Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage

Mortgage Rates Louisville, Kentucky

noreply@blogger.com (kentuckyloan) — Sat, 02 Jun 2012 14:50:00 +0000

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 3.000% 3.374% apr

30 Year Fixed Conventional 3.500% 3.878% apr
30 Year Fixed Kentucky FHA 3.500% 4.714% apr

30 Year Fixed Kentucky USDA 3.500% 4.184% apr

30 year Fixed Kentucky VA 3.500% 4.251% apr

30 year Fixed KHC 4.125% 5.387% apr

Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC, and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required.

A 720 credit score or higher is assumed for Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Conventional loans are assumed at 80% ltv or less.

NMLS# 57916

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 or any other government agency.

FREE MORTGAGE PREQUALIFICATIONS SAME DAY

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

PMI Mortgage insurance for Kentucky Mortgage Loans

noreply@blogger.com (kentuckyloan) — Tue, 29 May 2012 16:18:00 +0000

Frequently Asked Questions about MI

What is private mortgage insurance?

Private mortgage insurance provides a significant layer of protection to lenders, helping them reduce — and sometimes eliminate — foreclosure losses on low-down-payment loans. As a result, private MI helps families buy homes with minimal cash out of pocket, making the American dream of homeownership attainable sooner than otherwise possible.

What's the difference between private MI and FHA insurance?

Private MI is the private sector alternative to Federal Housing Administration (FHA) mortgage insurance, which is a government program backed by taxpayers. Private MI typically may be cancelled sooner than FHA.

Are private mortgage insurance and mortgage life insurance the same thing?

No. Mortgage life insurance pays off a mortgage if the homeowner dies or becomes disabled.

Are Private MI and Homeowners Insurance the same thing?

No. Homeowners' insurance protects homeowners from loss due to theft, fire or other disaster. Private MI protects the lender and investor from loss, not the borrower.

Why is private MI needed?

Experience shows that homeowners with less than 20% invested in the cost of a home are significantly more likely to default, making low-down-payment mortgages riskier for lenders and investors. To offset that risk, lenders and investors typically require mortgage insurance for loans with down payments of less than 20%.

How do borrowers benefit from private MI?

Private MI makes it possible for families to buy homes with a low down payment, helping them become homeowners sooner than otherwise possible.

For first-time buyers, private MI helps clear the biggest hurdle to homeownership: coming up with a 20% down payment.
For trade-up buyers, private MI allows them to consider a wider range of homes and leverage their investment in their homes.
Both first-time and move-up buyers can benefit by putting less money down and keeping cash for other uses: making investments, paying off debt, or paying for home improvements or emergencies.

Are MI premiums tax-deductible?

Borrower-paid MI premiums are tax-deductible through the year 2011.

Households with adjusted gross incomes of $100,000 or less will be able to deduct 100% of their MI premiums. The deduction is reduced by 10% for each additional $1,000 of adjusted gross household income, phasing out after $109,000.

Married individuals filing separate returns who have adjusted gross incomes of $50,000 or less will be able to deduct 50% of their MI premiums. The deduction is reduced by 5% for each additional $500 of adjusted gross income, phasing out after $54,500.

The deduction is not restricted to first-time homebuyers.

Who orders the MI?

Generally, MI is ordered by the lender while the loan is being underwritten. The loan originator consults with the home buyer to determine which loan product best meets their needs, and then determines the MI requirements.

How much does private MI cost?

Premium prices vary. They are based on the size of the down payment, the borrowers' credit score, type of mortgage and amount of insurance coverage. Typically, premiums are included in the monthly mortgage payment.

Who determines the amount of MI coverage needed for the loan?

The investor typically determines the amount of MI coverage required for each specific loan product. Since Fannie Mae and Freddie Mac are the most prominent investors in the marketplace today, they set the standard minimum coverage requirements for the industry. We recommend lenders consult with their investors to determine the appropriate amount of coverage to order.

Can private MI be cancelled?

Most private MI programs allow for cancellation. Mortgage lenders/investors will typically permit the cancellation of private MI when the homeowner builds up enough equity in the home.

Investors establish criteria for private MI cancellation, and most will cancel private MI upon request for borrowers who have a good payment history, more than 20%-25% equity, and have had the mortgage for at least two to three years.

Lender-paid MI may not be cancelled by the borrower since the lender pays the premium.

Under federal law, private MI on most loans made on or after July 29, 1999, will end automatically on the date the mortgage is scheduled to reach 78% of the original value of the house. See our Homeowners Protection Act brochure (.pdf) for more details.

Are MI premiums refundable?

Although refundable premiums are available, generally nonrefundable premium plans are selected for monthly payment policies. Mortgage insurance premiums paid in a single sum at closing or annually may be partially refundable upon cancellation, but nonrefundable premiums are often selected in order to reduce closing costs for borrowers. For all premium plans, a portion of the premium may be refundable if the policy is cancelled under the Homeowners Protection Act.

I have lived in my home for 5 years and am in the process of selling it. I had to buy PMI insurance because I did not have 20% down. Am I entitled to any type of refund once I sell the house?

Entitlement to a refund and the amount would depend on the mortgage insurance plan type and the refundable or non-refundable/limited option chosen at origination. Your best bet is to ask your lender directly, as there are many different mortgage insurance plans and combinations.

I think banks are being very greedy in demanding a secured loan plus PMI and still wanting a perfect credit rating for 7 years. My husband and I are trying to buy a home. We have a good credit rating, but not perfect credit for 7 whole years. If you guarantee the loan, what is their problem in granting it?

Mortgage insurance does not guarantee the loan, it only insures a designated portion (commonly only 12-30%) of the loan against default. The combinations of loan characteristics (credit, collateral, MI, etc.) are established as requirements by investors. Loans usually end up in mortgage backed securities. The mortgage securities may be purchased by investors, for example to go into Individual Retirement Accounts (IRA's), 401K plans, etc. The investment funds for IRAs, 401Ks, etc., have risk and return requirements which ultimately dictate the loan characteristics.

If mortgage insurance is canceled, are any pre-paid premium amounts refunded (particularly if they were originally paid by adding them to the loan amount)?

If all the mortgage insurance was financed at the time of origination and is canceled prior to it's maturity you may be entitled to a refund if the refundable option was chosen at time of origination. However, if the no refund/limited option was chosen no refund is due.

If a borrower currently has an FHA loan w/MI, after the LTV has reached 80% or less can the MI be canceled?

It is best to refer back to your lender for specific information on FHA loans.

Effective April 18, 2011 The charts below illustrate the 25 basis points (bps) increase in the Annual Mortgage Insurance Premiums. There are no changes to the Upfront Mortgage Insurance Premium (UFMIP). It is anticipated that this increase will have minimal impact on borrowers but will significantly strengthen the capital position of the MMIF.

The increase in the Annual Mortgage Insurance Premiums for forward mortgage amortization terms is effective for case numbers assigned on or after April 18, 2011.

Upfront Premiums:

Upfront premiums will not change on April 18, 2011. FHA will continue to charge an upfront premium in an amount equal to the following percentages of the mortgage:

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.00 percent

Streamline Refinances (all types) = 1.00 percent

Home Equity Conversion Mortgages = 2.00 percent

Annual Premiums:

Annual premiums will increase by 0.25% effective April 18, 2011.

For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule (effective with FHA case numbers assigned on or after 4/18/2011):

LTV Ratio Annual Premium for over 15 Years and up to 30 Years LTV Ratio Annual Premium for Loans 15 Years and Under

95.00% and Under 1.10% 78% and under 0.00%

95.01% and Over 1.15% 90.00% to 78.01% 0.25%

90.01% and Over 0.50%

How long will I have monthly FHA mortgage insurance? Years will be determined when the loan balance equals 78% of the initial sale price or appraised value, which ever is lower, provided the mortgagor has paid the annual mortgage insurance premium for at least 5 years.

Can you give an example of how the mortgage insurance escrow's get applied to the payment?

