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What is an FHA Loan and Is It Right for You?

Source: What is an FHA Loan and Is It Right for You?

 

What Is An FHA Loan And Is It Right For You?

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By Realty Times 

The Federal Housing Administration insures what are called FHA loans. These mortgage loans provide opportunities for buyers with less-than-perfect credit or limited down payments to purchase homes, but they aren’t without potential pitfalls.

FHA loans are available to borrowers with a credit score of at least 580, and you have to make a minimum 3.5% down payment. They’re a popular option for first-time home buyers.

Lenders such as banks and credit unions issue the mortgages, which are insured by the FHA. That protects the lender if the borrower defaults, which is why the terms are more favorable than a traditional mortgage.

Around eight million single-family homes have loans insured by the FHA.

What Can an FHA Loan be Used For?

You can use an FHA loan to refinance single-family houses, to buy a single-family home, to buy some multifamily homes and condos and certain mobile and manufactured homes. There are particular types of FHA loans that can be used to renovate an existing property or for new construction.

How is an FHA Loan Different from a Conventional Mortgage Loan?

The biggest differentiator between an FHA loan and a conventional mortgage is that it’s easier to qualify for an FHA loan. You may get a loan with a lower credit score than you would otherwise, and your mortgage insurance payments may be lower too.

There are also fewer restrictions as far as using gifts from family or donations for your down payment.

If you have a FICO score of at least 580, you have to make a 3.5% down payment. With a FICO score between 500 and 579, you’re required to make a 10% down payment, and mortgage insurance is required. Your debt-to-income ratio needs to be less than 43% whereas with a conventional loan it’s usually 36%. You do need to have proof of income and steady employment, as you would need with a conventional loan.

Are There FHA Loan Limits?

There are limits on the mortgage amount you can get with an FHA-guaranteed loan. The limits vary based on your county, and in 2020 these ranged from $331,760 to $765,600. The limit amounts are updated by the FHA each year based on fluctuations in home prices.

The Benefits of the FHA Loan

The primary benefits of an FHA loan are that buyers who wouldn’t otherwise qualify may be able to own a home and for a lower down payment. Sometimes the FHA will help facilitate coverage of closing costs. If you have problems making payments on an FHA loan you may be eligible for a forbearance period if you qualify.

What Are the Downsides of an FHA Loan?

You will have to pay an upfront mortgage insurance premium with an FHA loan to protect the lender. The fee is due when you close and it’s 1.75% of your loan. You will also have to pay an annual mortgage insurance premium for the life of your loan. The amount can range between 0.45% and 1.05%.

When you buy a home with an FHA loan, it has to meet strict standards in terms of health and safety.

Also, while there are set standards from the FHA, approved lenders can create their own requirements.

Applying for an FHA Loan

You’ll have to first find an FHA-approved lender to get one of these home loans. You’ll need some documents, including proof of U.S. citizenship, legal permanent residency, or eligibility to work in America. You’ll need bank statements for at least the past 30 days, and you’ll probably need to show pay stubs.

Some of the information your lender may be able to obtain on your behalf, such as your credit reports, tax returns and employment records.

There are advantages to an FHA loan because it expands homeownership to more people than conventional loans. It’s just important that if you’re considering this loan you understand the costs and that you’re not taking on more than you’re financially prepared for because of the less stringent approval requirements.

Written by Ashley Sutphin for http://www.RealtyTimes.com Copyright © 2020 Realty Times All Rights Reserved.

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How does Kentucky FHA Mortgage Rates work?

Kentucky FHA mortgage loans are backed by the Federal Housing Administration under the umbrella of HUD. FHA loans were developed to help borrowers that don’t have a large down payment and a weaker credit profile to buy and refinance their home mortgage loan. 

