one where primary income comes from commission or bonuses. And do not quit your job to start your own company!

In short, do nothing that negatively impacts your ability to qualify for your loan or that will initiate a new round of paperwork. The mortgage application process is not based on a single snap shot of your financial life at any given time. It is an on-going process that can take into account everything you do right up until the day of closing.

–

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*

http://mylouisvillekentuckymortgage.com

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Written by Louisville Kentucky Mortgage

May 9, 2013 at 5:50 pm

Kentucky First Time Home Buyer Grants and Loan Programs

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Kentucky First Time Home Buyer Grants and Loan Programs

Kentucky first time home buyer grants and loan programs – The Kentucky Housing Corporation (KHC) offers programs for first time home buyers.

The KHC offers home ownership education classes as well as low interest rate, 30 year home loans/mortgages through participating lenders. Many of the programs are offered to and non-first time buyers as well.

The KHC also offers downpayment and closing cost assistance to qualified buyers. The closing costs assistance ranges from $4,500 to $10,000, depending on the qualifications of the buyer(s).

To qualify for these programs, the KHC has buyer income limits as well as limits to the purchase price of the home.

Check out the KHC website to obtain more information about these programs.

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Written by Louisville Kentucky Mortgage

May 5, 2013 at 1:07 am

Posted in Down payment Assistance and Grants, Down Payment Assistance Program - Housing - Louisville Ky, Down Payment Assistance Programs in Kentucky, FHA Loans Kentucky Housing First time home buyer, First Time Home Buyer in Kentucky Zero Down, First Time Home Buyer Loans--Kentucky, First Time home Buyer PRgoams, First Time Home Buyer Programs Louisville Kentucky, home ownership program louisville ky, KENTUCKY HOUSING CORPORATION, Kentucky Housing Mortgage Rates Louisville Kentucky, Kentucky Mortgage Guidelines updated 2011, Kentucky Mortgage Rates and Home Loan Options, Kentucky Mortgage Rates FHA VA KHC, KHC 2011 Programs, KHC 2011 updated Guidelines, KHC Down payment Assistance Program Kentucky Housing, KHC Mortgage Rates / Kentucky Housing Rates

Tagged with Buyer, Closing costs, Credit and Collection, Credit score, Debt, Down payment, Downpayment, Fannie Mae, FAQs Help and Tutorials, Federal Housing Administration, Federal takeover of Fannie Mae and Freddie Mac, FHA insured loan, First-time buyer, Home equity, Interest rate, Kentucky, Kentucky Housing Corporation, kentucky usda lenders, khc, KHC’s (Kentucky Housing ) First Mortgage Government, Loan, Louisville Kentucky, Louisville Kentucky First Time Home Buyer, Mortgage loan, Refinancing, United States Department of Agriculture, United States Department of Housing and Urban Development, USDA, VA loan, Zero down home loans

Kentucky Mortgages Rates for FHA, VA, USDA, Conventional, Jumbo Mortgage Loans

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Current Kentucky mortgage rates today

: Over 500 loans closed in Kentucky and still going strong. Call us today for your personal, free loan quote. We are a local company that is here to serve your home loan needs. 502-905-3708 or kentuckyloan@gmail.com

Free Rate Quotes and Pre-Approvals Same Day!

Mortgage Product Mortgage Rates (APR)

15 Year Fixed Conventional 2.875% 3.279% apr

30 Year Fixed Conventional 3.625% 3.787% apr

30 Year Fixed Kentucky FHA 3.250% 4.114% apr

30 Year Fixed Kentucky USDA 3.250% 3.774% apr

30 year Fixed Kentucky VA 3.250% 3.671% apr

Mortgage Rates can change without notice.

Assumptions include a 640 or higher credit score for FHA, USDA, KHC, and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required for a Kentucky Mortgage Only.

A 720 credit score or higher is assumed for a Kentucky Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Kentucky Conventional loans are assumed at 80% ltv or less.

The displayed Annual Percentage Rates (APRs) reflect the interest rates, total points, and additional estimated pre-paid finance charges for the loan products shown, but do not include other closing costs.
The approximate cost of prepaid finance charges does not constitute and is not a substitute for the Good Faith Estimate of Closing Costs (GFE) that you will receive once you apply for a loan. This is not a mortgage loan approval or commitment to lend. The actual fees, costs and monthly payment on your specific loan transaction may vary and may include additional fees and costs.
For loans with less than 20% down payment borrower-paid mortgage insurance may apply.
These mortgage rates are based on a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit profile up to the time of closing.
FHA
- Kentucky FHA loans require both an upfront and an annual mortgage insurance premium. The premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling, and other factors.
Jumbo
- Kentucky Jumbo Mortgage rates are higher for borrowers who do not meet the criteria for Conventional Mortgage Loans.,; Please contact your home mortgage consultant for details regarding the criteria or with any other questions.
VA Loans

Kentucky VA loans require a funding fee upfront paid to VA in the form of mortgage insurance .he premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling factors.
USDA Loans

Kentucky USDA loans require a funding fee upfront and a monthly mortgage insurance premium paid to RHS/USDA. The premium varies based on the loan characteristics, your credit score, and other factors.

Today’s Louisville Kentucky Mortgage Rates may contain points

Subject to credit approval
Rates are subject to change without notice.

Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC, and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required.

A 720 credit score or higher is assumed for Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Conventional loans are assumed at 80% ltv or less.

NMLS# 57916

Free Credit Report and Pre qualifications available anytime.

FHA, VA, KHC, Rural Housing, USDA, Fannie Mae Mortgage Loans

Check out our listing in one of Louisville, Ky’s Premier Business Magazines, Business First Of Louisville

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA

Key Financial Mortgage of KY is a licensed mortgage broker 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 agencies, not a lender. These Government agencies simply insure the mortgages; they do not loan the money. Joel Lobb (NMLS#57916) is a licensed loan officer in the state of Kentucky.

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April 16, 2013 at 9:33 am

Kentucky FHA loan requirements – 2013 – 7 tips – Louisville Kentucky Mortgage

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

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Written by Louisville Kentucky Mortgage

April 13, 2013 at 4:00 pm

Kentucky Housing first mortgage loans guidelines for 2013

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Kentucky Housing first mortgage loans guidelines for 2013

KHC Loan Programs

MRB

All MRB Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
To qualify, you must meet KHC’s regular MRB income guidelines, make a down payment or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.
Some MRB KHC loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional

Insured by approved mortgage insurance company.
Minimum credit score of 660 or better.
Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA

Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.

VA

Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.

RHS

Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.

GNMA Secondary Market

All GNMA KHC first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through KHC must be occupied as your principle residence while the loan debt is outstanding.
To qualify, you must meet KHC’s GNMA income guidelines, make a down payment, or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.

FHA

Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.

VA

Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.

RHS

Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.

Two FHA Refinance Options

Credit qualifying Streamline Refinance and Rate/Term Refinance

Insured by the Federal Housing Administration

Cash back to borrower not to exceed $500

Upfront and monthly mortgage insurance

Minimum credit score of 640

Home Buyer Tax Credit

KHC’s Home Buyer Tax Credit is available through Mortgage Credit Certificates (MCC), which reduce the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax. One-time fee of $500 or reduced to $200 if through KHC’s GNMA Secondary Market First Mortgage Program. Not valid with MRB loan programs.

New Bond Special Funding

These limited funds are available, usually in July, on a first-come, first-served basis.

Guidelines

Must be a first time home buyer, unless property is located in a targeted county.
Interest rate fixed at 2.875 percent.
Gross Annual Household Income guidelines:
- $35,000 for all household sizes.
All household occupants (18 years and older) with income must be included on loan and be credit ready.
Must use all but two months’ reserves of borrower’s own funds.
Existing or new construction property with a purchase price limit of $115,000
Zero Point Rate
Only FHA, VA and RHS – 640 credit score and AUS Approval
60-Day Lock
Neighborhood, Regular, and HOME DAP loan programs available.

Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.

Down Payment and Closing Costs Assistance

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 needs.

Neighborhood Down payment Assistance Program (DAP)

Kentucky Housing Corporation (KHC) received $3 million from the National Mortgage Foreclosure Settlement Fund to offer a new mortgage program for down payment and closing costs assistance. This program is only available until all funds are gone.

Repayable second mortgage up to $10,000

1 percent interest rate for 30 years.
Income must be less than $124,775 (terms and conditions apply).

To be eligible for the Neighborhood DAP, either:

The property must be in the process of disposition option (i.e., deed-in-lieu, short sale) or foreclosed upon.
The newly-constructed or existing property has been for sale for at least six months.
The home buyer has experienced a foreclosure and credit qualifies to purchase another home.

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 6 percent. A DAP of $6,000 over ten years at 6 percent interest would equal a payment of $66.61.
Available to all KHC first-mortgage loan recipients.

HOME-DAP

Purchase price up to $195,700.
Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.

More about down payment and closing costs

No liquid asset review and no limit on borrower reserves for Regular DAP.
Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
Specific credit underwriting standards may apply to down payment programs.

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*

http://mylouisvillekentuckymortgage.com

Kentucky Housing first mortgage loans guidelines for 2013 (kentuckyfirsttimehomebuyer.com)
Kentucky Rural Housing and USDA Property Eligibility Requirement Changes March 27,2013 (mylouisvillekentuckymortgage.com)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Kentucky Rural Housing and USDA Property Eligibili… (louisvillekentuckyvamortgage.blogspot.com)
FHA Changes for Mortgage Loans in Kentucky for 2013 (kentuckyfirsttimehomebuyer.com)
2013 Kentucky FHA Mortgage Changes to Mortgage Insurance (louisvillekymortgage.net)
Kentucky Housing first mortgage loans guidelines for 2013 (kentuckyusdaloan.com)
Will You Need Private Mortgage Insurance on Your Mortgage Loan? (louisvillemortgageguide.com)
Buying a Home after Bankruptcy (kentuckyfirsttimehomebuyer.com)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: USDA/Rural Housing 0 Down (louisvillekentuckyvamortgage.blogspot.com)
Kentucky FHA Mortgage Guideline Changes April, 2013 (louisvillemortgageguide.com)

Written by Louisville Kentucky Mortgage

March 28, 2013 at 2:16 pm

Posted in FHA Loans Kentucky Housing First time home buyer, First Time Home Buyer in Kentucky Zero Down, First Time Home Buyer Loans--Kentucky, First Time home Buyer PRgoams, First Time Tax Credit Extension?, Kentucky Home Buyer & Homeowner Mortgage Guide, Kentucky Housing Mortgage Rates Louisville Kentucky

Tagged with Downpayment, Federal Housing Administration, fixed rate of interest, Housing First, Insurance, Kentucky, khc, Mortgage insurance, mortgage insurance company, Mortgage loan, quick turnaround time, Real Estate

Kentucky Housing first mortgage loans guidelines for 2013

with 11 comments

Kentucky Housing first mortgage loans guidelines for 2013

KHC Loan Programs

MRB

All MRB Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
To qualify, you must meet KHC’s regular MRB income guidelines, make a down payment or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.
Some MRB KHC loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional

Insured by approved mortgage insurance company.
Minimum credit score of 660 or better.
Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA

Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.

VA

Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.

RHS

Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.

GNMA Secondary Market

All GNMA KHC first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through KHC must be occupied as your principle residence while the loan debt is outstanding.
To qualify, you must meet KHC’s GNMA income guidelines, make a down payment, or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.

FHA

Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.

VA

Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.

RHS

Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.

Two FHA Refinance Options

Credit qualifying Streamline Refinance and Rate/Term Refinance

Insured by the Federal Housing Administration

Cash back to borrower not to exceed $500

Upfront and monthly mortgage insurance

Minimum credit score of 640

Home Buyer Tax Credit

New Bond Special Funding

These limited funds are available, usually in July, on a first-come, first-served basis.

Guidelines

Must be a first time home buyer, unless property is located in a targeted county.
Interest rate fixed at 2.875 percent.
Gross Annual Household Income guidelines:
- $35,000 for all household sizes.
All household occupants (18 years and older) with income must be included on loan and be credit ready.
Must use all but two months’ reserves of borrower’s own funds.
Existing or new construction property with a purchase price limit of $115,000
Zero Point Rate
Only FHA, VA and RHS – 640 credit score and AUS Approval
60-Day Lock
Neighborhood, Regular, and HOME DAP loan programs available.

Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.

Down Payment and Closing Costs Assistance

Neighborhood Down payment Assistance Program (DAP)

Repayable second mortgage up to $10,000

1 percent interest rate for 30 years.
Income must be less than $124,775 (terms and conditions apply).

To be eligible for the Neighborhood DAP, either:

The property must be in the process of disposition option (i.e., deed-in-lieu, short sale) or foreclosed upon.
The newly-constructed or existing property has been for sale for at least six months.
The home buyer has experienced a foreclosure and credit qualifies to purchase another home.

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 6 percent. A DAP of $6,000 over ten years at 6 percent interest would equal a payment of $66.61.
Available to all KHC first-mortgage loan recipients.

HOME-DAP

Purchase price up to $195,700.
Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.

More about down payment and closing costs

No liquid asset review and no limit on borrower reserves for Regular DAP.
Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
Specific credit underwriting standards may apply to down payment programs.

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*

http://mylouisvillekentuckymortgage.com

Kentucky Housing first mortgage loans guidelines for 2013 (kentuckyfirsttimehomebuyer.com)
Kentucky Rural Housing and USDA Property Eligibility Requirement Changes March 27,2013 (mylouisvillekentuckymortgage.com)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Kentucky Rural Housing and USDA Property Eligibili… (louisvillekentuckyvamortgage.blogspot.com)
FHA Changes for Mortgage Loans in Kentucky for 2013 (kentuckyfirsttimehomebuyer.com)
2013 Kentucky FHA Mortgage Changes to Mortgage Insurance (louisvillekymortgage.net)
Kentucky Housing first mortgage loans guidelines for 2013 (kentuckyusdaloan.com)
Will You Need Private Mortgage Insurance on Your Mortgage Loan? (louisvillemortgageguide.com)
Buying a Home after Bankruptcy (kentuckyfirsttimehomebuyer.com)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: USDA/Rural Housing 0 Down (louisvillekentuckyvamortgage.blogspot.com)

Louisville Kentucky FHA 203K Streamline Program

with 3 comments

FHA 203K Streamline Program Louisville Kentucky FHA 203K Streamline Program

FHA 203K Streamline Program

The FHA 203K Streamline Program provides up to $35,000 toward property repair or rehabilitation, and combines it with funds needed to purchase or refinance. Only one appraisal is required to show the value with the improvements.

If the lender is a Third Party Originator (TPO), the borrower is given three months from the closing date to complete all work. KHC oversees the repair escrows for TPOs and requires the TPOs to charge a Supplemental Origination Fee, calculated as the greater of $350 or 1.5 percent of the rehabilitation cost (reflected on page 2 of GFE in Block 1). This fee is paid to KHC for maintaining the repair escrows.

