Assumable Mortgage Reality Check for Kentucky Homebuyers

Mortgage Recast in Kentucky: FHA, VA, USDA & Fannie Mae Guidelines

Mortgage Recast in Kentucky

Complete Guide for FHA, VA, USDA & Fannie Mae Loans

If you're a Kentucky homeowner looking to reduce your monthly mortgage payment, a mortgage recast (also called re-amortization) may be a strategy worth exploring. However, not all loans qualify—especially with FHA, VA, USDA, and Fannie Mae mortgages.

In this comprehensive guide, I'll break down:

• What a mortgage recast is and how it works
• Which Kentucky mortgage loans do and don't allow recasting
• Requirements, fees, timing, and pros/cons
• Alternative options (refinance, extra principal payments)
• Action steps and resources

What Is a Mortgage Recast?

A mortgage recast is when you make a lump-sum principal payment on your loan, and the lender recalculates (re-amortizes) your monthly payment based on the new lower balance. You keep your original interest rate and term—only your monthly principal and interest payment is reduced.

Key Differences from Refinancing:

• No rate change: You retain your original interest rate
• Lower costs: Typically a $250–$500 processing fee vs. thousands in closing costs
• Same loan term: Your maturity date doesn't change
• Simpler process: No full credit qualification needed

Because recasting keeps your interest rate the same, it's most useful when current rates are higher than your existing rate or you want to avoid refinancing costs.

Eligible & Ineligible Loans in Kentucky

One of the most critical aspects: which loans allow a recast?

❌ Loans NOT Eligible for Recast

• GNMA loans (Ginnie Mae) are not eligible for recast. This is important because most FHA, VA, and USDA loans are packaged and sold to Ginnie Mae.
• FHA mortgages are not eligible for HAMP (Home Affordable Modification Program) and regular recasts.
• VA loans (Department of Veterans Affairs) are not eligible for HAMP and regular recasts.
• USDA/Rural Housing loans do not permit recasting.

Additional Exclusions:

• Accounts in the interest-only payment period
• Accounts in a negatively amortizing ARM loan
• Accounts less than 30 days past due (must be current)

Bottom line: FHA, VA, USDA, and GNMA loans = generally no recast option.

✅ Loans Eligible for Recast

Conventional loans under Fannie Mae or Freddie Mac often allow recasts. Within Fannie Mae's protocols, a recast happens when a borrower makes a "substantial principal curtailment" after closing, and the payment is recalculated over the remaining term.

Some jumbo or portfolio loans may allow recasting, subject to investor approval and lender policy.

Key Takeaway: If you have an FHA, VA, or USDA mortgage in Kentucky, recasting is not your option—instead, you'll typically look at refinancing or making extra principal payments.

Kentucky-Specific Considerations & Statutes

State Fee Limits

Kentucky law allows lenders to charge up to $300 for recasting under state fee schedules. This is lower than some lenders charge nationally, which can range up to $500.

Recording Requirements (Effective July 15, 2024)

County clerks in Kentucky must now record mortgage amendments, modifications, or extensions (including substantive changes) as long as they meet statutory criteria under KRS § 382.297.

Action Item: Your recast request should include a well-drafted modification document (written, signed, notarized, referencing the existing mortgage) to ensure compliance and smooth recording.

Requirements, Fees & Timing

Here's a practical checklist—what it typically takes to recast a mortgage:

Item	Typical Requirement	Notes
Lump-sum payment	Minimum $5,000 or more toward curtailment payment	Must qualify per the agency's guidelines
Loan status	Must be current—not less than 30 days past due	Account must be in good standing with no recent late payments
Recast processing fee	$250 to $500 typical range	No charge to the customer for the recast (varies by servicer)
Written request	Must submit formal recast request through written or verbal confirmation	Contact servicer's call center or email customer care
Agreement timeline	Borrower provided 30 days to sign and return recast agreement	Once signed, servicer updates the loan within their system
Closing timeline	No timeline condition on the closing date for recast	Processing typically takes 30-60 days total
Servicer approval	Subject to review by investor/lender	Must meet agency guidelines for approval

Critical Note: Not every lender offers recasts—even if your loan type allows it. You must verify with your loan servicer directly.

Step-by-Step Recast Process

If your loan is eligible for recasting, here's exactly how the process works:

1

Make the Curtailment Payment

On the eligible loan, you must make a minimum of $5,000 or more toward the principal (curtailment payment). This lump sum must qualify per the agency's guidelines.

