Mortgage Rates Louisville, Kentucky
Current Louisville Kentucky Mortgage Rates Today
Mortgage Product Mortgage Rates (APR)
Kentucky Mortgage Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC, and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required for a Kentucky Mortgage Only.
A 720 credit score or higher is assumed for a Kentucky Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Kentucky Conventional loans are assumed at 80% ltv or less.
Today’s Louisville Kentucky Mortgage Rates may contain points
Subject to credit approval
Rates are subject to change without notice.
Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC, and 620 credit scoresfor a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required.
A 720 credit score or higher is assumed for Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Conventional loans are assumed at 80% ltv or less.
Free Credit Report and Pre qualifications available anytime.
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This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA
HUD Homeownership Center Reference Guide Refinances.
louisville ky cash out refinance
Chapter 2
Mortgage Credit Guidelines
Page 2-19
A refinance transaction involves paying off an existing real estate debt from proceeds of a new mortgage. For all refinance loan transactions, 1) the borrower must be current for the month due and, 2) there must a current payoff statement in the case binder.
Under the terms and conditions outlined below, FHA will insure the following types of refinances:
A. Regular Refinances – “cash-out” and “no cash-out”
1. “Cash-Out” Refinances: the maximum loan-to-value and combined loan-to-value of any cash-out refinance is 85%. The calculation is based either off the appraised value or the original sales price, depending on the length of time the borrower has owned the property.
a)The loan is limited to a combined LTV (FHA insured first mortgage and any subordinated lien) of 85% of the appraised value, provided the borrower has owned the property for at least one year. Note that manufactured homes have other restrictions (Handbook 4155.1, section 3.A).
b) If the property was purchased less than one year preceding the application date, the LTV/CLTV (85%) for the mortgage amount must be calculated using the lesser of the appraised value or the original sales price of the property.
c) The property that is security for the refinanced mortgage may be a 1-4 unit property.
d)The property must be owner-occupied. Non-owner occupant co-borrower may not be added in order to meet FHA?s credit underwriting guidelines.
e)Properties owned free and clear may be refinance as cash-out transactions.
f)3-4 unit properties are required to pass the self sufficiency test and have a minimum of 3 months reserves after closing.
g) Properties acquired by inheritances within the past 12 months are eligible for a cash-out refinance transaction provided they have been occupying the property as their primary residence since the inheritance. The lender must document the acquisition by the borrowers via inheritance.
h)Manufactured homes: there are restrictions applicable please refer to Handbook 4155.1, section 3.A.
2.No Cash-Out Refinances (non-streamline): The maximum mortgage is based on the lesser of “a” and “b” below (a third calculation is applicable if owned less than 12 months):
a)The maximum LTV percentage is multiplied by the appraised value, exclusive of closing costs (please refer to Mortgagee Letter 2010-24).
b)The sum of the existing first lien, any purchase money second mortgage and/or any junior liens over 12 months old, closing costs, prepaid expenses, accrued late charges, escrow shortages, borrower paid repairs required by the appraisal, discount points, prepaid penalties charged on a conventional loan and FHA Title 1 loans as determined by the appropriate HOC subtract any refund of refund of upfront MIP. Note that the prepaid expenses may include per diem interest through the end of the month for the new loan, hazard/flood insurance premiums, mortgage insurance premiums and property tax deposits needed to establish the escrow account. The existing first lien may include the interest charged by the servicing lender, when the payoff is not received by the first of the month, but may not include any delinquent interest.c)If the property was acquired less than one year before the loan application, and the existing loan is not an FHA loan, the original sales price, must be considered in calculating the maximum mortgage. Refer to Handbook 4155.1, section 3.B.
d)There may not be more than $500 in incidental cash back to the borrower.
e)If there is an existing subordinate lien refer to Handbook 4155.1, section 3.A, 3.B and ML 11-11.
f)Additional restrictions apply for manufactured homes; refer to Handbook 4155.1, section 3.A.
B.Streamline Refinances (with or without an appraisal): Streamline transactions involve the refinance of the FHA insured first mortgage only. This type of loan is designed to lower the monthly principal and interest payments on the current FHA insured mortgage and involves no cash back to the borrower. All Streamline transactions must meet the following criteria:
Note: Effective with case numbers assigned on or after April 18, 2011, the use of an appraisal to increase the insurable mortgage balance for a “non-qualifying” streamline refinance will no longer be permitted.
I)At the time of loan application: a) the borrower must be current, b) must have made at least 6 full months of payments since the first payment date and, c) at least 210 days must have passed from the closing date of the mortgage being refinanced.
2)At the time of loan application the borrower must exhibit an acceptable payment history as described below:
a) For mortgages with less than a 12 month payment history, the borrower must have made all mortgage payments within the month due.
b)For mortgages with a 12 month payment history or greater, the borrower must have:i)Experienced no more than one 30 day late payment in the preceding 12 months, AND
ii)Made all mortgage payments within the month due for the three months prior to the date of loan application.
