Tag: Freddie Mac

KY USDA Up-Front Guarantee Fee Increase Effective October 1st, 2015

2015 Kentucky Rural Housing USDA Changes

images (1)

KY USDA Up-Front Guarantee Fee Increase Effective October 1st, 2015

Any Kentucky RHS USDA loan that has not received conditional commitment from state Rural Development Offices in Lexington, KY by end of business on 9/30 will be subject to the 2.75% up-front guarantee fee increase.

Loan Purpose Loans obligated at RD on and after 10/01/2014 Loans obligated at RD on and after10/01/2015
Purchase Up-Front Guarantee Fee 2.0% 2.75%
Refinance Up-Front Guarantee Fee 2.0% 2.75%
First time home buyer loan in Louisville Kentucky
First time home buyer loan in Kentucky
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 
 Fax:     (502) 327-9119
 
 

 CONFIDENTIALITY NOTICE: This message is covered by the Electronic

Advertisements

Credit Scores Needed to qualify for a Ky Mortgage

 

What Credit Score do You Need to qualify for a FHA VA KHC USDA or Conventional Fannie Mae Kentucky Mortgage Louisville Kentucky
What Credit Score do You Need to qualify for a FHA VA KHC USDA or Conventional Fannie Mae Kentucky Mortgage Louisville Kentucky

Credit Scores Needed to qualify for a Ky Mortgage.

 

 

 

 

 

 

 

 

 

 

via Credit Scores Needed to qualify for a Ky Mortgage.

Debt Ratio Waivers and Compensating Factors for Kentucky USDA Rural Housing Development Loans for 2014

Kentucky First Time Home Buyers---Zero Down Loans Still Exist
502 USDA, guarantee loan, Kentucky Rural Development Frequently Asked Questions (Real Estate Professionals), rhs loans kentucky, Rural Housing Guidlines, USDA, USDA Rural Housing Guidlines

 Kentucky USDA Rural Housing Development Loans for 2014

Effective May 1, 2013, Agency concurrence of a debt ratio may be granted if all of
the following conditions are met:

1. The PITI is between 29 and 32 percent or the TD ratio is between 41and 44
percent;
2. The credit score of all applicant(s) is 680 or greater; and
3. At least one of the acceptable compensating factors listed below is identified and
supporting documentation is provided to the Agency.

Acceptable Compensating Factors and Supporting Documentation:

 The proposed PITI (proposed housing expenses) is equal to or less than the
applicant’s current verified housing expense for the 12 month period preceding loan
application. Verification of housing expenses may be documented on a Verification
of Rent (VOR) or credit report. The VOR or credit report must include the actual
payment amount due and report no late payments or delinquency for the previous 12
months. Rent or mortgage payment histories from a family member will not be
considered.

 Accumulated savings of liquid assets or cash reserves available post loan closing are
equal to or greater than 3 months of PITI payments. A Verification of Deposit or two
consecutive bank statements, dated within 45 days of loan application, that document
the average balance held by the applicant is required. Cash on hand is not eligible for
consideration as a compensating factor.

 The applicant(s) (all employed applicants) has been continuously employed with their
current primary employer for a minimum of 2-years. A “Request for Verification of
Employment” (VOE) (Form RD 1910-5, equivalent HUD/FHA/VA or Fannie Mae
form, or other equivalent), or VOEs prepared by an employment verification service
(The Work Number, etc.) must be provided. This compensating factor is not
applicable for self-employed applicants.

Kentucky RHS Mortgage Rates
Kentucky RD Mortgage Rates for the Ky USDA Guarantee Home 502 Program

 

 

 

 

 

 

 

Debt Ratio Waiver Request and Agency Approval:

Debt ratio waivers must be requested and documented by the approved lender, otherwise
the loan file will be denied. The Agency will review the debt ratio waiver request when
all of the following conditions are met:

1) The lender requests Agency concurrence with the debt ratio waiver by submitting
a signed underwriting analysis that captures one or more of the above
compensating factors. Lenders may utilize Fannie Mae 1008 / Freddie Mac 1077,
“Uniform Underwriting and Transmittal Summary,” or similar form;

2) The PITI is between 29 and 32 percent or the TD ratio is between 41 and 44
percent;

3) The underwriting credit score is 680 or greater for all applicants; and

4) The lender provides evidence of the compensating factor(s).

