Louisville Kentucky VA Home Loan Mortgage Lender: How VA home loans Work

Louisville Kentucky VA Home Loan Mortgage Lender: How VA home loans Work:   How VA home loans Work page For veterans, active-duty service members and some spouses, VA home loans can be a great way into homeownershi...

Louisville Kentucky VA Home Loan Mortgage Lender: How VA home loans Work

Louisville Kentucky VA Home Loan Mortgage Lender: How VA home loans Work:   How VA home loans Work page For veterans, active-duty service members and some spouses, VA home loans can be a great way into homeownershi...

What effects your Kentucky Mortgage Rate for FHA, VA, USDA and Conventional Mortgage Loans?

 What Affects Your Interest Rate for a home loan in Kentucky?

There are really four key factors that will influence rates on your mortgage loan in Kentucky:

The market, your financial situation, the type of Kentucky Mortgage loan (FHA, VA, USDA Conventional), and the loan structure.

The Market for Kentucky Mortgage Rates

Mortgage Backed Security prices directly impact interest rates. Mortgage backed securities or mortgage

bonds are a market just like the stock market. So, when economic news affects these mortgage bond

 prices, home loan rates are directly influenced. One of the biggest influencers of this market is

inflation. Inflation or even expectations of inflation will negatively impact mortgage bond prices and

ultimately increase rates on your home loan in Kentucky

Financial Situation For Your Kentucky Mortgage Rate

Income – 

Your income gives you the ability to make

your monthly mortgage payments. Generally,

lenders require applicants to have a two-year stable

employment history. Applicants who have been at

their job for a shorter period of time should be in the

same field.

Savings – 

Your savings enable you to pay for the

upfront costs associated with purchasing a home.

These include the down payment, closing costs and

cash reserves.

Debts – 

The amount of debt you have will impact your

debt to income ratio. Debt payments consist of car

payments, student loans, alimony, required payments

on installment loans and required payments on credit

cards. They do not include rent, utility bills, mortgage

payments for loans being paid off, or payments on

credit card balances that you pay in full at the end of

the month. Lenders look at debt to income ratios to

determine how much home you can buy.

Credit and Credit Score

– If you want to be eligible for

the best mortgage rates, you will need to maintain a

credit score of 760 and above middle score of the 

Mortgage Fico Scores lenders pull through Equifax, Experian and Transunion

Not only will this excellent

score motivate the lender to lower your rates to get

you as a customer, you will have more choices about

which mortgages are available to you. Your overall

payment history on the debts you have can also impact

your ability to qualify for certain types of loans, which

can affect your interest rate.

Type of Kentucky Mortgage  Loan & Loan Structure

Loan Type 

– The type of loan will impact the rate

you can expect. There are many types of loans Kentucky Mortgage Loans.

Conventional, FHA, VA, USDA, and Jumbo loans

can all have different rates.

Occupancy 

– The best mortgage rates are

typically offered if you are purchasing a property

that is intended to be occupied as your primary

residence. Rates for second homes and investment

properties are typically higher.

Duration 

– The duration of the loan can affect

mortgage rates. A shorter loan period will usually

equate to a lower mortgage rate and a longer loan

will typically have higher rates.

Down Payment – 

A larger down payment can

impact interest rates. Putting more down will

decrease the risk for a lender and can improve

your interest rate. If you put less than twenty

percent down, certain types of loans require

mortgage insurance and this can also impact the

interest rates available.

Discount Points – 

In order to get a lower rate

some clients choose to pay discount points.

Basically, discount points are percentages of the

loan amount paid in cash at closing in order to

lower a rate.

Lock Term – 

The length of time you need to lock

in your rate can impact your rate. Typically, longer

term rates are more expensive.

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 Rural Housing Updated Guidelines for...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Rural Housing Updated Guidelines for...: 2021 Kentucky Rural Housing changes for income and property USDA has announced the publication of the revisions in Chapter 9 of the HB-1-355...

Down payment assistance to buy a home in Kentucky!

 There are various types of down payment assistance to buy a home in Kentucky with little or no money down!

Here are a few:

• Kentucky FHA loans - federal loan through the Federal Housing Authority-Credit scores low as 620 and gifts can be used or down payment assistance from government agency to meet the 3.5% down payment investment. No income limits but max loan currently is $356,000 in Kentucky for 2021

• Kentucky USDA loans - zero down mortgages for rural and suburban homeowners-640 credit score needed currently for most loans and has income limits and property location restrictions

• Kentucky VA loans - if military service or active duty, can buy a home with zero down with a 620 minimum credit score. No income restrictions and can buy a house anywhere as long as VA appraisal supports the purchase price. No max loan limits but must meet residual income requirements and Eligibility based off Certification of Eligibly Entitlement. Amount.

