Tag: zero down kentucky home loan

DTI) ratio requirements for different types of mortgage loans in Kentucky, including FHA, VA, USDA, Fannie Mae, and Kentucky Housing loans


Debt-to-Income (DTI) ratio requirements for ​Kentucky FHA, VA, USDA, and conventional mortgage loans

Kentucky USDA Rural Housing Appraisal Requirements


As with all loan programs, the USDA Loan requires that an independent appraiser inspect the subject property in order to determine the property value. Specific to a USDA Loan, the appraisal report will be conducted by an FHA approved appraiser. The appraisal report must include verbiage or similar verbiage:

“The subject meets minimum standards as set under guidelines established by the U.S. Department of Housing and Urban Development and indicated in Handbooks 4000.1”

No different from a FHA or VA appraisal inspection, the appraiser is required to document all property deficiencies that preclude the appraiser from signing off on their report. A property deficiency is any defect to the house that the appraiser deems necessary to have repaired to ensure compliance to the loan program guidelines. Typical examples of property deficiencies include:

  • Chipped and peeling paint
  • Missing handrails on stairs and railing on decks
  • Lights not working properly and wires hanging out of the electrical box
  • Non-working heating and cooling systems and plumbing
  • Houses that do not have utilities turned on

If a property has deficiencies, the appraiser will determine the value of the property, but state that their report is subject to the property defects listed being corrected. After the property defects are repaired, the appraiser will re-inspect the property, and signoff if the required repairs have been completed.

Bottom line, the USDA Loan program is designed to finance homes that are in move-in condition, not fixer-uppers. However, on a subsequent email I will review an option to establish a repair escrow account to address certain property deficiencies. The repair escrow account is only available through one of my many USDA lenders, so it is imperative to inform me when making an offer a house if this option will be required.

Kentucky USDA appraisals

Kentucky USDA appraisals can take home buyers by surprise. That’s why we’ve put together some good-to-know info about the process. Feel free to use this to help educate your clients. 

The property must pass an FHA appraisal, so USDA and FHA have the same appraisal requirements, which determines the current market value and makes sure the house meets certain safety standards. Here is a list of items an FHA appraiser may look for:

General Health and Safety

  • Foundation or structural defects
  • Whether the utilities (water, sewage, heat, and electricity) all work
  • Chipped or peeling paint in homes built before 1978
  • Incomplete renovations
  • Water damage
  • If the property is accessible to vehicles, especially emergency vehicles
  • Exposed wiring and uncovered junction boxes
  • Whether the house is too close to outside hazards, such as a leaking oil tank or a waste dump
  • Excessive noise, such as being close to an airport
  • Missing handrails

Exterior

  • Leaky or defective roof and holes in the siding
  • Leaning or broken fencing 
  • Doors that don’t properly open or close
  • Condition of gutters, chimney, stairs, railings, and porches
  • If swimming pools are up to code 

Every Room

  • Whether each room has electricity
  • Whether each room has a window or door to the exterior to be used as a fire escape

Kitchen

  • Missing or broken appliances usually sold with a home, including stove and refrigerator
  • Broken or leaking sink

Bathrooms

  • Broken or leaking toilet, sink, or tub/shower
  • No ventilation (either an exhaust fan or window)

Crawl space or basement

  • Basement moisture
  • Evidence of past or present standing water

Heating and Plumbing

  • Inoperable HVAC
  • Major plumbing issues and leaks

These are some common items an FHA appraiser looks for, but other issues that might make a house unsafe could keep it from passing. An FHA appraisal is not the same as an independent home inspection. It’s still a good idea to get a separate home inspection to make sure you’re making a wise investment! 

USDA APPRAISAL REQUIREMENTS FOR KENTUCKY MORTGAGE LOANS

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

Posted by Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA  

Labels: Appraisal, appraisal issues, appraisal standards for USDA RHS, property eligibility, USDA APPRAISAL REQUIREMENTS

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/

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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 buy a house in Kentucky with Zero Down Payment Mortgage Loan


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

Kentucky USDA Loans

Kentucky USDA loans are backed by the U.S. Department of Agriculture and are available to Kentucky homebuyers in eligible rural areas of Kentucky. These loans offer 100% financing. $0 down payment

Qualifying Criteria:

  • Credit Score: No minimum score but most KY Rural Housing Lenders will a 620 to 640 minimum credit score
  • Income Limits: Varies by county and household size-–
  • Work History: Stable employment for at least two years
  • Assets: Limited to ensure assistance goes to those in need-
  • No purchase price or loan limits, just income limits for each Kentucky County.
  • Max income limits changes every year
  • Debt to income rate usually around 31% on front end and 45% max on back-end ratio …
  • Has to be run through GUS, the Guarantee Underwriting system for initial pre-approval

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.

​

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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