2

Request the Recast

The borrower needs to request the recast through written or verbal confirmation.

Contact Options:

• Call the PHH call center: 833-349-1752
• Email: CustomerCare@mortgagefamily.com

3

Curtailment Payment Posted

Once the curtailment payment is posted to your account, the call center team will request the recast on your behalf.

4

Recast Agreement Preparation

The recast team will prepare the recast agreement and mail it to you, the borrower.

5

Sign and Return Agreement

You'll be provided 30 days to sign and return the recast agreement back to PHH Mortgage Services.

6

Loan Update

Once the signed agreement is received from you, the recast team will update the recast principal and interest (P&I) on the loan within the servicing system.

7

New Payment Begins

Your new, lower monthly payment will begin according to the recast schedule provided.

Important: There is no timeline condition on the closing date for recast—meaning you can request a recast at any point after making your curtailment payment (as long as your loan meets all eligibility requirements).

Bonus Benefit: Using Recast to Eliminate PMI

One of the most powerful applications of mortgage recasting is eliminating Private Mortgage Insurance (PMI) on conventional loans.

How Principal Reduction Removes PMI

When you make a large principal curtailment that brings your loan-to-value (LTV) ratio to 80% or less based on the original property value, you can request PMI termination.

Example:

• Original home value: $250,000
• Original loan amount: $237,500 (95% LTV with PMI)
• To reach 80% LTV: $200,000 loan balance
• Principal reduction needed: $37,500

After making this $37,500 payment and recasting, you accomplish two goals:

1. Lower monthly payment from the reduced principal balance
2. Eliminate PMI (often $100-$300/month savings)

PMI Termination Requirements (Fannie Mae Guidelines)

To qualify for borrower-initiated PMI termination based on original property value, you must meet these criteria:

LTV Requirements:

• One-unit primary residence or second home: 80% LTV or less
• Investment property or 2-4 unit property: 70% LTV or less

Payment History Requirements:

You must have an acceptable payment record, which means:

• The loan is current when termination is requested
• No payment 30+ days past due in the last 12 months
• No payment 60+ days past due in the last 24 months

Property Value Verification:

The servicer must verify the current property value is not less than the original value (typically through an automated valuation model from Fannie Mae's system).

The Combined Power: Recast + PMI Removal

When you combine a mortgage recast with PMI elimination, the monthly savings can be substantial:

Example Monthly Savings:

• Principal reduction recast savings: $150-$250/month
• PMI elimination savings: $100-$300/month
• Total combined savings: $250-$550/month

This strategy works particularly well for Kentucky homeowners who:

• Receive a financial windfall (inheritance, bonus, stock sale)
• Have been aggressively paying down principal
• Want to maximize cash flow without refinancing at higher rates

Important Notes on PMI Termination

Servicers must not charge borrowers a fee for processing automatic termination of PMI. After termination is approved, the servicer must reduce your mortgage payment within 30 days and forward any unearned PMI refund to you within 45 days after the termination date.

Pro Tip: You can recast your mortgage and request PMI termination in the same transaction if you meet all requirements. This is one of the most cost-effective ways to dramatically reduce your monthly housing payment.

Benefits & Risks: Is a Recast Worth It?

✅ Benefits

1. Lower monthly payment without changing interest rate or term
2. Potential PMI elimination if you reach 80% LTV on conventional loans
3. Reduced cash flow burden, freeing up money for savings or investments
4. Lower cost than refinance: Recast fees are modest compared to closing costs
5. Simpler process: Fewer qualifying requirements compared to refinancing
6. Keep your low rate: If you locked in a great rate years ago, you preserve it

⚠️ Risks / Limitations

1. Requires substantial cash: You need a large lump sum ready
2. No rate reduction: If current rates are lower, you miss refinancing opportunities
3. Same loan term: Doesn't reduce total interest unless you make additional payments
4. Not available for government loans: FHA/VA/USDA generally excluded
5. Not all lenders participate: Servicer must offer the option

Bottom Line: In many cases, paying down principal without recast (continuing extra payments) or refinancing may be more effective—especially when rates are favorable and you qualify for better terms.

