Can you get a mortgage loan while in a Chapter 13 Bankruptcy:
Kentucky Mortgage Underwriting Guidelines updated
Kentucky FHA Mortgage Loans Guidelines
FHA Changes for Mortgage Loans in Kentucky
FHA Changes for Mortgage Loans in Kentucky
Minimum Credit Scores for a Kentucky FHA loan.
All Kentucky FHA loans will soon require a 500 credit score for all Kentucky Home buyers or homeowners looking to refinance who have a debt to income ratio over 55% percent.
Kentucky FHA Loans with FICO scores under 620 will remain FHA-eligible, but you must show compensating factors or reasons to approve the loan. Compensating factors would be large down payments in excess of 10%, or a lot of money in savings or reserves after the loan is made.
Kentucky FHA loans and Foreclosure Rules
Currently, a Kentucky homebuyer or home owners can get a FHA-insured financed three years after a foreclosure or short-sale. FHA will now require that only borrowers who (1) have re-established credit, and (2) can provide a fully-documented loan application will qualify for a Kentucky FHA loan
Furthermore, the group will examine the cause of the foreclosure to determine whether it was…
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Kentucky First Time Home Buyer (Louisville, Ky)
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How to Ditch FHA Mortgage Insurance Premiums
Originally Posted On: https://thelindleyteam.com/how-to-ditch-fha-mortgage-insurance-premiums/ When you get a mortgage, you’re signing a million sheets of paper and agreeing to pay a lot…
Source: How to Ditch FHA Mortgage Insurance Premiums
Originally Posted On: https://thelindleyteam.com/how-to-ditch-fha-mortgage-insurance-premiums/
When you get a mortgage, you’re signing a million sheets of paper and agreeing to pay a lot of things that you may not understand at the time. Closing costs, down payments, inspections, real estate agent fees, home insurance, escrow, and so on and so forth. One of the numbers that may have gotten rolled into that list is mortgage insurance premiums.
If you got an FHA loan, you’re almost certainly paying FHA mortgage insurance premiums. Read on to learn more about what these are, how much you might be paying each month, and how you can get out from under them.
What Are FHA Mortgage Insurance Premiums?
Before the Federal Housing Administration was founded, in order to qualify to buy a house, mortgage applicants had to have excellent credit and a large down payment. This made it harder for people to buy homes, so the FHA was established to make this process easier for first-time homebuyers. The FHA does not actually give loans they just insure them.
Mortgage insurance is a policy that protects your lender in case you default on your loan. It allows lenders to make higher-risk loans without worrying about losing money. You pay the premiums for that insurance policy as a part of your agreement with the loan.
Mortgage Insurance Rates
If your loan was $625,000 or less and you got a thirty-year fixed-rate mortgage and you paid less than 5 percent on a down payment, you’ll have an annual mortgage insurance premium of 0.85 percent of your loan. If you put down more than 5 but less than 10 percent, you’ll pay 0.8 percent for the life of the loan. If you put down more than 10 percent, you’ll pay 0.8 percent for the first eleven years of the loan
For loans less than $625,000 with a fifteen-year fixed-rate note where you paid less than 10 percent down, you’ll pay 0.7 percent of your loan amount every year for the life of the loan. If you paid more than 10 percent, you’ll pay 0.45 percent every year for the first eleven years.
If you have a mortgage greater than $625,000 with a thirty-year fixed-rate loan and you paid less than 10 percent down, you’ll pay 1 percent of your mortgage every year for the life of the loan. If you paid more than 10 percent down, you’ll pay a slightly higher 1.05 percent, but only for the first eleven years.
And finally, if your loan is greater than $625,000, you have a 15-year fixed-rate mortgage, and you paid less than ten percent down, you’ll pay 0.95 percent of your loan every year for the life of the loan. If you paid more than 10 percent but less than 22 percent, you’ll pay 0.7 percent for the first eleven years of the loan. And if you paid more than 22 percent, you’ll pay 0.45 percent every year for the first eleven years.
How to Get Out of Mortgage Insurance
The good news is that you aren’t stuck forever. Once you get about 20 percent equity in your house, either through improvements or paying down the loan, you can refinance your mortgage. With that 20 percent, you should be able to get a mortgage that doesn’t require FHA protection.
Even if you don’t yet have 20 percent equity in the house, you may be able to refinance into a lower mortgage insurance premium bracket. If you can get 10 percent to put down on your new mortgage, for instance, you may be able to drop to a lower monthly percentage that you’re paying.
