Saturday, April 19, 2014

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




Kentucky FHA, VA, KHC, Conventional, Fannie Mae, Freddie Mac, USDA Mortgage Loans


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.  But what is acceptable income? Let’s just say that there are two ratios mortgage underwriters look at to qualify you for mortgage payment:

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 45% 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? Unverifiable cash income, short term income and income that’s not likely to continue like unemployment income, student loan aid,  VA education benefits,or short term disability are not allowed for a  mortgage loan.

2. Assets

What the mortgage underwriter is looking for here is how much can you put down and secondly, how much will you have in reserves after the loan is made to help offset any financial emergencies in the future.

Do you have enough assets to put the money forth to qualify for the down payment that the particular program asks for. The only 100% financing or no money down loans still available in Kentucky for  home buyers are available through USDA, VA, and KHC or Kentucky Housing Loans. Most other home buyers that don't qualify for the no money down home loans mentioned above, will turn to the FHA program. FHA loans currently requires a 3.5% down payment.

Kentucky Home buyers that have access to putting down at least 5% or more, will usually  turn to Fannie Mae or Freddie Mac mortgage programs  so they can get better pricing when it comes to mortgage insurance.

These assets need to be validated through bank accounts, 401k or retirements account and sometimes gifts from relatives or employer.. 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. FHA will allow for gifts from relatives  for down payments with little as 3.5% down but Fannie Mae will require a 20% down payment when a gift is being used for the down payment on the home.

The down payment scenarios listed above are for Kentucky Primary Residences only. There are stricter  down payment requirements for investment homes made in Kentucky.

 3.Credit

 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. 720 is when you really start to get in the “as a lender we love you” credit score. 740 is even better. Watch your credit scores carefully. You have three credit scores and the lender will take your middle score.

Kentucky  FHA Mortgage Loans currently requires 3 years removal from a foreclosure or short sale  and 2 years on a bankruptcy with good reestablished credit.

Kentucky Fannie Mae Mortgage Loans currently requires 4 years removal from a bankruptcy, and 7 years on a foreclosure.

Kentucky VA Mortgage Loans currently requires 2 years removal from a bankruptcy or foreclosure with good reestablished credit.

Kentucky USDA loans require 3 years removal from bankruptcy and foreclosure with good reestablished credit.



4. Appraisal

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!


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




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 




Tuesday, April 15, 2014

Homepath Mortgage Loans for Kentucky Fannie Mae Properties for 2014

Homepath Mortgage Loans for Kentucky Fannie Mae Properties for 2014 




A Kentucky foreclosed property can represent a great opportunity and a good value — but a HomePath Kentucky  property can offer even more.  Some homes may qualify for special incentives, and many can be purchased with a low down payment and flexible mortgage terms through HomePath financing.  Go towww.homepath.com to check out special incentives and locate homes in your area.

I have attached Kentucky Fannie Mae Homepath Product Guides for a quick reference guidelines.  Call me today and I will help you with your loan scenarios! 

**Renovation financing is not allowed.






 UNDERWRITING

 Approve/Eligible recommendation. 


• No appraisal is required

• Ratios-must follow the more restrictive of DU or 50%
 terms provide for a variable interest rate, the monthly 
 payment must remain constant for each 12-month 
 period over the term of the subordinate lien mortgage. 



• Credit Profile

 • Minimum risk score of 660 if LTV>80%
 income for the non-occupant co-borrower.
 • Minimum risk score of 620 if LTV≤ 80%


Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346

Fill out my form!

Friday, April 4, 2014

Can you get a Kentucky Mortgage Loan with a 600 credit score in 2014?

In order to get a Kentucky FHA Mortgage Loan with a 600 credit score, you must meet the following requirements to qualify.

Note. some lenders require additional credit overlays that may affect your mortgage loan approval.

 





3 active trade line reporting to the bureaus (rent can count as one).




43% max debt ratio




2 most recent bank statements with 2 months piti in reserve

No bankruptcies or foreclosures in last 3 years  

Verifiable rent history from management company or cancelled checks if you rent from individual for last 12 months with no 30 day lates

3.5% down payment required. Cannot do the Welcome Home Program
 
 
 

***We require a 620 credit score for Kentucky USDA Loans and a 620 credit score for VA loans.
 
Fannie Mae Mortgage Loans require a 620 credit score. If mortgage insurance is needed for Fannie Mae loans, the minimum credit score is higher and subject mi approval.
 