• Kentucky Housing Down Payment Assistance of $6000 can be used for FHA, VA, USDA or Conventional mortgage loans for their down payment requirements or to help with closing costs. Max income limits and loan limits for this program. 

KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP

• Purchase price up to $346,644 with Secondary Market.
• Assistance in the form of a loan up to $6,000 in $100 increments.
• Repayable over a ten-year term at 5.50 percent.
• Available to all KHC first-mortgage loan recipients.

Affordable DAP

• Purchase price up to $346,644​ with Secondary Market.
• Assistance up to $6,000.
• Repayable over a ten-year term at 1.00 percent.
• Borrowers must meet Affordable D​AP income limits.

​MORE ABOUT DOWN PAYMENT AND CLOSING COSTS

• No liquid asset review and no limit on borrower reserves.
• Specific credit underwriting standards may apply to down payment programs
• .​

SECONDARY MARKET FUNDING SOURCE

• First-time and repeat homebuyers statewide
• 30-year fixed interest rate
• Principal residence ONLY
• Purchase Price Limit:  $346,644
• Borrower must meet KHC’s Secondary Market Income Limits

Conventional Preferred Program

• Minimum credit score of 660
• 3 percent down payment
• Monthly mortgage insurance (charter coverage)
• All KHC DAPs applicable
• No minimum borrower contribution
• No reserves required
• 80 percent AMI income         

Conventional Preferred Plus 80

• Minimum credit score of 660
• 3 percent down payment
• Monthly mortgage insurance (standard coverage)
• All KHC DAPs applicable
• No minimum borrower contribution
• No reserves required
• Secondary Market Income limits apply

FHA

• Insured by the Federal Housing Administration
• 3.5 percent down payment
• All KHC DAPs applicable
• Upfront and monthly mortgage insurance
• Minimum credit score of 620

Refinance Options (Available only through Secondary Market)         

• Credit qualifying Streamline Refinance and Rate/Term Refinance
  • Insured by the Federal Housing Administration
  • Cash back to borrower not to exceed $500
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 620         

VA

• Guaranteed by the Veterans Administration for qualified military veterans
• No down payment if the property appraises for the sales price or greater
• All KHC DAPs applicable
• Minimum credit score of 620
• No monthly mortgage insurance payments

​ Refinance Options (Available only through Secondary Market)         

• VA IRRRL
  • ​620 minimum credit score
  • No appraisal required
  • 30-year term
  • VA existing loan

RH​​S

• Guaranteed by Rural Housing Services (RHS)
• Home must be located in a rural area as defined by RHS
• No down payment if the property appraises for the sales price or greater
• All KHC DAPs applicable
• Upfront and monthly mortgage insurance
• Minimum credit score of 620

Refinance Options (Available only through Secondary Market)         

• RHS Streamlined-Assist Refinance Program
  • 620 minimum credit score
  • No appraisal required
  • Must have made timely mortgage payments for the last 12 months
  • 30-year term
  • RHS existing 502 guaranteed loan​

Home Buyer Tax Credit​

KENTUCKY HOUSING CORPORATION
2021 SECONDARY MARKET
GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS
Effective May 1, 2021

Secondary Market Purchase Price Limit — $346,644

KENTUCKY HOUSING CORPORATION 2021 SECONDARY MARKET GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS

Read more about each program by hitting the links above. 

There are federal, state and local assistance programs as well so be on the look out.

If you want a personalized answer for your unique situation call, text, or email me or visit my website below:

 

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916


American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364



Text/call: 502-905-3708

email: kentuckyloan@gmail.com

https://kentuckyloan.blogspot.com/

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Down Payment Assistance Kentucky 2021 Kentucky Hou...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Down Payment Assistance Kentucky 2021 Kentucky Hou...: KHC is used for mostly applicants in urban areas of Kentucky that don't have access to USDA or other government agencies to buy...

KENTUCKY FHA LOANS VS CONVENTIONAL FINANCING IN KENTUCKY

KENTUCKY FHA LOANS VS CONVENTIONAL FINANCING IN KENTUCKY



Conventional Mortgages.