For FHA / VA / USDA Borrowers: Alternatives to Recast

Since recasting is generally unavailable for government-backed loans, here are your alternatives:

1. Refinance to Conventional

You can refinance into a conventional (Fannie Mae or Freddie Mac) mortgage and then potentially recast later if needed. This also allows you to access recast options in the future.

2. Streamline Refinance

• FHA to FHA Streamline
• VA to VA IRRRL (Interest Rate Reduction Refinance Loan)
• USDA Streamline Refinance

These programs offer simplified refinancing with reduced documentation.

3. Principal Curtailments / Lump Sum Payments

Make extra payments toward principal. While your monthly payment doesn't automatically change, you reduce principal and total interest paid over time. Many lenders allow periodic principal reductions without fees.

4. "Cash-In" Refinance

At refinance, bring funds to the table to reduce your loan-to-value ratio (LTV). This acts like a forced principal reduction and may help you eliminate mortgage insurance (PMI/MIP).

5. Hybrid / Portfolio Options

Some specialized lenders or portfolio (non-conforming) products may allow special modifications. These are case-by-case situations.

If your goal is lowering monthly payments and you have an FHA, VA, or USDA loan, refinancing is typically your best path.

Frequently Asked Questions

Can I recast my FHA/VA/USDA loan in Kentucky?

Generally no—government-backed loans do not allow recasting under current program rules. You'll need to explore refinancing or making extra principal payments instead.

Is there a fee for recasting my mortgage?

It varies by servicer. Some servicers charge between $250 and $500 for recast processing. However, some servicers offer recast with no charge to the customer. In Kentucky, state law allows lenders to charge up to $300. Always ask your specific servicer about their fee structure.

How much lump sum is required to recast?

The minimum is typically $5,000 or more toward curtailment payment, though this can vary by servicer. Some require approximately 10% of your current principal balance. Requirements vary by lender and must qualify per the agency's guidelines.

Will recasting change my interest rate or loan term?

No—the interest rate and original maturity date stay the same. Only your monthly payment amount is recalculated based on the lower principal balance.

What if I have an FHA, VA, or USDA loan—what can I do instead?

You can refinance (potentially to conventional), make extra principal payments without recast, or use a cash-in refinance strategy. Each option has different benefits depending on your situation.

Can I eliminate PMI with a mortgage recast?

Yes! If you make a large enough principal payment through recast that brings your loan-to-value (LTV) to 80% or less on a one-unit primary residence or second home (or 70% or less on investment properties), you can request PMI termination. This requires:

• An acceptable payment record (current, with no 30+ day lates in 12 months, no 60+ day lates in 24 months)
• Verification that current property value equals or exceeds original value
• Meeting Fannie Mae's LTV requirements

Combining recast with PMI elimination can save $250-$550+ per month total.

How long does the recast process take?

Typically 30–60 days from submission to implementation, depending on your servicer's processing time.

What's the difference between recasting based on original value vs. current value?

Original value: Based on the purchase price or original appraised value. Easier to qualify—just need to reach the LTV threshold through principal payments.

Current value: Based on today's market value. Requires a new appraisal or BPO (Broker Price Opinion) and typically requires the loan to be seasoned for 2+ years (unless property improvements increased the value). Good option if your home has appreciated significantly.

Ready to Explore Your Options?

Whether you have a conventional loan that's eligible for recasting, or an FHA, VA, or USDA loan that requires alternative strategies, I'm here to help you make the best decision for your financial situation.

📞 Call or Text: (502) 905-3708

✉️ Email: kentuckyloan@gmail.com

With over 20 years of experience helping Kentucky homeowners

10 Mortgage Facts Every Kentucky Homebuyer Should Know for | FHA, VA, USDA & Conventional Loans

Looking to buy a home in Kentucky? 

Here are 10 insider mortgage facts that give you an edge when applying for FHA, VA, USDA, or Conventional home loans in 2025.

If you’re buying a home in Kentucky, understanding how mortgages work can give you a real edge. Whether you’re a first-time buyer or a repeat homeowner, these 10 insider facts can save you money, stress, and time during the mortgage process.👇

1. Mortgage Rates Change — Sometimes Daily

Mortgage rates move up and down throughout the day, just like the stock market. The rate you see in the morning might not be available in the afternoon.
👉 Pro Tip: If you’ve found your dream home and your loan officer quotes you a solid rate, consider locking it in immediately before market shifts erase your savings.