Reappraise
Depending on where you live and what work you’ve done on the house, you may be able to get 20 percent equity without having to pay all that money in. If property values in your area are on the rise, your home may be worth more now than when you bought it. The same goes for home improvements, and that total may leave you with more than 20 percent equity in your home so you can refinance out of your mortgage insurance.
A great way to determine if this is the case for you is to have your home appraised again. A home appraisal will cost somewhere between $300 and $400. If you’re paying $520 a month for mortgage insurance premiums (1 percent on a $625,000 loan), this will pay for itself immediately.
How to Refinance
Once you get 20 percent equity in your house, no matter how you do it, you can refinance into a new mortgage. Start by shopping around and applying for a new mortgage with three or four lenders. This will give you an idea of what sort of interest rates you’re looking at and what your new monthly payment should be.
Once you find a lender you like, lock in your interest rate and start on the process of getting the loan closed. You’ll need a fair amount of paperwork for both the application and closing processes. Your last several pay stubs, tax returns, credit reports, and statements of your assets and outstanding debts are a good place to start.
2020 KENTUCKY FIRST TIME HOME BUYER PROGRAMS
2020 Kentucky first time home buyer programs, FHA loan Kentucky, First time home buyer, Kentucky FHA loan,
Interest Rate Decrease for USDA Rural Housing Loans Direct Programs — Kentucky USDA Mortgage Lender for Rural Housing Mortgage Loans
Interest Rate Decrease for SFH Direct Programs October 17, 2019 Programs Current Interest Rate Interest Rate Effective 11/1/19 Section 502 Direct – Program Loans 3.125% 3.000% Section 502 Direct – Non-Program Loans 3.625% 3.500% Section 524 Housing Site Development Loans – Non-Self-Help 3.125% 3.000% For Program Information Single Family Housing Direct Loans Single Family […]
What is a Kentucky Mortgage Rate Lock?
Locking in a Kentucky Mortgage Rate?
via What is a Kentucky Mortgage Rate Lock?
oel Lobb
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.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). USDA Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.
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How to Buy a Home with a Student Loan Debt
Buying a home can be a nerve-wracking experience, especially if it’s your first time. It may feel even more so if you’re still saddled with student loan debts.
Source: How to Buy a Home with a Student Loan Debt
Buying a home can be a nerve-wracking experience, especially if it’s your first time. It may feel even more so if you’re still saddled with student loan debts.
Does your income-driven repayment plan has Do you have Federal student loans in it? Do you know how your lender will handle your debt to income ratio?
These are just some of the factors that you need to put into consideration when planning to buy a house. It might just be not that easy since you also have to factor in your student loan debts.
To make the process less intimidating for you, here are the things you need to do.
Pay Attention to Your Credit Score
FICO credit scores are among one of the most commonly used scoring systems by lenders and creditors whose range plays in between 350 to 800. A consumer with a credit score below 620 is considered to have poor credit, while those with credit scores of 750 or higher is considered to have excellent credit.
Now, if you want to qualify for a home improvement financing or a mortgage and nail a low mortgage rate, make sure your credit score is in good shape. Whenever you apply for a mortgage, every credit bureau gathers information about your credit history and calculate your credit score that lenders will use to gauge your risk factor.
If you find an error or any inconsistencies in your credit report, report it immediately to the credit bureau and have it fixed.
Manage Your DTI (Debt-to-Income) Ratio
Your DTI (debt-to-income ratio) is one of the major factors that lenders consider when you apply for a mortgage loan. It’s the ratio of the total amount of your recurring debt every month with your monthly gross income.
To calculate your DTI, add up all of your recurring monthly debt such as student loan payments, minimum credit card payments, or car loan payments, then divide it by your pre-tax (the amount you earn before taxes and other withholdings) income every month.
Since your debt-to-income contains two main components: debt and income, the efficient way to reduce it is to:
earn more income
repay existing debt
do both
Pay Attention to Your Payments
Case in point: Lenders will approve the application of those who are financially responsible.
Know it that your payment history takes up one of the biggest portions of your credit score. Thus, to make sure that you pay on time, set up an autopay system for all your accounts so that funds are automatically debited every month.
Moreover, your FICO is being weighed heavily by current payments, which means your future will matter more than your past. Make sure also to do the following:
Pay off the balance if you have a delinquent payment.