The Agency will notify the lender of concurrence with the debt ratio waiver request by
issuance of Form RD 1980-18, “Conditional Commitment for Single Family Housing
Loan Guarantee.” The Agency must check the ratio waiver box in the Guaranteed Loan
System for manually underwritten loans or on the USDA Administration page in GUS for
“Refer” or “Refer with Caution” underwriting recommendation files. All supporting
documentation of the compensating factors must be imaged as an essential document in
the Rural Development Imaging Repository.

Summary

There will be no exceptions to the defined ratio thresholds and minimum credit score
requirements. Only the compensating factors listed in this AN with supporting
documentation will be considered for Agency concurrence with a debt ratio waiver.

This AN does not apply to any GUS loan file that receives an “Accept” underwriting
recommendation.

n

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
 800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com 

This website is not acting on behalf of or at the direction of HUD/FHA, USDA, KHC,  VA  or the Federal Government.

HUD Settlement Cost Booklet | CHARM Booklet
Company NMLS Consumer Access Page

Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House

Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House.

via Secretary Announces Refinancing Help for Rural USDA Home Loan Borrowers in Select States | The White House.

Understanding and Improving Your Credit Scores

Understanding and Improving Your Credit Scores.

via Understanding and Improving Your Credit Scores.

4 Ways You Might Be Hurting Your Credit Score (And What You Can Do About It)

Factors contributing to someone's credit score...
Factors contributing to someone’s credit score, for Credit score (United States). (Photo credit: Wikipedia)

4 Ways You Might Be Hurting Your Credit Score (And What You Can Do About It).

Kentucky FHA, VA, KHC, Rural Housing and Fannie Mae Loan Free Pre-Approvals for Mortgage Loans

via 4 Ways You Might Be Hurting Your Credit Score (And What You Can Do About It).

Live5News.com | Charleston, SC | News, Weather, Sports

Understand Your Credit Score To Help Avoid Foreclosure : Fannie Mae

Understand Your Credit Score To Help Avoid Foreclosure : Fannie Mae.

3button_quickquote1

Seller Concessions to Close the Transaction

Seller Concessions to Close the Transaction.

via Seller Concessions to Close the Transaction.

Kentucky USDA Rural Development Single Family Housing Guaranteed Loan Program

Logo of the USDA Rural Development office, par...
Logo of the USDA Rural Development office, part of the Department of Agriculture. (Photo credit: Wikipedia)
Fill out my form!

Kentucky USDA Rural Development Single Family Housing
Guaranteed Loan Program

APPLICANT BENEFITS

 100 percent financing available with no down payment required. Eligible repairs and
closing costs may be included in the loan up to the appraised value of the property.
 Upfront guarantee fee may be included in the loan amount above the appraised value.
 Existing or new construction homes including all Planned Unit Development’s (PUD’s) are
eligible.
 Condominiums may be eligible.
 30 year loan terms with fixed interest rates.
 No pre-payment penalties.
 Satisfactory credit and qualifying ratios apply. Nontraditional credit histories may be
eligible.

APPLICANT REQUIREMENTS

The following information is not all inclusive. For complete information refer to RD
Instruction 1980-D, supplemented by applicable Administrative Notices (AN) available
online at http://www.rurdev.usda.gov/RegulationsAndGuidance.html http://www.rurdev.usda.gov/RegulationsAndGuidance.html. 
APPLICANT ELIGIBILTY
The applicant must:
 Be a U.S. Citizen, legally admitted as a permanent resident, or be a qualified alien.
 Have the legal capacity to incur the loan obligation.
 Be unable to secure credit with rate and terms reasonable to the applicant without a
guarantee from the Single Family Housing Guaranteed Loan Program (SFHGLP).
 Not own a home within the local commuting area at the time of loan closing. Applicants that
do own a home that is structurally unsound or functionally inadequate, or is located outside
of the local commuting area may still be eligible for guaranteed loan consideration.
 Occupy the home purchased in an eligible rural area as their permanent primary residence.
 Have stable and dependable income to ensure repayment ability. Households may not
exceed the moderate income limit established for the applicable rural area.
 Have an acceptable credit history that demonstrates the willingness and ability to meet
financial obligations as they become due. If applicants exhibit unacceptable credit per RD
Instruction 1980-D, section 1980.345(d) the approved lender may still consider the
applicant if documented evidence of strong compensating factors as outlined in section
1980.345(d)(3) exists.

