Kentucky FHA Change

This Kentucky FHA Change is Huge for Home Buyers in Kentucky

Hey, Kentucky FHA Homebuyers in 2023--

If you’ve been on the fence about buying, recent news from the Department of Housing and Urban Development (HUD) may encourage you to take the leap!

The Annual Mortgage Insurance Premium (MIP) will be reduced on all eligible FHA loans through Churchill Mortgage. This premium went from 0.85% to 0.55% for most borrowers with an FHA loan. This will allow borrowers to save an average of $800 each year!

In 2023 alone, this change could help almost 850,000 borrowers. Here’s the details:

• Applies to single-family homes, condos, and manufactured homes.
• All eligible loan-to-value ratios (LTV) will receive the reduction.
• The reduction also works with all eligible base loan amounts.

Here’s a look at the base loan amounts for an FHA loan in 2023: 

This reduction in MIP is just another reason it may be time to look into homeownership. The money you’ll be saving can go straight toward a mortgage payment.

Owning a home is considered a secure way to build lasting wealth, even in an uncertain economy. Look at it this way…when you pay rent, you’re paying your landlord’s bills. When you own a home, you’re building equity for YOUR future.

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Kentucky FHA Mortgage Facts:

• Requires a down payment of at least 3.5%.
  
  
• With a down payment of at least 10%, MIP can be canceled after 11 years.
  
  
• A down payment of less than 10% will require MIP for the lifetime of the loan.
  
  
• The minimum credit score for an FHA loan is 580 to qualify for the 3.5% down payment.
  
  
• A positive rental history of 12 months of on-time payments can be used as part of your mortgage assessment when applying.

Have Questions or Need Expert Advice? Text, email, or call me 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
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).

Kentucky FHA Mortgage Loans Cheaper Mortgage Insurance

 

Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates

30 Basis Point Reduction for FHA Loans Cleared to Close after March 8, 2023 With the announcement of Monthly Mortgage Insurance reductions by HUD, any qualifying Kentucky FHA loan that is cleared to close after March 8th, 2023 will have a reduced MIP. With 30 bps reductions, this could be big savings for your borrowers.   We will apply the new monthly mortgage insurance rate to all qualifying Kentucky FHA loans that are not cleared to close prior to March 8th, 2023 in addition to any new loans that are submitted.

*The MIP reduction does not apply to Streamline and Simple Refinances. Have Questions or Need Expert Advice? Text, email, or call me 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 fax: 502-327-9119 email: kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.com/ The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org).

Cash Out Refinance seasoning requirement on Kentucky Mortgage Loans

 Cash Out seasoning requirement on Kentucky Mortgage Loans for FHA, VA, Fannie Mae

Did you know that Freddie Mac is making a change to their Cash Out seasoning requirement effective March, 7 2023?

  The new guideline will require at least 12 months to have passed from the Note date of the mortgage being refinanced.  Please see below for the agency specific cash out seasoning requirements and let us know if you have any questions.   

 

 

FNMA:  6 months

 

FHLMC:  12 months (Effective 3/7/2023)

 

Kentucky FHA Mortgage Loan: 12 months

 

Kentucky VA Mortgage Loans:  210 days/6 months

Kentucky FHA Annual MIP and VA Funding Fee Reduction - Update!

 

