Kentucky FHA Acceptable Sources of Heat for Appraisals

Kentucky FHA Acceptable Sources of Heat for A FHA Mortgage Loan Approval

Many people ask me what types of heat sources are okay for homes where the borrower is using FHA to finance the property.

Here’s the information – and by the way, USDA (Rural Housing) uses FHA rules listed below as their heat source guidelines too.

General Guidelines

• All habitable rooms must have a heat source

• Certain areas of the country do not require a heat source if normal for the area (i.e., Hawaii, certain counties in Florida)

Wood Stoves & Solar Systems

• Acceptable with certification that they were installed according to manufacturer’s recommendations.

• Must ALSO have a conventional heat source in all living areas.

• Must also have a heat source to maintain 50 degrees F in rooms where plumbing is located.

(Example: electric baseboard heat in bathroom, kitchen and basement/crawl space where plumbing pipes are located.)

Floor Heaters

• Acceptable

• If needs repairs or insufficient heat source for home, will require upgrade to conventional heat system.

Non-conventional Heating Systems

• Space heaters or non-conventional heat sources must comply with local codes.

• If does not comply, conventional heating system must be installed.

Propane Tanks

• Must be located a safe distance from the home.

• Must have ownership of propane tank UNLESS only leased tanks are available and normal for the area.

• Propane furnaces located in crawl space or basement is not acceptable.

I’m sure I have not covered every possibility but give me a call if you have any questions or reservations about listing a home that you think may not have an acceptable source of heat.

https://birminghamappraisalblog.com/faqs/what-is-the-fha-rule-for-heating-and-cooling-systems/

Kentucky USDA Rural Housing Mortgage Lender: Credit Scores - Everything you need to know

Kentucky USDA Rural Housing Mortgage Lender: Credit Scores - Everything you need to know: https://www.kyjustice.org/topics/money-debt/credit-reports

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Louisville Kentucky First Time Home Buyer Programs

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Louisville Kentucky First Time Home Buyer Programs: Kentucky First Time Home Buyer Programs If you are a potential Louisville Kentucky First Time home buyer first time home buyer in ...

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Home Pest Termites Inspection Fees and...

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Home Pest Termites Inspection Fees and...:  Veterans Benefits Administration Circular 26-22-11 Department of Veterans Affairs June 15, 2022 Washington, D.C. 20420 Pest Inspection Fees...

Kentucky VA Home Pest Termites Inspection Fees and Repairs cost for Veterans

 Veterans Benefits Administration Circular 26-22-11

Department of Veterans Affairs June 15, 2022 Washington, D.C. 20420

Pest Inspection Fees and Repair Costs

1. Purpose. This Circular addresses the Department of Veterans Affairs policies regarding wood destroying pest inspection fees and repair costs.

2. Background. Historically, VA has authorized, as a local variance, that Veterans may be charged for a wood destroying pest inspection report in a limited number of states and territories.1 Localities susceptible to termites and other wood destroying pests, however, are on the rise. Accordingly, VA requires, as a Minimum Property Requirement, a wood destroying pest inspection report for certain properties located in an area on the Termite Infestation Probability Map2 where the probability of termite infestation is “very heavy” or “moderate to heavy.”3 If applicable, the VA Notice of Value (NOV) will be conditioned for this requirement and MPR repairs identified on a wood destroying pest inspection report must be completed prior to guaranty.4

3. Action. Effective immediately, VA is authorizing in advance, as a local variance, that Veterans may be charged wood destroying pest inspection fees, where required by the NOV. Veterans may also pay for any repairs required to ensure compliance with MPRs. Veterans are encouraged to negotiate the cost of the wood destroying pest inspection and repairs with the seller.

a. Documentation for Audit Purposes. An itemized invoice identifying the Veteran and the property is required to verify the cost on the Closing Disclosure Statement (CD). Lenders should include the invoice(s) to support the cost of the inspection and any repairs in the loan file if the loan is selected for Full File Loan Review (FFLR).

4. Paperwork Reduction Act. The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. § 3501-3520) and assigned OMB control number 2900-0515. In accordance with the Paperwork Reduction Act, VA may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number

1 38 C.F.R. § 36.4313(d)(1)(ix).

2 https://basc.pnnl.gov/images/termite-infestation-probability-map-adapted-2021-international-residential-code-irc-figure.

3 VA Lenders Handbook, Chapter 13, Topic 8.c.

4 38 U.S.C. § 3704(a), 38 C.F.R. § 36.4351.

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/

 

Louisville Metro Down Payment Assistance Program

 

Down Payment Assistance Program

Applications for this program will reopen on Monday, July 18.

The Louisville Metro Down Payment Assistance Program provides low- to moderate-income homebuyers with down payment and closing cost assistance for purchasing a home in the Louisville Metro area. Funds can be applied to the purchase of an existing or newly constructed home and are NOT limited to first-time homebuyers.

Down Payment Assistance is in the form of a partially forgivable loan with 0% interest. Homebuyers must occupy the purchased home as their primary residence for a period of 5 – 15 years, depending upon the amount of assistance received. By the end of that specified period, 50% of the loan shall be forgiven. The remaining balance is not due until the sale of that home.   The maximum amount of assistance per homebuyer will be no more than 20% of the purchase price, but also based on the need the individual buyer. Section 8 Homeownership clients are encouraged to apply.  