If the lender is an FHA Mortgagee, they may follow FHA agency guidelines regarding the allowable time period for work completion. The FHA Mortgagee must oversee their repair escrows, and may charge the Supplemental Origination Fee. Full information is available in the documents below

KENTUCKY HOUSING CORPORATION
FHA 203K STREAMLINE TPO QUICK REFERENCE GUIDE
Page 1 of 2 5/30/2012
Program Overview
The FHA 203K Streamline Program provides up to $35,000 toward repair/rehabilitation.
This program combines funds needed to purchase or refinance along with the funds needed to repair/rehabilitate the property. The borrower is given three months from the closing date to complete all the work.
Procedures All standard FHA borrower and credit underwriting guidelines apply. 10% contingency required (inclusive of the $35,000). Submission package must include203K worksheet (HUD-92700), FHA Underwriting and Loan Transmittal Summary (HUD-92900 LT), executed Homeowner/Contractor Agreement and all repair bids. A Supplemental Origination Fee must be charged. The Supplemental Origination Fee is calculated as the greater of $350 or 1.5% of rehabilitation cost (reflected on page 2 of GFE in Block 1). This fee will be paid to KHC for maintaining the repair escrows. Regular DAP may be used. Home DAP cannot be used with the FHA 203K Streamline.
Eligible Improvements
Repair/Replacement/Upgrade:
o Roofs, gutters and downspouts, HVAC systems, plumbing, electrical, and flooring Painting, both exterior and interior Minor remodeling, such as kitchens, but no structural repairs Weatherization, including storm windows and doors, insulation, weather stripping, etc. Purchase and installation of appliances including:
o Free standing ranges, refrigerators, washers/dryers, dishwashers, microwave ovens Accessibility improvements for persons with disabilities Repair/replace/add exterior decks, patios, porches Basement finishing/remodeling and waterproofing, but no structural repairs Window/door replacements and exterior wall re-siding Septic system and or well repair or replacement
Ineligible Improvements
Major rehabilitation/remodeling, such as the relocation of a load-bearing wall, new construction (including room additions), repair of structural damage, landscaping, lead-based paint stabilization or abatement of lead-based paint hazards and any repair causing the mortgagor to be displaced from the property for more than 30 days.
Contractors and Rehabilitation Criteria:
Must use contractors to complete the repairs and rehabilitation

Contractors and Rehabilitation Criteria:
Must use contractors to complete the repairs and rehabilitation
The Contractor(s) must be licensed with the State of Kentucky (if applicable) and provide evidence of insurance at time of loan submission. http://www.contractors-license.org/ky/Kentucky.html (to check if contractor is licensed) Two bids are required for each work item to show cost is customary for area. The cost estimate must clearly state the nature and type of repair and the cost for completion of the work item(s). Breakdown of material and labor cost must also be shown. Additional cost estimates may be necessary. When purchasing appliances the invoices from dealer must be provided. Lender indicates which contractor’s bid has been chosen by the borrower so KHC can provide to the appraiser. The Contractor(s) must sign a Homeowner/Contractor’s Agreement to complete the work for the amount of the cost estimate and within the allotted time frame. The rehabilitation period begins when the mortgage loan is closed.

KENTUCKY HOUSING CORPORATION
FHA 203K STREAMLINE TPO QUICK REFERENCE GUIDE
Page 2 of 2 5/30/2012
Self-Help
Self-Help work items only permitted if borrower meets eligible contractor criteria and is currently employed in same profession as work to be performed (i.e.; borrower is a licensed plumber and will complete that portion of the work) A Self-Help Agreement is executed by the borrower and lender. Borrowers who utilize self-help will not be compensated for their labor, however the cost of labor will be included in the repair/rehabilitation cost (in case the borrower is unable to complete the work, and a contractor must be hired). Borrower to provide two estimates for each work item.
Appraisal Requirements Only one “after improved” appraisal (subject to completion of repairs) is required. Property value must be sufficient to purchase and complete rehabilitation
Eligible Property Types Single family residences, including HUD REO properties Manufactured Homes Condominiums (FHA Approved Condominiums)
o Must follow FHA Agency Guidelines.
Rehabilitation Period and
Disbursements
All work must be completed within three months from the loan closing. No more than two payments may be made to each contractor The first payment is intended to defray material costs and shall not be more than 50% of the estimated costs of materials and permits (use Disbursement Authorization Form). The final payment to the contractor(s) will be made following completion of all work using the Mortgagor/Contractor Letter of Completion. Once all work is completed then the lender will request a Final Inspection. Once KHC receives the Final clear Inspection, the escrow account will be finalized.
Change Order Guidelines If during the repair process there are unforeseen repairs necessary to complete the original work a change order must be approved by a KHC Underwriter The following must be submitted to KHC Underwriting Department;
o Two bids with labor and materials broken down for the change request.
o Completed HUD Form-92577 (change order request form). Once received, KHC will determine if there is enough money in the escrow account. If sufficient funds in the escrow account, the KHC Underwriter will sign and date form 92577 and fax back to the lender. If forms are acceptable but not sufficient funds in the escrow account, verify the borrower has sufficient funds to cover the changes. The funds must be verified, collected and deposited into the escrow account.
Closing Guidelines and Forms There will no disbursements advanced at closing. Once the repairs are completed with the funds appropriately disbursed, rehabilitation escrow account is closed out and FHA Connection is updated to show the close-out. The following documentation is required on all 203K streamline loans:
o Rehabilitation Loan Agreement: This agreement is between the lender and the borrower establishing

Rehabilitation Loan Agreement: This agreement is between the lender and the borrower establishing the conditions under which the lender will advance the 203K streamline mortgage proceeds and 203K Rider.

KHC Refinance Products (mylouisvillekentuckymortgage.com)
Mortgages for Foreclosure Purchase and Repairs (destinmilitaryhomes.wordpress.com)
Closing Costs When Buying or Refinancing a Home for A Louisville Ky Home Mortgage (mylouisvillekentuckymortgage.com)
Louisville Kentucky First Time Home Buyer Programs and Resources (trulia.com)
HUD Homeownership Center Reference Guide Refinances (mylouisvillekentuckymortgage.com)
Mortgage Insurance Rates Increasing on FHA Loans (mylouisvillekentuckymortgage.com)
Changes to FHA Streamline Refinance To Benefit Borrowers (mylouisvillekentuckymortgage.com)
Louisville Kentucky FHA Guidelines 2012 (mylouisvillekentuckymortgage.com)
FHA Refinancing to Avoid Foreclosure (streamlinerefinance.net)
FHA Loan Requirements – Requirements for a FHA loan refinance (streamlinerefinance.net)
Extraordinary Benefits Offered Louisville Kentucky FHA Streamline Refinance (mylouisvillekentuckymortgage.com)
FHA Streamline Refinances: HUD Reduces Monthly Mortgage Insurance! (bayarearealestatetrends.com)
The Big Renovation…Part 2! (swarthmorerealtor.com)
Short Sales & FHA 203K or Fannie Mae HomeStyle Loans (slideshare.net)
Mortgage Loan Payoffs for Usda Rural Development Direct Housing Loans in Kentucky (kentuckyusdaloan.com)
Documenting Your Assets for A Louisville Kentucky Mortgage loan downpayment- (mylouisvillekentuckymortgage.com)
FHA 203k Kentucky FHA Loan Guidelines (203k FHA Loan) Kentucky (trulia.com)
Steps to a Louisville Kentucky VA Loan (mylouisvillekentuckymortgage.com)
Kentucky USDA credit score and mortgage requirements for 2012 (louisvillekentuckyvamortgage.blogspot.com)
Will new mortgage paperwork help housing market? (hsh.com)
How to get a Louisville Kentucky FHA Loan (mylouisvillekentuckymortgage.com)
Kentucky first-time home buyer Zero Down Programs (trulia.com)
HUD Homes Repair Escrow – Are they Realistic? (joan2771.wordpress.com)
Disaster Assistance for Florida Storm Victims from HUD (pascoflrealestate.typepad.com)

Written by Louisville Kentucky Mortgage

July 26, 2012 at 2:05 pm

Posted in 203k FHA, FHA Home Loans in Kentucky, FHA Loan Checklist for Approval, FHA Loans

Tagged with FHA, FHA insured loan, GFE, Good faith estimate, hud fha, Kentucky, Kentucky Housing Corporation, Loan, quick reference guide, Real Estate, submission package, United States Department of Housing and Urban Development

Jefferson County Kentucky Fannie Mae Homepath Homes for Sales in Louisville Kentucky

with one comment

Jefferson County Kentucky Fannie Mae Homepath Homes for Sales in Louisville Kentucky

City	Status	Bed	Bath	Price	HomePath Financing
2249 Peaslee Rd Louisville, KY 40216	Single-Family	Active	3 br	1 ba	$106,990	YES
Save Map	ONLINE OFFER					YES
1422 Christy Ave Louisville, KY 40204	Single-Family	Back on Market	2 br	2 ba	$102,900	NO
Save Map	ONLINE OFFER					NO
4307 Culpepper Cir Louisville, KY 40241	Single-Family	Back on Market	4 br	3 ba	$99,990	YES
Save Map	ONLINE OFFER					YES
2212 Grinstead Dr Louisville, KY 40204	Single-Family	Active	3 br	2 ba	$100,000	YES
Save Map	ONLINE OFFER					YES
6304 Sherlock Way Louisville, KY 40228	Single-Family	Under Contract	3 br	2 ba	$94,900	YES
Save Map						YES
6501 Brook Bend Way Un… Louisville, KY 40229	Condo/Co-op	Just Listed	2 br	2 ba	$95,000	YES
Save Map	ONLINE OFFER					YES
6204 W Pages Ln Louisville, KY 40258	Single-Family	Just Listed	3 br	2 ba	$93,900	YES
Save Map	ONLINE OFFER					YES
1713 Atterberry Ct Louisville, KY 40216	2-4 Units	Active	4 br	2 ba	$89,990	YES
Save Map	ONLINE OFFER					YES
218 Toy Ct Louisville, KY 40229	Single-Family	Under Contract	3 br	2 ba	$88,900	YES
Save Map						YES
6701 North Dr Louisville, KY 40272	Single-Family	Just Listed	3 br	2 ba	$80,000	YES
Save Map	ONLINE OFFER					YES
9023 Cottingham Way Louisville, KY 40258	Single-Family	Active	3 br	1 ba	$80,000	YES
Save Map	ONLINE OFFER					YES
2100 S Shelby St Louisville, KY 40217	Single-Family	Active	2 br	1 ba	$79,900	YES
Save Map	ONLINE OFFER					YES
4016 Slack Ave Louisville, KY 40229	Single-Family	Under Contract	3 br	2 ba	$77,900	YES
Save Map						YES
2322 Ecton Ln Louisville, KY 40216	Single-Family	Price Reduced	3 br	1 ba	$76,900	YES
Save Map	ONLINE OFFER					YES
7308 Chestnut Tree Ln Louisville, KY 40291	Single-Family	Under Contract	3 br	2 ba	$75,900	YES

City	Status	Bed	Bath	Price	HomePath Financing
4510 Gaudet Rd Louisville, KY 40299	Single-Family	Just Listed	4 br	2 ba	$155,000	YES
Save Map	ONLINE OFFER					YES
2831 Whiteway Ave Louisville, KY 40205	Single-Family	Under Contract	4 br	1 ba	$139,900	YES
Save Map						YES
814 Echo Bridge Rd Louisville, KY 40243	Single-Family	Active	3 br	2 ba	$139,900	YES
Save Map	ONLINE OFFER					YES
3612 Locklee Rd Louisville, KY 40214	Single-Family	Active	3 br	2 ba	$122,900	YES
Save Map	ONLINE OFFER					YES
4509 Jett Thomas Dr Louisville, KY 40228	Single-Family	Under Contract	2 br	2 ba	$118,990	YES
Save Map						YES
7104 Greenlawn Rd Louisville, KY 40222	Single-Family	Back on Market	3 br	2 ba	$115,000	YES
Save Map	ONLINE OFFER					YES
8003 Acme Way Louisville, KY 40219	Single-Family	Under Contract	2 br	2 ba	$114,990	YES
Save Map						YES
5621 Harrods Cv Prospect, KY 40059	Condo/Co-op	Price Reduced	2 br	3 ba	$114,990	YES
Save Map	ONLINE OFFER					YES
3906 Pinoak View Ct Louisville, KY 40299	Single-Family	Just Listed	3 br	2 ba	$114,000	YES
Save Map	ONLINE OFFER					YES
4218 Accomack Dr Louisville, KY 40241	Single-Family	Under Contract	3 br	2 ba	$113,900	YES
Save Map						YES
1422 Saint Anthony Pl Louisville, KY 40204	Single-Family	Under Contract	2 br	2 ba	$109,900	YES
Save Map						YES
10425 Shelbyville Rd Louisville, KY 40223	Condo/Co-op	Just Listed	2 br	3 ba	$109,900	YES
Save Map	ONLINE OFFER					YES
4204 Hickoryview Dr Louisville, KY 40299	Single-Family	Just Listed	3 br	2 ba	$109,990	YES
Save Map	ONLINE OFFER					YES
203 N Arbor Park Louisville, KY 40214	Single-Family	Just Listed	4 br	3 ba	$108,900	YES
Save Map	ONLINE OFFER					YES
8112 Ponce De Leon Ct Louisville, KY 40219	Single-Family	Under Contract	3 br	2 ba	$108,000	YES

City	Status	Bed	Bath	Price	HomePath Financing
3309 Nevel Meade Dr Prospect, KY 40059	Single-Family	Under Contract	4 br	4 ba	$460,000	YES
Save Map						YES
5614 Valley Park Dr Louisville, KY 40299	Single-Family	Under Contract	5 br	4 ba	$350,000	YES
Save Map						YES
7424 Falls Ridge Ct Louisville, KY 40241	Single-Family	Under Contract	5 br	5 ba	$290,000	YES
Save Map						YES
3109 Wynbrooke Cir Louisville, KY 40241	Single-Family	Active	4 br	4 ba	$279,990	YES
Save Map	ONLINE OFFER					YES
4112 Pleasant Glen Dr Louisville, KY 40299	Single-Family	Price Reduced	3 br	2 ba	$244,990	YES
Save Map	ONLINE OFFER					YES
14307 Wakefield Pl Louisville, KY 40245	Single-Family	Under Contract	4 br	4 ba	$244,900	YES
Save Map						YES
1010 Westgate Pl Louisville, KY 40207	Single-Family	Under Contract	4 br	3 ba	$209,500	YES
Save Map						YES
3308 Morningview Dr Louisville, KY 40242	Single-Family	Just Listed	3 br	2 ba	$200,000	YES
Save Map	ONLINE OFFER					YES
3712 Blevins Gap Rd Louisville, KY 40272	Single-Family	Under Contract	2 br	3 ba	$189,900	YES
Save Map						YES
4915 Chenoweth Run Rd Louisville, KY 40299	Single-Family	Under Contract	3 br	2 ba	$186,000	YES
Save Map						YES
8521 Missionary Ct Louisville, KY 40291	Single-Family	Under Contract	3 br	2 ba	$177,000	YES
Save Map						YES
1710 Applewood Ln Louisville, KY 40222	Single-Family	Under Contract	4 br	3 ba	$174,900	YES
Save Map						YES
254 Kennedy Ct Louisville, KY 40206	Single-Family	Under Contract	4 br	3 ba	$174,990	YES
Save Map						YES
11031 Eagles Cove Dr Louisville, KY 40241	Single-Family	Price Reduced	3 br	3 ba	$159,900	YES
Save Map	ONLINE OFFER					YES
9712 Long Rifle Ln Louisville, KY 40291	Single-Family	Just Listed	3 br	2 ba	$157,990	YES
Save Map	ONLINE OFFER					YES

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Written by Louisville Kentucky Mortgage

June 10, 2012 at 3:41 pm

First Time Home Buyer Louisville Kentucky Mortgage Programs

with 5 comments

First Time Home Buyer Louisville Kentucky Mortgage Programs.

via First Time Home Buyer Louisville Kentucky Mortgage Programs.

