Kentucky home loan credit scores and the minimum requirements


Kentucky home loan credit scores and the minimum requirements

Mortgage Rates in Kentucky

Daily Mortgage Rates for Kentucky: USDA, VA, Conventional, and FHA Loans

Welcome to our daily update on mortgage rates for Kentucky homebuyers. Whether you’re looking for USDA, VA, Conventional, or FHA loans, we’ve got you covered with the latest rates for 30-year and 15-year fixed-rate loans. Below you’ll find the current rates, Annual Percentage Rates (APRs), and monthly payments for a $300,000 loan amount, with options for no points, 1 point, and 1% lender credit- 20% down payment and credit score over 780

subject to change without notice.

Mortgage insurance, property taxes and home insurance not included and will result in higher monthly payments. Payments below only include pi. 

Today’s Mortgage Rates (June 10, 2024)

30-Year Fixed-Rate Loans

Loan Type No Points Rate / APR 1 Point Rate / APR 1% Lender Credit Rate / APR
USDA Loan 6.625% / 6.780% $1,918 6.375% / 6.520% $1,874 6.875% / 7.020% $1,956
VA Loan 6.625% / 6.780% $1,918 6.375% / 6.520% $1,874 6.875% / 7.020% $1,956
Conventional Loan 6.625% / 6.780% $1,918 6.375% / 6.520% $1,874 6.875% / 7.020% $1,956
FHA Loan 6.625% / 6.780% $1,918 6.375% / 6.520% $1,874 6.875% / 7.020% $1,956

15-Year Fixed-Rate Loans

Loan Type No Points Rate / APR 1 Point Rate / APR 1% Lender Credit Rate / APR
USDA Loan 6.000% / 6.200% $2,532 5.750% / 5.940% $2,495 6.250% / 6.430% $2,570
VA Loan 6.000% / 6.200% $2,532 5.750% / 5.940% $2,495 6.250% / 6.430% $2,570
Conventional Loan 6.000% / 6.200% $2,532 5.750% / 5.940% $2,495 6.250% / 6.430% $2,570
FHA Loan 6.000% / 6.200% $2,532 5.750% / 5.940% $2,495 6.250% / 6.430% $2,570

Monthly Payment and Interest Breakdown for a 6.625% Rate (30-Year Fixed)

  • Loan Amount: $300,000
  • Monthly Payment: $1,918 (Principal and Interest)
  • Total Interest Paid Over the Loan Term: $389,370

How Points and Lender Credits Affect Your Rate

No Points:

  • You receive the standard rate with no additional cost or discount.

1 Point:

  • Paying 1 point (1% of the loan amount) can lower your interest rate. For a $300,000 loan, this means paying $3,000 upfront to reduce your monthly payments.

1% Lender Credit:

  • Opting for a 1% lender credit increases your interest rate slightly but provides $3,000 towards closing costs, reducing your upfront expenses.

Understanding APR

APR, or Annual Percentage Rate, includes the interest rate plus other loan fees, providing a more comprehensive view of the loan’s cost.

Summary

Keeping track of daily mortgage rates helps you make informed decisions when buying a home. For personalized advice and the best rates tailored to your needs, contact Joel Lobb at American Mortgage Solutions, Inc.

For the latest updates and more detailed information on mortgage options, reach out to Joel Lobb:

Note: Rates and APRs mentioned are subject to change. Please consult your mortgage lender for the most accurate and up-to-date information.

 

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/

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).

 

Are you looking for a Kentucky mortgage and wondering what score is used for a home loan approval?


When you are ready to apply for a Kentucky mortgage loan approval to buy a house in the state of Kentucky, you will need a more accurate picture of how a mortgage lender may view your Transunion, Experian, Equifax credit reports and their scores. Scores go from 344 to 850 on each three credit bureaus and they take the middle score of the three, throwing out the highest and lowest score.  Kentucky Mortgage lenders look at your credit on Equifax as well as TransUnion and Experian — all 3 bureaus.
Illustration of a credit report based on Experian, TransUnion and Equifax data
 

components of Fico Score are payment history, amounts owed, credit types, new credit and length of credit

Although FICO Score version 8 is one of the latest and most predictive versions of the FICO Score, the mortgage industry generally uses the “classic” versions 5, 4 and 2 from Transunion, Equifax and Experian

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: WHAT IS THE MINIMUM CREDIT SCORE FOR A KENTUCKY FHA MORTGAGE HOME LOAN APPROVAL?

NapkinFinance-FICO-Napkin-08-16-20-v06

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