Showing posts with label First Time Home Buyer Louisville Kentucky Mortgage. Show all posts
Showing posts with label First Time Home Buyer Louisville Kentucky Mortgage. Show all posts

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...
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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
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Borrower is a full-time law enforcement officer, teacher or firefighter/emergency medical technician


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A 50 percent discount from the list price is provided in the form of a forgivable second lien


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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




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The term of the note is 36 months from the date of owner-occupancy




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Refinance restrictions may apply


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One-unit residential properties


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Borrower cannot own any other residential property within 12 months of the offer date


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None of the borrowers could have ever utilized this program in the past


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The following must be detailed on the purchase contract with HUD



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50% discount




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$100.00 downpayment required




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Borrower may finance closing costs


Qualifications

1. You must be able to qualify for an FHA mortgage. 
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.
Fill out my form for a free mortgage pre-approval same day!
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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








Fill out my form!
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Kentucky Housing Income Limits for 2014 Mortgage Loans

New Income Limits for KHC Loans in Kentucky for 2014


Effective with reservations on Tuesday, April 1, 2014, both the Secondary Market and Affordable Down Payment Assistance Program (DAP) following household income limits will apply for Kentucky Housing KHC Mortgage Loans

ALL Kentucky counties were affected with the Secondary Market income limits.  Keep in mind, the Secondary Market income limits still apply to applicant's income only!  Below are the highlights for some counties with the new Secondary Market income limits: 

INCREASED
DECREASED
Daviess:  $105,525Franklin:  $110,775
Fayette:  $118,650Hardin:  $98,525
Jefferson:  $112,525Madison:  $94,850
Oldham:  $112,525Northern KY:  $119,875
Scott:  $118,650 Nelson:  $95,550
Shelby:  $128,975Warren:  $100,100


ALL Kentucky counties were affected with the DAP KHC Down Payment Assistance  income limits.  Keep in mind, the DAP income limits apply to the entire household's income.  Below are the highlights for some counties with the new DAP income limits:

 Kentucky Housing Down Payment Assistance for 2014

INCREASEDDECREASED
Henry, Jefferson:  $35,700 - $50,950Northern KY:  $38,400 - $54,800
Oldham, Spencer:  $35,700 - $50,950Pulaski:  $24,950 - $35,600
Fayette, Scott:  $37,450 - $53,500Warren:  $32,050 - $45,750

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

 Company ID #1364 | MB73346




Fill out my form for Kentucky Housing Down Payment Assistance for closing costs and prepaids. Zero Down Home Loans Thru KHC !
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First Time Home Buyer Nice Tips And Advice



Kentucky FHA Streamline Refinance Underwriting Guidelines and Requirements.
http://louisvilleloan.blogspot.com/
“Low Rates and Fast Closings!- Honest, Friendly local advice.”
Mortgage Broker or Lender at Key Financial Mortgage of Kentucky NMLS #1800
Louisville, KY
License: NMLS #57916
(502) 905-3708



Find me online


Joel Lobb is a Licensed Mortgage Originator:NMLS #57916. Key Financial MortgageNMLS # 1800 is a licensed Mortgage Broker Company in the State of Kentucky

Legal Disclaimer


This website is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.
All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines.








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FIRST TIME BUYER PROGRAMS FOR JEFFERSON COUNTY KY


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*




Fill out my form!
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Kentucky Mortgage Rates and Home Loan Options


Kentucky Mortgage Rates and Home Loan Options


Kentucky is known for its native bluegrass pastures, thoroughbred horses, and bluegrass music. It's also estimated that one-third of all bourbon produced comes from the State of Kentucky. Its two largest metropolitan areas are the cities of Louisville and Lexington, the former being the home of the world's most famous horse race, the Kentucky Derby.



For those who don't fancy themselves bourbon fans or sport enthusiasts there are still many options for lively entertainment in Kentucky. And just as many options when it comes to settling down, owning a home, and finding a loan with a great mortgage rate.



The more you know, the better equipped you will be to understand the qualifying requirements from some of the lenders in Kentucky. Most require financial documentation, while others have a more relaxed underwriting process.



