FHA now allowing 0.5% on Student Loans instead of 1%
BREAKING NEWS: KENTUCKY FHA & STUDENT LOANS
Here are all the $0 Mortgage options in Kentucky
Here are all the $0 Mortgage options in Kentucky
VA – available to veterans, surviving spouses and active military. • VA Mortgages are always $0 down.• FICO Score – 620 preferable.• Need DD214 (honorable discharge) and Certificate of Eligibility.• Seller can pay up to 4% of closing costs.
USDA: the location of the property determines the $0 Down.• Seller can pay 6% of closing costs. • Income Limitations – Any primary home.
. FHA $0 Down – one of my lenders offers FHA Down Payment Assistance by way of a 2nd Mortgage.• FICO Score 620. • Ideal for First Time Home Buyers. • 2 Mortgages: 1 for 96.5% and 2nd for 3.5%.• Largest loan size based on county: $356,362• Seller can pay closing costs up to 6% of price
Here are all the $0 Mortgage options in Kentucky
VA – available to veterans, surviving spouses and active military. • VA Mortgages are always $0 down.• FICO Score – 620 preferable.• Need DD214 (honorable discharge) and Certificate of Eligibility.• Seller can pay up to 4% of closing costs.
USDA: the location of the property determines the $0 Down.• Seller can pay 6% of closing costs. • Income Limitations – Any primary home.
. FHA $0 Down – one of my lenders offers FHA Down Payment Assistance by way of a 2nd Mortgage.• FICO Score 620. • Ideal for First Time Home Buyers. • 2 Mortgages: 1 for 96.5% and 2nd for 3.5%.• Largest loan size based on county: $356,362• Seller can pay closing costs up to 6% of price
Kentucky Home Loan Program Requirements for FHA, VA, USDA and Conventional Mortgage loans.
FHA
Minimum credit score
580 AUS Approved
580 Manual
theNada program – easiest DPA ever – 100% cltv, done in-house
Non-Credit Qualifying Streamline refinances allowed
Gift funds allowed for down payment and closing costs
Cash out 80% LTV
DACA Allowed – EAD must reflect Category C33
theNADA
Easiest FHA DPA loan ever
580 FICO Minimum for DU Refer Eligible
No DTI Restrictions – up to 46.99%/56.99% with Approve Eligible
No Income Limitations
Available in all Areas
Maximum Loan Amount per County Limits, Now Including High Costs Counties
2nd Payment must be included in housing DTI
Follow FHA guidelines and DU findings
Homeowner Education (at least one borrower) Required
Seller Contributions: FHA Allowable of up to 6%
Non Occupying Co-Borrowers Allowed
Lender & Borrower Paid Compensation Options Available
FHA
- Minimum credit score
- 580 AUS Approved
- 580 Manual
- Non-Credit Qualifying Streamline refinances allowed
- Gift funds allowed for down payment and closing costs
- Cash out 80% LTV
VA
- Minimum credit score
- 600AUS approved
- 620 manual
- Cash-out up to 90% LTV
- Foreclosure/Short Sale/Bankruptcy <2 years allowed with AUS Approval
USDA
- Minimum credit score:620
- 100% maximum LTV
- Manual Underwrites
- No maximum loan amount
- USDA Streamlined, Streamlined-Assist, and Rate/Term refinances allowed
CONVENTIONAL
- Minimum credit score:620
- Fannie Mae
- Freddie Mac
- Standard and High Balance
- HomeReady
- HomePossible
FHA Student Loan Payment Calculation For 2021
The U.S. Department of Housing and Urban Development (HUD) has updated the payment calculation of monthly obligation for student loans. The change is effective for all case numbers assigned on or after August 16, 2021
Lenders must include all student loans in the Borrower’s liabilities, regardless of the payment type or status of payments.
Required Documentation: If the payment used for the monthly obligation is less than the monthly payment reported on the Borrower’s credit report, the Lender must obtain written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor or student loan servicer. The Lender may exclude the payment from the Borrower’s monthly debt calculation where written documentation from the student loan program, creditor, or student loan servicer indicates that the loan balance has been forgiven, canceled, discharged, or otherwise paid in full.
Calculation of Monthly Obligation: For outstanding Student Loans, regardless of payment status, the Lender must use:
- the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or
- 5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower’s credit report is zero
FHA announces major changes in in Mortgagee Letter 2021-13. We can now calculate your student loan payments based on 0.5% of the balance or take a Income Based Repayment Plan! FHA Updates the rules on Student Loan monthly payments deferred or Income Based Repayment plan… (4) Calculation of Monthly Obligation For outstanding Student Loans, regardless of payment status, the Mortgagee must use: • the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or • 0.5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower’s credit report is zero.
FHA now allowing 0.5% on Student Loans instead of 1%
FHA now allowing 0.5% on Student Loans instead of 1%
On Friday, the Federal Housing Administration (FHA) announced updates to its student loan monthly payment calculations to take steps to remove barriers and provide more access to affordable single-family FHA-insured mortgage financing for creditworthy individuals with student loan debt.
