Wednesday, February 15, 2017

Kentucky Home Loan Mortgage Types

Kentucky Home Loan Mortgage Types

Home Loan Types

ConventionalFHA     USDA       VA
Max Loan Amount$417,000.00$271,050.00based on income$417,000.00
DTI Ratio40%41%41%41%
Down Payment5%3.5%0%0%

Kentucky Mortgage Loan Terms

Kentucky FHA Loan:A Kentucky FHA Loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration.  FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise been able to afford. FHA loans require 3.5% down payment but it can be gifted from relatives or family member or use a state housing agency down payment assistance program. Mi upfront is 1.75% and monthly mi is .85% to .80% depending on your term. 
Kentucky VA Loan:A Kentucky VA Loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs.  The VA loan allows veterans 100% financing without private mortgage insurance for monthly payments but it does have a funding fee upfront varying from 2.15% to 3.3% depending on your situation. Some Veterans are not required to pay if they have a VA disability.
 Kentucky USDA Rural Housing Loan:Single Family Housing Guaranteed Loan program or Section 502 loans are primarily used to help households purchase homes in rural areas.  The Kentucky USDA loan allows for 100% financing with upfront mi fee of 1% and monthly or annual mi of .35%. This is very low compared to FHA loans in Kentucky
DTI Ratio:Debt-to-Income Ratio indicates the percentage of income that goes toward paying all recurring debt payments, including mortgage, interest, mortgage insurance, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments.
Down Payment:The difference between the investment price and the loan amount.
Closing Costs:All the cost that a lender requires to obtain a loan.
Fixed Rate:A constant interest rate that does not change for the term of the loan.
Adjustable rate:An interest that can change during the term of the loan on an annual basis.
Rate Buy Down:Lowers your interest rate for a given duration on a fixed mortgage reducing your
monthly mortgage payment.
Credit Report:A report that contains a person's credit history.
Appraisal:A report that gives the current market value of the home.
Term:The number of years to pay off a loan.
Points:1% of the loan amount a lender may charge.
Pre-Paids:Expenses that the lender requires being paid upfront. (Homeowners Insurance, Escrow Accounts, Interest)
Short Interest:Interest collected from the date of closing to the end of the month.
Mortgage Insurance:Insurance required by the lender for loans with less than 20% down payment. 
Home Owners Insurance:Insurance required by the lender to replace the homes value in the case of disaster.




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 views of my employer. Not all products or services mentioned on this site may fit all people


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Joel Lobb
Senior  Loan Officer
(NMLS#57916)


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







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