It helps to be educated when shopping for your new home loan, and the best place to find out more about current mortgage rates and loan options in Kentucky is right here at lendingtree.com.



Mortgage Interest Rates on Kentucky FHA Loans


The FHA insured loan program provides many borrowers with competitive mortgage interest rates and an excellent loan option with which to purchase a home. Those who don't have a bundle to spend on down payments can use an FHA insured loan through a local lending partner to obtain financing up to 96.5 percent of the purchase price of the home with loan amounts up to $417,000.



To achieve even lower mortgage rates, those who can manage a larger down payment can get a conventional loan through traditional Kentucky lenders. These loans offer the lowest possible interest rates to both existing and new homeowners.



Jumbo Loan Options in Kentucky


If you need a loan that is larger than the conforming loan limit, chances are you'll be getting a jumbo loan. These loans are offered through most local and statewide lenders and those with good credit and income levels large enough to qualify can obtain a jumbo loan at market mortgage rates or just slightly above. They frequently carry higher mortgage interest rates due to the increase risk associated with the larger loan amount.



Assistance with Down Payment, Closing Costs, and KY Mortgage Rates


Government agencies, like the Kentucky Housing Corporation, can provide education materials and counseling for those wishing to own a home in the state of Kentucky. These agencies also offer loan programs through its lender partners in which buyers can tap into one of the following:

Down payment assistance of $6,000 over 10 years at 1% or 5% depending on your income. 



• VA Loan - guaranteed by the Veterans Administration for qualified military veterans. Offers no down payment if the property appraises for the sale price or greater, has flexible underwriting is flexible, and no monthly mortgage insurance payments and no minimum credit score requirements. Lenders however will create overlays to require a 620 credit score for most VA mortgage loan approvals nowadays with Automated Underwriting through DO/DU



• Conventional loans – with as little as three percent down payment (lower than FHA requirements) yet still covered by and approved mortgage insurance company. This loan is for those with a credit score of 680 or better, offering quick turnaround time and no up-front mortgage insurance payments.

Kentucky home loan programs to buy your first house in Kentucky



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4 Things Required for a KY Mortgage Loan Approval


Understanding Mortgage mortgage underwriting guidelines
Now that you have found your dream house, you are going to need to apply for a Louisville Mortgage mortgage loan. Your Realtor will either recommend a banking institution or you may already have one in mind.

You will be dealing with a loan officer who will be compiling all the data on you to see if you qualify for a loan to pay for this house. All lending institutions have different Underwriting Guidelines set in place when reviewing a borrower's financial history to determine the likelihood of receiving on-time payments. The primary items reviewed are the following 5 areas below:




1. Income


2. Debt


3. Credit History


4. Savings


5. Debt vs Income Ratio




Income is one of the most important variables a lender will examine because it is used to repay the loan. Income is reviewed for the type of work, length of employment, educational training required, and opportunity for advancement. An underwriter will look at the source of income and the likelihood of its continuance to arrive at a gross monthly figure.



Salary and Hourly Wages - Calculated on a gross monthly basis, prior to income tax deductions.



Part-time and Second Job Income - Not usually considered unless it is in place for 12 to 24 straight months. Lenders view part-time income as a strong compensating factor.



Commission, Bonus and Overtime Income - Can only be used if received for two previous years. Further, an employer must verify that it is likely to continue. A 24-month average figure is used.



Retirement and Social Security Income - Must continue for at least three years into the future to be considered. If it is tax free, it can be grossed up to an equivalent gross monthly figure. Multiply the net amount by 1.20%.



Alimony and Child Support Income - Must be received for the 12 previous months and continue for the next 36 months. Lenders will require a divorce decree and a court printout to verify on-time payments.



Notes Receivable, Interest, Dividend and Trust Income - Proof of receiving funds for 12 previous months is required. Documentation showing income due for 3 more years is also necessary.Rental Income - Cannot come from a Primary Residence roommate. The only acceptable source is from an investment property. A lender will use 75% of the monthly rent and subtract ownership expenses. The Schedule E of a tax return is used to verify the figures. If a home rented recently, a copy of a current month-to-month lease is acceptable.