The updated policy more closely aligns FHA student loan debt calculation policies with other housing agencies, helping to streamline and simplify originations for borrowers with student loan debt obligations.
This announcement enhances FHA’s ability to serve one of its core demographics—first-time homebuyers.
For all outstanding student loans, regardless of payment status, the payment must be calculated as follows:
If the payment on the credit report is greater than $0, use
the payment reporting on credit, or
the actual documented payment
If the payment on the credit report is $0, use
0.5% of the outstanding loan balance
If documented that the loan has been forgiven, canceled, or discharged in full, the payment can be excluded.
Lenders may implement the changes immediately but must implement the changes for FHA Case Numbers assigned on or after August 16, 2021.
Joel Lobb
Mortgage Loan OfficerIndividual NMLS ID #57916
American Mortgage Solutions, Inc.10602 Timberwood Circle Louisville, KY 40223Company NMLS ID #1364
click here for directions to our office
Text/call: 502-905-3708fax: 502-327-9119
email: kentuckyloan@gmail.com
https://www.mylouisvillekentuckymortgage.com/
USDA Mortgage Benefits for First Time Buyers in Kentucky
00% Financing Zero Down, 2021 Kentucky USDA Income and Property Guidelines, 2021 Kentucky USDA Income Limits Increased, 2021 Kentucky USDA Mortgage Guides Updated, 502 Guaranteed Loan, credit scores, debt ratios, Guaranteed Section 502 Loans, Homes for Sale (Foreclosures owned by USDA/RHS KY, kentucky first time home buyer, rural development, USDA, USDA /Rural Housing Loan Offices in Ky, USDA Loan, USDA REVISIONS TO HB-1-3555
Tags kentucky rural development loan, Kentucky USDA, kentucky usda loan, ky rural development loan, Rural development, Rural Housing Kentucky, USDA Rural Development
Here are the highlights of USDA Mortgages
. Down Payment: 0% down payment
Closing Costs: up to 6%
. Credit Score: Minimum none–but lenders create overlays..typically 640 to get a GUS Automated approval
. Lower monthly mortgage insurance costs (PMI) versus FHA
. There is NO maximum set loan amount limit with USDA Rural Housing.
. No large savings are needed to qualify for USDA loans.
The debt to income, or DTI is limited to 45% – lower than most other loan programs.
The location of the home determines if it will be a USDA loan.
. The home can be a regular sale, short sale, foreclosure home or bank owned home single family, townhome or approved condo.
Mobile/Manufactured homes and “build on your own land” not available.
. Applies for First-time home buyers, or move-up buyers.
No special first-time buyer’s class, down payment assistance, or bond money…
View original post 107 more words
First Time Home Buyer Louisville Kentucky Mortgage Programs
I can answer your questions and usually get you pre-approved the same day.
Call or Text me at 502-905-3708 with your mortgage questions.
Email Kentuckyloan@gmail.comJoel Lobb (NMLS#57916)
Senior Loan OfficerAmerican Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
Text/call 502-905-3708
kentuckyloan@gmail.comThe 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). I lend in the following states: KentuckyShare this:
Regular DAP
- Purchase price up to $346,644 with Secondary Market.
- Assistance in the form of a loan up to $6,000 in $100 increments.
- Repayable over a ten-year term at 5.50 percent.
- Available to all KHC first-mortgage loan recipients.
Affordable DAP
- Purchase price up to $346,644 with Secondary Market.
- Assistance up to $6,000.
- Repayable over a ten-year term at 1.00 percent.
- Borrowers must meet Affordable DAP income limits.
MORE ABOUT DOWN PAYMENT AND CLOSING COSTS
- No liquid asset review and no limit on borrower reserves.
- Specific credit underwriting standards may apply to down payment programs
- .
SECONDARY MARKET FUNDING SOURCE
- First-time and repeat homebuyers statewide
- 30-year fixed interest rate
- Principal residence ONLY
- Purchase Price Limit: $346,644
- Borrower must meet KHC’s Secondary Market Income Limits
- Minimum credit score of 660
- 3 percent down payment
- Monthly mortgage insurance (charter coverage)
- All KHC DAPs applicable
- No minimum borrower contribution
- No…
View original post 414 more words
How to Qualify For A Kentucky Mortgage Loan
How to Qualify For A Kentucky Mortgage Loan
When it comes to get a mortgage loan in Kentucky, lenders will look at your credit, income and work history, and assets (money in the bank, 401k etc)
Debt to Income Ratio For Mortgage Loans.
DTI ratio. Lenders divide your total debt by your pretax income to determine your DTI ratio. It’s an important measure used to determine whether you can repay the loan. Most loans are ran through an Automated System for a pre-approval (GUS, DU, DO LP) and it will state your max house payment in relation to your gross monthly income vs. monthly payments on the credit report. Car insurance, utilities bills, cell phone, internet, net flix etc, is not part of the debt to income requirements.
Most ratios have a front end and back end requirement, with 40% to 45% on the high-end and 55% on the backend ratio.
