Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: October 2021

Unlike Kentucky FHA loans, conventional loans are 𝙉𝙊𝙏 backed by a government agency, but they do follow specific guidelines set by Conventional Mortgage Kentucky Fannie Mae and Freddie Mac, federally backed companies that buy and guarantee mortgages.

𝗧𝗵𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝘁𝗵𝗶𝗻𝗴 for you to know is that conventional loans have many benefits, including:

Down payments as low as 3%

No upfront mortgage insurance premium

Monthly mortgage insurance that automatically falls off once the home has been paid down to 78% of the home’s value

The ability to choose between an adjustable-rate or fixed-rate mortgage with different term lengths

Use on different property types, including primary residences, second homes, and investment properties

✔ Maximum Loan Limits set each year.

✔ PMI based on credit score and equity position

Kentucky Fannie Mae Loans versus Kentucky FHA Loans

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

The differences below:

Kentucky Fannie Mae Loans

Kentucky FHA Loans

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)

FHA loans (Identity of Interest)

Purchase is the principle residence of another Family Member
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
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.