2. Every Lender Charges Different Fees

Not all lenders price their loans the same. Rates, origination fees, discount points, and closing costs can vary widely.
👉 Best Practice: Get at least three loan estimates to compare side-by-side. Don’t just shop rate — compare total cost.

3. Your Loan Might Be Sold — And That’s Normal

It’s common for lenders to sell your loan to another bank or servicer. This helps lenders free up capital to issue more loans.
👉 What to Watch: Always read your mail and verify who’s collecting your payment. The terms of your loan don’t change when it’s sold.

4. Your Middle Credit Score Is What Counts

Lenders pull three credit scores — one each from Experian, Equifax, and TransUnion. Your middle score determines your qualification and rate.
👉 Important: Free credit scores from apps or websites use different models and may not match what mortgage lenders see.

5. You Can Refinance Anytime — But That Doesn’t Mean You Should

You can refinance whenever you like, but it only makes sense if it benefits your long-term financial goals.
👉 Ask Yourself: Are you lowering your payment, shortening your term, or pulling cash out for home improvements? If the math works, refinance. If not, wait.

6. You Can Buy a Home Again After a Foreclosure

A past foreclosure doesn’t disqualify you forever. Each loan type has its own waiting period:

• FHA: 3 years

• VA: 2 years

• Conventional: 7 years
  👉 Exception: You may qualify sooner if you can document an uncontrollable hardship (job loss, major illness, etc.).

7. Good Credit = Better Mortgage Rates

High credit scores don’t just open more doors — they get you better pricing.
👉 Action Step: Keep your balances below 30% of your limits, pay on time, and avoid new credit inquiries before applying. The stronger your credit, the more leverage you have to negotiate closing costs.

8. Know Your APR (Annual Percentage Rate)

Your interest rate and your APR are not the same.

• Interest Rate: Cost of borrowing the money

• APR: The true cost, including lender fees, points, and mortgage insurance
  👉 Smart Move: Always ask for a breakdown of what’s included in the APR so you know where your money is going.

9. You Can Reduce Your Closing Costs

Closing costs can be negotiated.
👉 Options:

• Ask the seller for a credit

Ready to Get Started?

Joel Lobb | Kentucky Mortgage Loan Officer

Helping Kentucky Families Since 2002

FHA | VA | USDA | KHC | Conventional

 502-905-3708

 

 kentuckyloan@gmail.com

 

 www.mylouisvillekentuckymortgage.com

 

 911 Barret Ave., Louisville, KY 40204

Get Pre-Approved Today

Joel Lobb - Mortgage Loan Officer
NMLS Personal ID: 57916 | Company NMLS ID: 1738461
Kentucky Mortgage Loans Only | Equal Housing Lender

Important Disclaimers:
This website and content are not endorsed by the FHA, VA, USDA, or any government agency. All information is for educational purposes only and does not constitute financial advice.

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by lenders who are licensed by the states in which they operate. Other restrictions and limitations apply.

Visit www.nmlsconsumeraccess.org to verify licensing and credentials.

 Equal Housing Opportunity

Ready to Get Started?

🏠 10 Mortgage Facts

Every Kentucky Homebuyer Needs to Know

1

📈Rates Change Daily

Mortgage rates move like the stock market. The rate you see this morning could disappear by afternoon. Lock it in when it looks solid!

2

💰Every Lender Charges Different Fees

Compare at least 3 loan estimates. Look beyond the rate—check origination fees, underwriting fees, and lender credits. That's where the real differences hide.

3

📬Your Lender Can Sell Your Loan

Totally normal—it helps lenders free up funds. Your loan terms don't change, but always read your mail to ensure you're sending payments to the right place.

4

📊Middle Credit Score Matters Most

Lenders pull from Experian, Equifax, and TransUnion—and use your middle score to qualify you. Free app scores? Usually not the same as mortgage scores.

5

🔄Refinancing: Run the Numbers

You can refinance anytime, but should you? It makes sense if you'll break even in 2-3 years, eliminate PMI, shorten your term, or pull equity for something important.

6

🏡You Can Buy Again After Foreclosure

FHA: 3 years | VA: 2 years | Conventional: 7 years. If life threw you a curveball, time and recovery open new doors. Don't give up on homeownership.

7

⭐Good Credit = Better Rates

Keep balances low, pay on time, avoid new credit before applying. Even a 20-point credit score bump can save you thousands over your loan's life.

