Tag: FHA Loans

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Kentucky FHA Loan Requirements for 2022

Kentucky’s highest rated mortgage loan officers for FHA, VA, USDA, Kentucky Housing KHC and conventional mortgage loans.  

Are you looking for a Kentucky mortgage and wondering what score is used for a home loan approval?


Joel Lobb

Joel has worked with KHC for 14 of his 25 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $10,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”

When you’re ready to purchase a home in Joel’s area, contact him at:
Phone: 502-905-3708
Email: Kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com

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.  

Kentucky Mortgage Application for KHC, FHA, VA, USDA Zero Down Loans

 

Labels: FHA Loan in Kentucky, First Time Home Buyer Louisville Kentucky Mortgage, Kentucky VA Loan Approval, KHC for downpayment assistance, Louisville FHA and VA Mortgage Lenders, USDA loans, VA

APPLY ONLINE BY CLICKING HERE OR CALL OR TEXT 502-905-3708 OR EMAIL KENTUCKYLOAN@GMAIL.COM

Kentucky FHA Loan Lender Requirements for Approval

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Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA

I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process. I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank’s program due to credit, income, or other underwriting issues. You will not get lost in the shuffle like most borrowers do at the mega banks; you’re just not a number at our company, you are a person and we will treat you like one throughout the entire process.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, 2024 Income Limits Kentucky Welcome Home Grant, first time buyer, first time buyer kentucky, First Time Home Buyer

Kentucky first time home buyer loan requirements

Kentucky first time home buyer loan requirements

Buying your first house in Kentucky involves several steps, which can vary depending on the type of loan program you choose. Here’s a detailed guide on the steps and requirements for various Kentucky First Time Home Buyer loan programs:

1. Kentucky FHA Loans

Credit Score:

  • Minimum credit score typically required is 580 for 3.5% down payment.
  • Scores between 500-579 may qualify with a 10% down payment.

Income:

  • Stable and sufficient income to cover the mortgage payments.

Work History:

  • At least 2 years of consistent employment history.

Down Payment:

  • 3.5% of the purchase price if the credit score is 580 or higher.

FICO Score:

  • Minimum FICO score of 580 for maximum financing.

Bankruptcy and Foreclosure:

  • Chapter 7 bankruptcy: 2 years from discharge with reestablished good credit.
  • Chapter 13 bankruptcy: 1 year of the payout period with satisfactory payment history.
  • Foreclosure: 3 years from completion date.

Debt Ratio:

  • Typically, a maximum debt-to-income (DTI) ratio of 56.9% on backend and 45% on the front end debt ratio. 

Collections:

  • Must be addressed if they affect the borrower’s ability to repay the loan. Collections not required to be paid but must count in debt to income ratio sometimes if aggregate total on credit report is over $1000 total…Non-medical bills only, medical bills don’t count and usually not required to be paid or figure a payment unless you have a judgement of garnishment against your paystubs.

Mortgage Insurance:

  • Required for all FHA loans. Includes an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance premiums (MIP).

Time to Close:

  • Approximately 30-45 days.

Appraisal Requirements:

  • Property must meet minimum property standards set by HUD.

Mortgage Documents Needed for Pre-Approval Letter in Kentucky to Buy a House using a Kentucky FHA loan:

  • Proof of income (pay stubs, last two years W-2s, tax returns).
  • Proof of employment. Last two years 
  • Proof of assets (last two bank statements). 401k or retirement account and stocks and bonds.
  • Kentucky Mortgage Credit report for all three credit bureaus Experian, Equifax and Transunion

2. Kentucky USDA Rural Housing Loans

Credit Score:

  • Minimum credit score of 640 is preferred for automated underwriting. No minimum score required.
  • Scores below 640 may qualify with manual underwriting down to a 580 credit score

Income:

  • Must meet USDA income eligibility guidelines (typically low to moderate income). 2 year history of income. 

Work History:

  • Stable employment history, usually for the past 2 years.

Down Payment:

  • No down payment required (100% financing).

FICO Score:

  • Minimum FICO score of 640 for automated underwriting. can go down to 580 possible

Bankruptcy and Foreclosure:

  • Chapter 7 bankruptcy: 3 years from discharge.
  • Chapter 13 bankruptcy: 1 year of the payout period with satisfactory payment history.
  • Foreclosure: 3 years from completion date.

Debt Ratio:

  • Typically, 33% for housing expenses and 45% for total DTI.

Collections:

  • Must be resolved if they impact the ability to repay the loan. Collections typically don’t have to be paid but may have to count a payment in your debt to income ratio if aggregate is over 1k and non-medical 

Mortgage Insurance:

  • Annual fee and upfront guarantee fee.  Currently 1% upfront and .35% month

Time to Close:

  • Approximately 30-45 days, including USDA processing time.

Appraisal Requirements:

  • Must meet HUD FHA standards.

Mortgage Documents Needed for Pre-Approval:

  • Proof of income (pay stubs, last two years W-2s, tax returns).
  • Proof of employment. Last two years 
  • Proof of assets (last two bank statements). 401k or retirement account and stocks and bonds.
  • Kentucky Mortgage Credit report for all three credit bureaus Experian, Equifax and Transunion

3. Kentucky VA Home Loan

Credit Score:

  • No minimum credit score requirement by the VA, but lenders typically require a score of 620.

Income:

  • Sufficient income to cover mortgage payments and other obligations.

Work History:

  • Stable employment, usually for the past 2 years.

