Tag: Refinancing

How to buy a house in Kentucky with Zero Down Payment Mortgage Loan


How to buy a house in Kentucky with Zero Down Payment Mortgage Loan
How to buy a house in Kentucky with Zero Down Payment Mortgage Loan
byu/AblePost7537 inMortgageQuestionsKY

First-Time Home Buyer Loans in Kentucky

FHA Loans 

Kentucky FHA loans are one of the most popular options for first-time buyers due to their flexible requirements in regards to lower credit scores, previous bankrupticeo or foreclosures or high debt to income ratios:

  • Credit score needed: As low as 580 for 3.5% down; scores between 500-579 require a 10% down payment.
  • Down payment: 3.5% of the home’s purchase price. 10% down payment needed for scores between 500-579
  • Mortgage insurance: Required on all loans regardless of down payment or equity position. Can make the loan more expensive when compared to Conventional Loans 
  • Work history: 2 years of consistent employment or income.
  • Bankruptcy: You can qualify for an FHA loan 2 years after a Chapter 7 bankruptcy discharge, or 1 year after a Chapter 13 discharge, with court approval.
  • Debt to Income Ratios: Can be higher than Conventional loans. The max backed end ratio on AUS approval is 56.99% and 45% on the front end ratio. 

Kentucky VA Loans

If you’re a Kentucky veteran, active-duty service member of the Army, Airforce, Marines, Coast Guard, or qualifying spouse, VA loans offer a powerful path to homeownership:

  • Credit score needed: VA does not have a minimum score but most lenders typically like to see a 620 credit score or higher. I have closed some VA loans under 620 so it can be done but typically much better rates and fees on higher scores.  
  • Down payment: None required. Can put money down to lower the upfront mortgage insurance.
  • Mortgage insurance: No mortgage insurance, though there’s a one-time funding fee and it varies depending on usage and down payment and either a refinance or purchase. 
  • Work history: You must show stable income and employment, but the VA loan program is flexible with unique employment situations. If you are getting out of the military and getting a new job typically must be in line with your MOS. 
  • Bankruptcy: VA loans allow approval 2 years after Chapter 7 or 1 year after Chapter 13 bankruptcy.

Kentucky USDA loans

Designed for Kentucky Home Buyers in rural areas outside major metro areas of Kentucky , USDA loans offer another no-down-payment option:

  • Credit score needed: Typically 640 or higher. but can go down lower to 620 on a manual underwriter sometimes with lenders. Will need compensating factors such as a positive rental history for last 12 months, low debt to income ratio  (under 29% and 41% resopeivitley) and 1-2 months reserves and no payment shocik on the loan.
  • Down payment: None required.
  • Mortgage insurance: USDA loans have an upfront fee of 1% of the loan amount and an annual fee of 0.35%. Life of loan and does not vary based on down payment or term. USDA only does 30 year rate term loans. 
  • Work history: A stable income is required, with proof of 2 years’ work history.
  • Bankruptcy: USDA loans require a 3-year waiting period after a bankruptcy or foreclosure.

Kentucky Housing Corporation (KHC) Loans

KHC offers several programs to help first-time homebuyers:

  • Down payment assistance: Up to 10,000 in down payment and closing cost assistance for qualifying buyers. 10k is based on a second mortgage over 10 years at 3.75% rate. Not a true grant. Has to be paid back. 
  • Credit score needed: Minimum 620 for most programs.
  • Income limits: KHC programs are income-based, so you’ll need to meet certain household income limits.
  • Work history: Two years of consistent employment are typically required.
  • Debt Ratio: 50% max debt ratio on backend and front end. 
  • Rates and Terms: Since it is the State Housing Agency, every borrower gets the same set of rates and terms no matter which lender you use. 

