Kentucky Mortgage Loans for FHA, VA, KHC, USDA, Fannie Mae and Rural Housing

 Homeownership Opportunities Still Available Through Kentucky Housing Corporation Lowest interest rates ever offered through KHC

There is good news for Kentuckians thinking about purchasing a home. Kentucky HousingCorporation (KHC), the state housing finance agency, is offering the lowest rates ever in its 40-year history.
"It has never been a better time to purchase a home through KHC," said Governor Steve Beshear. "With rates this low and down payment and closing costs assistance, Kentuckians who thought they would not be able to own a home now have an opportunity. These low rates will not last; buyers should contact a KHC-approved lender as soon as possible."
Purchasing a home through KHC is easy. Buyers work with a network of KHC-approved lenders and banking institutions that help the buyer throughout the purchasing process. There are also over 1,000 real estate agents who have become KHC-certified and have committed to helping their buyers with affordable home-financing solutions. A list of lenders and real estate agents is available on KHC's Website. Buyers should ask for a KHC loan.
"Kentuckians can feel comfortable purchasing a home through KHC," said Richard L. McQuady, chief executive officer of KHC. "KHC home loans start with us and end with us. When homeowners make a payment or call about their loan, they are talking to a KHC staff person at our office in Frankfort."
Kentucky Housing is able to offer these low rates through an extension of the New Issue Bond Program (NIBP), a federal bond purchase program provided by the U.S. Department of Treasury.
 

     

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Kentucky Mortgage Loans

 These special financing options are designed to lower your interest rate, down payment amount and/or closing costs. Here are a few examples:

• Federal Housing Association  Louisville Kentucky FHA loans - These loans offer the benefit of a low, 3.5% down payment. 
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• Veterans Affairs  Louisville Kentucky VA  Loans - VA loans make 100-percent financing available to qualified military veterans with at least six months of active duty. This loan is also available to the unmarried spouses of a deceased veteran whose death was service related, or spouse of an MIA or POW.
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• Kentucky Housing Corporation (KHC) - KHC loans are great for the first-time home buyer. They are subject to income guidelines.

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Kentucky  USDA Rural Housing Guaranteed Loans!

• Competitive Kentucky USDA Mortgage Rates fixed - Click here for up-to-date rates.
• Low monthly mortgage insurance
• No down payment and no cash reserve requirements
• Finance up to 100% of purchase price, plus closing costs if home appraises for greater than purchase price
• One-time guarantee fee, can be financed into the loan
• Gift / Grant funds allowed
• Seller concessions allowed

Eligibility criteria:

• Home must be located in an eligible rural area.
  Eligible property types include existing and new construction single family residences, condominiums, Planned Unit Development's (PUD's), and new manufactured homes built by an approved dealer-contractor.
• Household income must not exceed the adjusted income limit for the area.
• Borrower must be a US citizen, permanent resident, or qualified alien.

 To determine property and income eligibility or visit Rural Development's online eligibility website at: http://eligibility.sc.egov.usda.gov.

Mortgage Programs available to Louisville Kentucky Home buyers. USDA, FH...

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
program.
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
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com 

KHC Loan Products

KHC Loan Programs 

Conventional Loans

The KHC also offers a conventional loan program for borrowers with a credit score of 660 or better. The conventional loan features a quick turnaround time, requires a 20% down payment, and has no up-front or monthly mortgage insurance. Under the program, the loan is insured by an approved mortgage insurance company 

FHA Loans

The FHA loans offered through the KHC require that borrowers have a minimum credit score of 620. The loans feature down payments of as little as 3.5% and upfront and monthly mortgage insurance. The KHC’s Regular Down payment Assistance Program (DAP) can be used for the 3.5% down payment requirement.  All FHA loans are insured by the Federal Housing Administration (KHC Loan Programs 

VA Loans

As with all VA loans, the VA loans offered through the KHC are guaranteed by the Veterans Administration for qualified military veterans with a minimum credit score of 620. These loans feature:

·        no down payment if the property appraises for the sale price or greater;

·        flexible credit underwriting; and

·        no monthly mortgage insurance payments .