Down Payment:

  • No down payment required (100% financing).

FICO Score:

  • Typically, a minimum FICO score of 620.

Bankruptcy and Foreclosure:

  • Chapter 7 bankruptcy: 2 years from discharge.
  • Chapter 13 bankruptcy: 1 year of the payout period with satisfactory payment history.
  • Foreclosure: 2 years from completion date.

Debt Ratio:

  • Typically, a maximum DTI ratio of 41%.

Collections:

  • Must be resolved if they impact the ability to repay the loan.

Mortgage Insurance:

  • No mortgage insurance, but a VA funding fee is required.

Time to Close:

  • Approximately 30-45 days.

Appraisal Requirements:

  • Property must meet VA Minimum Property Requirements (MPRs).

Mortgage Documents Needed for Pre-Approval:

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  • Certificate of Eligibility (COE).
  • Credit report.
  • Proof of income (pay stubs, last two years W-2s, tax returns).
  • Proof of employment. Last two years 
  • Proof of assets (last two bank statements). 401k or retirement account and stocks and bonds.
  • Kentucky Mortgage Credit report for all three credit bureaus Experian, Equifax and Transunion
  •  

4. Kentucky Down Payment Assistance Loans

Credit Score:

  • Varies depending on the program; typically, a minimum of 580 for some programs and with KHC it requires a 620 score. .

Income:

  • Must meet specific program income limits. 

Work History:

  • Stable employment history. Last two years 

Down Payment:

  • Assistance provided to cover down payment and closing costs. 25k welcome home grant, 10k down payment assistance loan from KHC and 5% grant used available toward closing costs and down payment

FICO Score:

  • Minimum FICO score requirement varies by program.

Bankruptcy and Foreclosure:

  • Varies by program.

Debt Ratio:

  • Typically aligns with Kentucky FHA, VA, or USDA requirements.

Collections:

  • Must be addressed if they impact the ability to repay the loan. 

Mortgage Insurance:

  • Depends on the primary loan program (FHA, VA, USDA).

Time to Close:

  • Approximately 45-60 days.

Appraisal Requirements:

  • Must meet the requirements of the primary loan program.

Mortgage Documents Needed for Pre-Approval:

  • Proof of income (pay stubs, W-2s, tax returns).
  • Proof of employment.
  • Proof of assets (bank statements).
  • Credit report.

5. 100% Financing Loans in Kentucky

Credit Score:

  • Varies depending on the program; typically, a minimum of 620-640.

Income:

  • Must meet specific program income limits.

Work History:

  • Stable employment history.

Down Payment:

  • No down payment required (100% financing).

FICO Score:

  • Minimum FICO score requirement varies by program.

Bankruptcy and Foreclosure:

  • Varies by program; typically 2-3 years from discharge or completion.

Debt Ratio:

  • Varies by program, typically around 41-45%.

Collections:

  • Must be addressed if they impact the ability to repay the loan.

Mortgage Insurance:

  • Depends on the primary loan program (FHA, VA, USDA).

Time to Close:

  • Approximately 30-45 days.

Appraisal Requirements:

  • Must meet the requirements of the primary loan program.

Mortgage Documents Needed for Pre-Approval:

  • Proof of income (pay stubs, W-2s, tax returns).
  • Proof of employment.
  • Proof of assets (bank statements).
  • Credit report.

General Steps for Buying Your First Home in Kentucky

  1. Check Your Credit Score:
    • Obtain a copy of your credit report and check your credit score.
  2. Determine Your Budget:
    • Use a mortgage calculator to estimate your monthly payments and determine a comfortable budget.
  3. Get Pre-Approved:
    • Contact a mortgage lender to get pre-approved for a loan. Provide necessary documents for income, employment, and assets.
  4. Choose a Real Estate Agent:
    • Select a knowledgeable real estate agent to help you find a home that meets your needs and budget.
  5. Start House Hunting:
    • Visit properties, attend open houses, and narrow down your choices.
  6. Make an Offer:
    • Once you find a home, work with your real estate agent to make a competitive offer.
  7. Home Inspection:
    • Hire a professional inspector to check the condition of the home.
  8. Finalize Your Loan:
    • Work with your lender to finalize the loan application and submit all required documents.
  9. Appraisal:
    • The lender will order an appraisal to determine the home’s value.
  10. Closing:
    • Review and sign all closing documents. Pay any remaining closing costs and receive the keys to your new home.

Following these steps and meeting the specific requirements of your chosen loan program will help you successfully purchase your first home in Kentucky.

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

 

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Kentucky FHA Loans: Your Complete Guide to FHA Loans in Kentucky

 

Are you considering a home purchase in Kentucky ? If so, then a Kentucky FHA loan might be for you. This Kentucky FHA Mortgage  guide will provide you with all the FHA loan information you need to buy a home in Kentucky using the FHA loan program

What Is A Kentucky FHA Loan?

If you’re looking to buy a home but have limited funds for a down payment or a lower credit score, then an Kentucky  FHA loan might be a good option for you. This is a type of a  Kentucky mortgage insured by the Federal Housing Administration (FHA), which allows Kentucky FHA  lenders to be more flexible with their requirements for borrowers who may not meet traditional criteria. 

How do Kentucky FHA loans work?

