2014 Income Limits for the Kentucky USDA Rural Housing Single Family Guaranteed Loan Program

The 2014 Income Limits for the Kentucky USDA Rural Housing  Single Family Guaranteed Loan Program were published on February 12, 2014. 

The Ky USDA Rural Housing Guaranteed Underwriting System and the Income Eligibility calculator for Kentucky USDA Home Buyers have been updated with the new income limits. 

The new income limit changes will apply to all loans submitted through GUS on and after February 12, 2014.

Kentucky USDA Rural Housing 2014 Income limits can be found online at:

 http://www.rurdev.usda.gov/SupportDocuments/KY%20GRH.pdf

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Kentucky Mortgage Loan Approval for USDA, FHA, VA, and Fannie Mae with a previous short sale or foreclosure. How long do you have to wait?

Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan?   Kentucky Mortgage Short Sale: Conventional Loans Require: Minimum 2 years with restrictions up to 7 years 2 to 4 years - 80% maximum LTV 4 to 7 years - 90% maximum LTV 7 years and after allow for maximum standard financing Kentucky FHA and Kentucky VA Loans Require: 3 years, with exceptions possible for less time if borrower's credit and mortgage payments were in good standing prior and up to date of Short Sale   Kentucky Mortgage Foreclosure: Conventional Loans Require: 7 years, with exceptions considered between 3 to 7 years if significant extenuating circumstances exist Kentucky FHA and Kentucky VA Loans Require: FHA: 3 years, with exceptions possible for less time if significant extenuating circumstances exist VA: 3 years, with exceptions possible for less time if significant extenuating circumstances exist

Please contact me for a free mortgage pre-approval or with questions!

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

800 Stone Creek Pkwy, Ste 7,

Louisville, KY 40223

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com

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Interest Rate Lock for a Kentucky Mortgage Loan

Interest Rate Lock on a Kentucky Mortgage Loan.

What is a rate lock?

A rate lock is an agreement between you (the borrower) and us (the lender) that a specific interest
rate will be provided to you for a specific period of time (the rate lock period).

When is my rate locked?

We will confirm and lock your interest rate with your verbal or written authorization.

What if rates go up before I close my loan?

Once your rate is locked, we immediately purchase money from our investors for you at that specific
rate. As long as your loan application is approved and all the other terms and conditions or the approval
requirements are met, this money will be available to you at your loan closing regardless of
market conditions after you have locked your rate. If interest rates have increased, you are protected
and can be assured that your locked rate will be honored on your loan papers on the date of closing.
We will NOT ask you to pay a higher interest rate simply because the market has worsened.

If rates appear to be dropping, why shouldn’t I wait to lock a rate?

Ask yourself what would be more disappointing: locking a rate and finding that you may have missed
a lower rate or NOT locking your rate and finding that rates have increased? It is our objective as
advisors to assist you in determining an optimal time to lock an interest rate given our professional
assessment of market conditions as well as your objectives as our client. We may not be able to
catch the very lowest rate every time, however, trying to time the market is a risky game. Far too often
the market can and does spike sharply leaving many clients wishing they would have locked in a
rate. Keep in mind that if rates continue to fall, you can always refinance your loan, subject to our
Post-Closing Refinance Policy.

How soon can I refinance my rate after closing?

As lenders, our contractual agreement with our investors requires that the loans we originate stay on
their books for at least 120 days. If the loan is paid off within that period of time (i.e. through a refinance),
we must return the compensation we received for our services on the initial loan. While we
cannot prevent you from refinancing during the first 120 days, we can only ask you in good faith if
you would refrain from doing so.

Kentucky First Time Home Buyer Loan Programs

Kentucky First Time Home Buyer Loan Programs

What is a First Time Buyer Loan?

Many people dream of owning a home but the home loan process can be confusing for many first time home buyers. Mortgage lenders offer first time buyers with many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments, or reduced taxes.