 
 
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu


Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346




Fill out my form!

Friday, March 28, 2014

Kentucky Housing Income Limits for 2014 Mortgage Loans

New Income Limits for KHC Loans in Kentucky for 2014


Effective with reservations on Tuesday, April 1, 2014, both the Secondary Market and Affordable Down Payment Assistance Program (DAP) following household income limits will apply for Kentucky Housing KHC Mortgage Loans

ALL Kentucky counties were affected with the Secondary Market income limits.  Keep in mind, the Secondary Market income limits still apply to applicant's income only!  Below are the highlights for some counties with the new Secondary Market income limits: 

INCREASED

DECREASED
Daviess:  $105,525Franklin:  $110,775
Fayette:  $118,650Hardin:  $98,525
Jefferson:  $112,525Madison:  $94,850
Oldham:  $112,525Northern KY:  $119,875
Scott:  $118,650 Nelson:  $95,550
Shelby:  $128,975Warren:  $100,100


ALL Kentucky counties were affected with the DAP KHC Down Payment Assistance  income limits.  Keep in mind, the DAP income limits apply to the entire household's income.  Below are the highlights for some counties with the new DAP income limits:

 Kentucky Housing Down Payment Assistance for 2014

INCREASEDDECREASED
Henry, Jefferson:  $35,700 - $50,950Northern KY:  $38,400 - $54,800
Oldham, Spencer:  $35,700 - $50,950Pulaski:  $24,950 - $35,600
Fayette, Scott:  $37,450 - $53,500Warren:  $32,050 - $45,750

Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346






Fill out my form for Kentucky Housing Down Payment Assistance for closing costs and prepaids. Zero Down Home Loans Thru KHC !

Tuesday, March 25, 2014

Personal Property Listed on Purchase Sales Contract for Home.



Personal property should be avoided as much as possible on the Purchase Agreement. It is viewed as concessions against the sales price and can therefore lower the real value of the property.


Fill out my form!



Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346

Wednesday, March 19, 2014

2014 Kentucky VA Home Loan Requirements for Approval

Kentucky VA Home Loan Approval Requirements:


  • VA Refer loans with debt ratios of 29% and 41% respectively . 
  • No monthly mortgage insurance
  • VA Cash-out to 100% of the home's value. 
  • 620+ credit scores with no bankruptcies or foreclosures in the last 2 years.
  • Kentucky VA IRRRL Streamline  with no appraisal minimum 640 score with no mortgage lates in last 12 months.

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu


Fill out my form!

Joel Lobb 
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346
 CONFIDENTIALITY

Thursday, March 13, 2014

Louisville Homebuilding predicted to be up 18 percent this year - WDRB 41 Louisville News

Louisville Homebuilding predicted to be up 18 percent this year - WDRB 41 Louisville News



WDRB 41 Louisville News Joel Lobb Senior Loan Officer (NMLS#57916) American Mortgage Solutions, Inc. 800 Stone Creek Pkwy, Ste 7, Louisville, KY 40223 phone: (502) 905-3708 Fax: (502) 327-9119 kentuckyloan@gmail.com Company ID #1364 | MB73346 http://mylouisvillekentuckymortgage.com/

Tuesday, March 4, 2014

Kentucky VA Allowable Closing Costs On a VA Mortgage



ALLOWABLE CLOSING COSTS ON A KENTUCKY VA MORTGAGE LOAN

Maximum 1% origination fee or mortgage broker fee
Appraisal and compliance inspections for followups (442)
Recording fees 
Credit report fees
Prepaid items (taxes, assessments and similar items) 
Hazard insurance fee
Flood determination 
Survey 
Title examination 
Title insurance 
Special mailing fees for refinancing loans 
(MERS) fee 
Other fees authorized by VA 
If an origination fee is charged, lenders may NOT assess veterans any other 
fees, other than the allowable fees noted above.






Joel Lobb
Senior  Loan Officer
(NMLS#57916)

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346

Fill out my form!