Your lender collects moneys on escrow and remits to PMI when the premium is due. Typically, on an annual premium plan, the lender collects 14 months premium at closing. Twelve months of the premium is paid to PMI as the initial premium. The remaining two months is used to start the escrow account. The lender then collects 1/12 of the renewal every month thereafter. It is hard to give a general rule on a monthly premium plan. The plan was developed in 1994 and lenders have developed unique escrow procedures.

Premise: Mortgage insurance covers the lender for the difference between the loan amount and 80% value of the property. So for a borrower who puts 10% down, in effect mortgage insurance covers the 10% difference. What are approximate rates in premium say per $1000 dollars? Does credit history have a bearing on the premium? Can the borrower negotiate the premium?

PMI actually covers the lender for a percentage they designate. The percent of coverage is usually driven by the investor's (often, Fannie Mae or Freddie Mac) requirements. Therefore, the approximate premium per $1000 varies based on the required coverage. The premium is fixed based on plan type (loan to value, loan type, loan term, etc.) and not related to individual borrower characteristics. Therefore, the premium is not negotiable.

Are mortgage lenders supposed to provide borrowers with information on the conditions when they can cancel mortgage insurance? Are these conditions supposed to be in the loan documentation? If the borrower pays mortgage insurance monthly, and his equity goes up, should his premiums go down? Is the mortgage lender supposed to notify the borrower when he reaches 20% equity? Which states have laws on this subject? Can the borrower choose the mortgage insurance company or does the lender do that?

Because of the wide variation in lender, investor and state requirements, it is necessary to consult your lender on these questions. Keep in mind when considering mortgage insurance issues that the lender is the insured, not the borrower.

Would mortgage insurance be of use to lenders to help approve loans for higher risk (i.e. self employed) individuals?

PMI does insure loans made by lenders to self employed borrowers. However, it is unlikely that coverage would have any effect on the lender's ability to offer such loans. Generally, mortgage insurance is required due to low down payment and associated risk and not related to borrower credit characteristics or history.

Does mortgage insurance apply for investor properties?

PMI only insures loans on owner occupied residential properties (1 to 4 units).

What is private mortgage insurance?

Mortgage insurance is a type of insurance that helps protect lenders against losses due to foreclosure. This protection is provided by private mortgage insurance companies, and allows lenders to accept lower down payments than would normally be allowed.

Mortgage insurance also enables lenders to grant loans that would otherwise be considered too risky to be purchased by third party investors like the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). The ability to sell loans to these investors is critical to maintaining mortgage market liquidity, which in turn, allows lenders to continue originating new loans.

Is private mortgage insurance different from other kinds of insurance associated with mortgages?

Private mortgage insurance protects the lender in the event of borrower default and subsequent foreclosure on the home. FHA and VA insurance also protect the lender against borrower default under a government program rather than through the private enterprise system.

Credit insurance, sometimes called mortgage insurance, is life insurance coverage that pays off the mortgage in the event a borrower dies, becomes disabled, or incurs loss of health or income. Fire, liability, and theft insurance cover the homeowner from losses according to the terms and conditions of their respective insurance policies.

How small can my down payment be?

Private mortgage insurance makes it possible for a home buyer to obtain a mortgage with a down payment as low as 5% and for low-to-moderate income home buyers as low as 3%. Such mortgages are popular today because potential home buyers are not able to accumulate the 20% down payment that is generally required by lenders if a loan is not insured.

Who pays for mortgage insurance?

The lender does, although they will generally pass that cost on to the borrower. Typically, a portion of the mortgage insurance premium is paid up front at closing, and the rest is paid as part of the monthly mortgage payment.

What are the payment options for mortgage insurance?

Private mortgage insurance can be paid on either an annual, monthly or single premium plan. Premiums are based on the amount and terms of the mortgage and will vary according to loan-to- value ratio, type of loan, and amount of coverage required by the lender.

Under an annual plan, an initial one year premium is collected up front at closing, with monthly payments collected along with the mortgage payment each month thereafter. Monthly plans allow a borrower to pay the lender only 1 or 2 months worth of premium at closing, and then on a monthly basis along with the regular mortgage payment. Under a single premium plan, the entire premium covering several years is paid in a lump sum at closing. Typically, home buyers choose to add the amount of the lender's mortgage insurance premium to the loan amount. By doing this, home buyers can reduce their closing costs and increase their interest deduction.

Below are examples of how a variety of mortgage insurance premium plans could affect your mortgage payments:

Annual Plan Monthly Premium

Plan Single Premium

Plan (financed)

Loan Amount(*) $150,000 $150,000 $150,000

Cash for MI at closing $750 $56 $0

Financed Premium $0 $0 $3,000

Total mortgage amount $150,000 $150,000 $153,000

Monthly P&I(**) $1,317 $1,317 $1,343

MI Renewal $43 $56 $0

P&I plus monthly MI $1,360 $1,373 $1,343

(*)Loan amount of $150,000; 10% down payment; 30 year fixed rate loan at 10% interest.

(**)P&I stands for monthly Principal and Interest on the mortgage.

--------------------------------------------------------------------------------

Can mortgage insurance coverage be canceled?

Mortgage insurance is maintained at the option of the current owner of the mortgage. In many cases, the lender will allow cancellation of mortgage insurance when the loan is paid down to 80% of the original property value. However, the degree of equity in the home is not the only factor that a lender may take into consideration. Note that the law in certain states requires that mortgage insurance be canceled under some circumstances.

How does private mortgage insurance differ from FHA insurance?

Although the insurance protection concept is similar, there are differences between private mortgage insurance and FHA. FHA insurance is a government-administered mortgage insurance program that does have certain restrictions. FHA has maximum regional loan limits that are lower than those with private mortgage insurance. FHA may be more expensive, takes longer to receive approval, and has fewer payment plan options. FHA insurance lasts for the life of the loan, unlike private mortgage insurance which is cancelable in most circumstances. FHA is a good choice for some borrowers with credit history problems that might need special assistance.

Fill out my form!

Mobile: Real: FHA streamline refinance gets cheaper | The Republic

noreply@blogger.com (kentuckyloan) — Tue, 29 May 2012 12:44:00 +0000

Mobile: Real: FHA streamline refinance gets cheaper | The Republic

The new, lower fees will make streamline refinances much more feasible to borrowers, Conarchy says.

When the new fees take effect, a borrower refinancing $200,000 will pay $20 -- instead of $3,500 -- in upfront mortgage insurance. The borrower also will pay about $92 -- instead of $208 -- per month for annual mortgage insurance.

That's because the FHA reduced the upfront mortgage insurance premium for eligible homeowners to 0.01 percent of the total loan and the annual premium to 0.55 percent of the loan. For borrowers who are not eligible for the reduced fees under the streamline program, the cost of upfront mortgage insurance is 1.75 percent of the total loan and 1.25 percent of the loan per year.

"We could have a mini-refinance boom in June" after the fees are reduced, says Derek Egeberg, a branch manager at Academy Mortgage in Yuma, Ariz.

To qualify for the reduced fees on streamline refinances, the borrower must:

-- Have a mortgage already insured by the FHA.

-- Be current on the mortgage.

-- Have a mortgage that was endorsed by the FHA before June 2009.

Fill out my form by clicking here for your free FHA streamline application!

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Louisville Ky First Time Home Buyer Loan

noreply@blogger.com (kentuckyloan) — Tue, 29 May 2012 00:33:00 +0000

Louisville Ky First Time Home Buyer Loan

Fill out my form!

HUD Homeownership Center Reference Guide Refinances

noreply@blogger.com (kentuckyloan) — Mon, 28 May 2012 19:49:00 +0000

HUD Homeownership Center Reference Guide Refinances
http://www.federalreserve.gov/pubs/refinancings/refinancing.pdf

Refinances for Kentucky FHA Loans Guidelines

Chapter 2
Mortgage Credit Guidelines for Kentucky FHA Loans
Page 2-19

A refinance transaction involves paying off an existing real estate debt from proceeds of a new mortgage. For all refinance loan transactions, 1) the borrower must be current for the month due and, 2) there must a current payoff statement in the case binder.