Lower the credit score, reserves, job history…
View original post 1,538 more words
Kentucky First Time Home Buyer Loan Programs
The Secondary Market of Mortgage loans offered by FHA, VA, USDA, Fannie Mae, and KHC all have their minimum fico score requirements and lenders will create overlays in addition to what the Government agencies will accept, so even if on paper FHA says they will go down to 580 or 500 in some cases on fico scores, very few lenders will go below the 620 threshold. If you have low fico scores it may make sense to check around with different lenders to see what their minimum fico scores are for loans.
The lenders I currently deal with have the following fico cutoffs for credit scores: FHA–620 minimum score VA—-620 minimum score Fannie Mae–620 minimum score USDA–640 minimum score KHC with Down Payment Assistance –620 minimum score. As you can see, 620 is the minimum score with most lenders for a FHA, VA, or Fannie Mae loan, and 620 is required for the no down payment programs offered by USDA for Kentucky for First Time Home Buyers wanting to go no money down.
Mortgage Fico Scores used by Lenders.
The Secondary Market of Mortgage loans offered by FHA, VA, USDA, Fannie Mae, and KHC all have their minimum fico score requirements and lenders will create overlays in addition to what the Government agencies will accept, so even if on paper FHA says they will go down to 580 or 500 in some cases on fico scores, very few lenders will go below the 620 threshold. If you have low fico scores it may make sense to check around with different lenders to see what their minimum fico scores are for loans.
The lenders I currently deal with have the following fico cutoffs for credit scores: FHA–620 minimum score VA—-620 minimum score Fannie Mae–620 minimum score USDA–640 minimum score KHC with Down Payment Assistance –620 minimum score. As you can see, 620 is the minimum score with most lenders for a FHA, VA, or Fannie Mae…
View original post 277 more words
Kentucky USDA Guideline Updates for 2021
Annual Qualifying Income – The requirement for calculations to be included on the Income Calculation worksheet have been removed and should now be included on Attachment 9-B, the underwriter transmittal summary, FNMA form 1008/Freddie form 1077, or equivalent
4506-T – The requirement for asset statements to be reviewed to ensure borrowers have no additional income sources has been removed.
Repayment Income – MCC income must now be included in repayment income.
Boarder Income – USDA now considers a boarder as a household member and a boarder’s income must now be included in annual income calculation. Rent paid by boarders that is reported on tax returns must also be included in annual income.
Capital Gains – USDA removed requirement from Repayment Income to provide evidence showing borrowers own additional property or assets that may be sold if additional income is needed to support the mortgage obligation
Commission – The borrower must now show one year history in same or similar line of work to include commission in repayment income.
Fellowship, Stipend, Scholarship – Scholarship award letters must now provide date of termination and USDA will no longer presume benefits with no expiration date will continue. USDA also added guidelines for GI Bill income and stated it cannot be included in annual or repayment income.
MCC – This income must now be included in repayment income, but no history is required. A copy of the W-4 from employer is required to verify borrower is taking tax credit on monthly basis. Note: MCC’s are ineligible with FWL as qualifying income.
Unreimbursed Business Income – only taxable income is allowed to be included in repayment income
Section 8 – USDA removed requirement for section 8 income to be deducted from the monthly PITI to determine DTI if it is paid directly to the loan servicer when included in the repayment income.
Self Employed Income – Federal tax returns must now be reviewed to determine gross income for annual calculations. Removed requirement to deduct business loss before entering as repayment income into GUS or on loan application. Clarified documentation requirements as most recent 2 years of federal tax returns / transcripts & YTD P&L may be audited or unaudited
Social Security Income – clarified documentation options and will allow social security benefit statement or form SSA-1099/1042S to source
Temporary Leave – The history requirements for repayment income has been changed and now income must be received by loan closing.
Cash on Hand – The underwriter must review the reasonableness of accumulation based upon income stream, spending habits, etc. and cash on hand can no longer be included in reserves
Gift Funds – Clarification provided on how gift funds must be sourced when gift funds have been deposited into borrower’s account, not deposited into borrower’s account, or if funds are being wired directly to the settlement agent.
Large Deposits – USDA no longer addresses lump sum additions.
Refer to USDA Procedure Notice.
- Annual Qualifying Income – The requirement for calculations to be included on the Income Calculation worksheet have been removed and should now be included on Attachment 9-B, the underwriter transmittal summary, FNMA form 1008/Freddie form 1077, or equivalent
- 4506-T – The requirement for asset statements to be reviewed to ensure borrowers have no additional income sources has been removed.
- Repayment Income – MCC income must now be included in repayment income.
- Boarder Income – USDA now considers a boarder as a household member and a boarder’s income must now be included in annual income calculation. Rent paid by boarders that is reported on tax returns must also be included in annual income.
- Capital Gains – USDA removed requirement from Repayment Income to provide evidence showing borrowers own additional property or assets that may be sold if additional income is needed to support the mortgage obligation
- Commission – The borrower must now show one year history in…
View original post 319 more words
Kentucky FHA Loan Requirements For 2021
FHA Kentucky Home Loans
Kentucky FHA Loan Requirements for 2021
Kentucky FHA Mortgage Lender 