𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮 Kentucky 𝗰𝗼𝗻𝘃𝗲𝗻𝘁𝗶𝗼𝗻𝗮𝗹 𝗹𝗼𝗮𝗻, 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗶𝘀 𝗶𝘁 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝗳𝗿𝗼𝗺 𝗮𝗻 Kentucky 𝗙𝗛𝗔 𝗹𝗼𝗮𝗻?

Unlike Kentucky FHA loans, conventional loans are 𝙉𝙊𝙏 backed by a government agency, but they do follow specific guidelines set by Conventional Mortgage Kentucky  Fannie Mae and Freddie Mac, federally backed companies that buy and guarantee mortgages. 

𝗧𝗵𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝘁𝗵𝗶𝗻𝗴 for you to know is that conventional loans have many benefits, including:

 Down payments as low as 3%

 No upfront mortgage insurance premium

 Monthly mortgage insurance that automatically falls off once the home has been paid down to 78% of the home’s value

 The ability to choose between an adjustable-rate or fixed-rate mortgage with different term lengths

 Use on different property types, including primary residences, second homes, and investment properties

✔ Maximum Loan Limits set each year. 

✔ PMI based on credit score and equity position

Kentucky Fannie Mae Loans versus Kentucky FHA Loans

Non Occupant Co-Borrower for Fannie Mae and FHA Loans.  The differences below: Kentucky Fannie Mae Loans Allowed on all Purchases up to 95% LTV Allowed on all Refinances including Cash out Does not have to be a Family Member Kentucky FHA Loans Limited to 75% LTV.  LTV can be increased to max 96.5% LTV provided: Non occupying borrower is not the seller in the transaction Property is not a 2-4 unit property Has to be a family member Not allowed on Cash out Refinances Non Occupant Co Borrowers must either be United State Citizens or have a Principal Residence in the United States.

Non arms Length / Identity of Interest for FHA and Fannie Mae Loans In KY Fannie Mae Loans(non arms length) Underwriter must confirm transaction is not a bail out Gift of Equity is allowed No additional restrictions apply FHA loans (Identity of Interest) Gift of Equity is allowed LTV limited to 85% unless Purchase is the principle residence of another Family Member Borrower has been a tenant in property for 6 months predating the sales contract.  A lease or other written evidence is needed to verify occupancy Borrower is an employee of the Builder of the property If a Family Member is providing secondary financing for the transaction, additional guidelines apply.  See HUD 4000.1 II.A.4.(3) for additional guidelines. Joel Lobb Mortgage Loan Officer Individual NMLS ID #57916 American Mortgage Solutions, Inc. 10602 Timberwood Circle  Louisville, KY 40223 Company NMLS ID #1364 click here for directions to our office Text/call:      502-905-3708 fax:            502-327-9119 email:          kentuckyloan@gmail.com https://www.mylouisvillekentuckymortgage.com/