Kentucky Rural Housing USDA Guidelines 2011 (via Kentucky First Time Home Buyer Mortgage Loan) (louisvillemortgageguide.com)
Down Payment and Closing Costs Assistance (louisvillekentuckymortgagerates.com)
Frequently Asked Questions about FHA Kentucky Home Loans (louisvillekymortgage.net)
Kentucky Housing Corporation updated guidelines June 2011(kentuckyfirsttimehomebuyer.com)
First Time Home Buyer Programs Louisville Kentucky (kentuckyfirsttimehomebuyer.com)
Louisville Kentucky FHA Loans (louisvillemortgageguide.com)
Kentucky First Time Home Buyer Grants and Loan Programs (louisvillemortgageguide.com)
Louisville Kentucky mortgage rates (kentuckyvaloan.com)
Mortgage Insurance Rates Increasing on Louisville Kentucky FHA Loans (louisvillemortgageguide.com)
Louisville Ky FHA Mortgage Loans (kentuckyfirsttimehomebuyer.com)
What Credit Score do You Need to qualify for a FHA VA KHC USDA Kentucky Mortgage (louisvillekymortgage.net)
Louisville Kentucky mortgage rates (kentuckyusdaloan.com)
John Boel investigates Louisville’s vacant home crisis (louisvillekymortgage.net)

Kentucky Home Buyer & Homeowner Mortgage Guide

with 2 comments

Kentucky Home Buyer & Homeowner Mortgage Guide

Kentucky First Time Home Buyer Grants and Loan Programs (kentuckyfirsttimehomebuyer.com)
FHA Mortgage Requirements for Louisville Ky First Time Home Buyers (kentuckyfirsttimehomebuyer.com)
FHA/VA KHC USDA Kentucky Mortgage: (louisvillekentuckymortgagerates.com)
Homeownership Opportunities Still Available Through State Housing Agency (kentuckyfirsttimehomebuyer.com)
Kentucky Rural Development Kentucky Guaranteed Housing Zero Down (kentuckyfirsttimehomebuyer.com)
Kentucky Mortgage Refinance Questions to ask: Kentucky Housing VA FHA KHC USDA and FNMA (louisvillekymortgage.net)
Louisville Kentucky Home Loans 2012 (kentuckyfirsttimehomebuyer.com)
Kentucky Guaranteed Rural Housing Loans 2012 Update (kentuckyusdaloan.wordpress.com)
Options to Help You Stay in Your Home and Avoid Foreclosure : Fannie Mae Kentucky (kentuckyvaloan.wordpress.com)
Kentucky Zero down Mortgage Loans(kentuckyfirsttimehomebuyer.com)
502-905-3708 or kentuckyloan@gmail for free mortgage application and approval
Louisville Kentucky VA Refinance Loans (kentuckyvaloan.com)
Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

February 15, 2012 at 2:56 am

Posted in Kentucky Home Buyer & Homeowner Mortgage Guide

Tagged with Debt, fha mortgage requirements, Foreclosure, home buyer grants, Kentucky, Kentucky Housing Corporation, khc, Loan, Louisville Kentucky, Mortgage loan, state housing agency, United States Department of Housing and Urban Development

2012 Welcome Home Program for Kentucky Home buyers—Out of Funds for 2012 Sorry

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Image via Wikipedia

Out of Funds for 2012 Sorry

Welcome Home Program

2012 Welcome Home Program for Kentucky Homebuyers

2012 WELCOME HOME PROGRAM DESCRIPTION

This is only a brief overview of the Welcome Home program. Complete details, limits, requirements, and guidelines are contained in Attachment H of the 2012 AHP Implementation Plan, and in the 2012 Welcome Home Guide. Both documents are available at www.fhlbcin.com.

PURPOSE

The Federal Home Loan Bank of Cincinnati (the FHLBank) has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership. These funds are available to Members as grants to assist homebuyers under the Welcome Home Program. This is a general description of the program. Complete information and documents are available at www.fhlbcin.com.

USES OF FUNDS

Welcome Home grants are used to fund reasonable down payments and closing costs incurred in conjunction with the acquisition or construction of owner-occupied housing by low- and moderate-income homebuyers. The grants are limited to $5,000 per homebuyer and Members are subject to an aggregate limit of $200,000 per offering. All funds are reserved for specific homebuyers purchasing specific homes and cannot be transferred to other homebuyers or to other homes.

FUNDS AVAILABLE FOR 2012

Total funds available for 2012 will be announced in late February 2012.

Funds will be reserved for Members and homebuyers on a “first-come, first-served” basis, but only to the extent that funds are available. Once all funds have been reserved, the FHLBank will no longer accept Reservation Requests.

SCHEDULE FOR 2012 WELCOME HOME

Welcome Home funds will be available for reservation beginning on March 1, 2012, and will remain available until all funds have been reserved. Any Reservation Requests received before that date will be denied.

All Funding Requests must be submitted by 5PM ET on December 1, 2012. Any Funding Requests received after that date will be denied.

ELIGIBILITY REQUIREMENTS

In order to receive Welcome Home funding, the following requirements must be met:

Funds must be used to assist households whose incomes are at or below 80% of the Mortgage Revenue Bond (MRB) income limits, as adopted by the appropriate state housing finance agency, adjusted for family size. MRB limits for KY, OH, and TN are available at www.fhlbcin.com. Please note that 2011 MRB limits will be used until the 2012 MRB limits are published by the respective state housing finance agencies.
Welcome Home funds are intended only for homebuyers who would qualify for the first mortgage based on their current income. Co-signors and co-borrowers are not allowed unless they will occupy the home as their primary residence and their incomes are included in determining eligibility.
The Member who reserves the Welcome Home funds must originate the first mortgage, but may close in the name of a third party.
Homebuyers must contribute at least $500 of their own funds toward down payment and closing costs (60% of these funds may be received as a gift).
The rate of interest, points, fees, and any other charges must not exceed a reasonable market rate for a loan of similar maturity, term, and risk.
The interest rate on the first mortgage (or the fully indexed rate for an Adjustable Rate Mortgage (ARM)) may not exceed 7.50%. (Note: the fully indexed rate means the index at the time of loan origination plus the stated margin.)
The interest rate on the second mortgage may not exceed 11.00%.
Welcome Home funds may not be used in transactions involving a second mortgage provided by an individual as seller. Second mortgages provided by formal organizations, including financial institutions, Community Development Financial Institutions, housing finance agencies, non-profit organizations, etc. are acceptable. Should you have any questions, please contact the FHLBank prior to submitting the Reservation Request.
Interest only loans are not eligible for Welcome Home.
All fixed rate loans must have a minimum term and amortization of 10 years.
All ARMs must have a minimum term of 10 years and a minimum amortization of 20 years.
Welcome Home first mortgage loans must comply with applicable federal, state and local anti-predatory lending laws, regulations and orders designed to prevent or regulate abusive and deceptive lending practices and loan terms (collectively, “Anti-Predatory Lending
Laws”). For example, Anti-Predatory Lending Laws may prohibit or limit certain practices and characteristics, including, but not limited to the following:The FHLBank will not provide Welcome Home assistance to any transaction in which a loan exceeds the annual percentage rate, or points and fees thresholds of the Home Ownership and Equity Protection Act of 1994 and its implementing regulations (Federal Reserve Board Regulation Z).
- Requiring the borrower to obtain prepaid, single-premium credit life, credit disability, credit unemployment, or other similar credit insurance;
- Requiring mandatory arbitration provisions with respect to dispute resolution in the loan document; or
- Charging prepayment penalties for the payoff of the loan beyond the early years of such a loan.
First-time homebuyers must complete a homebuyer counseling program. The counseling program must be provided by, or based on one provided by, an organization recognized as experienced in homeownership counseling. The counseling program must cover, at a minimum, mortgage financing, credit-worthiness, household budgeting, and home maintenance. Welcome Home funds may be used to pay up to $300 of the costs provided they are not covered by another funding source. Homebuyer counseling is only required for first-time homebuyers.
The housing assisted with Welcome Home funds must be subject to a legally enforceable restriction in the Warranty Deed or restrictive covenant to the Warranty Deed requiring that the FHLBank be given notice of any refinancing, sale, foreclosure, or change in ownership of the unit prior to the end of a five-year retention period. If the home is sold or refinanced during the five-year retention period, the homebuyers may be required to pay back a pro rata amount of the Welcome Home grant. If the home is foreclosed, no repayment is required. (Note: a “deed in lieu of foreclosure” or an assignment of an FHA first mortgage to the Secretary of HUD is treated as a foreclosure.) The 2012 Welcome Home Retention language is available at www.fhlbcin.com.

OTHER REQUIREMENTS

Welcome Home funds may be used in conjunction with other local, state, and federal funding sources and with the FHLBank’s Community Investment Cash Advance programs. However, they may not be used with an existing or future award through any of the FHLBank’s other Housing and Community Investment Programs, including AHP.
If Welcome Home funds have been disbursed to the Member and the funds are misused, the FHLBank may recapture all or a portion of the funds.
If the homebuyer receives any cash back at closing, as indicated on the HUD-1 Settlement Statement, the Welcome Home grant will be reduced by a like amount. In lieu of receiving cash back at closing, any excess Welcome Home funds may be used as “principal repayment” or “principal reduction” and must be shown on the HUD-1 as such.
If the HUD-1 Settlement Statement indicates that earnest money was returned to the homebuyer, the Welcome Home grant will be reduced by a like amount.
If the HUD-1 Settlement Statement indicates funds were used for an ineligible purpose, e.g. paying off consumer debt, the Welcome Home grant will be reduced by a like amount.
Welcome Home is not intended for purchases requiring any significant repair or rehabilitation. If more than $500 is to be escrowed for repairs, the property is not eligible for Welcome Home without the advance written approval of the FHLBank prior to closing. Funds escrowed for repairs do not count towards the homebuyer’s required $500 cash contribution. Welcome Home funds will not be disbursed until the Member certifies that: 1) all repairs were required for mortgage approval as evidence by the appraisal; 2) all repairs have been completed; and 3) all escrowed funds have either been disbursed or released. If unused escrowed funds are released to the homebuyer, the Welcome Home grant may be reduced by a like amount.
Welcome Home may be used for new construction. However, the home must be complete and the permanent financing closed before December 1, 2012.
Some manufactured housing is eligible for Welcome Home assistance; please consult the 2012 Welcome Home Guide for more information.

RESERVING WELCOME HOME FUNDS

Funds may be reserved via the Welcome Home link on the FHLBank’s Members Only website available at www.fhlbcin.com. For assistance in accessing the “Members Only” website, please contact the “Members Only” Administrator at your institution or contact the FHLBank’s Help Desk at 800-781-3090 (8:30–5:00 PM ET).

The following documentation must be uploaded and attached to the Reservation Request:

A completed, signed, and dated Uniform Residential Loan Application; and,
Third party documentation for all sources of current year income for all persons who will reside in the home.

The FHLBank will perform a preliminary review of the Reservation Request and the documentation submitted to determine eligibility of the homebuyer, availability of funds in the program, and availability of funds for the Member. If any of the information is incomplete, additional documentation or information may be required. Written notification will be provided to the Member as to the homebuyer’s eligibility and date the reservation will expire. Submission of the Reservation Request does not constitute a reservation of funds; funds are reserved only upon written notification of approval from the FHLBank.

Please allow four to six weeks for the FHLBank to review the Reservation Request and supporting documentation.

DISBURSING FUNDS

Welcome Home funds will only be disbursed after closing. To request the disbursement of funds, please complete a Funding Request via the Welcome Home link on the FHLBank’s Members Only website available at www.fhlbcin.com. For assistance in accessing the “Members Only” website, please contact the “Members Only” Administrator at your institution or contact the FHLBank’s Help Desk at 800-781-3090 (8:30–5:00 PM ET).

The following documentation must be uploaded and attached to the Funding Request:

An executed HUD-1 Settlement Statement, showing the Welcome Home amount;
An executed final Truth-in-Lending statement for all repayable mortgages; and
A copy of the Warranty Deed containing the 2012 Welcome Home five-year retention language (available at www.fhlbcin.com).

Funds will be disbursed only to the extent they are required to fill the gap for downpayment, closing costs, and counseling fees.

Please allow four to six weeks for the FHLBank to review the Funding Request and supporting documentation.

Out of Funds for 2012 Sorry

Kentucky Zero down Mortgage Loans (kentuckyfirsttimehomebuyer.com)
Louisville Ky First Time Home Buyer (louisvillekymortgage.net)
Kentucky Homepath Financing 2012 Fannie Mae Properties in Kentucky (louisvillekymortgage.net)
Kentucky Housing Interest Rates (kentuckyvaloan.wordpress.com)
Texas First Time Homebuyer Program (Bond Program) for Downpayment and Closing Cost Assistance (billprice7.wordpress.com)
Federal Home Loan Bank of Atlanta to Award $7.9 Million for Affordable Housing in Georgia (prweb.com)
Federal Home Loan Bank of Atlanta to Award $12 Million for Affordable Housing in Florida (prweb.com)
Federal Home Loan Bank of Atlanta to Award $2.9 Million for Affordable Housing in Virginia (prweb.com)
The New First-Time Homebuyer’s Credit – Is It Worth All the Trouble? (turbotax.intuit.com)
Mortgage Partnership Finance Program Exhibiting at National Association of Realtors Conference and Expo (prnewswire.com)
KHC Mortgage Interest Rates 2011 (kentuckyfirsttimehomebuyer.com)
Making Sense of the Homebuyer Credit (turbotax.intuit.com)
Louisville Kentucky Mortgage Programs 2011 (louisvillemortgageguide.com)
Louisville Kentucky Down Payment Assistance and Closing Costs (louisvillemortgageguide.com)
Hints for Homebuyers Finding Assistance and Incentive Programs (prweb.com)

Written by Louisville Kentucky Mortgage

February 12, 2012 at 3:00 pm

Posted in Welcome home Programs 2012

Tagged with Adjustable Rate Mortgage, Affordable housing, Community development financial institution, Funds, Kentucky, Mortgage loan, Mortgage revenue bond loan, Welcome Home Program

Kentucky Zero down Mortgage Loans

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Zero/minimum down payment for mortgage KY

KHC Loan Programs

All Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
To qualify, you must meet KHC’s regular income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.
Some Kentucky Housing loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional

Insured by approved mortgage insurance company.
Minimum credit score of 660 or better.
Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA

Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.

VA

Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.

RHS

Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.
No monthly mortgage insurance payments.

Mortgage Credit Certificates (MCC)

A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.

Special First Mortgage Loan Programs

New Construction Program for Single-Parent, Disabled and Elderly Households offers loans for newly constructed houses at interest rates from 1 to 6 percent. These limited funds are available, usually in July, on a first-come, first-served basis.

Guidelines

Interest rate determined by the families’ ability to repay the loan.
For new homes with a purchase price of $115,000 or less.
Eligible borrowers:
- Single parents (at least one dependent under the age of 18 must live in the home.)
- Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.).
- Households where at least one of the home buyers is age 62 or older.
Income guidelines:
- $28,000 for a household of 1 or 2 people; or
- $33,000 for a household of 3 or more people.
Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance.

Applying for a Kentucky Housing loan is easy. Just contact us ask for a Kentucky Housing loan.

Zero/minimum down payment for mortgage KY

Down Payment and Closing Costs Assistance

Regular Down payment Assistance Program (DAP)

Purchase price up to $243,000.
Assistance in the form of a loan up to $4,000 in $100 increments.
Repayable over a seven-year term at 6 percent. A DAP of $4,000 over 7 years at 6 percent interest would equal a payment of $58.44.
Available to all KHC first mortgage loan recipients who are first-time homebuyers in non-targeted counties and first and second-time homebuyers in targeted counties.

HOME-DAP

Purchase price up to $195,700.
Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.

HOME Special Program

Purchase price up to $195,700.
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Eligible borrowers include:
- Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
- Households where at least one of the home buyers is age 62 or older.

HOME Family Program

Purchase price up to $195,700.
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Eligible borrowers include:
- Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

More about down payment and closing costs

No liquid asset review and no limit on borrower reserves for Regular DAP.
Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
Specific credit underwriting standards may apply to down payment programs.

