Popular Kentucky Mortgage Terms To Know

Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans made the following changes to the “Popular Kentucky Mortgage Terms To Know”

Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans made the following changes to the “Popular Kentucky Mortgage Terms To Know”

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Kentucky USDA Guideline Changes for Income, Student Loans, and total debt ratios.

Kentucky USDA Guideline Changes for Income, Student Loans, and total debt ratios.

Kentucky USDA Guideline Changes for Income, Student Loans, and total debt ratios.

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Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying https://kyfirsttimehomebuyer.wordpress.com/2021/08/18/effective-on-9-18-21-fannie-mae-announced-that-their-automated-underwriting-system-will-now-take-an-average-of-the-two-scores-for-qualifying/ via
@kentuckyloan
#creditscore #ficoscore #mortgage #homeloan #mortgagebroker

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying https://kyfirsttimehomebuyer.wordpress.com/2021/08/18/effective-on-9-18-21-fannie-mae-announced-that-their-automated-underwriting-system-will-now-take-an-average-of-the-two-scores-for-qualifying/ via @kentuckyloan #creditscore #ficoscore #mortgage #homeloan #mortgagebroker

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Benefits and Drawbacks of Kentucky VA Mortgage Loans

Kentucky VA Mortgage  Loans

Louisville Kentucky Mortgage Loans

Kentucky VA Mortgage  Loans

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What is a debt to income ratio for a Kentucky Mortgage?

A debt to income ratio, commonly referred to as DTI, is the ratio of the amount of monthly expenses you have relative to your gross (before tax) income.

The automated underwriter will look at two ratios when analyzing your DTI: your front end DTI ratio and your back end DTI ratio.

Front End DTI

The front end DTI is the ratio of your new housing payment including taxes and insurance relative to the amount of income you earn. The front end DTI ratio excludes all other debts and simply analyzes your income relative to the payments on the new mortgage plus tax and insurance.

So, if your mortgage payments including tax and insurance are $1,000 and you earn $4,000 per month in gross income, your front end DTI would be 25% ($1,000 / $4,000 = 25%).

Generally, the automated underwriter likes to see front end DTI ratios below 40%, although it will approve higher front end DTI ratios with compensating factors like high credit scores, money in the bank, low loan to value ratio, etc.

Back End DTI

The back end DTI is the ratio of all of your expenses appearing on your credit report plus your new mortgage payment including taxes and insurance divided by your gross monthly income. The back end DTI ratio does not include things like utilities, health insurance or groceries. It is calculated using only the liabilities appearing on your credit report plus any child support or garnishments that may appear on your paystubs.

So, to continue our example from above, if your mortgage payments with tax and insurance are $1,000 per month, you have a $250 car payment, $250 in credit card payments and a gross income of $4,000, your back end DTI is 37.5% ($1,500 / $4,000 = 37.5%).

Generally the automated underwriter likes to see back end DTI ratios under 45%. However, it will approve loans with a 55% back end DTI or higher if there are compensating factors.

It is important to understand what a debt to income ratio is, however, you do not have to calculate it yourself. Your Loan Originator and your Processor will do this for you.

Louisville Kentucky Mortgage Loans

A debt to income ratio, commonly referred to as DTI, is the ratio of the amount of monthly expenses you have relative to your gross (before tax) income.

The automated underwriter will look at two ratios when analyzing your DTI: your front end DTI ratio and your back end DTI ratio.

Front End DTI

The front end DTI is the ratio of your new housing payment including taxes and insurance relative to the amount of income you earn.  The front end DTI ratio excludes all other debts and simply analyzes your income relative to the payments on the new mortgage plus tax and insurance.

So, if your mortgage payments including tax and insurance are $1,000 and you earn $4,000 per month in gross income, your front end DTI would be 25% ($1,000 / $4,000 = 25%).

Generally, the automated underwriter likes to see front end DTI ratios below 40%, although…

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VA Updated Guidance for Borrowers Affected Financially by COVID-19

VA Updated Guidance for Borrowers Affected Financially by COVID-19

Louisville Kentucky Mortgage Loans

VA Updated Guidance for Borrowers Affected Financially by COVID-19

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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 the $0 Down.• Seller can pay 6% of closing costs. • Income Limitations – Any primary home.

. FHA $0 Down – one of my lenders offers FHA Down Payment Assistance by way of a 2nd Mortgage.• FICO Score 620. • Ideal for First Time Home Buyers. • 2 Mortgages: 1 for 96.5% and 2nd for 3.5%.• Largest loan size based on county: $356,362• Seller can pay closing costs up to 6% of price

Louisville Kentucky Mortgage Loans

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 the $0 Down.• Seller can pay 6% of closing costs. • Income Limitations – Any primary home.

. FHA $0 Down – one of my lenders offers FHA Down Payment Assistance by way of a 2nd Mortgage.• FICO Score 620. • Ideal for First Time Home Buyers. • 2 Mortgages: 1 for 96.5% and 2nd for 3.5%.• Largest loan size based on county: $356,362• Seller can pay closing costs up to 6% of price

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Kentucky Home Loan Program Requirements for FHA, VA, USDA and Conventional Mortgage loans.

USDA

Minimum credit score: 620
100% maximum LTV
Manual Underwrites
No maximum loan amount
USDA Streamlined, Streamlined-Assist, and Rate/Term refinances allowed

Kentucky First-Time Homebuyer Loan Programs for FHA, VA, KHC and USDA Mortgage Loans in Kentucky

FHA

  • Minimum credit score
  • 580 AUS Approved
  • 580 Manual
  • Non-Credit Qualifying Streamline refinances allowed
  • Gift funds allowed for down payment and closing costs
  • Cash out 80% LTV

VA

  • Minimum credit score
  • 600AUS approved
  • 620 manual
  • Cash-out up to 90% LTV
  • Foreclosure/Short Sale/Bankruptcy <2 years allowed with AUS Approval

USDA

  • Minimum credit score:620
  • 100% maximum LTV
  • Manual Underwrites
  • No maximum loan amount
  • USDA Streamlined, Streamlined-Assist, and Rate/Term refinances allowed

CONVENTIONAL

  • Minimum credit score:620
  • Fannie Mae
  • Freddie Mac
  • Standard and High Balance
  • HomeReady
  • HomePossible

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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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