100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: Common Kentucky Mortgage Myths Busted!My credit sc...

100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: Common Kentucky Mortgage Myths Busted!My credit sc...: Common Kentucky Mortgage Myths Busted! My credit score or fico score  is too low:  Most people’s credit scores are better than they think. A...

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/

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Mortgage Loan Requirements

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Mortgage Loan Requirements: Kentucky Rural Housing USDA loans require One of the biggest eligibility requirements is that the property be located in a designated rur...

Kentucky Mortgage Forbearance Guidelines

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky Mortgage Forbearance Guidelines for Fanni...: 

Conventional Mortgage Loans by Fannie Mae

Mortgage credit history for any mortgage which the borrower is obligated as borrower, co-borrower, or co-signer may be

considered acceptable if it meets one of the following:

 The borrower has made all payments due on time, prior to subject loan Note date, even though the loan was in

forbearance, or

 The borrower has not made one or more payments due, and the late payments or forbearance has been resolved

per one of these acceptable resolution plans:

Resolution Plans* Eligibility Requirements

Reinstatement ▪ Any missed payments must be made

▪ Funds to reinstate after application must be documented from eligible source

▪ Funds from the current transaction may not be used to reinstate mortgage

Repayment Plan ▪ Must have made 3 timely** payments under the repayment plan, or

▪ Repayment plan has been completed

▪ Funds from the current transaction may satisfy the existing mortgage in full

Payment Deferral ▪ Must have made 3 timely** payments after executing the deferral agreement

▪ Funds from the current transaction may satisfy the existing mortgage in full

Modification ▪ Must have made 3 timely** payments under trial modification

▪ Funds from the current transaction may satisfy the existing mortgage in full

Any Other Loss Mitigation Option ▪ Must have completed successfully or made a minimum of 3 timely payments

▪ Funds from the current transaction may satisfy the existing mortgage in full

*If loan was in forbearance, provide documentation from servicer showing the exit from forbearance into one of the

acceptable resolution plans.

** Payments cannot be made in advance to meet the 3 required payments.

 For purposes of determining acceptable mortgage payment history, missed payments under a COVID-19 forbearance

are not considered late payments.

 The above guidance does not apply to Freddie Mac Enhanced Refinance or Fannie Mae High LTV Refinance

transactions.

Fannie Mae FAQs: https://singlefamily.fanniemae.com/media/22326/display

Freddie Mac Bulletin 2020-17: https://guide.freddiemac.com/app/guide/bulletin/2020-17

Freddie Mac FAQs: https://sf.freddiemac.com/general/covid-19-selling-faq

VA ELIGIBILITY

 Borrowers must provide a Letter of Explanation (LOE) stating the circumstances behind the forbearance.

Documentation will be required to verify the items listed in the LOE have been resolved.

 If the forbearance was on a non-subject property, the forbearance must be resolved, and new payment (if

applicable) must be included in the DTI.

 A Veteran who was granted a forbearance and continues to make payments as agreed under the terms of original

note is not considered delinquent or late and will be treated as if not in forbearance status, provided that the

forbearance plan is terminated prior to closing.

Cash-Out Refinances

 Refinance of mortgages that are in a current forbearance status, where mortgage payments are not being made,

including mortgages under the CARES Act forbearance protection program, are not eligible. The forbearance plan

must be completed/terminated prior to closing.

 Borrower in forbearance with missed payments- Borrower must have made 6 consecutive months’ timely payments

post-forbearance, regardless of method of resolution of the forbearance.

 Missed payments due to COVID-19 forbearance cannot count toward seasoning. Borrower must have made six

consecutive monthly payments prior to the CARES Act forbearance or six consecutive payments will be required post

forbearance. In addition, loans that have been modified must meet seasoning requirements based on the modified

note first payment date. The new note date must be on or after the later of: The date that is 210 days after the date

on which the first modified monthly payment was due on the mortgage being refinanced, and the date on which 6

modified payments have been made on the mortgage being refinanced.

IRRRL Refinances

 Borrowers must be current at time of application (any skipped payments under a COVID-19 forbearance have since

been made).

