Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans FHA Streamline Refinance, Mortgage Insurance UFMIP, Refinance, Streamline

Kentucky FHA Streamline Refinance

Kentucky FHA Streamline Refinance: Lower Your FHA Payment With Less Hassle

If you already have an FHA mortgage in Kentucky and you’re searching online for a way to lower your house payment, an FHA Streamline Refinance may be the fastest path to a lower monthly payment. In many cases it requires less documentation than a standard refinance, and it often does not require a new appraisal.

This guide breaks down how an FHA Streamline Refinance works in Kentucky, what “mortgage insurance” (MI) changes mean for your payment, how streamline differs from a regular refinance, and what the closing costs typically look like. Then you’ll see a side-by-side payment example so you can quickly estimate how much you might save.

Call or text 502-905-3708 for a free FHA refinance review (Kentucky only).

Quick links

What is an FHA Streamline Refinance?

An FHA Streamline Refinance is a refinance option for homeowners who already have an FHA-insured mortgage. It’s called “streamline” because the process can be simpler than a standard refinance.

In many cases, a streamline can be used to:

  • Lower your interest rate and reduce your monthly principal-and-interest payment
  • Move from an adjustable-rate to a fixed-rate mortgage (or vice versa)
  • Shorten your term (for example, 30 years to 15 years) or adjust the term to fit your budget
  • Potentially improve long-term cost if your current FHA mortgage insurance is high

Important: FHA streamline refinances generally require a “net tangible benefit,” meaning the refinance must clearly improve your situation (most commonly a lower payment or more stable terms).

External authority link (FHA basics): HUD.gov

Streamline vs regular refinance in Kentucky

People often ask, “Is streamline the same as a normal refinance?” It’s not. Here’s the practical difference for Kentucky homeowners.

Category FHA Streamline Refinance Regular Refinance (full documentation)
Who it’s for Only borrowers with an existing FHA mortgage FHA, Conventional, VA, USDA refis (depending on eligibility)
Appraisal Often not required (depends on lender/transaction type) Typically required
Income/asset documentation Often reduced compared to a full refinance (lender overlays may apply) Full documentation is standard
Credit qualification Can be simplified (lender overlays may require a minimum score) Full credit underwriting is standard
Cash out Not a cash-out program Cash-out may be available (program rules apply)
Main goal Lower payment and/or improve terms with fewer steps Rate/term improvement, payoff liens, or cash-out depending on goals

If you want to pull equity out, you’re usually looking at a different product (such as an FHA cash-out refinance or another cash-out option). A streamline is built for payment improvement, not cash-out.

Internal link suggestions (add your own URLs):

Closing costs for a streamline: what you’ll actually pay

Even when a streamline is “simpler,” there are still real costs. Here are the common categories you’ll see on a Loan Estimate:

  • Lender fees (origination/underwriting/processing, if charged)
  • Title work and settlement fees
  • Recording and state/local charges
  • Prepaid interest, escrow setup (taxes/insurance), if applicable
  • Mortgage insurance items (depending on FHA rules for your specific case)

Many homeowners search for “no-cost FHA streamline.” What that usually means is the lender credit covers some or all closing costs. It does not mean the refinance is free. A lender credit typically comes with a slightly higher rate. The right choice depends on your break-even timeline and how long you plan to keep the home.

CTA: Call or text 502-905-3708 and I’ll run both options side-by-side: (1) lowest rate, (2) lowest out-of-pocket.

Payment example chart: interest rate vs mortgage insurance

Most borrowers focus only on interest rate. With FHA loans, mortgage insurance can also be a meaningful part of the monthly payment. Below is a simple example to help you compare.

Example assumptions (for illustration only):

  • Base loan amount: $200,000
  • 30-year term
  • Principal and interest only (taxes and insurance not included)
  • Mortgage insurance shown as an estimated monthly MI amount
Scenario Interest rate Estimated monthly P&I Estimated monthly FHA MI Estimated total (P&I + MI) Estimated monthly savings
Current FHA loan (example) 7.00% $1,330 $170 $1,500 —
Streamline refinance (example) 5.75% $1,168 $135 $1,303 $197

How to read this:

  • The rate reduction lowers principal and interest.
  • Mortgage insurance may also change based on FHA rules for your specific FHA case number/endorsement date and the new loan structure.
  • Your real payment change depends on your current balance, remaining term, current MI factor, escrow, and pricing on the day you lock.

