- 4 Things Required for a KY Mortgage Loan Approval
- Credit Scores Kentucky Mortgage Loan
- Down Payment Assistance Kentucky 2020
- Kentucky First-time Home Buyer Programs
- Kentucky FHA Mortgage Information
- Kentucky VA Mortgage Loan Information
- USDA Rural Housing Kentucky Loan Information
- Zero Down Kentucky Mortgages
- First-time Home-buyers in Kentucky
- Documents Needed Mortgage Approval in Kentucky
- Free Credit Score Booklet
- Do's & Dont's before closing:
- Closing Costs Kentucky Mortgage
- Lock Kentucky Mortgage Loan Rate
- Home Inspections Kentucky
- Accessibility Statement
Kentucky USDA Rural Housing Mortgage Lender: Current Underwriting Turn Times on Rural Housing U...: ATTENTION KENTUCKY USDA LENDERS!!! USDA Turn Times Are you interested in knowing the current status of USDA's turn times? USDA pr...
What home loan programs are available to first time home buyers in Kentucky?
1. FHA Loans in Kentucky
I do not have a lot of money for a down payment and have some credit issues in the past.
- Great for First Time Home buyers in Kentucky
- Low Down Payment of 3.5%
- Easy Credit Qualifying with credit scores of 500 and above
- 2 years removed from bankruptcy
2. USDA Loans in Kentucky
I live in a rural area and need financing for a home and have no money down in Kentucky for a home loan
- Great for those with Low to Moderate Income.
- Up to 100% Financing
- Flexible Underwriting Guidelines and Credit Qualifications
- Household Income & Property Geographic Limitations Apply
3. Conventional Loans in Kentucky
I am able to make a larger down payment and have a good credit score.
- Great for those with Moderate to High Income
- As Little as 5% Down Payment (only 3% for First-Time Homebuyers)
- 20% Down Payment Removes Mortgage Insurance Premiums
- Flexible Terms
4. VA Loans in Kentucky
I am an active member of the military or a veteran in Kentucky
- Designed to Provide Financing to American Veterans
- Up to 100% Financing
- No Monthly Private Mortgage Insurance (PMI)
- No minimum credit score
- 2 years removed from bankruptcy
5. FHA Manufactured Home Guidelines for Mobile homes in Kentucky
I want to purchase a manufactured home with land.
- Great for First Time Homebuyers
- Low Down Payment
- Easy Credit Qualifying
- Easy Refinancing
KHC requires an Affidavit of Conversion to Real Estate per KRS186A.297, when manufactured home is permanently affixed to land.
The Certificate of Title is surrendered.
If manufactured house has not been converted to real estate, then this can be done at closing.
The following items need to be uploaded in the Closed Loan Package:
A copy of the recorded affidavit and the surrendered title to the manufacture home.
A copy of the executed affidavit and title (to be surrendered) sent to the county clerk for recording.
If a new manufactured home, copy of the original certificate of origin from the manufacturer that is going to be delivered to the county clerk so that title can be ordered.
After title is received, affidavit is prepared for recording and title is surrendered.
Within 90 days or less from closing date, need original of newly recorded affidavit and coy of surrendered title.
Failure to send to KHC within timeframe could result in repurchase.
Affixations are not acceptable.
Do not record affixations with the mortgage.
Manufactured Housing Guidelines for Mobile homes in Kentucky
FHA and VA Loan with Manufactured Homes
Both new and existing manufactured housing is allowed.
FHA requires a foundation inspection by a structural engineer.
RHS Loans with Manufactured Home
KHC only allows new manufactured housing.
Dealer to property and set up like a stick built house.
Conventional Loans with Manufactured Home
Both new and existing manufactured housing is allowed with Conventional Preferred and Preferred Risk programs.
95% LTV / 105% CLTV.