8

🔍Know Your APR

Interest rate = what you pay to borrow. APR = the true cost including fees, points, and insurance. Always ask what's included so you're comparing apples to apples.

9

💵Reduce Your Closing Costs

In Kentucky, sellers are often open to credits. You can also use lender credits or roll costs into loans with VA or USDA. There's always room to negotiate!

10

✅Pre-Approval Gives You Power

In Kentucky's competitive market, sellers take you seriously when you're pre-approved. It shows you're ready to close—and can be the difference between winning or losing a home.

Same-Day Approvals Available!

Ready to Get Started?

Joel Lobb | Kentucky Mortgage Loan Officer

Helping Kentucky Families Since 2002

FHA | VA | USDA | KHC | Conventional

📞 502-905-3708

📧 kentuckyloan@gmail.com

Get Pre-Approved Today

NMLS Personal ID: 57916 | Company NMLS ID: 1738461
Kentucky Mortgage Loans Only | Equal Housing Lender

Mobile Home Loan Guidelines for Kentucky: FHA, VA, USDA, and Conventional Loans

Manufactured home properties are often more affordable than standard single-family homes, making them an attractive option for many prospective buyers. Whether you're a first-time homebuyer or looking to refinance, there are financing options for manufactured homes through FHA, VA, USDA, and Conventional loan programs.

Important Guidelines for Manufactured Home Mortgages in Kentucky

Before diving into specific loan programs, it's essential to understand two critical requirements that apply to almost all manufactured home loans in Kentucky:

Permanent Foundation: The manufactured or mobile home must be on a permanent foundation. This means the home must be permanently affixed to the land with proper structural supports, meeting local building codes. Read more here what constitutes a permanent foundation ➡️https://www.huduser.gov/portal/Publications/PDF/foundation_guide_complete.pdf

Single Relocation: The home must have only been moved once, from the factory or dealership to the permanent site. Homes that have been relocated more than once typically do not qualify for financing.

Keeping these two key factors in mind will significantly improve your chances of securing a mortgage loan for a manufactured home.

Here's a detailed look at the requirements and guidelines for each program:

FHA Manufactured Home Loans

Minimum Credit Score: 500 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase or Rate-Term up to 96.5% LTV; Cash Out up to 80% LTV

Manual Underwrites: Allowed

Additional Requirements:

Real Property Conversion required at closing

Home must be your primary residence

Property cannot have been previously installed or occupied at another site

Age of Home: Home must have been constructed after June 15, 1976

USDA Manufactured Home Loans

Minimum Credit Score: 550 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase up to 100% LTV

Manual Underwrites: Required; Maximum Debt-to-Income (DTI) ratio is 29/41

Additional Requirements:

Home must be located in a USDA-eligible rural area

Real Property Conversion required at closing

Home must be a 2006 model or newer

Property cannot have been previously installed or occupied at another site

Must be your primary residence 

You cannot do not a mobile home loan on a USDA loan in Kentucky --Only available  in select pilot States and Kentucky is not in that program

VA Manufactured Home Loans

Minimum Credit Score: 500 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase or Rate-Term up to 100% LTV; Cash Out up to 80% LTV

Manual Underwrites: Allowed

Additional Requirements:

Real Property Conversion required at closing

Property can be previously installed or occupied at another site

Must be your primary residence

Age of Home: Home must have been constructed after June 15, 1976

Conventional Manufactured Home Loans

Minimum Credit Score: 620 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase or Rate-Term up to 95% LTV; Cash Out up to 65% LTV

Additional Requirements:

Real Property Conversion required at closing

Home must have been constructed after June 15, 1976

Property cannot have been previously installed or occupied at another site

Primary and second homes allowed

Why Choose a Manufactured Home Loan?

Manufactured homes offer a cost-effective alternative to traditional housing, with modern designs and layouts that meet the needs of today's homeowners. With these flexible loan options, Kentucky homebuyers have access to financing programs tailored to manufactured housing.

Whether you’re looking for a low credit score option, zero money down, or a loan for a primary or secondary residence, these programs cater to a variety of financial situations.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

---

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky Mortgage Approval Checklist

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: THESE 10 MORTGAGE FACTS WILL GIVE YOU AN ADVANTAGE...:  

>

Kentucky Mortgage Approval Guidelines

1. Mortgage Rates Change

Just like the stock market, mortgage rates change throughout the day. Mortgage rates you see today may not be available tomorrow. If you are in the market for a mortgage loan, be sure to check the current rates being offered by lenders. If you have already done your research and have found your dream home consider locking in your rate as soon as possible.



