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Kentucky FHA Guideline Update
FHA has published the following guideline updates, which will be effective for all Kentucky FHA loans with case numbers assigned on or after September 9th
- Specific verbiage for Well Water Testing has been added indicating that it must be performed by a disinterested party in a method acceptable to the local health authority. The borrower or any other interested party may not have contact with the sample. Additionally, cases mandating a Well Water Test have been added to include (but not limited to) the following
- Newly constructed properties and/or wells
- Properties with deficiencies in the well or well water as determined by an appraiser
- Areas where water has been reported or is otherwise known to be unsafe
- Properties located in close proximity to dumps, landfills, industrial sites, farms, or other sites that could contain hazardous waste
- Properties where distance between well and septic systems is less than 100 feet
- Clarification issued indicating how to calculate FHA income for Overtime, Bonus, or Tip Income must be calculated using the lesser of
- Average Overtime, Bonus, or Tip income earned over the previous 2 years (or if earned less than 2 years, the total length of time it has been received); OR
- Average Overtime, Bonus, or Tip income earned over the previous year
- All requirements regarding unreimbursed business expenses and Commission Income or Automobile Allowances has been completely removed to align with current IRS tax laws
- Rent Below Fair Market has been defined as an inducement to purchase when the borrower is allowed to live in the property rent free or at a rental amount more than 10 percent under the fair market rent as determined by the appraiser.
- Clarification has been added that Reduction in Term for Kentucky FHA Mortgage Streamline Refinances refers specifically to the reduction of the remaining amortization period of the existing mortgage.
If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.
Text or call phone: (502) 905-3708
email me at kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/
This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.
**Download Fair Housing Booklet – CLICK HERE
All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines
Remember, we are even available this weekend for pre-qualifications or questions. Call our cell phone or email us. If you miss us, leave a message and we WILL call you back
Kentucky FHA Guidelines for 2024
FHA pros and cons
FHA loans are a good option, especially if you have low credit or a lot of debt. But they come with their own set of drawbacks too.
FHA pros
Some of the best reasons to apply for an FHA home loan include:
- Lenient credit requirements: You can generally qualify for maximum FHA financing with a credit score of 500 to 580 versus a 620 to 640 score for a USDA loan. You might also be eligible with a credit score between 500 and 579 if you can make a 10% down payment.
- Higher debt-to-income ratios: Your back-end DTI — that is, your total monthly debt obligations — can be as high as 56.9% for FHA loans, but only 45% for USDA loans.
- Potentially lower interest rates: FHA interest rates can be lower than rates for USDA loans because you have the option to choose shorter repayment terms, including a 15-year fixed interest rate. The USDA only offers 30-year fixed loans, which naturally have higher rates.
- Multi-family units can qualify: Properties with up to four units can qualify for financing with an FHA loan when one unit is your primary residence. For example, purchasing a duplex with an FHA loan is allowed as long as you live in one half of the property. Like USDA loans, however, second homes and investment properties are ineligible.
FHA cons
- Higher down payment requirements: Depending on your credit score, you’ll need to make a 3.5% or 10% down payment. USDA loans require no down payment.
- Higher mortgage insurance premiums: Your upfront and annual mortgage insurance premiums are higher than the USDA guarantee fee and annual fee.
- Difficult to cancel mortgage insurance: You’ll pay an annual mortgage insurance premium for the life of the loan unless your down payment is at least 10% — in which case, you’ll only pay mortgage insurance for the first 11 years.
KENTUCKY FHA MORTGAGE GUIDELINES FOR 2020
- FHA – 620+ Min Fico Approve Eligible / NO OVERLAYS-NONE!
- FHA – 620+ FICO for PURCH, RT, C/O including Flips & High Balance
- FHA – 640+ REFERS OK!—no overlays -u/w directly to 4000.1
- FHA – 640+ MANUALS up to 50% DTI (with 2 comp factors)
- FHA – 620+ No DTI CAP – Follow AUS Findings!!! (with approved eligible)
- FHA – 620+ NO Minimum Credit History or Trades with AUS Approval!
- FHA – 620+ – No VOR Unless Required by DU Findings!
- FHA – Transfer appraisals from ANY lender/AMC OK!
- FHA – ORDER YOUR APPRAISAL FROM 20+ AMCs YOU CHOOSE!
- FHA – Collections – HUD Guides Apply –
- FHA – Mortgage Lates OK if AUS Approved!!!
- FHA – ESCROW STATE – Non Purchasing Spouse derogs ignored – only affects DTI
- FHA – Borrower w/ Work Permits, Non-Resident Alien OK!
- FHA – 1 Day off Market for Cashout Refi! – Must be off market before date of loan application!
- FHA – Rental Income on 2-4 units ok FTHB
- FHA – STREAMLINE – 620 Minimum
- FHA – Streamline – 620 Score – No Appraisal, No Income, No AVM, No Credit Qualifying!!!
