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
Pages
- 4 Things Required for a KY Mortgage Loan Approval
- Down Payment Assistance Kentucky 2024 Kentucky Housing Corporation KHC
- Credit Scores Required For A Kentucky Mortgage Loan Approval in 2024
- 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
- Home
- Accessibility Statement
- Legal / Privacy Policy / Accessibility Statements
Homeownership doesn’t mean you need perfect credit. Some people can buy a home with a 620 credit score.
Kentucky USDA Rural Development Single Family Housing Guaranteed Loan Program
Kentucky USDA Rural Development Single Family Housing
Guaranteed Loan Program
APPLICANT BENEFITS
100 percent financing available with no down payment required. Eligible repairs and
closing costs may be included in the loan up to the appraised value of the property.
Upfront guarantee fee may be included in the loan amount above the appraised value.
Existing or new construction homes including all Planned Unit Development’s (PUD’s) are
eligible.
Condominiums may be eligible.
30 year loan terms with fixed interest rates.
No pre-payment penalties.
Satisfactory credit and qualifying ratios apply. Nontraditional credit histories may be
eligible.
APPLICANT REQUIREMENTS
The following information is not all inclusive. For complete information refer to RD
Instruction 1980-D, supplemented by applicable Administrative Notices (AN) available
online at http://www.rurdev.usda.gov/RegulationsAndGuidance.html. http://www.rurdev.usda.gov/RegulationsAndGuidance.html.
APPLICANT ELIGIBILTY
The applicant must:
Be a U.S. Citizen, legally admitted as a permanent resident, or be a qualified alien.
Have the legal capacity to incur the loan obligation.
Be unable to secure credit with rate and terms reasonable to the applicant without a
guarantee from the Single Family Housing Guaranteed Loan Program (SFHGLP).
Not own a home within the local commuting area at the time of loan closing. Applicants that
do own a home that is structurally unsound or functionally inadequate, or is located outside
of the local commuting area may still be eligible for guaranteed loan consideration.
Occupy the home purchased in an eligible rural area as their permanent primary residence.
Have stable and dependable income to ensure repayment ability. Households may not
exceed the moderate income limit established for the applicable rural area.
Have an acceptable credit history that demonstrates the willingness and ability to meet
financial obligations as they become due. If applicants exhibit unacceptable credit per RD
Instruction 1980-D, section 1980.345(d) the approved lender may still consider the
applicant if documented evidence of strong compensating factors as outlined in section
1980.345(d)(3) exists.
ANNUAL INCOME LIMITS
Annual income includes the total gross income of the applicant, co-applicant, and any other
adult (age 18 and up) household members.
Adjustments to annual income may be deducted for program eligibility determination.
Deductions may be made for dependants, eligible annual childcare expenses, disability
expenses, and annual medical expenses for elderly families. Please discuss eligible
deductions with your SFHGLP contact.
Income limits are published for each county as an Exhibit to RD Instruction 1980-D and are
available online at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
REPAYMENT ABILITY: DEBT/INCOME RATIOS
Repayment ability is determined by calculating the following ratios:
- PITI (Principal, Interest, Real Estate Taxes, and Homeowner Insurance): The total PITI
payment divided by the repayment income must be 29 percent or less.
- Total Debt (TD): The PITI payment plus all other monthly debt obligation payments
divided by the repayment income must be 41 percent or less.
Repayment ratios that exceed 29 and/or 41 percentmay be approved by Rural
Development when a ratio waiver request is provided by the approved lender. The ratio
waiver must document and provide evidence of strong compensating factors to support the
request. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012
1400 Independence Ave., S.W. Washington D.C. 20250-0784
202.720.1452
Examples of strong compensating factors include but are not limited to:
- Current rent/housing payment is equal to or less than the proposed PITI.
- Applicant has a history of devoting a similar percentage of income to housing expense
similar to the PITI over the previous 12 months.
- Strong credit score and repayment history.
- Reserves are available post loan closing, which evidence the applicant’s ability to
accumulate savings.
PROPERTY REQUIREMENTS
ELIGIBLE RURAL AREA
The property must be located in an eligible rural area as defined in 7 CFR 3550.10 as:
1. Open country which is not part of or associated with an urban area.
2. Any town, village, city or place, including the immediate adjacent densely settled area,
which is not part of or associated with an urban area and which:
a. Has a population not in excess of 10,000 if it is rural in character, or
b. Has a population in excess of 10,000 but not in excess of 20,000, is not contained within
a Standard Metropolitan Statistical Area, and has a serious lack of mortgage credit for
very low, low and moderate income households as determined by the Secretary of
Agriculture and the Secretary of HUD.