If you want, I can run your exact numbers and provide a clear “before vs after” worksheet.

How to apply for an FHA Streamline Refinance in Kentucky

Here’s the clean step-by-step path I use with Kentucky FHA homeowners:

  1. Quick review call (10 minutes): current FHA loan, payment, goals, occupancy, and timeframe.
  2. Case-specific eligibility check: confirm streamline eligibility and net tangible benefit.
  3. Pricing options: compare “lowest rate” vs “lender credit/no out-of-pocket” options.
  4. Disclosures and documentation: provide whatever your lender’s overlay requires (often reduced vs full refi).
  5. Title work and closing: finalize closing costs, escrows, and signing.

Primary CTA:

Call or text 502-905-3708 for a free Kentucky FHA Streamline Refinance review.
You’ll get a clear estimate of payment savings, costs, and break-even timeline.

External links for topical authority (add as needed):

FAQs: Kentucky FHA refinance questions

Will an FHA streamline refinance require an appraisal in Kentucky?

Often, no. Many streamline refinances are completed without a new appraisal, but lender overlays and transaction specifics can change the requirements.

Can I do an FHA Streamline if my home value is down?

Possibly. Since many streamlines do not require a new appraisal, value changes may not prevent approval. The final answer depends on the lender’s overlay and the exact streamline type.

Can I roll closing costs into the loan?

In many refinance structures, some costs may be financed or offset with lender credit. The right approach depends on your break-even timeline and monthly savings.

Is a streamline always the best refinance choice?

No. If you need cash-out, want to remove mortgage insurance via a different program, or need to restructure debt, a full refinance may be a better fit. The correct recommendation comes from a side-by-side comparison.

Free Kentucky FHA refinance review

Joel Lobb
Mortgage Broker
NMLS #57916
Licensed in Kentucky only
Company NMLS #1738461
Call or text: 502-905-3708
www.nmlsconsumeraccess.org

Not a commitment to lend. All loans subject to credit approval and underwriting. Program guidelines and lender overlays can change without notice. Not affiliated with any government agency, including FHA.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, 2025 include Conventional Loans, FHA, VA, USDA, and Kentucky Housing Corporation (KHC) Down Payment Assistance programs, 203k, 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, 7500 down payment assistance KHC, 90 day flip rule, annual mortgage insurance premiums fha, appraisals, Appraisers FHA, assets, bad credit fha loans Kentucky, bank statements, bankruptcy fha, usda, va, conventional loan, Cashout Refinance, Chapter 13 Bankruptcy Guidelines, chapter 7 bankruptcy, Collections Accounts, conventional loans vs FHA loans, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, debt to income ratios, employment, Employment Gaps, FHA Back to Work Program Ky, FHA Co-signors, FHA Guidelines, FHA LOAN FLOOD INSURANCE KENTUCKY, fha mortgage insurance premiums, FHA Refund Upfront MIP, FHA Streamline Refinance, fico score, fico score mortgage loan, fico score used for mortgages, fico scores FHA loan, first time buyer kentucky, First Time Home Buyer, Home Mortgage Rates Ky, Homeownership Assistance Programs: Kentucky, HUD Foreclosure, HUD HOMES $100 Down, HUD HOMES FOR SALE KENTUCKYK, HUD REO PROPERTIES ELIGIBLE FOR THE $100 DOWN PAYMENT, job changes fha, job gaps FHA Kentucky Loan, job history FHA loan, Kentucky FHA Loan Requirements for 2022, Kentucky FHA Mortgage Forbearances Guidelines, Kentucky Mortgage Interest Rates, kentucky mortgage requirements, Kentucky Real Estate and Kentucky Appraisal Links, khc down payment assistance, KY FHA LOANS, Loan Limits for FHA, louisville ky fha seller contributions, Louisville Ky Home Loans, manual underwriting guidelines FHA, mortgage charge-offs, mortgage fico score, Mortgage Guide for First-Time Home Buyers in Kentucky, Mortgage Insurance UFMIP, mortgage rates, Pre-Approval Mortgage Loan Kentucky, Refinance, Refinance Streamline, well water FHA mortgage, work history requirements FHA