FHA/VA KHC USDA Kentucky Mortgage: (louisvillekentuckymortgagerates.com)
Kentucky Rural Development Kentucky Guaranteed Housing Zero Down (kentuckyfirsttimehomebuyer.com)
FHA Mortgage Requirements for Louisville Ky First Time Home Buyers (kentuckyfirsttimehomebuyer.com)
9 items Kentucky homebuyers want (louisvillemortgageguide.com)
Louisville Kentucky Down Payment Assistance and Closing Costs (kentuckyfirsttimehomebuyer.com)
Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist (kentuckyfirsttimehomebuyer.com)
Louisville Kentucky VA Home loans (kentuckyvaloan.wordpress.com)
How does Kentucky FHA Mortgage Loans Work for Kentucky First Time Home Buyers? (kentuckyfirsttimehomebuyer.com)
2011 Kentucky FHA Mortgage Loan Limits (louisvillemortgageguide.com)
Louisville Kentucky Down Payment Assistance and Closing Costs (louisvillemortgageguide.com)
Kentucky Guaranteed Rural Housing Loans 2012 Update (kentuckyusdaloan.wordpress.com)
Kentucky Housing Interest Rates (kentuckyvaloan.wordpress.com)
First Time Home Buyer Louisville Kentucky Mortgage Programs (louisvillekentuckymortgagerates.com)
Kentucky Homepath Financing 2012 Fannie Mae Properties in Kentucky (louisvillekymortgage.net)
Louisville Kentucky Mortgage Programs 2011 (louisvillemortgageguide.com)
Louisville Ky FHA Mortgage Loans (louisvillemortgageguide.com)
Louisville Ky First Time Home Buyer (louisvillekymortgage.net)
Louisville Ky FHA Mortgage Loans (kentuckyfirsttimehomebuyer.com)
Kentucky FHA loans (louisvillemortgageguide.com)
Louisville Kentucky Down Payment Assistance and Closing Costs (louisvillemortgageguide.com)

Written by Louisville Kentucky Mortgage

January 31, 2012 at 9:44 am

Posted in KHC 2011 updated Guidelines, KHC Down payment Assistance Program Kentucky Housing, KHC Mortgage Rates / Kentucky Housing Rates

Tagged with Federal Housing Administration, FHA, First-time buyer, Home, Housing First, Insurance, Kentucky, khc, Loan, louisville, Mortgage, Mortgage Credit Certificate, Mortgage loan, Rural Housing Service, USDA, va

HUD Homes in KY

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Search Results for HUD Homes in KY

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31 listings found

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Property Case	Address	Price	Status	Bed	Bath	Listing Period	Bid Open Date	Details
201-314012	41 Setting Sun Dr Elizabethtown, KY 42701 Hardin County	$101,000		3	2.00	Exclusive	01/16/2012	View Street Map it Email Info
201-320011	112 Lafayette Dr Frankfort, KY 40601 Franklin County	$112,000		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-327662	2681 Coronado Ridge Lexington, KY 40511 Fayette County	$100,000		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-334141	2911 Raven Ct Louisville, KY 40220 Jefferson County	$125,000		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-335509	8297 Camp Ernst Rd Burlington, KY 41005 Boone County	$112,500		3	1.00	Extended	01/15/2012	View Street Map it Email Info
201-337297	111 Plainfield Way Bowling Green, KY 42104 Warren County	$125,100		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-343987	449 Tobiano Dr Richmond, KY 40475 Madison County	$150,000		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-345513	2960 Dixie Hwy Crestview Hills, KY 41017 Kenton County	$115,000		3	2.00	Exclusive	01/15/2012	View Street Map it Email Info
201-354193	4223 Southern Farm Louisville, KY 40216 Jefferson County	$103,000		3	2.00	Exclusive	01/15/2012	View Street Map it Email Info
201-355686	265 Masterson Station Drive Lexington, KY 40511 Fayette County	$125,000		3	2.10	Exclusive	01/16/2012	View Street Map it Email Info
201-356156	6209 Iron Works Rd Winchester, KY 40391 Clark County	$115,000		3	1.00	Extended	01/15/2012	View Street Map it Email Info
201-356440	410 Winners Circle Frankfort, KY 40601 Franklin County	$162,000		4	2.50	Extended	01/15/2012	View Street Map it Email Info
201-361349	1876 Little Hardwic Clay City, KY 40312 Powell County	$135,000		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-362694	375 Green Creek Dr Glasgow, KY 42141 Barren County	$118,000		3	2.00	Exclusive	01/17/2012	View Street Map it Email Info
201-365391	3115 Dr William G Weathers Dr Louisville, KY 40211 Jefferson County	$110,000		3	2.10	Exclusive	01/15/2012	View Street Map it Email Info
201-367051	205 Rabbit Run Rd Georgetown, KY 40324 Scott County	$101,700		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-371281	316 – 318 Hamlett E Mount Sterling, KY 40353 Montgomery County	$142,000		6	4.00	Exclusive	01/15/2012	View Street Map it Email Info
201-374878	1300 Majestic Woods Dr Lagrange, KY 40031 Oldham County	$177,000		3	2.00	Exclusive	01/15/2012	View Street Map it Email Info
201-378579	2781 Coral Drive Hebron, KY 41048 Boone County	$108,000		4	2.00	Extended	01/15/2012	View Street Map it Email Info
201-379622	307 Salem Ave Winchester, KY 40391 Clark County	$105,000		3	2.10	Exclusive	01/15/2012	View Street Map it Email Info

Search Results for HUD Homes in KY

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Property Case	Address	Price	Status	Bed	Bath	Listing Period	Bid Open Date	Details
201-380791	3169 North Campbell Bowling Green, KY 42101 Warren County	$145,000		3	2.00	Exclusive	01/17/2012	View Street Map it Email Info
201-383684	1213 Alexandra Pike Fort Thomas, KY 41075 Campbell County	$105,000		3	1.10	Lottery	01/15/2012	View Street Map it Email Info
201-388377	931 Summitridge Ln Erlanger, KY 41018 Kenton County	$102,600		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-392676	190 Hialeah Drive Coxs Creek, KY 40013 Nelson County	$135,900		3	2.00	Extended	01/15/2012	View Street Map it Email Info
201-400108	113 Cedar Crest Ln Frankfort, KY 40601 Franklin County	$102,000		3	2.00	Exclusive	01/15/2012	View Street Map it Email Info
201-402755	123 Springside Ct Frankfort, KY 40601 Franklin County	$106,000		3	2.50	Extended	01/15/2012	View Street Map it Email Info
201-411846	3284 Polo Club Blvd Lexington, KY 40509 Fayette County	$130,000		4	2.10	Lottery	01/17/2012	View Street Map it Email Info
201-412130	6625 Tiger Ct Florence, KY 41042 Boone County	$128,000		3	2.10	Exclusive	01/23/2012	View Street Map it Email Info
201-415083	9203 Aristada Place Crestwood, KY 40014 Oldham County	$120,000		3	1.00	Exclusive	01/15/2012	View Street Map it Email Info
201-415282	3800 Pine Ridge Way Lexington, KY 40514 Fayette County	$115,000		3	2.10	Extended	01/15/2012	View Street Map it Email Info
201-436176	1020 West 5Th Stree Corbin, KY 40701 Whitley County	$103,000		3	2.00	Exclusive	01/15/2012	View Street Map it Email Info

FHA Mortgage Requirements for Louisville Ky First Time Home Buyers (kentuckyfirsttimehomebuyer.com)
Louisville Ky FHA Mortgage Loans (louisvillemortgageguide.com)
Louisville Kentucky First Time Home Buyer (louisvillekymortgage.net)
Do You Have $100? That’s Enough To Buy A Home In Some States! (ac805.wordpress.com)

Written by Louisville Kentucky Mortgage

January 14, 2012 at 3:30 pm

Posted in hud homes in ky

Tagged with Federal Housing Administration, FHA insured loan, HUD Home, Kentucky, Loan, Louisville Kentucky, Mortgage loan, United States Department of Housing and Urban Development

2012 Fort Knox Kentucky and Fort Cambell Ky and all BAH Rates for Kentucky Military

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2012 Fort Knox Kentucky and Fort Cambell Ky BAH Rates for Kentucky Military

Year	Rank	With Dependents		Without Dependents
2012	E1	$900	(+8.3%)	$675	(+8.2%)
2012	E2	$900	(+8.3%)	$675	(+8.2%)
2012	E3	$900	(+8.3%)	$675	(+8.2%)
2012	E4	$900	(+8.3%)	$675	(+8.2%)
2012	E5	$975	(+10.2%)	$735	(+4.3%)
2012	E6	$1,254	(+6.9%)	$942	(+7.2%)
2012	E7	$1,356	(+6.6%)	$1,017	(+6.6%)
2012	E8	$1,464	(+6.3%)	$1,098	(+6.4%)
2012	E9	$1,566	(+4.8%)	$1,176	(+4.8%)
2012	W1	$1,257	(+6.9%)	$945	(+7.1%)
2012	W2	$1,401	(+6.6%)	$1,050	(+6.7%)
2012	W3	$1,536	(+6.4%)	$1,179	(+4.8%)
2012	W4	$1,578	(+4.4%)	$1,281	(+7.0%)
2012	W5	$1,632	(+2.4%)	$1,380	(+6.5%)
2012	O1E	$1,377	(+6.5%)	$1,035	(+6.8%)
2012	O2E	$1,515	(+6.3%)	$1,137	(+6.5%)
2012	O3E	$1,587	(+4.1%)	$1,254	(+6.9%)
2012	O1	$1,005	(+9.5%)	$822	(+5.8%)
2012	O2	$1,248	(+6.9%)	$1,020	(+6.6%)
2012	O3	$1,530	(+6.3%)	$1,182	(+4.8%)
2012	O4	$1,650	(+1.5%)	$1,368	(+6.8%)
2012	O5	$1,734	(-1.4%)	$1,431	(+6.5%)
2012	O6	$1,752	(-1.4%)	$1,536	(+6.4%)
2012	O7	$1,770	(-1.2%)	$1,566	(+6.3%)

Fox News Channel Taping Program for Fort Knox Soldiers at KCTCS College (prweb.com)
United States Army Fort Knox Selects Desktop Alert Mass Notification Platform From FCN (prweb.com)
Is there gold in Fort Knox? Do we care?–Bumped (professorbainbridge.com)
Kentucky Single Family Housing Guaranteed Loan Program USDA and Rural Housing Changes 10/1/2011 (kentuckyusdaloan.wordpress.com)
Kentucky Guaranteed Rural Housing Loans 2012 Update (kentuckyusdaloan.wordpress.com)
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2012 Louisville, Ky BAH Rates Basic Allowance for Housing in Kentucky (kentuckyvaloan.com)

Written by Louisville Kentucky Mortgage

January 9, 2012 at 3:05 am

Posted in BAH RATES

Tagged with Fort Knox, Government, Kentucky, Loan, Louisville VA loans, Mortgage, Mortgage loan, Refinancing, United States, United States Department of Agriculture, va

FHA Mortgage Requirements for Louisville Ky First Time Home Buyers

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FHA Mortgage Requirements for Louisville Ky First Time Home Buyers

Minimum 640 credit score required

Financing to 96.50% of lesser of sales price or appraised value. 3.5% minimum down payment on a Purchase.

Maximum 6% seller-paid items.

Maximum debt ratios of 40/55 with AUS approval.

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

.Must follow Upfront and Annual Mortgage Insurance Premiums Guidelines (see information below).

Upfront and Annual Mortgage Insurance Premiums

Loan Terms Greater than 15 Years

Case numbers on or after Monday, April 18, 2011

LTV less than or equal to 95%

1% annual 1.10 monthly

LTV greater than 95%

1% annual 1.15 monthly

Kentucky FHA home loans for Louisville Ky First Time Home Buyers . I would like to share some other information with you on this subject. Please click below to go to my Best Kentucky FHA Home Loans page to read on the various kinds of Kentucky FHA Loans available to you for Louisville Ky First Time Home Buyers

Basic Kentucky FHA Home Mortgage Requirements for Louisville Ky First Time Home Buyers

Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky (kentuckyusdaloan.wordpress.com)
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Louisville Kentucky Mortgage First Time Home Buyer Expert (louisvillemortgageguide.com)
Current Mortgage Rates in KY today : Current Louisville Kentucky today’s mortgage rates 06/20/2011 (kentuckyfirsttimehomebuyer.com)
How does Kentucky FHA Mortgage Loans Work for Kentucky First Time Home Buyers? (kentuckyfirsttimehomebuyer.com)
Frequently Asked Questions about FHA Kentucky Home Loans (louisvillekymortgage.net)
Louisville Kentucky FHA Seller Contributions and Closing Costs (louisvillemortgageguide.com)
Louisville Kentucky FHA Streamline Requirements (louisvillemortgageguide.com)
FHA/VA KHC USDA Kentucky Mortgage: (louisvillekentuckymortgagerates.com)
Frequently Asked Questions about FHA Kentucky Home Loans (kentuckyfirsttimehomebuyer.com)
FHA Loans in louisville, kentucky (louisvillemortgageguide.com)
Louisville Ky First Time Home Buyer (louisvillekymortgage.net)
Basic FHA Home Mortgage Requirements for Louisville Ky First Time Home Buyers (louisvillemortgageguide.com)
Basic FHA Home Mortgage Requirements for Louisville Ky First Time Home Buyers (kentuckyfirsttimehomebuyer.com)
Down Payment and Closing Costs Assistance (louisvillekentuckymortgagerates.com)
Louisville Kentucky VA Home loans (kentuckyvaloan.wordpress.com)
FHA Mortgage Requirements for Louisville Ky First Time Home Buyers (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

November 13, 2011 at 2:12 am

KHC Mortgage Interest Rates 2011

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KHC Mortgage Interest Rates as of 10/24/2011, 10:00 a.m. ET

Rates subject to change without notice.

Secondary Market Interest Rates

NEW – EFFECTIVE 10/17/11 - PROGRAM CHANGED TO ZERO POINT
Only available for FHA Mortgagee or Delegated Lenders
Minimum 640 credit score required

Loan Type	Rate without DAP*	Rate with DAP
FHA only	4.250%	4.375%
RHS only	4.250%	4.375%
VA only	4.250%	4.375%

* DAP – Down Payment Assistance Program, including Regular DAP and HOME DAP

MRB Interest Rates

For all approved KHC lenders

640+ Credit Score Mortgage Revenue Bond (MRB) Interest Rates

KHC-funded down payment assistance may be utilized with these rates

Loan Type	Regular Rate	Zero-Point Rate
*Government Rates only	4.375%	4.750%

* Government includes FHA, RHS, and VA.

Interest Rates KHC Mortgage Interest Rates as of 06/06/2011, 11:00 a.m (kentuckyfirsttimehomebuyer.com)
Current kentucky housing KHC interest rates (louisvillekymortgage.net)
KHC’s First Mortgage Government Loan Products (louisvillekentuckymortgagerates.com)
KHC Mortgage Interest Rates as of 08/30/2011 (kentuckyfirsttimehomebuyer.com)
KHC Mortgage Interest Rates as of 09/07/2011 (kentuckyfirsttimehomebuyer.com)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: KENTUCKY USDA RURAL DEVELOPMENT LOANS ZERO DOWN (via Louisville Ky Mortgage Rates) (kentuckyvaloan.wordpress.com)
What Credit Score do You Need to qualify for a FHA VA KHC USDA Kentucky Mortgage Louisville Kentucky (louisvillemortgageguide.com)
Kentucky’s new second-time homebuyer, and affordable mortgage (KENTUCKY HOUSING) (kentuckyfirsttimehomebuyer.com)
Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky (kentuckyusdaloan.wordpress.com)
Kentucky FHA, VA, KHC, Rural Housing First Time Homebuyers Kentucky (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

October 24, 2011 at 2:15 pm

Posted in KHC RATES

Tagged with Credit score, Federal Housing Administration, Interest rate, Kentucky, Kentucky Housing, khc, Loan, Mortgage loan, Revenue bond, Secondary market

Louisville Kentucky Down Payment Assistance and Closing Costs

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Louisville Kentucky Down Payment and Closing Costs Assistance

Louisville Kentucky 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 needs.

Louisville Kentucky Regular Down payment Assistance Program (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 6 percent. A DAP of $6,000 over ten years at 6 percent interest would equal a payment of $66.61.
Available to all KHC first-mortgage loan recipients who are first-time home buyers in non-targeted counties and first and second-time home buyers in targeted counties.

HOME-DAP

Purchase price up to $195,700.
Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.

HOME Special Program

Purchase price up to $195,700.
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Eligible borrowers include:
- Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
- Households where at least one of the home buyers is age 62 or older.

HOME Family Program

Purchase price up to $195,700.
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Eligible borrowers include:
- Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

More about Louisville Kentucky down payment and closing costs

No liquid asset review and no limit on borrower reserves for Regular DAP.
Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
Specific credit underwriting standards may apply to down payment programs.

Down Payment and Closing Costs Assistance (kentuckyusdaloan.wordpress.com)
What are These New Programs? – Income-Based Repayment and Public Service Loan Forgiveness (education.com)
Home Ownership LOUISVILLE METRO HOUSING (louisvillekentuckymortgagerates.com)
Previous Post (kentuckyusdaloan.wordpress.com)
CALHFA Down payment assistance program has new income guidelines. (vistashortsale.wordpress.com)
Kentucky VA Home Loans, Zero Down (kentuckyvaloan.wordpress.com)
Kentucky Rural Housing USDA Guidelines 2011 (kentuckyfirsttimehomebuyer.com)
Kentucky Rural Housing Service (RHS) program Mortgage (kentuckyusdaloan.wordpress.com)
Kentucky VA Home Loans Approval Criteria (kentuckyvaloan.wordpress.com)

Written by Louisville Kentucky Mortgage

September 17, 2011 at 4:56 pm

Posted in Down Payment assistance and closing costs

Tagged with Down payment, FHA, First-time buyer, Home, HOME Investment Partnerships Program, Kentucky, khc, Loan, louisville, Mortgage loan, Payment, Real Estate, Social Security Disability Insurance, Supplemental Security Income

How does Kentucky FHA Mortgage Loans Work for Kentucky First Time Home Buyers?