ANNUAL INCOME LIMITS

 Annual income includes the total gross income of the applicant, co-applicant, and any other
adult (age 18 and up) household members.
 Adjustments to annual income may be deducted for program eligibility determination.
Deductions may be made for dependants, eligible annual childcare expenses, disability
expenses, and annual medical expenses for elderly families. Please discuss eligible
deductions with your SFHGLP contact.
 Income limits are published for each county as an Exhibit to RD Instruction 1980-D and are
available online at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

REPAYMENT ABILITY: DEBT/INCOME RATIOS

 Repayment ability is determined by calculating the following ratios:
– PITI (Principal, Interest, Real Estate Taxes, and Homeowner Insurance): The total PITI
payment divided by the repayment income must be 29 percent or less.
– Total Debt (TD): The PITI payment plus all other monthly debt obligation payments
divided by the repayment income must be 41 percent or less.
 Repayment ratios that exceed 29 and/or 41 percentmay be approved by Rural
Development when a ratio waiver request is provided by the approved lender. The ratio
waiver must document and provide evidence of strong compensating factors to support the
request. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012
1400 Independence Ave., S.W. Washington D.C. 20250-0784
202.720.1452
Examples of strong compensating factors include but are not limited to:
– Current rent/housing payment is equal to or less than the proposed PITI.
– Applicant has a history of devoting a similar percentage of income to housing expense
similar to the PITI over the previous 12 months.
– Strong credit score and repayment history.
– Reserves are available post loan closing, which evidence the applicant’s ability to
accumulate savings.

PROPERTY REQUIREMENTS
ELIGIBLE RURAL AREA

The property must be located in an eligible rural area as defined in 7 CFR 3550.10 as:
1. Open country which is not part of or associated with an urban area.
2. Any town, village, city or place, including the immediate adjacent densely settled area,
which is not part of or associated with an urban area and which:
a. Has a population not in excess of 10,000 if it is rural in character, or
b. Has a population in excess of 10,000 but not in excess of 20,000, is not contained within
a Standard Metropolitan Statistical Area, and has a serious lack of mortgage credit for
very low, low and moderate income households as determined by the Secretary of
Agriculture and the Secretary of HUD.
Property eligibility is available online and through GUS.

EXISTING HOMES

 Properties must meet HUD Handbooks 4150.2 and 4905.1. An FHA Roster appraiser or
licensed residential appraiser deemed qualified by the approved lender may certify to this
determination.
 A separate home inspection report prepared by the appraiser or a home inspector deemed
qualified by the approved lender is an acceptable option to ensure properties meet
minimum standards.
 Homes must be structurally sound, functionally adequate and in good repair, or will be
improved to meet good repair.
 There are no thermal performance standards for existing homes.
 Private water systems/wells: The local health authority or state certified laboratory must
perform a water quality analysis, which must meet state and local standards.
 Private septic systems: The septic system must be free of observable evidence of failure. An
FHA Roster appraiser, government health authority, licensed septic professional or
qualified home inspector may perform the septic system evaluation.
 Termite: If required by the lender, appraiser, inspector, or State law, a pest inspection must
be obtained to confirm the property is free of active termite infestation.
 Repairs: Any repairs necessary for the dwelling to be structurally sound, functionally
adequate and in good repair must be completed prior to the request of the loan note
guarantee. Exception: Escrow accounts that meet the requirements of RD Instruction
1980-D, section 1980.315 are allowed for exterior weather delayed repairs. When eligible
escrow accounts are established per section 1980.360(2)(ii) the loan note guarantee will be
issued without the repairs complete.
 Existing homes have been completed for more than 12 months or have been completed for
less than 12 months but have been previously occupied. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012