​Kentucky FHA rates are backed by the government, so they are typically lower than other mortgage rates in the secondary market like Conventional loans and portfolio loans at banks, but fall in line compatible to other backed government loans in the secondary market likeUSDA, VA, mortgage loans. Most people seeking FHA mortgages will get a 30 year, 20 year of 15 year fixed rate loan with the security of the house payment not changing. ​

​Lower Credit Standards and Credit Scores for FHA loans

FHA mortgages will go down to a 500 credit score with at least 10% down payment, and if your credit score is higher than 580, you can put the minimum of 3.5% down payment. Additionally, you need to be only 2 years removed from a Chapter 7 bankruptcy, or 1 year from a Chapter 13 bankruptcy.

​Mortgage Insurance on FHA loans

Mortgage insurance is required on most FHA loans and is usually for life of loan with everyone paying the same. If you have a higher credit score and a larger down payment, it would make sense to look at doing a conventional mortgage loan because they are based on your credit score, money down, and debt to income ratio and not for life of loan. 

You can get a lower FHA mortgage insurance premium and not have to finance the premiums for life of the loan if you put more than 10% down payment and finance on a 15 year term. 

​Why would you consider a FHA mortgage?

​My best opinion is this. ​​​If you have a bankruptcy that is less than 4 years, have a credit score lower than 660, and very little money down, I would recommend at looking to do a FHA mortgage Loan. Your chances of getting approved with likely result in a loan approval as opposed to doing a conventional loan backed by Fannie Mae. 

Why would you consider a Conventional Loan?

My best opinion is this. If you have a bankruptcy over 4 years or longer, at least 5% down payment, a credit score of 680 or higher, I would look doing a conventional mortgage loan. 

 

 

 

​I can help you understand what mortgage is correct for you. Please contact me below and I will be happy to answer any questions. 

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
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#57916http://www.nmlsconsumeraccess.org/

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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

 

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.

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What are the requirements to  qualify for a Kentucky FHA Mortgage?

What are the requirements to  qualify for a Kentucky FHA Mortgage in 2020?

Kentucky  FHA loan is a mortgage that is insured by the Government agency under Housing and Urban Development that is called FHA or short for Federal Housing Administration. The loan was established for Kentucky Home buyers will very little or no money down home loans with more  lenient credit score and  income requirements  and tends to be more forgiving about credit history with regard to bankruptcy and foreclosures, higher debt to income ratios and job history with limited work history for home buyers will only 2 years work history or less.

Kentucky FHA Credit Score Requirements and Down Payment Requirements

The Kentucky FHA  home loan  program may accept credit scores as low as 580 and require at least a 3.5 percent down payment of the sales price on a purchase. If you have a credit score below 580, then  a 10 percent down payment or more may be acceptable some FHA lenders in Kentucky , providing you meet all program guidelines in regards to debt to income ratios, assets, and income requirements .  The loan cannot be used for rental properties and does allow for co-signers if they are related.

Remember, these guidelines are set forth by FHA and all lenders do not have to offer these guidelines, to whereas they may a higher credit score or more money down or income restrictions on how much you can qualify for.

Kentucky FHA Mortgage Loans and Bankruptcy or Foreclosure

In case you had a  blemish on your credit report with a bankruptcy, short sale or foreclosure, follow these guidelines.

Kentucky FHA loans requires a passage of two years since the discharge date of a chapter 7 bankruptcy. A chapter 13 bankruptcy may be acceptable after at least 12 months of an on time pay-back period and the borrower has received permission from bankruptcy court to enter the mortgage transaction, and you qualify with the new house payment along with other debts on the credit report.

Three years must pass if you went through a short sale or foreclosure. The date starts when the home was sold, not when you entered the transaction toward foreclosure or short sale period. Sometimes the house will not sell to 1-2 years later after the foreclosure and this is when the passage date starts. Keep this in mind on your next FHA loan pre-approval if you have had a bankruptcy or foreclosure in the past.

Kentucky FHA Loans and Mortgage Insurance

FHA loans have two forms of mortgage insurance which protects the lender for any losses suffered if the borrower defaults on the payment. ne is called upfront mortgage insurance premium (UFMIP) which has a rate of 1.75% of the loan amount. The fee can be added to the loan amount or paid in full as part of your closing costs. In addition, FHA loans also have a 0.8-0.85% (of the loan amount) monthly mortgage insurance. In most cases, this mortgage insurance remains for the life of the loan. To eliminate the mortgage insurance, the borrower must refinance the loan into a non-FHA loan program and have 20% equity in the property.