Complete Guide to FHA Loan Requirements in Kentucky

FHA loans are a popular choice for many first-time homebuyers in Kentucky. This is due to their flexible qualifying criteria. If you’re considering an FHA loan in the Bluegrass State, understanding the key qualifying factors is crucial. Here’s a comprehensive guide to the criteria you need to know:

  1. Credit Score Requirements:
    • FHA loans are known for accommodating borrowers with lower credit scores. The minimum required credit score can vary. Typically, a credit score of 580 or higher is needed to qualify for the minimum down payment of 3.5%. Borrowers with credit scores between 500 and 579 might still qualify. They will need a higher down payment, usually around 10%.
  2. Down Payment:
    • The minimum down payment for an FHA loan in Kentucky is 3.5% of the home’s purchase price. This is advantageous for buyers who may not have substantial savings for a larger down payment, making homeownership more accessible.
  3. Work History:
    • Lenders typically look for a steady 2 year employment history when considering FHA loan applications. A consistent work history is beneficial. It is preferable to have worked with the same employer or within the same field. This helps demonstrate financial stability and the ability to repay the loan.
  4. Debt-to-Income Ratio (DTI):
    • The debt-to-income ratio is a crucial factor in mortgage approval. For FHA loans, the maximum allowable DTI ratio is typically around 40% to 45% of your gross monthly income. It can go higher up to 56% with good credit scores, a large down payment, or a shorter-term loan. Lenders may also consider higher ratios in certain cases if compensating factors are present.
  5. Bankruptcy and Foreclosure:
    • FHA loans have lenient guidelines regarding bankruptcy and foreclosure. Generally, borrowers with a past bankruptcy may qualify for an FHA loan after two years. This is possible if they have re-established good credit and demonstrated responsible financial behavior. For foreclosures, the waiting period is usually three years.
  6. Mortgage Term:
    • FHA loans offer various mortgage term options, including 15-year, 20 year, 25 year and 30-year fixed-rate loans. The choice of term depends on your financial goals and ability to manage monthly payments.
    • Occupancy: Primary residences with 1-4 units. Not for investment properties or second homes.
    • Mortgage Insurance on the loan for life of loan. Larger down payments and shorter terms will reduce the upfront mi and monthly mi premiums
    • can be used for refinances, not only for purchases.
    • No income limits nor property restrictions on where home is located
    • Can close within 30 days typically with good appraisal and title work

FHA Loan Requirements in Kentucky for Credit scores, Down payment, Debt Ratio and work history below

RequirementDetails
Credit Score– 580+: Eligible for a 3.5% down payment.
– 500-579: Requires a 10% down payment.
Down PaymentMinimum of 3.5% for qualified buyers; 10% for lower credit scores below 580 to 500 score range
Debt-to-Income Ratio (DTI)– Ideal: 45% or lower on front end ratio or housing ratio.
– Acceptable: Up to 57% with compensating factors. There are two ratios. Front end and back end with front end being maxed at 45% and the backed end ratio being 56.99% with an AUS approval. If manually underwritten, see guidelines here
Employment HistoryMust provide at least **2 years of consistent employment—College transcripts can supplement with a less than 2 year work history

Key Benefits of FHA Loans in Kentucky

  1. Low Credit Score Requirements
    • FHA loans accept borrowers with credit scores as low as 500. However, a score of 580+ qualifies you for the lowest down payment option.
  2. Low Down Payment Options
    • You can purchase a home with as little as 3.5% down if you meet credit requirements, making FHA loans more accessible than conventional loans.
  3. Competitive Interest Rates
    • FHA loans typically offer rates comparable to conventional mortgages. They may even offer lower rates. This could save you money over the life of the loan.
  4. Flexible Loan Uses
    • With an FHA 203(k) loan, you can bundle home purchase and renovation costs into a single mortgage.
  5. Assumable Loans
    • FHA loans can be transferred to a new buyer. This feature is especially valuable if you sell your home when interest rates are higher.

Understanding these qualifying criteria can help you navigate the FHA loan application process in Kentucky more effectively. Working with an experienced mortgage professional can provide valuable guidance. They offer assistance tailored to your specific financial situation and homeownership goals.

Joel Lobb  Mortgage Loan Officer

Any questions, please don’t hesitate to reach out via, text, email,  or call.  Advice is always free. 
 