NEW CONSTRUTION

 Evidence the home was built in accordance with certified plans and specifications (e.g.,
International Residential Building Code, CABO, BOCO, etc.) must be obtained through an
eligible building permit, certificate of occupancy, or certification for a qualified individual or
organization that reviews plans and specifications.
 Evidence of construction inspections performed throughout the project in accordance with
section 1980.341(b)(2) must be retained. Acceptable documentation includes an eligible
certificate of occupancy or copies of three inspections performed: (1) inspections prior to
footing and foundation poured, (2) inspections of plumbing, electrical, and mechanicals
before the shell is enclosed, and (3) a final inspection will meet requirements.
 Evidence of a builder’s warranty. Minimum one year issued by the builder. If the builder
has offered a 10 year insured builder’s warranty acceptable to the Agency, this may be
accepted and evidence of construction inspections will be waived.
 Thermal performance requirements must meet the 2006 IECC code. An eligible building
permit, certificate of occupancy, final inspection, or 10 year insured builder’s warranty is
acceptable evidence this requirement has been met.
 New construction homes have been completed (as evidenced by a certificate of occupancy)
for less than 12 months and have never been occupied.
 New manufactured homes must be purchased from an approved dealer –contractors (your
SFHGLP contact can provide a list of those approved in your state). A unit is considered
new if the purchase agreement is dated within 12 months of the date the unit was
manufactured. The date of manufacture is available on the factory installed plate on the
unit.

LOAN REQUIREMENTS
LOAN PURPOSES

 Loans must be secured by a first lien on real property in an eligible rural area.
Loan funds may be used to:
 Purchase an existing or new construction (stick built, modular, or manufactured) home.
 Purchase or pay off a site as part of a new construction package.
 Purchase and improve an existing home. Improvements must be complete before a loan
note guarantee will be issued. Exception: Escrow accounts are allowed for weather delayed
exterior repairs only.
 Include eligible loan fees, including legal fees, title services, and eligible closing costs.
 Refinance existing Section 502 Direct and Guaranteed loans. If only the principal balance
and the guarantee fee will be financed, no new appraisal is required. If the applicant wishes
to include eligible closing costs into the loan, a new appraisal is required. A new appraisal is
always required for Section 502 Direct loan refinances.
LOAN LIMITS
 The maximum loan amount is 100 percent of the appraised value plus the upfront
guarantee fee.

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

Kentucky USDA Rural Housing Loan Program

Kentucky USDA Rural Housing Loan Program

Kentucky First Time Home Buyers---Zero Down Loans Still Exist

 

 

LOAN TERM: 30 year only

LOAN FEATURES:

 Maximum LTV– 100%No down-payment required if not financing guarantee fee.
 Guarantee Fee of 2% for purchase transactions (2%for refinances) can be
financed in the loan amount.
For existing site built single family. (More than 1 year old or previously lived in) and new
construction builder to borrower.
Full appraisal is required, appraiser must be HUD approved. (Note exception under
refinance.)

Effective October1, 2011 for commitments issued through USDA on all purchase
transactions, an up front guarantee fee equal to 2% of the loan amount and an annual fee
of 0.4%of the unpaid principal balance will be charged. Refer to the link below for
additional information through USDA. The upfront guarantee fee will be 2% for
refinances (with 0.4% annual fee) for commitments issued by USDA on 10/1/2012
and after (annual fee is collected monthly as part of regular mortgage payment).