Checklist of Documents Needed for a Kentucky First-Time Home Buyer Loan

  • Government-issued ID (driver’s license, passport)
  • Social Security number
  • Pay stubs for the last 30 days
  • W-2 forms for the last 2 years
  • Federal tax returns for the last 2 years
  • Bank statements for the last 2-3 months
  • Proof of any additional income (child support, alimony)
  • Employment verification
  • List of all debts and assets
  • Bankruptcy discharge papers (if applicable)
  • Gift letter (if using gift funds for your down payment)

Highly Rated Best Mortgage Company in Kentucky

Finding the right lender is crucial when purchasing your first home. One of the top-rated mortgage companies in Kentucky is Joel Lobb. Joel specializes in helping first-time homebuyers navigate FHA, VA, USDA, and KHC loan programs. With over 20 years of experience and a dedication to personal service, Joel has helped over 1,300 families secure their dream homes. His reputation for offering same-day approvals and free pre-qualifications makes him a trusted name in the industry.

For more information, contact Joel Lobb:

Final Thoughts

Purchasing a home for the first time in Kentucky can be an exciting journey. With a variety of loan options available—like FHA, VA, USDA, and KHC loans—you can find a mortgage that fits your needs, even if you have a bad credit score or are dealing with bankruptcy. Be sure to compare interest rates, understand mortgage insurance requirements, and follow a clear checklist of documents to make the home-buying process as smooth as possible.

—

Joel Lobb  Mortgage Loan Officer Expert on Kentucky Mortgage Loans 

1 –  Email – kentuckyloan@gmail.com 2.   Call/Text – 502-905-3708

https://www.mylouisvillekentuckymortgage.com/

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


Here are action steps you can take right now to buy a home in Kentucky in 2025

National Association of Realtors (NAR) recently reached a settlement that impacted real estate commissions for different mortgage loan types in Kentucky


On March 15th, 2024, the National Association of Realtors (NAR) agreed to pay $418 million in damages to settle some of their real estate commission lawsuits. The settlement prohibits NAR from requiring a seller’s agent to engage in cooperative compensation with a buyer’s agent.

The key details are:

  • Date: March 15th, 2024
  • Payment: NAR agreed to pay $418 million in damages
  • Settlement terms: NAR prohibited from requiring seller’s agent to cooperate with buyer’s agent on commissions

This settlement is significant because the new terms will likely have ripple effects that both consumers and industry stakeholders will experience:

Consumers:

  • Potentially lower real estate commission fees as a result of increased competition between agents
  • More flexibility and control for sellers in how they compensate buyer’s agents
  • Possibility of buyers having to pay their agent’s fees directly rather than them being bundled into the home price

Industry Stakeholders:

  • Real estate brokerages and agents may need to adjust their business models and commission structures
  • Reduced influence of NAR in setting industry standards and practices around commissions
  • Potential for new business models and pricing approaches to emerge in the real estate market

Overall, this settlement represents a shift in the power dynamics of the real estate industry that could lead to more competition and consumer-friendly changes in the way real estate transactions are conducted. Let me know if you have any other questions!

 Real Estate Commissions and Loan Types in Kentucky

The National Association of Realtors (NAR) recently reached a settlement that impacted real estate commissions for different mortgage loan types in Kentucky and across the United States. Here’s a breakdown of how commissions can vary:

Conventional Loans

  • For conventional mortgage loans, the typical real estate commission is 3-6% of the home’s sale price.
  • This commission is usually split evenly between the buyer’s agent and the seller’s agent.
  • Buyer may pay their Agent’s reasonable commissions or have the seller or agent contribute to the commission of the buyer agents’ commission.  Typical fees paid by the seller are not subject to the IPC limits.  (interested party contribution)

FHA Loans

  • For FHA (Federal Housing Administration) loans, the real estate commission is typically slightly lower, around 3-6% of the sale price.
  • This lower commission is due to the additional requirements and paperwork involved with FHA loans.
  • FHA Loans-FHA allows buyer to pay commissions of their agents, or negotiate the seller’s or agent contribution to commission to the buyer’s agent. – If the State and Local law or custom permits this, and if the commissions and fees are reasonable in amount, the existing policy would not treat it as an IPC. (interested party contribution)

VA Loans

  • For VA (Veterans Affairs) loans, the real estate commission is usually the lowest, around 3-6% of the sale price.
  • VA loans have strict guidelines, and the lower commission helps offset some of the additional costs associated with these loans.
  • VA Loans-Buyer may pay their agent’s commission or negotiate the seller or  agents contribution to commission to the buyer’s agent.  (interested party contribution) IPC is not mentioned. A temporary variance is permitted for the Veteran buyer to pay Buyer Broker Fees.