One of Kentucky’s highest rated mortgage loan officers for FHA, VA, USDA, Kentucky Housing KHC and conventional mortgage loans.  
1 – 📅 Email – kentuckyloan@gmail.com 
2.  📞 Call/Text – 502-905-3708
 

Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans

🌐 Website: www.mylouisvillekentuckymortgage.com
🏢 Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky Local Home Loan Lender Services

✅ First-Time Home Buyers Welcome
✅ FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans
✅ Conventional Loan Options Available
✅ Fast Local Decision-Making
✅ Experienced Guidance Through the Home Buying Process

 

NMLS 57916  | Company NMLS #173846
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.
(www.nmlsconsumeraccess.org).
Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans
 
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans annual mortgage insurance premiums fha, Cancel Mortgage Insurance, FHA LOAN FLOOD INSURANCE KENTUCKY, fha mortgage insurance premiums, flood insurance mortgage kentucky, Mortgage Insurance UFMIP

Mortgage Insurance Requirements for Kentucky Mortgage Loans

Unlocking Homeownership: The Comprehensive Guide to Mortgage Insurance
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans annual mortgage insurance premiums fha, Cancel Mortgage Insurance, fha mortgage insurance premiums, FHA Refund Upfront MIP, Kentucky FHA loan limits for 2022, mip, Mortgage Insurance UFMIP

Federal Housing Administration (FHA) has announced, effective for case numbers endorsed on and after 03/20/2023, a 30 basis point reduction in the annual premium charged to mortgage borrowers. 

FHA – Annual MIP Reduction

The Federal Housing Administration (FHA) has announced, effective for case numbers endorsed on and after 03/20/2023, a 30 basis point reduction in the annual premium charged to mortgage borrowers. 

The cut, widely anticipated by the industry, will result in mortgage insurance premiums (MIP) of 55 bps for most borrowers, down from 85. The reduction also amends the Base Loan amount threshold used to establish MIP rates to the national conforming loan limit of $726,200, which increased from $625,500. Please refer to the following for the 03/20/2023 Annual Mortgage Insurance Premium MIP reduction:

  • FHA Loans with Terms > 15 Years
    • Base loan Amount and LTV:
      • Less than or equal to $726,200
        • ≤ 90.00% (50 bps) 11 years
        • > 90.00% but ≤ 95.00% (50 bps) Mortgage term
        • > 95.00% (55 bps) Mortgage term
      • Greater than $726,200
        • ≤ 90.00% (70 bps) 11 years
        • > 90.00% but ≤ 95.00% (70 bps) Mortgage term
        • > 95.00% (75 bps) Mortgage term
  • FHA Loans with Terms < 15 Years
    • Base loan Amount and LTV:
      • Less than or equal to $726,200
        • ≤ 90.00% (15 bps) 11 years
        • > 90.00% (40 bps) Mortgage term
      • Greater than $726,200
        • ≤ 78.00% (15 bps) 11 years
        • > 78.00% but ≤ 90.00% (40 bps) 11 years
        • > 90.00% (65 bps) Mortgage term

Please Note:

  • There is no change to the Upfront Mortgage Insurance Premium (UFMIP). This remains at 175 Basis Points (bps) (1.75%) of the Base Loan Amount
  • The MIP reduction applies to all Title II mortgages except Streamline Refinance and Simple Refinance Mortgages used to refinance a previously FHA endorsed Mortgage on or before May 31, 2009.
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans annual mortgage insurance premiums fha, Cancel Mortgage Insurance, FHA Announces COVID-19 Temporary Guidance for Kentucky FHA Mortgage Loans, fha mortgage insurance premiums, Mortgage Insurance UFMIP

Lower Mortgage Insurance Premiums on Kentucky FHA loans in 2023

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 Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, Cancel Mortgage Insurance, Down payment assistance, down payment grant, fha mortgage insurance premiums, FHA Refund Upfront MIP, Grants And Down payment Assistance, HUD HOMES $100 Down, HUD REO PROPERTIES ELIGIBLE FOR THE $100 DOWN PAYMENT, Kentucky FHA HUD Homes for $100 Down, khc down payment assistance, mi changes for FHA, mip, Mortgage Insurance UFMIP

Kentucky FHA Mortgage Insurance Requirements and Down Payments

FHA mortgage insurance, typically referred to as MIP, is the one closing cost that is unique to FHA mortgage programs. 

