I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 900 Kentucky families buy their first home and refinance their current mortgage for a lower rate; Kentucky First time buyers $0 down still available with down payment assistance with KHC. Free Mortgage applications same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com
NMLS 57916 NMLS ID 1364
Kentucky Conventional Mortgages – These mortgages are not insured by the government, but they do conform to the government standards known as Freddie Mac and Fannie Mae. One thing to note about a conventional mortgage is that they require mortgage insurance unless you can put down at least 20%; once the loan’s principal balance drops below 78% of the home’s value, you no longer have to pay mortgage insurance.
Qualifying credit: 620-740
Loan terms: 15 or 30 years
3% Down Payment minimum
Kentucky FHA Loans – An FHA loan is insured by the Federal Housing Administration, who guarantees a portion of the loan should the borrower default. This minimizes the lender’s risk and allows them to expand their borrowing parameters to the benefit of first-time homebuyers who might not have large savings or strong credit. Keep in mind that closing costs will be much higher for this type of mortgage and the home must meet rigorous appraisal standards.
Qualifying credit: 500 minimum with 10% down payment and 580 score higher 3.5% down payment
Kentucky VA LoansIf you are an active duty military personnel (or veteran in California and Hawaii), you may be eligible for this mortgage plan backed by the Dept. of Veteran Affairs. Income and credit requirements are significantly lower than other loans, making the approval process much easier, but be prepared to face longer closing periods than you would experience through a private lender.
Qualifying credit: No minimum Credit score for va loans
Outstanding debt---debt ratios usually around 45% on the backend
Credit background-----looking at last 2-4 years mostly in regards to bankruptcies, foreclosures, short-sales,
Employment history--2 year work history not really the same job but same line of work and pay being consistent.
The newest version of the FICO credit score unveiled on Thursday will have a broader view of how you manage your debt and will boost as many scores as it will hurt.
Instead of relying on just a snapshot of your financial behavior, the new score, called FICO Score 10, will be able to peer into your financial habits for the past 24 months and determine – based on that history – if you’re a risky borrower.
About 40 million Americans will see their FICO score increase by 20 points or more because of the change, while another 40 million will experience a decline by at least 20 points, said Dave Shellenberger, vice president of product management at FICO. Another 30 million will notice smaller changes either way.
“These are the most predictive scores FICO has developed to date,” Shellenberger told Yahoo Money. “They really do an excellent job of reinforcing good consumer financial habits – making payments on time, not running up balances, taking out credit only when you need it. Those types of behaviors are rewarded strongly.”
FICO unveiled a new credit score that will help the credit scores of some Americans and hurt some as well. (Photo: Getty Creative)
Who will the new FICO score hurt?
The new score will judge certain risky behaviors more harshly.
For instance, if you build up balances on your credit cards over the last 24 months, that will hurt your score. Before, the FICO score could only see your current balance, and not the history of your growing credit card debt.
Another potential red flag is personal loans. If you consolidated credit card balances into a personal loan and then subsequently racked up new credit card debt, your score would reflect a riskier borrower.
This is especially timely, given the rise in personal loans over the last five years and increases in credit card debt, according to Matt Schulz, chief industry analyst with CompareCards.com.
“Personal loans have grown to be such a popular tool, it’s good that FICO is going to address that,” he told Yahoo Money. “We certainly have seen a lot of credit card debt move into the personal loan space.”
Building up credit card debt over time will hurt your score more under the new FICO version. (Photo: REUTERS/Fayaz Aziz)
Who will the new FICO score help?
The new score will be more forgiving of other behaviors that may be considered risky by earlier score versions.
For example, if you run up your credit card balances over Christmas or on a summer vacation, but it’s a one-time spike, that won’t hurt your FICO 10 score as much. That’s because the model can look back on historical balances and see this is not a consistent pattern.
“In the past, the FICO score would focus on the most recent data,” Shellenberger said. “FICO 10 gives a more holistic picture that can help during an aberration. That sudden spike’s impact on your score softens considerably.”
Change ‘bound to happen’
A number of changes in the credit landscape prompted FICO to rebuild its score, an undertaking the company does every five years or so. Its score is the most widely used by lenders to determine who to lend to and at what interest rate.
The new score now utilizes so-called trended data in a person’s credit report that shows a person’s credit performance over the last two years. It also provides more granular data, such as the amount you paid toward your credit card.
Previous FICO scores didn’t take into account this trended data, but its competitor – VantageScore – uses the data in its latest score version.
FICO 10 also reflects major changes in credit reports in the last few years due to regulations and settlements. Tax liens, judgments, and medical collections paid by insurance have been removed from credit histories altogether, while defaulted medical debt can’t show up on a report for at least six months.
“This was bound to happen,” John Ulzheimer, a credit expert who formerly worked at FICO and Equifax, told Yahoo Money. “When you take away highly predictive attributes, the scoring models are going to more heavily weigh other attributes that haven't been watered down or removed from consumer credit reports.”
If you pay your bills on time and keep credit card balances low, your credit score will still be high, even under the new FICO score. (Photo: Getty Creative)
Same old credit score rules apply
No matter which FICO score is used, the three pillars of maintaining a high credit score remain the same:
Pay your bills on time, all the time.
Keep balances on your credit cards well below their limits.
Don’t apply for too much credit, too often.
“If you do these three things over and over again,” Schulz said, “over time your credit will be just fine.”
Janna is an editor for Yahoo Finance. Follow her on Twitter@JannaHerron.
What do I need to get approved for a Rural Housing Loan in Kentucky?
