Author: Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans
Thank you for visiting. I hope you find this website both informative and empowering as you explore your mortgage options. My goal is to help you feel confident in selecting the right home loan for your unique situation. I proudly serve all 120 counties in Kentucky, offering a full range of mortgage loan programs, including: FHA Loans VA Loans USDA Rural Housing Loans Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I’ve had the privilege of helping more than 1,300 Kentucky families achieve their homeownership goals. Whether you're a first-time homebuyer or seeking a second opinion, I’m here to offer honest, no-pressure advice—always free of charge. I am dedicated to: Attending as many closings as possible Providing responsive, personalized service Ensuring quick, efficient, and accurate loan processing Making myself accessible every step of the way I've been consistently recognized as a top mortgage loan officer in Kentucky for VA, FHA, USDA, and KHC programs. I take pride in being thorough, transparent, and attentive with each and every client. Please take a moment to read my reviews below. If you have questions or need guidance, feel free to call or text me directly. Call/text at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications.
Email me at kentuckyloan@gmail.com with your questions
I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer, we offer Kentucky Housing or KHC loans with down payment assistance.
This website is not an government agency, and does
not officially represent the HUD, VA, USDA or FHA or any other government agency.
NMLS# 57916 http://www.nmlsconsumeraccess.org/
Joel Lobb Senior Loan Officer/p>
call/text phone: (502) 905-3708 kentuckyloan@gmail.com Company ID #1738461
EQUAL HOUSING LENDER
http://www.mylouisvillekentuckymortgage.com/
On February 22, 2023, HUD announced a 30 basis point MIP reduction on certain Kentucky FHA loans. According to the government agency, an estimated 850,000 borrowers could benefit this coming year, and the average Kentucky FHA homeowner will save $800 annually.
What you need to know:
The new rate is effective on loans endorsed for insurance by FHA on or after March 20, 2023.
Current clients could refinance to lower their monthly payments or shorten their term.
A lower MIP could open the door for more homebuyers who previously could not qualify.
FHA loans have many benefits, including flexible qualifications and low down payment requirements, and they allow for down payment assistance. Plus, there are no appraisal fees on a streamline refinance.
Contact your borrowers and prospects who are currently in an Kentucky FHA loan or could benefit from one to discuss how this change can work to their advantage.
FHA Reduces Annual Mortgage Insurance Premiums by 30 Basis Points to Support Affordable Homeownership
The Federal Housing Administration (FHA) announced today through Mortgagee Letter 2023-05 a 30 basis point reduction to the Annual Mortgage Insurance Premiums (annual MIP) it charges borrowers for FHA-insured Single Family Title II forward mortgages. This reduction supports the Biden-Harris Administration’s goals of making homeownership more accessible and affordable for the nation’s homebuyers. FHA mortgage insurance facilitates broader availability of mortgage financing to those not adequately served by the conventional mortgage market, particularly households of color for whom FHA-insured mortgages have been a cornerstone of access to affordable homeownership.
Today’s Mortgagee Letter provides additional information for mortgagees to implement the annual MIP reductions effective for mortgages endorsed for FHA insurance on or after March 20, 2023.
FHA estimates this reduction will benefit approximately 850,000 borrowers over the coming year, saving them $678 million in aggregate in the first year of their FHA-insured mortgage. For the average borrower purchasing a one-unit single family home with a down payment of 3.5 percent and a mortgage amount of $467,700 the national median home price as of December 2022 – FHA’s annual MIP reduction will save them more than $1,400 in the first year of their mortgage.
Wednesday, the Biden-Harris Administration announced reduced costs for FHA-backed mortgages.
In lowering annual mortgage insurance premiums 0.30 percentage points, the government makes homeownership more affordable and attainable for first-time buyers.
Kentucky FHA loans can be an excellent option for first-time homebuyers and borrowers with lower incomes or less-than-perfect credit. They can also be an easy way to refinance. .