 Borrower in forbearance with no missed payments- standard underwriting applies.

 Borrower in forbearance with missed payments- Borrower must have made 6 consecutive months’ timely payments

post-forbearance.

 Loans must still meet loan seasoning, fee recoupment, discount points, and net tangible benefit requirements.

 Missed payments due to COVID-19 forbearance cannot count toward seasoning. Borrower must have made six

consecutive monthly payments prior to the CARES Act forbearance or will need to make six consecutive payments

post forbearance. In addition, loans that have been modified must meet seasoning requirements based on the

modified note first payment date. The new note date must be on or after the later of: The date that is 210 days after

the date on which the first modified monthly payment was due on the mortgage being refinanced, and the date on

which 6 modified payments have been made on the mortgage being refinanced.

References VA Circular 26-20-25: https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-20-25.pdf

FHA ELIGIBILITY

*NOTE: FHA Guidance is permanent, not temporary, and applies where a Forbearance Plan was granted due to COVID-19, Presidentially Declared major

disaster or other hardship. This new guidance has been included in the updated 4000.1 Handbook.

Payment

History

Documentation

When any mortgage reflects payments under a Modification or Forbearance Plan within 12 months prior to case number

assignment, obtain:

 Copy of Modification or Forbearance Plan* and

 Evidence the payment amount and the date of payments during the agreement

* A copy of Forbearance Plan due to the COVID-19 National Emergency is not required. Must be able to determine the reason for

forbearance.

Borrowers that are or were in Forbearance

Maximum base loan amount for a Streamline of an owner-occupied primary residence and HUD-approved second home is

the lesser of:

 The outstanding principal balance of the existing mortgage (including suspended payments from forbearance) as of

the month prior to mortgage disbursement; plus:

o Interest due on the existing mortgage

o Late charges and escrow shortages

o MIP due on existing mortgage; or

 The original principal balance of the existing mortgage (including financed UFMIP)

 Less any refund of UFMIP

New FHA Insured Mortgage Eligibility

 Any active forbearance plan must be terminated.

 Borrowers granted forbearance but who continued to make all payments as agreed under the terms of original Note

are not considered delinquent. No additional payment seasoning post forbearance required.

 Borrowers granted forbearance but who did not continue to make payments require additional mortgage payment

seasoning post-forbearance that document satisfactory, consecutive monthly payments. See chart below for details:

Transaction Additional Requirements

Purchase Must make three consecutive payments* post-forbearance or

▪ If home sold prior to making three payments, must be manually underwritten

Cash-Out Refinance Must make 12 consecutive payments* post-forbearance

GNMA Seasoning: Loans that have been modified must meet seasoning

requirements based on the modified note first payment date.

No Cash Out Refinance Must make three consecutive payments* post-forbearance (six payments if

mortgage was modified after forbearance)

Simple Refinance Must make three consecutive payments* post-forbearance

*NOTE: The consecutive payments must be documented on the credit report and read by AUS to follow AUS approval.

Streamline Refinance  Missed payments under forbearance do not count toward mortgage

seasoning requirements

 If mortgage modified after forbearance, six payments under

modification required.

Non-Credit Qualifying

 At time of case number assignment, borrower has made three post

forbearance payments.

Credit Qualifying

 At time of case number assignment, borrower is still in mortgage

payment forbearance or has made less than three monthly payments,

and

 Has made all mortgage payments due within the month due for the six

months prior to forbearance

***ALL Streamlines: GNMA Seasoning: Loans that have been modified must

meet seasoning requirements based on the modified note first payment date.

References FHA Mortgagee Letter 2020-30:

  https://www.hud.gov/sites/dfiles/OCHCO/documents/2020-30hsgml.pdf

USDA ELIGIBILITY

 For each open mortgage, confirm the forbearance status and payment history.

 Borrowers who have a current mortgage that was placed in COVID-19 forbearance, but continued to make all

payments as scheduled, are not subject to additional seasoning.

