Category: rural housing

Government Shutdown USDA Loans KY

 

 

 

Zero-Down Options Mortgage Loans in Kentucky

While Kentucky FHA and conventional, PMI-backed loans are appealing options for cash-strapped buyers, some borrowers may be eligible for mortgages with no down payment at all. The Veterans Affairs, or VA, loan program is one such option, although you have to be a veteran or active member of the military to take advantage (spouses of a service member who died or was disabled while on duty also qualify).

There’s no minimum credit score required to obtain a VA loan, and you don’t have to pay mortgage insurance on the loans, which are backed by the Department of Veterans Affairs. Instead, borrowers pay a one-time funding fee. You’d pay 2.15 percent of the mortgage amount if your loan covers 100% of the sale, although the fee is lower when you make a down payment.

Like VA loans, those offered by the United States Department of Agriculture also forgo the down payment requirement. Because the program is billed as a way to help families in rural areas, it’s easy to dismiss these loans out of hand. But the reality is, a lot of suburbs fall within the geographical boundaries established by the USDA. In fact, well over 90 percent of the land in the U.S. is eligible (you can do an easy address search here to find out).

As if the zero-down policy wasn’t enough, USDA mortgages also offer attractive interest rates and lower insurance premiums than FHA and conventional loans. You don’t need particularly high credit score to qualify, either – a FICO north of 580 is typically all you need.

But here’s the rub: You do have to meet the program’s goal of serving “low- to moderate-income households.” In practical terms, that means your family can’t bring in more than 115% of the median income in your region. For those who fall within those somewhat narrow guidelines, it’s a tough one to beat.

 

Joel Lobb (NMLS#57916)
Senior  Loan Officer

 

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3

Louisville, KY 40223

Company ID #1364 | MB73346

 

Text/call 502-905-3708
kentuckyloan@gmail.com

 

 

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.