Showing posts with label kENTUCKY FHA Program Quick Reference. Show all posts
Showing posts with label kENTUCKY FHA Program Quick Reference. Show all posts

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


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Condo Buyers Guide: What you need to know when buying a condo


Condo Buyers Guide: What you need to know when buying a condo

Click on this link below for information about financing condos


↓↓↓↓↓↓↓

http://www.homepath.com/content/pdf/vendorresources/Marketing_Center_Condo.pdf



Louisville Kentucky FHA Condo Guidelines 
A detached condo for a FHA Mortgage Loan  is called a site condo and DOES NOT require FHA condo project approval!!
Site Condos are a SINGLE Family TOTALLY DETACHED Dwelling. No shared garages or any other forms of attached buildings. There cannot be ANY kind of attachments connecting any part of any building including decorative arches or other types of architectural elements.
Use appraisal form 1073 for site condos.




Joel Lobb
Senior  Loan Officer
(NMLS#57916)


 phone: (502) 905-3708
 Fax:     (502) 327-9119



Kentucky FHA Condo Mortgage Loan Apply Below
















 Click this link here for a FHA Condo Loan Approval in Kentucky !

2013 Louisville Kentucky FHA Streamline Refinance Guidelines

2013 Louisville Kentucky FHA Streamline Refinance Guidelines






Louisville Kentucky FHA Streamline Refinances are FHA-to-FHA rate/term refinances designed to reduce the borrower’s principal and interest payments.  FHA offers the following types of processing:

• Streamline with Appraisal
• Streamline without Appraisal
.
Mortgage Payment History
The mortgage history must be 0X30 in the last 12 months, regardless of the AUS decision.
Net Tangible Benefit

The lender must determine that there is a net tangible benefit as a result of the streamline refinance transaction,
with or without an appraisal.  Net tangible benefit is defined as:
• reduction in the total
• refinancing from an adjustable rate mortgage (ARM) to a fixed rate mortgage,
mortgage payment (principal, interest, taxes and insurances, homeowners’
association fees, ground rents, special assessments and all subordinate liens),
OR
• reduction in the term of the mortgage.

Reduction in Total Mortgage Payment:  The new total mortgage payment is 5 percent lower than the
total mortgage payment for the mortgage being refinanced.

Items that can be included in a Louisville Kentucky FHA  Streamline Refinance are:
• The existing unpaid balance
• Interest due for the current month on the FHA loan being paid off
• A credit for excess funds in the borrower’s escrow account
• A charge for escrow shortages or negative escrow balance due
Items that cannot be included in the streamline refinance payoff:
• Fax fees or other miscellaneous fees shown on the payoff
• Any other debt including seasoned subordinate liens or money due an ex-spouse
• The new loan may not include any delinquent interest accrued from late payments
Current FHA loan must be  FHA insured in the state of Kentucky .

LOUISVILLE KY FHA REFINANCE-STREAMLINE WITH APPRAISAL

• Existing second liens may be subordinated, max CLTV is 125%.
• Mortgage must be current at time of closing and be 0X30 in the last 12 months.
• Loan amount may exceed original mortgage amount if supported by current appraised value.
• Incidental cash back at closing limited to a maximum $500.

Kentucky FHA Streamline Guidelines
Maximum Loan Amount
The maximum loan amount is the lower of:
1)  97.75% of the appraised value of the property plus the new UFMIP that will be charged on the refinance
-OR-
2) Outstanding principal balance minus the applicable refund of UFMIP, plus closing costs, prepaid items to
establish the escrow account and the new UFMIP that will be charged on the refinance.

• Current FHA loan must be FHA insured.
REFINANCE-STREAMLINE WITHOUT APPRAISAL
• Mortgage must be current at time of closing and be 0X30 in the last 12 months.
• Incidental cash back at closing limited to a maximum $500.
• Eligible on 203(b).
Maximum Loan Amount
To determine the maximum loan amount, use the outstanding principal balance minus the applicable refund
of the UFMIP plus the new UFMIP that will be charged on the refinance.
For other guidelines not listed in this manual, refer to general FHA (Federal Housing
Authority) guidelines located at:  www.hud.gov or www.hudclips.org



call 502 905 3708 for our free Louisville Kentucky FHA streamline Refinance analysis


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