Author: Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans

Credit Card Balances And Your Credit Scores = The Direct Link

Card Payments To Maximize Your Credit Scores
In “Credit Card Utilization”
Why Credit Cards Are Good For Your Credit Score

Rapid Rescore

score updown

Credit card utilization (balance in relation to limit) is a key role player in your credit scores.  Your scores can sometimes significantly increase or decrease based upon the balance reporting to the credit bureaus.  In essence, 30% of your FICO scores (165 points) are a factor in your overall credit score.

One of the statements I often hear when consulting my clients about their credit, “I make my payments on time on my credit cards, I don’t understand why my scores are low.  I pay off my cards every month”.

My question at that point is “When do you pay off your cards?”  The answer I typically hear “on the due date”.

The problem with that is your balances have already been reported to the credit bureaus.  Almost all credit card banks report your balances at the STATEMENT DATE not the DUE DATE.  Did the little light bulb turn on…

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Credit Scores Needed To Qualify For A Kentucky Mortgage Loan Approval?

What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan in 2019?
In “2019 kentucky first ti

Louisville Kentucky Mortgage Loans

via Credit Scores Needed To Qualify For A Kentucky Mortgage Loan Approval?

How to qualify for a Kentucky FHA Home Loan ? How to qualify for a Kentucky FHA Home Loan ?

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USDA , Fannie Mae Home Loans In "Credit Scores and Credit Report" What Credit Score do You Need to qualify for a FHA VA KHC USDA Kentucky Mortgage

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FHA’s New Student Loan Rule Could Impact Mortgage Borrowers

Student Loan Payment Calculations

Fannie
If a monthly payment is on the credit report, the lender may use that amount for qualifying purposes.
If a monthly payment is on the credit report is incorrect, the lender may use the monthly payment on the most recent student loan statement
If the monthly payment on the credit report is zero, the lender must use one of the following options to calculate the payment for qualifying purposes
Document the borrower is on an income driven payment plan and the actual monthly payment is zero
Use 1% of the outstanding student loan balance as the monthly payment
Calculate a fully amortized payment using documented loan repayment terms

FHA
Regardless of the payment status (currently in payment or deferred), the lender must use either:
The greater of:
1% of the outstanding balance; or
The monthly payment reported on the credit; or
Calculate a fully amortized payment using documented loan repayment terms

RHS
Regardless of the payment amount reporting on the credit, the lender must include the payment as follows:
A permanent amortized, fixed payment may be used in the debt ratio when the lender retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed.
Payments for deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation. One percent of the loan balance reflected on the credit report must be used as the monthly payment. No additional documentation is required.

VA
If the borrower can document the student loan will be deferred 12 months from the closing date, the monthly payment does not need to be considered
If a student loan is in repayment or scheduled to begin repayment within 12 months from the closing date, the threshold payment amount must be calculated by using 5% of the loan balance divided by 12 months
If the payment reporting on the credit report is greater than the threshold payment calculation amount, then the credit report payment must be used for ratios.
If the payment reporting on the credit report is less than the threshold payment calculation and the lender is using the lower payment to qualify the borrower then:
A statement from the student loan servicer reflecting the actual loan terms and payment information must be included in the file.
The statement must be dated within 60 days of closing
It is the underwriter’s discretion to use the lower payment

Louisville Kentucky Mortgage Loans

via FHA’s New Student Loan Rule Could Impact Mortgage Borrowers

Student Loan Payment Calculations
Fannie
  • If a monthly payment is on the credit report, the lender may use that amount for qualifying purposes.
  • If a monthly payment is on the credit report is incorrect, the lender may use the monthly payment on the most recent student loan statement
  • If the monthly payment on the credit report is zero, the lender must use one of the following options to calculate the payment for qualifying purposes
  1. Document the borrower is on an income driven payment plan and the actual monthly payment is zero
  2.  Use 1% of the outstanding student loan balance as the monthly payment
  3. Calculate a fully amortized payment using documented loan repayment terms
FHA
Regardless of the payment status (currently in payment or deferred), the lender must use either:
  • The greater of:
  1. 1% of the outstanding balance; or
  2. The monthly…

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Kentucky Rural Development Loans 100% Financing.

first time buyer kentucky usda, foreclosure, GUS approval, Kentucky Rural Housing and USDA Loans, Kentucky USDA Rural Development

USDA Loans in Kentucky.

What is Kentucky  USDA Rural Development Guarantee?

Kentucky USDA Rural Development Guarantee USDA loans offer 100% financing options on home purchases in rural areas of Kentucky.  Properties though can be located within city limits and in subdivisions depending on population density of that particular County of Kentucky. Jefferson and Fayette Counties, the two largest counties of Kentucky are not eligible for Rural Development Loans.

The Kentucky Rural Development  loan program is primarily used to help low to moderate income individuals or households to purchase homes and the applicants need to be within 115% of the median income for the area. Most counties will allow up to $82,700 for a family of four and up to $109,200 for a family of five or more for household incomes to be eligible for RHS loans.

Some areas of Northern Kentucky you can make more than that: see below

The base USDA income limits are for most Kentucky counties below:
  • 1-4 member household: $82,700
  • 5-8 member household: $109,150

Households with 1-4 members have different limits as households with 5-8. Similarly, applicants living in high-cost counties will have a higher income limit than those living in counties with a more average cost of living.