FHA and VA Loans for First Time Buyers Apply Online

First time homebuyers often experience the most difficulty amounting a significant down payment and everyone should have the opportunity to buy a home. For this reason the Federal government has developed two loan programs to assist homebuyers that have a little or no down payment. These programs are called the Kentucky Federal Housing Administration (FHA) and the Kentucky Veteran’s Administration (VA). These programs are not solely intended for first time home buyers; your home loan advisor will be able to determine if you qualify and if so which program is acceptable for your needs. Kentucky FHA and VA loans can be especially advantageous when combined with a HFA or MCC first time homebuyer program.

Who is Eligible for a First Time Buyer Loan?

Kentucky First time home buyer programs are designed to help borrowers who may not have enough money to pay the full cost of the down payment or the closing costs on a mortgage. These programs make obtaining a mortgage more cost effective. There are even programs specifically for residents of each state. First time home buyer programs are available to those who have not owned a home for the past three years.

Community Home Buyer Programs

Kentucky  Community homebuyer programs reduce the down payment the borrower must pay to 3%, which must be the borrower’s own funds. The closing costs can be gift funds, a grant, or seller assistance up to 3% of sale price. This type of home loan requires the home buyer to take a class on home ownership in their state. Upon completion of the class, the homebuyer will receive a certificate that reduces the cash requirement and expands the qualification ratios. Community homebuyer programs have been making it possible for many people to have the opportunity to buy a home.

What is Escrow?

Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of an event. In simpler terms, escrow is where the transaction changes hands and prevents the seller from not receiving the money from the sale and prevents the buyer from not receiving the home that was purchased. Escrow is important to both buyers and sellers during the mortgage process.

Mortgage Credit Certificates

A Mortgage Credit Certificate or MCC from KHC -Kentucky Housing Corp is a certificate awarded by your local government agency authorizing the home loan borrower to take certain federal income tax credits. The credits awarded help to free up funds and make the monthly home loan payments more affordable for the homeowner. First time home buyers are typically the candidates eligible for an MCC but in special cases that you may discuss with your home loan advisor this requirement may be waived. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative.

Louisville Ky First Time Buyers Program

 First time buyer programs in Louisville can make securing a Louisville home loan easier and more affordable. Contact us at 502-905-3708 for your Louisville Ky  mortgage to begin your first time buyer loan.

Credit Scores for a Kentucky Mortgage

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Kentucky Housing Corporations KHC First Time Home Buyers Down Payment Assistance Zero Down Options for 2014

KHC First Time Home Buyers Down Payment Assistance Zero Down

Kentucky Housing Corporation (KHC) still has $4 million in Mortgage Revenue Bond (MRB) Special Funding available!  This funding is limited and available on a first-come, first-served basis.  

Effective with reservations on or after Monday, January 6, 2014, all households below $35,000 gross annual household income will qualify for the MRB Special Funding interest rates. The rate with DAP will be lowered and the requirement to demonstrate a need by having at least a 25% front ratio has been eliminated. 

Program guidelines:

• First-time home buyers, unless property is located in a targeted county.
• Interest rate is fixed at 2.5 percent without Down payment Assistance Program (DAP) or 2.75 percent with DAP.
• Maximum ratios 40/45%.
• Executed purchase contract.
• Existing or new construction property (purchase price limit $115,000).
• Regular and Affordable DAP available.
• FHA, VA, and RHS first-mortgage programs.
• 640 credit score and AUS approval.
• Gross annual household income limit of $35,000 for all household sizes.
• Follow the 45-day lock with current reservation extension policy.

• The lower interest rate is not guaranteed until the lender receives the updated reservation confirmation.