KEntucky FHA loans are a government-backed program which makes homeownership more accessible through more lenient lending requirements. With an FHA loan, a borrower could put down as little as 3.5% if their credit score is at least 580, or 10% if their credit score is at least 500. Nevertheless, there is a trade-off; regardless of the amount you put down, there is a requirement to pay for mortgage insurance upfront and monthly  premiums and it is for life of loan 

The FHA collects a one-time upfront mortgage insurance premium (UFMIP). This premium needs to be entirely financed into the mortgage or paid in full at closing. Additionally, there is an annual mortgage insurance premium, also called monthly MIP, which is collected in monthly installments.

The annual mortgage insurance amount depends on factors such as the loan-to-value ratio (LTV), down payment size, and mortgage term length. Lenders calculate the annual payment as a percentage of the base loan value.

 
 

Benefits Of Kentucky FHA Loan 

There are several key benefits that make Kentucky FHA loans an attractive option. Here are a few of the benefits: 

  • Low to zero down Down Payments: FHA loans are designed to help borrowers with limited funds for down payments. Specifically, if your credit score is above 580, you could qualify for a down payment of 3.5%.  
  • Flexible Credit Requirements: FHA loans have lower credit score requirements compared to conventional loans. Even with a credit score as low as 500, you may qualify with a 10% down payment. 
  • Lower Debt-to-Income Ratio (DTI): Compared to conventional loans, FHA loans typically allow borrowers with higher levels of debt to still qualify by allowing a higher Debt-to-Income Ratio (DTI). 
  • Gift Funds and Grants: You could leverage gift funds and grants from family or approved organizations to contribute towards your down payment.  

Kentucky FHA Loan Requirements 

To be eligible for an Kentucky FHA loan there are some specific requirements you must meet. Here is an overview of these requirements:   

FHA Loan Down Payment  

The amount you’ll need to pay as a down payment on an FHA loan depends on your credit score. If your credit score is 580 or higher, then you could pay as little as 3.5% of the loan amount. However, if your credit score falls between 500 and 579, you’ll need to pay a larger down payment of 10%. If you’re short on funds, there are several DPA programs available which could help for Kentucky Homebuyers with zero down payments to get into a house.! 

Kentucky FHA Mortgage Insurance Premiums 

All FHA borrowers, no matter how much of a down payment they make, must purchase both upfront and annual mortgage insurance. 

What does Kentucky FHA mortgage insurance cover on your home loan? 

Kentucky FHA mortgage insurance protects lenders in case you, the borrower, default on your mortgage. This allows lenders to offer FHA loans with lower down payments and potentially less strict credit score requirements. Essentially, it mitigates the lender’s risk, making Kentucky FHA loans more accessible to first-time homebuyers or those with limited savings. 

How much is FHA mortgage insurance? 

FHA mortgage insurance has two components – an upfront premium and an annual premium. The upfront premium is a one-time payment that you need to make at the time of loan closing, and it amounts to 1.75% of the loan amount. 

On the other hand, the annual premium is a recurring cost that you need to pay as a part of your monthly mortgage payment. The amount of the annual premium may vary depending on factors such as the loan term, loan amount, and loan-to-value ratio (LTV). 

Oftentimes, with credit improvement and an increase in home equity (at least 80% loan-to-value), borrowers with FHA loans opt to refinance to a conventional loan program. This helps eliminate the monthly mortgage insurance premium portion of the monthly mortgage payment. 

How To Calculate Kentucky FHA Mortgage Insurance 

To calculate your Kentucky  FHA Mortgage Insurance, you can either use the HUD Calculator or follow these simple steps using your specific information: 

  1. Determine the amount of your loan. 
  2. Calculate your loan-to-value (LTV) ratio by dividing the loan amount by the appraised value of the home. 
  3. Find the annual MIP rate based on your LTV ratio and loan term. You can find this information on the HUD website
  4. Multiply the loan amount by the annual MIP rate to get the annual MIP amount. 

 

Can I remove KEntucky FHA mortgage insurance? 

If you have an FHA loan, you can’t remove the Mortgage Insurance Premium (MIP) as easily as you can with Private Mortgage Insurance (PMI). To remove MIP from your FHA loan, you could refinance into a Conventional Loan. Once your home has at least 20% equity, you typically won’t have to pay PMI with a conventional loan. 

Kentucky FHA Minimum Credit Score 

 To qualify for an Kentucky FHA loan, your FICO credit score needs to be at least 580. IF below 580, you will need 10% down payment and few lenders will do this honestly so it is best to raise your score above 580

Kentucky  FHA Mortgage Debt to Income Ratios 

Your debt-to-income ratio is the percentage of your gross income used to cover your mortgage and other debt payments. 

Debt to income  ratio for FHA loans is 3o to 45%  on the front end although this may vary based on your credit score and may go up to 57% with an AUS approval though Fannie Mae DO or Freddie Mac LP underwriting system. 

Calculating Your DTI for kentucky FHA Mortgage 

To calculate your Debt-to-Income Ratio (DTI) you could either use our mortgage calculator or follow these simple steps:  

  1. Add up all your monthly debt payments, including car loans, student loans, credit card debt, and the estimated monthly mortgage payment for the FHA loan you are considering. 
  1. Calculate your pre-tax gross monthly income. 
  1. Once you have these numbers, use the following formula to calculate your DTI Ratio: DTI Ratio = Total Monthly Debt Payments / Gross Monthly Income. 

Kentucky FHA Loan Income Requirements 

Kentucky HA loans don’t have any specific minimum or maximum income requirements.