HUD and VA have both announced reductions to the costs associated with their loans in Kentucky for FHA and VA loans and lower mortgage insurance premiums.       Kentucky FHA Annual Mortgage Insurance Premium   HUD announced in Mortgagee Letter 2023-05 a .30% reduction to the annual (paid monthly) MIP rates as well as an increase to the base loan amount threshold for the lower MIP rates.  With this threshold increase, loan amounts greater than $625,500 but less than or equal to $726,200 can see up to .55% reduction in annual (paid monthly) MIP.   All loans in process and new applications will be able to use the lower rates, however, we are currently working on updating our system to accommodate and will advise as soon as that has been completed. This change helps to increase FHA products affordability and allows FHA product to be more competitive.   Please note, there is no change to the upfront Mortgage Insurance Premium (UFMIP), this change only impacts annual (paid monthly) MIP.  See below for a grid of the new rates versus the old rates. New Annual (Paid Monthly) MIP Rates: Loan Terms > 15 Years Base Loan Amount ≤ 95% LTV > 95% LTV <=$726,200 .50% .55% >$726,200 .70% .75% Loan Terms ≤ 15 Years Base Loan Amount ≤ 78% LTV >78% and ≤ 90% LTV > 90% LTV <=$726,200 .15% .15% .40% >$726,200 .15% .40% .65%            Prior Annual (Paid Monthly) MIP Rates:  Loan Terms > 15 Years Base Loan Amount ≤ 95% LTV > 95% LTV <=$625,500 .80% .85% >$625,500 1.00% 1.05% Loan Terms ≤ 15 Years Base Loan Amount ≤ 78% LTV >78% and ≤ 90% LTV > 90% LTV <=$625,500 .45% .45% .70% >$625,500 .45% .70% .95%           Kentucky VA Funding Fee   PRMG is pleased advise and align with the recent announcement by VA in Circular 26-23-06 for a reduction to VA funding fee rates for loans closed on or after April 7, 2023.   See below for a grid of the new funding fee versus the old funding fee. Funding Fee for loans closed on or after 04/07/23: Loan Purpose Down Payment % for 1st Time Use % for Subsequent Use Purchase 0 – 4.99% 2.15% 3.30% Purchase 5 – 9.99% 1.50% 1.50% Purchase 10% or More 1.25% 1.25% Refinance (Cash Out) N/A 2.15% 3.30%  Funding Fee for loans closed prior to 04/07/23: Loan Purpose Down Payment % for 1st Time Use % for Subsequent Use Purchase 0 – 4.99% 2.30% 3.60% Purchase 5 – 9.99% 1.65% 1.65% Purchase 10% or More 1.40% 1.40% Refinance ​​​(Cash Out) N/A 2.30% 3.60%   HUD announced in Mortgagee Letter 2023-05 a .30% reduction to the annual (paid monthly) MIP rates as well as an increase to the base loan amount threshold for the lower MIP rates.  With this threshold increase, loan amounts greater than $625,500 but less than or equal to $726,200 can see up to .55% reduction in annual (paid monthly) MIP.   All loans in process and new applications will be able to use the lower rates, however, we are currently working on updating our system to accommodate and will advise as soon as that has been completed. This change helps to increase FHA products affordability and allows FHA product to be more competitive.   Please note, there is no change to the upfront Mortgage Insurance Premium (UFMIP), this change only impacts annual (paid monthly) MIP.  See below for a grid of the new rates versus the old rates. New Annual (Paid Monthly) MIP Rates: Loan Terms > 15 Years Base Loan Amount ≤ 95% LTV > 95% LTV <=$726,200 .50% .55% >$726,200 .70% .75% Loan Terms ≤ 15 Years Base Loan Amount ≤ 78% LTV >78% and ≤ 90% LTV > 90% LTV <=$726,200 .15% .15% .40% >$726,200 .15% .40% .65%            Prior Annual (Paid Monthly) MIP Rates:  Loan Terms > 15 Years Base Loan Amount ≤ 95% LTV > 95% LTV <=$625,500 .80% .85% >$625,500 1.00% 1.05% Loan Terms ≤ 15 Years Base Loan Amount ≤ 78% LTV >78% and ≤ 90% LTV > 90% LTV <=$625,500 .45% .45% .70% >$625,500 .45% .70% .95%           Kentucky VA Funding Fee   VA in Circular 26-23-06 for a reduction to VA funding fee rates for loans closed on or after April 7, 2023.   See below for a grid of the new funding fee versus the old funding fee. Funding Fee for loans closed on or after 04/07/23: Loan Purpose Down Payment % for 1st Time Use % for Subsequent Use Purchase 0 – 4.99% 2.15% 3.30% Purchase 5 – 9.99% 1.50% 1.50% Purchase 10% or More 1.25% 1.25% Refinance (Cash Out) N/A 2.15% 3.30%  Funding Fee for loans closed prior to 04/07/23: Loan Purpose Down Payment % for 1st Time Use % for Subsequent Use Purchase 0 – 4.99% 2.30% 3.60% Purchase 5 – 9.99% 1.65% 1.65% Purchase 10% or More 1.40% 1.40% Refinance ​​​(Cash Out) N/A 2.30% 3.60%