Features and benefits:
Low down payment from borrower or other approved source1
580 credit score with 96.5 Financing and down to 500 score with 500 score on case by case
Streamline option refinance with no appraisal
Up to 6% seller contributions to pay your closing costs and prepaids
AUS with FHA TOTAL Mortgage Scorecard
Waivers for some ratio and documentation
Purchase, rate/term, or cash-out refinance of a primary residence. Program terms available may vary based on the state or county in which the financed property is located. Mortgage insurance is required. CONSIDERATIONS: Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing. Please consult your tax advisor regarding the deductibility of interest. Contributions may have limitations based upon occupancy and loan to value ratios and cannot be used for purposes of down payment, reserve requirement or meet minimum contribution requirements Programs for qualified borrowers. All borrowers are subject to credit approval, underwriting approval and product requirements, including loan to value, credit score limits and other lender terms and conditions. Fees and charges may vary by state and are subject to change without notice. Some restrictions may apply. Not a commitment to lend. 11/22
Getting An FHA Loan
In order to get an FHA loan to buy your next house, it’s a good idea to first check your credit score. That way, you can see what your maximum LTV would be through the FHA and decide whether an FHA loan might be right for you.
Depending on which FHA lender you’re working with, it may also be a good idea to get pre-qualified for an FHA loan. This can help you establish how much you’ll likely be able to borrow and what your interest rate may be.
Application and Underwriting
Once you’ve identified a home you want to purchase and are ready to formally apply for your mortgage loan, you’ll need to choose an FHA-approved lender and work through its individual application and underwriting process. The application process will include completion of a Uniform Residential Loan Application.
As part of your application, you’ll also need to get an appraisal for the home you’re buying, so your lender can ensure your loan won’t violate FHA’s LTV limits. From there, you’ll need to work through your individual lender’s underwriting process, which will include showing proof of income, running credit checks and demonstrating that you can afford your down payment.
Some of the documentation you’ll likely need to supply for underwriting include:
A credit report
Employment history for two years
Income verification with recent pay stubs, bank statements and/or three years of tax returns
Proof that you are using the loan for a primary residence
An FHA-approved appraisal
After you complete your lender’s application process and underwriting, your lender can formally approve your loan and you can close on your home.
Who Should Consider FHA Loans
FHA loans don’t have stated income maximums or minimums, but are generally designed to benefit low- to moderate-income Americans who would have trouble qualifying for conventional financing or affording the down payment required by other loans.
Some potential cases when FHA loans can be particularly helpful include:
First-time homebuyers who can’t afford a large down payment
People who are rebuilding their credit
Seniors who need to convert equity in their homes to cash
Types Of FHA Loans
There are more than a dozen home loan programs available through the FHA. Many of these programs are ideal for different borrowers in a variety of circumstances, offering everything from 30-year fixed-rate mortgages to adjustable rates, improvement loans, refinancing solutions and even reverse mortgages.
Some of the most popular FHA loan programs are:
FHA Section 203(b) loan. The FHA’s most popular home loan program, offering fixed rates on properties from one to four units.
FHA Section 203(k) loan. FHA mortgages designed to help homebuyers finance up to $35,000 in improvements to their new homes.
Streamline Refinancing. An option for existing FHA borrowers to refinance their loans with streamlined underwriting.
FHA Loans Vs. Conventional Mortgages
Most conventional mortgages require down payments of at least 20% of a home’s purchase price in order to avoid paying private mortgage insurance, along with minimum credit scores of 620 to 640 in order to qualify. With private mortgage insurance (PMI) that helps homeowners pay their mortgage if they lose their jobs, some lenders require lower down payments.
FHA loans have two types of built-in mortgage insurance that allow borrowers to buy homes with as little as 3.5% down—or 10% if they have bad credit. In addition, these loans allow homebuyers to qualify for lower interest rates than they would get with conventional mortgages, all because their loans are federally insured.
FHA Loan
Conventional Mortgage
Minimum credit score
500
620
Minimum down payment
3.5% if your credit score is 580 or higher; 10% for scores under 580
20% to avoid mortgage insurance
Maximum loan term
30 years
30 years
Mortgage insurance requirement
Two types of mortgage insurance required
Required if down payment is under 20%
Pros of FHA Loans
High maximum loan-to-value
Competitive interest rates
Multiple programs available
Can qualify with bad credit
Closing costs are sometimes paid by lenders
Cons of FHA Loans
Mortgage insurance is required for extra cost
Only available for a primary residence
Must show proof of income
Debt-to-income ratio must be under 43% (slightly lower than a conventional loan requires)
Bottom Line
The Federal Housing Administration (FHA) was created in the 1930s in response to the Great Depression to help Americans who couldn’t otherwise afford the dream of homeownership.
