USDA RURAL DEVELOPMENT RURAL HOUSING LOAN IN KENTUCKY

More info below about Kentucky Rural Development Loans

https://www.mylouisvillekentuckymortgage.com/p/a-kentucky-usda-home-loan-is-zero.html

Kentucky Rural Housing USDA Home Loan Frequently Asked Questions 

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).

What is the minimum Credit Score Needed to Buy a House and get a Kentucky Mortgage Loan?

Credit Score Needed to Buy a House and get a Kentucky Mortgage?

Conventional Loan

• At least 3%-5% down• Closing costs will vary on which rate you choose and the lender. Typically, the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home. Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.
Kentucky USDA Rural Housing Program

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.

 
Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.

 
They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in a rural area

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern Kentucky. There is a map link below to see the qualifying areas.

There is also a max household income limits with most cutoff starting at 109,500 for a family of four, and up to $136,000 for a family of five or more.

The income limits change every spring, so make sure and check to see what updated income limits are.
USDA requires 3 years removed from bankruptcy and foreclosure
There is no max USDA loan limit.

 

Kentucky FHA Loan

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580-credit score.

 
The current mortgage insurance requirements are kind of steep when compared to USDA, VA, but the rates are usually good so it can counteract the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.

 
The mi premiums are for life of loan like USDA.

 
FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure. 

 

Kentucky VA Loan

VA loans are for veterans and active-duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have an funding fee like USDA, but it is higher starting at 2% for first time use, and 3% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.

 
VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and no max loan limits in Kentucky

 
Most VA lenders I work with will want a 580-credit score, even though VA says in their guidelines there is no minimum score, good luck finding a lender
VA requires 2 years removed from bankruptcy or foreclosure
Clear Caviars needed to for a VA loan.

 

Kentucky Down Payment Assistance

This type of loan is administered by KHC in the state of Kentucky. They typically have $10,000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.

Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.

KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at KHC requires 660 credit score.
The max debt to income ratios is set at 40% and 50% respectively.

Joel Lobb (NMLS#57916)
Senior Loan Officer
Text/call 502-905-3708

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3

Louisville, KY 40223
Company ID #1364 | MB73346


kentuckyloan@gmail.com


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#57916


http://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%