Mortgage Rates Louisville, Kentucky

 Louisville Kentucky Mortgage Rates Today FHA, VA, KHC, USDA, Conventional Mortgage Rates

Mortgage Rates Louisville, Kentucky
Current Louisville Kentucky Mortgage Rates Today


Mortgage Product                      Mortgage Rates     (APR)

15 Year Fixed Conventional                3.250%            3.474% apr

30 Year Fixed Conventional                4.000%            4.278% apr
30 Year Fixed Kentucky FHA             3.750%            4.329% apr

30 Year Fixed Kentucky USDA          3.875%            4.287% apr

30 year Fixed Kentucky VA               3.750%            4.625% apr

30 year Fixed KHC                            3.375%            4.787% apr

 Rates are subject to qualifying criteria and Mortgage Rates can change without notice

Free Credit Report and Pre qualifications available anytime. 

                                                                

Key Financial Mortgage of KY is a licensed mortgage company in the state of Kentucky (NMLS#1800) Key Financial Mortgage of KY is not a part of, nor are we affiliated with, the VA, FHA/HUD, USDA.  Joel Lobb (NMLS#57916) is a licensed mortgage loan officer in the state of Kentucky.

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA

FREE MORTGAGE PREQUALIFICATIONS SAME DAY

Kentucky Housing Corporation (KHC) has FHA, VA and Rural Housing 30 year fixed rates as low as 3.375%. This is for Kentucky purchases by first time homebuyers (defined as not owning a home in last 3 years). Down payment assistance up to $6000 is available to qualified buyers. They have a repeat homebuyer program too. The rate is 3.875%. They also will do down payment assistance up to $6000. Tell everyone. Interested buyers need to call me to apply. There are not many lenders that have the authority to originate, process, underwrite and close KHC loans. Note: if the buyer needs down payment assistance, the rate is slightly higher. Equal Housing Lender



Using your 401k as a down payment on a Kentucky Home Loan

Using your 401k as a down payment on a Kentucky Home Loan Many Kentucky home buyers today opt to use funds from their employer’s 401(K) program to come up with the down payment on a house. Ordinarily, you can't take money from your 401(K) plan unless you retire, leave the company or become disabled, but many company plans permit certain “hardship withdrawals” when there is an immediate and heavy financial need, including the purchase of the employee's principal residence. The drawback to a hardship withdrawal is that you will pay taxes and penalties on the amount withdrawn from your plan, which often must be paid in the year of withdrawal. And while hardship withdrawals are allowed by law, your employer is not required to provide them in your plan. Check with your employer’s human resources department if you're not sure if your 401(K) plan allows hardship withdrawal. Another approach may be to borrow against your 401(K) – often as much as 50 percent of your account balance. You pay interest on the loan, but the interest goes back into your account. The money you receive is not taxable as long it is paid back and plans can give you anywhere from five to 30 years to pay back your loan. There are risks involved in borrowing from your 401(K). If you lose your job or leave your employer, you must pay back the loan in full within a short period, sometimes as little as 60 days. If the money is not paid back in that time, it is considered a withdrawal from your plan and subjected to the same taxes and penalties. And while 401(K) accounts can usually be rolled over into a new employer’s 401K without penalties, loans from a 401K cannot be rolled over. In addition, because the funds withdrawn from your account are no longer earning compound interest, your account will be smaller when you retire. And you’ll be replacing pretax money with after-tax money. Some lenders will count the money you borrowed from your 401(K) as an additional debt that will go along with your car payments, student loans and credit cards. While it may seem unfair since you are borrowing your own money, most lenders view it as a payment obligation that affects your debt-to-income ratio in qualifying for a home loan. It may be a factor in whether you decide to make a hardship withdrawal from your 401(K) and pay tax penalties or borrow against it.

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4 Things Every Borrower Needs to Get Approved for a Mortgage or Home Loan In Kentucky

4 Things Every Borrower Needs to Get Approved for a Mortgage or Home Loan In Kentucky



FHA VA KHC, Conventional, Fannie Mae, Freddie Mac


4 Things Every Borrower Needs to know to Get Approved for a Loan!!!!


There are 4 basic things that a borrower needs to show a lender in order to get approved for a mortgage. Each category has so many what ifs and sub plots that each box can read as it’s own novel. In other words, each category has so many variables that can affect what it takes to get approved, but without further adieu here are the four categories in no particular order as each without any of these items, you’re pretty much dead in the water:


1. Income

You need income. You need to be able to afford the home. Without it, forget it! But what is acceptable income? Basically, it all depends on the type of loan that a borrower applies for. Jumbo, V.A., USDA, FHA, Conventional, Kentucky Housing KHC Super Jumbo? Let’s just say that there are two ratios:

First Ratio – The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe.

Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards, student loans, personal loans, child support, alimony….basically any consistent outgoing debt that you’re paying on. Again, if you’re paying less than 43% of your gross monthly income to all of the debts, plus your proposed housing payment, then……generally, you’re safe. You can go a lot higher in this area, but there are a lot of caveats when increasing your back ratio.