Under the terms and conditions outlined below, FHA will insure the following types of refinances:

A. Regular Refinances - "cash-out" and "no cash-out"

1. "Cash-Out" Refinances: the maximum loan-to-value and combined loan-to-value of any cash-out refinance is 85%. The calculation is based either off the appraised value or the original sales price, depending on the length of time the borrower has owned the property.

a)The loan is limited to a combined LTV (FHA insured first mortgage and any subordinated lien) of 85% of the appraised value, provided the borrower has owned the property for at least one year. Note that manufactured homes have other restrictions (Handbook 4155.1, section 3.A).
b) If the property was purchased less than one year preceding the application date, the LTV/CLTV (85%) for the mortgage amount must be calculated using the lesser of the appraised value or the original sales price of the property.
c) The property that is security for the refinanced mortgage may be a 1-4 unit property.
d)The property must be owner-occupied. Non-owner occupant co-borrower may not be added in order to meet FHA?s credit underwriting guidelines.
e)Properties owned free and clear may be refinance as cash-out transactions.
f)3-4 unit properties are required to pass the self sufficiency test and have a minimum of 3 months reserves after closing.
g) Properties acquired by inheritances within the past 12 months are eligible for a cash-out refinance transaction provided they have been occupying the property as their primary residence since the inheritance. The lender must document the acquisition by the borrowers via inheritance.
h)Manufactured homes: there are restrictions applicable please refer to Handbook 4155.1, section 3.A.

2.No Cash-Out Refinances (non-streamline): The maximum mortgage is based on the lesser of "a" and "b" below (a third calculation is applicable if owned less than 12 months):
a)The maximum LTV percentage is multiplied by the appraised value, exclusive of closing costs (please refer to Mortgagee Letter 2010-24).
b)The sum of the existing first lien, any purchase money second mortgage and/or any junior liens over 12 months old, closing costs, prepaid expenses, accrued late charges, escrow shortages, borrower paid repairs required by the appraisal, discount points, prepaid penalties charged on a conventional loan and FHA Title 1 loans as determined by the appropriate HOC subtract any refund of refund of upfront MIP. Note that the prepaid expenses may include per diem interest through the end of the month for the new loan, hazard/flood insurance premiums, mortgage insurance premiums and property tax deposits needed to establish the escrow account. The existing first lien may include the interest charged by the servicing lender, when the payoff is not received by the first of the month, but may not include any delinquent interest.
c)If the property was acquired less than one year before the loan application, and the existing loan is not an FHA loan, the original sales price, must be considered in calculating the maximum mortgage. Refer to Handbook 4155.1, section 3.B.
d)There may not be more than $500 in incidental cash back to the borrower.
e)If there is an existing subordinate lien refer to Handbook 4155.1, section 3.A, 3.B and ML 11-11.
f)Additional restrictions apply for manufactured homes; refer to Handbook 4155.1, section 3.A.

B.Streamline Refinances (with or without an appraisal): Streamline transactions involve the refinance of the FHA insured first mortgage only. This type of loan is designed to lower the monthly principal and interest payments on the current FHA insured mortgage and involves no cash back to the borrower. All Streamline transactions must meet the following criteria:

Note: Effective with case numbers assigned on or after April 18, 2011, the use of an appraisal to increase the insurable mortgage balance for a "non-qualifying" streamline refinance will no longer be permitted.

I)At the time of loan application: a) the borrower must be current, b) must have made at least 6 full months of payments since the first payment date and, c) at least 210 days must have passed from the closing date of the mortgage being refinanced.

2)At the time of loan application the borrower must exhibit an acceptable payment history as described below:

a) For mortgages with less than a 12 month payment history, the borrower must have made all mortgage payments within the month due.
b)For mortgages with a 12 month payment history or greater, the borrower must have:
i)Experienced no more than one 30 day late payment in the preceding 12 months, AND
ii)Made all mortgage payments within the month due for the three months prior to the date of loan application.

III)The lender must determine there is a net tangible benefit as a result of the streamline refinance transaction, with or without an appraisal. Net Tangible benefit is defines as:

a) Reduction to the principal, interest plus MIP by at least 5% (compare the new P & I & MIP to the existing P & I & MIP), or
b) For details of permissible minimum thresholds involving refinancing in or out of an ARM refer to ML 2011-11.

4)Investment/secondary property: for FHA financed properties that have become investment properties or secondary residences, a streamline refinance is only permitted without an appraisal. All other criteria must be met, however these properties may not be refinanced into an ARM.

5) Assets: If assets are needed to close, they must be verified.

6)A current payoff statement must be in the case binder.

7) Subordinate financing: if subordinate financing will remain in place, the maximum CLTV is 125%. To calculate the maximum CLTV for streamlines without an appraisal, use the "original property value" shown on the Refinance Authorization screen in FHAC. For streamlines with an appraisal, the CLTV calculation is based on the new appraised value.

8)LDP and GSA lists are required to be checked, however there is no need to check the CAIVRS.

9)URLA: for non-credit qualifying streamlines an abbreviated version of the URLA is permitted, however for credit qualifying streamlines, a fully completed URLA is required.

10)Maximum mortgage:

a) Streamline refinance without an appraisal (owner occupied): the maximum mortgage is the outstanding principal balance plus interest charged by the servicing lender (but may not include delinquent interest, late charges or escrow shortages), minus UFMIP refund plus new UFMIP.

b) Streamline refinance with an appraisal: as reflected above for case number assigned on or after April 18, 2011. For cases with case numbers assigned prior to this date refer to Handbook 4155.1, section 6.C.

c) Streamline refinance without an appraisal (non-owner occupied): these may only be refinanced without an appraisal and the new base mortgage may only cover the outstanding principal balance less the any UFMIP refund. Further the term of the mortgage must be the lesser of 30 years or the remaining term of the mortgage plus 12 years.

Please see: 4155.1 Chapter 3 and Chapter 6, section C; ML 2011-11 & 2010-24

http://www.federalreserve.gov/pubs/refinancings/refinancing.pdf

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

http://www.federalreserve.gov/pubs/refinancings/refinancing.pdf
Fill out my form!

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Underwriting Guidelines

noreply@blogger.com (kentuckyloan) — Mon, 28 May 2012 15:35:00 +0000

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Underwriting Guidelines: Louisville Mortgage Underwriting Guidelines Understanding Louisville Mortgage mortgage underwriting guidelines will help you understand y...

Fill out my form!

4 Things Every Borrower Needs to Get Approved for a Mortgage Loan In Kentucky-FHA VA KHC Conventional Mortgage

noreply@blogger.com (kentuckyloan) — Sun, 27 May 2012 14:13:00 +0000

4 Things Every Borrower Needs to Get Approved for a Mortgage Loan In Kentucky-FHA VA KHC Conventional Mortgage

HARP 2.0 Refinance Guidelines for Fannie Mae and Freddie Mac Louisville Kentucky Mortgage Loans

noreply@blogger.com (kentuckyloan) — Thu, 24 May 2012 02:58:00 +0000

Louisville Kentucky Mortgage Loans

FHA, VA, KHC, Rural Housing, USDA, Fannie Mae Mortgage Loans

HARP 2.0 Refinance Guidelines for Fannie Mae and Freddie Mac Louisville Kentucky Mortgage Loans

HARP 2.0 Frequently Asked Questions

HARP has been expanded to help more homeowners qualify for refinancing their

Louisville Kentucky Mortgage Loans

- even those with little or no equity available.

With HARP you could take advantage of low interest rates and other refinancing benefits even if the value of your home has declined and you owe more than your home is worth.

