Louisville Kentucky FHA Mortgage Loans for Purchases and Refinance
click here to Call/Text: 502-905-3708 with questions
Interest Rate Decrease for SFH Direct Programs October 17, 2019 Programs Current Interest Rate Interest Rate Effective 11/1/19 Section 502 Direct – Program Loans 3.125% 3.000% Section 502 Direct – Non-Program Loans 3.625% 3.500% Section 524 Housing Site Development Loans – Non-Self-Help 3.125% 3.000% For Program Information Single Family Housing Direct Loans Single Family […]
Locking in a Kentucky Mortgage Rate?
via What is a Kentucky Mortgage Rate Lock?
View original post 1 more word
Buying a home can be a nerve-wracking experience, especially if it’s your first time. It may feel even more so if you’re still saddled with student loan debts.
Source: How to Buy a Home with a Student Loan Debt
Buying a home can be a nerve-wracking experience, especially if it’s your first time. It may feel even more so if you’re still saddled with student loan debts.
Does your income-driven repayment plan has Do you have Federal student loans in it? Do you know how your lender will handle your debt to income ratio?
These are just some of the factors that you need to put into consideration when planning to buy a house. It might just be not that easy since you also have to factor in your student loan debts.
To make the process less intimidating for you, here are the things you need to do.
Pay Attention to Your Credit Score
FICO credit scores are among one of the most commonly used scoring systems by lenders and creditors whose range plays in between 350 to 800. A consumer with a credit score below 620 is considered to have poor credit, while those with credit scores of 750 or higher is considered to have excellent credit.
Now, if you want to qualify for a home improvement financing or a mortgage and nail a low mortgage rate, make sure your credit score is in good shape. Whenever you apply for a mortgage, every credit bureau gathers information about your credit history and calculate your credit score that lenders will use to gauge your risk factor.
If you find an error or any inconsistencies in your credit report, report it immediately to the credit bureau and have it fixed.
Your DTI (debt-to-income ratio) is one of the major factors that lenders consider when you apply for a mortgage loan. It’s the ratio of the total amount of your recurring debt every month with your monthly gross income.
To calculate your DTI, add up all of your recurring monthly debt such as student loan payments, minimum credit card payments, or car loan payments, then divide it by your pre-tax (the amount you earn before taxes and other withholdings) income every month.
Since your debt-to-income contains two main components: debt and income, the efficient way to reduce it is to:
earn more income
repay existing debt
do both
Case in point: Lenders will approve the application of those who are financially responsible.
Know it that your payment history takes up one of the biggest portions of your credit score. Thus, to make sure that you pay on time, set up an autopay system for all your accounts so that funds are automatically debited every month.
Moreover, your FICO is being weighed heavily by current payments, which means your future will matter more than your past. Make sure also to do the following:
Pay off the balance if you have a delinquent payment.
Do not skip payments.
Pay on time.
The common cycle for home buyers is to look for a property, then get a mortgage. You have to switch it.
It’s better if you get yourself pre-approved with a lender, so you will know how much you can afford for a home. To get pre-approved, lenders will look at your income, credit profile, employment, assets, to name a few.
Besides your credit score and DTI, your lenders also assess your credit card utilization score, or your credit card expenses as a percentage of your credit limit every month. The ideal credit utilization must be 30% or less. Even better, keep it less than 10% if possible.
For instance, if you have a $20,000 credit card limit and spent $6,000, your credit utilization is equivalent to 30%.
If you want to regulate your credit card utilization better, here are the things you can do:
Talk with your lender about increasing your credit limit. It may require a hard credit pull so better consult your lender first.
Pay off your balance at least twice a month to lessen your credit utilization.
To track credit utilization, set up alerts for automatic balance.
Even if you have outstanding student loan debts, you can still seek for different down payment assistance. You can start with the following:
USDA loans. These loans have zero-down mortgages for suburban and rural homeowners.
FHA loans. Acquire federal loan through the Federal Housing Authority.
VA loans. You can avail these loans if you’ve served in the military service.
There are local, state, and federal assistance programs as well that you can resort to.
If paying off your credit card balance is impossible before getting a mortgage, you can consolidate your credit card debt into one personal loan for a lower interest rate.
Taking a personal loan can help you save big on you on interest expenses over the repayment term, which usually lasts for three up to7 years, depending on the lender. It can also enhance your credit score since it’s an installment loan with a fixed repayment term.
On the flip side, credit cards have no fixed repayment terms because they are revolving loans. When such is the case, you can minimize your credit utilization and diversify your debt types whenever you trade your credit card debt for a personal loan.
Takeaway
Buying a home while grappling with student loan debts can be taxing. Your likelihood to get a mortgage for a property will depend on your loans. It can result in disappointment if your loans are in bad shape.
Now, if you don’t evaluate your student loan picture and ensure that you’re taking all the necessary steps to be successful, getting that mortgage will be impossible. It might not work all the time, but arming yourself with the right knowledge to get there is the beginning of your homeownership journey.
© 2017 University Herald, All rights reserved. Do not reproduce without permission.
Kentucky Manufactured Home Loans for Doublewide Mobile Homes for FHA, VA, USDA, KHC and Fannie Mae
via Kentucky Manufactured Home Loans for Doublewide Mobile Homes for FHA, VA, USDA, KHC and Fannie Mae
| Kentucky Manufactured Home Loans for Double wide Mobile Homes Now Available
|
View original post 116 more words
FHA Condo Approval Kentucky
The Federal Housing Administration has finally issued a long-awaited update to its condominium rules, announcing Wednesday that it will now allow individual unit approval and is taking other steps to loosen requirements that make these properties eligible for FHA financing. The agency said it expects the updated guidelines to qualify up to 60,000 more condo units a year for financing.
Under the revised guidelines – which take effect Oct. 15, 2019 – an individual condo unit in a building of 10 units or more may be eligible for spot approval if no more than 10% of the units are FHA-insured. For units in buildings with fewer than 10 units, no more than two units can have FHA insurance.
The FHA is also extending the recertification deadline for approved condo projects from two to three years, and it will insure more mixed-use projects, or those with more commercial space, to be eligible, stating that approved projects can now have up to 35% of their square footage dedicated to non-residential use.
The agency also loosened restrictions on owner-occupancy rules, stating that eligible condo projects can now be just 50% owner-occupied.
It also said it will insure up to 50% of units in any given project.
The FHA said it expects the updated guidelines to qualify an estimated 20,000 to 60,000 more condo units per year for financing.
Currently, of the more than 150,000 condo projects across the country, only 6.5% are approved for FHA financing.
This is something the FHA is aiming to change with the updated guidelines, Department of Housing and Urban Development Secretary Ben Carson said on a call with reporters Wednesday.
Kentucky FHA Mortgage Lender 