**Every FHA mortgage must have mortgage insurance regardless

of the amount of the down payment.**


There are two types of mortgage insurance for FHA insured loans – Up-front Mortgage Insurance Premiums and Monthly Mortgage Insurance Premiums.

Up-front Mortgage Insurance Premium (UFMIP)


UFMIP is calculated at 1.75% of the base loan amount on all loans, regardless of the down payment amount.  This insurance protects the lender against losses in the event that the borrower defaults on the loan. 

**The entire amount of the UFMIP can be financed into the loan amount!**


For example:

  • If the FHA loan amount is $100,000 (base loan amount)
  • The mortgage insurance premium would be $1,750 ($100,000 x 1.75%)
  • The mortgage amount including MIP would be $101,750 ($100,000 + $1,750)

What really happens during an FHA mortgage transaction is that the borrower owes FHA a lump sum mortgage insurance premium.  The lender making the FHA loan will actually lend the money for the premium to the borrower and send the money to FHA so that the mortgage will be insured. 

Monthly Mortgage Insurance Premium


In addition to the UFMIP, there may be a monthly premium due as well.  The monthly premium is .80% of the base loan amount if the loan amount is less than or equal to 95% of the value of the home.  If the loan amount is over 95% of the value of the home, the monthly premium is .85% of the base loan amount..


On a 30 year fixed loan, the monthly payment would be calculated as follows:


$100,000 x .80% = $800 / 12 months = $66.67 per month

FHA Minimum Down Payment

Effective January 1, 2009, the minimum down payment required on an FHA loan is 3.5% of the purchase price. 


Any deposit (usually called earnest money) that you are required to give to your realtor at the time of an accepted purchase contract will count towards your 3.5% down payment. The appraisal fee collected at the time of inspection will also count towards your 3.5% down payment. 

 
If, for example, you are purchasing a $100,000 house, your minimum down payment required would be $3,500.  If your seller/realtor required you to put down $500 in earnest money on top of the $300 for your appraisal, your down payment would be lowered to $2,700 ($3,500 – $500 – $300 = $2,700). 


Down Payment As A Gift


If a borrower does not have 3.5% of his or her own money to put down towards the home purchase, FHA allows that amount to be in the form of a gift to the borrower. The gift must be from a qualified source, such as a family member, employer or significant other. The source of the gift must be able to provide proof that they have the money in an account registered in their name prior to transfer to the borrower.


In some areas, this gift may also be grant money from a state or local municipality, if such funds are available.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, Cancel Mortgage Insurance, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, Down payment assistance, down payment grant, fha mortgage insurance premiums, FHA Refund Upfront MIP, fico score, fico scores FHA loan, Grants And Down payment Assistance, HUD REO PROPERTIES ELIGIBLE FOR THE $100 DOWN PAYMENT, khc down payment assistance, KY FHA LOANS, mip, Mortgage Insurance UFMIP

Kentucky FHA Down Payment Requirements, Credit Scores and Mortgage Insurance

How Credit Scores Impact Kentucky  FHA Loan Down Payment Requirements


Kentucky Home Buyers credit scores are one of  the largest factors in determining the amount of a down payment for an FHA loan.   A credit score of 580 or higher, 3.5 percent is the minimum required for a down payment. Anyone with a credit score of 500 to 579 will have to save 10 percent for a down payment to obtain an FHA loan.

What Are Mortgage Insurance Requirements on Kentucky FHA Loans?

FHA loans are required to pay mortgage insurance premiums, often known as upfront mortgage insurance premiums and monthly annual premiums.

 
  • Upfront mortgage insurance premium: 1.75 percent of the loan amount and is paid when the borrower gets the loan. The premium can be rolled into the mortgage.
  • Annual mortgage insurance premium: 0.45 percent to 1.05 percent, depending on the term of the loan (15 years vs. 30 years), the loan amount and the initial loan-to-value ratio, or LTV. This premium amount is divided by 12 and paid monthly.

For a homeowner who borrows $150,000, this means the upfront mortgage insurance premium would be $2,625 and your annual premium would range from $675 ($56.25 per month) to $1,575 ($131.25 per month), depending on the length of the mortgage.

