Showing posts with label Louisville Kentucky. Show all posts
Showing posts with label Louisville Kentucky. Show all posts

Credit Scores FHA Loans Louisville Kentucky KHC First Time Home Buyer Credit Score

What is the minimum Credit Score Needed to Buy a House and get a Kentucky Mortgage Loan?

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 Credit Scores and Kentucky Mortgage Loans, Fannie Mae, FHA, FHA Loan in Kentucky, Fico Score, Kentucky VA Home Loans, USDA, USDA Rural Housing Guidelines, VA





Credit Score Requirements for FHA, VA, USDA and Conventional Loans in Kentucky
Credit Score Requirements for FHA, VA, USDA and Conventional Loans in Kentucky


5 POPULAR PROGRAMS THAT KENTUCKY HOME BUYERS USE TO PURCHASE THEIR FIRST HOME.

• At least 3%-5% down Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home.Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.Max Conventional loan limits are set at $510,400  for 2020 in Kentucky

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.
Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.
They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in an rural area

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern  Kentucky .There is a map link below to see the qualifying areas.
Thee is also a max household income limits with most cutoff starting at $86,400 for a family of four, and up to $115,000 for a family of five or more.USDA requires 3 years removed from bankruptcy and foreclosureThere is no max USDA loan limit.
FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score.
The current mortgage insurance requirements are kinda steep when compared to USDA, VA , but the rates are usually good so it can counteracts the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.
THe mi premiums are for life of loan like USDA.
FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure.Maximum FHA loan limits in Kentucky are set around $331,600 and below.
VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have an funding fee like USDA, but it is higher starting at 2% for first time use, and 3% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.
VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and no max loan limits in Kentucky
Most VA lenders I work with will want a 580 credit score, even though VA says in their guidelines there is  no minimum score, good luck finding a lender
VA requires 2 years removed from bankruptcy or foreclosure
Clear Cavirs needed to for a VA loan.
This type of loan is administered  by KHC in the state of Kentucky. They typically have $4500 to $6000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.
Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at KHC requires 660 credit score.
The max debt to income ratios are set at 40% and 50% respectively.apply online for a kentucky first time home buyer loan


Joel Lobb (NMLS#57916)
Senior  Loan Officer
Text/call 502-905-3708
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant 

 Equal Opportunity Lender. NMLS#57916

http://www.nmlsconsumeraccess.org/




Estimated Sale Price: $110,000
• Rate - 3.75%
• APR - 4.854%
• Down payment - $3850.00
• Principal & Interest - $500.20
• Insurance (estimated) - $75
• Taxes - $47.92
• PMI - $74.56
TOTAL PAYMENT INCLUDING
TAXES + INSURANCE:
$697.68 a month!
*Rates effective 01/16/2020, based on 740 FICO score and subject to change. ARP may vary. Loan terms are fixed rate 30 year loans and payment will not rise over the life of the loan. Not all applicants will qualify for advertised terms and conditions, must meet underwriting guidelines and are subject to credit review and approval. This does not constitute a commitment to lend. The disclosed rates, payments, homeowners insurance and mortgage insurance are estimates and may vary according to lender guidelines. Property taxes based on current assessed value with homestead and mortgage exemptions in place. Equal Housing Lender.

How Can I Pay Off My Mortgage Faster? Basic Concepts-----Louisville Kentucky Mortgage Refinance




How Can I Pay Off My Mortgage Faster? Basic Concepts

A 30 year mortgage, if paid monthly, is about 60% paid off in 24 years. If the borrower makes one extra monthly payment per year on a 30 year mortgage, the entire mortgage is paid off in 24 years. That's six years of vacations, helping your children with college, or bolstering your retirement accounts.
To understand this, let's look at how your mortgage payment is determined. We'll use a $200,000 mortgage at 6.0% for our example.
  • The monthly payment would be $1199.10.
  • The interest payment is $200,000 * .06 = $12,000/ 12 months = $1000
  • The principal payment would be $199. That's right. After one month you will have paid $1199.10 and your balance will have gone down $199.
  • A lower principal balance = a lower amount of interest. Each month the amount of interest paid goes down and the amount of principal paid goes up.
  • Anything extra
But who has an extra $1200 to make that extra payment? You do.
Call me today for your free refinance mortgage analysis..Rates are low and it is time to refinance
 I can be reached locally at 502-905-3708 or email me your questions to kentuckyloan@gmail.com

Kentucky FHA Mortgage Rates | Buying down your mortgage rate, and “2-1 buy-down.”

