Friday, June 28, 2019

Kentucky FHA Mortgage Loans vs Kentucky USDA Rural Housing Loans Compared in 2019



 
FHA Loan Program for Kentucky


Rural housing loan program in Kentucky




Here are the important points about Kentucky USDA Rural Housing Loans:

  • USDA loan are only available in certain counties of Kentucky.
  • There are two types of USDA loans available: Direct and Guaranteed. 
  • 100% financing. No down payment 
  • USDA will go down to 580 score and uses and  automated underwriting pre-approval system called GUS-Guarantee Underwriting System. The GUS findings will dictate your loan pre-approval.
  • Kentucky USDA Rural Housing Income limits based on county and number of people in household. Currently $82,700 for a family of four and up to $109,200 for a family of five or more. 
  • Must be 3 years removed from bankruptcy and foreclosure
  • No purchase price limit
  • Upfront funding fee of 1% of loan amount paid to RD at closing 
  • Annual mi fee of .35% paid each month for life of loan. 
  • Takes on average 30-45 days to close. 
  • 30 year fixed rate is the only term available and rates are usually comparable to FHA and VA government mortgage insured rates.
  • Do not have to be a first time home buyer and can currently own another home if USDA deems the current living situation not suitable. 
  • Appraisal has to meet FHA minimum standards
  • You can buy a home with land on USDA Loans as long as the property does not have any agricultural characteristics or income producing capabilities. 
  • There is no set max acreage but the appraisal will dictate approval of property by USDA. 
  • You can only use USDA loans to purchase property or refinance an existing USDA loan
  • Pools are okay and homes in a flood zone are okay. This is a recent change 


FHA Loan Guidelines Kentucky

  • FHA loans can be made in any county of Kentucky. 
  • FHA loans require 3.5% down payment
  • FHA Mortgage terms are available in 30, 20, 15, 10 year terms.
  • Credit score down to 500 are acceptable but subject to investor approval.
  • Most lenders will want a 620 score, with some going down to 580 with conditions
  • FHA loans are pre-approved using DU, an online automated underwriting system that will dictate your loan approval conditions. 
  • FHA has max income limits in Kentucky with the maximum being $314,500 for most Kentucky Counties
  • There are no income limits on the household for FHA loans
  • There is a upfront mi premium of 1.75% and a monthly fee of .85% payable each month. 
  • If you finance over 90% of the homes value, the monthly mi factor of .85% is for life of loan. If less than 90%, 11 year term for annual mi fee.
  • FHA, USDA rates are really comparable on paper, no big difference except for the mi
  • FHA requires 3 years out on a short-sale or foreclosure
  • FHA requires 2 years out on Chapter 7 and 1 year out on a Chapter 13 with good clean history for the last 12 months with no lates. 
  • Not required to be a first time home buyer
  • Can refinance an existing FHA loan to another without appraisal, income, a processed call FHA streamline refinance








American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com
http://www.nmlsconsumeraccess.org/
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#57916http://www.nmlsconsumeraccess.org/
-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

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