The questions and answers below will help you better understand how this program can help you refinance your underwater mortgage:

What does it mean to Refinance my Louisville Kentucky Mortgage Loan?When you refinance your mortgage, you are applying for a new mortgage, which replaces your current home loan.
What does it mean to be upside down on my mortgage?The terms “Upside Down”or “Underwater” simply mean that you owe more on your home loan than your property may appraise or sell for.The percentage that you are upside down is factored into what’s called a Loan-to-Value(LTV) ratio. So, if you owe $125,000 on a property that is valued at $100,000, then your LTV would be 125%.With the new updates to the HARP 2.0 program, borrowers with an LTV ratio greater than 125% may now qualify for a new refinance, provided they meet the other criteria.
What is the difference between a refinance and a loan modification?Basically, a modification is a change to an existing loan, where a refinance is a new loan.A Refinance on your loan means that you get a new loan to pay off an existing mortgage.A modification is for borrowers who are behind on their mortgage payment, or struggling to remain current, and are either not eligible for a refinance or it will not help them maintain their payments.
What changes were made to HARP that may make me eligible now?There were several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be underwater (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify.The amount a borrower owes on a mortgage compared to the appraised value of a property is called Loan-to-Value (LTV).With the release of “HARP 2.0″ guidelines, the original 125% LTV Cap was lifted, which will essentially allow borrowers who owe more than 125% on their first mortgage the ability to qualify for a new refinance, provided they meet the other underwriting and program criteria.
Is HARP the only refinance program available for underwater homeowners?HARP is one of several refinancing options available to eligible homeowners. However, HARP is unique because it is the primary refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits.Making Home Affordable is a trademark of the United States Department of the Treasury.
How can I find out whether my loan is owned by Fannie Mae or Freddie Mac?Only mortgages owned or guaranteed by either Fannie Mae or Freddie Mac are eligible for refinance under the enhanced and expanded provisions of HARP. You can confirm that your mortgage is owned by either Fannie Mae or Freddie Mac by checking the following Web sites:http://fanniemae.com/loanlookup/
http://freddiemac.com/mymortgage
Who is Fannie Mae?Fannie Mae is a government-chartered company with a mission to provide a stable source of funding to the U.S. housing and mortgage markets.The company purchases and securitizes mortgage loans to ensure that money is consistently available to financial institutions that lend money to home buyers.
What is the difference between a lender and a servicer?Your mortgage lender is the financial institution that gave you your mortgage loan.Your servicer is the financial institution that you send your monthly payment to. Your servicer is responsible for collecting your payments and crediting your account.You can find your mortgage servicer contact information on your monthly statement or coupon book.
On The Fannie Mae loan lookup tool, what does “Match Found” mean?A “Match Found” response to your search in the Fannie Mae Loan Lookup means that Fannie Mae owns a loan at the address entered in the search, however, it does not guarantee or imply that you will qualify for a Fannie Mae loan refinance or loan modification.
My loan is owned by Fannie, but it says that I don’t qualify for HARP?This is because Fannie Mae needed to receive your loan on May 31, 2009 or before.
Does Fannie Mae own my first and second mortgage?Fannie Mae generally owns primary (first-lien) mortgages only. A “Match Found” on the Fannie Mae Loan Lookup Tool means that they own the primary mortgage on the address entered in the search field.To find out who owns your second mortgage, refer to your monthly mortgage statement or contact the mortgage servicer to whom you send your monthly payment to.
What if I have an adjustable-rate mortgage (ARM)?HARP allows you to replace your adjustable-rate mortgage and many homeowners opt for a more stable fixed-rate mortgage.Every adjustable-rate mortgage is different, but refinancing may still provide you with a lower monthly payment, and allow you to avoid the sometimes large payment increase that comes once your ARM initial rate ends. The stability of a fixed monthly payment will give you security in knowing what you’ll owe every month.
Will the lender require an appraisal with a new HARP loan?Maybe – Even though the new updates to this program are intended to give borrowers with a Loan-to-Value (LTV) ratio above 125% the ability to refinance, lenders will still run an online valuation or require a full appraisal.Fannie Mae and Freddie Mac are updating their systems as this program progresses, but a good rule-of-thumb to follow is that loans under 125% LTV will generally not have an appraisal.If the appraisal is not conducted because of what is called PIW (Property Inspection Waiver), there will still be a $75 fees paid to Fannie Mae. Irrespective of what the appraisal value comes out to be, the loan would go through. However, some lenders may still cap the LTV to 150% – 200% or more, mainly depending on how the market reacts to this new program. Basically, expect LTV, Appraisal and Lending Limits to vary between lenders, and the time of the month.
Do I have to refinance through my current lender?No – As of March 19, 2012, Fannie Mae and Freddie Mac have opened this program up to non-servicing mortgage lenders.This is a huge benefit to borrowers in the fact that you have an opportunity to find a bank or mortgage broker who specializes in the new HARP program and can offer competitive rates.
Am I eligible for a refinance if my current loan has mortgage insurance (MI)?Yes, and the good news is that most of the mortgage insurance companies are working with HARP lenders to make the process as seamless as possible.Your new lender will do the work to make sure your current mortgage insurance scenario is similar to what you were, or were not paying.
Will I have to pay MI with a HARP since my new LTV will be >80%?No – If you did not originally have mortgage insurance due to the fact that your original LTV was less than 80% when acquired that loan, you will not be required to have MI, even though your new Loan-to-Value ratio will be greater than 80%.
I did not put 20% down when I purchased my property, but I do not have MI?If your current loan at the time of closing was over 80% and you are not paying a monthly Mortgage Insurance, most likely you have a Lender Paid Mortgage Insurance (LPMI).And yes, you would be able to refinance if you have an LPMI. Your lender will simply need to transfer the same coverage level from your current MI company to the new HARP 2.0 Refinance.
Can I Combine My First And Second Mortgage Into The New HARP Refinance?No – HARP does not allow for cash-out refinances or combining a first and second.Your new lender will order a subordination from your current second mortgage holder, which may require a fee.To quote the guidelines: “The refinance will not have a cash-out component, except for closing costs and certain de minimis allowances to cover items such as association fees, property tax bills, insurance costs, and rounding adjustments.
Will the lender need to verify income, assets and employment?Fannie Mae doesn’t expressly ask for Income, Employment or Asset verification for HARP 2.0 Loans. But, Fannie Mae suggests that the lender must obtain a verbal verification of employment (VOE) and verify the borrower’ss source of non-employment income, plus obtain any other income documentation as required by the Underwriting Findings Report.The borrower’s ability to repay the mortgage loan is based primarily on the acceptable payment history of the existing mortgage and the borrower benefit provisions. The acceptable payment history is no late in last 6 months and no more than one 30 days late in 7-12 months.If the borrower’s principal and interest payment is increasing more than 20%, the borrower must be re-qualified for the new loan, including verification of all income sources and amounts, and verification of any assets needed to close.Basically, your new lender will run your application through an online Fannie Mae or Freddie Mac approval engine, which will then provide a list of necessary documentation you need to prepare for loan submission.
Can I qualify for a new loan on an investment property or second home?All occupancy types i.e. Primary Residence, Second Homes and Investment Properties are allowed with HARP, even if the occupancy type has changed since the time of the original loan.Aliquam porttitor metus felis. Curabitur euismod porta justo ut mattis. Mauris condimentum ultrices justo, ac suscipit leo tempor eget
Are All Borrowers on the existing mortgage required to be on the new loan?Borrower(s) may be removed through the new transaction, provided that:a) The lender obtains documented evidence that the remaining borrower has been making payments from his or her own funds for the past 12 months, andb) The borrower(s) being removed is also removed from the deed.If the borrower(s) is being removed due to death, however, evidence that the remaining borrower(s) has been making payments from his or her own funds is not required.

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Call us at 502-905-3708 today, or CLICK HERE to apply online.

HARP REFINANCE QUESTIONS?

HARP 2.0 Refinance Guidelines for Fannie Mae and Freddie Mac Louisville Kentucky Mortgage Loans

You can determine whether your mortgage is owned by either Fannie Mae or Freddie Mac by checking the following Web sites:

http://www.fanniemae.com/loanlookup/
http://www.freddiemac.com/mymortgage

Fannie Mae and Freddie Mac have adopted changes to the Home Affordable Refinance Program (HARP) and you may be eligible to take advantage of these changes. If your mortgage is owned or guaranteed by either Fannie Mae or Freddie Mac, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

We Are Not The Government. All approvals and rates are not guaranteed, and are only issued based on standard HARP or other mortgage qualifying guidelines. Equal Opportunity Lending, Fair Credit, Truth in Lending, and their own local and state RESPA, or otherwise lending laws. Privacy Statement | Equal Housing

Making Home Affordable is a trademark of the United States Department of the Treasury.