No Structural Engineer inspection required for Conventional Loans
Kentucky Lender's Criteria: Debt-to-Income Ratios
From a Kentucky Mortgage lender's perspective, your ability to purchase a home depends largely on the following factors:
The front-end ratio is the percentage of your yearly gross income dedicated toward paying your mortgage each month. Your mortgage payment consists of four components: principal, interest, taxes and insurance (often collectively referred to as PITI) A good rule of thumb is that PITI should not exceed 31% of your gross income. If you make $100,000 a year, then your max house payment to include escrows for home insurance, mortgage insurance, property taxes would be $2583.00
The back-end ratio, also known as the debt-to-income ratio, calculates the percentage of your gross income required to cover your debts. Debts include your mortgage, credit-card payments, child support and other loan payments. Most lenders recommend that your debt-to-income ratio does not exceed 45% of your gross income. To calculate your maximum monthly debt based on this ratio, multiply your gross income by 0..45 and divide by 12. For example, if you earn $100,000 per year, your maximum monthly debt expenses should not exceed $3,750 with new mortgage payment. Utility bills, car insurance, cell phone bills, insurance payments does not factor into this ratio. Only bills listed on credit report and 401k loan and child support payment
If you are looking to purchase your first home, you have probably been doing your research about properties in your area, where you might be able to obtain a loan and how to qualify for it. A key term you may recognize from all that research is "debt-to-income ratio," which refers to the figure you get when you add up all your monthly debt payments and then divide that number by your monthly income. In laymen's terms, the debt-to-income ratio gives potential mortgage lenders an idea of how much your expenses are each month in comparison to how much you actually earn.
Depending on where you are in the home-buying process, you may have a good idea of where your credit score lands. As important as a strong credit score is, however, a favorable debt-to-income ratio is arguably of equal importance, and it may be just as closely scrutinized by any potential mortgage lender.
When you try and obtain a loan, expect possible lenders to review two types of debt-to-income ratio. The front-end ratio, or "housing" ratio, gives them an idea of what percentage of your monthly income would have to go toward home-related expenses, such as the mortgage, associated taxes and any additional fees, such as homeowner's association expenditures, that may apply.
The back-end ratio, on the other hand, takes a more cumulative approach and compares your monthly income to all your expenses, from the housing-related ones to school tuition, child support, car payments and any other financial obligations you may have.
The exact percentage your lender will look for will likely vary based on factors such as your credit score, how much you have in your savings account and how much you have to put down for your down payment. Most standard lenders, however, prefer to see something in the ballpark of 28 percent for a front-end ratio. For a back-end ratio, they will likely look for a percentage that does not exceed 36 percent. Federal Housing Authority lenders typically look for a front-end ratio of about 31 percent and a back-end ratio that does not exceed 43 percent.
Simply put, the most effective way to lower a high debt-to-income ratio and therefore make yourself more appealing to lenders is to pay off some of your debt. If you have a cosigner who may be willing to help you out with a loan, that could serve as an additional method of getting around a high ratio.
Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
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/
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Can you use Non-taxable income like Child Support, Social Security, Workers Compensation to qualify for a Kentucky Mortgage Loan?
You can use child support, social security, and workers compensation as long as it will continue for the next 3 years.
On a note for Child support, you have to show you have been getting the last 12 months consistently to use that income.
Another favorable option in using non-taxable income, is that you can gross it up to 115% to 125% in most cases to show you have more qualifying income.
Fannie Mae, USDA, VA, Conventional loan programs will let you gross up the income by 125%.
For example, if you grossed $1000 a month, then on a VA, USDA or Conventional loan you could have a qualifying income of $1,250 to qualify for more of a house payment.
FHA will allow for 115% grossing up of non-taxable income. So on a $1,000 gross monthly income, the max income used to qualify monthly would be $1,150.00
Some lenders may create overlays to these agency guidelines, so keep that in mind.
It is best to use in most cases the lowest income to qualify in my opinion so just be on the safe side.
see chart below for FHA, VA, USDA, and Fannie Mae Conventional loan guidelines.
|child support, Debt to Income Ratio, FHA Loans - Income Qualifications, income, non-taxable income,|
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