Goals of the Down Payment Assistance Program

• Encourage homeownership, throughout Louisville Metro, which is economical to low-moderate income consumers in order to assist in preventing future foreclosures.
• Encourage mixed-income neighborhoods and the de-concentration of poverty.
• Encourage homeownership in Metro’s Neighborhood Revitalization Strategy Area – Russell.
• Assist homebuyers in becoming informed consumers in order to successfully navigate real estate transactions and understand the responsibility of homeownership.
• Encourage reinvestment in Louisville Metro’s vacant and abandoned properties.

Eligibility

• Household income at or below 80% of the area median income.

Persons in Household	1	2	3	4	5	6
80% AMI	$47,450	$54,200	$61,000	$67,750	$73,200	$78,600

 

• Homebuyer(s) already pre-approved for a mortgage from a local financial institution.
• Homebuyer(s) credit - no unpaid collections, past due balances or un-discharged bankruptcies. (Exception: Medical collections up to $10,000.00.)
• Homebuyer(s) has at least $1,500 in savings.
• Homes eligible for assistance must meet the Home Ownership Value Limits below.

Existing Homes

1-unit	2-unit (duplex)	3-unit (triplex)	4-unit (fourplex)
$220,000	$249,000	$302,000	$374,000

 

New Homes

1-unit	2-unit (duplex)	3-unit (triplex)	4-unit (fourplex)
$257,000	$329,000	$399,000	$494,000

 

How to Apply

1. Complete homebuyer counseling (6-hr minimum) from a HUD-approved counseling agency. If applying with co-applicant, both must complete. Married couples must apply as co-applicants.
2. Apply to the Down Payment Assistance Program by clicking the green button below. Please allow 30 days for Metro review and verification.
3. Homebuyer(s) receives letter of eligibility, stating entrance or denial into Homebuyer Assistance Program.
4. Homebuyer(s) engages Realtor to assist in home search.
5. Upon an accepted sales contract, homebuyer(s) submits Home Purchase Packet, executed sales contract, and primary loan documents to Metro.
6. Metro staff underwrites the loan and presents to the Case Review Board.
7. Homebuyer(s) receives conditional commitment letter from Metro, stating the amount of assistance available to purchase that home.
8. Metro Office of Housing inspector coordinates with Realtor. Home must receive a passing inspection in order to receive Metro assistance.
9. Lender, Realtor, and Metro coordinate with the homebuyer to close on the home.
10. To apply now, click here

 LOUISVILLE, Ky. Low to moderate-income homebuyers in the Louisville Metro who are seeking assistance with down payments and closing costs can now apply for the city’s Down Payment Assistance Program.

Applications for the program reopened on July 18 for the purchase of an existing or newly constructed home, according to Louisville Metro Government.

A release states program funds are not limited to first-time homebuyers.

The funds will be used as a partially-forgivable loan with 0% interest, where homeowners will need to occupy their purchased home for a period of five to 15 years.

Following that period, 50% of the loan will be forgiven, and the rest of the balance will not be due until the sale of the home.

Officials said the Down Payment Assistance Program encourages home ownership in the Louisville Metro and assisting potential homebuyers in making real estate transactions to understand the responsibilities of homeownership.

The program is available to residents with a household income at or below 80% of the area median income, homebuyers who are already pre-approved for a mortgage and have no unpaid collections or past due balances on their credit.

For more information and how to apply, click or tap here.

Applicant Resources 

DPA Brochure Program Handbook
DPA FAQs

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky FHA Loans Are Offering New Flexibilities ...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky FHA Loans Are Offering New Flexibilities ...: FHA Offering New Flexibilities for Borrowers Previously Affected by Covid-19 FHA has announced that the guidelines are being updated when ca...

Kentucky FHA Loans Are Offering New Flexibilities for Borrowers Previously Affected by Covid-19

FHA Offering New Flexibilities for Borrowers Previously Affected by Covid-19

FHA has announced that the guidelines are being updated when calculating effective income after a reduction or loss of income for borrowers affected by the COVID-19 pandemic. These changes are effective for all case numbers on or after 09/05/2022, but may be implemented immediately.

ML 2022-09 reflects policies that will be incorporated into the 4000.1, providing updates for the following:

Primary Employment

Part-Time Employment

Overtime, Bonus or Tip Income

Employed by Family-Owned Business

Commission Income

Self-Employment Income

Additional Required Analysis of Stability of Employment Income

Additionally, flexibility when calculating income for borrowers who experienced a gap in employment and/or a reduction of loss of income due to the COVID-19 pandemic has been updated allowing a borrower to be employed in the same line of work for at least six months at the time of case assignment.

https://www.hud.gov/press/press_releases_media_advisories/HUD_No_22_129

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Zero Down Kentucky Mortgages

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Zero Down Kentucky Mortgages: ZERO DOWN HOME LOANS IN KENTUCKY There are a few programs that feature zero down payment in Kentucky for Home buyers : USDA and VA...