Property eligibility is available online and through GUS.
EXISTING HOMES
Properties must meet HUD Handbooks 4150.2 and 4905.1. An FHA Roster appraiser or
licensed residential appraiser deemed qualified by the approved lender may certify to this
determination.
A separate home inspection report prepared by the appraiser or a home inspector deemed
qualified by the approved lender is an acceptable option to ensure properties meet
minimum standards.
Homes must be structurally sound, functionally adequate and in good repair, or will be
improved to meet good repair.
There are no thermal performance standards for existing homes.
Private water systems/wells: The local health authority or state certified laboratory must
perform a water quality analysis, which must meet state and local standards.
Private septic systems: The septic system must be free of observable evidence of failure. An
FHA Roster appraiser, government health authority, licensed septic professional or
qualified home inspector may perform the septic system evaluation.
Termite: If required by the lender, appraiser, inspector, or State law, a pest inspection must
be obtained to confirm the property is free of active termite infestation.
Repairs: Any repairs necessary for the dwelling to be structurally sound, functionally
adequate and in good repair must be completed prior to the request of the loan note
guarantee. Exception: Escrow accounts that meet the requirements of RD Instruction
1980-D, section 1980.315 are allowed for exterior weather delayed repairs. When eligible
escrow accounts are established per section 1980.360(2)(ii) the loan note guarantee will be
issued without the repairs complete.
Existing homes have been completed for more than 12 months or have been completed for
less than 12 months but have been previously occupied. USDA Rural Development Single Family Housing Guaranteed Loan Division October 2012
NEW CONSTRUTION
Evidence the home was built in accordance with certified plans and specifications (e.g.,
International Residential Building Code, CABO, BOCO, etc.) must be obtained through an
eligible building permit, certificate of occupancy, or certification for a qualified individual or
organization that reviews plans and specifications.
Evidence of construction inspections performed throughout the project in accordance with
section 1980.341(b)(2) must be retained. Acceptable documentation includes an eligible
certificate of occupancy or copies of three inspections performed: (1) inspections prior to
footing and foundation poured, (2) inspections of plumbing, electrical, and mechanicals
before the shell is enclosed, and (3) a final inspection will meet requirements.
Evidence of a builder’s warranty. Minimum one year issued by the builder. If the builder
has offered a 10 year insured builder’s warranty acceptable to the Agency, this may be
accepted and evidence of construction inspections will be waived.
Thermal performance requirements must meet the 2006 IECC code. An eligible building
permit, certificate of occupancy, final inspection, or 10 year insured builder’s warranty is
acceptable evidence this requirement has been met.
New construction homes have been completed (as evidenced by a certificate of occupancy)
for less than 12 months and have never been occupied.
New manufactured homes must be purchased from an approved dealer –contractors (your
SFHGLP contact can provide a list of those approved in your state). A unit is considered
new if the purchase agreement is dated within 12 months of the date the unit was
manufactured. The date of manufacture is available on the factory installed plate on the
unit.
LOAN REQUIREMENTS
LOAN PURPOSES
Loans must be secured by a first lien on real property in an eligible rural area.
Loan funds may be used to:
Purchase an existing or new construction (stick built, modular, or manufactured) home.
Purchase or pay off a site as part of a new construction package.
Purchase and improve an existing home. Improvements must be complete before a loan
note guarantee will be issued. Exception: Escrow accounts are allowed for weather delayed
exterior repairs only.
Include eligible loan fees, including legal fees, title services, and eligible closing costs.
Refinance existing Section 502 Direct and Guaranteed loans. If only the principal balance
and the guarantee fee will be financed, no new appraisal is required. If the applicant wishes
to include eligible closing costs into the loan, a new appraisal is required. A new appraisal is
always required for Section 502 Direct loan refinances.
LOAN LIMITS
The maximum loan amount is 100 percent of the appraised value plus the upfront
guarantee fee.
Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Zero Down Kentucky Mortgages
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: 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 ...
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Credit Scores Required For A Kentucky Mortgage Loa...
What is a Good Credit Score for a Kentucky FHA, VA, USDA, Fannie Mae Conventional KHC Mortgage Loan Approval?
What is a Good Credit Score?
Your credit score is a numerical representation of your credit report. This three-digit number is like a badge that predicts risk, credit responsibility and determines your interest rates if you borrow money from lenders much like your CLUE Report. While you will be able to get a copy of your credit report you may not find this numerical key listed. Think of your credit score like the cliff notes version of your credit report. There are a few different measures of credit scores between divisions. Based on their own systems different scorers might view certain numbers in many ways.