What qualifies as income? Basically, it’s income that has at least a proven, two year history of being received and pretty high assurances that the income is likely to continue for at least three years. What’s not acceptable?????? Cash income, short term income and income that’s not likely to continue.

2. Assets

For the most part this is fairly simple. Do you have enough assets to put the money forth to qualify for the downpayment that the particular program asks for. USDA says that there can be no money down. FHA, for now, has a 3.5% downpayment. Some loans require 20% down. These assets need to be validated through bank accounts and sometimes gifts. Can you borrower the down payment? Sometimes. Generally if you’re borrowing a secured loan against a secured asset you can use that. But rarely can cash be used as an asset. TALK TO YOUR LOAN OFFICER FIRST when discussing what’s acceptable?

3. Credit
Whewwwwwwwwwwwwwwwwwwwwwwwwwwww. This can be the bane to every borrower, every loan officer and every lender……and yes, to every realtor. How many times has a borrower said my credit’s good, only to find out that it’s not nearly as good as a borrower thinks or nearly as good as the borrower needs. Big stuff for sure. 640 is the bottom score (again with few exceptions) that lenders will permit. Below a 640, then you’re in a world of hurt. Even at 640, people consider you a higher risk that other folks and are going to penalize you or your borrower with a more expensive loan. 700 is when you really start to get in the “as a lender we love you” credit score. 720 is even better. Watch your credit!!!!! Check out my post:


Kentucky Housing VA FHA KHC USDA and FNMA all require 640 credit score!

4. Appraisal

In many ways this is the easiest box. Why????? Generally, there’s nothing you can do to affect this. Bottom line here is…..”is the value of the house at least the value of what you’re paying for it?” If not, then not good things start to happen. Generally you’ll find less issues with values on purchase transactions, because, in theory, the realtor has done an accurate job of valuing the house prior to taking the listing. The big issue comes in refinancing. In purchase transactions, the value is determined as the

Lower of the value or the contract price!!!

That means that if you buy a $1,000,000 home for $100,000, the value is established at $100,000. Conversely, if you buy a $200,000 home and the value comes in at $180,000 during the appraisal, then the value is established at $180,000. Big issues….Talk to your loan officer.


For each one of these boxes, there are over 1,000 things that can effect if a borrower has reached the threshold to complete that box. Soooooooooooo…..talk to a great loan officer. There are so many loan officers that don’t know what they’re doing. But, conversely, there’s a lot of great ones as well. Your loan is so important! Get a great lender so that you know, for sure, that the loan you want, can be closed on!


Call me today at Key Financial Mortgage for your free pre-approval for your next home or refinance...Call 502-905-3708 or kentuckyloan@gmail.com

I can answer your questions and usually get you pre-approved the same day.

I can be reached at my Louisville Ky office at 502-905-3708 Ask for Joel

What is minimum credit score for a FHA Loan in Kentucky?

What is minimum credit score for a FHA Loan in Kentucky?

article by Bill Zielinski

The FHA is introducing new guidelines on loan to value ratios and the minimum credit score required for FHA borrowers in Kentucky. As detailed in a Mortgagee Letter from the Department of Housing and Urban Development (HUD), the following credit requirements will apply for FHA borrowers, effective October 4, 2010.




To be eligible for maximum financing, borrowers will need a minimum credit score of 580 or higher.

Kentucky FHA Borrowers with a credit score between 500 and 579 will be limited to a loan to value of 90%. A sub 580 FICO credit score borrower will henceforth need to make a 10% minimum down payment on a purchase transaction.

All Kentucky FHA borrowers with a credit score below 500 will not be eligible for FHA-insured mortgage financing in Kentucky.

HUD’s newly introduced minimum credit score and loan to value requirements will apply to all single family loan programs, except for Reverse Mortgages (Home Equity Conversion Mortgages) and Hope for Homeowners.



The new credit requirements are not expected to dramatically change the number ofKentucky  FHA mortgage approvals. Most lenders had already imposed a minimum credit score requirement of 640 or higher for Kentucky FHA borrowers. In limited cases, borrowers with scores between 620 and 639 could still obtain mortgage approval.



Many potential Kentucky FHA borrowers with scores below 640 who cannot obtain mortgage approval may be left wondering why this is the case if the FHA has established a minimum score of only 580. The explanation for this is that the FHA does not make mortgage loans but rather insures FHA loans made by lenders. Despite the FHA insurance, banks do not have an iron clad protection from loss.



To protect themselves from loss exposure, FHA lenders impose various requirements that may include establishing higher minimum credit scores. Some of the factors that influence banks in their assessment of risk on FHA loans are discussed below.



More and more banks are increasing the minimum credit score on FHA loans to attract a better overall execution (sales price) on their securities which improves profitability. Nonetheless, the increase in the minimum credit score isn’t always about protecting the bank on a potential future loss. In a lot of cases a bank feels more comfortable with a profit model that positions itself as a mortgage seller with a higher weighted average credit score on their pool for many other factors.