Page Tags: HARP Questions

Loans.org Details HARP 2 Guidelines as the New Plan Goes into Effect (prweb.com)
HARP 2.0 for Louisville Kentucky Mortgage Refinances 2012 (kentuckyfirsttimehomebuyer.com)
HARP 2.0 Refinance Guidelines for Kentucky Mortgages (kentuckyfirsttimehomebuyer.com)
HARP Refinance Loan Program | HARP 2.0 Loan Rates (mortgagerefinancerates.org)
HHS Funding “Fannie Mae” for Healthcare: The Backdoor Approach to Socialized Medicine – Don’t We Ever Learn? (confoundedinterest.wordpress.com)
Underwater? HARP Is Your Life Preserver (schauerteammortgage.wordpress.com)
HARP 2.0 Appears to be Succeeding (loans.org)
Leaving Fannie Mae, Freddie Mac As Is Risks Another Housing Bubble (usnews.com)
Harp 2.0 (bestfloridamortgage.wordpress.com)
President Obama Announces Impact of October Refinancing Actions, Calls on Congress to Act on “To Do List” May-14-2012 - (vikenzkokozian.wordpress.com)
President Obama Announces Impact of October Refinancing Actions, Calls on Congress to Act on “To Do List” May-14-2012- (vikenzkokozian.wordpress.com)
Previous Post (mickdoesloans.wordpress.com)
Do VA Loans Qualify for HARP? | MilitaryVALoan.com (militaryvaloan.com)

Call us at 502-905-3708 today, or CLICK HERE to apply online.

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Fill out my form!

Louisville, KY HARP Mortgage Lender New HARP could help up to 6.7 million - WDRB 41 Louisville - News, Weather, Sports Community

noreply@blogger.com (kentuckyloan) — Tue, 22 May 2012 22:37:00 +0000

New HARP could help up to 6.7 million - WDRB 41 Louisville - News, Weather, Sports Community

Louisville, KY HARP Mortgage Lender

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

By Peter King
Provided by

Recent changes to HARP mean that some 6.7 million homeowners will be eligible to refinance their mortgage to a lower interest rate under the government-backed program.

That's according to a new analysis by the real estate analytics firm DataQuick. The company estimates that's how many borrowers could potentially benefit from a recent change to the program that allows borrowers to refinance regardless of how far underwater they are on their mortgage.

Limit on underwater refinancing removed

Mortgage servicers are currently implementing several changes to the program, which were announced by the Obama administration last fall. Chief among them is the elimination of a limit on how far underwater a homeowner can be on their mortgage and still qualify for the program.

Previously, the balance on mortgages refinanced through HARP could not exceed 125 percent of the home's current value; the changes announced last fall eliminated that cap entirely. Homeowners must still be current on their mortgage payments to qualify.

More options for borrowers

Other changes to the program were designed to make it easier for homeowners with private mortgage insurance (PMI) to refinance or to obtain a HARP mortgage refinance with a lender other than their current mortgage servicer.

In addition, new limits were placed on the fees lenders could charge up front for refinancing a low-equity or underwater mortgage, known as loan level pricing adjustments. The new rules limit such fees to a one-time charge of 0.75 percent of the loan balance, down from 2.0 percent previously, and completely eliminate such fees on mortgages refinanced into a term of 20 years or less.

Will lenders go along?

Although the new rules have been out for several months, many lenders are still incorporating them into their mortgage refinance programs. Even so, it's not clear how many homeowners will actually benefit. The program is voluntary for lenders, and many homeowners who have applied for a HARP refinance in the past have been turned down despite qualifying under the official guidelines.

That's because even though HARP has its own set of guidelines for which mortgages will be approved for refinancing, lenders have their own guidelines as well, which may be considerably more stringent. As a result, to date only one million homeowners have been able to refinance their mortgages under HARP, compared to a projected 4-5 million when the program was launched in spring 2009.

HARP stands for the Home Affordable Refinance Program, which is designed to enable homeowners with little or no equity to refinance their mortgages to the historically low interest rates that have been available over the past two years.

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

HARP stands for the Home Affordable Refinance Program which was a government sponsored initiative released in March of 2009 by President Obama in response to the needs of homeowners suffering during the mortgage crisis. The Louisville, KY HARP Mortgage is a part of the Making Home Affordable Program that was created to provide payment relief to Louisville, KY homeowners that were behind on their mortgages due to financial hardships and the opportunity for Louisville, KY homeowners that were under water on the their mortgages.

Since many Louisville, KY homeowners were caught in a time period of rapidly declining property values there was a need to create a refinancing opportunity for those that lost significant value in their properties but made their mortgage payments on time. The intended benefit of the HARP Mortgage was to make refinances available to Louisville, KY homeowners that were under water on their homes that would lower their interest rates and payments. It was believed that the Louisville, KY HARP Mortgage would also protect Louisville, KY homeowners from their existing toxic adjustable rate and interest only loans with opportunities for more stable fixed rate mortgages. For those Louisville, KY homeowners that were doing well financially and simply under water on the mortgage, the HARP Mortgage offered a lower interest rate on a reduced mortgage term which would help the borrower erase negative equity within a much shorter period of time.

There were high hopes for the HARP Mortgage and while it helped thousands of homeowners to reduce their interest rates, lower their payments and get out of loans that could suddenly adjust the monthly payments upwards, the 125% negative equity ceiling did not allow millions of homeowners that had greater losses in property values to take advantage of the program. In theory, there was nothing wrong with the HARP Mortgage Program. The 125% loan to value restriction left a lot of good paying Louisville, KY mortgage holders out of the opportunity to refinance at the low market interest rates. If there are any knocks on the way the program was originally written it would have to be that the equity ceiling was a little short sighted. The HARP Mortgage did not help enough of the Louisville, KY homeowners that it was designed to. In March of 2012, the rules for the HARP Mortgage have changed and the combination of historically low interest rates and a significant equity guideline change, it is believed that millions more homeowners will get the help that they deserve

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Louisville, KY HARP Mortgage Lender

Fill out my form!

FIRST TIME BUYER PROGRAMS FOR JEFFERSON COUNTY KY

noreply@blogger.com (kentuckyloan) — Tue, 22 May 2012 17:56:00 +0000

FIRST TIME BUYER PROGRAMS FOR JEFFERSON COUNTY KY

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.

Down Payment and Closing Costs Assistance

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.

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.

THANKS,

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

107 South Hurstbourne Parkway*
Louisville, KY 40222*
http://mylouisvillekentuckymortgage.com

Fill out my form!

How Do Mortgage Companies Average the Score on All 3 Credit Reports?

noreply@blogger.com (kentuckyloan) — Sun, 20 May 2012 23:50:00 +0000

How Do Mortgage Companies Average the Score on All 3 Credit Reports?

Lenders use credit scores when approving loans.

Your credit score measures your risk of paying late or defaulting on a loan. Lenders use credit scores along with the rest of your loan information to measure your likelihood of paying back the debt on time. Credit scores allow mortgage companies to use software programs called automated underwriting systems, or AUS, to determine if the amount of risk is acceptable for the loan program requested.

Credit Bureaus

The three major credit bureaus are Equifax, Experian and TransUnion. Lenders are encouraged to report loans and payment history to the credit bureaus on a monthly basis. When companies need to examine a potential borrower's payment history, they buy a credit report using the borrower's name, address and Social Security number. Each credit bureau calculates the credit score differently. This is why the exact same information can be on all three credit reports and they all report a different credit score.

Factors that Affect Credit Scores

Many factors affect your credit score. Making your payments on time every month is one important factor. Payments made more than 30 days late will lower your credit score. Collections, judgments, tax liens, bankruptcy and foreclosure can have devastating effects on your credit score. Each time you authorize someone to look at your credit that can lower your credit score as well.

Raising Your Credit Score

One misconception is the belief that paying off credit cards will raise your credit score. The credit bureaus want to see your ability to manage ongoing credit without missing payments or using the entire credit line. Pay down your credit cards so the balances are between 30 to 45 percent of the total available credit line. The older the credit line, the better. If you close a credit card, close the newest ones first and keep the older ones.

