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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
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Kentucky Mortgage Loan Programs
Kentucky USDA Rural Housing Mortgage Lender: Understanding Kentucky USDA Home Loan Approval Gui...
Understanding Kentucky USDA Home Loan Approval Guidelines in 2024
Understanding Kentucky USDA Home Loan Approval Guidelines in 2024
If you're looking to buy a home in Kentucky and considering a USDA loan, understanding the approval guidelines is crucial. The USDA (United States Department of Agriculture) offers loans specifically designed for rural and suburban homebuyers with favorable terms. Here's a comprehensive look at what you need to know about credit score requirements, income criteria, work history, debt ratio considerations, bankruptcy and foreclosure history, down payment expectations, mortgage insurance, income limits, and the USDA's Guaranteed Underwriting System (GUS) and manual underwriting process.
Types of Kentucky Mortgages for Homebuyers in Kentucky
Here is a quick summary of the 3 loans for Kentucky Homebuyers , but we will go into each of them in depth further down. Types of Kentucky mortgages
1. Kentucky Conventional Loan Conventional loans are not backed by the federal government, and they come in two packages: conforming and non-conforming.
Pros of conventional loans
Cons of conventional loans
Who should get a conventional loan If you have a strong credit score and can afford to make a sizable down payment, a conventional mortgage is probably your best pick. The 30-year, fixed-rate conventional mortgage is the most popular choice for homebuyers. 2. Jumbo Loans Jumbo mortgages are appropriately named: These are loans that fall outside FHFA limits. Jumbo loans are more common in higher-cost areas such as Los Angeles, San Francisco, New York City and the state of Hawaii. More money means more risk for the lender, so these generally require more in-depth documentation to qualify. Pros of jumbo loans
Cons of jumbo loans
Who should get a jumbo loan? If you’re looking to finance a sum of money larger than the latest conforming loan limits, a jumbo loan is likely your best route. 3. Kentucky Government-Insured Loan The U.S. government isn’t a mortgage lender, but it does play a role in helping more Americans become homeowners. Three government agencies back mortgages: the Federal Housing Administration (FHA loans), the U.S. Department of Agriculture (USDA loans) and the U.S. Department of Veterans Affairs (VA loans).
Pros of government-insured loans
Cons of government-insured loans
Who should get a government-insured loan? If you cannot qualify for a conventional loan due to a lower credit score or limited savings for a down payment, Kentucky FHA-backed and USDA-backed loans are a great option. For military service members, veterans and eligible spouses, VA-backed loans can be a good option — often better than a conventional loan. Other types of Kentucky home loans
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Hope your day is full of sunshine
Joel Lobb Mortgage Loan Officer
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/
NMLS ID# 57916, (www.nmlsconsumeraccess.org).
Kentucky first-time homebuyers with a focus on FHA, VA, USDA Home loans in Kentucky
Here's a summary of different loan programs for Kentucky first-time homebuyers with a focus on
FHA Loan:
Down Payment: Minimum down payment of 3.5%.
Income Ratio: Front-end ratio (housing expenses to income) should not exceed 31%; back-end ratio (total debt to income) should not exceed 43%.
Work History: Generally requires at least two years of steady employment, though exceptions can be made.
Credit, Bankruptcy, and Foreclosure: More forgiving than conventional loans; may consider borrowers with past bankruptcy or foreclosure.
Employment and Work History: Stable employment and income are essential.
Time to Close: Typically around 30-45 days. Appraisal and property requirements follow FHA guidelines.
VA Loan:
Income Ratio: Flexible debt-to-income ratios, often up to 41% or higher in certain cases.
Work History: Stable employment history is preferred.
Credit, Bankruptcy, and Foreclosure: More lenient on past credit issues; may consider borrowers with past bankruptcy or foreclosure.
Employment and Work History: Consistent income from stable employment is crucial.
Time to Close: VA loans can take 45-60 days to close. Appraisal and property requirements must meet VA standards.
USDA Loan:
Down Payment: No down payment required for eligible borrowers.
Income Ratio: Maximum debt-to-income ratio of 41%, though exceptions may be made with strong compensating factors.
Work History: Stable employment history is preferred, typically two years or more.
Credit, Bankruptcy, and Foreclosure: Consideration for borrowers with past credit issues, bankruptcy, or foreclosure.
Employment and Work History: Consistent income from stable employment is important.
Time to Close: USDA loans may take 30-60 days to close. Appraisal and property requirements must meet USDA guidelines.
Each loan program has specific eligibility criteria and requirements, so it's essential for first-time homebuyers to consult with lenders or mortgage experts to determine the best fit based on their financial situation and goals.
Appraisal requirements and income documentation
FHA Loan:Appraisal Requirements:
Income Documentation: Generally requires recent pay stubs, W-2 forms, tax returns for the past two years, and proof of additional income sources (if applicable).
VA Loan:Appraisal Requirements:
Income Documentation: Typically includes pay stubs, W-2 forms, tax returns for the past two years, and proof of any additional income (e.g., bonuses, alimony, rental income).
USDA Loan:Appraisal Requirements:
Income Documentation:
These appraisal requirements and income documentation are crucial parts of the loan application process. Lenders use this information to assess the property's value, ensure it meets safety standards, and verify the borrower's income stability and ability to repay the loan.
Hope your day is full of sunshine
Joel Lobb Mortgage Loan Officer
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/
NMLS ID# 57916, (www.nmlsconsumeraccess.org).
What goes into your FICO® Scores for A Kentucky Mortgage ?
What goes into your Kentucky Mortgage FICO® Scores ?