In addition to the down payment requirements on a FHA loan, they’re closing costs and prepaids to pay at closing. The  seller can contribute up to 6% of the sales price to help the buyer with closing costs and prepaid expenses. Closing costs vary from lender to lender and your prepaids would be the same no matter which lender you choose because this is a function of the property ‘s home insurance premium quote you obtain and the property tax bill on the home set by PVA.

Sometimes the lender can pay a credit toward these expenses at closing with a lender credit which lets the lender credit back to you with a higher rate to reduce the costs of the loan’s costs at closing for out of pocket expenses.

All Kentucky FHA loans are assumable, which means that when the homeowner sells a home, the buyer may be able to take on the existing loan and terms (e.g.: balance, rate and remaining loan amount). Of course, anyone interested in the assumable loan feature must go through the approval process (credit check, income verification) with the current lender on the property. This is a very rare occurrence because most sellers are going to sell the home for more than they owe on it.

Kentucky FHA Loan Requirements

 

 

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

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How to qualify for a Kentucky FHA Home Loan ?

How to qualify for a Kentucky FHA Home Loan ?

Image result for fha loans ky

 

FHA stands for the Federal Housing Administration which is a government agency created to increase home-ownership across the United States all the way back in 1934. The agency itself doesn’t offer home loans but insures loan that are offered by private lenders (i.e. mortgage companies).

It’s important to understand the different types of loan programs available to you and what benefits and drawbacks there are to each type.

For example, if you’re looking to find a fixer upper this may not be the right loan program for you. But an FHA loan may be a better fit for you if you have little cash saved up for a down payment or if you don’t have a high credit score.

Kentucky FHA loan requirements:

  • At least 18 years old to apply
  • No age limit. just must be 18 years of age to apply.
  • Must occupy the home as a primary residence, no rental homes or investment property
  • An appraisal must be done by an FHA-approved appraiser.Typically FHA appraisal in Kentucky costs anywhere from low-end $325 to $525 with most FHA lenders in KY.
  • Home inspection is not required
  • Termite inspection not required
  • 2 years removed from Chapter 7 bankruptcy, and 1 year in Chapter 13 bankruptcy is possible to get a loan while in bankruptcy
  • Foreclosure or short sale on previous home mortgage requires 3 years removal from those dates.
  • Mortgage insurance (MIP) is required
  • Upfront Mortgage Insurance Premium is 1.75% and monthly mortgage insurance is .85% or .80% depending on loan term and loan to value.
  • Mortgage insurance is for life of loan.
  • No matter your credit scores, everyone pays the same mortgage insurance premiums.
  • Must have 2 years of employment history proving a reliable source of income
  • 500 FICO score requirement with at least 10% down payment
  • 580 FICO score requirement with at least 3.5% down payment
  • Gifts and down payment assistance programs are allowed to meet your down payment requirements. Cannot come from seller, but seller can contribute up to 6% of the sales price toward buyer’s closing costs and prepaids.
  • Student loan payments are factored into the debt-to-income ratio when applying. Typically if loans are deferred, or in an income=based repayment plan, the FHA underwriters will use 1% of the outstanding balance, which sometimes can make it difficult to qualify.
  • Your debt-to-income ratio must not be higher than 31% or total debt obligation cannot be higher than 43% of your current income. This is for a manual underwriter, meaning that if the AUS underwriting system by mortgage lenders will approve you for a higher debt to income ratio, that is fine.

 

 

 

Joel Lobb (NMLS#57916)
Senior  Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708kentuckyloan@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#57916http://www.nmlsconsumeraccess.org/

— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

FHA vs Conventional Infograhic
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Student Loans In Collections, What Can I Do to get Approved For A Kentucky Mortgage ?