III)The lender must determine there is a net tangible benefit as a result of the streamline refinance transaction, with or without an appraisal. Net Tangible benefit is defines as:
a) Reduction to the principal, interest plus MIP by at least 5% (compare the new P & I & MIP to the existing P & I & MIP), or
b) For details of permissible minimum thresholds involving refinancing in or out of an ARM refer to ML 2011-11.
4)Investment/secondary property: for FHA financed properties that have become investment properties or secondary residences, a streamline refinance is only permitted without an appraisal. All other criteria must be met, however these properties may not be refinanced into an ARM.
5) Assets: If assets are needed to close, they must be verified.
6)A current payoff statement must be in the case binder.
7) Subordinate financing: if subordinate financing will remain in place, the maximum CLTV is 125%. To calculate the maximum CLTV for streamlines without an appraisal, use the “original property value” shown on the Refinance Authorization screen in FHAC. For streamlines with an appraisal, the CLTV calculation is based on the new appraised value.
8)LDP and GSA lists are required to be checked, however there is no need to check the CAIVRS.
9)URLA: for non-credit qualifying streamlines an abbreviated version of the URLA is permitted, however for credit qualifying streamlines, a fully completed URLA is required.
10)Maximum mortgage:
a) Streamline refinance without an appraisal (owner occupied): the maximum mortgage is the outstanding principal balance plus interest charged by the servicing lender (but may not include delinquent interest, late charges or escrow shortages), minus UFMIP refund plus new UFMIP.
b) Streamline refinance with an appraisal: as reflected above for case number assigned on or after April 18, 2011. For cases with case numbers assigned prior to this date refer to Handbook 4155.1, section 6.C.
c) Streamline refinance without an appraisal (non-owner occupied): these may only be refinanced without an appraisal and the new base mortgage may only cover the outstanding principal balance less the any UFMIP refund. Further the term of the mortgage must be the lesser of 30 years or the remaining term of the mortgage plus 12 years.
The mortgage or financial services or strategies mentioned in this website may not be not suitable for you.
Key Financial Mortgage is an Equal Opportunity Lender. All rights Reserved.
Joel Lobb is a Licensed Mortgage Originator:NMLS #57916. Key Financial Mortgage NMLS # 1800 is a licensed Mortgage Broker Company in the State of Kentucky
* This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.
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All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines.
FHA Announces Important Guideline Changes.
Mortgagee Letter 2012-3 announces several key guideline changes on topics of self-employment, disputed credit, outstanding collections and identity of interest definitions. These changes are good from the perspective that they offer much clearer underwriting requirements on several key topics so not as much is left to interpretation or opinion. All of these changes are effective for cases assigned on and after April 1st.
Topic: Self-Employment
New Requirement for AUS Approve/Accept & Manual Underwriting: A P&L and Balance Sheet is required if more than a calendar quarter has elapsed since date of most recent calendar or fiscal-year end tax return was filed by the borrower – with no exceptions. Additionally, if income used to qualify the borrower exceeds the two year average of tax returns, an audited P&L or signed quarterly tax returns obtained from IRS are required.
Topic: Disputed Credit Accounts
New Requirement: AUS Accept/Approve does not need to be downgraded to a Refer and manually underwritten as long as
• the total outstanding balance of all disputed credit accounts or collections are less than $1,000, and
• Disputed credit accounts or collections are aged two years from date of last activity as indicated on the most recent credit report.
If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing. The payments arranged for the accounts must be included in the calculation of the borrower’s debt-to-income ratios.
Disputed credit accounts or collections resulting from identity theft, credit card theft, or of unauthorized use, etc., will be excluded from the $1,000 limit under the terms shown below. The mortgagee must provide a credit report or letter from the creditor, or other appropriate documentation, to support that the borrower filed an identity theft or police report to dispute the fraudulent charges. Mortgagees must provide documentation in the case binder to show all disputed or collection accounts are resolved, verified as not a debt to the borrower, arrangements made for payment, or paid in full.
Topic: Outstanding Collection Accounts & Court-Ordered Judgments
New Requirement: If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing. If the total outstanding balance of all collection accounts is less than $1,000, the borrower is not required to pay off the collection accounts as a condition of mortgage approval.
Note: Paying “down” of balances on disputed accounts and collections to reduce the singular or cumulative balance to below $1,000, is not an acceptable resolution of accounts.
An exception to the payoff of a court-ordered judgment may be made if the borrower has an agreement with the creditor to make regular and timely payments, and provides documentation indicating that a minimum of three months payments have been made according to the agreement. The monthly payment must be included in the borrower’s debt-to-income ratio.
Topic: Identity of Interest Transaction
New Requirement: The definition of a family member for establishing “identity of interest” purposes has been expanded to include a child, parent, grandparent, spouse, legally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption, foster child, brother, stepbrother, sister, stepsister, uncle, and aunt.
Please be sure to read the Mortgagee Letter in its entirety.
Buying a Home/U.S. Department of Housing and Urban Development (HUD).
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