USDA Frequently Asked Questions Implementation of Annual Fee
PROPERTY

: Must be in a rural area as determined by USDA Rural Development. (Website–

http://eligibility.sc.egov.usda.gov)Minimum loan amount $75,ooo
No Condo’s.
No Manufactured homes.
Property must be in good condition. “As is” appraisal not acceptable when repairs
listed.
Homes with in-ground pools are eligible on a case-by-case and value of pool must be
subtracted as no financing available for pools. N/A on refinance loans.
Land value not to exceed 30% of total value.
Property must have public, state or county maintained roads and property must have
direct access to street or road.
If property is located in a subdivision, then subdivision must be approved by local,
regional, state or federal agency. Need documentation to support.
All improvements– repairs must be complete prior to closing, no escrow holdbacks
At closing.
All appraisers must be currently approved by FHA. See most current list dated
October1, 2009.
All electrical, plumbing, heating, water and waste disposal systems must meet HUD
requirements. If applicable, home Inspection report required by a qualified inspector.
All wells and septic systems must meet HUD requirements and must be cleared by
underwriter prior to closing.USDA Parameters 2 12/17/2012
PROPERTY:
(Continued)
Termite inspection required as determined by Rural Development Conditional
Commitment and must be cleared by underwriter prior to closing.
The property must be non-farm, non-income providing tract.
Appraiser to certify property meets current requirements of HUD Handbooks–
150.2 and 4905.1.
If the builder is providing a one-year warranty for new construction, the following
inspections are required: framing inspection, footing inspection and final inspection. If
the builder is providing a 10-year warranty, only the final inspection and the thermal
certification are required.
If property is not located in a platted subdivision, a survey will be required.
Appraisals are valid for 6 months. If over 6 months a new appraisal is required.
Properties having community wells or sewage systems will require a state operating
permit, evidence of compliance with the Safe Drinking Water Act and Clean Water
Act and a legal binding contract to enforce the obligation of the operator to provide
satisfactory service at reasonable rates-must be maintained in our file.
 Property must be held in Fee Simple, no leaseholds.

INELIGIBLE
AREAS:
See USDA website for eligible areas. http://eligibility.sc.egov.usda.gov

INCOME:
Adjustments to income– $480.00 per child < 18 or 18+ if fulltime student,
100% child care paid.
Borrower must be within income limits. Refer to:
http://eligibility.sc.egov.usda.gov for validation.
Salary Income– VOE – 24 month-history plus most recent pay-stub or 2 paycheck stubs
covering most recent 30 days and W2 for previous 2 years and processor
certification of employment within 10 business days of closing. Any gap of
employment beyond one (1) month must be explained by borrower.
Self-employed and Commissioned borrowers or employed by a relative– 2-year tax
returns required to reflect income is stable and will continue.
Part-time jobs–24-month history required.
Alimony, child support– must have received for 12 months and will continue for 3
years after application. Must document receipt for last 12 months consecutive
Reflecting no breaks in income.
3-year continuation for social security income, disability income, retirement income, etc.
Borrower’s adjusted annual income cannot exceed the appropriate moderate income
limit. Refer to http://eligibility.sc.egov.usda.gov.
All household income must be included in the total eligibility income, even if not on the
loan, however, for qualifying purposes, use the income for borrowers signing
the Note.
All qualifying income must be stable and likely to continue for the next 3 years.
Significant increase /decrease must be analyzed closely to make sure income used
to qualify will continue.

All collections and judgments must be satisfied unless the total is <$1,000 and
The accounts are at least 12 months old.
Credit 640 minimum– No Exceptions. All borrowers must have a minimum of 2 credit
scores (borrower with one credit score is unacceptable). Borrower’s
Ability to pay on time must be analyzed regardless of credit score. No collections in
last 12 months.
Borrower must not have any late rent/mortgage payments in last 24 months.
Except for obligations specifically excluded by state law, the debts of non purchasing
spouse in a community property state must be included in the qualifying ratios. This
must be documented by a credit report on the non-purchasing spouse. The GUS system
will only pull credit for applicant, so this must be pulled outside of GUS.
Previous Mortgage– all previous mortgages disposed of through a sale, trade or
transfer without a release of liability must be included in the debt ratio
calculation unless you can provide evidence the party other than our borrower
has made payments over the last12 months. In a divorce settlement, a divorce
decree, along with a release of liability from the mortgage credit or must be
presented as evidence reflecting our borrower is no longer legally responsible for
the mortgage payment. If this cannot be provided, you must include that debt in the
qualifying ratios. Quit Claim Deeds do not remove liability for mortgage debts.
Borrower cannot be delinquent on any tax or non-tax debts and there can be no
judgment liens against the borrower’s property for a debt owed to the Federal
Government. Crescent to check HUD’s Credit Alert Voice Response System for
each borrower.
3 years since Chapter7 and Chapter 13 discharged 1 year.
 Deferred student loans must be included indebt ratio. Calculate 1% of outstanding
balance.

object_requestinfo

 

 

 

 

 

 
UNDERWRITING:

 

Age of credit/income docs – within 90 days of Note date.
All loans must be approved through USDA, GUS System
Debt Ratio– 29% PITI / 41% Total Debt. Exception to 45% with strong comp.