Student Loans In Collections, What Can I Do?
If you have public student loans in collections, you really have three options to resolve it so it is not a CAIVRS issue.
1.      Pay it off in full – Not typically an option because very rarely do the clients have the funds to do so.
2.      Consolidation – Only takes about 90 days to consolidate and resolve CAIVRS issues. However, you push forward the last activity dates, DLA, and also introduce a new credit trade line that dilutes the length of the credit history. So you will normally see a drop in credit score.
3.      Rehabilitation – It is the slowest of all the options, but is the best thing for the clients’ credit scores. It is a 9 month commitment and once the client makes 9 consecutive payments, they will change the collection status to a good standing status. This will typically net a 40-100 point boost in the score depending on how many other collections are on the credit report.
If your client does not know who is servicing the student loan, they can contact the Student Loan Default Resolution Team at 1-800-621-3115 or visit the website at myeddebt.ed.gov
Bonus Tip: Private student loans do not adhere to consolidation or rehabilitation rules. If the client has private student loans in collections they will need to pay them off in full, or they will need to set up a payment plan on them. They will still remain in collections with a payment, but if you can get a qualified credit score you can push forward the loan including the liability payment towards the debt to income ratio.
As always, we bring you the best content so you can do what you do best, CLOSE LOANS! If you aren’t already sending us every credit challenged borrower you have, what is stopping you?
Guidelines for KY FHA, VA, USDA and VA Mortgage loans with Student Loans on A Credit Report:
Kentucky Fannie Mae or Conventional Guidelines for Student Loans:
  • If a monthly payment is on the credit report, the lender may use that amount for qualifying purposes.
  • If a monthly payment is on the credit report is incorrect, the lender may use the monthly payment on the most recent student loan statement
  • If the monthly payment on the credit report is zero, the lender must use one of the following options to calculate the payment for qualifying purposes
  1. Document the borrower is on an income driven payment plan and the actual monthly payment is zero
  2.  Use 1% of the outstanding student loan balance as the monthly payment
  3. Calculate a fully amortized payment using documented loan repayment terms
Kentucky FHA Mortgage Loans Guidelines:
Regardless of the payment status (currently in payment or deferred), the lender must use either:
  • The greater of:
  1. 1% of the outstanding balance; or
  2. The monthly payment reported on the credit; or
  •  Calculate a fully amortized payment using documented loan repayment terms
Kentucky USDA or Rural Housing Guidelines:
 
 
Regardless of the payment amount reporting on the credit, the lender must include the payment as follows:
  • A permanent amortized, fixed payment may be used in the debt ratio when the lender retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed.
  • Payments for deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation. One percent of the loan balance reflected on the credit report must be used as the monthly payment. No additional documentation is required.
Kentucky  VA Mortgage Guidelines for Student Loan:
  • If the borrower can document the student loan will be deferred 12 months from the closing date, the monthly payment does not need to be considered
  • If a student loan is in repayment or scheduled to begin repayment within 12 months from the closing date, the threshold payment amount must be calculated by  using 5% of the loan balance divided by 12 months
  • If the payment reporting on the credit report is greater than the threshold payment calculation amount, then the credit report payment must be used for ratios.
  • If the payment reporting on the credit report is less than the threshold payment calculation and the lender is using the lower payment to qualify the borrower then:
  1. A statement from the student loan servicer reflecting the actual loan terms and payment information must be included in the file.
  2. The statement must be dated within 60 days of closing
  3. It is the underwriter’s discretion to use the lower payment

As you can see, Fannie Mae or Conventional loans is the most lenient when it comes to qualifying for a mortgage loan with someone that has a lot of student loans on their credit report.

 

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HUD down payment assistance on Kentucky  FHA mortgages

 

The Department of Housing and Urban Development announced this week that it is issuing new rules for down payment assistance on mortgages insured by the Federal Housing Administration. Click the headline for a full breakdown of which rules are changing and why.

Source: HUD announces new rules for down payment assistance on FHA mortgages

The new rules are laid out in an FHA mortgagee letter titled “Downpayment Assistance and Operating in a Governmental Capacity.”