Having a good credit score is great, but if you don’t know how to use it you could be missing out on some crucial credit building. Credit scores are used in varying ways by lenders and banks. One thing your credit score implies is how likely you are to pay back debt. Basically it announces how reliable you are as a borrower. People with good credit scores are more likely to pay back funds that they borrow while those with lower scores aren’t so reliable. Lenders like reliable borrowers, and good credit points them out.
In order to build and maintain good credit you must first know how your score is determined. Once you know what goes into a credit score you can begin building your credit or nursing your score towards higher digits. Credit scores are based on your financial history only, and laws prevent your score being affected by things like race, gender, age and where you live. What is included are items such as your payment history, your current credit debts, age of your credit history, new credit items added to your accounts and types of credit used.
- Payment history (35%) – How many on-time payments you’ve made, missed, defaulted and past due items
- Current amount owed (30%) – How much you currently owe – if you owe a large amount this could negatively affect your score
- Age of credit history (15%) – The average length of your credit accounts and time since last activity
- New credit (10%) – The number of new credit items on your accounts
- Types of credit (10%) – The kinds of credit accounts are you currently maintain
Many people avoid credit based on all the negatives they’ve heard against it, but neglecting your credit score hurts your chances of being able to make major purchases in the future. The best way to build credit is to use credit, and forming the following good credit habits early will pull your low score to higher ground.
- Pay bills on time – This is the easiest and best way to boost your credit score. Since the bulk of your credit score comes from your payment history, paying bills on time will pull you up quickly. Not only will that help, but a recent and consistent history of paying bills on time overshadow a period long in the past where you may have missed payments.
- Budget – Setting up a budget and staying within its parameters will keep you from overspending and using credit for frivolous things. Although using credit builds credit not being able to pay it off hurts more in the future.
- Use all your credit cards regularly – If you have a few credit cards try to use them from time to time in order to show that you use all of your accounts. Remember that the last usage of an account is 15% of your score.
Important items to note:
- We may not receive a new score for you each month. You won’t see a score if we did not receive one for a given month.
- Remember, FICO® Scores are based on data in your credit report, so changes to your score may be a result of changes in your credit report. You can request a free annual credit report from Equifax at www.annualcreditreport.com.
FICO® Scores: What You Need to Know
Score Deciding Factors
- What is a credit report?
- What do mortgage lenders use to determine my credit score?
- What does FICO stand for?
- What determines my FICO score?
- What’s a good FICO score?
- What if my FICO score is below 620?
- Can I get a copy of my credit report?
- Ah Ha! Now I understand all things credit and I’m this much closer to owning my home!
- Your identity: name, social security number, date of birth and possibly employment information.
- Your existing credit: credit card accounts, mortgages, car loans, students loans etc.including credit terms, how much you owe, and your payment history.
- Your public record: Judgments against you, tax liens or bankruptcies.
- Recent Credit Inquiries: Requests for your information from companies extending credit such as credit card companies, auto loans, etc.
- Put more money down. Some lenders offset a weak credit score with a higher down payment. A higher down payment gives you more equity in your home, lowering the lender’s risk.
- You may qualify for a non conventional government issued loan such as an FHA, Veterans Affairs and/or U.S. Department of Agriculture loan which have less stringent lending requirements.
- You may work to get that credit score up!
- Correct any errors on your report. Analyze your credit items line by line. If you notice a mistake, dispute it right away with either the credit bureau providing the report or the company that providing the incorrect information to the credit bureau.
- Make all your payments on time. Late payments are the No. 1 way to lower your credit score.
- Pay down revolving debt. Keeping your credit balances low helps to raise your score.
- Sit back and relax. As long as you're paying down debt and making payments on time, your credit score will eventually rise on its own.
Mortgage Loan Officer
email: kentuckyloan@gmail.com
FHA CHANGES TO HANDLING OF COLLECTIONS, JUDGEMENTS AND DISPUTED ACCOUNTS ON CREDIT REPORT
- Applicable to Manually Underwritten Loans: The lender must document reasons for approving a mortgage when the borrower has collection accounts or judgments.
- The borrower's disregard for financial obligations;
- The borrower's inability to manage debt; or
- Extenuating circumstances.
- Applicable to Loans Run Through TOTAL Mortgage Scorecard: TOTAL Mortgage Scorecard Accept/Approve - There are no documentation or letter of explanation requirements for loans with collection accounts or judgments run through TOTAL Mortgage Scorecard receiving an "Accept/Approve" despite the presence of collection accounts or judgments. These accounts have been already taken into consideration in the borrower's credit score. If TOTAL Mortgage Scorecard generates a"Refer," the lender must manually underwrite the loan in accordance with the guidance above applicable to manually underwritten loans with collection accounts and judgments.
