Showing posts with label FHA 203k Kentucky FHA Loan Guidelines. Show all posts
Showing posts with label FHA 203k Kentucky FHA Loan Guidelines. Show all posts

Kentucky FHA 203(k) Home loan programs

 Our Standard and Limited Kentucky FHA 203(k) Home loan programs help you deliver financing that fits your borrowers' unique home renovation needs. That starts with understanding which one is the right choice for each borrower.


KENTUCKY FHA 203K RENOVATION MORTGAGE LOANS AND THEIR DIFFERENCE


Have Questions or Need Expert Advice? Text, email, or call me below:





Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916


American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364



Text/call: 502-905-3708
fax: 502-327-9119
email:
 kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approvalnor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).

Kentucky FHA Loan and Repairs- Do you know that appraiser required repairs may be financed into an Kentucky FHA loan?



Do you know that appraiser required repairs may be financed into an KY FHA loan?

Costs of repairs can be added to the sales price before calculating the mortgage amount if:

• The repairs are required by the Appraiser to meet HUD’s MPR;
• The repairs are paid for by the Borrower; and
• The sales contract or addendum identifies the Borrower as the party responsible for payment and
completion of the repairs. Up to the maximum allowable amount. Seller can pay for additional repairs.
The maximum amount of repair costs that may be added to the sales price is the lesser of:

• The amount by which the value of the Property exceeds the sales price;
• The Appraiser’s estimate of repairs; or
• The amount of the contractor’s bid.

See FHA Handbook 4000.1. II.A.2.a https://www.allregs.com/tpl/Main.aspx

Example 1:

$105,000 Value
$100,000 Sales Price
$5,000 Appraiser Required Repairs
$105,000 Max Cost of Acquisition (Value)
X 96.50
$101,325 Base Loan Amount
+ $1,773.19 UFMIP
$103,098 Total Loan Amount
Borrower would pay up to $2,500 in contingency and funds are returned when repairs have been completed
and inspected. (See Escrow Limits below)

Example 2:

$105,000 Value
$100,000 Sales Price
$10,000 Appraiser Required Repairs
$105,000 Max Cost of Acquisition (Value)
X 96.50
$101,325 Base Loan Amount
+ $1,773.19 UFMIP
$103,098 Total Loan Amount

Borrower would pay the $5,000 in repairs that cannot be included into the loan amount. Borrower would also pay up to $5,000 (50% of 10,000 required repairs) in contingency and funds are returned when repairs have been completed and inspected .

The sales price of the property is $100,000 and the appraised value is $105,000. If the appraiser requires repairs in the amount of $10,000, $5,000 can be added to the sales price before calculating the mortgage amount. This is because the value came in at $105,000. The remaining $5,000 required repairs can be paid at closing by buyer or seller.

Escrow Holdbacks: Escrow holdbacks are used to facilitate loan closings for properties that are ready for occupancy but that require minimal completion or repair. The buyer or seller is required to establish a cash  escrow to ensure the completion of the required repairs. The proceeds of the cash escrow are held in an escrow account




Limits: Non HUD REO Transactions

• Existing Construction - Repair Items: Minimum amount to complete the escrow will be 150% (1.5
times) of the estimated cost to complete or cure per appraisal plus final inspection fee. Contingency
cannot be added in the costs of acquisition.

FHA HUD REO Purchases

• $10,000 for FHA HUD REO Purchases (not including 10% contingency) , total escrow amount must not exceed $11,000 including the 10% contingency




Documents Required: Minor Repair Items

• Purchase agreement must indicate who is responsible to provide the funds required for repair escrow. If funds are to be provided by the borrower(s), verification of sufficient funds from acceptable sources is required.
• The appraisal page 2 must indicate "subject to the following repairs or alterations on the basis of a
hypothetical condition that the repairs or alterations have been completed."
• The appraiser/appraisal must provide a list of items that are subject to repair and an estimated cost to cure. If the appraiser indicates the cost of such items cannot be estimated, a licensed/certified
contractor bid is required for estimate of repair costs.
Repairs and Improvements: Repairs and improvements, or any portion paid by the borrower that cannot be financed into the mortgage are part of the borrower's total cash requirements
Source of Funds: If escrow funds are being supplied by the buyer/borrower, source of funds must be verified and must meet eligible source of funds guidelines and requirements for the loan program. AUS must be run with the correct escrow holdback amount established and entered so that asset verification requirements are accurate


Image result for fha repair escrow






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HUD Streamline Your Louisville Kentucky FHA Mortgage

HUD Streamline Your Louisville Kentucky FHA Mortgage

HUD   >   Program Offices   >   Housing   >   Single Family   >   Buying   >   HUD Streamline Your FHA Mortgage
Streamline Your FHA Louisville KY Mortgage
FHA has permitted streamline refinances on insured mortgages since the early 1980s. “Streamline refinance” refers only to the amount of documentation and underwriting that the lender must perform, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are:
 -  
The mortgage to be refinanced must already be FHA insured.
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The mortgage to be refinanced should be current (not delinquent).
 -  
The refinance results in a lowering of the borrower's monthly principal and interest payments, or, under certain circumstances, the conversion of an adjustable rate mortgage (ARM) to a fixed-rate mortgage.
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No cash may be taken out on mortgages refinanced using the streamline refinance process.

Lenders may offer streamline refinances in several ways. Some lenders offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction. FHA does not allow lenders to include closing costs in the new mortgage amount of a streamline refinance. Investment properties (properties which the borrower does not occupy as his or her principal residence) may only be refinanced without an appraisal. 
Detailed instructions to the lenders are contained in HUD Handbook 4155.1.6.C.
Contact your lender to get started. You can find your lenders contact information by clicking on ourList of approved lenders.

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