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How does Kentucky FHA Mortgage Loans Work for Kentucky First Time Home Buyers?

An Kentucky FHA loan is backed by the Federal Housing

Administration, which means if a borrower defaults on the

loan, the FHA guarantees it will pay the lender. As a result,

lenders will issue larger loan amounts and give you lower rates.

Can anyone get an FHA Loan?

Practically everyone can get an FHA loan. Typically, it does

not matter how much or how little you make. What does matter is how much you wish to borrow. There are limits to how much you can borrow, and these depend on your county or state. To check how much you can borrow in your area, visit the HUD’s Web site:

http://kentuckyfirsttimehomebuyer.com/2011/08/24/louisville-ky-fha-mortgage-loans/

What are the benefits of an Kentucky FHA Loan?

• Low down payment: It can be as low as 3.5% of the purchase price.

• Looser credit standards: You do need decent credit, but you do not need perfect credit.

• Low closing costs: Most can be included in the loan!

• Easier to qualify for than a conventional loan

How does an Kentucky FHA Loan work?

An FHA loan is a home loan backed by the

Federal Housing Administration

. This means that the FHA promises to pay the lender if a borrower defaults on their FHA loan.

In order to fund this guarantee, the FHA requires that you

pay mortgage insurance. Usually if a borrower is putting less than 20% down, he or she will be required to pay mortgage

insurance.

The minimum down payment required for an Kentucky FHA loan is

3.5%

(as of April 2011), and most borrowers choose to put less money down.

The borrower pays the mortgage insurance every month at a low rate of

1.15% of the loan amount. The FHA also requires an upfront mortgage insurance premium (MIP), which is 1.0%

of the loan amount. This fee is paid at closing and can be financed into the loan.

Does my income matter?

Generally, people of all income levels may qualify for an FHA mortgage loan. However, your

debt -to -income ratio

is an integral part of qualification.

These rules are established in order to ensure you are not taking on a bigger load than

you can handle. In other words, they want to make sure that you can afford your monthly

mortgage payment.

Calculations

: Our Specialists will divide your FHA mortgage by your gross monthly income to get the first ratio. This ratio should not exceed 29%.

The second ratio is your FHA mortgage payment and other liabilities, such as car payments, credit card payments and any other monthly obligations you have that are present on your credit report, which are added up and divided by your gross monthly income. This ratio should not exceed

41%.

There are some exceptions to this rule. For example, if you are able to make a down

payment of more than 3.5% of the purchase price, then a ratio higher than 29/41% might

be accepted. Just ask your Kentucky FHA Specialist if you have any questions about your debt -to -income ratio — we are here to help!

Where does my job stability factor in?

It is important to the FHA that you show you

can

maintain consistent employment

Typically, to qualify for an Kentucky FHA loan you

have to have two years of consistent work in

the same field or with the same employer, or

maintain a steady income.

If you recently started a new job, you may still

qualify. You either need past experience in that

field, or the job should be in the same field as

your previous job.

How does credit come into play?

Although you do not need perfect credit, you

do need decent credit history

. By looking at several areas of your past credit, the lender can determine whether you are able to make timely mortgage payments.

First, the FHA likes to see

two lines of credit

on your credit report. Examples of credit report items are a credit card issued through MasterCard or Visa or a credit card for a department store such as JCPenny or Younkers.

If you do not have any credit lines established, the Kentucky FHA will allow substitute payments such

as car insurance, utility, telephone or cell phone, previous rental or mortgage, etc.

The second area is

late payments. The underwriter will look at the overall pattern of your

credit payments, instead of focusing on specific late payments.

So if you had a period of financial difficulty, you should be fine as long as you have

maintained a good pattern since then.

The good news is that if you have filed for

Chapter 7 Bankruptcy in the past, you are not

automatically disqualified from getting an FHA loan. The Kentucky FHA requires that at least two years must have passed since the discharge date rather than the filing date.

If you are still paying on a

Chapter 13 Bankruptcy

, you may still qualify as long as you have made good payments for at least a year.

In both situations, you also must have re-established good credit, have good job stability and qualify financially.

Typically, persons who have a

foreclosure

upon their property within the past three years will not qualify for an FHA loan. However, if the foreclosure was caused by extenuating circumstances out of your control, you may still be eligible. The underwriter may grant an exception if you have good credit and submit a letter of explanation.

However, you may still qualify for an FHA loan if it is not yet paid off, but you will not be able to close until it is.

If you have

debt in collections, whether medical or non-medical, you may still be eligible for an FHA loan. Medical accounts in collections do not have to be paid in full in order to get

an FHA loan.

Non-medical debts may be overlooked if you show substantial documentation explaining the reasons for the debts.

In order to get an FHA loan, you cannot have any

delinquent federal debts, such as a student loan or tax lien. In order to be eligible, you must make sufficient arrangements to pay

off the debts and submit the plan in writing.

Whether you have any

judgments, collections or federal debts

will also factor into approval.

judgment, which is a court ordered lien against a home you may own, must be paid in full before you close on your home.

Louisville Kentucky FHA Streamline Requirements (louisvillemortgageguide.com)
Frequently Asked Questions about FHA Kentucky Home Loans (louisvillekymortgage.net)
Basic FHA Home Mortgage Requirements for Louisville Ky First Time Home Buyers (kentuckyfirsttimehomebuyer.com)
>FHA to increase the FHA monthly mortgage insurance (Kentucky) (louisvillekentuckymortgagerates.com)
Kentucky FHA Mortgage Insurance Premiums 2011 (louisvillemortgageguide.com)
Obama’s housing scorecard (money.cnn.com)
KHC’s First Mortgage Government Loan Products (louisvillekentuckymortgagerates.com)
Kentucky Hud Reo Properties Eligible for the $100 Down Payment Incentive (louisvillemortgageguide.com)
Louisville Ky FHA Loans (louisvillekymortgage.net)
Kentucky Mortgage Approval Article (kentuckyfirsttimehomebuyer.com)
FHA Loans in louisville, kentucky (louisvillemortgageguide.com)
Current Kentucky mortgage rates today August, 31 2011 (kentuckyfirsttimehomebuyer.com)
FHA Mortgage Insurance for Kentucky Mortgage Loans (louisvillemortgageguide.com)

Written by Louisville Kentucky Mortgage

September 1, 2011 at 3:53 am

Posted in FHA Home Loans in Kentucky, FHA Loan Checklist for Approval, FHA Loans, FHA Loans Kentucky Housing First time home buyer, FHA/VA Louisville Kentucky

Tagged with Closing costs, Down payment, Federal Housing Administration, FHA insured loan, FHA loan, Kentucky, KHC’s (Kentucky Housing ) First Mortgage Government, Loan, louisville, Louisville Kentucky, Louisville Kentucky First Time Home Buyer, Mortgage loan, United States Department of Housing and Urban Development

Credit Scores and the Kentucky USDA Rural Development Loan Program

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Credit Scores and the Kentucky USDA Rural Development Loan Program

The USDA Rural Development Loan Program is by far the most credit score friendly loan program currently available. While USDA is willing to work with scores lower than 640 most lenders won’t. Thus, pragmatically the minimum credit score required by USDA is 640.

For homebuyers with a minimum credit score of 640 lenders may streamline the credit approval process normally required as part of the underwriting process. This means that a borrower:

	With a lack of credit “depth” will not have to document non-traditional credit items such as utility or insurance payments
	A negative past credit history may allow the Underwriter to not request letters of explanation for the cause of the past challenges
	Collection accounts can remain open provided the Underwriter believes it unlikely that the account will eventually turn into a judgment

However, USDA is not willing to overlook certain overtly negative credit items even when the credit scores are over 640. For instance borrowers with any of the following adverse past credit should not expect to obtain credit approval using the USDA loan program:

	Foreclosure or short sale within the last 3 years
	Chapter 7 bankruptcy discharged within the past 3 years
	Chapter 13 bankruptcy debt restricting plan completed within the last 12 months
	Late mortgage payments within the last 12 months
	Applicant or co-applicant delinquent on a federal debt; such as taxes, student loans, or previous agency loan (i.e. VA loan in which the eligibility was forfeited due to a foreclosure)

USDA may be willing to give a borrower an exception to a past bankruptcy or foreclosure prior to the three year period provided the borrower can document the cause of the past negative credit experience as being related to an illness or job loss and unlikely to reoccur.

Once the credit score exceeds 660, USDA allows this score to be considered as justification for allowing the borrowers debt-to-income-ratio to exceed the target ratios of 29% for the housing costs and 41% for the total debt ratio. Frequently USDA will approve loans where the housing ratios are in the high 30% range and total debt ratios are in the high 40% range.

Bottom line the Kentucky USDA Rural Development Loan Program is more flexible in approving a perspective borrower than any other loan program. But like any loan program today, the Loan Officer shouldn’t assume that this level of credit flexibility will result in an automatic positive underwriting decision if the Underwriter doesn’t feel strongly that the borrowers chance of success at homeownership is strong.

Kentucky Mortgage Loans Guidelines 2011 (kentuckyfirsttimehomebuyer.com)
Kentucky Rural Housing USDA Guidelines 2011 (kentuckyfirsttimehomebuyer.com)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: KENTUCKY USDA RURAL DEVELOPMENT LOANS ZERO DOWN (louisvillekentuckymortgagerates.com)
Kentucky Rural housing and Kentucky USDA loan Frequently Asked Questions (kentuckyfirsttimehomebuyer.com)
3 Things The Lender Looks At When You Apply For A Kentucky USDA Rural Development Home Loan (kentuckyfirsttimehomebuyer.com)
100% Financing in Kentucky for Home Loans (kentuckyusdaloan.wordpress.com)
Kentucky Rural Housing USDA Guidelines 2011 (via Kentucky First Time Home Buyer Mortgage Loan) (louisvillemortgageguide.com)

Written by Louisville Kentucky Mortgage

August 1, 2011 at 3:07 am

Better lock in a mortgage rate now Kentucky – USA Today

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Better lock in a mortgage rate now Kentucky - USA Today.

Better lock in a mortgage rate now Kentucky

by Sandra Block on Jul. 29, 2011, under USA Today News

If you’re considering buying a home or planning to refinance, here’s some advice: lock in a Kentucky mortgage rate. Now.

Kentucky Mortgage rates, which have been at historic lows for months, could shoot higher if lawmakers fail to reach an agreement to raise the debt ceiling by Tuesday, says Greg McBride, senior financial analyst for Bankrate.com.

A government default would cause Treasury bond prices to plummet, and yields would rise. “Uncle Sam’s borrowing rate is the baseline from which all consumer and business borrowing rates are determined,” McBride says. “If Uncle Sam’s costs go up, borrowing costs go up for everybody.”

Even if the default is short-lived, the ratings agencies have signaled they’ll downgrade U.S. debt. That would also drive up consumer rates, because the government would be forced to pay higher rates to bond investors.

“Consumers might look back on this period six months from now and regret it if they don’t take action,” says Mona Marimow, senior vice president for LendingTree, a loan comparison website.

So far, the debt-ceiling fracas hasn’t affected mortgage rates. The average rate for a 30-year fixed-rate mortgage in Kentucky for the week ended July 28 was 4.55%, only slightly higher than a week earlier, according to Freddie Mac. Rates slipped on Friday after the Commerce Department reported that the economy grew at a lower-than-expected 1.3% in the second quarter.

Borrowers who want to lock in low rates will need to act fast, says Keith Gumbinger, vice president of HSH, a publisher of mortgage data. “If the government does default, it’s going to be hard to lock in an interest rate,” he says.

Call 502-905-3708 click above for free mortgage application and approval

Why you should lock in a mortgage rate now (usatoday.com)
Current Louisville Kentucky mortgage rates today 07/29/2011 (louisvillemortgageguide.com)
Current Louisville Kentucky today’s mortgage rates 07/27/2011 (kentuckyfirsttimehomebuyer.com)
Current Louisville Kentucky mortgage rates today 07/25/2011 (louisvillekymortgage.net)
HSH.com Weekly Mortgage Rate Radar: Mortgage Rates Fell This Week (prweb.com)
Latest Mortgage Rate Trends (themortgagepot.com)
30 Year Mortgage Rates – Will We Soon See Sub 4% 30 Year Mortgages in the Face of the Debt Ceiling Debate? (johnmurphyreports.com)
Current Louisville Kentucky Mortgage Rates for today 07/25/2011 (louisvillekentuckymortgagerates.com)
Current Louisville Kentucky mortgage rates today 07/29/2011 (louisvillekymortgage.net)
Obama’s day: Waiting on Congress – USA Today (news.google.com)

Written by Louisville Kentucky Mortgage

July 30, 2011 at 12:39 pm

Kentucky Mortgage Loans Guidelines 2011

with 12 comments

Pressured by federal regulators to write quality loans, lenders have little choice but to follow underwriting marching orders issued in rapid succession this year by federal mortgage insurers.

Here’s a rundown.

Fannie Mae

Effective Dec. 13, among other underwriting updates, Fannie Mae is reducing debt-to-income ratios, the amount of a borrower’s gross monthly income that goes toward paying all debts. Fannie is dropping the ratio from 55 to 45 percent and the debt must include once exempt revolving debt with a balance of 10 or fewer payments.
Also, if the lender can’t verify the amount of a minimum monthly payment on any revolving credit, it must assume the payment is 5 percent of the balance and include that amount in the debt-to-income ratio.
Once excluded, but now also included in debt-to-income ratio, are payments on decades-old mortgages with only 10 payments (or more) remaining. That will make it tougher for older home owners to buy a second home.
Borrowers who have gone through foreclosure can forget buying a home with a Fannie-backed loan for seven years. That reduces the pool of mortgages available to consumers who’ve suffered a foreclosure.

Freddie Mac

Freddie Mac is considering guidelines similar to big sister Fannie’s.

Also, effective Dec. 1, Freddie Mac lenders now will be required to consider a borrower’s credit report inquiries made in the previous 120 days, rather than the prior 90 days as was required before the new rule.

If the borrower was granted additional credit, the debt adds to the debt-to-income ratio.

Federal Housing Administration (FHA)

Borrowers underwritten out of the running for Fannie Mae and Freddie Mac guidelines on conforming loans may have to consider low-down payment Federal Housing Administration loans. However, those loans are already tougher to land than ever and they come with mortgage insurance that recently rose in price.

FHA loans have become the go-to mortgage for less financially fit borrowers who likely would have shopped the now defunct subprime market.

In October, the FHA began to require credit scores of at least 500, creating a minimum where none previously existed. Borrowers with scores ranging from 500 to 579, must come up with 10 percent down. Borrowers who want an FHA loan with only 3.5 percent down must have a score of more than 580.

FICO scores, ranging from 300 to 850, are a numerical rendition of a borrowers’ creditworthiness.

Individual lenders can set their own credit score requirements and several lenders recently pushed the minimums to 640 on FHA loans.

Earlier this year, the FHA also boosted the upfront mortgage premium to 2.25 percent of the loan amount, up from the previous 1.75 percent, the second increase in the past two years.
Also earlier this year, a seller’s contribution to FHA loan closing costs was slashed from 6 percent to 3 percent, after critics said the higher maximum encouraged sellers to mark up the price to compensate for their concession.

If you have questions about a mortgage, give us a call at 502-905-3708 or email us at kentuckyloan@gmail.com

Written by Louisville Kentucky Mortgage

July 26, 2011 at 12:13 pm

Posted in Kentucky Mortgage Guidelines updated 2011

Tips for Shopping for A Louisville Kentucky Mortgage

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Tips for Shopping for A Louisville Kentucky Mortgage

Printable version (94 KB PDF) | ESPAÑOL

5 Tips for Shopping for a Mortgage Photo of house keys on top of a mortgage application.

Know what you can afford.

