I am a Kentucky based USDA Mortgage Lender that has originated over 200 KY Rural Housing Mortgage Loans in Kentucky, Put my expert advice to use. Kentucky Rural Development RHS loans give KY Rural Homebuyers a zero down mortgage loan with a low 30 year fixed rate loan. A Local Kentucky Rural Housing Mortgage Lender offering same day free approvals and credit report. This website is not affiliated with USDA or any other government agency. NMLS#57916 Equal Housing Lender Text or call today 502-905-3708 with your mortgage questions about USDA Rural Housing Loans in Kentucky. Free Pre-Approvals on most applications within the same day. Kentuckyloan@gmail.com
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KHC offers two Down payment Assistance Programs (DAPs) to make home buying affordable for Kentuckians.
KHC = Kentucky Housing Corporation
DAP = Down Payment Assistance Program.
Depending on your individual qualification criteria (credit, income, etc), you would receive up to $6,000 from KHC to apply towards the down payment (if applicable below), closing costs, or both. You could go VA without the assistance of KHC since there potentially would be no down payment required, but then you’d be responsible to cover any closing costs. Going through KHC would be your best shot at getting to a truly “zero down” situation. Hope this helps.
Conventional loans – these are secured by Fannie Mae or Freddie Mac and they’re also responsible for setting the program guidelines. This is one of the most common loan programs people choose when buying a house.
Conventional loans have a First Time Home Buyer option that allows for as little as 3% down. Thetypical down payment for a Conventional loan is 3-5% and with a 20% down payment can avoid PMI (Private Mortgage Insurance) completely.
Conventional loans require a 620 minimum FICO score and allow debt-to-income ratios as high as 50%. They can be more challenging to qualify for than some of the other programs and the interest rates are very credit sensitive, meaning that the lower the credit score the higher your rate will be. PMI is also credit score based, so the lower the scores…
If you are looking to buy a home in Northern Kentucky, to either own a home on acreage in the country with 100% financing on your home loan with zero down, then you need to look at the Kentucky USDA Rural Housing Loan Program.
How Does the USDA Home Loan Work in Northern Kentucky?
Here are some of the Key Financial Elements of the USDA Home Loan in Northern Kentucky:
Low to Middle-Income Households are generally eligible – If the Household Income is too high, you may be ineligible.
30 Year Fixed Term Loans at Today’s Low Interest Rates compared to FHA, USDA and other government mortgage loans
Qualifying rations are 29% for Housing and 41% for total debt. or possibly higher with a credit score over 640.
Rural Development Loan Guarantee Fee applies, currently 1% USDA funding fee and .35% monthly mi premium
Zero Cash required for the Down Payment. If access to 20% down payment, then you cannot use this program.
Flexible Credit Guidelines, where non-traditional histories may be accepted. USDA will do a no score loan, but it is very difficult to qualify for so your best bet is to get your credit scores to 620 to 640 range and go from there. You will need two trade lines on the credit report for last 12 months, so no limited credit history is allowed on this program.
Eligible properties include: Existing Homes, New Construction, New Manufactured Homes, Modular Homes, and eligible Condos!—No used mobile homes.
Eligible Repairs may be included in the loan as well! If home appraises for more than sales price, sometimes you can finance these repairs into the loan.
They’re are two income tests. Compliance income and repayment income. See pic below for answers about Northern Kentucky Counties with max income limits for household
Home must be in an eligible area. See map below of Northern Kentucky Eligibility for USDA Rural Housing Loans
What Parts of Northern Kentucky Are Eligible for the USDA Home Loan in 2019?
With Northern Kentucky being part of the metro area of Cincinnati, the USDA has provided a map of the Ineligible Northern part of the Counties of Boone, Kenton, Campbell counties which means, the remaining southern part of the counties of Boone, Kenton, Campbell being eligible. Here is the Northern Kentucky rural housing map courtesy of the USDA:
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.
Here are a few more items to check off before looking into this loan or at a particular property:
Must be Owner Occupied as the Primary Residence;
Home must not be used to produce Income, nor can there be Income Producing Buildings or other Accessories that produce Income on the property; i.e. no working farms or cows, livestock, crops etc. Can be a small hobby farm.
No foreclosed homes that that need a lot of work.
Home must be structurally sound and in reasonably good repair and pass FHA standards on an appraisal.
Home cannot be used for a Rental Property or, be a major fixer
Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
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.
Homeownership/Housing i Rehab Programs prepared for Barry Ramsey USDA Rural Development Housing Program Director / IL April 16, 2012 Committed to the future of rural communities Two Separate and Distinct
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…