You really need to look at the four following items below:
Credit Score: They typically want a 640 credit score with no bankruptcies or foreclosures in the last 3 years. KY USDA Loans are initially ran thru GUS (Guarantee Underwriting System), an underwriting approval engine online that Kentucky USDA Mortgage lenders use to tell us how much you are qualified for based on the income, assets, property, and credit provided. Most lenders will want an Approved Eligible. If your score is below 640, you will automatically get a refer eligible which most lenders will not do.
Homeownership: You cannot currently own another home with a USDA loan but there are waivers granted if you can show the current living arrangements are not suitable and safe for your family.
Income: Typically, you cannot make more than $86k approximately for a household family of four, and up to $115k for a household family of five in most Kentucky counties. Some Kentucky Counties are more but not much.
Location: Kentucky has 120 counties, and USDA is not allowed in the following KY Counties: Jefferson, Fayette (whole county) and parts of McCracken, Boone, Kenton, Campbell, Bullitt, Daviess, Warren, Franklin and Christian counties. The best thing to do on the location is tell me an address and I can look it up for you.
VA loans are hands-down the preferred choice for those who qualify searching for a competitive loan program with no money down. VA lending guidelines are similar to those with other loan types and are approved and documented in much the same fashion as conventional loans. However, VA loans do have specific requirements that make the program unique and do have additional requirements. Here is a list of some common questions.
Since the VA guarantees my loan, does that mean I’m guaranteed a VA loan? No, the VA guaranty is to the lender approving your VA loan. As long as the lender approves your loan using established VA guidelines, should the loan ever go into default, the lender can receive compensation of 25 percent of your loan amount. Lenders will still review your income and credit amount other requirements before issuing an approval.
What are “non-allowable” closing costs? The VA restricts certain closing costs that may be charged to and paid for by the veteran. Your VA lender can provide you with a list of these restricted fees along with other charges that you may be responsible for.
What credit score does the VA require? Credit scores, a 3-digit number reflecting your current credit profile, are not required by the VA. However, most VA lenders do require a minimum credit score with lenders asking for a score to be at or above 640.
How do I know if I qualify for a VA loan? VA lenders must review your certificate of eligibility to determine whether or not you’re eligible for a VA loan. However, basic requirements ask that you have more than 180 days of active duty service, an honorably discharged veteran, served six years in the National Guard or Reserves or the spouse of a service member who died as a result of a service-related injury.
What types of loans does the VA offer? All VA lenders provide loan choices in both fixed rate and adjustable rate loans. Most lenders offer fixed rate terms of 10, 15, 20, 25 and 30 years. Adjustable rate mortgages are typically issued as hybrids, where the initial rate is fixed for a predetermined period before changing into a loan that can adjust annually.
What is a funding fee? The funding fee is an insurance premium that finances the VA guarantee on your loan and is expressed as a percentage of the amount borrowed. This percentage can vary based upon loan type, equity and other loan characteristics but the funding fee for a first time purchase with no money down is 2.3 percent of the loan. The funding fee may be rolled into the loan amount in lieu of paying out of pocket. Most borrowers choose to roll the fee into the loan.
Do all lenders offer VA loans? VA loans are typically offered by most lenders but it’s important to work with a lender that is an approved VA lender. An approved VA lender is authorized to process, underwrite and fund a VA loan. It’s important that you work with a lender with extensive VA experience to help you navigate your way through the VA approval process.
Can I use a VA loan more than once? Yes, you can use a VA loan more than once as long as your original entitlement is restored. Your entitlement is restored when you sell your house and pay off the existing VA home loan.
What is my entitlement? The entitlement issued today is $36,000 and the VA will guarantee a loan up to four times that amount, or $144,000. For loans above that, the VA guarantee will be 25 percent of the loan amount up to $417,000. In certain “high cost” areas, the guarantee and maximum loan amounts are g
Your credit score measures your risk of paying late or defaulting on a loan. Lenders use credit scores along with the rest of your loan information to measure your likelihood of paying back the debt on time. Credit scores allow mortgage companies to use software programs called automated underwriting systems, or AUS, to determine if the amount of risk is acceptable for the loan program requested.
Credit Bureaus
The three major credit bureaus are Equifax, Experian and TransUnion. Lenders are encouraged to report loans and payment history to the credit bureaus on a monthly basis. When companies need to examine a potential borrower's payment history, they buy a credit report using the borrower's name, address and Social Security number. Each credit bureau calculates the credit score differently. This is why the exact same information can be on all three credit reports and they all report a different credit score.
Factors that Affect Credit Scores
Many factors affect your credit score. Making your payments on time every month is one important factor. Payments made more than 30 days late will lower your credit score. Collections, judgments, tax liens, bankruptcy and foreclosure can have devastating effects on your credit score. Each time you authorize someone to look at your credit that can lower your credit score as well.
Raising Your Credit Score
One misconception is the belief that paying off credit cards will raise your credit score. The credit bureaus want to see your ability to manage ongoing credit without missing payments or using the entire credit line. Pay down your credit cards so the balances are between 30 to 45 percent of the total available credit line. The older the credit line, the better. If you close a credit card, close the newest ones first and keep the older ones.
Finding the Middle Score
Mortgage lenders require access to all three credit bureaus for each borrower. They use the mid-credit score. If your three scores were 780, 776 and 790 they would use the middle of the three scores, in this case 780. They would not average the scores by adding the three numbers together and dividing the sum by three.
Minimum Credit Score Requirement
In January 2010, the Federal Housing Authority, or FHA, began requiring a minimum 580 credit score for any FHA loan with less than a 10 percent down payment or equity if the loan is a refinance. Conventional loans require a minimum credit score of 620. Lenders are allowed to require their own minimum credit score requirements beyond what the mortgage investors and insurers require. Having the required score does not guarantee loan approval; it is only one factor that lenders consider when approving a loan.
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