Today, the FHA continues to help Americans through more than a dozen loan programs that help Americans with low incomes or bad credit qualify for lower interest rates than they would otherwise get, and buy homes with much smaller down payments than those required by conventional lending tools. The FHA does this by working with approved lenders to insure loans across the country and by building two types of mortgage insurance into all of the loans that it insures.
So, if you have poor credit or are struggling to save for a down payment, you may want to consider using an FHA loan for your next home purchase.
Joel Lobb Mortgage Loan OfficerIndividual NMLS ID #57916
$5000 WELCOME HOME GRANT KENTUCKY, $7500 DOWN PAYMENT ASSISTANCE KHC, 10000 DOWN PAYMENT ASSISTANCE, 2023 WELCOME HOME PROGRAM FOR KENTUCKY HOME BUYERS, WELCOME HOME GRANT $10,000 FOR 2023 KENTUCKY HOMEBUYERS, WELCOMEO HOME PROGRAM $5000 GRANT
HUD INCREASES FLOOD INSURANCE OPTIONS FOR KENTUCKY HOMEOWNERS WITH KENTUKY FHA MORTGAGES LIVING IN FLOOD AREAS
Federal Housing Administration to allow private flood insurance policies on insured single-family mortgages in special flood hazard areas
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), is announcing today that effective December 21, 2022, it will allow homeowners with FHA-insured mortgage financing to obtain flood insurance policies that conform to FHA requirements from private insurance providers. The change was announced through a final rule published in the Federal Register today and in a companion Mortgagee Letter, also published today, that provides implementation guidance for FHA-approved lenders.
FHA requires that insured mortgages for properties in Federal Emergency Management Agency (FEMA)-designated Special Flood Hazard Areas (SFHAs) have flood insurance. Previously, only flood insurance obtained through the National Flood Insurance Program (NFIP) was permissible for FHA-insured mortgages, which limited choices for consumers.
“Today, HUD is increasing the flood insurance choices available to individuals and families with FHA-insured loans in areas that FEMA has designated to be at special risk for flooding,” said HUD Secretary Marcia L. Fudge. “Flood insurance is required to ensure families and individuals are prepared if disaster strikes. Increasing consumer options for this important protection is one way we are building more resilient communities in the face of climate change.”
“We know borrowers face affordability challenges right now, yet a flood can be devastating to a family who is not properly insured,” said Federal Housing Commissioner Julia Gordon. “The choice to select a private flood insurance option may enable some borrowers to obtain policies that are less expensive or provide enhanced coverage.”
As part of its implementation, as of December 21, 2022, FHA will require lenders to provide detailed flood insurance coverage information when electronically submitting mortgages for FHA insurance on properties in SFHAs. This data collection is an objective included in HUD’s Climate Action Plan and will allow FHA to capture and analyze flood insurance information on mortgages in its portfolio at a more granular level than has been possible previously.
Ensuring that borrowers are protected against flood risk is a key component of HUD’s Climate Action Plan. In 2021, HUD released its Climate Action Plan in response to President Biden’s Executive Order on Tackling the Climate Crisis at Home and Abroad. HUD has been implementing this broad approach to the climate crisis that reduces climate pollution; increases resilience to the impacts of climate change; protects public health; delivers environmental justice; and spurs well-paying union jobs and economic growth. The action today further guides the integration of climate resilience and environmental justice into HUD’s core programs and policies. For more information about HUD’s work to advance sustainable communities and address climate change, visit hud.gov/climate.
Here are the facts about flood insurance in regards to FHA mortgage loans in Kentucky:
A lender will require if the Kentucky home mortgage property is in a flood zone. High-Risk areas are A or V. Zone X doesn’t require it.
The flood zone is based on local elevation certificates. Sometimes the surveys on these certificates are old, and updates can be requested. There is usually a cost involved, but it can lower the Zone so it may be worth it.