 
 

Kentucky FHA Loan Limits 

The maximum amount you can borrow on an FHA loan (which is set by The Federal Housing Administration)  As of May 2024, the Federal Housing Administration (FHA) loan limits for single-family homes in Kentucky are $498,257

Kentucky FHA Mortgage Rates 

Kentucky FHA loans typically have lower interest rates than conventional loans but inline with other government backed loans like Kentucky VA and USDA loans . This is because the Federal Housing Administration (FHA) or HUD , which manages the FHA loan program in Kentucky , insures these mortgages. This insurance protects private lenders from the risk of borrower default, which enables them to offer lower rates with a government guarantee if loan defaults

Types Of Kentucky FHA Loans 

 FHA loans available, each with unique requirements and benefits. Here are some of the most common options. 

Home Purchase  

Kentucky FHA loans are commonly used to finance the purchase of a single-family house, townhouse, or condominium, 2-4 units homes in Kentucky. 

FHA Rate Term Refinance 

A Kentucky FHA Rate Term Refinance enables you to refinance your current Kentucky FHA loan and potentially obtain a lower interest rate or adjust the loan term.  

Kentucky FHA Streamline Refinance

The Kentucky FHA Streamline option allows refinancing without an appraisal, providing a fast and simple process for borrowers with existing FHA-insured mortgages that can reduce closing costs due to not having to do an appraisal and skipping a lot of verifications that was done when you use the FHA loan the first time to buy the house. 

Kentucky FHA Cash Out Refinance  

An Kentucky FHA Cash Out Refinance allows you to leverage the equity you’ve built up in your home by letting you finance up to 80% of the home’s value to use the cash home equity –Refinance must be in a 1st lien position due to FHA does not allow for second mortgages

Kentucky FHA Cash Out Refinance 

These loans cater to homebuyers interested in purchasing a fixer upper. FHA 203k loans combine financing for both the purchase and renovation of a property, allowing you to roll renovation costs into your mortgage payment. This eliminates the need for a separate renovation loan, simplifying the financing process. 

Kentucky FHA 100% Financing 

This program provides homebuyers with 100% financing for Kentcky FHA loans, without requiring a down payment (closing costs are still required). This is achieved through a combination of a 1st and 2nd mortgage. 

This DPA program through KHC, 5% grant, and 3.5% grant from Federal Agency  can be used to obtain an FHA loan. The 2nd mortgage can be up to 3.5% of the sales price or the appraised value, whichever is less. The term for the 2nd mortgage is 10 years. 

Kentucky FHA vs Kentucky  Conventional Loan 

Kentucky FHA and Kentucky conventional loans are two popular options for financing a home. Nevertheless, there are some differences between the two

Kentucky FHA loans are provided by lenders approved by the Federal Housing Administration and guaranteed by the government. These loans usually have more relaxed eligibility requirements compared to conventional loans, and FHA loans may require smaller down payments. However, you will need to pay mortgage insurance premiums (MIPs) for at least 11 years, or the full term of the loan. 

On the other hand, conventional loans are not backed by any government agency and may have stricter lending standards. They may require larger down payments than FHA loans, and if you provide less than 20% as a down payment, you will have to pay for private mortgage insurance (PMI). However, you can request to cancel PMI when your balance reaches 80% of the original home value. 

How To Apply For A Kentucky FHA Loan 

 

Find an approved- FHA Lender in Kentucky 

To apply for an Kentucky FHA loan,  contact me below 


Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

Documents Needed for a FHA loan in Kentucky

Kentucky FHA Mortgage Application Checklist of Documents Needed below 👇

W-2 forms (previous 2 years)
Paycheck stubs (last 30 days – most current)
Employer name and address with phone number to verify employment (2 year history including any gaps)
Bank accounts statement (recent 2 months – all pages
Statements for 401(k)s, stocks and other investments (most recent)
federal tax returns (previous 2 years)
Residency history (2 year history)
Photo identification for applicant and co-applicant (valid Driver’s License

Can You Have Two Kentucky FHA Loans at One Time?

 
 
FHA will not insure more than one Property as a Principal Residence for any Borrower, except as noted below. FHA will not insure a Mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining Investment Properties, even if the Property to be insured will be the only one owned using FHA mortgage insurance.

Properties previously acquired as Investment Properties are not subject to these restrictions.

Listed below are the only circumstances in which a Borrower with an existing FHA-insured Mortgage for a Principal Residence may obtain an additional FHA-insured Mortgage on a new Principal Residence:

RELOCATION – A Borrower may be eligible to obtain another FHA-insured Mortgage without being required to sell an existing Property covered by an FHA-insured Mortgage if the Borrower is:
– relocating or has relocated for an employment-related reason; and
– establishing or has established a new Principal Residence in an area more than 100 miles from the Borrower’s current Principal Residence.

If the Borrower moves back to the original area, the Borrower is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence provided the relocation meets the two requirements above.

INCREASE IN FAMILY SIZE – A Borrower may be eligible for another house with an FHA-insured Mortgage if the Borrower provides satisfactory evidence that:
– the Borrower has had an increase in legal dependents and the Property now fails to meet family needs; and
– the Loan-to-Value (LTV) ratio on the current Principal Residence is equal to or less than 75% or is paid down to that amount, based on the outstanding Mortgage balance and a current residential appraisal.
  
VACATING A JOINTLY-OWNED PROPERTY – A Borrower may be eligible for another FHA-insured Mortgage if the Borrower is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing co-Borrower.