According to HUD, this “clarification” of the current documentation rules “should assist mortgagees in determining whether governmental entities providing gifts or secondary financing, or both, towards borrowers’ MRI are doing so consistent with FHA requirements.”

As the FHA states in its mortgagee letter, the current FHA handbook requires mortgagees to confirm that a “governmental entity is operating in its governmental capacity but, except for requiring a source of funds letter, does not specify the necessary documentation that demonstrates support for such a conclusion.”

According to HUD, that lack of “necessary documentation” is leading to some unnamed “entities” skirting the rules.

“It has come to FHA’s attention that certain Governmental Entities may be acting beyond the scope of any inherent or granted governmental authority in providing funds towards the Borrower’s MRI in circumstances that would violate Handbook 4000.1, the National Housing Act, and is contrary to established law,” the FHA said in the mortgagee letter.

In order to remedy this situation, the FHA is now stating that its current documentation requirements need to be “clarified to provide Mortgagees with specific guidance regarding documentation that will give greater assurances that the standards for providing the MRI have been satisfied by the Governmental Entity.”

According to HUD and the FHA, the new rules took effect on April 18, 2019.

To read HUD’s announcement of the rule change, click here.

And for a full look at how the rules are actually changing and what documentation will now be required, click here.

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

 


email:          kentuckyloan@gmail.com

 

https://www.mylouisvillekentuckymortgage.com/

 

 

 

 

 

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FHA eliminates two unnecessary and outdated lending roadblocks

The Federal Housing Administration has taken steps to reduce some of the regulatory burdens that belabor the lending process, releasing two mortgagee letters Tuesday with updated guidelines on home warranty and inspection requirements for single-family FHA loans. FHA Commissioner Brian Montgomery said the moves align with the administration’s goal streamline and update guidelines in an effort to reduce regulatory barriers.

Source: FHA eliminates two unnecessary and outdated lending roadblocksKentucky FHA Guidelines for Inspections and Warranty's

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Cancel Mortgage Insurance, FHA, FHA Guidelines, fha mortgage insurance premiums, first time buyer kentucky, Kentucky FHA HUD Homes for $100 Down, Kentucky Housing, KY FHA LOANS, Louisville Ky Home Loans, mi changes for FHA, mip, Mortgage Insurance UFMIP

How to get rid of Mortgage Insurance on a Kentucky Mortgage Loan.

Eliminate FHA Mortgage Insurance On Your Kentucky FHA Loan.
 
 
Mortgage insurance premium can add almost $200 to the payment on a $265,000 FHA mortgage.  The decision to get an FHA loan may have been the lower down payment requirement or the lower credit score levels, but now that you have the loan, is it possible to eliminate it?
 
Mortgage Insurance Premium protects lenders in case of a borrower’s default and is required on FHA loans.  The Up-Front MIP is currently 1.75% of the base loan amount and paid at the time of closing.  Annual MIP for loans with greater than 95% loan-to-value is .85% per year. 
 
For loans with FHA case numbers assigned before June 3, 2013, when the loan is paid down to 78% of the original loan amount, the MIP can be cancelled.  The borrower may need to contact the current servicer.
 
However, for loans greater than 90% with FHA case numbers assigned on or after that date, the MIP is required for the term of the loan.
 
Most homeowners with FHA mortgages are not eligible to cancel the MIP because they either originated their loan after June 3, 2013, put less than 10% down payment and/or got a 30-year loan.  If they have at least 20% equity in the home, they can refinance the home with an 80% conventional loan which in most cases, does not require mortgage insurance.
 
With normal amortization on a 30-year loan, it takes approximately 11-years to reduce the original loan to the 78-80% requirement based on normal amortization.  There is another dynamic involved which is the appreciation on the home.  As the home goes up in value and the unpaid balance goes down, the equity increases.
 
