FHA announces major changes in in Mortgagee Letter 2021-13

FHA announces major changes in in Mortgagee Letter 2021-13

Louisville Kentucky Mortgage Loans

FHA announces major changes in in Mortgagee Letter 2021-13. We can now calculate your student loan payments based on 0.5% of the balance or take a Income Based Repayment Plan! FHA Updates the rules on Student Loan monthly payments deferred or Income Based Repayment plan… (4) Calculation of Monthly Obligation For outstanding Student Loans, regardless of payment status, the Mortgagee must use: • the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or • 0.5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower’s credit report is zero.

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BREAKING NEWS: KENTUCKY FHA & STUDENT LOANS

Starting August 16th 2021 a lot more clients will be able to qualify to buy the home of their dreams.(Possibility for immediate usage of the guideline)Finally FHA has came to their senses and lowered the guidelines on Student Loan payment calculations

Louisville Kentucky Mortgage Loans

BREAKING NEWS: FHA & STUDENT LOANS

Starting August 16th 2021 a lot more clients will be able to qualify to buy the home of their dreams.(Possibility for immediate usage of the guideline)Finally FHA has came to their senses and lowered the guidelines on Student Loan payment calculations

Check out this link for direct access to the guideline change : https://www.hud.gov/…/OCHCO/documents/2021-13hsgml.pdf* No More 1% of amount owed as payment automatically * If you are on income base repayment we can use that payment amount

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Kentucky Rural Housing USDA Guidelines

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Kentucky Rural Housing USDA Guidelines

KENTUCKY USDA HOME LOANS
Kentucky USDA Loans | Rural Housing Loans Kentucky
Kentucky USDA Loans | Rural Housing Loans Kentucky

USDA Home Loans in Kentucky?

Kentucky USDA Home Loans supplies 100% financing for a home purchase, or refinancing in a USDA designated area.

Many large metropolitan cities have suburban areas that qualify for the USDA mortgage program. Click Here for an interactive map of eligible areas in Kentucky here!

The KY USDA home loans are perfect for first time buyers for many reasons. They have low interest rates, absolutely no down payment, no mortgage insurance, flexible credit guidelines, and most of the closing costs can be worked into the overall amount of the loan.

Advantages of a USDA vs. FHA & Other Loans

The USDA Home Loan program offers many advantages that traditional mortgage programs simply do not offer. First of all, all USDA home loans come with low interest rates, 100% financing, and require zero down payment. In fact, the USDA home loan program is the only home loan program in the country, besides the military, that requires absolutely no money for the purchase of a home. Instead, these funds can be used to pay to furnish the home, closing costs, make home renovations.

USDA home loans also have very flexible credit guidelines compared to most traditional lenders, with non-traditional credit histories being accepted. FHA home loans require a minimum of 3.5% down payment and have relatively high monthly mortgage insurance premiums.

Kentucky USDA Income Eligibility

Because USDA home loans are designed for moderate, to low income families, there are income limit restrictions. To be eligible for a USDA loan, your adjusted annual household income cannot exceed 115% of the median average income for that area.

This means if your total household income is above the average median income for that area, you may not be able to qualify. However, there are special deductions in place, such as childcare expenses, caring for elderly family members, or children in college, that can help to reduce your overall annual income. The borrower’s total housing and other consumer credit payments should account for no more than 4% of the total income. Income limits vary by county. Check your county Kentucky income limits here!

USDA Credit Eligibility

While it is true that USDA home loan program offers some the most credit flexible guidelines available, you still will need to have a minimum credit score of 620 to 640 to qualify.

However, some lenders may accept a credit score of as low as 580, if you can prove that some of your debts were circumstantial, temporary in nature, or beyond your control.

You must also have any bankruptcies or foreclosures discharged in the last 3 years, no outstanding tax liens and no accounts that have gone to collections within the past 12 months.

Click to access faqs_loan_origination.pdf

Kentucky FHA Mortgage Loans Guidelines

Kentucky Rural Housing USDA Guidelines

 

KENTUCKY USDA HOME LOANS

Kentucky USDA Loans | Rural Housing Loans Kentucky Kentucky USDA Loans | Rural Housing Loans Kentucky

 

USDA Home Loans in Kentucky?

Kentucky USDA Home Loans supplies 100% financing for a home purchase, or refinancing in a USDA designated area.