Do not skip payments.
Pay on time.
Get Yourself Pre-approved for a Mortgage
The common cycle for home buyers is to look for a property, then get a mortgage. You have to switch it.
It’s better if you get yourself pre-approved with a lender, so you will know how much you can afford for a home. To get pre-approved, lenders will look at your income, credit profile, employment, assets, to name a few.
Keep Your Credit Utilization at a Minimum
Besides your credit score and DTI, your lenders also assess your credit card utilization score, or your credit card expenses as a percentage of your credit limit every month. The ideal credit utilization must be 30% or less. Even better, keep it less than 10% if possible.
For instance, if you have a $20,000 credit card limit and spent $6,000, your credit utilization is equivalent to 30%.
If you want to regulate your credit card utilization better, here are the things you can do:
Talk with your lender about increasing your credit limit. It may require a hard credit pull so better consult your lender first.
Pay off your balance at least twice a month to lessen your credit utilization.
To track credit utilization, set up alerts for automatic balance.
Search for Down Payment Assistance
Even if you have outstanding student loan debts, you can still seek for different down payment assistance. You can start with the following:
USDA loans. These loans have zero-down mortgages for suburban and rural homeowners.
FHA loans. Acquire federal loan through the Federal Housing Authority.
VA loans. You can avail these loans if you’ve served in the military service.
There are local, state, and federal assistance programs as well that you can resort to.
If paying off your credit card balance is impossible before getting a mortgage, you can consolidate your credit card debt into one personal loan for a lower interest rate.
Taking a personal loan can help you save big on you on interest expenses over the repayment term, which usually lasts for three up to7 years, depending on the lender. It can also enhance your credit score since it’s an installment loan with a fixed repayment term.
On the flip side, credit cards have no fixed repayment terms because they are revolving loans. When such is the case, you can minimize your credit utilization and diversify your debt types whenever you trade your credit card debt for a personal loan.
Takeaway
Buying a home while grappling with student loan debts can be taxing. Your likelihood to get a mortgage for a property will depend on your loans. It can result in disappointment if your loans are in bad shape.
Now, if you don’t evaluate your student loan picture and ensure that you’re taking all the necessary steps to be successful, getting that mortgage will be impossible. It might not work all the time, but arming yourself with the right knowledge to get there is the beginning of your homeownership journey.
Author’s Bio
© 2017 University Herald, All rights reserved. Do not reproduce without permission.
Kentucky Manufactured Home Loans for Doublewide Mobile Homes for FHA, VA, USDA, KHC and Fannie Mae
Kentucky Manufactured Home Loans for Doublewide Mobile Homes for FHA, VA, USDA, KHC and Fannie Mae
via Kentucky Manufactured Home Loans for Doublewide Mobile Homes for FHA, VA, USDA, KHC and Fannie Mae
| Kentucky Manufactured Home Loans for Double wide Mobile Homes Now Available
|
Joel Lobb (NMLS#57916)
Senior Loan Officer
Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation…
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FHA to make financing easier for condo owners in Kentucky
FHA Condo Approval Kentucky
The Federal Housing Administration has finally issued a long-awaited update to its condominium rules, announcing Wednesday that it will now allow individual unit approval and is taking other steps to loosen requirements that make these properties eligible for FHA financing. The agency said it expects the updated guidelines to qualify up to 60,000 more condo units a year for financing.
Under the revised guidelines – which take effect Oct. 15, 2019 – an individual condo unit in a building of 10 units or more may be eligible for spot approval if no more than 10% of the units are FHA-insured. For units in buildings with fewer than 10 units, no more than two units can have FHA insurance.
The FHA is also extending the recertification deadline for approved condo projects from two to three years, and it will insure more mixed-use projects, or those with more commercial space, to be eligible, stating that approved projects can now have up to 35% of their square footage dedicated to non-residential use.
The agency also loosened restrictions on owner-occupancy rules, stating that eligible condo projects can now be just 50% owner-occupied.
It also said it will insure up to 50% of units in any given project.
The FHA said it expects the updated guidelines to qualify an estimated 20,000 to 60,000 more condo units per year for financing.
Currently, of the more than 150,000 condo projects across the country, only 6.5% are approved for FHA financing.
This is something the FHA is aiming to change with the updated guidelines, Department of Housing and Urban Development Secretary Ben Carson said on a call with reporters Wednesday.
Kentucky FHA Mortgage Lender 