Northern Kentucky Counties
Boone, Kenton, Campbell, Bracken and Pendleton, Gallatin ***
Cincinnati (OH, KY, IN FMR) Household income of 4 or less:

***$90,050
Household income of 5 or more:

***$118,850
Shelby $86,450 $114,100
All Other Areas $82,700 $109,150

USDA income limits increased TODAY in most counties in Kentucky



This program is awesome and allows for up to 100% financing.
 In addition, homes that Appraise for more than the purchase price 
will allow the buyer to roll the closing costs into the loan!
Most Kentucky  Area income limits are now $82,700 for households of 1 to 4
 and $109,150 for households of 5 or more. Daycare or other 
child care expenses may allow higher incomes.

 

Some highlights of the KY Rural Housing loan program are:

  • 100% financing on purchases with no down payment
  • Low 30 year fixed rates. No prepayment penalty.
  •  Rural Housing monthly guarantee fee of .35%
  • Upfront Rural Housing funding fee of 1% of the loan amount and is financed into new loan
  • Minimum credit scores are 581 but helpful to have 620 or higher with most USDA lenders with a 640 and get an automated underwriting approval thru Rural Housing’s underwriting engine – GUS-GUS Stands for the automated Underwriting system they use online to pre-approve you for a loan.
  • Each lender will set their own credit and debt to income criteria
  • No rental verification needed with GUS approval
  • No foreclosures in the last 24 months, but need explanation if < 36 months
  • Bankruptcy discharged at least 24 months
  • Must have two tradelines on the credit report for at least 12 months.

For a USDA eligible areas in Kentucky, see the property and income eligibility search, please click HERE.

Things to look for in your  Rural Housing property search in Kentucky below:

  • Avoid homes in flood zones – RD is very restrictive for homes in flood zones. They will do them in flood zones just watch out for the costly premiums.
  • Avoid homes with cisterns – they are extremely difficult to get financed
  • Be aware that homes with wells and septic systems needed extra tests for contamination
  • Avoid homes with any income producing activities such as working farms, detached buildings with offices or car lifts for auto repairs, or anything else related to income producing activities.
  • Manufactured homes or doublewides must be brand new. No used mobile homes are allowed.
  • Must meet FHA standards on appraisals so watch out for this on older homes with crawl spaces. 
  • Must have a permanent heat source and no wood stoves as permanent heat sources
  • Homes that are in need of major repairs.

 

Put my experience of originating KY USDA loans to work for you. I have successfully originated over 200 Rural Housing Mortgage Loans in Kentucky. I offer free pre-approvals and will help you from start to finish and I usually attend all my closings in Kentucky. 

Get Qualified for a Kentucky USDA Loan Now!

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
 

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.



https://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

 

USDA Home Loan in Kentucky Compared to FHA loans in Kentucky.

Mortgage In "100% Financing Zero Down" Kentucky USDA Guaranteed Rural Housing Mortgage Guidelines In "100% Financing Zero Down"

Why use USDA financing for your next home purchase in Kentucky?

There are very few ways to purchase a home these days in Kentucky without a typical 3.5% down payment that is required for an FHA loans in Kentucky.  Many home buyers in Kentucky are surprised to find that a USDA Home Loan offers a lower payment than an FHA loan, even with NO DOWN PAYMENT!  “How can this be?” you ask.  The reason is because a Kentucky USDA home loan requires much lower MORTGAGE INSURANCE.

Kentucky FHA Loan vs. Kentucky USDA Loan Comparison

FHA USDA
$150,000 purchase price $150,000 purchase price
4.75% 30 year fixed rate 4.75% fixed rate
1.75% up front mortgage insurance (financed) 1.0% Guarantee Fee (financed)
  .85% month mi premium .35% monthly mi premium
$871.19 P&I monthly payment
with monthly mortgage insurance (not including taxes and insurance)
$826.86 P&I monthly payment (not including taxes and insurance
$5250.00 required down payment $0 down payment

A rural housing USDA loan saved this client $46.74 per month and they made NO DOWN PAYMENT!

Other benefits of Kentucky USDA Home Loans

  • Low up front closing costs
  • In some cases closing costs can be financed if home appraises for more than purchase price 
  • Minor credit problems OK with a minimum credit score of 581
  • No maximum loan amounts just household income limits based on which Kentucky County you are buying a home.
  • Fixed Rates Only for 30 years with no prepay penalty

A Kentucky USDA rural housing loan strive to find anyway possible to approve your loan, however there are some cases where a USDA Loan is not an option;

a previous bankruptcy must be discharged 3 years,

you must occupy the home being purchased as your primary residence,

the home may not be used for income producing purposes (farm, rental, etc.),

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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

Mortgage Rates Drop for Fourth Straight Week for Kentucky Mortgage Loans 

Mortgage Rates Drop for Fourth Straight Week for Kentucky Mortgage Loans 

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

Louisville Kentucky Mortgage Loans

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How are collections treated on a Mortgage loan in Kentucky for a FHA and Conventional Loan Approval?

Income Requirements for A Kentucky Rural Housing Loan Approval.

Kentucky Rural Housing USDA Guidelines 2011, Kentucky USDA Loan Adjusted Maximum Income Limits by County, Kentucky USDA Loans, Kentucky USDA/Rural Housing Areas, QUICK GUIDE for Kentucky USDA Rural Development Housing Loan, rhs, rhs loans kentucky, Rural Deveoplment, rural housing, Rural Housing Loans No Money Down Program, usda, USDA No money down mortgage Louisville Kentucky Kentucky housing corp 30 year fixed

Kentucky First Time Home Buyer Loan Programs for FHA, VA, KHC, USDA, Mortgage Loans in Kentucky for 2019

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