Review your monthly spending plan to estimate what you can afford to pay for a home, including the mortgage, property taxes, insurance, and monthly maintenance and utilities. Make sure you save for emergencies. Plan ahead to be sure you will be able to afford your monthly payments for several years. Check your credit report to make sure that the information in it is accurate. A higher credit score may help you get a lower interest rate on your mortgage.

Shop around–compare loans from lenders and brokers.

Shopping takes time and energy, but not shopping around can cost you thousands of dollars. You can get a mortgage loan from mortgage lenders or mortgage brokers. Brokers arrange mortgage loans with a lender rather than lend money directly; in other words, brokers sell you a loan from a lender. Neither lenders nor brokers have to find the best loan for you–to find the best loan, you have to do the shopping. For more information on mortgage shopping, see Looking for the Best Mortgage–Shop, Compare, Negotiate.

Understand loan prices and fees.

Many consumers accept the first loan offered and don’t realize that they may be able to get a better loan. On any given day, lenders and brokers may offer different interest rates and fees to different consumers for the same loan, even when those consumers have the same loan qualifications. Keep in mind that lenders and brokers also consider the profit they receive if you agree to the terms of a loan with higher fees, higher points, or a higher interest rate. Shopping around is your best way to avoid more expensive loans.

Know the risks and benefits of loan options.

Mortgages have many features–some have fixed interest rates and some have adjustable rates; some have payment adjustments; on some you pay only the interest on the loan for a while and then you pay down the principal (the loan amount); some charge you a penalty for paying the loan off early; and some have a large payment due at the end of the loan (a balloon payment). Consider all mortgage features, the APR (annual percentage rate), and the settlement costs. Ask your lender to calculate how much your monthly payments could be a year from now, and 5 or 10 years from now. A mortgage shopping worksheet (33 KB PDF) can help you identify the features of different loans. Mortgage calculators can help you compare payments and the equity you could build with different mortgage loans.

Get advice from trusted sources.

A mortgage loan is one of the most complex, most expensive financial commitments you will ever assume–it’s okay to ask for help. Talk with a trusted housing counselor or a real estate attorney that you hire to review your documents before you sign them. You can find a list of counseling resources at NeighborWorks and on the U.S. Department of Housing and Urban Development’s (HUD) website or by calling (800) 569-4287.

http://ahref=

Ky FHA Guidelines/Bankruptcy (louisvillemortgageguide.com)
Louisville Kentucky FHA Seller Contributions and Closing Costs (louisvillemortgageguide.com)
Current Louisville Kentucky mortgage rates today 07/15/2011 (louisvillekymortgage.net)
Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: KENTUCKY USDA RURAL DEVELOPMENT LOANS ZERO DOWN (via Louisville Ky Mortgage Rates) (kentuckyvaloan.wordpress.com)

Written by Louisville Kentucky Mortgage

July 17, 2011 at 8:24 pm

Posted in Uncategorized

Tagged with Credit score, Interest rate, Kentucky, Loan, Louisville Kentucky, Mortgage broker, Mortgage loan, United States Department of Housing and Urban Development

Kentucky Fannie Mae Homepath

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502-905-3708 for your free mortgage preapproval for Fannie Mae Homepath in KY!

HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.

Benefits to You, the Borrower

Low down payment and flexible mortgage terms (fixed–rate, adjustable rate, or interest–only).
Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
No lender-requested appraisal.
No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
Expanded seller contributions for closing costs allowed.
Available for primary residences, second homes and investment properties.
Many condo project requirements are waived; ask your lender for details.
For more information, contact a HomePath Mortgage lender or click here for the Home Buyers Guide.

HomePath Renovation Mortgageallows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation – up to 35% of the as completed value, no more than $35,000.Benefits to You, the Borrower

Low down payment and flexible mortgage terms (fixed- rate or adjustable-rate).
Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
Renovation amount based on appraisal “as completed” value.
No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
Expanded seller contributions for closing costs allowed.
Available for primary residences, second homes, and investment properties.
Many condo project requirements are waived; ask your lender for details.
For more information about the renovation process, contact a HomePath Renovation Mortgage lender.

Louisville Ky FHA Loans (louisvillekymortgage.net)
>FHA to increase the FHA monthly mortgage insurance (Kentucky) (louisvillekentuckymortgagerates.com)
Kentucky FHA, VA, KHC, Rural Housing First Time Homebuyers Kentucky (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

June 30, 2011 at 4:07 pm

Kentucky Rural Housing USDA Guidelines 2011

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Kentucky Rural Housing USDA Guidelines 2011

Property Eligibility (GRH Purchase Transactions Only)

• In order for a property to be eligible for a Kentucky Rural Development guaranteed

loan, the property must be located in a rural designated area as defined in Rural Development Instruction §1980.312. You may view eligible areas on USDA Rural Development’s web-site at:

http://eligibility.sc.egov.usda.gov

• Property must be a nonfarm, non-income providing tract.

• According to Rural Development Instruction §1980.313 (e) “Generally,

the value of the site must not exceed 30 percent of the total value of the property. When the value of the site is typical for the area, as evidenced by the appraisal, and the site cannot be subdivided into two or more sites, the 30 percent limitation may be exceeded.”

• Inspection requirements on Rural Development properties are as follows:

New Construction – If the Builder is providing a one-year warranty, the

following inspections are required:

•

Framing Inspection

•

Footing Inspection

•

Final Inspection

•

Thermal Certification

If a 10-year Builder Warranty is provided, only a Final Inspection and a

Thermal Certification are required

Existing properties must meet the current requirements of HUD Handbooks 4150.2 and 4905.1, typically verified through an RHS Adequacy Certification (Existing Dwelling Inspection Report), or by the appraiser certifying in the comments section of the appraisal that the property meets HUD Handbooks 4150.2 and 4905.1.

•

Required Repairs/Escrow Agreements

When repairs are required for structural or mechanical deficiencies that exceed the Seller’s contractual obligation, can assist borrowers. allows the ability to finance required improvements based on an “as improved” appraised value, in combination with an escrow hold-back at closing.

Unless the deficiency is a significant item that negatively impacts the safety or livability of the dwelling, loan closing need not be delayed. For those deficiencies that can be corrected post-closing, Chase will require, in addition to our standard closing items:

•

A corrected FNMA 1003 (Uniform Residential Loan Application) with the amount of financed improvements listed under the “Repairs” Section.

•

Estimates/contracts for all repairs financed with loan proceeds.

•

A -approved escrow hold-back agreement signed by buyer and

seller at closing.

•

A collection of one and one-half times of the estimated repair cost

retained at closing to be disbursed by the settlement agent.

•

Final inspection of required repairs will be required.

Rural Development requires all repairs to be completed prior to their issuance of the final Loan Note Guarantee (Rural Development Form 1980- 17). However, external repairs delayed by weather related issues must be completed within 120 days of loan closing as outlined inKentucky Rural Housing USDA Rural Development Instruction §1980.315 – Escrow accounts for exterior development.

Kentucky Rural Housing USDAUNDERWRITING GUIDELINES

For loans closing with funds, it is our policy to have repairs for internal deficiencies completed within 30 days of loan closing. As Rural Development will require a final inspection once the work is completed, please include this expense as part of the escrow holdback.

•

Maximum Interest Rate (GRH Purchase Transactions Only)

The maximum interest rate for the Rural Development Guaranteed Rural Housing Program is defined as the FNMA 90-day actual-actual yield requirements plus 60 basis points, rounded up to the nearest quarter percent.

RURAL HOUSINGKentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

Assumability

The Guaranteed Rural Housing loan is assumable subject to the following

conditions: Kentucky Rural Housing USDA

•

Subject property and applicant(s) must meet all criteria for the Rural

Development Guaranteed Housing Program.

•

Applicant (buyer) must be credit-approved by •

In accordance with Rural Development (FmHA) Instruction 1980-D,

no release of liability will be granted to the original Borrower(s).

•

A new title policy will be required at closing.

•

Normal application, processing, and transfer fees will apply.

RURAL HOUSINGKentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

INCOME VERIFICATION/REQUIREMENTS

•

The Guaranteed Rural Housing loan is documented with both Rural Development and FNMA forms. (Rural Development forms are provided in the Forms Section of this manual.)

•

All sources of income must be verified using FNMA Form 1005 – “Verification of Employment“. Rural Development, as outlined in Rural Development Instruction §1980.351, will typically review the past 24 months to determine both Income Eligibility, as well as compliance with Monthly Housing (29%) and Total Debt (41%) Ratios. Usually, Chase requires verified primary sources of income for a 24-month period to confirm loan approval.

•

Alternate documentation is permitted in place of FNMA Form 1005. Alternate documentation must include: two years W-2’s, 30 days paystubs with year-to-date information, and a Processor’s Certification of Employment.

•

The following should serve as a guideline for handling income-related issues:

•

Full Time – For borrowers whose income is derived from full-time

employment, two (2) years of full employment history must be verified

on FNMA Form 1005 (Verification of Employment).

•

Borrowers are not required to have 24 months continuous

employment with their current employer.

•

Where there has been a change in employers in the last 24 months, the borrower must explain any gap in employment that extends beyond one (1) month.

•

Two (2) years of tax returns will only be required for:

•

Self-employed borrowers

•

Commissioned borrowers

•

Borrowers employed by a relative or closely-held family

business.

RURAL HOUSING Kentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

Borrowers who are not commissioned, but need to

validate their expenses.

•

Part-Time – Part-time or second job income with duration of 24 months

may be used.

•

Overtime and Bonus Income – Overtime and bonus income can be

used to qualify the applicant if the employer verifies that the applicant has received it during the last 24 months and indicates that the overtime or bonus income will in all probability continue. The lender must develop an average of the last 24 months overtime and bonus income to determine the amount of income that can be considered in evaluating the borrower’s qualifications.

•

Self-Employed Income – Two (2) previous years 1040′s are required.

They must be signed and certified by the applicant. Additionally, a year-to-date Profit & Loss Statement with Balance Sheet, prepared and signed, must be submitted. If the applicant has 25 percent or more ownership interest in any business entity, the applicant must also provide the most recent two (2) years’ business tax returns (Corporate, Sub-S Corporate, or Partnership) along with a current Profit and Loss Statement with a Balance Sheet prepared and signed by an accountant.

•

Alimony, Child Support, and Separate Maintenance – Chase

requires documentation that child support, alimony, or separate maintenance will continue for three (3) years after the date of the mortgage application or it will not be considered as income. The borrower must also provide evidence that the funds have been received for the last 12 months. Acceptable evidence includes deposit slips, canceled checks, court records, or tax returns.

•

Retirement Income – Retirement income, i.e., pensions, annuities,

401K distribution, etc., may be verified by letters from the organizations providing the income, copies of the retirement award letters (with photocopies of canceled checks attached), tax returns, or IRS W-2 forms. This evidence must confirm a continuation of this income for a minimum of three (3) years.

RURAL HOUSING Kentucky Rural Housing USDA

UNDERWRITING GUIDELINES

•

Social Security Income – Acceptable verification includes a

photocopy of the Social Security Administration’s award letter or copies

of the borrower’s last 2 bank statements to confirm the

regular deposit of the payments. Benefits that have defined expiration dates must have a remaining term of at least three (3) years to be considered as income.

•

Disability Income – Disability income will be considered acceptable

income provided it can be documented by furnishing a recent copy of respective letter of benefits or allotment setting forth the terms of the income. The benefits must be on-going for a minimum of three (3) years.

•

Unemployment And Public Assistance Benefits – Unemployment

And Public Assistance benefits will be considered as income if they are properly documented by letters or exhibits by the paying agency. The amount, frequency and duration of payments must be stated in the verifying documents. If an individual receives unemployment benefits as a regular part of his/her income, Chase requires copies of tax returns for the past two (2) years to establish a history of receipt. This income must be documented as on-going for a minimum of three (3) years.

•

Dividends/Interest Income – Dividends and interest may be used as

income provided the assets that are generating the dividend/interest income will not be used for the down payment or closing costs on the proposed loan. The applicant must provide tax returns for the previous two (2) years along with verification of current assets via bank statements, verification of deposits, etc. This income will be averaged over two (2) years or calculated at current market interest rates, whichever is less.

Kentucky Rural Housing USDA

3 Things The Lender Looks At When You Apply For A Kentucky USDA Rural Development Home Loan (kentuckyfirsttimehomebuyer.com)
Paje urges public to support rural development initiatives (tuklasinnatin.wordpress.com)
No Down Payment Product for Rural Buyers – USDA Loans (keciabland.wordpress.com)
$14 Billion in No Money Down Guaranteed Loans for Rural Homebuyers (theraleighmortgageguy.com)
Sustainable Land Use and Rural Development in Mountain Areas at Hohenheim University in Stuttgart (chimalaya.org)

Written by Louisville Kentucky Mortgage

June 30, 2011 at 10:17 am

Posted in First Time home Buyer PRgoams, Home Buying And Down Payment Assistance Programs In Kentucky, Kentucky Rural Housing USDA Guidelines 2011, Kentucky USDA Loan Adjusted Maximum Income Limits by County, Kentucky USDA Loans, Kentucky USDA/Rural Housing Areas, rhs loans kentucky, Rural Housing Loans No Money Down Program

Tagged with Federal Housing Administration, Government, Kentucky Rural Housing USDA Guidelines 2011, kentucky usda lenders, KHC’s (Kentucky Housing ) First Mortgage Government, Loan, Louisville Kentucky, Louisville Kentucky First Time Home Buyer, Mortgage loan, United States Department of Housing and Urban Development, Zero down home loans

First Time Home Buyer Programs Louisville Kentucky

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First Time Home Buyer Programs Louisville Kentucky

So, who is a Louisville Kentucky first time home buyer? A first time home buyer is defined as an individual, who has not had an ownership interest in a home within the last three years. If you fit this definition, you might be eligible for a home buyer grant. Even if you don’t, you can find hundreds of charity organizations that are listed here ready and able to help you achieve your dreams of home ownership with financial assistance.

To learn more about these assistance programs, just follow the links that interest you.

Buying your first Home – Louisville Kentucky mortgages, down payment assistance and first time home buyer grants for buying Kentucky real estate.

Research the available mortgages and home loan programs for buying Kentucky real estate.

Useful Websites for Kentucky Mortgage Applicants

Kentucky First Time Home Buyer Programs

Getting a property in Kentucky may be one of the smartest decisions you will ever make. Kentucky first time home buyer programs give simple programs for those who are buying a house for the first time.

They help first time home buyers offering programs to assist first time home buyers purchase houses. Using their help you can qualify for low interest rates and reduced tax rates through the first time home buying program. There are US government state offerings and low down costs loans available to qualified first time buyers and many more options.

Most Kentucky first time home buyer programs include the Federal Housing Administration (FHA and the Veterans Administration (VA loans.

View the list below of Kentucky first time home buyer programs:

Covington Homebuyer Assistance Program

Fayette County Local Development Corporation First Time Homeowners Assistance Program

Jefferson County Home Ownership Assistance Program

Kentucky FHA Home Loan

Kentucky First Time Home Buyer Loans

Kentucky Rural Home Loan

Kentucky VA Home Loan

Louisville New Construction Home Ownership Program

Multi Counties REACH Inc First Key DownPayment Assistance Program

Multi Counties- The Center For Women and Families Inc. Common Wealth Individual Development Account Program

I offer most of the first time home buyers programs throughout Kentucky.

Call me to discuss these programs at 502-905-3708 or email us at kentuckyloan@gmail.com

Click on link to for your free prequalification–5 minutes pre approvals

Current Louisville Kentucky mortgage rates today 06/25/2011 (louisvillekymortgage.net)
Basic FHA Home Mortgage Requirements for Louisville Ky First Time Home Buyers (louisvillemortgageguide.com)
Louisville Kentucky Mortgage First Time Home Buyer Expert (louisvillemortgageguide.com)

Credit Fico Score for a Kentucky Mortgage FHA VA KHC

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Tuesday, June 21, 2011

Fico Score for Kentucky Mortgage

A FICO score rating is a credit rating “number” given to consumers. FICO stands for Fair, Isaac and Company and the FICO score rating was developed in 1989. This is a score that is used by lenders sometimes separate from or in addition to a score provided by the three major Credit Reporting Agencies – Experian, TransUnion and Equifax(although Equifax is affiliated with FICO so they will provide you with a FICO score when requesting a credit report).If you don’t know what your FICO score is, you should find out. The reason why this is important is because lenders will determine the type of loan they will offer you based on your credit history, employment history, other factors, credit reports and the FICO score. The numbers range between 350 and 800. The “average” score is about 725 to 750.How is a FICO Score / Rating Determined?