If the homeowners believe that they have enough equity that would eliminate the need for mortgage insurance, they can investigate refinancing with a conventional loan.  Borrowers refinancing will incur expenses in starting a new mortgage and the interest rate may be higher than the existing rate.  Analysis will determine how long it will take to recapture the cost of refinancing.
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
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#57916http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, Appraisers FHA, cavirs, credit scores FHA loan, down payment grant, FHA, FHA Back to Work Program Ky, FHA Guidelines, fha mortgage insurance premiums, fico scores FHA loan, first time buyer kentucky, Good Neighbor Next Door Sales Program, HUD Foreclosure, HUD HOMES $100 Down, HUD HOMES FOR SALE KENTUCKYK, HUD REO PROPERTIES ELIGIBLE FOR THE $100 DOWN PAYMENT, Kentucky FHA HUD Homes for $100 Down, Kentucky FHA Important Links, KY FHA LOANS, Louisville Ky Home Loans

KENTUCKY HUD HOMES FOR SALE

KENTUCKY FHA $100 DOWN PROGRAM FOR HOMEBUYERS IN KENTUCKY​

Kiss-your-landlord-goodbye

FHA’s $100 Down Program​ is allowed for Kentucky Home Buyers buying a home that is owned by HUD or FHA​. The $100 Down sales incentive permits a Borrower to purchase a HUD REO Property with FHA-insured financing with a minimum downpayment of $100.

This program can ONLY be used to purchase homes owned by HUD OR FHA.

Check the link below to see if any properties are offered in your area. If a property is eligible, the listing on the website will specify $100 Down Financing Incentivize.

You can find all current listings for sale by HUD here.

100 down payment

The main factors in qualifying for this​ Kentucky FHA ​ program are that the property must be a HUD REO property and purchased using FHA Financing, aside from these, the requirements include:

  1. Occupancy: The property must be purchased for use as your Primary Residence.
  1. Property Type: Eligible properties include 1 or 2 unit homes, manufactured homes, condos, and PUDs.
  1. Full Price Offer: You must submit an offer for the full listing price. Typically, when you purchase a home, you make an offer to the seller…. we all want to get the best deal so you may offer less than the asking price… or you may offer more if the home you want is being bid on by many buyers…. With HUD REO properties this is not allowed. The sales price HUD has on the listing is what you must offer.
  1. Sales Contract: The $100 down payment incentive must be included on the executed sales contract.
  1. Cannot have purchased a HUD home within the preceding 24 months
  1. Credit Score:​ ​580 is the minimum FICO score you must have to qualify for a FHA Kentucky Home Buyer using the HUD $100 Down loan program. 
  2. Usually takes about 30-45 days to close
  3. Earnest Money Deposit usually needs to be at least $500 to $1000
  4. This is a manual underwriter meaning that your debt to income ratio has to be 31 and 43% respectively
  5. No Chapter 7 Bankruptcies in last two years
  6. No Foreclosures in last 3 years
  7. Clear Cavirs on borrowers.
*Required field, except if Property Case # or Zip Code is entered