 Purchases: Borrowers who missed any payments as allowed under the forbearance plan must have resumed

repayment of their mortgage loan for a period of at least 3 months prior to applying for a new loan.

 Refinances: the loan must have closed at least 12 months prior to the request to refinance, borrower must have

resumed making payments for a period of at least 3 months and have a total 180-day period of satisfactory

payments, excluding the time the loan was in forbearance.

References SFHGLP FAQs: https://www.rd.usda.gov/sites/default/files/RD-GRH-OriginationServicingFAQs.pdf

LOANS MADE TO BORROWERS POST-FORBEARANCE

The guidance herein is based on Agency and Investor eligibility. The below is a summary and not all-inclusive of Agency announcements. For full

Agency guidance see the Resources section under each program section below.

IN ALL CASES THE FOLLOWING REQUIREMENTS APPLY:

 BORROWER MAY NOT BE IN FORBEARANCE ON THE SUBJECT PROPERTY MORTGAGE OR ANY OTHER NON-SUBJECT PROPERTY

MORTGAGES AT THE TIME OF LOAN CLOSING.

 Explanation from Borrower(s) for forbearance reason and how any hardship has been overcome is required. If borrower faced hardship,

documentation supporting resolution is required. (e.g. borrower was furloughed for a time and is now back to work and employer

documentation supports).

 Payment history required for most recent 12-months to see payment made dates to determine if borrower skipped any payments.

 Documentation from servicer that forbearance has ended.

 Asset sourcing to document funds for any lump-sum payments made to reinstate/bring mortgage current- 2 months consecutive

statements required.

 If borrower entered into modification/work out plan rather than reinstating the forbearance, a copy of plan must be obtained. See

applicable Agency guidance for eligibility in this case.

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/

 

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Inspecting and Testing Requirements for a Kentucky FHA, VA, Conventional and USDA Mortgage loan.

 

Inspection & Testing Requirements for a Kentucky Mortgage 

Each Kentucky Home loan program for Conventional, FHA, VA and USDA government mortgage loans  has slightly different guidelines when it comes to water tests, septic inspections, and pest/termite inspections. Here's a quick comparison of the general guidelines for each program.

FHA vs. Conventional Loans – What is the Difference?

FHA vs. Conventional Loans – What is the Difference?: pOne of the most common questions from first-time buyers pertains to the difference between an FHA and a conventional loan, and which one is best for them. We'll clearly define each one and go into further detail about which one might be best for you in your pursuit of purchasing a home./p

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: What is the difference between Conventional, FHA a...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: What is the difference between Conventional, FHA a...:   Conventional vs. FHA vs. VA loans in Kentucky  I will outline below the credit score, loan limits, down payment and mortgage insurance req...

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying

 

Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying

Do you and your partner have very different credit scores? Great news! You may have access to more loan program options than you thought!

Here's the deal... All lenders pull FICO scores from each of the three credit bureaus to qualify a borrower. In situations with co-applicants, we will use the lower of the two middle scores for qualifying purposes. Historically, to do a Conventional Loan, both mid-scores would have to be above 620.

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying. This critical change may help many borrowers qualify and have increased advantages when putting an offer in on a home.

Long story short - we can help you now more than ever. Curious if this will help you? Reach out to me today, and we can investigate.

PS: These changes are effective September 18th, 2021 and there are still a lot of other variables to consider and guidelines are always subject to change. Let's start a conversation today! Message me for more details or to get started.

Mortgage Application Checklist of Documents Needed below  👇

W-2 forms (previous 2 years)
Paycheck stubs (last 30 days - most current)
Employer name and address (2 year history including any gaps)
Bank accounts statement (recent 2 months – all pages
Statements for 401(k)s, stocks and other investments (most recent)
federal tax returns (previous 2 years)
Residency history (2 year history)
Photo identification for applicant and co-applicant (valid Driver’s License







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/

NMLS Consumer Access for Joel Lobb 

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Joel Lobb, American Mortgage Solutions (Statewide)

Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”

When you’re ready to purchase a home in Joel's area, contact him at:
Phone: 502-905-3708
Email: Kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com