I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
What is Kentucky Mortgage title insurance and why do I need it?
| What is title insurance and why do I need it for a Kentucky Mortgage? |
|
If you've ever purchased a home before, you may already be familiar with the benefits and terms of title insurance. But if this is your first home loan or you are refinancing, you may be wondering why you need another insurance policy.
The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and especially your mortgage lender, want to make sure the property is indeed yours: That no individual or government entity has any right, lien, claim, or encumbrance on your property. The function of a title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer are fully protected. Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, and others who have an interest in real estate transfer. Title companies typically issue two types of title policies: 1) Owner's Policy. This policy covers you, the homebuyer.
2) Lender's Policy. This policy covers the lending institution over the life of the loan.
Both types of policies are issued at the time of closing for a one-time premium, if the loan is a purchase. If you are refinancing your home, you probably already have an owner's policy that was issued when you purchased the property, so we'll only require that a lender's policy be issued. Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or, more likely, the information contained in the company's own title plant. After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property. The fact that title companies try to eliminate risks before they develop makes title insurance significantly different from other types of insurance. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen future event, say a fire, accident or theft. On the other hand, the purpose of title insurance is to eliminate risks and prevent losses caused by defects in title that may have happened in the past. This risk elimination has benefits to both the homebuyer and the title company. It minimizes the chances that adverse claims might be raised, thereby reducing the number of claims that have to be defended or satisfied. This keeps costs down for the title company and the premiums low for the homebuyer. Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are slim indeed. |
Fill out my form!
Kentucky USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012
Kentucky USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012!
August 21, 2012
USDA Mortgage Purchase and Refinance Funding Update for Kentucky Homeowners and Buyers
This announcement is to inform you of the current commitment
authorities available for the Single Family Housing Guaranteed Loan Program
(SFHGLP) loans.
Due to a change in Fiscal Year (FY) 2013 fee structure which
goes into effect October 1, 2012, Lenders are urged to check with States to
determine application processing time frames before underwriting applications.
USDA Mortgage Refinance Funds:
FY (fiscal year) 2012 USDA Mortgage refinance funds have been
exhausted.
We expect to run out of refinance commitment authority no later
than Monday, August 20, 2012. When USDA Mortgage refinance commitment
authority is exhausted, refinance loan requests for which a conditional
commitment (Form RD 1980-18) has not been issued will be returned to the lender
and require underwriting under the fiscal year 2013 fee structure. The FY
2013 fee structure will require a one-time upfront guarantee fee of 2 percent
and an annual fee of 0.40 percent. At this time, the Agency will not
issue conditional commitments “subject to” receipt of FY 2013 funding or
commitment authority.
USDA Mortgage Purchase Funds:
Lenders are urged to be cognizant of the differing backlogs and
processing time frames from state to state. If it is determined
unrealistic that the State will be able to review the USDA loan guarantee
application and issue a conditional commitment before September 30, 2012,
lenders are urged to underwrite the USDA Mortgage application at the FY 2013
fee structure. The FY 2013 guarantee fee structure will require purchase
and refinance loans to carry a one-time upfront guarantee fee of 2 percent and
an annual fee of 0.40 percent.
In addition, if the state where the property is located is
experiencing longer processing time frames, lenders should advise the applicant
accordingly when discussing interest rate locks and potential loan closing
dates.
Joel
Lobb (NMLS#57916)
Senior
Loan Officer
502-905-3708
cell
502-813-2795
fax
Key Financial Mortgage Co. (NMLS #1800)
107 South Hurstbourne Parkway
Louisville, KY 40222
Fill out my form!
Helpful Links
Helpful Links
Fill out my form!
- Fannie Mae Corporation
- Fannie Mae Foundation
- Federal Housing Finance Board
- Housing Assistance Council
- National Low Income Housing Coalition
- Rural Community Assistance Corporation
- Rural LISC
- PathStone
- Rural Policy Research Institute
- Self-Help Housing Hub
- United States Department of Agriculture
- USDA Rural Housing Service
- USDA Rural Information Center (RIC)
- United States Department of Housing and Urban Development
Fill out my form!