2. Different Lenders Charge Different Fees


Don’t expect every lender to charge the same fees for a mortgage loan. Every lender structures their fees differently, which is why it is important to shop with at least 3 lenders to compare. Next time you apply for a mortgage loan pay attention to the rates, points being charged and closing costs.



3. Lenders Can Sell Your Loan to Another Bank


Many borrowers have experience getting a mortgage loan with a certain lender only to find out that the loan has been sold to another bank. This occurs because lenders need to free up their liabilities in order to make room to give out more loans. This does not affect your mortgage whatsoever, but it’s important to pay close attention to your mortgage statement and any correspondence you receive in the mail to make sure you do not make payments to the wrong bank.



4. Your Middle Credit Score Matters



When you apply for a mortgage loan, the lender will pull your credit scores from three credit bureaus (Transunion, Equifax and Experian) to help them determined if you are credit worthy. Your middle score of the three is what lenders will use for loan qualification. However, the underwriter will review all three scores as part of the loan underwriting process. If you pull your own credit score through a website online, the credit scores displayed to you may be different than what lenders use because they use different reporting systems.



5. You Can Refinance Your Home Loan Anytime



You can refinance your mortgage anytime, but it doesn’t necessarily mean you should. Think about why you want to refinance. Is because you want to lower your monthly payments, to change the type of loan you are in or to take cash out from your equity? Whatever the reason is, make sure that it makes financial sense.


6. You Can Get a Mortgage Loan After a Foreclosure


Many homeowners have experienced a foreclosure after the recent mortgage crisis. There is good news for these borrowers because they can get a mortgage loan after foreclosure. There are waiting periods involved, for example, to apply for an FHA loan you must wait three years after foreclosure to apply. If you want to get a conventional loan the waiting period is seven years from foreclosure. For those seeking a VA loan, the waiting period is two-years.


There are exceptions to the waiting periods, but you have to show the lender that your foreclosure was caused by an event outside your control, such as losing your job or being seriously ill.


8. Good Credit Allows you to Get Better Mortgage Rates



Good credit scores mean a better rate in any type of loan, especially a mortgage loan. Your credit heavily impacts the type mortgage loan you will qualify for. To maintain a good credit report, make sure you monitored it closely. One of the advantages to good credit is that more banks will want to compete for your business, therefore giving you leverage to negotiate the closing costs.



9. Know Your Annual Percentage Rate (APR)


Knowing your APR will allow you see the true cost of your loan. While the interest rate shows the annual cost of your loan, the APR includes other fees such as origination points, admin fees, loan processing fees, underwriting fees, documentation fees, private mortgage insurance and escrow fees.


There may be more or less fees included in the ARP from what we mentioned. To be sure what fees are included in the APR, ask your lender to give you a breakdown of the closing costs included.


10. You Can Always Reduce Closing Costs


One way to reduce closing costs is to have the sellers contribute towards the closing costs when purchasing your home. This can be negotiated between the buyer and the sellers in the purchase contract. The amount the seller can contribute will depend on the type of loan. Another way to save on closing costs is to have the lender give you a credit to cover out of pocket loan costs.

Joel Lobb
Senior Loan Officer
(NMLS#57916

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.com

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

Cash Out Refinance seasoning requirement on Kentucky Mortgage Loans

 Cash Out seasoning requirement on Kentucky Mortgage Loans for FHA, VA, Fannie Mae

Did you know that Freddie Mac is making a change to their Cash Out seasoning requirement effective March, 7 2023?

  The new guideline will require at least 12 months to have passed from the Note date of the mortgage being refinanced.  Please see below for the agency specific cash out seasoning requirements and let us know if you have any questions.   

 

 

FNMA:  6 months

 

FHLMC:  12 months (Effective 3/7/2023)

 

Kentucky FHA Mortgage Loan: 12 months

 

Kentucky VA Mortgage Loans:  210 days/6 months

Kentucky USDA Rural Housing Mortgage Lender: Kentucky First Time Home Buyer Programs For Home M...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky First Time Home Buyer Programs For Home M...: Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky USDA Rural Housing Streamline Refinance G... :  How does a Kentuck...

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/