USDA Loans

  • USDA (United States Department of Agriculture) loans, which are designed for low-income homebuyers in rural areas, also typically have a real estate commission of 3-6%.
  • The lower commission helps make these loans more affordable for the homebuyers.
  • USDA loans-Buyer may pay their agents commission or negotiate the seller’s or agent’s contribute to the commission of the buyer’s agent. Real Estate Commission Fees are excluded from the 6% cap for IPC concessions

—How the NAR Settlement Is Changing Kentuckyconcessions,commissions,NAR Settlement,National Association of Realtors (NAR),fha loan,usda loan,seller paid buy down,va loan,real estate agents, seller concessions, buyers agent, interested party contributions Homebuyers Options for Mortgage Loan Approval

s.
Reach out to me anytime on my cell —  Always happy to help!

 

Joel Lobb  Mortgage Loan Officer NMLS 57916

EVO Mortgage
911 Barret Ave, Louisville, KY 40204
Company NMLS ID # 173846

Text/call: 502-905-3708

email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

—

—

Joel Lobb  Mortgage Loan Officer NMLS 57916

EVO Mortgage
911 Barret Ave, Louisville, KY 40204
Company NMLS ID # 173846

Text/call: 502-905-3708

email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #173846
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).

How to get best mortgage rates in Kentucky for FHA VA USDA and Fannie Mae conventional loans


To get the best Kentucky mortgage rates in Kentucky for FHA, VA, USDA, and Fannie Mae conventional loans, you should consider several key factors and steps:

1. Improve Your Credit Score for best Kentucky Mortgage Loan Rate

  • Kentucky Credit Score Requirements:
    • Kentucky FHA Loans: Typically require a minimum score of 580, but better rates are available with scores above 780.
    • Kentucky VA Loans: No official minimum, but lenders often prefer scores above 780.
    • Kentucky USDA Loans: Generally require a minimum score of 780.
    • Kentucky Conventional Loans: Prefer scores above 620 for competitive rates, but the best rates are usually available for scores above 780.
  • Actions to Improve Your Score:
    • Pay bills on time. Last 24 months weighted heavily
    • Reduce credit card balances to less than 25% of outstanding balance
    • Avoid opening new credit accounts before applying for a loan. Keep inquires to a minimum

2. Save for a Larger Down Payment in Kentucky

  • Down Payment Impact:
    • Larger down payments often result in lower interest rates and better loan terms.
    • Kentucky FHA Loans: Minimum down payment of 3.5%.
    • Kentucky VA Loans: Often no down payment required.
    • Kentucky USDA Loans: No down payment required.
    • Conventional Loans: Minimum down payment of 3%, but better rates with 40% down.

3. Shop Around for Lenders in Kentucky

  • Compare Offers: Get quotes from multiple lenders, including banks, credit unions, and mortgage brokers like Joel Lobb in Louisville, Kentucky.
  • Negotiate: Use the quotes to negotiate better terms.
  • Consider Different Loan Types: Each loan type may offer different rates and terms, so compare FHA, VA, USDA, and conventional loans.

4. Maintain a Stable Employment History

  • Employment Consistency: Lenders prefer a steady employment history of at least two years in the same field.
  • Income Verification: Provide proof of stable and sufficient income to support mortgage payments.

5. Lower Your Debt-to-Income Ratio (DTI)

  • DTI Requirements:
    • FHA Loans: Typically require a DTI below 43%.
    • VA Loans: Prefer a DTI below 41%, but can go higher with strong compensating factors.
    • USDA Loans: Generally require a DTI below 41%.
    • Conventional Loans: Prefer a DTI below 36%, but can accept up to 45% in some cases.
  • Reducing Debt: Pay down existing debt to improve your DTI ratio.

6. Consider Mortgage Points for the best mortgage rate in Kentucky

  • Buying Points: Pay for discount points to lower your interest rate. One point typically equals 1% of the loan amount and can reduce your rate by about 0.25%.