Foreclosures requirements for Kentucky FHA Mortgages 2012
Foreclosures requirements for Kentucky FHA Mortgages 2012
o A borrower with a foreclosure or deed-in-lieu of foreclosure within the most recent
Chapter 13 Bankruptcies
o Document at least one year into the payout plan has elapsed
Foreclosures requirements for Kentucky FHA Mortgages 2012
Fill out my form!
Foreclosures requirements for Kentucky FHA Mortgages 2012
Foreclosures
o A borrower with a foreclosure or deed-in-lieu of foreclosure within the most recent
three years is ineligible for Kentucky FHA Mortgage financing..
Chapter 7 Bankruptcies
o A borrower with a Chapter 7 Bankruptcy discharged less than two years prior to
loan application is ineligible for Kentucky FHA Mortgage Financing.
Chapter 13 Bankruptcies
o Document at least one year into the payout plan has elapsed
o Document all required payments have been made on time
o If borrower is still in repayment, obtain court permission to enter into the new
mortgage
o Include Chapter 13 payment in the debt ratio if the BK is not paid in full
Foreclosures requirements for Kentucky FHA Mortgages 2012
Fill out my form!
CoreLogic Says Louisville Home Values On the Upswing
CoreLogic Says Louisville Home Values On the Upswing
Fill out my form!
CoreLogic with their home price index, says that nationally home values are up 2.5%. They are also predicting a 2.0% increase for July. Here’s what they wrote about the Louisville real estate market.
Home Prices in Louisville-Jefferson County IncreaseIn Louisville-Jefferson County, home prices, including distressed sales, increased by 2.0 percent in June 2012 compared to June 2011 and increased by 2.2 percent* in May 2012 compared to May 2011. Excluding distressed sales, year-over-year prices increased by 2.1 percent in June 2012 compared to June 2011 and increased by 2.3 percent* in May 2012 compared to May 2011.
Kentucky, as a state, was near the bottom of the rankings nationally with -0.3% decrease for the month. Arizona performed the best with a 13.8% increase. Alabama the worst with a -4.8% decline.
Fill out my form!
Louisville homes for sale inventory dropping; 11 percent drop in past 12 months
Louisville homes for sale inventory dropping; 11 percent drop in past 12 months
Fill out my form!
Louisville homes for sale inventory dropping; 11 percent drop in past 12 months
After a (very) depressed three years, the housing market is showing signs of life in 2012.
Today, I’m struck with a story highlighting the metro markets with the largest drop in home inventory.
When I clicked on the story and quickly scrolled to find the data, I saw that Oakland, California topped the list with an incredible 59.3 percent drop in home inventory in just one year!
Louisville sellers are happy that their homes are selling. But that also means fewer home options are available to buyers.
We must always remember that each market behaves differently, and cities in California that are now seeing homes fly off the shelf, at greatly reduced prices, I must add, once saw those same homes languish on the market for years at a time with very little activity.
Here in Louisville, our market follows the tortoise model from The Tortoise and the Hare fable. From 1980 until 2008, Louisville homes saw an average yearly appreciation of 4.40 percent. It was almost like clockwork.
For much of the last three decades, homes in Louisville appreciated about 4%. Then, we saw declining values begin in 2006 and bottom out in 2010.
There were signs in 2006 that things might be heading in the wrong direction, and values started to trail off. A market correction was coming, and by 2009 the recession was upon us.
- -0.29 percent in 2009
- -2.74 percent in 2010
- -0.61 percent in 2011
- -0.49 percent thru Q1 2012.
Pricing changes greatly affect housing inventory. The less perceived worth of the home, the less likely a homeowner will put it up for sale. Also, to a lesser extent, houses currently for sale are more likely to remain unsold.
Now back to the present, home sales are up, home prices are starting to return to pre-recession levels and we see that home inventory has begun to decline.
As of this moment, there are 4,607 homes for sale in Louisville. This time last year, there were 5,171 active listings, which means we’ve sold 10.9 percent of our inventory in the past 12 months.
This is a healthy modification, which should allow many homeowners who’ve been content to sit on the sidelines, to now get in the game.
As added incentive, there are signs that home prices are actually starting to rise. The median sold price for Louisville homes this July was $144,500. During July of last year it was $138,100.
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*
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
Fill out my form!
What does it take to buy a house?
What does it take to buy a house?
Fill out my form!