NON-OCCUPYING CO-BORROWER – A non-occupying co-Borrower on an existing FHA-insured Mortgage may qualify for an FHA-insured Mortgage on a new Property to be their own Principal Residence.

Can you buy a Kentucky duplex with an Kentucky FHA loan? 

FHA loans are a great way to finance the purchase of a duplex. Remember, you must live in one of the units as your primary residence for at least one year in order to be eligible for an FHA loan. This requirement is in place because FHA loans are intended to help people buy homes they will live in, not as investment home opportunities. Buying a duplex allows you to earn rental income while also enjoying the experience of being a homeowner. 

Can you get an Kentucky FHA loan twice? 

 
 
FHA will not insure more than one Property as a Principal Residence for any Borrower, except as noted below. FHA will not insure a Mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining Investment Properties, even if the Property to be insured will be the only one owned using FHA mortgage insurance.

Properties previously acquired as Investment Properties are not subject to these restrictions.

Listed below are the only circumstances in which a Borrower with an existing FHA-insured Mortgage for a Principal Residence may obtain an additional FHA-insured Mortgage on a new Principal Residence:

RELOCATION – A Borrower may be eligible to obtain another FHA-insured Mortgage without being required to sell an existing Property covered by an FHA-insured Mortgage if the Borrower is:
– relocating or has relocated for an employment-related reason; and
– establishing or has established a new Principal Residence in an area more than 100 miles from the Borrower’s current Principal Residence.

If the Borrower moves back to the original area, the Borrower is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence provided the relocation meets the two requirements above.

INCREASE IN FAMILY SIZE – A Borrower may be eligible for another house with an FHA-insured Mortgage if the Borrower provides satisfactory evidence that:
– the Borrower has had an increase in legal dependents and the Property now fails to meet family needs; and
– the Loan-to-Value (LTV) ratio on the current Principal Residence is equal to or less than 75% or is paid down to that amount, based on the outstanding Mortgage balance and a current residential appraisal.
  
VACATING A JOINTLY-OWNED PROPERTY – A Borrower may be eligible for another FHA-insured Mortgage if the Borrower is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing co-Borrower.

NON-OCCUPYING CO-BORROWER – A non-occupying co-Borrower on an existing FHA-insured Mortgage may qualify for an FHA-insured Mortgage on a new Property to be their own Principal Residence.

. 

Are Kentucky FHA loans assumable? 

 

Assumable Mortgages are a type of financing arrangement in which the outstanding mortgage and its terms can be transferred from the current owner to a buyer.
 
By assuming the previous owner’s remaining debt, the buyer can avoid having to obtain his or her own mortgage. Buyers are typically attracted to homes with existing assumable mortgages during times of rising interest rates. This is because they can assume the seller’s mortgage, which was created when interest rates were lower, and use it to finance their purchase.
 
If the home’s purchase price exceeds the mortgage balance by a significant amount, the buyer will either need to provide a sizable down payment or obtain a new mortgage anyway.
 
For example, if a buyer is purchasing a home for $250,000, and the seller’s assumable mortgage only has a balance of $110,000, the buyer would need a down payment of $140,000 to cover the difference, or would have to get a separate mortgage to secure the needed funds.

fha assumable homes in louisville

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574The 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).

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, bad credit fha loans Kentucky, credit scores, credit scores FHA loan, fico score mortgage loan, Kentucky FHA Loan Requirements for 2022

Kentucky home loan credit scores and the minimum requirements for FHA, VA, USDA, and KHC mortgage loans in Kentucky.

Understanding Credit Scores for Kentucky Mortgage Loan Approval: Insights by Joel Lobb, Mortgage Broker

Are you considering applying for a mortgage loan in Kentucky but unsure about the credit score requirements? Joel Lobb, a trusted mortgage broker, provides valuable insights into credit scores and the minimum requirements for FHA, VA, USDA, and KHC mortgage loans in Kentucky. Let’s delve into the details and explore how credit scores impact your loan approval.

Kentucky Credit Scores and Kentucky Mortgage Approval

Your credit score plays a crucial role in determining your eligibility for a mortgage loan in Kentucky. Kentucky Mortgage Lenders use credit scores to assess your creditworthiness and evaluate the risk of lending to you. Different loan programs may have varying credit score requirements, so understanding these requirements is essential for prospective homebuyers.

Credit Score Models and Minimum Requirements

Here’s a chart illustrating the difference in credit score models and the minimum credit scores required for FHA, VA, USDA, and KHC mortgage loans in Kentucky:

Loan Program Credit Score Model Minimum Credit Score
FHA Loan

FICO® Score 2: Mortgage lenders get this version of the FICO® Score from Experian.

FICO® Score 4: Mortgage lenders get this version of the FICO® Score from TransUnion.

FICO® Score 5: Mortgage lenders obtain this version of the FICO® Score from Equifax.

 500 to 580 –If less than 580, you will need 10% down payment and if over 580 or higher, 3.5%  minimum down payment
VA Loan

Equifax.

FICO® Score 2: Mortgage lenders get this version of the FICO® Score from Experian.

FICO® Score 4: Mortgage lenders get this version of the FICO® Score from TransUnion.

FICO® Score 5: Mortgage lenders obtain this version of the FICO® Score from Equifax.

 No minimum score but most VA Lenders will want a 620 or higher
USDA Loan

FICO® Score 2: Mortgage lenders get this version of the FICO® Score from Experian.