RHS Loans

RHS loans are guaranteed by Rural Housing Services (RHS) and are available only for homes located in a rural area as defined by RHS. Like the VA loan, the RHS loan requires that borrowers have a minimum credit score of 620, and doesn’t require a down payment if the property appraises for the sale price or greater 

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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/

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KHC Loan Programs

Kentucky Housing Corp or KHC

KHC is used for mostly applicants in urban areas of Kentucky that don't have access to USDA or other government agencies to buy a home with no down payment.

A minimum of 3.5% down payment is required with this loan. Down payment assistance loans are available from $4500-$6,000, and are paid back over a period of ten years. They are typically offered to buyers with limited cash reserves and carry an interest rate of 1 to 5.5%. These loans can make a critical difference to buyers for whom the down payment is an obstacle. Buyers whose 3.5% down payment is less than the $6000 limit may choose to use the remainder of a down payment loan to pay closing costs, further reducing the amount needed to bring to closing.

How much can you afford for a Kentucky Mortgage Loan

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

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com 

Kentucky Housing first mortgage loans

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Kentucky Housing first mortgage loans

KHC Loan Programs

KHC Loan Programs MRB All MRB Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest. The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding. To qualify, you must meet KHC’s regular MRB income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history. Some MRB KHC loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years.  However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006.  The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home. 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. RHS Guaranteed by Rural Housing Services (RHS). Home must be located in a rural area as defined by RHS. No down payment if the property appraises for the sale price or greater. Minimum credit score of 640. GNMA Secondary Market All GNMA KHC first mortgage loans are for a 30-year term at a fixed rate of interest. The home you purchase through KHC must be occupied as your principle residence while the loan debt is outstanding. To qualify, you must meet KHC's GNMA income guidelines, make a down payment, or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history. 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. RHS Guaranteed by Rural Housing Services (RHS). Home must be located in a rural area as defined by RHS. No down payment if the property appraises for the sale price or greater. Minimum credit score of 640. Two FHA Refinance Options Credit qualifying Streamline Refinance and Rate/Term Refinance Insured by the Federal Housing Administration Cash back to borrower not to exceed $500 Upfront and monthly mortgage insurance Minimum credit score of 640 Home Buyer Tax Credit KHC's Home Buyer Tax Credit is available through Mortgage Credit Certificates (MCC), which reduce the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan.  MCCs are NOT mortgages.  They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.  That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay.  The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan.  But an MCC gives you a tax credit of 25 percent (not to exceed $2,000).  You can still deduct the remaining 75 percent interest on your income taxes.  A tax credit is not the same as a tax deduction.  A tax deduction reduces the portion of your income that is taxed, so you pay less.  A tax credit is a direct, dollar for dollar reduction in the total tax you owe.  The MCC is effective for the life of the loan as long as you live in the home.  If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.  One-time fee of $500 or reduced to $200 if through KHC's GNMA Secondary Market First Mortgage Program.  Not valid with MRB loan programs. Special First Mortgage Loan Programs The Lottery for Special Funding is opened once a year.  The funds are allocated for persons meeting income and all MRB Guidelines.  These limited funds are available, usually in July, on a first-come, first-served basis. Guidelines Must be a first time home buyer, unless property is located in a targeted county. Interest rate fixed at 3.00 percent based on minimum ratios 29/41 percent. Eligible households: Single parents (at least one dependent under the age of 18 must live in the home.) Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.). Households where at least one of the home buyers is age 62 or older. Gross Annual Household Income guidelines: $28,000 for a household of 1 or 2 people; or $33,000 for a household of 3 or more people. All household occupants (18 years and older) with income must be included on loan and be credit ready. Must use all but two months’ reserves of borrower’s own funds. Existing or new construction property with a purchase price limit of $115,000 Zero Point Rate Only FHA, VA and RHS – 640 credit score and AUS Approval 60 Day Lock Kentucky Housing’s Regular and HOME DAP loan program may be used for down payment and closing cost assistance.  Fill out my form! Joel Lobb (NMLS#57916)Senior  Loan Officer 502-905-3708 cell 502-813-2795 fax jlobb@keyfinllc.com Key Financial Mortgage Co. (NMLS #1800)* 107 South Hurstbourne Parkway* Louisville, KY 40222* http://mylouisvillekentuckymortgage.com  Applying for a Kentucky Housing loan is easy. Just contact one of our approved lendershttp://kentuckyfirsttimehomebuyer.com near you and ask for a Kentucky Housing loan.