Showing posts with label Assistance Program - Housing - Louisville Ky. Show all posts
Showing posts with label Assistance Program - Housing - Louisville Ky. Show all posts

Can you get a Kentucky Mortgage Loan with a 600 credit score in 2014?

In order to get a Kentucky FHA Mortgage Loan with a 600 credit score, you must meet the following requirements to qualify.

Note. some lenders require additional credit overlays that may affect your mortgage loan approval.

 Credit Score Basics : Credit score is one of the most important factors when applying for a mortgage loan.What are most important factors and shares excellent tips on how you can keep a high credit score to get approved for a mortgage.

3 active trade line reporting to the bureaus (rent can count as one).

43% max debt ratio

2 most recent bank statements with 2 months piti in reserve

No bankruptcies or foreclosures in last 3 years  

Verifiable rent history from management company or cancelled checks if you rent from individual for last 12 months with no 30 day lates

3.5% down payment required. Cannot do the Welcome Home Program

***We require a 620 credit score for Kentucky USDA Loans and a 620 credit score for VA loans.
Fannie Mae Mortgage Loans require a 620 credit score. If mortgage insurance is needed for Fannie Mae loans, the minimum credit score is higher and subject to investor  mi approval.

Joel Lobb
Senior  Loan Officer

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346

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KHC Down payment Assistance for Kentucky First time home buyers

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KHC Down payment Assistance for Kentucky First time home buyers

Down payment Assistance Program (DAP)

1. Make sure the property is existing (previously occupied) and below the purchase price
limit of $195,700.  If not, HOME DAP is eliminated.  Proceed to question 3.

2. To ensure HOME DAP eligibility, ensure the following requirements are met:
• Household income below the HOME DAP income limits, available in the MRB
Program Guide, page 10.
• Borrower requires a minimum of $1,000 assistance, up to a max of $4,500, based on
need.  Must use their own liquid funds in excess of two months’ PITI before they
look to HOME DAP.
• Must go maximum allowed LTV on the first mortgage.
• Property must pass HQS inspection (Lead Paint).
• Cannot be used in conjunction with REO properties or FHA 203K streamline
If all of these are met, you must determine how much HOME DAP can be accessed.
This is total cash needed to close, minus seller concessions, minus borrower funds in
excess of two months’ PITI.  Whatever remains, rounded to the nearest $100, is the
HOME DAP loan amount.

3. Does the borrower or property meet one of the three Neighborhood DAP qualifiers?  
• Is the property being purchased as an REO, foreclosure, bank-owned, or
short sale property?
• Has the property been marketed for six months or more?
• Has the borrower experienced a foreclosure, short sale, or deed-in-lieu in the
past and now credit qualifies?
If yes to any of these, the borrower qualifies for the $10,000 Neighborhood DAP.
Funds can be used toward the down payment or for closing costs and prepaids.  Loan is
amortized over 30 years at 1 percent interest rate.  The borrower must qualify with
second mortgage payment.  If not, proceed to Regular DAP in question 4.

4. Borrower is eligible for Regular DAP up to $6,000 in $100 increments with a minimum
$500 loan amount.  Regular DAP is amortized over ten years at 6 percent.  Must go to
maximum LTV allowed on first mortgage amount.  Borrower must qualify with second
mortgage payment.

First Mortgage Quick Reference Card

To successfully originate KHC mortgages, begin with prequalified applicants and
properties that meet FHA, VA, RHS, or Conventional guidelines.  They must be
purchasing or refinancing a single-family, one-unit, owner-occupied property, in
Kentucky.  If so:

1. Make sure the property or refinance is below $243,000.

2. Make sure they meet KHC’s simple credit overlays:

• 640 credit score for FHA, VA, and RHS.
• 680 credit score for Conventional.
• Max ratio caps of 40% / 45%.
• AUS Approval required, except on RHS.

3.Does the borrower require down payment and closing costs assistance with their
FHA, VA, or RHS first mortgage? If yes, proceed to the DAP

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*