3. Kentucky Insurance companies think of floods as very different than the general public. Most people think flooding is when a body of water rises and gets into your house. Floods are defined as any ground-water entering a house from the outside. Even if you are not in a flood zone, groundwater damage won’t be covered by homeowner’s insurance.
4. Kentucky Flood insurance is priced by FEMA regardless of what the company writes it. All rates will be the same and shopping won’t help. If one company has different rates, it will always be a difference in coverage.
5. Flood insurance in Kentucky flood zones are expensive, but outside flood zones, it is more cost-effective. This is up to the individual to decide whether they want it or not.
6. Flood insurance coverage does not begin until 30 days after the policy is bound and the Kentucky Mortgage has closed. New Purchase no waiting period.
7. Kentucky Flood insurance costs are higher for non-owner-occupied property such as rental property.
8. A customer in Kentucky can mitigate costs by only covering the property structure or contents only in the lowest floor.
If the finish grade beneath the Kentucky Mobile Home or manufactured home is at or above the 100 yr return frequency flood elevation, so the only other option to be eligible for FHA financing is if a LOMA is issued by FEMA. Like I said, I do not know if FEMA will issue a LOMA, but worth a try. Here are Kentucky FHA guidelines for mobile homes in Flood plains
(d) Eligibility for Manufactured Housing in SFHAs The finished grade level beneath the Manufactured Home must be at or above the 100-year return frequency flood elevation. If any portion of the dwelling, related Structures or equipment essential to the Property Value and subject to flood damage for both new and existing Manufactured Homes are located within an SFHA, the Property is not eligible for Kentucky FHA mortgage insurance unless the Mortgagee obtains:
a FEMA issued LOMA or LOMR that removes the Property from the SFHA; or
a FEMA National Flood Insurance Program (NFIP) Elevation Certificate (FEMA Form 086-0-33) prepared by a licensed engineer or surveyor stating that the finished grade beneath the Manufactured Home is at or above the 100-year return frequency flood elevation, and insurance under the NFIP is obtained.
When making a determination for flood insurance purposes, the controlling document is the current effective Flood Insurance Rate Map. FEMA understands that sometimes structures will be shown to fall within the flood hazard area on the flood map when in reality the structure is elevated above the flood hazard. FEMA has created a process called the Letter of Map Amendment (LOMA) where they will review the elevation of the structure to determine if it can be removed from the flood hazard.
FEMA specifically reviews the Lowest Adjacent Grade and compares it to the Base Flood Elevation. Unfortunately, because FEMA says the FIRM is the controlling document, SLNF is not able to revise our determination until FEMA has amended the FIRM through the LOMA process. Because the elevation certificate has already been obtained, there will not be any additional cost to apply for the LOMA.
Below is a link to the FEMA website, where an instruction packet (How to fill it out, what to include, and where to send it) and the application can be found for the LOMA. You may also call the FEMA Map Information Exchange at (877) FEMA MAP with questions regarding the LOMA process.
The LOMA process generally takes 6-8 weeks to complete. The current year’s insurance premiums will be refundable through the National Flood Insurance Program (NFIP) if a LOMA removal is issued for the structure. Please let us know if you have any questions.
HUD INCREASES FLOOD INSURANCE OPTIONS FOR KENTUCKY HOMEOWNERS WITH KENTUKY FHA MORTGAGES LIVING IN FLOOD AREAS
Federal Housing Administration to allow private flood insurance policies on insured single-family mortgages in special flood hazard areas
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), is announcing today that effective December 21, 2022, it will allow homeowners with FHA-insured mortgage financing to obtain flood insurance policies that conform to FHA requirements from private insurance providers. The change was announced through a final rule published in the Federal Register today and in a companion Mortgagee Letter, also published today, that provides implementation guidance for FHA-approved lenders.
FHA requires that insured mortgages for properties in Federal Emergency Management Agency (FEMA)-designated Special Flood Hazard Areas (SFHAs) have flood insurance. Previously, only flood insurance obtained through the National Flood Insurance Program (NFIP) was permissible for FHA-insured mortgages, which limited choices for consumers.