A credit score is an 18 month predictive measure of future performance but is not as reliable when a state or region is hit by some unpredictable negative economic factor. An increase in the minimum credit score can be used as an override to protect against losses resulting from a sudden downturn in the economy.

article by Bill Zielinski


Fill out my form by clicking here for a free mortgage preapproval on FHA loans in Kentucky!

KHC Loan Programs

KHC Loan Programs




KHC Loan Programs


MRB
All MRB Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
To qualify, you must meet KHC’s regular MRB income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history.
Some MRB KHC loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional
Insured by approved mortgage insurance company.
Minimum credit score of 660 or better.
Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA
Insured by the Federal Housing Administration.
Down payments as little as 3.5 percent.
Can use DAP for 3.5 percent down payment requirement.
Upfront and monthly mortgage insurance.
Minimum credit score of 640.

VA
Guaranteed by the Veterans Administration for qualified military veterans.
No down payment if the property appraises for the sale price or greater.
Credit underwriting is flexible.
Minimum credit score of 640.
No monthly mortgage insurance payments.

RHS
Guaranteed by Rural Housing Services (RHS).
Home must be located in a rural area as defined by RHS.
No down payment if the property appraises for the sale price or greater.
Minimum credit score of 640.

Mortgage Credit Certificates (MCC)

A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax. One-time fee of $500 or reduced to $200 if through KHC's GNMA Secondary Market First Mortgage Program. Not valid with MRB loan programs.

Special First Mortgage Loan Programs

New Construction Program for Single-Parent, Disabled and Elderly Households offers loans for newly constructed houses at interest rates from 1 to 6 percent. These limited funds are available, usually in July, on a first-come, first-served basis.
Guidelines
Interest rate determined by the families’ ability to repay the loan.
For new homes with a purchase price of $115,000 or less.
Eligible borrowers:
Single parents (at least one dependent under the age of 18 must live in the home.)
Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.).
Households where at least one of the home buyers is age 62 or older.
Income guidelines:
$28,000 for a household of 1 or 2 people; or
$33,000 for a household of 3 or more people.

Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance.
Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.

Down Payment and Closing Costs Assistance




Kentucky Housing recognizes that down payments, closing costs and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your needs.



Regular Down payment Assistance Program (DAP)

Purchase price up to $243,000.

Assistance in the form of a loan up to $6,000 in $100 increments.

Repayable over a ten-year term at 6 percent. A DAP of $6,000 over ten years at 6 percent interest would equal a payment of $66.61.

Available to all KHC first-mortgage loan recipients.

HOME-DAP

Purchase price up to $195,700.

Assistance up to $4,500

No monthly repayment; forgiven over five years.

Existing homes only.

Borrowers must meet HOME-income guidelines.

HOME Special Program

Purchase price up to $195,700.

Assistance up to $10,000

No monthly repayment; forgiven over five years.

Existing homes only.

Borrowers must meet HOME-income guidelines.

Eligible borrowers include:

Households that include a person with a permanent disability and who receives disability income (SSI, SSDI, Veterans Disability etc.).

Households where at least one of the home buyers is age 62 or older.

HOME Family Program

Purchase price up to $195,700.

Assistance up to $10,000

No monthly repayment; forgiven over five years.

Existing homes only.

Borrowers must meet HOME-income guidelines.

Eligible borrowers include:

Single- and two-parent households that have at least one dependent child under the age of 18 living in the household and that are first-time home buyers (have not owned a home or had an ownership interest in a home in the last 3 years).

More about down payment and closing costs

No liquid asset review and no limit on borrower reserves for Regular DAP.

Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance.

Specific credit underwriting standards may apply to down payment programs.

Kentucky VA Streamline Refinance Guidelines

 

 

Kentucky VA Streamline Refinance Guidelines

• The Kentucky VA streamline refinance is fairly simple when compared to qualifying for a VA loan in Kentucky.
• The VA does not require an appraisal, credit information, or underwriting, but your VA approved lender may require these.
• It is possible to roll your closing costs into your Kentucky VA streamline refinance – meaning you will be required to bring zero money to closing.
• With the kentucky VA streamline, your new monthly payment must be lower than the previous loan’s monthly payment, unless you are refinancing an adjustable rate mortgage or the new loan term is less than the old one.
• Your new interest rate must be lower than the interest rate you had with your previous loan. /li>
• The VA streamline allows for a fixed rate or variable rate mortgage.
• With the VA streamline, you can finance energy efficient improvements into your loan, up to $6000.
• No cash out is allowed with the Kentucky VA streamline refinance.
• You must be current on your existing VA mortgage and not have had more than one 30-day late mortgage payment within the past 12 months.

Fill out my form here for your VA Mortgage Refinance in Kentucky !

Louisville Kentucky VA Home Mortgage Loans: Home Loans hard to come by

Louisville Kentucky VA Home Mortgage Loans: Home Loans hard to come by: Home Loans hard to come by : 25 percent of the consumers who apply for home loans are turned down Louisville, KY (WDRB News) -- Interest ra...