Kentucky FHA Mortgage--Pay points to buy down rate : What t is the difference

Gina Pogol
October 19th, 2010
If you spend much time reading about Kentucky FHA mortgages, you come across two terms: “Buying down” your mortgage rate, and “2-1 buy-down.” They sound similar, but they are completely different concepts.
Buying down your mortgage rate
This simply means getting a lower interest rate by paying higher fees. For example, you might be able to get a 30-year mortgage with a 5% interest rate at no cost — no loan fees, no appraisal fees, no nothing. Or you might be offered 4.5% with standard fees. But what if you want 3.5%? You’d have to pay extra — that extra cost is in the form of what are called “discount points.” Each point is one percent of the loan amount, and gets you a discount on your mortgage rate. It might cost you several extra discount points to lower your mortgage rate by a full percent.
Should you pay extra to lower your mortgage interest rate?
It depends on how much it costs and how long you expect to keep the mortgage. An Kentucky FHA mortgage calculator can help with this. For example, if you take out a $300,000 mortgage with no points at 4.75% and expect to keep you home for five years, does it make sense to pay points? A point costs you $3,000, and if it lowers your mortgage rate to 4.5%, the difference in your monthly payment is $45 ($1,565 – $1,520).  In five years, you would have saved $2,700. It doesn’t make sense to pay $3,000 to save $2,700. So what if you shop around for better Kentucky FHA mortgage rates and find a better lender that will drop your rate to 4.25%  for that same $3,000? Your new monthly payment is $1,476, your monthly savings increases to $89, and your savings over five years increases to $5,340. It may then be worth buying your rate down.
The 2-1 buydown
Mortgage rate buydowns are a different story. The FHA 2-1 buydown gets you an interest rate that is lower than the going rate for the first couple of years. So if the market rate on a 30-year mortgage is 4.75%, your interest rate the first year would be 2.75%, the second year it would be 3.75%, and then it would be 4.75% from year three on out. But it’s not like the lender just gives you that sweet deal for nothing. Rate buydowns require that you pay the difference upfront.
Huh?
Yep. Here’s an example of how the cost of a buydown is calculated.
Example: Standard 30-year Kentucky FHA Loan
$100,000 loan amount
8% interest rate = $8,000 a year in interest.
With the 2/1 buy-down the transaction would be as follows:
$100,000 loan amount
1st. year = 6% Interest rate = $6,000 in interest, a savings of $2,000
2nd. year = 7% interest rate = $7,000 in interest, a savings of $1,000
So the lender would charge you $3,000 now for the privilege of saving $3,000 over the next two years.
This is slightly oversimplified because the calculations are a bit more complicated, but it’s pretty much how it works. So unless you can get your seller to pay for it, there is little advantage in the 2-1 buydown for you.
The difference between buying your rate down and a 2-1 buydown is that the 2-1 won’t ever save you more than you pay for it. Buying your rate down can potentially save you more than the cost of the points.


  

For a Quick Easy Loan Approval:Have These Items Ready When You Apply For a Loan

For a Quick Easy Loan Approval:


Have These Items Ready When You Apply For a Loan

•Income Items

◦W2 forms for the last two years

◦Most recent pay stubs covering a 30 day period

◦Federal tax returns (1040's) for the last two years, if:

■you are self-employed

■earn regular income from capital gains

■earn sizable interest income, etc.

■earn more than 25% of your income from commissions or bonuses

■own rental property

■or are in a career where you are likely to take non-reimbursed business expenses).

◦Year-to-Date Profit and Loss Statement (for self employed)

◦Corporate or Partnership tax returns (if you own more than 25% of the business)

◦Pension Award letter (for retired individuals)

◦Social Security Award letters (for those on Social Security)

•Asset Items

◦Bank statements for previous two months (sometimes three) on all accounts. All pages, even if you don't think them important.

◦Statements for two months on all stocks, mutual funds, bonds, etc

◦Copy of latest 401K statement (or other retirement assets because they can count as reserves)

◦Explanations for any large deposits and source of those funds

◦Copy of HUD1 Settlement Statement on recent sales of homes

◦Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed

◦Gift letter (if some of the funds come as a gift from a family member - the lender will supply a blank form)

◦Gifts can also require:

■Verification of donor's ability to make the gift (bank statement)

■Copy of the check used to make the gift

■Copy of the deposit receipt showing the funds deposited into bank account or escrow

◦Note: many get their statements of various kinds over the internet and these are not always acceptable to lenders, especially when the printed version does not contain the borrower's name, account number, and the name of the institution.

•Credit Items

◦Landlord's name, address, and phone number (if you rent - for verification of rental)

◦Explanations for any of the following items which may appear on your credit report:

■Late payments

■Credit inquiries in the last 90 days

■Charge-offs

■Collections

■Judgments

■Liens

◦Copy of bankruptcy papers if you have filed bankruptcy within the last seven years

•Other

◦Copy of purchase agreement (if you have already made an offer)

◦To document receipt of child support (if you desire to show it as income)

■Copy of Divorce Settlement (to show the amount)

■Copies of twelve months canceled checks to document actualreceipt of funds

•FHA Loans

◦Copy of Social Security Card (or other documentation of social security number)

◦Copy of Driver's license

•VA Loans

◦Copy of DD214

•Refinances

◦Copy of your most recent monthly mortgage bill

◦The following cannot hurt to have ready, but are not as necessary as they once were:

Copy of Note on existing loan

Copy of HUD1 Settlement Statement on existing loan


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KHC's First Mortgage Government Loan Products