Category: VA

New Fannie Mae Home Foreclosures in Kentucky — Kentucky First Time Home Buyer Loans for 2017

New Fannie Mae Home Foreclosures in Kentucky $21,900Active 210 N 35th St Louisville, KY 40212 2 Beds |1 Baths | 1119 sq. ft. View Property $28,500Active 1002 S 43rd St Louisville, KY 40211 3 Beds |1 Baths | 1692 sq. ft. View Property $96,900Active 111 Park Ave Erlanger, KY 41018 4 Beds |3 Baths | […]

via New Fannie Mae Home Foreclosures in Kentucky — Kentucky First Time Home Buyer Loans for 2017

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
text or call my phone: (502) 905-3708
email me at 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.

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USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011

USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011

USDA Mortgage Update: Monthly Mortgage Insurance Starting October 1,2011
According to a recent Administrative Notice (AN4557) sent out by USDA, starting October 1, 2011 the upfront guarantee fee will be reduced from 3.5% of the loan amount to 2% with the addition of minimal monthly mortgage insurance on all purchase transactions with the USDA No Money Down Mortgage.
On a refinance transactions involving USDA Mortgages, the upfront guarantee fee will remain at 1% of the loan amount but will include the monthly mortgage insurance.
The annual fee (divided by 12 months gives you the monthly mortgage insurance fee) and upfront guarantee fee are subject to change annually to maintain a subsidy neutral program.
What does “to maintain a subsidy neutral program” mean? It means the USDA program is trying  to model it’s self after the FHA and VA programs which are self sustaining/self funded and do not require congressional approval for funding.
This is great news for tax payers in general but not so much for the potential new home buyer and here’s why. As you see from the example below, the new monthly mortgage insurance will increase your monthly payment which in turn effects your debt to income ratio. Your debt to income ratio is one of the primary factors looked at when an underwriter determines your eligibility for any mortgage and USDA Mortgages have some semi-restrictive debt to income guidelines.
The other down side here is that the monthly mortgage insurance will NEVER go away! Unlike FHA Mortgages or even Conventional Mortgages, the USDA Mortgage will require the monthly mortgage insurance for the entire life of the loan. This will pretty much ensure that you will want to refinance out of your USDA Mortgage and into a Conventional Mortgage without mortgage insurance as soon as you have enough equity in your home.
Current USDA USDA After 10/01/2011
Sales Price $200,000.00 $200,000.00
Loan Amount with USDA Guarantee Fee $207,253.00 $241,250.00
Monthly Payment (with mortgage insurance after 10/2011 on the right) $1,019.56 $1,053.56
Difference In Payment $ 34.00more per 

Apply for a home loan by clicking the link below: It’s free and takes less than 5 minutes Or call us at 502-905-3708 for your free application over the phone

Key Financial Mortgage of Ky (NMLS# 1800) is not affiliated nor a part of the USDA Government Agency.