Automobile Allowance and Expense Account Reimbursements - Verified with 2 years tax returns and reduced by actual expenses listed on the income tax return Schedule C.



Education Expense Reimbursements - Not considered income. Only viewed as slight compensating factor.



Self Employment Income - Lenders are very careful in reviewing self-employed borrowers. Two years minimum ownership is necessary because two years is considered a representative sample. Lenders use a 2-year average monthly income figure from the Adjusted Gross Income on the tax returns. A lender may also add back additional income for depreciation and one-time capital expenses. Self-employed borrowers often have difficulty qualifying for a mortgage due to large expense write offs. A good solution to this challenge used to be the No Income Verification Loan, but there are very few of these available any more given the tightened lending standards in the current economy. NIV loan programs can be studied in the Mortgage Program section of the library.





An applicant's liabilities are reviewed for cash flow. Lenders need to make sure there is enough income for the proposed mortgage payment, after other revolving and installment debts are paid.



All loans, leases, and credit cards are factored into the debt calculation. Utilities, insurance, food, clothing, schooling, etc. are not.

If a loan has less than 10 months remaining, a lender will usually disregard it.

The minimum monthly payment listed on a credit card bill is the figure used, not the payment made.

An applicant who co-borrowed for a friend or relative is accountable for the payment. If the applicant can show 12 months of on-time cancelled checks from the co-borrower, the debt will not count.

Loans can be paid off to qualify for a mortgage, but credit cards sometimes cannot (varies by lender). The reasoning is that if the credit card is paid off, the credit line still exists and the borrower can run up debt after the loan is closed.

A borrower with fewer liabilities is thought to demonstrate superior cash management skills.


Most lenders require a residential merged credit report (RMCR) from the 3 main credit bureaus: Trans Union, Equifax, and Experian. They will order one report which is a blending of all three credit bureaus and is easier to read than the individual reports. This "blended" credit report also searches public records for liens, judgments, bankruptcies and foreclosures. See our credit report index.



Credit report in hand, an underwriter studies the applicant's credit to determine the likelihood of receiving an on-time mortgage payment. Many studies have shown that past performance is a reflection of future expectations. Hence, most lenders now use a national credit scoring system, typically the FICO score, to evaluate credit risk. If you're worried about credit scoring see our articles on it.



The mortgage lending process, once very forgiving, has tightened lending standards considerably. A person with excellent credit, good stability, and sufficient documentable income to make the payments comfortably will usually qualify for an "A" paper loan. "A Paper", or conforming loans, make up the majority of loans in the U.S. and are loans that must conform to the guidelines set by Fannie Mae or Freddie Mac in order to be saleable by the lender. Such loans must meet established and strict requirements regarding maximum loan amount, down payment amount, borrower income and credit requirements and suitable properties. Loans that do not meet the credit and/or income requirements of conforming "A-paper" loans are known as non-conforming loans and are often referred to as "B", "C" and "D" paper loans depending on the borrower’s credit history and financial capacity.



Here are some rules of thumb most lenders follow:



12 plus months positive credit will usually equal an A paperloan program, depending on the overall credit. FHA loans usually follow this guideline more often than conventional loans.

Unpaidcollections, judgments and charge offs must be paid prior to closing an A paper loan. The only exception is if the debt was due to the death of a primary wage earner, or the bill was a medical expense.

If a borrower has negotiated an acceptable payment plan, and has made on time payments for 6 to 12 months, a lender may not require a debt to be paid off prior to closing.

Credit items usually are reported for 7 years. Bankruptcies expire after 10 years.

Foreclosure - 5 years from the completion date. From the fifth to seventh year following the foreclosure completion date, the purchase of a principal residence is permitted with a minimum 10% down and 680 FICO score. The purchase of a second or investment property is not permitted for 7 years. Limited cash out refinances are permitted for all occupancy types.

Pre-foreclosure (Short Sale) - 2 years from the completion date (no exceptions or extenuating circumstances).

