Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Debt-to-Income Ratio: What It Is and Why You Shoul...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Debt-to-Income Ratio: What It Is and Why You Shoul...: Think back to the last time you financed a purchase — be it a home, automobile, or what have you… You may remember having heard th...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: First-time Home-buyers in Kentucky

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: First-time Home-buyers in Kentucky: Common Questions from Louisville Kentucky First-time Homebuyers Kentucky First Time Home Buyer Common Questions and Answers below:👇 ∘ Wh...

How to get a Kentucky mortgage loan with bad credit through FHA, VA, USDA, or the Kentucky Housing Corporation (KHC)

 To get a Kentucky mortgage loan with bad credit through FHA, VA, USDA, or the Kentucky Housing Corporation (KHC), you'll need to take specific steps tailored to each program:

1. Kentucky FHA Loan with Bad Credit:

   • Credit Score Requirement: FHA loans typically accept lower credit scores than conventional loans. While the minimum credit score can vary, aiming for at least a 580 score can increase your chances.
   • Down Payment: With a credit score below 580, a 10% down payment may be required. If your score is 580 or above, you can qualify with a 3.5% down payment.
   • Work on Your Credit: Prioritize improving your credit score by paying bills on time, reducing debt, and disputing any errors on your credit report.

2. Kentucky VA Loan with Bad Credit:

   • Credit Score Requirement: VA loans are known for being flexible with credit requirements. While there's no set minimum score, lenders often look for scores around 620 or higher.
   • VA Loan Guaranty: The VA doesn't directly issue loans but guarantees a portion of the loan, making lenders more willing to approve applicants with lower credit scores.
   • Proof of Financial Stability: Highlight stable income and employment history to strengthen your application.
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3. Kentucky USDA Loan with Bad Credit:

   • Credit Score Requirement: USDA loans typically require a minimum credit score of 640. However, some lenders may consider scores as low as 580 with compensating factors.
   • Income Limits: Ensure your income falls within USDA's income limits for the area where you're buying.
   • Compensating Factors: Emphasize factors like a steady job, low debt-to-income ratio, and a history of making timely payments to offset a lower credit score.

4. Kentucky Housing Corporation (KHC) Loan with Bad Credit:

   • Credit Score Requirement: KHC loans may have varying credit score requirements depending on the specific program. Aim for a score of at least 620 for better chances of approval.
   • Down Payment Assistance: KHC offers down payment assistance programs that can help lower-income and first-time homebuyers. Check eligibility and requirements for these programs.
   • Prequalification: Consider getting prequalified to understand your options and improve your negotiating position.

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 57916  | Company NMLS #1364/MB73346135166/MBR1574

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).

For all these loans, working with a knowledgeable mortgage broker like Joel Lobb can be beneficial. They can guide you through the specific requirements, help you understand your options, and assist in improving your chances of approval despite bad credit.

Kentucky Mortgage Loan Programs

FHA Pricing Improvements Any FICO (down to 550) Conventional Pricing Improvements Any FICO ( down to 580) Non-Traditional Credit/ No Score Options Available on FHA, VA and USDA FreddieMac ChoiceRenovation Down to 580 Fico EasyPath FHA 203K Limited and standard Down to 620 FICO Purchase and Refinance options LOWER FICO OPTIONS Down to 550 FICO on FHA and VA Down to 580 FICO on USDA and Conventional MANUAL UW OPTIONS FHA, VA & USDA CASH OUT REFINANCES FHA and VA down to 550 FICO VA cash-out up to 100 LTV Manual Underwrite options Manufactured housing options MANUFACTURED HOMES Single and multi-wide options Available for FHA, VA, USDA and conventional Options for manufactured homes built after June 15th 1976 USDA 97% of the USA is eligible 100% LTV available USDA Streamline NO FICO allowed Escrow holdbacks allowed DACA and EAD allowed FICOs down to 580 Temporary Buydowns Currently available on FHA, VA and Conventional loans

Kentucky USDA Rural Housing Mortgage Lender: Understanding Kentucky USDA Home Loan Approval Gui...

Kentucky USDA Rural Housing Mortgage Lender: Understanding Kentucky USDA Home Loan Approval Gui...:   Understanding Kentucky USDA Home Loan Approval Guidelines in 2024 If you're looking to buy a home in Kentucky and considering a USDA l...