FICO® Score 4: Mortgage lenders get this version of the FICO® Score from TransUnion.

FICO® Score 5: Mortgage lenders obtain this version of the FICO® Score from Equifax.

 No minimum score, but most lenders will want a 640 or higher
KHC Mortgage Loan

FICO® Score 2: Mortgage lenders get this version of the FICO® Score from Experian.

FICO® Score 4: Mortgage lenders get this version of the FICO® Score from TransUnion.

FICO® Score 5: Mortgage lenders obtain this version of the FICO® Score from Equifax.

 KHC requires a minimum 620 credit score for FHA, VA, USDA and 660 for Conventional loan programs 

Key Insights

  1. Kentucky FHA Loans: Kentucky FHA loans are known for their lenient credit score requirements, making them accessible to borrowers with lower credit scores. However, a minimum score of 500 to 580 is typically required, depending on the down payment.

  2. Kentucky VA Loans: VA loans offer flexible credit score requirements, while on paper VA states they don’t require a minimum score to insure the mortgage loan,  most lenders preferring a FICO score of 620 or higher. Veterans, active-duty service members, and eligible spouses can benefit from VA loan options.

  3. Kentucky USDA Loans: USDA loans are designed for rural homebuyers and require no minimum FICO score , but most lenders will want a credit score of 640 or higher. These loans offer zero down payment options for eligible properties.

  4. KHC Mortgage Loans: Kentucky Housing Corporation (KHC) mortgage loans may vary in credit score requirements depending on the lender. It’s essential to work with a knowledgeable mortgage broker like Joel Lobb to understand specific lender guidelines. KHC requires a minimum 620 credit score for FHA, VA, USDA and 660 for Conventional loan programs 

Expert Guidance from Joel Lobb

Joel Lobb specializes in helping clients navigate the mortgage process, including understanding credit score requirements. With Joel Lobb’s expertise and personalized guidance, you can improve your credit score, explore loan options, and increase your chances of mortgage loan approval.

Contact Joel Lobb today to learn more about credit scores and mortgage loan approval in Kentucky. Start your journey towards homeownership with confidence and expert assistance.

This article provides valuable information about credit scores required for mortgage loan approval in Kentucky, along with a chart illustrating the minimum requirements for FHA, VA, USDA, and KHC mortgage loans. Joel Lobb’s expertise and guidance add credibility and assurance to prospective homebuyers seeking mortgage financing.

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

 

 

 

 
NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

 

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).

 
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Pre-Approval Mortgage Loan Kentucky

How long is my pre-approval good for on a Kentucky Mortgage Loan?

How long is my pre-approval good for on a Kentucky Mortgage Loan?

 10 Tips for Mortgage  Loan Applicants Not to After Pre-Approval for a KY Mortgage
 

1. Don’t change jobs or become self-employed. 

2. Don’t buy a car, truck, van, boat or motorhome unless you plan to live in it. 

3. Don’t use your credit cards or let your payments fall behind. 

4. Don’t spend the money you have saved for your down payment. 

5. Don’t buy furniture before you buy your house. 

6. Don’t originate any new inquiries on your credit report. 

7. Don’t make any LARGE or CASH deposits into your bank account. 

8. Don’t change bank accounts. 

9. Don’t co-sign for anyone. 

10. Don’t purchase anything until after the closing. 

 
Kentucky Mortgage Pre-Approval Checklist of Items Needed for Approval Letter
  1. Bank Statements - Last 2 Months – All bank statements for all accounts from the last 2 months. Include all numbered pages of all bank statements!
  2. Driver's License – Legible state-issued driver's license
  3. Evidence of Insurance – For all properties owned
  4. Federal Tax Returns - Last 2 Years – Last 2 years of federal tax returns to prove income, include all schedules
  5. HOA statement (if applicable) – Most current statement
  6. Loan Application (1003) – Please complete all fields
  7. Mortgage Statement(s) – Most recent for all properties owned
  8. Pay Stubs - Received in Last 30 Days – Last 30 days of pay stubs to prove income
  9. Social Security Card – Legible social security card to prove social security number
  10. W-2s - Last 2 Years – Last 2 years of W-2s to prove income
 
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Kentucky FHA Mortgage Loan Lender Guidelines

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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!
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, bad credit fha loans Kentucky, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, fico score, fico scores FHA loan, KY FHA LOANS

Kentucky FHA Home loan programs for people with bad credit

Score Requirement on Kentucky FHA Loans for people with bad credit

Lowers Minimum Credit Score Requirement on Kentucky FHA Loans

Kentucky FHA Home loan programs for people with bad credit

FHA loans are designed to make housing more affordable with lower down payment requirements than conventional loans on purchases and less home equity requirements on refinances.  Less stringent qualification guidelines and the security of a government-insured loan makes FHA a popular choice for consumers.

Kentucky FHA Loans with 580 Credit scores and – Low Down Payment – 3.5% which can be gifted from relatives or borrowed off one’s retirement account. If your scores is between 500-579, 10% down needed for home loan and subject to underwriting approval.