 Many large metropolitan cities have suburban areas that qualify for the USDA mortgage program.  Click Here for an interactive map of eligible areas in Kentucky here!

 

The KY USDA home loans are perfect for first time buyers for many reasons. They have low interest rates, absolutely no down payment, no mortgage insurance, flexible credit guidelines, and most of the closing costs can be worked into the overall amount of the loan.

 

Advantages of a USDA vs. FHA & Other Loans

The USDA Home Loan program offers many advantages that traditional mortgage programs simply do not offer. First of all, all USDA home loans come…

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USDA Mortgage Benefits for First Time Buyers in Kentucky

Kentucky USDA Mortgage Benefits for First Time Buyers in Kentucky 

Kentucky USDA Mortgage Benefits for First Time Buyers in Kentucky

100% mortgage financing at competitive fixed interest rates with USDA home loans  Credit score requirements (620 to 640)  are less restrictive than most conventional home loan programs.

Kentucky USDA loans also offer a single upfront mortgage insurance premium which may be financed. Currently only 1% of the loan and a monthly mi premium of .35% which is very cheap considering the lower credit score requirements and no money down financing. The mortgage insurance is the same for everyone, does not matter what your credit score is or how much down payment you have.

You can look up individual properties on USDA’s website here for Kentucky eligible areas.

You can also research single family housing income eligibility for Kentucky  here.

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You may qualify if your Chapter 7 bankruptcy was discharged three years prior.

USDA loans can be used to finance most types of single family properties although some exception may apply. Homes must be used as borrowers’ primary residences and not used as second homes or rental properties.

Farms and commercial properties are not eligible through USDA Rural Housing Development Guaranteed Loans.

In many cases USDA permits sellers to contribute borrowers’ closing costs and can be financed up to the appraised value if home appraises for more.

Here are the highlights of USDA Mortgages
. Down Payment: 0% down payment
 Closing Costs: up to 6%
. Credit Score: Minimum none–but lenders create overlays..typically 640 to     get  a GUS Automated approval
. Lower monthly mortgage insurance costs (PMI) versus FHA
. There is NO maximum set loan amount limit with USDA Rural Housing.
. No large savings are needed to qualify for USDA loans.
 The debt to income, or DTI is limited to 45% – lower than most other loan programs.
 The location of the home determines if it will be a USDA loan.
. The home can be a regular sale, short sale, foreclosure home or bank owned home single family, townhome or approved condo.
 Mobile/Manufactured homes and “build on your own land” not available.
. Applies for First-time home buyers, or move-up buyers.
 No special first-time buyer’s class, down payment assistance, or bond money is needed.
Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
 

Text/call:      502-905-3708

fax:            502-327-9119
email:
          kentuckyloan@gmail.com

 

What is the minimum fico credit score required for a Mortgage Loan Approval in Kentucky?

Credit score requirements for Kentucky Mortgage Loan”

Louisville Kentucky Mortgage Loans

The minimum credit score requirement to get approved for a Kentucky Mortgage loan offered through FHA, USDA, Fannie Mae, VA and Kentucky Housing today is a 620 FICO score.

Fico, 2,4, 5 from Fico for Experian, Equifax, and Transunion. They throw out the high and low score. and take mid score.

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Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky

Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky

VA announced they are expanding eligibility for Kentucky VA home loan benefits for certain members of the Kentucky Army and Air National Guard to include current and former National Guard members, regardless of service dates, who meet the requirements outlined below effective for COE applications received on or after 01/05/2021.

Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky VA announced they are expanding eligibility for Kentucky VA home loan benefits for certain members of the Kentucky Army and Air National Guard to include current and former National Guard members, regardless of service dates, who meet the requirements outlined below effective for … Continue reading "Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky"

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Kentucky Mortgage Terms to Know

ortgage Terms to Know
1 Vote

Glossary of Mortgage Terms to Know For A Kentucky Mortgage Loan.

ortgage Terms to Know 1 Vote Glossary of Mortgage Terms to Know For A Kentucky Mortgage Loan.