Search Results for HUD Homes in KY
1 | 2 | 3 | 
47 listings found
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Property Case Address Price Status Bed Bath Listing Period Bid Open Date Details 
201-271516 345 Concord Dr
White Plains, KY, 42464
Hopkins County		 $13,600 3 1.00 Extended  11/29/2018 View Street
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201-278709 793 Highway 16
Glencoe, KY, 41046
Gallatin County		 $24,000 3 2.00 Extended  11/29/2018 View Street
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201-339965 2750 Latonia Ave
Covington, KY, 41015
Kenton County		 $33,600 2 1.10 Exclusive  12/03/2018 View Street
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201-340924 1309 Little Pigeon Ct
Lexington, KY, 40515
Fayette County		 $63,000 3 1.00 Lottery  11/29/2018 View Street
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201-347762 307 Elkhorn Green Pl
Georgetown, KY, 40324
Scott County		 $105,000 4 2.10 Exclusive  11/29/2018 View Street
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201-348170 820 Mars Dr
Verona, KY, 41092
Gallatin County		 $48,000 3 2.00 Extended  11/29/2018 View Street
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201-362370 194 Batton Loop
Morehead, KY, 40351
Rowan County		 $59,400 3 2.00 Extended  11/29/2018 View Street
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201-368065 199 Lake Trail Land
Russell Springs, KY, 42642
Russell County		 $34,400 3 2.00 Extended  11/29/2018 View Street
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201-370012 112 Cherry Lane
Frankfort, KY, 40601
Franklin County		 $50,000 2 2.00 Exclusive  12/03/2018 View Street
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201-372013 10057 Elizabethtown Rd
Big Clifty, KY, 42712
Grayson County		 $32,000 3 2.00 Extended  11/29/2018 View Street
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201-386189 4701 Dohn Rd
Louisville, KY, 40216
Jefferson County		 $51,000 3 1.00 Exclusive  12/10/2018 View Street
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201-387184 12804 Walnut Creek Dr
Alexandria, KY, 41001
Campbell County		 $159,000 4 2.10 Extended  11/29/2018 View Street
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201-391357 38 Lovelaceville Rd
Lovelaceville, KY, 42060
Ballard County		 $19,600 2 1.00 Extended  11/29/2018 View Street
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201-393499 620 Main Street
Uniontown, KY, 42461
Union County		 $26,100 3 1.00 Extended  11/29/2018 View Street
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201-396375 119 Crane St
Somerset, KY, 42501
Pulaski County		 $30,000 2 1.00 Exclusive  11/29/2018 View Street
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201-401444 151 Eastside Park Dr
Butler, KY, 41006
Pendleton County		 $50,400 3 2.00 Extended  11/29/2018 View Street
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201-407845 824 Pike St
Sadieville, KY, 40370
Scott County		 $27,000 1 1.00 Extended  11/29/2018 View Street
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201-411349 115 Jimmy Lovell Ro
Dawson Springs, KY, 42408
Hopkins County		 $75,000 2 1.10 Exclusive  12/10/2018 View Street
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201-412276 386 W Elm St
Clay, KY, 42404
Webster County		 $35,000 3 2.10 Exclusive  12/03/2018 View Street
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201-417838 147 Main Street
Newport, KY, 41071
Campbell County		 $38,500 1 1.00 Extended  11/29/2018 View Street
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1 | 2 | 3 
 

Search Results for HUD Homes in KY
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47 listings found
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Property Case Address Price Status Bed Bath Listing Period Bid Open Date Details 
201-427873 229 Rosedale Ct
Covington, KY, 41015
Kenton County		 $42,400 2 1.00 Extended  11/29/2018 View Street
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201-445853 902 Deer Haven Dr
Owensboro, KY, 42301
Daviess County		 $63,000 3 2.00 Extended  11/29/2018 View Street
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201-448631 13302 Horncastle Ave
Louisville, KY, 40272
Jefferson County		 $65,000 4 1.10 Exclusive  11/30/2018 View Street
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201-461769 511 1/2 Cleaver St
Elizabethtown, KY, 42701
Hardin County		 $20,000 1 1.00 Exclusive  12/03/2018 View Street
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201-481525 216 10th St
Carrollton, KY, 41008
Carroll County		 $117,000 4 2.00 Extended  11/29/2018 View Street
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201-483660 204 Village Dr
Frankfort, KY, 40601
Franklin County		 $143,000 3 2.10 Exclusive  11/29/2018 View Street
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201-484750 3256 N Highway 259
Hardinsburg, KY, 40143
Breckinridge County		 $45,000 3 1.00 Extended  11/29/2018 View Street
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201-503727 207 Canyon Ridge Rd
Wellington, KY, 40387
Menifee County		 $76,000 3 2.00 Extended  11/29/2018 View Street
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201-510934 5685 Old State Rd
Guston, KY, 40142
Meade County		 $60,000 3 1.00 Extended  11/29/2018 View Street
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201-513130 109 W Chestnut St
Carlisle, KY, 40311
Nicholas County		 $73,000 3 2.00 Exclusive  11/29/2018 View Street
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201-528046 330 Brookside Dr
Danville, KY, 40422
Boyle County		 $175,000 4 3.00 Extended  11/29/2018 View Street
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201-536556 1504 Robinson St
Grayson, KY, 41143
Carter County		 $46,400 3 1.00 Extended  11/29/2018 View Street
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201-537032 307 Liberty St
Carlisle, KY, 40311
Nicholas County		 $40,000 3 1.00 Exclusive  11/29/2018 View Street
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201-546596 38 Harrison Holw
Belfry, KY, 41514
Pike County		 $7,000 0 0.00 Extended  11/29/2018 View Street
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201-547160 324 Malone Rd
Bradfordsville, KY, 40009
Marion County		 $40,000 3 2.00 Exclusive  12/07/2018 View Street
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201-550376 3904 Taffy Rd
Whitesville, KY, 42378
Ohio County		 $50,000 3 2.00 Extended  11/29/2018 View Street
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201-557096 237 Wright St
Frankfort, KY, 40601
Franklin County		 $40,000 3 1.00 Extended  11/29/2018 View Street
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201-560972 5457 Ky Route 680
Grethel, KY, 41631
Floyd County		 $76,000 4 2.10 Extended  11/29/2018 View Street
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201-576631 67 Snake Lick Rd
Berry, KY, 41003
Harrison County		 $45,000 3 2.00 Exclusive  11/29/2018 View Street
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201-580027 255 Kingsway Dr
Frankfort, KY, 40601
Franklin County		 $65,000 3 2.00 Extended  11/29/2018 View Street
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1 | 2 | 3 | 