  • Low down payment
  • 500 minimum credit score from 10% down, to 580 above credit score with 3.5% down payment
  • Can be used with Grants for Down payment through Eligible Sources
  • FHA  max loan – $336,750 in the State of Kentucky
  • FHA approved condos eligible
  • Entire Down payment can be a gift, a down payment assistance program or grant funds
  • Seller can pay 6% of purchase price toward closing costs

Quick guide to checking your credit score for Kentucky FHA loans

If you’re just starting to shop for home mortgages, it pays to know if banks think you have bad credit or not. Here’s how FICO, the main credit score provider in the U.S., breaks down credit scores:
  • 800-plus: Exceptional
  • 740-799: Very good
  • 670-739: Good
  • 580-699: Fair
  • 579 and lower: Poor

Kentucky FHA loans

Kentucky FHA Loan Details
Credit score required
500, but banks have minimum underwriting
standards
Down payment required
Credit score between 500-579: 10 percent
Credit score above 580: 3.5 percent
Upfront financing fee
1.75 percent, which can be financed
Mortgage insurance
0.45 to .85 percent
Mortgage limits
Generally, $336,766 for single-family units, but it
varies by location and you should check the limits in your area
Fine print
Mortgage insurance premiums are paid for the life of the loan,
except when putting 10 percent or more down. If your down payment is
less than 20 percent but 10 percent or more, you must have
mortgage insurance for 11 years.

Quick take

If you have bad credit, an Kentucky FHA loan offers a more accessible mortgage. While credit standards vary by lender, you may qualify for the Kentucky FHA loan with a credit score as low as 500. With a credit score above the 580 threshold, you may qualify for the 3.5 percent down payment.
Unfortunately, an Kentucky  FHA loan can be expensive because of mortgage insurance fees. In addition to paying ongoing mortgage premiums for the life of the loan, you’ll have to pay a 1.75 per

 Pros:

  • 3.5 percent down payments (for those above the 580 credit-score mark)
  • Credit scores as low a 500
  • Can buy up to four units

 Cons:

  • 1.75 percent upfront mortgage premium
  • Ongoing mortgage insurance for life of loan at .85% and .80%
  • Smaller loan limits $314,000 in Kentucky
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
Text/call:      502-905-3708
fax:            502-327-9119
email:          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/
 
Posted by Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA 
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, Down payment assistance, down payment grant, fico score, fico scores FHA loan, Grants And Down payment Assistance, HUD HOMES $100 Down, Kentucky FHA HUD Homes for $100 Down, khc down payment assistance, KY FHA LOANS

Kentucky FHA Mortgage Qualifying Guidelines

Kentucky FHA Loans

The FHA is actually not the lender. They insure the loans that are issued by FHA-approved lenders. FHA loans are gear more toward borrower’s with less than 20% down payment and credit issues in the past.

Qualifying for a FHA Loan Mortgage In Kentucky

Credit Scores and Down Payment Percentages – Each year, the rules for qualifying for these loans changes. For 2020, applicants need a minimum credit score of 580 in order to get the low down payment, which is 3.5 percent.

For those whose credit score is less than 580, they will have to come up with 10 percent for their down payment. This does not guaranteed a mortgage loan approval if you have the certain credit scores, just a the minimum required.

Compensating Factors for FHA loan Approval

The credit score is just one part of the story. The FHA will also evaluate the borrower’s bankruptcies, foreclosures, prior payment history on other debts. They will also want information on difficulties that kept the borrower from making payments on other debts in the past.

Negative strikes against qualifying for the loan include not having any credit history or a bankruptcy.

Someone with a bankruptcy will have to wait for two or more years after their bankruptcy before applying for an FHA-insured loan.

If you have late payments on debt obligations, it is best to wait until you have had a full year of on-time payments before you apply for a FHA-insured loan.

If you have had a foreclosure in the past, you may still be able to get a FHA-insured loan three years after your foreclosure. The lender will be looking at the circumstances behind the foreclosure.

If you have had any civil judgement against you for money owed, collections actions or unpaid/unresolved federal debt, the FHA-approved lender will be required by the FHA to establish that all of these outstanding issues are resolved or paid before you can go through closing.

Watch out for student loans if they are delinquent because sometime this can cause a lien against you in the form of a CAVIRS Alert with HUD

As you can see, many types of borrowers who would not be eligible for a traditional mortgage, or who would face exorbitant interest rates, will be able to qualify for a FHA-insured loan at attractive interest rates.

Employment and Income for a Kentucky FHA Loan

You must have an employment history that is steady for the last two years. Does not have to be same employer.

Your income has to be verifiable in some way, whether that be through pay stubs, your income tax returns. No bank statements or cash deposits , or undocumented income can be used for income qualifying purposes.

Image result for Employment and Income for a Kentucky FHA Loan

Debt-to-Income Ratio Requirements –

Depending on the automated underwriting system from Desktop Originator, your Debt-to-income ratio is the percentage of your income before taxes that you spend on monthly debt.

Taking into account the proposed mortgage payment as well as the other debts, the FHA requires that these debts all total less than 43 percent of your pretax income in order to qualify for the loan.

If your debt load is too high, you will struggle to pay all of your bills and mortgage expenses and care for yourself and your family.

55488026_2283733755207645_6787062571322048512_n (1)

Property Requirements for a Kentucky FHA Loan

It must be the place where you intend to reside. You must move into the home within 60 days of closing the loan. The home cannot be an investment. There will be an inspection to ensure that the home is safe and habitable.

It is really not too hard to pass FHA loans and the appraisal process.

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Pros of FHA Loans –

  • New homebuyers and those who have lower credit scores or who have other blemishes on their credit history will often qualify for FHA-insured loans.

  • Even though these borrowers are considered “subprime” to a traditional lender, they will receive attractive interest rates through the FHA-insured mortgage programs.