Finding the Middle Score

Mortgage lenders require access to all three credit bureaus for each borrower. They use the mid-credit score. If your three scores were 780, 776 and 790 they would use the middle of the three scores, in this case 780. They would not average the scores by adding the three numbers together and dividing the sum by three.

Minimum Credit Score Requirement

In January 2010, the Federal Housing Authority, or FHA, began requiring a minimum 580 credit score for any FHA loan with less than a 10 percent down payment or equity if the loan is a refinance. Conventional loans require a minimum credit score of 620. Lenders are allowed to require their own minimum credit score requirements beyond what the mortgage investors and insurers require. Having the required score does not guarantee loan approval; it is only one factor that lenders consider when approving a loan.

References

About the Author

David Rouse, currently residing in Raleigh, N.C., has been writing and teaching home owners about the mortgage industry since 1997. Rouse has written training manuals for mortgage professionals and conducted informational first-time home-buyer seminars, providing make-sense answers for a long and confusing process. He studied at Western Kentucky University.

Photo Credits

sign. loan sale image by L. Shat from Fotolia.com

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Louisville, Kentucky First Time Home Buyer Program...

noreply@blogger.com (kentuckyloan) — Sun, 20 May 2012 15:25:00 +0000

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Louisville, Kentucky First Time Home Buyer Program...: Louisville, Kentucky First Time Home Buyer Programs Updated 2012 Conventional Insured by approved mortgage insur...

Apply for a home loan by clicking the link below:It's free and takes less than 5 minutesOr call us at 502-905-3708 for your free application over the phone

Louisville, Kentucky First Time Home Buyer Programs Updated 2012

noreply@blogger.com (kentuckyloan) — Sun, 20 May 2012 00:43:00 +0000

Louisville, Kentucky First Time Home Buyer Programs Updated 2012

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.

Down Payment and Closing Costs Assistance

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.

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.

The following is a list of documents that may be required to process your Louisville Kentucky Mortgage mortgage loan:

one full month's worth of pay stubs

Last 2 years W-2's

Last 2 years tax returns with all schedules

Last two months bank statements for all accounts

Documentation to support your funds to close

Explanation for any derogatory credit (if applicable)

Bankruptcy and discharge paperwork (if applicable)

Divorce decree and settlement paperwork (if applicable)

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

6 Don’ts After You Apply For A Mortgage

noreply@blogger.com (kentuckyloan) — Sun, 20 May 2012 00:43:00 +0000

6 Don’ts After You Apply For A Mortgage

I learned a long time ago that “common sense is NOT common practice“. This is especially the case during the emotional time that surrounds buying a home, when people tend to do some non-commonsensical things. Here are a few that I’ve seen over the years that have delayed (and even killed) deals:

Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift in cash is not. Discuss the proper way to track your assets with your loan officer.
Don’t make any large purchases like a new car or a bunch of new furniture. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios…higher ratios make for riskier loans…and sometimes qualified borrowers are no longer qualifying.
Don’t co-sign other loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios, as well. Even if you swear you won’t be making the payments, the lender will be counting the payment against you.
Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Frankly, before you even transfer money between accounts, talk to your loan officer.
Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more approvable. Wrong. A major component of your score is your length and depth credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.

The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. Any blip in income, assets, or credit should be reviewed and executed in a way to keep your application in the most positive light.

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Fill out my form!

What are the minimum requirements for a FICO score?

noreply@blogger.com (kentuckyloan) — Sat, 19 May 2012 13:26:00 +0000

What are the minimum requirements for a FICO score?

There's really not much to it; in order for a FICO® score to be calculated, a credit report must contain these minimum requirements:

At least one account that has been open for six months or more
At least one undisputed account that has been reported to the credit bureau with in the past six months
No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased

What’s in your FICO® score

FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining your FICO score.

These percentages are based on the importance of the five categories for the general population. For particular groups - for example, people who have not been using credit long - the importance of these categories may be somewhat different.

Payment History

Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
Presence of adverse public records (bankruptcy, judgements, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
Severity of delinquency (how long past due)
Amount past due on delinquent accounts or collection items
Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
Number of past due items on file
Number of accounts paid as agreed

Amounts Owed

Amount owing on accounts
Amount owing on specific types of accounts
Lack of a specific type of balance, in some cases
Number of accounts with balances
Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)

Length of Credit History

Time since accounts opened
Time since accounts opened, by specific type of account
Time since account activity

New Credit

Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
Number of recent credit inquiries
Time since recent account opening(s), by type of account
Time since credit inquiry(s)
Re-establishment of positive credit history following past payment problems

Types of Credit Used

Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)

Please note that:

A FICO score takes into consideration all these categories of information, not just one or two.
No one piece of information or factor alone will determine your score.
The importance of any factor depends on the overall information in your credit report.
For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your FICO score. Thus, it's impossible to say exactly how important any single factor is in determining your score - even the levels of importance shown here are for the general population, and will be different for different credit profiles. What's important is the mix of information, which varies from person to person, and for any one person over time.
Your FICO score only looks at information in your credit report.
However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
Your score considers both positive and negative information in your credit report.
Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your FICO credit score.

Do FICO scores change that much over time?

In general, FICO® scores do not change that much over time. But it's important to note that your FICO score is calculated each time it's requested; either by you or a lender. And each time it's calculated it's taking into consideration the information that is on your credit report at that time. So, as the information on your credit report changes, your FICO score can also change.
How much your FICO score changes from time to time is driven by a variety of factors such as:

Your current credit profile – how you have managed your credit to date will affect how a particular action may impact your score. For example, new information on your credit report, such as opening a new credit account, is more likely to have a larger impact for someone with a limited credit history as compared to someone with a very full credit history.
The change being reported – the "degree" of change being reported will have an impact. For example, if someone who usually pays bills on-time continues to do so (a positive action) then there will likely be only a small impact on their score one month later. On the other hand, if this same person files for bankruptcy or misses a payment, then there will most likely be a substantial impact on their score one month later.
How quickly information is updated – there is sometimes a lag between when you perform an action (like paying off your credit card balance in full) and when it is reported by the creditor to the credit bureau. It's only when the credit bureau has the updated information that it will have an affect on your FICO score.

Keep in mind:
Small changes in your score can be important if you're looking to obtain a certain FICO score level or if you are striving to reach a certain lender's FICO score "cutoff" (the point above which a lender would accept a new application for credit, but below which, the credit application would be denied).

Was this article helpful?

Why can't I see my credit report and FICO score update daily?

Your credit report and the associated FICO score do change regularly, but rarely on a daily basis. Lenders typically report updated account information to the credit bureaus every month, which may or may not result in a change to your FICO score. In a given three-month time period, only about one in four people has a 20-point change in their FICO score, so it's not that helpful to check your report and score on a daily basis. You can certainly purchase reports daily, but more often than not you will not see changes on a daily basis.

If you are interested in monitoring your credit report and FICO score for significant changes Score Watch may be a good fit for your needs. Score Watch monitors your Equifax credit report on a daily basis and sendsservice alerts via email or to your cell phone notifying you of relevant changes to your Equifax credit report and/or FICO score.

To learn more about Score Watch, click here.

Credit Q&A

How long will negative information remain on my credit report?

It depends on the type of negative information. Here's the basic breakdown of how long different types of negative information will remain on your credit report:

Late payments: 7 years

Bankruptcies: 7 years for completed Chapter 13 bankruptcies and 10 years for Chapter 7 bankruptcies.

Foreclosures: 7 years

Collections: Generally, about 7 years, depending on the age of the debt being collected.

Public Record: Generally 7 years, although unpaid tax liens can remain indefinitely.

Keep in mind:
For all of these negative items, the older they are the less impact they are going to have on your FICO® score. For example, a collection that is 5 years old will hurt much less than a collection that is 5 months old.

Was this article helpful?

Fill out my form!