“Today, HUD is increasing the flood insurance choices available to individuals and families with FHA-insured loans in areas that FEMA has designated to be at special risk for flooding,” said HUD Secretary Marcia L. Fudge. “Flood insurance is required to ensure families and individuals are prepared if disaster strikes. Increasing consumer options for this important protection is one way we are building more resilient communities in the face of climate change.”
“We know borrowers face affordability challenges right now, yet a flood can be devastating to a family who is not properly insured,” said Federal Housing Commissioner Julia Gordon. “The choice to select a private flood insurance option may enable some borrowers to obtain policies that are less expensive or provide enhanced coverage.”
As part of its implementation, as of December 21, 2022, FHA will require lenders to provide detailed flood insurance coverage information when electronically submitting mortgages for FHA insurance on properties in SFHAs. This data collection is an objective included in HUD’s Climate Action Plan and will allow FHA to capture and analyze flood insurance information on mortgages in its portfolio at a more granular level than has been possible previously.
Ensuring that borrowers are protected against flood risk is a key component of HUD’s Climate Action Plan. In 2021, HUD released its Climate Action Plan in response to President Biden’s Executive Order on Tackling the Climate Crisis at Home and Abroad. HUD has been implementing this broad approach to the climate crisis that reduces climate pollution; increases resilience to the impacts of climate change; protects public health; delivers environmental justice; and spurs well-paying union jobs and economic growth. The action today further guides the integration of climate resilience and environmental justice into HUD’s core programs and policies. For more information about HUD’s work to advance sustainable communities and address climate change, visit hud.gov/climate.
Top 4 reasons why mortgage applications are denied
1. Debt-to-income ratio
Whether you go through a traditional bank or a mortgage lender, your debt-to-income ratio is one of the most important elements of your mortgage application. This ratio is a simple measure of how much debt you carry expressed as a percentage of the amount of money you earn before taxes and deductions each month.
To figure out your debt-to-income ratio, add up all of your monthly debts (including student loans, car payments, credit card bills, and other loans with fixed payments, but not including utilities bills and other variable monthly expenses) and divide it by your gross—or pre-tax—monthly earnings. Most mortgage lenders are looking for a debt-to-income ratio that doesn’t exceed 45 to 50 %, and that includes the mortgage payment you are applying to take on.
If your debt-to-income ratio is too high to consider taking out a…
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100% Financing
100% financing Kentucky Home Loan
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VA loan
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FHA
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welcome home funds ky
Grants
Credit Scores
Credit Scoresrequired for KHC
Credit Reports
Refinance of Mortgage
manufactured homes
Foreclosure
USDA Rural Development
Rural housing
USDA
Kentucky Housing Corporation (KHC)
Customer Testimonials From Real Kentucky Home Buyers😍😍
Refinancing
Documents Needed for a Mortgage Loan Approval
Debt-to-Income Ratio for Kentucky Mortgage Loans:
STUDENT LOANS
There’s no universal minimum credit score needed for a mortgage, but a better credit score will give you more options.
If you’re trying to get a mortgage, your credit score matters. Mortgage lenders use credit scores — as well as other information — to assess your likelihood of repaying a loan on time.
Because credit scores are so important, lenders set minimum scores you must have in order to qualify for a mortgage with them. Minimum credit score varies by lender and mortgage type, but generally, a higher score means better loan terms for you.
Let’s look at which loan types are best for different credit scores.
Credit score needed to buy a house
Mortgage lending is risky, and lenders want a way to quantify that risk. They use your three-digit credit score to gauge the risk of loaning you money since your credit score helps predict your likelihood of…
The Federal Housing Administration (FHA) Mortgagee Letter (ML) 22-17 announced that FHA’s Technology Open To Approved Lenders (TOTAL) Mortgage Scorecard will begin scoring a borrower’s positive rental payment history as part of the credit risk analysis when they are applying for FHA-insured financing.
TOTAL will begin scoring on or after October 30, 2022, as well as for case numbers assigned on or after September 20, 2021, allowing lenders to implement the guidance on existing pipeline cases without the need to obtain a new case number.
Kentucky FHA Mortgage Lender 