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Kentucky USDA Guideline Updates for 2021

  • Annual Qualifying Income – The requirement for calculations to be included on the Income Calculation worksheet have been removed and should now be included on Attachment 9-B, the underwriter transmittal summary, FNMA form 1008/Freddie form 1077, or equivalent
  • 4506-T – The requirement for asset statements to be reviewed to ensure borrowers have no additional income sources has been removed.
  • Repayment Income – MCC income must now be included in repayment income.
  • Boarder Income – USDA now considers a boarder as a household member and a boarder’s income must now be included in annual income calculation. Rent paid by boarders that is reported on tax returns must also be included in annual income.
  • Capital Gains – USDA removed requirement from Repayment Income to provide evidence showing borrowers own additional property or assets that may be sold if additional income is needed to support the mortgage obligation
  • Commission – The borrower must now show one year history in same or similar line of work to include commission in repayment income.
  • Fellowship, Stipend, Scholarship – Scholarship award letters must now provide date of termination and USDA will no longer presume benefits with no expiration date will continue. USDA also added guidelines for GI Bill income and stated it cannot be included in annual or repayment income.
  • MCC – This income must now be included in repayment income, but no history is required. A copy of the W-4 from employer is required to verify borrower is taking tax credit on monthly basis. Note: MCC’s are ineligible with FWL as qualifying income.
  • Unreimbursed Business Income – only taxable income is allowed to be included in repayment income
  • Section 8 – USDA removed requirement for section 8 income to be deducted from the monthly PITI to determine DTI if it is paid directly to the loan servicer when included in the repayment income.
  • Self Employed Income – Federal tax returns must now be reviewed to determine gross income for annual calculations. Removed requirement to deduct business loss before entering as repayment income into GUS or on loan application. Clarified documentation requirements as most recent 2 years of federal tax returns / transcripts & YTD P&L may be audited or unaudited
  • Social Security Income – clarified documentation options and will allow social security benefit statement or form SSA-1099/1042S to source
  • Temporary Leave – The history requirements for repayment income has been changed and now income must be received by loan closing.
  • Cash on Hand – The underwriter must review the reasonableness of accumulation based upon income stream, spending habits, etc. and cash on hand can no longer be included in reserves
  • Gift Funds – Clarification provided on how gift funds must be sourced when gift funds have been deposited into borrower’s account, not deposited into borrower’s account, or if funds are being wired directly to the settlement agent.
  • Large Deposits – USDA no longer addresses lump sum additions.

Kentucky Appraisal for FHA, VA, USDA and Fannie Mae Home Loans

Kentucky Appraisal for FHA, VA, USDA and Fannie Mae Home Loans

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

What is an Appraisal?

An appraisal is a valuation of property by an independent, licensed professional known as the appraiser.
The appraiser will review the home itself along with comparable homes in the area and generate a full report on the value of the subject property. They will schedule a visit to inspect, measure, and take photos of the home. An appraisal protects not only the lender’s investment but also you, the buyer.

What if my home doesn’t appraise for the asking sales price?

There are a couple of options in the event that the home value comes in lower than the sales price.

  • Review of the report by the real estate agents. Additional comparable home sales or comments are
    then submitted to the appraiser for review and comment;
  • The seller may lower the price of the home;
  • The buyer may opt to increase the down payment;
  • The numbers stay…

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KHC has $5.5 million available at 1% interest rate, fixed for 30 years

Originally posted on Louisville Kentucky Mortgage Loans:
Joel Lobb?(NMLS#57916)Senior? Loan OfficerAmerican Mortgage Solutions, Inc.10602 Timberwood Circle Suite 3Louisville, KY 40223Company ID #1364?|?MB73346Text/call 502-905-3708kentuckyloan@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…

KHC has $5.5 million available at 1% interest rate, fixed for 30 years

Program Details

 

Targeted Program

The MRB special funding program is intended for:

  • Households whose gross annual income does not exceed $40,000
  • First-time homebuyers (unless in a targeted county)
  • Those with a credit score of at least 620
  • Cannot own any other real estate at closing
 

Mortgage Options

With the MRB special funding program buyers can:

  • Purchase a new or existing construction property
    • Available for use with the purchase of stick-built homes, manufactured homes, and condos
  • Select either FHA, VA, or RHS first mortgage options
  • Use the Affordable Down payment Assistance Program (DAP)
    • Affordable DAP provides up to $6,000 for down payment and closing costs as a repayable loan over a ten-year term

Louisville Kentucky Mortgage Loans

Joel Lobb(NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.10602 Timberwood Circle Suite 3Louisville, KY 40223Company ID #1364|MB73346Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/

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

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

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