Here’s general guideline of what the FICO score / rating numbers mean:

750 to 850 – Excellent

660 to 749 – Good

620 to 659 – Fair

350 to 619 – Poor

How is the FICO score rating determined? As a general rule, following factors help determine your FICO score:

35%, punctuality of payment in the past (only includes payments later than 30 days past due)

30%, the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)

15%, length of credit history

10%, types of credit used

10%, recent search for credit and/or amount of credit obtained recently

How to Improve Your FICO Score / Rating?

The following tips are recommended by FICO and credit reporting agencies to improve your FICO score and credit rating:

The most obvious tip: Pay your bills on time. Delinquent payments and collections can have a significantly negative impact on your FICO score.

If you have missed payments, get current and stay current.

Pay off debt rather than move it around.

Re-establish your credit history if you have had problems. Opening new accounts responsibly and paying them off on time may help in the long term. Opening a “secured” credit card (when your credit card limit is matched with a savings account with the lender/bank for the same amount) can help rebuild your credit.

Keep credit cards but manage them responsibly. In general, having credit cards and installment loans (and makingg timely payments) may help in the long term. Consumers with no credit cards, as an example, can be thought of by lenders as a higher risk than someone who has managed credit cards responsibly.

If you are having trouble paying your creditors, contact them to work out a payment schedule or contact a reputable credit counselor.

Keep credit card and revolving credit balances low.

Apply for and open new credit cards, loans, revolving accounts only as needed.

FICO Score / Rating Resources

The best resource in finding out your current score is the myfico website. For a fee, you can order a report that is compiled from the 3 major credit reporting agencies and will outline your FICO score.

Suze Orman also offers a FICO kit on her website, suzeorman.com, which is also available via the myfico website. Suze’s website also has excellent info about improving your FICO score and your credit.

Clink on this link for Free Credit Report and Application

Bucks: A Free FICO Score With Your Credit Card (bucks.blogs.nytimes.com)
Tips for a Better FICO Score (louisvillekentuckymortgagerates.com)
Understanding The Basics (ericnmws.com)
Do Your Credit Reports Contain These Three Red Flags? (dailyfinance.com)

Written by Louisville Kentucky Mortgage

June 22, 2011 at 2:00 am

Kentucky Rural housing and Kentucky USDA loan Frequently Asked Questions

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Kentucky Rural housing and Kentucky USDAhome loan Frequently Asked Questions

Kentucky RHS Home Loan Frequently Asked Questions

1. For RHS, the borrower is only permitted to own one residence. What if a borrower owns land also? If a borrower owns land, they must document that the land does not contain a residence by using the tax assessment.

2. If a borrower assets allow them to qualify for conventional financing, they cannot qualify for RHS. Are retirement assets counted towards the borrower’s 20% down? No.

3. Do we offer the Kentucky Direct or Guaranteed RHS program? Kentucky Guaranteed RHS program only .

4. When using the Income Compliance calculator, do you gross up income prior to entering? No.

5. How long must a borrower have a second job before he can use the income to assist in qualification? He must have the job for two years.

6. Typically, if there is less than six months left on a loan, the underwriter can remove the debt from the DTI calculation. Is this always the case? It is the underwriter’s discretion. If there is a debt with a significant payment and the underwriter deems it necessary to keep that debt in the calculation, they may.

7. Is a termite inspection required for all loans? No, a termite waiver is required in lieu of a termite waiver. If the property is new construction, a soil poison treatment is required.

8. How do you calculate the payment for a student loan? If the payment is not recorded on the credit bureau, use 1% of the loan balance.

9. How do you calculate the payment for revolving accounts? If the payment is not recorded on the credit bureau, use 5% of the balance.

10. Is there an acreage limit? No, but the site value cannot exceed 30% of the appraised value.

11. What is the maximum origination for the program? Maximum origination is the same for RHS as all other prog

Joel Lobb NMLS#57916Senior Home Loan Officer502-905-3708 cell502-813-2795 fax

jlobb@keyfinllc.com

http://www.louisvillekymortgage.net

http://www.facebook.com/home.php#/profile.php?ref=profile&id=841739521

KHC Loan Programs 2011 Kentucky Housing (kentuckyfirsttimehomebuyer.com)
KHC’s First Mortgage Government Loan Products (louisvillekentuckymortgagerates.com)
Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011 (kentuckyusdaloan.wordpress.com)

Written by Louisville Kentucky Mortgage

June 18, 2011 at 4:54 pm

Posted in Uncategorized

Tagged with Buyer, Credit and Collection, Credit history, Credit Reports, Down payment, Interest rate, kentucky usda lenders, KHC’s (Kentucky Housing ) First Mortgage Government, Loan, Louisville Kentucky, Louisville Kentucky First Time Home Buyer, United States Department of Agriculture, USDA, Zero down home loans

Kentucky Housing Corporation updated guidelines June 2011

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Kentucky Housing Corporation updated guidelines June 2011

Lottery for New Construction Program for Single Parent, Disabled, or Elderly Households

Funds for the New Construction Program for Single Parents, Disabled, and Elderly Households will soon be available. The funding source this year will be New Bond funds, which means borrowers must meet all New Bond guidelines, with the exception of purchase price and income limits (listed below).

Funds will be available to populations that meet the following program guidelines:

First mortgage loan (FHA, VA, and RHS only – no conventional) with 30-year fixed interest rate of 1 to 6 percent. The rate will be the highest for which the applicant qualifies at ratios of 29/41.
New construction property only.
Maximum purchase price of $115,000.
Eligible households include:
- Single parents with at least one dependent child under the age of 18 living in the household.
- Households with at least one member with a permanent disability who is receiving some form of disability income (SSI, SSDI, etc.).
- At least one of the home buyers age 62 or older.
- Gross annual household income less than $28,000 for 1-2 persons or $33,000 for 3 persons or more.
Regular rate program with points required.
Borrowers must have minimum credit score of 640 and AUS approval.
Regular Down payment Assistance Program is available for down payment and closing costs.

Reservations will be selected through a lottery system. The lottery will be open for reservations Monday, July 25, through Wednesday, July 27. Winners will be notified by e-mail by Friday, July 29. All applicants MUST have a fully-executed contract when the loan is reserved.

Welcome Back HOME Family and HOME Special!

HOME Funds will be replenished Friday, July 1, 2011. Reservations on or after July 1 will have access to HOME Family or HOME Special Down payment Assistance Programs, each up to $10,000! These funds are available on a limited basis, first-come, first-served. Full program parameters are on page 8 of the MRB Program Guide.

Offer Your Borrowers a “Life of Loan” Tax Credit

If you are not an approved Mortgage Credit Certificate (MCC) lender with KHC, you are missing out! KHC has received a new allocation of funds for this tax credit. Becoming an MCC-approved lender enables you to offer your borrowers this valuable “Life of Loan” Tax Credit.

An MCC allows the borrower to convert 25 percent of their mortgage interest paid annually to a tax credit. A home buyer with a 5 percent interest rate on a fixed, 30-year mortgage of $125,000 would pay approximately $6,250 in interest payments for the first year without an MCC. With an MCC, 25 percent of that interest, $1562.50, could be taken as a tax credit against the home buyer’s federal income taxes. This reduces the home buyer’s tax liability dollar-for-dollar. It also effectively reduces their interest rate.

Terms	MCC	Without MCC
Mortgage Amount	$125,000	$125,000
Interest Rate	3.75%**	5.00%
Term	30 Years	30 Years
Monthly P and I	$540.83**	671.03
First-Year Interest Payments	$4,687**	$6,250

**The information in the chart above is for illustration purposes only. Please note: KHC staff are not tax advisors. Please contact an accountant for full details of how an MCC will affect taxes.

For more information, read our MCC brochure available at www.kyhousing.org, under Lenders/Realtors, Lender Resources. Learn more about becoming an MCC-approved lender on the MCC Web page.

MRB Regular Income Limits

Kentucky Housing’s income limits will remain the same for 2011. More information is available in the MRB Program Guide.

First Time Home Buyer Louisville Kentucky Mortgage Programs (louisvillemortgagerates.wordpress.com)
KHC Loan Programs 2011 Kentucky Housing (kentuckyfirsttimehomebuyer.com)
Kentucky’s new second-time homebuyer, and affordable mortgage (KENTUCKY HOUSING) (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

June 17, 2011 at 1:12 am

Should We Rent Until Our Loans Are Paid Down? | REALTOR.com® Blogs#comment-37096#comment-37096

with one comment

: One of the most important requirements necessary to qualify for a home loan is an acceptable credit score. Without knowing yours it’s difficult for me to know whether or not you can qualify. Here is some information on the scores required to obtain a loan.

The FHA has their own guidelines for loans they will accept and may be your best bet. Keep in mind that FHA is not a bank; it’s a government agency that insures loans from FHA approved lenders. While the FHA will have its rules, a bank will also have its own rules as well. Most banks today are only willing to finance FHA loans with credit scores of 640 and above. The FHA however will allow loans with credit scores as low as 540 with 20% down. Also, the FHA will require that you put down a minimum of 3.5%.

Conventional loans are typically for borrowers with money to put down (10-20%) and good credit scores. Most lenders in today’s market require a middle credit score of 660 or better to qualify for a conventional loan. To get your best deal you will need a credit score of at least 720. Since conventional loans are approved through underwriting engines created by Freddie Mac and Fannie Mae, the higher your credit scores are the better terms (rate) you will get. Conventional loans currently require a minimum of 5% down.

The good news is that you have some money reserved for a down payment. Your debt however is a big concern. Go ahead and start interviewing mortgage brokers and obtain recommendations from them to find the loan that works best for you. Your new mortgage broker will then be able to show you an entire suite of loan options and pre-qualify you for a home that you can afford with your income. In the mean time work with your broker on improving your debt/equity ratio and credit score if necessary. You’d be surprised how much improvement you can make in a year or so.

Should We Rent Until Our Loans Are Paid Down? | REALTOR.com® Blogs#comment-37096#comment-37096.

Kentucky FHA Loan Qualifying Summary (louisvillekymortgage.net)
Frequently Asked Questions about FHA Kentucky Home Loans (louisvillekymortgage.net)
FHA Loan Qualifying Summary (kentuckyfhaloan.wordpress.com)
Type of Kentucky FHA loans available (louisvillemortgageguide.com)

Written by Louisville Kentucky Mortgage

June 7, 2011 at 12:34 pm

Posted in FHA vs Conventional Credit Scores and Down Payment, Uncategorized

Tagged with Credit score, Fannie Mae, FHA insured loan, Freddie Mac, Kentucky, Loan, Mortgage broker, Mortgage loan

Your Credit Score Helps Determine What You’ll Pay for a Kentucky Mortgage Loan

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Your Credit Score Helps Determine What You’ll Pay for a Kentucky Mortgage Loan

Ever wonder how a lender decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards, auto loans, and mortgages. These days, many more types of businesses — including insurance companies and phone companies — are using credit scores to decide whether to approve you for a loan or service and on what terms. Auto and homeowners insurance companies are among the businesses that are using credit scores to help decide if you’d be a good risk for insurance. A higher credit score means you are likely less of a risk, and in turn, means you will be more likely to get credit or insurance — or pay less for it.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how credit scoring works.

What is credit scoring?

Credit scoring is a system creditors use to help determine whether to give you credit. It also may be used to help decide the terms you are offered or the rate you will pay for the loan.

Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, whether you pay your bills by the date they’re due, collection actions, outstanding debt, and the age of your accounts, is collected from your credit report. Using a statistical program, creditors compare this information to the loan repayment history of consumers with similar profiles. For example, a credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points — a credit score — helps predict how creditworthy you are — how likely it is that you will repay a loan and make the payments when they’re due.

Some insurance companies also use credit report information, along with other factors, to help predict your likelihood of filing an insurance claim and the amount of the claim. They may consider these factors when they decide whether to grant you insurance and the amount of the premium they charge. The credit scores insurance companies use sometimes are called “insurance scores” or “credit-based insurance scores.”

Credit scores and credit reports

Your credit report is a key part of many credit scoring systems. That’s why it is critical to make sure your credit report is accurate. Federal law gives you the right to get a free copy of your credit reports from each of the three national credit reporting companies once every 12 months.

The Fair Credit Reporting Act (FCRA) also gives you the right to get your credit score from the national credit reporting companies. They are allowed to charge a reasonable fee, generally around $8, for the score. When you buy your score, often you get information on how you can improve it.

To order your free annual report from one or all the national credit reporting companies, and to purchase your credit score, visit www.annualcreditreport.com, call toll-free 877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P. O. Box 105281, Atlanta, GA 30348-5281. For more information, see Your Access to Free Credit Reports.

How is a credit scoring system developed?

To develop a credit scoring system or model, a creditor or insurance company selects a random sample of its customers, or a sample of similar customers, and analyzes it statistically to identify characteristics that relate to risk. Each of the characteristics then is assigned a weight based on how strong a predictor it is of who would be a good risk. Each company may use its own scoring model, different scoring models for different types of credit or insurance, or a generic model developed by a scoring company.

Under the Equal Credit Opportunity Act (ECOA), a creditor’s scoring system may not use certain characteristics — for example, race, sex, marital status, national origin, or religion — as factors. The law allows creditors to use age in properly designed scoring systems. But any credit scoring system that includes age must give equal treatment to elderly applicants.

What can I do to improve my score?

Credit scoring systems are complex and vary among creditors or insurance companies and for different types of credit or insurance. If one factor changes, your score may change — but improvement generally depends on how that factor relates to others the system considers. Only the business using the scoring knows what might improve your score under the particular model they use to evaluate your application.

Nevertheless, scoring models usually consider the following types of information in your credit report to help compute your credit score:

Have you paid your bills on time? You can count on payment history to be a significant factor. If your credit report indicates that you have paid bills late, had an account referred to collections, or declared bankruptcy, it is likely to affect your score negatively.
Are you maxed out? Many scoring systems evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, it’s likely to have a negative effect on your score.
How long have you had credit? Generally, scoring systems consider the length of your credit track record. An insufficient credit history may affect your score negatively, but factors like timely payments and low balances can offset that.
Have you applied for new credit lately? Many scoring systems consider whether you have applied for credit recently by looking at “inquiries” on your credit report. If you have applied for too many new accounts recently, it could have a negative effect on your score. Every inquiry isn’t counted: for example, inquiries by creditors who are monitoring your account or looking at credit reports to make “prescreened” credit offers are not considered liabilities.
How many credit accounts do you have and what kinds of accounts are they? Although it is generally considered a plus to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many scoring systems consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may have a negative effect on your credit score.

Scoring models may be based on more than the information in your credit report. When you are applying for a mortgage loan, for example, the system may consider the amount of your down payment, your total debt, and your income, among other things.

Improving your score significantly is likely to take some time, but it can be done. To improve your credit score under most systems, focus on paying your bills in a timely way, paying down any outstanding balances, and staying away from new debt.

Are credit scoring systems reliable?

Credit scoring systems enable creditors or insurance companies to evaluate millions of applicants consistently on many different characteristics. To be statistically valid, these systems must be based on a big enough sample. They generally vary among businesses that use them.

Properly designed, credit scoring systems generally enable faster, more accurate, and more impartial decisions than individual people can make. And some creditors design their systems so that some applicants — those with scores not high enough to pass easily or low enough to fail absolutely — are referred to a credit manager who decides whether the company or lender will extend credit. Referrals can result in discussion and negotiation between the credit manager and the would-be borrower.

What if I am denied credit or insurance, or don’t get the terms I want?