What does it take to buy a house?
Mortgage rates are near historic lows. Home prices have crashed from their highs four years ago. It seems now would be a great time to buy a home, especially since rents are rising.
There's just one problem. Qualifying for a mortgage is harder than it has ever been.
Back during the housing boom, mortgage brokers would write a mortgage often for little or no money down. If you had a checkered past when it came to employment, no-documentation loans were available. You told them how much money you made and they took your word for it.
As a result many consumers purchased homes they really couldn't afford. It was one of the catalysts of the credit meltdown.
Cautious lenders
Now lenders are cautious -- maybe overly cautious. According to Kiplinger, they want to see the “three Cs.” They look closely at your credit history, they examine your capacity to repay the loan, and verify your collateral.
That means to buy a house, you need a strong credit score -- 720 or above. You need a good job and the prospect that it will continue. And you need to bring a large chunk of cash to the settlement table. In most cases, lenders want borrowers to put down at least 20 percent of the purchase price.
With the average home costing over $180,000 that can be a lot of money. Just a few years ago buyers could put down five percent or less. As late as 2007 some lenders were offering loans at 105 percent of the purchase price. Those days are long gone.
Even if you happen to have 20 percent of the purchase price in cash, that's no guarantee you will be approved for a mortgage. The lender wants assurances that you will be able to continue making the house payments each month. They look at your present job and what your prospects are for the future.
They also look at the house itself. Let's say the house you want is listed for $225,000 but you negotiate the price down to $209,000. You may feel like you have gotten a great deal.
Tougher appraisals
But then an appraiser looks at the house, as well as comparable houses in the neighborhood that have recently sold. The appraiser comes back with a market price of $199,000. Suddenly the lender is unwilling to write a mortgage for $167,200, 80 percent of the purchase price.
Before considering the purchase of a home, there are three things you should do. First, pay down credit card and other debt. That will reduce the amount of money you can borrow.
If you are thinking about financing a new car, wait. A car payment will reduce the amount of money you can borrow for a home.
Take steps to improve your credit score. Good credit not only will help you get the loan, a high score will help you get the lender's preferred rate.
Get a real estate agent
Finally, before you start your search for a home work with a real estate agent -- what the industry calls a “buyer's agent.” It costs you nothing. If you buy a house, they spit the commission -- paid by the seller -- with the listing agent.
Even though it costs you nothing, you have someone looking out for your interests. They know the neighborhood, they know whether the property is overpriced, they know the ins and outs of financing and they can guide you through the process. Generally a good buyer's agent can help you shop for the best mortgage, something many homebuyers simply don't do when they go it alone.
"Deciding on a mortgage is likely the most important financial decision consumers will ever make, yet borrowers are more often than not taking the first offer that comes their way, failing to fully capitalize on low rates," said Doug Lebda, founder and CEO of LendingTree. "It is important for borrowers to understand that they have the power to choose which loan and which lender to use. It is acceptable to negotiate with lenders and to walk away if you are not fully satisfied. Consumers need to be engaged in the mortgage process to secure the best deal."
And a good buyers agent will do a lot of that work for you. They can also streamline your search, showing you just the homes that you can afford and that meet your criteria.
It's a lot more difficult to purchase a home than it used to be. Buyers need all the help they can get.
Story provided by ConsumerAffairs.
Fill out my form!
KHC Mortgage Interest Rates
Interest Rates
Fill out my form!
KHC Mortgage Interest Rates
8/20/2012, 10:00 a.m. ET
Rates subject to change without notice.
Secondary Market Interest Rates (Purchases and Refinances):
45-Day Lock
Loan Type | Rate without Down Payment Assistance | Rate with Down Payment Assistance |
|---|---|---|
FHA, VA & RHS
| 3.375% | 3.875% |
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 not applicable due to rate restriction | 4.000% | 4.250% |
Conventional
| 4.000% | NOT AVAILABLE Borrower must use own funds or gift funds |
* LTV = Loan to Value
Fill out my form!
Kentucky USDA Rural Housing Update
August 17, 2012
Purchase and Refinance Funding Update
This announcement is to inform you of the current commitment authorities available for the Single Family Housing Guaranteed Loan Program (SFHGLP) loans.
