First-Time Home Buyer Louisville Kentucky Mortgage Programs
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
- Less than or equal to $726,200
- Base loan Amount and LTV:
- 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
- Less than or equal to $726,200
- Base loan Amount and LTV:
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.
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.
2023 Welcome Home Program for Kentucky Home Buyers
$5000 WELCOME HOME GRANT KENTUCKY, $7500 DOWN PAYMENT ASSISTANCE KHC, 10000 DOWN PAYMENT ASSISTANCE, 2023 WELCOME HOME PROGRAM FOR KENTUCKY HOME BUYERS, WELCOME HOME GRANT $10,000 FOR 2023 KENTUCKY HOMEBUYERS, WELCOMEO HOME PROGRAM $5000 GRANT
Manufactured Home Guidelines for Kentucky FHA, Conventional and USDA, VA Mortgage Loans
Manufactured Home Guidelines for Kentucky FHA, Conventional and USDA, VA Mortgage Loans
Manufactured Home Options for Kentucky Homebuyers
Several manufactured homes for Kentucky conventional, FHA, VA and USDA programs.
Kentucky Conventional Mobile Home Loans
- Up to 95 LTV on purchases
- 97 LTV Rate and Term REFI options for with an existing Fannie Mae loan through MH Advantage
- Purchase and rate and term options available for single wide, double wide and larger
- Cash-out options available for double-wide and larger
- Second home options available for double-wide and larger
- Down to 580 FICO
Kentucky FHA Mobile Home Loans
- Up to 96.5 LTV on purchases and 97.75 LTV on Rate and Term REFIs
- Cash-out REFI options up to 80 LTV
- Purchase, cash-out and Rate and Term REFI options available for single wide, double wide and larger
- Down to 550 FICO
- Manual underwrite options available
- Manufactured homes are now available on FHA 203(k) products!
Kentucky VA Mobile Home Loans
- Up to 100 LTV on purchases and Rate…
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Kentucky FHA Mortgage Lender 