If you are denied credit, the ECOA requires that the creditor give you a notice with the specific reasons your application was rejected or the news that you have the right to learn the reasons if you ask within 60 days. Ask the creditor to be specific: Indefinite and vague reasons for denial are illegal. Acceptable reasons might be “your income was low” or “you haven’t been employed long enough.” Unacceptable reasons include “you didn’t meet our minimum standards” or “you didn’t receive enough points on our credit scoring system.”

Sometimes you can be denied credit or insurance — or initially be charged a higher premium — because of information in your credit report. In that case, the FCRA requires the creditor or insurance company to give you the name, address, and phone number of the credit reporting company that supplied the information. Contact the company to find out what your report said. This information is free if you ask for it within 60 days of being turned down for credit or insurance. The credit reporting company can tell you what’s in your report; only the creditor or insurance company can tell you why your application was denied.

If a creditor or insurance company says you were denied credit or insurance because you are too near your credit limits on your credit cards, you may want to reapply after paying down your balances. Because credit scores are based on credit report information, a score often changes when the information in the credit report changes.

If you’ve been denied credit or insurance or didn’t get the rate or terms you want, ask questions:

Ask the creditor or insurance company if a credit scoring system was used. If it was, ask what characteristics or factors were used in the system, and how you can improve your application.
If you get the credit or insurance, ask the creditor or insurance company whether you are getting the best rate and terms available. If you’re not, ask why.
If you are denied credit or not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information with the credit reporting company. To learn more about this right, see How to Dispute Credit Report Errors.

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

July 2007

6 tips for a higher credit score | Inman News (kentuckyfirsttimehomebuyer.com)
Credit Repair Emergency Kit (creditloan.com)

Written by Louisville Kentucky Mortgage

June 7, 2011 at 2:26 am

Posted in Credit Report Tips, Credit Reports, Credit Score First Time Home Buyer Louisville Kentucky KHC, Credit Score Raising it, Credit Scoresrequired for KHC

Tagged with Credit and Collection, Credit history, Credit score, Equal Credit Opportunity Act, Equifax, Experian, Loan, TransUnion

Items needed for A Mortgage Loan Approval in Kentucky 2011

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Louisville, Ky Mortgage Lenders: For a Quick Easy Loan Approval:Have These Items Ready…:

Employment

____ Name and address of employers for the past two years

____ Copy of pay stubs for the previous 30 days

____ Copy of last two years w-2 forms
(if commissioned or paid by 1099, copy of last two years complete tax returns)

Self-employed

____ Copy of last two years tax returns (personal and corporate);
year to date P&L and Balance Sheet through the most recent quarter

Liabilities

____ Name and account numbers for all revolving and installment accounts

____ Name and account number for all mortgage loans for the previous two years

____ Name and address for landlords for the previous two years

Assets

____ Name, address, and account number for all bank accounts

____ Name, address, and account numbers for all brokerage accounts

____ Copies of statements covering last 3 months on asset accounts

____ Copy of most recent statement for 401K, Savings Plan, etc.

Miscellaneous

____ Copy of driver’s license and social security card

____ Copy of fully executed divorce decree if applicable

____ Copy of signed earnest money contract

____ Copy of lease agreements on rental properties

____ Veterans! Copy of DD 214 and Eligibility Cert. if you have it

____ Check for the cost of your credit report and appraisal

3 Things The Lender Looks At When You Apply For A Kentucky USDA Rural Development Home Loan

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3 Things The Lender Looks At When You Apply For A KentuckyUSDA Rural Development Home Loan

What The USDA Rural Development Underwriter Looks For When You Apply for a Kentucky USDA Mortgage Loan… Part 1

This is a three part series where we will look at the 3 factors that a Kentucky USDA Rural Development underwriter will look at when reviewing your file for loan approval. If you have questions that are not addressed here specific to Kentucky USDA Rural Development Credit Qualifying, please ask them in the comment box below.

The USDA Rural Development Loan is not as familiar to people as other mortgage types. Additionally it’s natural to be concerned about what an underwriter will be looking for when they delve into the depths of your personal Loan application. After all, you’re supplying them with personal information in your quest to buy a home. So I’d like to provide some quick insight as to the 3 things that a Kentucky USDA Rural Development Underwriter is looking for when they review your loan application for that Loan approval.

1. Your Credit

Yes, your credit is an obvious number 1 and it is the most important aspect of your loan decision. It is one factor that you can actually have control over. In an earlier post I wrote about Kentucky USDA Credit Qualifying, but will go into more detail here.

Credit tends to come in three categories:

Good (Currently defined as a 620 middle credit score or better)
Bad (Less than a 620 middle credit score)
Thin (A lack of credit history often with no credit score)

While most Kentucky USDA Rural Development lenders require a 620 middle score, some have been elevating that requirement to 640 or even 660 over recent months. Credit Score Optimizing is beyond the scope of this post, but good advice may be all you need to boost your score enough to qualify. If you have concerns about your score you should review your credit report with an experienced mortgage professional as some good quality advice may be all you need to get a few extra points.

Collections and bankruptcies are the predominate issues that the can cause concern. The age and size of a collection will determine if it would need to be paid off or not. AND different Kentucky USDA Rural Development lenders will have their own specific requirements determining if a collection must be paid or not before closing.

The same can be said about prior bankruptcies. Most Kentucky USDA Rural Development lenders will require that a bankruptcy be discharged for 3 years before you can be considered for a USDA loan. However with a high enough credit score, some lenders will allow you to qualify for a Kentucky USDA Loan after only 2 years. Consult your mortgage professional.

Length of Credit History

While the talk of the town on the credit front is mostly about credit scores and optimizing your credit to get that magical 620 middle credit score, there is one other credit factor that is often overlooked; Length of Credit History.

A credit score is supposed to be an indicator of the quality of your credit, but many times a “Thin” credit profile may artificially skew a score. For this reason most Kentucky USDA Rural Development lenders do have a minimum requirement for the Length of Credit History.

Most lenders will require a credit history to have:

3 credit trade lines (auto, credit cards, etc.); and
12 month active history for each of those three trade lines

Here it is important to note that the 3 trade lines do not currently need to be open or even active. This requirement helps to assure that the credit scores reported are indeed accurate.

But I Don’t Have A Credit History…

If you are one of the many Americans with a Thin credit profile, meaning that you just don’t have a credit history, you can still get a Kentucky USDA Rural Development Loan. You can actually “build” a credit profile by providing a history of four sources of alternative credit that have been active for at least 12 months.

What qualifies as Alternative Credit?

Increasing consistent deposits to a savings account
Rent and Housing payments
Utilities (electricity, water, gas, cable, phone, etc.)
Insurance (medical, auto, life, renters, etc.)
Local stores (department stores, furniture, etc.)

In the next post we will discuss the other 2 important factors that the USDA Rural Development Underwriter will be looking at in your loan application file.

To apply for a USDA Rural Development Loan call us today at 502-905-3708 or email us for a free applicaton at kentuckyloan@gmail.com and get pre-qualified today.

3 Things The Lender Looks At When You Apply For A KentuckyUSDA Rural Development Home Loan

Written by Louisville Kentucky Mortgage

May 26, 2011 at 8:52 am

Posted in 3 Things The Lender Looks At When You Apply For A KentuckyUSDA Rural Development Home Loan

Tagged with Credit score, Kentucky, Loan, Mortgage loan, Rural development, United States, United States Department of Agriculture, USDA Rural Development

Kentucky’s new second-time homebuyer, and affordable mortgage (KENTUCKY HOUSING)

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New Kentucky Law = New Bucks For Buyers

How about a little more home sale re-stimulus?

       Kentucky’s new second-time homebuyer, and affordable mortgage, law was signed by Gov. Beshear today (Monday, March 28).
       It’s effective April 30.
       Until now, many two-income families had incomes over the limit for Kentucky Housing Corporation (KHC) support. That disqualified them not just from more economical KHC mortgage loans, but also down payment and closing costs assistance. Down payment and closing aid has been available only through KHC.

Those home buyers will be eligible now in 33 days. There are lots of them.

It will make homeownership possible for many middle-income families. It also can be expected to end fence-sitting for many more.

The new law, HB 256, covers homeowners with incomes as high as 175% of the area median income. The program works through KHC, the state housing finance agency.

KHC’s guidelines have not been redone yet, to turn that 175% into a dollar figure. The guidelines now on the KHC website do not apply to the HB 256 programs.

But expect the median income cap for Jefferson County to be $108,150. That’s a household income limit. The current guidelines are much lower – $74,160 in Jefferson County for one to two people, and $86,250 for three or more people in the household.

Its not clear yet whether any adjustments to income will be allowed, such as counting Social Security Disability Income checks for a third person. Think in-law quarters for families taking care of parents. We’ll keep you posted on that one (we’ve already put in the suggestion).
However, it is clear that the income limit counts the income of everybody in the household, whether they are going on the loan or not. That may mean decisions about the number of household members may turn into a timing issue. Some will buy the house singly or as a couple, and move a parent in later, possibly.

Down payment assistance and closing cost assistance can be set up 4 different ways. One plan lets home buyers repay monthly. Three plans are forgivable loans, depending on household type. The three basic categories are (1) single or 2-parent households, (2) disabled and receiving disability, and (3) other households meeting income guidelines. The three forgivable plans provide up to $4,500, which is forgiven after the buyer stays in the home 5 years. No monthly payments are required. The amount forgiven goes down every month on a pro-rated basis if the borrower has to move in less than five years. That’s been the basic program for a while.

KHC also will be able to refinance mortgages with affordable, fixed-interest rates for 15-year and 30-year terms and offer mortgages for second-time home buyers.
KHC loans are pre-qualified and financed through one of 105 lending partner banks and mortgage companies located in communities throughout the state. They also are serviced in Frankfort, KY, an added safety cushion for home buyers worried about having their loans sold to anonymous strangers. They know exactly where their payments go every month. The existing Mortgage Credit Certificate (MCC) we first reported in the May, 2009 news flash are still available.

For More:

2010 guidelines by county, which are significantly below the HB 256 amounts, can be found at http://www.kyhousing.org/uploadedFiles/Homeownership/Homebuyers/IncomeLimits.pdf?n=1221
To compute a new county income limit outside Jefferson, take the 2010 1-2 persons number on the chart and multiply by 1.45. You’ll be tolerably close for a rule of thumb, until the new guidelines arrive at the end of next month.

Kentucky’s new second-time homebuyer, and affordable mortgage (KENTUCKY HOUSING) (kentuckyfirsttimehomebuyer.com)
Down-payment Assistance Programs Louisville and Kentucky (kentuckyfhaloan.wordpress.com)
Kentucky Zero down Mortgage Loans (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

May 17, 2011 at 8:50 pm

Posted in KENTUCKY HOUSING CORPORATION, KHC 2011 Programs, KHC 2011 updated Guidelines, KHC Down payment Assistance Program Kentucky Housing, Uncategorized

Tagged with Closing costs, Down payment, Income, Kentucky, Kentucky Housing Corporation, Loan, Mortgage loan, Social Security Disability Insurance

KHC Loan Programs 2011 Kentucky Housing

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KHC Loan Programs

All Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
To qualify, you must meet KHC’s regular income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.
Some Kentucky Housing loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional

Insured by approved mortgage insurance company.
Minimum credit score of 660 or better.
Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA

Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.

VA

Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.

RHS

Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.
No monthly mortgage insurance payments.

Mortgage Credit Certificates (MCC)

Special First Mortgage Loan Programs

Guidelines

Interest rate determined by the families’ ability to repay the loan.
For new homes with a purchase price of $115,000 or less.
Eligible borrowers:
- Single parents (at least one dependent under the age of 18 must live in the home.)
- Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.).
- Households where at least one of the home buyers is age 62 or older.
Income guidelines:
- $28,000 for a household of 1 or 2 people; or
- $33,000 for a household of 3 or more people.
Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance.

Down Payment and Closing Costs Assistance

Regular Down payment Assistance Program (DAP)

Purchase price up to $243,000.
Assistance in the form of a loan up to $4,000 in $100 increments.
Repayable over a seven-year term at 6 percent. A DAP of $4,000 over 7 years at 6 percent interest would equal a payment of $58.44.
Available to all KHC first mortgage loan recipients who are first-time homebuyers in non-targeted counties and first and second-time homebuyers in targeted counties.

HOME-DAP

Purchase price up to $195,700.
Assistance up to $4,500
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.

HOME Special Program

Purchase price up to $195,700.
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Eligible borrowers include:
- Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).
- Households where at least one of the home buyers is age 62 or older.

HOME Family Program

Purchase price up to $195,700.
Assistance up to $10,000
No monthly repayment; forgiven over five years.
Existing homes only.
Borrowers must meet HOME-income guidelines.
Eligible borrowers include:
- Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

More about down payment and closing costs

No liquid asset review and no limit on borrower reserves for Regular DAP.
Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.
Specific credit underwriting standards may apply to down payment programs.

Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.

502-905-3708 or email us for a free application kentuckyloan@gmail.com

First Time Home Buyer Louisville Kentucky Mortgage Programs (louisvillemortgagerates.wordpress.com)
Zero/minimum down payment for mortgage KY (kentuckyfirsttimehomebuyer.com)
>KHC Loan Programs updated 2011 (louisvillemortgagerates.wordpress.com)

Written by Louisville Kentucky Mortgage

May 9, 2011 at 4:47 am

First Time Home Buyer Programs Available in Kentucky

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First Time Home Buyer

Programs in Kentucky

Complete First Time Home Buyer Programs Available in Kentucky.

Kentucky Mortgage Guidelines updated 2011

Posted on February 23, 2011 by Louisville Kentucky Mortgage

3 Votes

Pressured by federal regulators to write quality loans, lenders have little choice but to follow underwriting marching orders issued in rapid succession this year by federal mortgage insurers.

Here’s a rundown.

Fannie Mae

Effective Dec. 13, among other underwriting updates, Fannie Mae is reducing debt-to-income ratios, the amount of a borrower’s gross monthly income that goes toward paying all debts. Fannie is dropping the ratio from 55 to 45 percent and the debt must include once exempt revolving debt with a balance of 10 or fewer payments.
Also, if the lender can’t verify the amount of a minimum monthly payment on any revolving credit, it must assume the payment is 5 percent of the balance and include that amount in the debt-to-income ratio.
Once excluded, but now also included in debt-to-income ratio, are payments on decades-old mortgages with only 10 payments (or more) remaining. That will make it tougher for older home owners to buy a second home.
Borrowers who have gone through foreclosure can forget buying a home with a Fannie-backed loan for seven years. That reduces the pool of mortgages available to consumers who’ve suffered a foreclosure.

Freddie Mac

Freddie Mac is considering guidelines similar to big sister Fannie’s.

Also, effective Dec. 1, Freddie Mac lenders now will be required to consider a borrower’s credit report inquiries made in the previous 120 days, rather than the prior 90 days as was required before the new rule.

If the borrower was granted additional credit, the debt adds to the debt-to-income ratio.

Federal Housing Administration (FHA)

FHA loans have become the go-to mortgage for less financially fit borrowers who likely would have shopped the now defunct subprime market.

In October, the FHA began to require credit scores of at least 500, creating a minimum where none previously existed. Borrowers with scores ranging from 500 to 579, must come up with 10 percent down. Borrowers who want an FHA loan with only 3.5 percent down must have a score of more than 580.

FICO scores, ranging from 300 to 850, are a numerical rendition of a borrowers’ creditworthiness.

Individual lenders can set their own credit score requirements and several lenders recently pushed the minimums to 640 on FHA loans.

Earlier this year, the FHA also boosted the upfront mortgage premium to 2.25 percent of the loan amount, up from the previous 1.75 percent, the second increase in the past two years.
Also earlier this year, a seller’s contribution to FHA loan closing costs was slashed from 6 percent to 3 percent, after critics said the higher maximum encouraged sellers to mark up the price to compensate for their concession.

If you have questions about a mortgage, give us a call at 502-905-3708 or email us at kentuckyloan@gmail.com

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Fannie Mae Announces 3.5 Percent Buyer Assistance on HomePath(R) Properties Incentive Part of Continuous Effort to Stabilize Neighborhoods – CNBC (kentuckyfirsttimehomebuyer.com)

Written by Louisville Kentucky Mortgage

April 23, 2011 at 2:28 am

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