 Appy below for free for this program or call me below with your questions. 

joel lobb Louisville Mortgage Group License:  NMLS# 57916 I specialize in Kentucky FHA, VA, USDA, KHC, Jumbo and Fannie Mae mortgage loans in Ky. I have helped over 589 Kentucky families buy their first home and refinance their current mortgage for a lower rate; For the first time buyer with little money ...view more Email Me | Visit My Website (502) 905-3708

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Do you qualify for the Back to Work Program in Kentucky for home buyers with previous short sale or foreclosure less than 2 years?

Kentucky FHA HUD Back to Work Program for FHA Borrowers in Kentucky 

What is Back to Work?

FHA is continuing its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances.

Many borrowers experienced periods of recession related financial difficulty and/or credit impairment resulting from unemployment or a severe reduction in income. FHA recognizes the hardships faced by these borrowers, and that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.

For Purchase transactions with case numbers assigned on or after August 15, 2013 

Are borrowers with a foreclosure, short sale, or bankruptcy eligible for Back to Work?

The alternative guidance in Mortgagee Letter 2013-26 is effective for purchase applications with 

case numbers assigned on or after August 15, 2013 through September 30, 2016.

All delinquent accounts and indications of derogatory credit, including collections and judgments, 

bankruptcies, foreclosures, deeds-in-lieu, short sales, and other credit problems must be analyzed.

The lender must review the credit report and determine whether derogatory credit was the result of 

an Economic

Event:

• The borrower exhibited Satisfactory Credit prior to the Economic Event Onset;

• The borrower’s derogatory credit occurred after the Economic Event Onset, and

• The borrower has re-established Satisfactory Credit for a minimum of twelve (12) months.

Foreclosure, Short Sale, Deed in Lieu, Bankruptcy

In all cases, the lender must verify that the derogatory credit was the result of an Economic Event 

and document that a minimum of 12 months has elapsed since the date of the:

• foreclosure

• deed in lieu

• short sale

• discharge of Chapter 7 bankruptcy

Chapter 13 Bankruptcy

The lender must verify and document that

• the Chapter 13 bankruptcy was discharged prior to loan application and all required bankruptcy 

payments were made

on-time, or

• a minimum of 12 months of the pay-out period under the bankruptcy has elapsed and all required 

bankruptcy payments were made on time, and

• the bankruptcy was the result of an Economic Event

If the bankruptcy was not discharged prior to loan application, the borrower must receive written 

permission from the

Bankruptcy Court to enter into the mortgage transaction.

Important Back to Work Definitions

HUD announced several key terms that must be reviewed in accordance with this program.

Economic Event: an occurrence beyond the borrowers control that resulted in a Loss of Employment, Loss of Income or a combination of both which resulted in a loss of Household Income of 20% or more for a period of six or more months.

Onset of Economic Event: the month of the start of or loss of income.

Recovery from an Economic Event: the re-establishment of acceptable or satisfactory credit. Satisfactory Credit equates to no derogatory credit for any mortgaged or leased property in the 12 months preceding the mortgage application. This also includes any installment or revolving debt for the same period.

Borrower: “Borrower” includes all parties including primary and/or co-borrower as listed on the loan application.

Borrower Household Income: the income of all parties on the application or Household Members as listed from the previous Economic Event and derogatory credit.

Housing Counseling: Counseling from a HUD-approved housing counseling agency related to home ownership and meets acceptable requirements.

If you feel that you might qualify or have any questions regarding this new FHA Back to Work mortgage program, then please give us a call.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell

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What are the guidelines for using Alimony, Child Support, or Separate Maintenance income for A Kentucky Mortgage Loan Approval?

Alimony, Child Support, or Maintenance income may be considered only if evidence of all of
the following is provided for a mortgage loan approval:

• Payments are likely to be received consistently for the first three years of the 
mortgage; 
• A copy of the divorce decree, legal separation agreement, voluntary agreement, or 
court order specifying the amount of support and the period of time over which it will 
be received is required; and 
• Evidence that the funds have been received for the last 6 months using cancelled 
checks, deposit slips, Federal tax returns, or court records.

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