KHC Refinance Products

noreply@blogger.com (kentuckyloan) — Sat, 19 May 2012 13:26:00 +0000

KHC Refinance Products

To qualify for a KHC refinancing option, you must contact an approved lender and meet the requirements below:

FHA Credit Qualifying Streamline Refinance:

640 minimum credit score
Appraisal required
Maximum LTV/CLTV 97.75 percent (125 percent CLTV)
30-year term
FHA existing loan

FHA Rate/Term Refinance

640 minimum credit score
Appraisal required
Maximum LTV/CLTV 97.75 percent (97.75 percent CLTV)
30-year term
Conventional, RHS, VA, or FHA existing loans

Rural Housing Services (RHS)

Minimum 640 credit score required

Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.3% annual fee

ALL KHC DAPs and other KHC-approved secondary financing may be used

No maximum on seller-paid items

Ratio requirements and guarantee fee per agency guidelines

KHC will accept GUS findings, including reduced documentation and, with approval, expanded ratios up to 40/45%.

RHS Refinance Pilot Program - AN 4634
This RHS refinance pilot program will assist existing Guarantee borrowers to refinance their homes with greater speed and ease. Borrowers will be able to secure lower interest rates and payments without the need of obtaining a new appraisal or new property inspections. Eligibility requirements are:

Must meet KHC and RHS Guarantee's household income limitations; AND
Must reside in eligible rural location and remain as principle residence; AND
Have made timely mortgage payments for the last 12 months and have a minimum 640 credit score;AND
New interest rate must be 1 percent below current interest rate.
More information can be found in our program guides. Attend one of the upcoming Lender Regional Trainings to hear more specifics on this new program and our other new policies and programs. S

Eligibility Requirements:

Must meet KHC and RHS Guarantee’s household income limitations.

Must reside in eligible rural location and remain as principle residence.

Must have made timely mortgage payments for the last 12 months and have a minimum 640 credit score.

New interest rate must be 1% below current interest rate.

Existing loan must be a 502 guaranteed loans only.

Ratio calculation not required.

Must be a manual underwrite and not processed through the Guaranteed Underwriting System (GUS).

Borrower must be employed at time of closing or have alternative sources of income, such as retirement, social

security, disability, alimony, or child support.

Refinance balance consists of: principal balance of loan + the full upfront guarantee fee + funds to close. The

applicable upfront fee is 1.5%. No cash out is permitted. Annual fee is applicable. For 2012 the annual fee is

.3%

Income: Verification of all sources for income eligibility only—not for repayment.

Streamlined Benefits:

KHC will follow current lender compensation guidelines.

No appraisal required.

Reduced documentation (customized checklist).

No credit or ratio underwriting.

Reduced fees with all closing costs rolled in to loan amount.

Quicker closings.

Homebuyer Tax Credit Benefits

A home buyer with a 3.75 percent interest rate on a fixed, 30-

year mortgage of $125,000 would pay approximately $4,687

in interest payments for the first year without an MCC.

With an MCC, 25% of that interest could be taken as a tax

credit against the homebuyer’s federal income taxes,

effectively reducing the monthly mortgage payments by

$64.61 per month. This effectively reduces the interest rate

from 3.75% to 2.81% as seen in the example below:

Terms MCC Without MCC

Mortgage Amount $125,000 $125,000

Interest Rate 2.81%** 3.75%

Term 30 Years 30 Years

Monthly P&I $514.28** 578.89

1st year Interest

Payments

$3,515** $4,687

*Borrowers are encouraged to consult an accountant for full details on

tax effects of this or any financial program.

**The interest rate and payment information includes the estimated

effects of the tax credit.

Households whose gross annual income does not exceed HOME Program income guidelines.
Eligible
Properties
Existing (previously occupied) property only up to a maximum purchase price of $195,700.
Property cannot be located within 3,000 feet of an airport runway.
If house was built before January 1, 1978 and has extensive lead-based paint problems, property will not be
eligible for programs.
Maximum
DAP Loan
Amount
Minimum of $1,000 up to a maximum of $4,500 based on need. Must go maximum on first mortgage amount.
Loan Terms
Second mortgage loan forgiven over five years; no monthly repayment required.
Forms
DAP GFE – Tool to create this form is available under
Loan Connection Services.
DAP fees:
 $50 document prep to closing agent (VA borrower cannot
pay).
 Recording fees – actual recording cost.
KHC provides note and mortgage in closing documents
set.
All liquid assets must be listed on the loan application.
All loans require Notification to Seller (KHC Form 95).
All loans require an HQS Inspection
 HQS Inspection Form (Form 89) will be printed
with KHC forms.
 Full HQS Inspection Form is available on KHC’s
Web site.
Lead-Based Paint Requirements – If house was
built before January 1, 1978, borrower must
receive Lead-Based Paint pamphlet and sign
HOME Lead-Based Paint Notice (KHC revised
Form 96) as of or before the contract date.
(Purchase contracts that have the same
Credit language as Form 96 are acceptable.)
May gross up non-taxable income 15% to help qualify for loan.
Other When using DU/LP, down payment assistance funds with payments deferred five years or more must be
entered in DU/LP as subordinate financing instead of gifts.
Borrowers must use all their own funds before any HOME DAP is used. However, borrower can retain
reserves of their own funds equal to two months’ housing payments (PITI).
Borrower may use their funds to pay off existing debt to qualify.
The seller must pay for any required repairs. Final inspection can be paid by borrower or seller.
HOME DAP cannot be used with REOs or FHA 203K Streamline Program.
Lender must disclose any Secondary Financing on a separate GFE and HUD-1.http://www.kyhousing.org/uploadedFiles/Lenders/GNMA-Guide.pdf

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Fill out my form!

Down Payment and Closing Costs Assistance for Jefferson County Kentucky Louisville Metro

noreply@blogger.com (kentuckyloan) — Sat, 19 May 2012 13:26:00 +0000

Down Payment and Closing Costs Assistance for Jefferson County Kentucky Louisville Metro

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.

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.

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 HOUSING CORPORATION
2012 GROSS ANNUAL HOUSEHOLD INCOME LIMITS
Effective February 21, 2012

The income limitations listed below are imposed by federal law.
Failure to comply with them may create adverse consequences for Kentucky Housing Corporation and its bondholders.

Funding Source: New Bond Funds (Purchase Price Limit – $243,000)

Jefferson County Income Limits

74,160

$ for 1 person

86,520

$ for a family of 5

Mortgage Revenue Bond Interest Rates (Purchases ONLY):

60-Day Lock

Loan Type	*Rate without* Down Payment Assistance**	*Rate with* Down Payment Assistance**
FHA, VA & RHS 640 credit score AUS approval	4.125%	4.250%
Conventional 660 credit score AUS approval Maximum 80% LTV*	4.125%	NOT AVAILABLE Borrower must use own funds or gift funds

In order to get you pre-approved, I would need to get the following documents from you. This is a free process to get pre-approved for a KHC loan.

Required Documents

Past two (2) years W-2 statements
Pay Stubs covering the last (30) thirty days
two most recent monthly bank statements
Most recent transaction summary of 401K, IRA, or Mutual Fund Accounts
If divorced...a fully executed divorce decree
A letter of explanation for any known credit problems

Two (2) years signed personal tax returns - including all schedules
If self-employed through a corporation, last two years corporate returns as well as a year-to-date profit and loss statement and balance sheet

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Fill out my form!

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

noreply@blogger.com (kentuckyloan) — Sat, 19 May 2012 13:26:00 +0000

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. 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!!!!! 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
NMLS# 57916

Louisville KY Mortgage Information | Louisville Kentucky Home Loans | Refinance Louisville

noreply@blogger.com (kentuckyloan) — Sat, 19 May 2012 02:52:00 +0000

Louisville KY Mortgage Information | Louisville Kentucky Home Loans | Refinance Louisville
Louisville Featured Mortgage Professional

Joel Lobb
Key Financial Mortgage
107 South Husrtbourne Parkway Louisville Ky 40222
502-905-3708

Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky. He has helped over 389 Kentucky families buy their first home and refinance their current mortgage for a lower rate; Free credit report and Free pre-approvals within 1 hour..Call today at 502-905-3708 or email at kentuckyloan@gmail
Fill out my form!

Realty Times - HARP 2.0 Out of Tune

noreply@blogger.com (kentuckyloan) — Sat, 19 May 2012 02:30:00 +0000

Realty Times - HARP 2.0 Out of Tune

Fill out my form!

