Wednesday, February 15, 2017

Popular Questions about getting a mortgage loan in Kentucky?

Popular Questions about getting a mortgage loan in Kentucky?



Are VA Loans the only type of mortgage loan that require a Termite Report?

Yes. VA loans require a clear termite report on both purchases and refinances. USDA, FHA, Fannie Mae loans do not require a termite report unless noted in the appraisal report.

Can a buyer have two VA loans at once?

  Yes, a Veteran or active service member could have 2 VA loans at once. This is a pretty complex process but it can be done. I have done a few in my mortgage career.

Can I purchase a home without PMI and only put down less than 20%?  

Yes you can. There are two ways to do this on Conventional loans only. If you have a high credit score, say over 740, and your debt to income ratio is less than 45%, you can buy a home without having to pay mortgage insurance monthly. The offset of this, is it usually entails the lender increasing your interest rate by .25% to 3.375% to cover this risk. For example, if you got quoted a rate of 4% on a 30 year fixed with borrowing paying mi monthly, then you could increase the rate to 4.375%, and drop the mi. You have to weigh the pros and cons to set if it makes sense. The term is called lender paid mi.

On Government loans financed with FHA, USDA, and VA, you don't have this option.

Can I put down less than 20% on a second home purchase?


 Yes, 2nd home purchases can be as low as 10% down plus there are some very affordable PMI options for buyers with great credit scores. USDA, FHA, and VA are not usually used for 2nd home purchases because they are mainly used for primary residences.

Isn't there a time that the seller must own a property so that the buyer can use an FHA loan?  

Yes, it is called FHA Flipping Rules.  It is pretty flexible but it flat out must be longer than 3-6 months and may require a 2nd appraisal depending on the acquisition  costs and how much they are selling it for.


Joel Lobb
Senior  Loan Officer
(NMLS#57916)


text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
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). Mortgage loans only offered in Kentucky.
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