All debts over 6 months must be in debt ratio. All co-signed debts must be included in
debt ratio unless you can provide evidence someone other than the borrower has made
payment for the last 12 months.
Gift letters OK.
6% of sales contract for seller contributions.
Escrows required–no exceptions.USDA Parameters 4 12/17/2012
UNDERWRITING:
(Continued)
Closing costs maybe included in the loan up to appraised value when the sales contract is
lower than the appraised value. Discount points cannot be financed unless
borrower’s income is in the low income household bracket as defined by Rural
Development, underwriter to establish.
The borrower must not have sufficient assets to meet the down payment and closing cost
requirements associated with a conventional uninsured mortgage (LTV<80%).
.
Secondary financing not allowed.

Non-occupant co-borrowers are not allowed.

Borrower cannot own other homes within local commuting area.

No lates in last 12 months.

 All student loan debt, including loans in repayment AND deferred, must be in qualifying
ratio.

 Loans secured against personal assets, such as a 401k account retirement or other liquid
asset are not considered in the debt ratio.

 The “Accept” recommendation in GUS will be downgraded to a “Refer” and manual
underwrite will apply when all debts on the application are not verified on the credit
report. This may require different documentation and a full underwrite through the
USDA office. Risk layers – (payment shock, credit waiver, ratio waiver) can only allow
1 risk layer and the file must have strong, documented compensating factors.

REFINANCE: RATE/TERM (Non-Streamlined) for Kentucky USDA Rural Housing Loans

 OnlyKentucky  USDA Guaranteed loans eligible (no Direct loans)
 Current appraisal required
 Closing costs, lender fees and the new guarantee fee may be financed in the new loan to
the extent that the new appraisal supports the loan amount (100% max LTV before
guarantee fee added).
 Unpaid fees, such as late fees due the servicer, are not eligible to be included in the new
loan amount.
 GUS should be run with favorable resultsUSDA Parameters 5 12/17/2012
REFINANCE:
(Continued)
 Up front Guarantee fee of 2% and annual fee of 0.4% apply.
 Subject property must still be the borrower’s primary residence
 Loan must have been fully documented, underwritten and originated in compliance with
RD instruction 1980-D, supplemented by published Administrative Notices.
 Any late mortgage payments within the past 36 months on the existing USDA loan, with
emphasis on the most recent 12 month period, must be analyzed and addressed by the
lender to determine if any late payments were a disregard for financial obligations, an
inability to manage debt, or factors beyond the control of the borrower when considering
the underwriting decision.
 Maximum ratios 29/41
 30 year fixed rate loan only
 Interest rate must be lower than the existing loan to be refinanced
 If the final settlement statement shows nominal cash back to the borrower, that amount
must be applied as a principal curtailment. The borrower can receive no cash back from
the transaction.

getQuotes

 

 

 

 
KENTUCKY USDA RURAL HOUSING STREAMLINED REFINANCE

 Only USDA Guaranteed loans eligible (no Direct loans)
 The value of the new mortgage loan request can be supported by the original appraisal
report obtained in connection with the existing mortgage.
 The maximum loan amount cannot exceed the principal balance of the existing loan to be
refinanced, plus the guarantee fee. The new loan amount cannot include any accrued
interest, closing costs or lender fees.
 Loan must be manually underwritten (GUS is not run).
 Up front Guarantee fee of 2% and annual fee of 0.4% apply.
 Subject property must still be the borrower’s primary residence
 Loan must have been fully documented, underwritten and originated in compliance with
RD instruction 1980-D, supplemented by published Administrative Notices.
 Any late mortgage payments within the past 36 months on the existing USDA loan, with
emphasis on the most recent 12 month period, must be analyzed and addressed by the
lender to determine if any late payments were a disregard for financial obligations, an
inability to manage debt, or factors beyond the control of the borrower when considering
the underwriting decision.
 Maximum ratios 29/41
 30 year fixed rate loan only
 Interest rate must be lower than the existing loan to be refinanced
 If the final settlement statement shows nominal cash back to the borrower, that amount
must be applied as a principal curtailment. The borrower can receive no cash back from
the transaction.
Please note that the USDA Refinance Pilot program has different guidelines.
StartYourApp_button

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*