Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Frequently Asked Questions for Kentucky First Time...

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Frequently Asked Questions for Kentucky First Time...:  Kentucky First Time Homebuyers buying their First Kentucky Home Information Below for 2018 How are interest rates determined...

Good Neighbor Next Door Program offered thru HUD officer next door program in Louisville Kentucky HUD Homes for $100 Down

The Good Neighbor Next Door Program offers HUD owned single family (one-unit) homes to eligible participants at a 50% discount. Law enforcement officers, teachers, firefighters and other emergency medical technicians who meet all other requirements of the program are all eligible to participate in this program.
Program Summary	•	Borrower is a full-time law enforcement officer, teacher or firefighter/emergency medical technician
	•	A 50 percent discount from the list price is provided in the form of a forgivable second lien
	•	The second mortgage is a mortgage and note payable to and provided by HUD in the amount of the difference between the list price of the home and discounted selling price
		- The term of the note is 36 months from the date of owner-occupancy - Refinance restrictions may apply
	•	One-unit residential properties
	•	Borrower cannot own any other residential property within 12 months of the offer date
	•	None of the borrowers could have ever utilized this program in the past
	•	The following must be detailed on the purchase contract with HUD
		- 50% discount - $100.00 downpayment required - Borrower may finance closing costs Qualifications 1. You must be able to qualify for an FHA mortgage.  If you don’t have a letter of prequalification and would prefer to check your credit score first yourself, you can get a free credit report by following the link that’s found on the Federal Trade Commission’s website. 2. You or your spouse cannot have owned a home in the previous year. Your name can’t be on a deed in the United States. 3. You must meet the occupational requirements below: Good Neighbor Next Door Qualifications Teachers, Counselors, and Administrators State certified to teach any grades pre-K through 12 Teach in a private school in the area where the home is located Teach in the public school district where the home is located You or your spouse have not had your name on a real estate deed for the past 12 months You can get a letter of mortgage prequalification or proof of funds before the submitting an intent to purchase You can provide a refundable earnest money check for 1% of the home’s listed price. It needs to been in the form of a cashier’s check or money order made out to the U.S. Department of HUD. You intend to teach for at least one more year Firefighter/Emergency Medical TechniciansYou may participate in the Good Neighbor Next Door program as a Firefighter/Emergency Medical Technician if you are employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located. You or your spouse have not had your name on a real estate deed for the past 12 months You can get a letter of mortgage prequalification or proof of funds before the submitting an intent to purchase You can provide a refundable earnest money check for 1% of the home’s listed price. It needs to been in the form of a cashier’s check or money order made out to the U.S. Department of HUD. Law EnforcementYou may participate in the Good Neighbor Next Door program as a law enforcement officer if you are employed full-time by a law enforcement agency of the federal government, a state, a unit of general local government, or an Indian tribal government; and, in carrying out such full-time employment, you are sworn to uphold, and make arrests for violations of, federal, state, tribal, county, township, or municipal laws. You or your spouse have not had your name on a real estate deed for the past 12 months You can get a letter of mortgage prequalification or proof of funds before the submitting an intent to purchase You can provide a refundable earnest money check for 1% of the home’s listed price. It needs to been in the form of a cashier’s check or money order made out to the U.S. Department of HUD. Is the Good Neighbor Next Door a legitimate program? Yes, this a United States Department of Housing and Urban Development program that has been created for the benefit of civil servants when purchasing a designated HUD home. If you want verification you can visit HUD’s website. The program has been created for teachers, firefighters, police officers, and EMT’s. What does it mean that these houses are 50% off? HUD has their homes appraised based on their current condition. The homes are discounted from this appraised price.   What is a HUD home? HUD acquires properties from insured lenders who have foreclosed FHA loans. Are HUD homes bad homes? Just because it’s a HUD home doesn’t mean it’s a bad home. The only reason it’s a HUD homes is because it has gone through foreclosure. Do all HUD homes qualify for the Good Neighbor Next Door program? No. Only the homes that are designated by HUD are eligible. How often do Good Neighbor Next Door homes become available? Every day homes are listed some where in the country. Sign-up on the notification list so that you will be notified when a home becomes available in your community. How long do these homes stay on the market? These homes are only listed for a seven day period. If they don’t sell through the Good Neighbor Next Door program then they will go to the general HUD list at full list price. Do I have to live in the Good Neighbor Next Door home that I purchase for a certain length of time? To receive the full 50% discount you agree to live in the home for three years. What if I move out of the house before three years? You will still receive a discount, but it will be prorated according to how long you live in the house. If I own the house, how can HUD enforce how long I own the home? HUD will require that you sign a silent second mortgage in the amount of the discount. There is no monthly payment or interest on the second mortgage. HUD uses the second to track your homeownership. If you sell your home before the three-year anniversary date then a prorated portion of the second mortgage will be due at closing. This second mortgage will automatically drop off after three years. My name has been on a deed in the past year, do I still qualify? No, neither your name nor your spouse’s name can have been listed on any real estate deed in the United States in the past year. Are there any other benefits associated with the Good Neighbor Next Door program? Yes. If you get an FHA loan HUD will allow you to finance in all of your closing costs, move-in for only a $100 down payment, and finance certain home repairs. How do I submit a bid? You can enter on this website. A qualified broker will call you and give you access to the home, assist you with locating a lender, and monitor inspections & the closing process. We will work with that broker to make sure the closing process goes smoothly. Who pays the real estate broker? For the Good Neighbor Next Door program, HUD requires that the buyer pay the real estate commission. If you get an FHA loan HUD will allow you to roll the commission into your mortgage. On each property that’s listed on this website there is an approximate mortgage payment. This payment includes the financed commission. Can I bid higher or lower than the list price? No. In this program HUD will only allow you to submit “an intent to purchase” for full list price. This list price will be discounted by 50% at closing. Everyone who bids will have identical bids. If there is more than one person bidding on a home, how does HUD determine who wins the house? A computer will randomly decide who wins. Can you bid on more than one home? You can purchase only one home, but to increase your chances of winning one of the houses you can submit bids on different houses. HUD limits people to only one Good Neighbor Next Door home in their lifetime. How much earnest money is required? HUD requires that you give your broker a cashier’s check or money order for 1% of the home’s list price. On a $100,000 home your earnest money will be $1,000. HUD has a minimum earnest money requirement of $500 and a maximum $2,000. I thought the down payment was only $100, what’s this 1% of list price? The 1% earnest money is refundable at closing or if you are not selected as the winner of a home. If you are selected as the winner of a Good Neighbor Next Door home and if you want to finance in all of your closing costs with only a $100 down payment, then you could receive back a check at closing. This check will be your earnest money minus the $100 down payment.   What if there are significant repairs required on a home and I don’t have the cash to fix it? You are able to get a specific type of FHA loan (203K) that will allow you to finance up to $35,000 worth of home repairs into your mortgage. Can I use a Good Neighbor Next Door homes as an investment? Yes, but only if you occupy the home and don’t own any other real estate. After three years you can sell the home, realize any increases in value, and pay off the discounted mortgage that you have. Since this is your principal residence you can claim a capital gains exemption and not be taxed on gains. Consult your CPA for details. What if my employment changes before the three years is up? After you close your discount will not be in jeopardy. What do I do next? What is the process?  1. Fill out the ”Entry Form” and we will contact you.  Everyone is required to have a letter of prequalification or proof of funds before submitting an “intent to purchase.” You may use any lender that offers FHA financing. If you would like us to help you through the process fill out this questionnaire and we will have a lender get in contact with you. Often, people can get a letter of prequalification within hours of contacting one of the lenders we recommend. 2. View the home. If you don’t have time to view the home you may still have the opportunity to submit your name in the lottery and if selected inspect the home then. 3. Get either a cashier’s check or money order for 1% of the home’s listed price. 4. Decide on one or more homes to submit your intent to purchase.
	Joel Lobb (NMLS#57916) Senior  Loan Officer 502-905-3708 cell KKentucky HUD Homes for $100 Down
To search for available HUD homes for sale, please click here To find out more about the Good Neighbor Next Door program, please click here.