- At the time of or prior to closing, payment in full of the collection account (verification of acceptable source of funds required).
- The borrower makes payment arrangements with the creditor. If the borrower has entered into a payment arrangement with the creditor, a credit report or letter from the creditor verifying the monthly payment is required. The monthly payment must be included in the borrower's debt-to-income ratio.
- If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower's debt-to-income ratio.
Disputed Derogatory Credit Accounts greater than or equal to $1,000
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If the cumulative outstanding balance of disputed derogatory credit accounts of all borrowers is equal to or greater than $1,000, the mortgage application must be downgraded to a"Refer" and a Direct Endorsement underwriter is required to manually underwrite the loan as described above.
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Disputed Derogatory Credit Accounts less than $1,000
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If the cumulative outstanding balance of disputed derogatory credit accounts of all borrowers is less than $1,000, a downgrade is not required.
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Excluded Accounts
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- disputed charge-off accounts,
- disputed collection accounts, and
- disputed accounts with late payments in the last 24 months.
- disputed accounts with zero balance,
- disputed accounts with late payments aged 24 months or greater, and
- disputed accounts that are current and paid as agreed.
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Fill out my form for mortgage pre-approval by clicking this link!
Kentucky USDA Rural Housing Mortgage Lender: CREDIT ALERT VERIFICATION REPORTING SYSTEM (CAIVRS...
Kentucky_First_Time_Home_Buyer_Programs
Kentucky Conventional mortgages
How to qualify for a Kentucky conforming loan
A conforming loan meets the borrowing limits set by the Federal Housing Finance Agency (FHFA). Here are the requirements:
- Credit score: 620-but to get an approval need a 720 or higher usually...
- DTI: 36% to 50%, depending on the lender and how strong other parts of your financial profile are-if you have mortgage insurance max debt to income ratio is 45% backend ratio
- Down payment: You may need up 5% minimum for standard Fannie Mae loans, but if your mortgage is backed by government-sponsored mortgage companies Freddie Mac or Fannie Mae, you'll only need 3% for their Homepath or Homepossible mortgage loans.
- Max loan limits of $548,000 in 2021
There are three main types of government mortgages: Kentucky FHA, VA, and USDA loans.
How to qualify for an Kentucky FHA loan
A loan from the Federal Housing Administration is for buyers who don't have the best credit scores or DTIs, but still want to buy a home. Here's what you'll need for an FHA loan:
- Credit score: 580
- DTI: 56% max approval usually with good scores and a AUS approval through Fannie Mae or Freddie Mac, and money down. DTI is lower on a manual underwrite loan.
- Down payment: 3.5%; or if your score is between 500 and 579, you can qualify with a 10% down payment
- Other requirements: The FHA restricts how much you can borrow, and your limit depends on where you live in the US and whether you're buying a single- or multi-family place. Your home must meet certain property standards. You can use an FHA loan to buy a home with normal wear and tear, but not one with major structural or safety issues.
- Max loan limits of $356,000 for 2021 in Kentucky
How to qualify for a Kentucky VA loan
A Veterans Affairs loan is for military families. Here are the requirements:
- Credit score: no minimum score but most lenders will want a 620 minimum credit score
- DTI: 41% for a manual underwrite, can be much higher on AUS approval through Fannie Mae or Freddie Max
- Down payment: No down payment is necessary
- Residual Income Requirements by state and household size.
- Other requirements: You must be an active-duty military member or a veteran who served for a certain amount of time. You'll also qualify if you're a spouse of someone who died in active duty or another military-related incident, or if your spouse is a prisoner of war or MIA. The home you're buying should meet safety standards and be used as your primary residence, but there are no strict borrowing limits set by the VA.
How to qualify for a USDA loan
A loan from the United States Department of Agriculture is for low-to-moderate income borrowers buying homes in rural or suburban areas. You'll need the following to be eligible:
- Credit score: 581 minimum score, but most lenders will want a 620 to 640 credit score
- DTI: 45% for a GUS USDA loan approval, on a manual underwriter 41%
- Down payment: No down payment is necessary
- Other requirements: Your home must be in a rural or suburban part of the US. If you already know the address of the home you want to buy, enter the information into the USDA Property Eligibility Site to see if it qualifies for a USDA loan. You also must earn a low-to-moderate income, and the limit varies based on where you live.
Knowing which mortgage types you qualify for can help you determine which one is the best fit. There may be some flexibility, though. For instance, a lender may approve you with a high DTI if you have an excellent credit score and sizeable down payment. If you're set on a certain type of mortgage but don't qualify, call a lender to ask about your options.
Mortgage Loan Officer
email: kentuckyloan@gmail.com