Kentucky Fannie Mae Loans versus Kentucky FHA Loans

Kentucky Fannie Mae Loans versus Kentucky FHA Loans

Kentucky FHA Loan Guidelines for Credit Score, Income, Bankruptcy and Foreclosure Shot Sale

fha vs fannie mae loans

FHA vs Conventional Infograhic
Non Occupant Co-Borrower for Fannie Mae and FHA Loans. 

The differences below:
Kentucky Fannie Mae Loans
  • Allowed on all Purchases up to 95% LTV
  • Allowed on all Refinances including Cash out
  • Does not have to be a Family Member

Kentucky FHA Loans
  • Limited to 75% LTV.  LTV can be increased to max 96.5% LTV provided:
  1. Non occupying borrower is not the seller in the transaction
  2. Property is not a 2-4 unit property
  3. Has to be a family member
  • Not allowed on Cash out Refinances
  • Non Occupant Co Borrowers must either be United State Citizens or have a Principal Residence in the United States.
Non arms Length / Identity of Interest for FHA and Fannie Mae Loans In KY
Fannie Mae Loans(non arms length)
  • Underwriter must confirm transaction is not a bail out
  • Gift of Equity is allowed
  • No additional restrictions apply

FHA loans (Identity of Interest)
  • Gift of Equity is allowed
  • LTV limited to 85% unless
  1. Purchase is the principle residence of another Family Member
  2. Borrower has been a tenant in property for 6 months predating the sales contract.  A lease or other written evidence is needed to verify occupancy
  3. Borrower is an employee of the Builder of the property
  • If a Family Member is providing secondary financing for the transaction, additional guidelines apply.  See HUD 4000.1 II.A.4.(3) for additional guidelines.

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Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119