Bowling Green Kentucky, Elizabethtown Kentucky, Kentucky, KY first time home buyer, Mortgage loan, Rural development, United States Department of Agriculture, USDA Rural Development, zero down Kentucky home loan
Kentucky’s Top Programs for No Money Down Mortgages
Kentucky FHA Mortgage Insurance Requirements and Down Payments
FHA Minimum Down Payment
Effective January 1, 2009, the minimum down payment required on an FHA loan is 3.5% of the purchase price.Any deposit (usually called earnest money) that you are required to give to your realtor at the time of an accepted purchase contract will count towards your 3.5% down payment. The appraisal fee collected at the time of inspection will also count towards your 3.5% down payment.
If, for example, you are purchasing a $100,000 house, your minimum down payment required would be $3,500. If your seller/realtor required you to put down $500 in earnest money on top of the $300 for your appraisal, your down payment would be lowered to $2,700 ($3,500 – $500 – $300 = $2,700).
Down Payment As A Gift
If a borrower does not have 3.5% of his or her own money to put down towards the home purchase, FHA allows that amount to be in the form of a gift to the borrower. The gift must be from a qualified source, such as a family member, employer or significant other. The source of the gift must be able to provide proof that they have the money in an account registered in their name prior to transfer to the borrower.
In some areas, this gift may also be grant money from a state or local municipality, if such funds are available.
FHA mortgage insurance, typically referred to as MIP, is the one closing cost that is unique to FHA mortgage programs.
**Every FHA mortgage must have mortgage insurance regardless
of the amount of the down payment.**
There are two types of mortgage insurance for FHA insured loans – Up-front Mortgage Insurance Premiums and Monthly Mortgage Insurance Premiums.
Up-front Mortgage Insurance Premium (UFMIP)
UFMIP is calculated at 1.75% of the base loan amount on all loans, regardless of the down payment amount. This insurance protects the lender against losses in the event that the borrower defaults on the loan.
**The entire amount of the UFMIP can be financed into the loan amount!**
For example:
- If the FHA loan amount is $100,000 (base loan amount)
- The mortgage insurance premium would be $1,750 ($100,000 x 1.75%)
- The mortgage amount including MIP would be $101,750 ($100,000 + $1,750)
What really happens during an FHA mortgage…
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VA Updated Guidance for Borrowers Affected Financially by COVID-19
VA Updated Guidance for Borrowers Affected Financially by COVID-19
VA Guidelines for Covid-19
Income Verification
Lenders may continue to use good judgement and flexibility when verifying a borrower’s income and determining whether that income is stable and reliable and will follow standard VA guidelines.
Third-party services may be used to provide employment and income verification (please note additional fees associated with these services cannot be charged to borrower).
Note: The VOE flexibilities previously announced by VA have not been extended and did expire 04/01/2021.
Income Analysis
VA’s guidelines generally require income to be stable and reliable for 2 years. However, borrowers’ income impacted by COVID-19 may continue to be reviewed as follows:
Any period in a borrower’s income (i.e. furlough, curtailment of income, etc.), should not be considered a break in employment or income provided they have returned or anticipated to return to work in the same capacity and income levels. In addition to standard verification documentation Borrower’s should…
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Here are all the $0 Mortgage options in Kentucky
Here are all the $0 Mortgage options in Kentucky VA – available to veterans, surviving spouses and active military. • VA Mortgages are always $0 down.• FICO Score – 620 preferable.• Need DD214 (honorable discharge) and Certificate of Eligibility.• Seller can pay up to 4% of closing costs. USDA: the location of the property determines … Continue reading Here are all the $0 Mortgage options in Kentucky
Kentucky Home Loan Program Requirements for FHA, VA, USDA and Conventional Mortgage loans.
FHA Minimum credit score580 AUS Approved580 ManualNon-Credit Qualifying Streamline refinances allowedGift funds allowed for down payment and closing costsCash out 80% LTV VA Minimum credit score600 AUS approved620 manualCash-out up to 90% LTVForeclosure/Short Sale/Bankruptcy <2 years allowed with AUS Approval USDA Minimum credit score: 620100% maximum LTVManual UnderwritesNo maximum loan amountUSDA Streamlined, Streamlined-Assist, and Rate/Term refinances allowed CONVENTIONAL Minimum … Continue reading Kentucky Home Loan Program Requirements for FHA, VA, USDA and Conventional Mortgage loans.
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 