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 Conventional loan – Best for borrowers with a good credit score Jumbo loan – Best for borrowers with excellent credit looking to buy an expensive home Government-insured loan – Best for borrowers who have lower credit scores and not much cash for a down payment Fixed-rate mortgage – Best for borrowers who want the predictability of the same payments throughout the entire loan Adjustable-rate mortgage – Best for borrowers who do not plan to stay in the home for a long time, and are comfortable with the risk of larger payments down the road 1. Kentucky Conventional Loan Conventional loans are not backed by the federal government, and they come in two packages: conforming and non-conforming. Conforming loans – As the name implies, a conforming loan “conforms” to a set of standards put in place by the Federal Housing Finance Agency (FHFA). The standards include a range of factors about your credit and debt, but one of the main pieces is the size of the loan. Non-conforming loans – These loans do not meet FHFA standards. They might be for larger homes, or they might be offered to borrowers with subpar credit. Some non-conforming loans are designed for those who have gone through major financial catastrophes such as a bankruptcy. Pros of conventional loans Can be used for a primary home, second home or investment property Overall borrowing costs tend to be lower than other types of mortgages, even if interest rates are slightly higher Can ask your lender to cancel private mortgage insurance (PMI) once you’ve reached 20 percent equity, or refinance to remove it Can pay as little as 3 percent down on loans backed by Fannie Mae or Freddie Mac Sellers can contribute to closing costs Cons of conventional loans Minimum FICO score of 620 or higher often required (the same applies for refinancing) Higher down payment than some government loans Must have a debt-to-income (DTI) ratio of no more than 43 percent (50 percent in some instances) Likely need to pay PMI if your down payment is less than 20 percent of the sales price Significant documentation required to verify income, assets, down payment and employment 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 Can borrow more money to buy a more expensive home Interest rates tend to be competitive with other conventional loans Cons of jumbo loans Down payment of at least 10 percent to 20 percent needed A FICO score of 700 or higher typically required Cannot have a DTI ratio above 45 percent Must show you have significant assets in cash or savings accounts 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). Kentucky FHA loans – Backed by the FHA, these types of home loans help make homeownership possible for borrowers who don’t have a large down payment saved up or don’t have pristine credit. FHA loans require two mortgage insurance premiums: one is paid upfront, and the other is paid annually for the life of the loan if you put less than 10 percent down, which can increase the overall cost of your mortgage. Lastly, with an FHA loan, the home seller is allowed to contribute to closing costs. Kentucky USDA loans – USDA loans help moderate- to low-income borrowers buy homes in rural areas. You must purchase a home in a USDA-eligible area and meet certain income limits to qualify. Some USDA loans do not require a down payment for eligible borrowers with low incomes. There are extra fees, though, including an upfront fee of 1 percent of the loan amount (which can typically be financed with the loan) and an annual fee. Kentucky VA loans – VA loans provide flexible, low-interest mortgages for members of the U.S. military (active duty and veterans) and their families. VA loans do not require a down payment or mortgage insurance, and closing costs are generally capped and may be paid by the seller. A funding fee is charged on VA loans as a percentage of the loan amount to help offset the program’s cost to taxpayers. This fee, as well as other closing costs, can be rolled into most VA loans or paid upfront at closing. Many lenders offer the lowest rates possible on VA loans, and some are willing to accept lower credit scores. Pros of government-insured loans Help you finance a home when you don’t qualify for a conventional loan Credit requirements more relaxed Don’t need a large down payment Available to repeat and first-time buyers No mortgage insurance and no down payment required for VA loans Cons of government-insured loans Mandatory mortgage insurance premiums on FHA loans that cannot be canceled unless refinancing into a conventional mortgage Loan limits on FHA loans are lower than conventional mortgages in most areas, limiting potential inventory to choose from Borrower must live in the property (although you may be able to finance a multi-unit building and rent out other units) Could have higher overall borrowing costs Expect to provide more documentation, depending on the loan type, to prove eligibility 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 In addition to these common kinds of Kentucky mortgages, there are other types you may find when shopping around for a loan: Construction loans – If you want to build a home, a construction loan can be a good choice. You can decide whether to get a separate construction loan for the project and then a separate mortgage to pay it off, or wrap the two together (known as a construction-to-permanent loan). You typically need a higher down payment for a construction loan and proof that you can afford it. Interest-only mortgages – With an interest-only mortgage, the borrower pays only the interest on the loan for a set period of time. After that time is over, usually between five and seven years, your monthly payment increases as you begin paying your principal. With this type of loan, you won’t build equity as quickly, since you’re initially only paying interest. These loans are best for those who know they can sell or refinance, or for those who can reasonably expect to afford the higher monthly payment later. Piggyback loans – A piggyback loan, also referred to as an 80/10/10 loan, actually involves two loans: one for 80 percent of the home price and another for 10 percent. Then, you make a down payment of 10 percent. These are designed to help the borrower avoid paying for mortgage insurance. While eliminating those PMI payments might sound appealing, keep in mind that piggyback loans require two sets of closing costs and two loans accruing interest. You’ll need to crunch the numbers to find out if you’re really saving enough money to justify this unconventional arrangement. Balloon mortgages – Another type of home loan you might come across is a balloon mortgage, which requires a large payment at the end of the loan term. Generally, you’ll make payments based on a 30-year term, but only for a short time, such as seven years. At the end of that time, you’ll make a large payment on the outstanding balance, which can be unmanageable if you’re not prepared.

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 57916  | Company NMLS #1364/MB73346135166/MBR1574

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 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, VA, USDA Home loans in Kentucky  

FHA Loan:

Credit Score: Typically requires a minimum credit score of 580; borrowers with lower scores may still qualify but may need a larger down payment.
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:

Credit Score:VA doesn't set a minimum score; lenders may have their requirements, often around 620 or higher.

Down Payment: No down payment required for most borrowers.
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:

Credit Score: Typically requires a minimum credit score of 640; exceptions may be possible with compensating factors.
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:

The property must meet FHA guidelines, including minimum property standards and safety requirements. An FHA-approved appraiser assesses the property's value and condition.
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:

 VA loans require a VA appraisal conducted by a VA-assigned appraiser. The appraisal assesses the property's value and ensures it meets VA's Minimum Property Requirements (MPRs).
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:

USDA loans require a USDA appraisal to determine the property's value and ensure it meets USDA's standards for safety and livability.

Income Documentation: 

Similar to FHA and VA loans, USDA loans require pay stubs, W-2 forms, tax returns for the past two years, and documentation of other income sources.

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 57916  | Company NMLS #1364/MB73346135166/MBR1574

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 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 57916  | Company NMLS #1364/MB73346135166/MBR1574

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).