Banks consider their interests first and protect them by not lending to people they considers poor risks. What constitutes a "poor risk" varies from lender to lender, but the general gist would be anyone whose credit score is 619 or less. Other attributes, such as income level, length of time in current dwelling, and previous loan history all factor into a private lender's decision. As always, the more anyone does notneed the money, the higher the degree of likelihood the bank will lend to that person.


Kentucky FHA Loans


Mortgages that come from the Federal Housing Administration are easier to get than private mortgages, but they will usually have a higher interest rate over the long haul than private mortgages. The FHA has its root during Franklin Roosevelt's administration during the Great Depression. Thousands upon thousands of Americans had either lost their homes in the debacle or were about to lose them. Shorn of their credit rating and nearly penniless, they had no hope of qualifying for loans even if the banks were in a position to lend, which many were not.

The FHA oversaw the lending of money to these desperate people and insured the debts, which contributed to the overall consumer confidence, the lack of which had contributed to the economic devastation of the Great Depression. In the modern era, the practice of the FHA is to oversee the lending money to people who have at least a 500 credit score. 

If the person's credit score is from 500-579, then the person must put 10 percent down. If the person's credit score is from 580-619, then the person must put down 5 percent. This is in contrast to standard mortgage loans where the person is allowed, in certain circumstances, to put down as little as 3 percent.


The Mortgage Insurance Difference on for FHA and Conventional Loans in Kentucky

There are three key differences:


Standard mortgages require you to have personal mortgage insurance, or PMI, if the homeowner has less than 20 percent equity in the home.

Standard mortgages require only PMI. FHA loans require borrowers to have two kinds of insurance: the up front mortgage insurance premium, or UFMIP, and the mortgage insurance premium, or MIP.

The cost of PMI is tied to a borrowers credit score whereas FHA insurance is not.


While FHA insurance remains the same cost regardless of a borrower's debt-to-income ratio, it is the more expensive of the two options. Still, the less expensive standard PMI is unavailable to borrowers whose credit is lower than 620. Also, PMI ismore expensive when a borrower's credit is between 620 and 680. A borrower is allowed to cancel PMI before the expiration of the term, too, whereas an FHA borrower is not allowed to do so.

In both standard and FHA loans, the insurance in question protects the lender more than the borrower. Basically, it's there to make sure the lender gets paid in the case of a default. Remember, even though the FHA is a government program, the money comes from private lenders. The FHA insurance makes it more palatable for those lenders to lend to people without good credit because it protects them from loss.


The Final Word


When borrowing money for a mortgage, the borrower should carefully weigh the pros and cons of each kind of mortgage before proceeding. Of course, with solid credit, good income, and a good payment history, it probably wouldn't be necessary to take out an FHA loan, but every case is different, and borrowers should consider all options before "signing on the dotted line."

Conventional vs. FHA vs. VA loans

	CONVENTIONAL LOANS	FHA LOANS	VA LOANS
Minimum Credit Score	620	500 with 10% down; 580 with 3.5% down	No minimum score
Loan Limits	$548,250 to $822,375 for conforming loans	$356,362 to $822,375 for single-family homes	No loan limits
Down payment Minimum	3%	3.5%	No down payment required
Extra Fees	PMI required with down payment of less than 20%	Upfront mortgage insurance of 1.75% and ongoing fee of 0.45% to 1.05%	Upfront funding fee of 1.4% to 3.6%

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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 FHA Loans and Conventional Mortgage Loans

What is the difference between Kentucky FHA Loans and Conventional Mortgage Loans?

 You know that two of the most popular mortgage options available are FHA and Conventional, but you no doubt have some clients who need help understanding each loan type’s finer details and benefits. 

 Here’s a quick, simple three-bullet comparison that you can provide for your clients: 

 Low down payments: 

Both options feature low down payment options (eligible borrowers can put down as little as 3.5% for FHA and 3% for Conventional), but it can be easier to qualify for an FHA loan, as lower credits scores are accepted and there are less restrictive debt-to-income ratio requirements. 

Residence type: 

You can only use an FHA loan on a primary residence;  a Conventional mortgage can be used for primary homes, vacation homes, or investment properties.

 Mortgage insurance: 

Mortgage insurance is required on all FHA loans, regardless of down payment size. You can avoid paying private mortgage insurance on a Conventional loan if you have a 20% down payment. But if you don’t, PMI drops after you reach 22% of your home’s equity.

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/