Unlike traditional mortgage insurance premiums, homeowners are required to pay FHA premiums for the entire term of the mortgage. The only time you can stop paying them is to refinance into a non-FHA loan or to sell the house.

Down Payment Gifts and Rules for Kentucky FHA Loans Kentucky borrowers choose an FHA loan can receive money as a gift to help towards the total amount of the down payment.

There are several rules that homeowners need to keep in mind. Gifts can come from friends, family members, labor unions and employers, according to data from the Department of Housing and Urban Development (HUD).

Even non-profit organizations can provide money for a contribution toward a down payment.

In addition, each state offers various assistance programs for down payments for both FHA buyers in Kentucky lacking the down payment.

People obtaining an Kentucky FHA loan are also eligible for these programs. I.e. Kentucky Housing Dap Funds, Welcome Grants In Kentucky

 

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 FHA Guidelines, fha mortgage insurance premiums, first time buyer kentucky, Home Mortgage Rates Ky, Homeownership Assistance Programs: Kentucky, Kentucky FHA Important Links, Kentucky Housing, Kentucky Mortgage Interest Rates, KY FHA LOANS, mi changes for FHA, mip, Mortgage Insurance UFMIP

Kentucky FHA Loans Beginning January 27, 2017 will have lower mortgage insurance fees

 

For the first time in two years, the Federal Housing Administration (FHA) has announced that it will be lowering its annual mortgage insurance premiums for Kentucky FHA Homebuyers and homeowners looking to refinance a FHA mortgage loan

Kentucky Homeowners with an existing FHA loan that haven’t refinanced in the past two years may be able to reduce their payment and get a lower monthly payment.

U.S. Housing and Urban Development Secretary Julián Castro said on Monday the FHA will reduce the annual premiums most borrowers will pay by a quarter of a percent, or 25 basis points, for most new mortgages with a closing or disbursement date on or after January 27th of 2017. The new rates are projected to save new FHA-insured homeowners an average of $500 this year, Castro said.

When the FHA announced late last year that its flagship fund, the Mutual Mortgage Insurance Fund, grew for the fourth straight year, it led to many question whether we would see a cut to its mortgage insurance premiums again. Now we have an answer. Click the headline for the full details on the FHA reducing mortgage insurance premiums.

Source: FHA cuts mortgage insurance premiums again

 

2017 Kentucky FHA Annual Mortgage Insurance Premiums

15977250_1546380608723011_7410698046242648980_n

2017 FHA premiums

According to the FHA, it will cut the annual mortgage insurance premiums most borrowers will pay by one-quarter of a percentage point, or 25 basis points

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.
Labels: , , , , , , , , , ,

Kentucky FHA loan mortgage insurance changes for 2017. Lower mortgage monthly insurance premium-savings of 25% for Louisville, Kentucky FHA homebuyers and homeowners
fha reduced mip program

 

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans FHA, FHA Back to Work Program Ky, FHA Co-signors, FHA Guidelines, fha mortgage insurance premiums, FHA Streamline Refinance, first time buyer, First Time Home Buyer, Kentucky FHA Important Links, KY FHA LOANS, mi changes for FHA, mip, Mortgage Insurance UFMIP

FHA mortgage insurance premiums won’t be going down in 2015 | 2014-11-18 | HousingWire

FHA mortgage insurance premiums won’t be going down in 2015 | 2014-11-18 | HousingWire.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans FHA, fha mortgage insurance premiums, mi changes for FHA, mip, Mortgage Insurance UFMIP

FHA’s Galante Offers Alternatives to Rolling Back MI Premiums

The Department of Housing and Urban Development is pushing back against industry groups calling for the Federal Housing Administration to reduce or rebalance its mortgage insurance premiums. Three industry groups have urged FHA to rebalance its 1.35% annual MI premium and its 1.75% upfront MI premium to make FHA loans more affordable. But such a change would reduce FHA revenue. The commissioner stressed that it’s important to strengthen the FHA single-family mortgage insurance fund and find other ways to increase access to credit. “We must do both,” she told attendees at the Mortgage Bankers Association’s Washington Policy Conference. HUD is moving ahead with a housing counseling program called HAWK (Homeowners Armed with Knowledge) that will reward FHA borrowers that receive counseling.

via FHA’s Galante Offers Alternatives to Rolling Back MI Premiums.