  • The down payments required from borrowers are lower than those required by traditional mortgage lenders.

  • These loans can be combined with other forms of public assistance for lower income or new borrowers so that the borrower will not need to come up with a down payment of any kind.

Cons of FHA Loans –

  • Since the FHA is not actually the lender, and you have to go through FHA-approved lenders, you may not qualify due to stricter standards that the lender has for the loan.

  • Because you are not paying 20 percent as a down payment, the FHA requires two mortgage insurance premiums to be paid. One is an upfront premium that is 1.75 percent of the loan amount. Lenders often will allow you to make that mortgage insurance premium a part of your loan. The second is an annual mortgage insurance premium that is .45 percent or 1.05 percent. This premium is paid monthly.

 FHA FINANCING

CREDIT REQUIREMENTS FOR KENTUCKY FHA FINANCING

What credit score do I need to qualify for a Kentucky FHA loan is one of the most common questions I hear from Kentucky homebuyers?

The short answer is you must have a minimum credit score of 500 to be eligible for an FHA loan in Kentucky.  Anything lower than 500 disqualifies you from consideration for an FHA loan.

There are two sets of credit score requirements for a Kentucky FHA Loan

One important thing to understand is that the Federal Housing Administration (FHA) does not lend money directly to home buyers. You will fill out an application with a regular lender just as you would if you were applying for any other type of mortgage. What the FHA does is ensure your loan to help protect the lender in case you default.

You will be required not only to meet the FHA guidelines to qualify for a loan but also meet any additional qualifications required by the lender. This means there are two sets of requirements you have to meet with your credit score.

1. The first set of requirements comes from the Department of Housing and Urban Development (HUD). HUD oversees the FHA and determines what a borrower’s minimum eligibility requirements will be to obtain an FHA loan.

2. The second set of requirements comes from the mortgage lender. The mortgage lender has the right to add its requirements to those mandated by HUD.

What HUD requires of borrowers to be eligible for an FHA loan

The HUD Handbook 4000.1 includes the official guidelines when it comes to the FHA mortgage insurance program.

It states that in 2020 the Kentucky FHA borrowers with credit scores of 580 or higher are eligible for a 96.5% loan with 3.5% down.

Borrowers with credit scores from 500 to 579 are eligible for a 90% loan with 10% down.

Individuals with credit scores below 500 are not eligible for the FHA program.

What lenders may require of borrowers to be eligible for an Kentucky FHA loan

Lenders have the right to add requirements over and above the minimum requirements of HUD. These additional requirements are called overlays. Your lender may or may not require them.

This is not something that should come as a surprise to you, however. Requiring a credit score of 580 to 620 is not unusual. In addition to your credit score, you must have a manageable debt level that lenders are comfortable with and enough income to repay your loan.

What credit score do I need to qualify for FHA loan?

Each month Ellie Mae, the software company processing more than ⅓ of America’s mortgage loans, publishes an insight report for mortgage trends and standards. One of the things they track is average credit scores. The following is their report for November 2019 which shows what percentage of successful borrowers fall into what credit score ranges.

500 – 549    2.14%
550 – 599    5.20%
600 – 649    23.01%
650 – 699    34.74%
700 – 749    21.88%
750 – 799    10.87%
800+     1.89%

These percentages show that the majority of borrowers who successfully qualify for FHA loans fall into the 600 to 799 range. While it is true that some successfully qualify in the low range of 500 to 599, you have a much better chance of being approved for a loan with good terms and a low down payment if you fall into the higher range.

 

 

 

For your free credit report and analysis call us today at 502-905-3708 or email us at kentuckyloan@gmail.com

 
 
Joel Lobb (NMLS#57916)
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

 

 

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/

 

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Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, Chapter 13 Bankruptcy Guidelines, FHA Back to Work Program Ky, FHA Guidelines, first time buyer kentucky

Lending 101: FHA Loans In Kentucky

Lending 101: FHA Loans In Kentucky
Kentucky FHA loans are great loan program that is not just for first-time buyers!

Here are some of our favorite features of Kentucky FHA loans:

  1. Low down payment – FHA requires 3.5 % down. For qualified buyers, this money may be able to be gifted from a family member.
  2. No income limits – There are no income limits placed on the borrower or the household.
  3. Credit scores – Interest rates and underwriting requirements are less credit score sensitive than other loan programs. In some scenarios, we are able to lend to buyers with scores in the mid-500s. *Note: Credit scores under 580 will require a 10% down payment.
  4. Manufactured homes – No problem with FHA! Manufactured homes must be on a permanent foundation and have been built after June 1976.
  5. Rehab loans – Utilizing the FHA 203K program, we can do purchase and refinance loans that roll the cost of rehabs or repairs into the loan amount.
  6. No geographic restrictions – FHA loans can be done anywhere,
  7. Generous Debt-to-Income Ratios – For most buyers, FHA allows for a higher debt load than other programs. FHA may be the only program for some borrowers with high credit card and/or student loan debt.
  8. Non-Occupant Co-Borrowers – FHA is one of the few programs that allow non-occupant co-borrowers. While a non-occupant co-borrower cannot help in scenarios where a buyer has a low score and cannot qualify on their own, it is a great solution for buyers who have low income or income that can’t be documented.

Want to learn more about FHA loans? Contact any member of our team today, reply to this email, or give us a call at 502-905-3708 and ask to speak to a mortgage loan originator.
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