Due to a change in Fiscal Year (FY) 2013 fee structure which goes into effect October 1, 2012, Lenders are urged to check with States to determine application processing timeframes before underwriting applications.
REFINANCE FUNDS:
FY 2012 refinance funds are nearly exhausted.
Currently, the balance of available refinance commitment authority is under $15 million. We are issuing refinance commitment authority at a pace of approximately $10 to $15 million per day. We expect to run out of refinance commitment authority no later than Monday, August 20, 2012. When refinance commitment authority is exhausted, refinance loan requests for which a conditional commitment (Form RD 1980-18) has not been issued will be returned to the lender and require underwriting under the FY 2013 fee structure. The FY 2013 fee structure will require a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent. At this time, the Agency will not issue conditional commitments “subject to” receipt of FY 2013 funding or commitment authority.
PURCHASE FUNDS:
Lenders are urged to be cognizant of the differing backlogs and processing timeframes from state to state. If it is determined unrealistic that the State will be able to review the loan guarantee application and issue a conditional commitment before September 30, 2012, lenders are urged to underwrite the application at the FY 2013 fee structure. The FY 2013 guarantee fee structure will require purchase and refinance loans to carry a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.
In addition, if the state where the property is located is experiencing longer processing timeframes, lenders should advise the applicant accordingly when discussing interest rate locks and potential loan closing dates.
The Kentucky USDA program has changed. Effective October 1, 2012 it will no longer be subsidized by the US Taxpayer.
Effective October 1, 2012, USDA mortgage insurance rates are:
For purchases, 2.00% upfront fee paid at closing, based on the loan size.
For refinances, 2.00% upfront fee paid at closing, based on the loan size.
For all loans, 0.40% annual fee, based on the remaining principal balance.
For refinances, 2.00% upfront fee paid at closing, based on the loan size.
For all loans, 0.40% annual fee, based on the remaining principal balance.
A $100,000 loan would require a $2,000 mortgage insurance payment at closing, and $33.33 of mortgage insurance paid monthly.
Loan guarantee
requests submitted to RHS by September 30, 2012, in which a conditional
commitment has not been issued, will be subject to the new, October 1, fee
structure. Lenders are
encouraged to plan for the changes because, as mentioned previously, some
RHS offices are experiencing extreme backlogs in loan guarantee delivery.
Changes to RHS Guarantee and Annual Fee
Effective on October 1, 2012, RHS will revise
the Up-Front Guarantee Fee and Annual Fee structure as follows:
|
Up-Front
Guarantee Fee
|
Through
Sept.
30, 2012
|
Effective
Oct. 1, 2012 |
|
Purchase Transactions (no change)
|
2%
|
2%
|
|
Refinance Transactions
|
1.5%
|
2%
|
|
Annual
Fee
|
Through
Sept.
30, 2012
|
Effective
Oct. 1, 2012 |
|
Purchase Transactions
|
.30%
|
.40%
|
|
Refinance Transactions
|
.30%
|
.40%
|
With the Kentucky USDA Rural Housing Program, your home must be located in a rural area. This is based on the most recent US Census. Follow this link to check a home’s eligibility;
-The USDA has no down payment requirement. You can finance 100% with a USDA loan.
the Kentucky USDA Rural Housing Program can be used by first-time buyers and repeat buyers.
USDA will let you finance your Upfront Mortgage Insurance payment into your loan size. For example, if you bought a home for $100,000 and borrowed the full $100,000 from your lender, your Upfront Mortgage Insurance would be $2,000. You could then raise your loan size to $102,000.
The USDA / Rural Housing Program offers 30-year fixed rate mortgages only. There is no 15-year fixed rate mortgage.
USDA loans allow gifts from family members and non-family members. You will need a gift letter to accompany your loan application.
There is no minimum score, but 640 is generally regarded to get an Automated Approval through their online underwriting system named GUS
If you are a W-2 employee, you are eligible for USDA financing immediately; you don’t need a job history. If you have less than 2 years in a job, however, you may not be able to use your bonus income for qualification purposes.
Self-employed persons can use the USDA Rural Housing Program. If you are self-employed and want to use USDA financing, as with FHA and conventional financing, you will be asked to provide 2 years of federal tax returns to verify your self-employment income.
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*
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
Fill out my form!