Saturday, August 20, 2011

Are Louisville Ky FHA Loans For Anyone?

Free FHA Mortgage Prequalifications for all Louisville Ky Mortgage Applicants

Are Louisville Ky FHA Loans For Anyone?



Q: I would like to take advantage of the low down payment requirement on Louisville KY  FHA loans. My problem is that for the type of loan I would like to get around 200k (no more than 250k) is having a 10% downpayment. After closing costs, the amount of cash available will easily chop my downpayment to a smaller amount and I would like to take advantage of the smaller minimum down. However, I make about 70k with a 750 score. Louisville Ky FHA loans sounds like it is usually for families low income and bad credit score. I am also thinking about getting an 5/1 or 7/1 ARM but I have never heard of Kentucky  FHA loans with a 7/1 ARM (which is my ideal choice since I don’t plan to stay more than that). I also have a target window when I would like the house to be transferred to me. Around my area, if I were to buy a house between January and June, my property can be reassessed to the value of my purchase price. So how long should the process take between looking around houses all the way to closing and title transfer.



A: Louisville Ky FHA loans are not just for low-income or low FICO people. You may be able to take advantage of what FHA offers.



FHA guarantees the loan if there is a default. They do not fund the loans. Lenders who want to take advantage of the FHA default protection may do so by designing loans that fit into the FHA criteria. Thus there may be lenders who do offer ARM loans within FHA acceptance.






Finding a home could be as easy as the first day you go out. It really depends on you and the search process. I have been out with clients that wrote an offer the first day they went out looking and had it accepted the same day too.



From the time your offer is accepted until the close of escrow, if using FHA financing, could be as little as 45 days. A lot depends on the lender you chose to work with and any issues related to the property.




A: FHA is a great loan because of the downpayment and qualifications. Your income and credit scores are fine on qualifying for Louisville Ky FHA. In this market because the interest rates are so low, you may consider just going with a 30 year fixed rate. I feel the ARM loans were one of the main reasons people went into foreclosure over the past 3 years. When investing in property the best advise is to make sure you can afford the payment because you never know what the future will bring. You want to make your real estate investment work for you and with a fixed payment you know where your payments will be in 10 years. Also keep in mind property taxes and insurance do escalate as the property values rise, so this will increase your monthly payments a little over the years. I am not sure what state you are in but in Utah to transfer title takes one day. You sign the closing papers and the recording takes place after the mortgage company receives the funds which is usually the next day. You need to check with a title company in your area to find out the procedures in your state.



A: The process, after you find the house that you want to buy, shouldn’t take more than 30-45 days. Use a reputable lender and you shouldn’t have a problem…. Don’t use an online lender or any lender located out of the town you are buying in… Start looking about 60 days before you want to close….




A: You absolutely still qualify for an FHA loan with your income. Do NOT get an ARM.




Fill out my form my free FHA Mortgage qualification form here by clicking Only takes 5 minutes!