7. Lock in Your Rate for a Shorter term

  • Rate Lock: Once you find a favorable rate, ask your lender about locking it in. Rate locks usually last 30 to 60 days and protect you from rate increases during the lock period.  Locking in for shorter term, say 15 days or less will get you a better rate.

8. Leverage Government Programs and Assistance in Kentucky like the Mortgage Revenue Bond program

  • Kentucky State Housing Programs: Kentucky offers various first-time homebuyer programs and down payment assistance, which can help you qualify for better rates.
  • Federal Programs: Look into federal programs such as FHA, VA, and USDA loans that offer competitive rates and terms for eligible borrowers.

9. Work with a Knowledgeable Mortgage Broker in Kentucky to shop for the best rates with multiple lenders

  • Expert Advice: Mortgage brokers like Joel Lobb can help navigate the various loan options, provide personalized advice, and negotiate the best rates on your behalf.

10. Lock in rate for shorter term. 

Do a 15 year, or 20 year versus a 30 year term to get a lower rate.

By focusing on these factors and steps, you can increase your chances of securing the best mortgage rates available in Kentucky for FHA, VA, USDA, and Fannie Mae conventional loans.

​

—

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708

email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

Best mortgage rates in Kentucky for FHA, VA, USDA and Conventional Home Loans


How to get the best mortgage rate in Kentucky
 

Your credit score plays a significant role in determining the interest rate you qualify for. Lenders use credit scores to assess your creditworthiness and the risk associated with lending to you. Generally, the higher your credit score, the lower the interest rate you can secure. Here’s how different credit score ranges typically impact mortgage rates:

  • Excellent Credit (780 and above): Aim for a 780 score or higher for the best rates -Borrowers with excellent credit scores usually qualify for the lowest mortgage rates available.

2. Down Payment:

The down payment amount affects your loan-to-value (LTV) ratio, which is the loan amount divided by the property’s appraised value. A higher down payment reduces the lender’s risk, leading to better mortgage rates. Here’s how down payments typically impact mortgage rates:

  • 40% or more: A down payment of 40% or more often qualifies you for the best rates and eliminates the need for private mortgage insurance (PMI).

3. Debt-to-Income Ratio (DTI):

Your DTI ratio compares your monthly debt payments to your gross monthly income. Lenders use this ratio to assess your ability to manage monthly mortgage payments alongside existing debts. A lower DTI ratio indicates less financial risk to lenders, potentially leading to better rates. Here’s how to calculate DTI and improve it:

  • Calculate Your DTI: Add up all your monthly debt payments (such as credit cards, car loans, student loans) and divide by your gross monthly income.
  • Ideal DTI: Generally, a DTI of 45% or lower is considered good by most lenders.
  • Improve Your DTI: Paying down debts or increasing your income can lower your DTI ratio, improving your chances of securing a better rate.

4. Term of Loan:

The term of your loan, such as 15-year or 30-year, also influences the interest rate. Shorter loan terms often come with lower interest rates but higher monthly payments. Longer terms may have slightly higher rates but offer lower monthly payments.

In conclusion, to get the best Kentucky mortgage rate:

  • Maintain a high credit score by managing credit responsibly. Shoot for 780 or higher for the best mortgage rate on a conventional loan
  • Save for a substantial down payment to reduce the loan amount and LTV ratio. To get the best rate, usually 40% down will get you the best rates on a Conventional loan.
  • Keep your DTI ratio low by managing debts and increasing income where possible. Try to keep the debt to income ratio less than 45%
  • The above scenarios are for conventional loans. Rates could vary for VA, USDA, and FHA mortgage loans due to there mortgage insurance being the same for each borrower whereas conventional loans sway more toward the down payment, credit score, and debt to income ratio.
  • Keep in mind shorter term loans, i.e. 15 year loans vs 30 year loans will get you a better rate for all types of loans
  • Larger loan amounts will yield better rates vs small loan amounts due to the profits involved in the secondary market for the above loans and how lenders are paid.

Best mortgage rates in Kentucky for FHA, VA, USDA and Conventional Home Loans-

best mortgage rate in Kentucky

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email:kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

 
NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574
 

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).