Louisville Bankruptcy Watch: Keep Your Home

noreply@blogger.com (kentuckyloan) — Thu, 17 May 2012 01:48:00 +0000

Louisville Bankruptcy Watch: Keep Your Home

Fill out my form!

FHA 203k Rehab Loan Kentucky FHA Loan Guidelines

noreply@blogger.com (kentuckyloan) — Wed, 16 May 2012 02:17:00 +0000

FHA 203k Rehab Loan Kentucky FHA Loan Guidelines

Fill out my form!

Louisville home sales | Realtors say multiple offers bolstering prices | Derby City Cents

noreply@blogger.com (kentuckyloan) — Wed, 16 May 2012 01:01:00 +0000

Louisville home sales | Realtors say multiple offers bolstering prices | Derby City Cents

Members of the Greater Louisville Association of Realtors sold 1,054 houses and condos in April, a 14 percent increase from a year earlier.

Sales are up 12 percent for the first four months of the year and the median sales price has also risen 4 percent to $133,463, the association said in its monthly news release.

The number of homes that went under contract in April jumped 21 percent from last year, an indication that more sales in the pipeline to close in May or June.

“Many buyers are ‘getting off the fence’ and the level of investor interest is also increasing as stock performance has leveled off from the rebound in 2010-11,” the group said.

The association also said its members have reported an increase in multiple offers for properties, which is helping to bolster prices.

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Fill out my form!

More Than 95 Percent Of Refinancing Borrowers Choose Fixed-Rate Mortgages - May 14, 2012

noreply@blogger.com (kentuckyloan) — Mon, 14 May 2012 14:53:00 +0000

More Than 95 Percent Of Refinancing Borrowers Choose Fixed-Rate Mortgages - May 14, 2012

Fill out my form!

FHA Announces Important Guideline Changes

noreply@blogger.com (kentuckyloan) — Mon, 14 May 2012 12:28:00 +0000

FHA Announces Important Guideline Changes

Mortgagee Letter 2012-3 announces several key guideline changes on topics of self-employment, disputed credit, outstanding collections and identity of interest definitions. These changes are good from the perspective that they offer much clearer underwriting requirements on several key topics so not as much is left to interpretation or opinion. All of these changes are effective for cases assigned on and after April 1st.

Topic: Self-Employment
New Requirement for AUS Approve/Accept & Manual Underwriting: A P&L and Balance Sheet is required if more than a calendar quarter has elapsed since date of most recent calendar or fiscal-year end tax return was filed by the borrower – with no exceptions. Additionally, if income used to qualify the borrower exceeds the two year average of tax returns, an audited P&L or signed quarterly tax returns obtained from IRS are required.

Topic: Disputed Credit Accounts

New Requirement: AUS Accept/Approve does not need to be downgraded to a Refer and manually underwritten as long as
• the total outstanding balance of all disputed credit accounts or collections are less than $1,000, and
• Disputed credit accounts or collections are aged two years from date of last activity as indicated on the most recent credit report.

If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing. The payments arranged for the accounts must be included in the calculation of the borrower’s debt-to-income ratios.

Disputed credit accounts or collections resulting from identity theft, credit card theft, or of unauthorized use, etc., will be excluded from the $1,000 limit under the terms shown below. The mortgagee must provide a credit report or letter from the creditor, or other appropriate documentation, to support that the borrower filed an identity theft or police report to dispute the fraudulent charges. Mortgagees must provide documentation in the case binder to show all disputed or collection accounts are resolved, verified as not a debt to the borrower, arrangements made for payment, or paid in full.

Topic: Outstanding Collection Accounts & Court-Ordered Judgments

New Requirement: If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing. If the total outstanding balance of all collection accounts is less than $1,000, the borrower is not required to pay off the collection accounts as a condition of mortgage approval.

Note: Paying “down” of balances on disputed accounts and collections to reduce the singular or cumulative balance to below $1,000, is not an acceptable resolution of accounts.

An exception to the payoff of a court-ordered judgment may be made if the borrower has an agreement with the creditor to make regular and timely payments, and provides documentation indicating that a minimum of three months payments have been made according to the agreement. The monthly payment must be included in the borrower’s debt-to-income ratio.

Topic: Identity of Interest Transaction

New Requirement: The definition of a family member for establishing “identity of interest” purposes has been expanded to include a child, parent, grandparent, spouse, legally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption, foster child, brother, stepbrother, sister, stepsister, uncle, and aunt.

Please be sure to read the Mortgagee Letter in its entirety.

Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com

Fill out my form!

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage

Mortgage Rates Louisville, Kentucky

PMI Mortgage insurance for Kentucky Mortgage Loans

Frequently Asked Questions about MI

Mobile: Real: FHA streamline refinance gets cheaper | The Republic

Louisville Ky First Time Home Buyer Loan

HUD Homeownership Center Reference Guide Refinances

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Underwriting Guidelines

4 Things Every Borrower Needs to Get Approved for a Mortgage Loan In Kentucky-FHA VA KHC Conventional Mortgage

HARP 2.0 Refinance Guidelines for Fannie Mae and Freddie Mac Louisville Kentucky Mortgage Loans

Louisville Kentucky Mortgage Loans

HARP 2.0 Refinance Guidelines for Fannie Mae and Freddie Mac Louisville Kentucky Mortgage Loans

HARP 2.0 Frequently Asked Questions

Louisville Kentucky Mortgage Loans

HARP REFINANCE QUESTIONS?

Related articles

Louisville, KY HARP Mortgage Lender New HARP could help up to 6.7 million - WDRB 41 Louisville - News, Weather, Sports Community

Louisville, KY HARP Mortgage Lender

Louisville, KY HARP Mortgage Lender

FIRST TIME BUYER PROGRAMS FOR JEFFERSON COUNTY KY

FIRST TIME BUYER PROGRAMS FOR JEFFERSON COUNTY KY

Conventional

FHA

VA

Down Payment and Closing Costs Assistance

Regular Down payment Assistance Program (DAP)

HOME-DAP

More about down payment and closing costs

How Do Mortgage Companies Average the Score on All 3 Credit Reports?

Credit Bureaus

Factors that Affect Credit Scores

Raising Your Credit Score

Finding the Middle Score

Minimum Credit Score Requirement

References

About the Author

Photo Credits

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Louisville, Kentucky First Time Home Buyer Program...

Louisville, Kentucky First Time Home Buyer Programs Updated 2012

Louisville, Kentucky First Time Home Buyer Programs Updated 2012

Conventional

FHA

VA

RHS

Down Payment and Closing Costs Assistance

Regular Down payment Assistance Program (DAP)

More about down payment and closing costs

6 Don’ts After You Apply For A Mortgage

What are the minimum requirements for a FICO score?

What are the minimum requirements for a FICO score?

What’s in your FICO® score

Payment History

Amounts Owed

Length of Credit History

New Credit

Types of Credit Used

Do FICO scores change that much over time?

Credit Q&A

How long will negative information remain on my credit report?

KHC Refinance Products

KHC Refinance Products

Rural Housing Services (RHS)

Minimum 640 credit score required

Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.3% annual fee

ALL KHC DAPs and other KHC-approved secondary financing may be used

No maximum on seller-paid items

Ratio requirements and guarantee fee per agency guidelines

KHC will accept GUS findings, including reduced documentation and, with approval, expanded ratios up to 40/45%.

Eligibility Requirements:

Must meet KHC and RHS Guarantee’s household income limitations.

Must reside in eligible rural location and remain as principle residence.

Must have made timely mortgage payments for the last 12 months and have a minimum 640 credit score.

New interest rate must be 1% below current interest rate.

Existing loan must be a 502 guaranteed loans only.

Ratio calculation not required.

Must be a manual underwrite and not processed through the Guaranteed Underwriting System (GUS).

Borrower must be employed at time of closing or have alternative sources of income, such as retirement, social

security, disability, alimony, or child support.

Refinance balance consists of: principal balance of loan + the full upfront guarantee fee + funds to close. The

applicable upfront fee is 1.5%. No cash out is permitted. Annual fee is applicable. For 2012 the annual fee is