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Kentucky Fannie Mae HomePath® program for 2014

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The Kentucky Fannie Mae HomePath® program offers borrowers the opportunity to purchase a Kentucky Fannie Mae owned property with a low down payment and no appraisal or mortgage insurance. For a list of eligible properties, visit the HomePath website at www.homepath.com. As little as 3-5% down No appraisal or mortgage insurance1 is required Credit scores for conforming balances as low as 620 for LTVs up to 80% and 660 for LTVs over 80% Expanded seller contributions allowed up to 6% on some scenarios

The following is a list of documents that may be required to process your mortgage loan:

·        One full month’s worth of pay stubs

·        Last 2 years W-2′s

·         Last 2 years tax returns 

·        Last two months bank statements for all accounts 

·       

I don't need originals, copies are fine. You can fax, email, or drop off at my office below .  I will supply you a copy of your credit report for free along with your pre-approval letter to buy a home. 

 

It usually takes about 24 hours for a pre-approval to come back from underwriting department. 

 

Let me know your questions. 

 

Thanks and look forward to helping you

 

 

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

800 Stone Creek Pkwy, Ste 7,

Louisville, KY 40223

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 http://mylouisvillekentuckymortgage.com/

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FIRST TIME BUYER PROGRAMS FOR JEFFERSON COUNTY KY Conventional Insured by approved mortgage insurance company. Minimum credit score of 660 or better. Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance. FHA Insured by the Federal Housing Administration. Down payments as little as 3.5 percent. Can use DAP for 3.5 percent down payment requirement. Upfront and monthly mortgage insurance. Minimum credit score of 640. VA Guaranteed by the Veterans Administration for qualified military veterans. No down payment if the property appraises for the sale price or greater. Credit underwriting is flexible. Minimum credit score of 640. No monthly mortgage insurance payments. Down Payment and Closing Costs Assistance Regular Down payment Assistance Program (DAP) Purchase price up to $243,000. Assistance in the form of a loan up to $6,000 in $100 increments. Repayable over a ten-year term at 6 percent.  A DAP of $6,000 over ten years at 6 percent interest would equal a payment of $66.61. Available to all KHC first-mortgage loan recipients. HOME-DAP Purchase price up to $195,700. Assistance up to $4,500 No monthly repayment; forgiven over five years. Existing homes only. Borrowers must meet HOME-income guidelines. More about down payment and closing costs No liquid asset review and no limit on borrower reserves for Regular DAP. Borrowers may retain two months’ house payments in reserve while using available funds first before looking for any form of HOME DAP assistance. Specific credit underwriting standards may apply to down payment programs.

THANKS,

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com


107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com 

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