Kentucky’s Top Programs for No Money Down Mortgages

Potential Changes to Kentucky Eligible Area Maps for Kentucky USDA Rural Development Housing Programs

Kentucky Eligible Area Maps forKentucky USDA Rural Development Housing Programs

Kentucky VA Announces Reduced Funding Fees
Effective with loans closing on and after 04/07/2023, VA has announced new lower loan fee rates for Purchase and Cash Out Refinance loans. There is no change to the funding fees for other Kentucky VA Home Loan Types. 

• VA Purchase / Construction Loans
  • First Use
    • Down Payment Amount:
      • Less than 5%: Funding Fee 2.15%
      • 5% or more down payment: 1.5%
      • 10% or more down payment: 1.25%

  • Subsequent Use
    • Down Payment Amount:
      • Less than 5%: 3.3%
      • 5% or more down payment: 1.5%
      • 10% or more down payment: 1.25%

• VA Cash-Out Refinance
  • First Use: 2.15%
  • Subsequent Use: 3.3%

• Other VA Home Loan Types
  • Interest Rate Reduction Refinance Loan (IRRRLs): 0.5%
  • Loan Assumptions: 0.5%

Please note the following:

• For standard purchase loans, the reduced funding fee is based on the sales price.
• For construction purchase loans, equity in the secured property may be used as a down payment for…

FHA – Annual MIP Reduction

The Federal Housing Administration (FHA) has announced, effective for case numbers endorsed on and after 03/20/2023, a 30 basis point reduction in the annual premium charged to mortgage borrowers. 

The cut, widely anticipated by the industry, will result in mortgage insurance premiums (MIP) of 55 bps for most borrowers, down from 85. The reduction also amends the Base Loan amount threshold used to establish MIP rates to the national conforming loan limit of $726,200, which increased from $625,500. Please refer to the following for the 03/20/2023 Annual Mortgage Insurance Premium MIP reduction:

• FHA Loans with Terms > 15 Years
  • Base loan Amount and LTV:
    • Less than or equal to $726,200
      • ≤ 90.00% (50 bps) 11 years
      • > 90.00% but ≤ 95.00% (50 bps) Mortgage term
      • > 95.00% (55 bps) Mortgage term

    • Greater than $726,200
      • ≤ 90.00% (70 bps) 11 years
      • > 90.00% but ≤ 95.00% (70…