The FICO® Score is calculated using 5 categories of data:
- 35% Payment history: Whether you've paid past credit accounts on time.
- 30% Amounts owed: The amount of credit and loans you are using.
- 15% Length of credit history: How long you've had credit.
- 10% New credit: Your frequency of credit inquiries and new account openings.
- 10% Credit mix: The mix of your credit cards, retail accounts, installment loans and mortgages.
Your FICO Scores are unique, just like you. They are calculated based on the categories described above, but for some people, the importance of these categories can be different.
Joel Lobb Mortgage Loan Officer
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/
NMLS ID# 57916, (www.nmlsconsumeraccess.org).
How to Get Approved for a USDA Mortgage Loan in Kentucky
How to Get Approved for a USDA Mortgage Loan in Kentucky
If you're considering buying a home in Kentucky and looking for a mortgage loan with favorable terms, a Kentucky USDA loan could be a great option. Kentucky USDA loans, backed by the U.S. Department of Agriculture, are designed to help low to moderate-income borrowers in Kentucky rural areas achieve homeownership. Here's a comprehensive guide on how to get approved for a USDA mortgage loan in Kentucky in regards to credit score, income, work history, debt to income ratios, bankruptcy and foreclosure :
Kentucky USDA loans Credit Score Requirements:
- While Kentucky USDA loans are known for their lenient credit score requirements compared to conventional loans, having a good credit score can still improve your chances of approval. Aim for a credit score of 640 or higher for smoother processing. On paper USDA says there is no minimum score, but it is very difficult to get approved with lenders with no score.
Kentucky USDA loans Income Eligibility:
- USDA loans have income eligibility criteria based on the area's median income. To qualify, your household income should fall within the USDA's income limits for the specific county or area in Kentucky where you plan to buy a home.
Kentucky USDA loans Work History:
- Lenders typically look for a stable work history, preferably with at least two years of consistent employment in the same field or industry. This demonstrates your ability to repay the loan.
Kentucky USDA loans Property Location (Counties 120 in Kentucky):
- USDA loans are specifically designed for properties located in eligible rural areas or designated suburban areas. Before applying, ensure that the property you're interested in is within a USDA-eligible location in Kentucky.
Kentucky USDA loans Income Ratio:
- Your debt-to-income (DTI) ratio is an important factor in loan approval. Generally, USDA loans require a DTI ratio of 41% or lower, although some lenders may allow higher ratios with compensating factors.
Kentucky USDA loans Income Limits:
- USDA loans have income limits based on family size and county location. These limits vary by area, so check the current income limits set by USDA for the county where you plan to purchase your home.
Kentucky USDA loans Property Type:
- USDA loans are intended for primary residences, including single-family homes, townhouses, and eligible condominiums. Investment properties and vacation homes are not eligible.
Kentucky USDA loans Bankruptcy and Foreclosure Requirements:
- Having a bankruptcy or foreclosure in your financial history doesn't necessarily disqualify you from a USDA loan. However, there are waiting periods after these events before you can apply:
- Chapter 7 bankruptcy: 3 years from the discharge date.
- Chapter 13 bankruptcy: 1 year of on-time payments and court approval.
- Foreclosure: 3 years from the sale date.
- Having a bankruptcy or foreclosure in your financial history doesn't necessarily disqualify you from a USDA loan. However, there are waiting periods after these events before you can apply:
Kentucky USDA loans Closing Time:
- USDA loans typically take around 30 to 45 days to close, although this timeline can vary based on factors such as application volume and the efficiency of document processing.
Kentucky USDA loans Appraisal Requirements:
- A professional appraisal is required for USDA loans to determine the fair market value of the property. The appraisal ensures that the property meets USDA standards and is worth the loan amount.
Kentucky USDA loans Termite Inspections:
- USDA loans may require a termite inspection, especially in areas where termite infestations are common. The inspection aims to identify and address any termite-related issues in the property.
Kentucky USDA loans GUS (Guaranteed Underwriting System):
- GUS is a tool used by lenders to process USDA loan applications. It evaluates the borrower's credit, income, and other factors to determine eligibility and streamline the underwriting process.
Kentucky USDA loans Manual Underwriting:
- In some cases, USDA loans may undergo manual underwriting, especially if the borrower's application doesn't meet automated approval criteria. Manual underwriting involves a more thorough review of the borrower's financial situation by the lender.
To get a Kentucky USDA loan, potential Kentucky rural housing borrowers must follow this sequence of steps:
- Determine eligibility by consulting online USDA maps.
- Decide whether you want a guaranteed or direct loan. Guaranteed loans will have higher income limits, which you’ll work out with the lending institution.
- Submit all applicable paperwork, including income, debts, and credit reports.
- After pre-approval, begin searching for new homes (or launch renovations on your current home).
Keep in mind that you’ll have fees associated with your loan. Guaranteed loans require an upfront 1% fee and annual fees of 0.35% for as long as the mortgage is active.
USDA program for properties located outside urban areas of Kentucky areas where you can secure a no money down loan at a fixed rate of on 30 years.
The max household income limits usually are between $110,500 to $146,000 for most rural area counties depending on household family size.
This changes every year so make sure you are using updated USDA Income Limits for this year
A 620-640 middle credit score is needed for loan approval on this program. They're no max loan limits on USDA loans. You just need to qualify based on your debt to income ratio (see below under income section)-----USDA will go down to 580 on scores but it has to pass 👉 USDA Manual Underwriting guidelines
Need to be 3 years removed from a Chapter 7 Bankruptcy and 3 years from a foreclosure
10602 Timberwood Circle
Louisville, KY 40223
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com