- FHA – Streamline -Investment and 2nd Homes OK!
- FHA – Streamline – Mtg only on subject property only!
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.
How to qualify for a Kentucky FHA Home Loan ?
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
Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
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.
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Kentucky FHA Loan Limits for 2019
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Kentucky FHA Loan Limits for 2019
FHA has announced new loan limits for 2019. For all FHA loans with Case Numbers assigned on or after January 1st, the following will be effective
these values are updated to coincide with the new FNMA loan limit floor values.
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Kentucky Lending Limits for FHA Loans in KENTUCKY Counties
FHA mortgage lending limits in KENTUCKY vary based on a variety of housing types and the cost of local housing. FHA loans are designed for borrowers who are unable to make large down payments.
HUD Announces Higher FHA Loan Limits for 2019
December 20, 2018 – The HUD official site has announced higher FHA home loan limits for 2019. The higher loan limits are attributed to what the agency describes as “robust” increases in median housing prices over the last year. Nationwide, the limit for “average” housing markets-defined as those not in high-cost or low-cost areas-is set in 2019 at $314,827.
That is an increase from 2018 when the limit was set at $294,515.
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Joel Lobb (NMLS#57916)
Senior Loan Officer
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
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#57916 http://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.
22 New Fannie Mae Homes in Kentucky
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Frequently Asked Questions about FHA Kentucky Home Loans
Frequently Asked Questions about FHA Kentucky Home Loans.
via Frequently Asked Questions about FHA Kentucky Home Loans.
FHA to 50%…up to 55% with comp factors and a strong borrower
Manual UW’s on FHA/ to 620 Score
FHA purchases and R/t refi’s down to a 580 with DU Approved Eligible
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Joel Lobb
Senior Loan Officer
Senior Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
phone: (502) 905-3708
Fax: (502) 327-9119
Company ID #1364 | MB73346
Kentucky FHA Streamline Refinance
Our Kentucky FHA lenders can help you buy a home with no money down or refinance to the lowest rates possible!
via Kentucky FHA Streamline Refinance.
Kentucky FHA Streamline Refinance
Welcome to the Kentucky FHA Streamline Refinance program! Our KY FHA lenders can help you save money each month on your FHA mortgage. Want to take advantage of the current low rates? No problem! We service all areas of The Bluegrass State and we’re here to help!
This FHA Streamline Refi process is so simple that it’s been called “Streamline” because it allows you to refinance the interest rate on your current home mortgage rather quickly. Appraisals are usually not required and there is also less paperwork involved – saving both you and the lender time and money!
***Starting June 11, 2012 if you currently have an FHA loan you may qualify for a refinance that will reduce your upfront mortgage premium to only .01 percent and your annual premium of .55 percent!***
Louisville Ky homeowners looking to for a FHA refinancing offers benefits for current real estate home owners who are seeking to complete a refinance mortgage of their existing real estate mortgage (s).
Some advantages of using a Louisville KY FHA mortgage for your mortgage refinance are as follows:
- Cash-Out Refinance up to 85% for existing or new FHA mortgages.
- Cash-Out up to 85% of your properties value.
- Consolidate first and second mortgages into single loan.
- Bill consolidation programs.
- Easier credit and income qualifications.
- FHA regulated closing costs.
- Rate and Term Mortgage Refinancing up to 96.5% of your homes value.
- Consolidate first and second mortgages* into a single loan.
- min. 640 credit score.
- Competitive rates for borrowers with a Bankruptcy older than two years.
- Competitive rates for borrowers with a Foreclosure older than three years.
- Easier credit and income qualifications.
- FHA regulated closing costs.
- Louisville KY FHA Streamline Refinance for existing FHA loans only.
- No Cost Interest Rate Reductions programs.
- No Income or Credit Qualifications*.
- Zero cost refinance options available.
- Easily switch amortization for adjustable to fixed or vice versa.
- Easily shorten or lengthen term of your existing loan.
- Easier credit and income qualifications.
What Are the New Changes That Make FHA Streamline Loans Even Better?
These home loans have been available for years. Unfortunately, recent increases to mortgage insurance (MI) premiums often wiped out the savings for those refinancing.
At least until now…
New changes to the FHA Streamline program apply to those whose FHA-insured home loans were endorsed on or before May 31st, 2009.
In an effort to assist more Kentucky homeowners with FHA mortgages to refinance at today’s incredibly interest rates FHA mortgage insurance rates were reduced, effective June 11th, 2012.
This new change alone means thousands of dollars in savings for most borrowers.
According to the FHA, based upon a $200,000 30 year mortgage with a loan-to-value higher than 95%, those who took out loans on or before May 31st, 2009, will now realize the following savings:
- NO employment verification is required*
- NO income verification is required*
- NO credit score verification is required*
Kentucky FHA Mortgage Lender 