Search Results for HUD Homes in KY
1 | 2 | 3 | 
47 listings found
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Property Case Address Price Status Bed Bath Listing Period Bid Open Date Details 
201-580611 2410 Paddock Ln
Louisville, KY, 40216
Jefferson County		 $88,000 4 1.00 Exclusive  11/30/2018 View Street
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Email Info
201-580733 2294 Josephine Rd
Stamping Ground, KY, 40379
Scott County		 $108,000 4 2.00 Extended  11/29/2018 View Street
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Email Info
201-583071 104 Jonathan Ct
Somerset, KY, 42503
Pulaski County		 $108,900 4 2.00 Extended  11/29/2018 View Street
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Email Info
201-590501 13255 Dawson Springs Rd
Crofton, KY, 42217
Christian County		 $45,000 3 1.00 Exclusive  12/07/2018 View Street
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Email Info
201-601254 1044 Scenic Dr
Radcliff, KY, 40160
Hardin County		 $132,300 3 2.00 Extended  11/29/2018 View Street
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Email Info
201-604473 8180 Georgetown Rd
Owenton, KY, 40359
Owen County		 $69,000 3 2.00 Exclusive  12/07/2018 View Street
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Email Info
202-019773 516 Wood Street
Maysville, KY, 41056
Mason County		 $25,000 3 1.00 Extended  11/29/2018 View Street
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Email Info
1 | 2 | 3 | 
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans assets, FHA, FHA Guidelines, Gift funds, KY FHA LOANS

 FHA Mortgage Loans- Gifts to Pay off Debt to Qualify for a FHA Home Loan.

 

FHA Loans in Kentucky  – Gifts to Pay off Debt

Do you know that a gift can be used to pay off Borrower’s debts to qualify on an Kentucky FHA Loan?

A regular gift (this does not include a gift of equity) may be used to pay off a Borrower’s debt(s) for qualifying purposes as long as both the gift funds and the debt(s) being paid off with the gift funds are accurately disclosed and assessed by AUS TOTAL Scorecard. Whenever a gift is received on an Kentucky FHA loan, regardless of what it is being used for, it carries certain risks that must be assessed by TOTAL Scorecard for qualifying purposes.

When a gift is received to pay off debt(s), follow the steps below to ensure that TOTAL Scorecard accurately assesses the risk of using gift funds in paying off debt for qualifying:

  • Verify that evidence of the debt(s) having a zero balance has been obtained,
  • Enter the gift funds received separate from any account balances and check “will be paid off” for debts in loan origination system (not “paid off”), and
  • Submit the loan to TOTAL Scorecard
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
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#57916http://www.nmlsconsumeraccess.org/

— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.