Deed-in-Lieu of Foreclosure - 4 year period from the date the deed-in-lieu is executed. From the fifth to the seventh year following the execution date the borrower may purchase a property secured by a principal residence, second home or investment property with the greater of 10 percent minimum down payment or the minimum down payment required for the transaction. Limited cash out and cash out refinance transactions secured by a principal residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.

Chapter 7 Bankruptcy - A borrower is eligible for an A paper loan program 4 years after discharge or dismissal, provided they have reestablished credit and have maintained perfect credit after the bankruptcy.

Chapter 13 Bankruptcy - 2 years from the discharge date or 4 years from the dismissal date.

Multiple Bankruptcies- 5 years from the most recent dismissal or discharge date for borrowers with more than one filing in the past 7 years.

The good credit of a co-borrower does not offset the bad credit of a borrower.

Credit scores usually range from 400 to 800. Changes to lending standards are occurring on a daily basis as a result of tightening lending standards, and can vary from lender-to-lender-- so this information should be considered simply a guideline. For conforming loans, most lenders will lend down to a FICO of 620, with additional rate hits for the lower-end credit scores and loan-to-values. When you are borrowing more than 80%, they typically will not lend if you have a FICO below 680. The FHA/VA program just changed their minimum required FICO to 620, unless you are qualifying a borrower with non-traditional credit. The few non-conforming loan programs that are still available typically require 30% down payment with a minimum FICO of 700 for self-employed and 650 for W-2 employees, and the loan-to-value will change with the loan amount.





Lenders evaluate savings for three reasons.


The more money a borrower has after closing, the greater the probability of on-time payments.

Most loan programs require a minimum borrower contribution.

Lenders want to know that people have invested their own into the house, making it less likely that they will walk away from their life's savings. They analyze savings documents to insure the applicant did not borrow the funds or receive a gift.

Lenders look at the following types of accounts and assets for down payment funds:



Checking and Savings - 90 days seasoning in a bank account is required for these funds.Gifts and Grants - After a borrower's minimum contribution, a gifts or grant is permitted.


Sale of Assets - Personal property can be sold for the required contribution. The property should be appraised and a bill of sale is required. Also, a copy of the received check and a deposit slip are needed.


Secured Loans - A loan secured by property is also an acceptable source of closing funds.

IRA, 401K, Keogh & SEP - Any amount that can be accessed is an acceptable source of funds.
Sweat Equity and Cash On Hand - Generally not acceptable. FHA programs allow it in special circumstances.
Sale Of Previous Home - Must close prior to new home for the funds to be used. A lender will ask for a listing contract, sales contract, or HUD 1 closing statement.




The percentage of one's debt to income is one of the most important factors when underwriting a loan. Lenders have determined that a house payment should not exceed approximately 30% of Gross Monthly Income. Gross Monthly Income is income before taxes are taken out. Furthermore, a house payment plus minimum monthly revolving and installment debt should be less than 40% of Gross Monthly Income (this figure varies from 35%-41% contingent on the source of financing).


Example

An applicant has $4,500 gross monthly income. The maximum mortgage payment is:

$4500 X .30 = $1350

Their total debts come to:

$500 Car

$20 Visa

$30 Sears

$75 Master Card

----------------

$625 per month.



Remember, their total debts (mortgage plus other debts) must be less than or equal to 40% of their gross monthly income.

$2,800 X .40 = $1800

$1800 is the maximum debt the borrower can have, debts and mortgage payments combined. Can the borrower keep all their debts and have the maximum mortgage payment allowed? NO!

In this case, the borrower, since they have high debts, must adjust the maximum mortgage payment downward, because:

$625 debts

$1350 mortgage
-------------

$1975 - which is more than the $1800 (40% of gross debt) we calculated above.

The maximum mortgage payment is therefore:

$1800 - $625 (monthly debt) = $1175.








Some restrictions apply. Ask for details. Loan decision is subject to satisfactory appraisal and title review and no change in financial condition. This is not an offer for extension of credit or a commitment to lend. Equal Housing Opportunity.
This communication is provided to you for informational purposes only and should not be relied upon by you.








Joel Lobb (NMLS#57916)

Senior Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223


Company ID #1364 | MB73346


Text/call 502-905-3708

kentuckyloan@gmail.com

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.



Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

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