Wednesday, April 11, 2018

Kentucky Zero Percent Down Home loans on 30 year fixed rates for FHA, VA, KHC, USDA and Fannie Mae.

Kentucky Zero Percent Down Home loans on 30 year fixed rates 

Zero percent down home loans

Get your own backyard for your kids and dogs.

We offer  home loans in Kentucky for homebuyers that  allows for 100% financing; no down payment required.* 0% down loans, 580 minimum credit score for Kentucky  FHA and VA  Home Loans, 620 credit score for Fannie Mae, and 640 for Kentucky USDA Loan. No Bankruptcies last 2-3 years on FHA and USDA, and 4 years out on A Fannie Mae Home Mortgage. 

Does not require you to purchase your home in targeted markets, nor are you required to attend home buyer education classes on some programs offered through FHA, VA, USDA and KHC home loans in Kentucky .

Kentucky zero down payment*

  • No home buyer education classes required.
  •  Does require a 40-50% maximum debt-to-income ratio.

Other Financial Institutions

  • May require you to purchase in designated areas.
  • Home buyer education class is required.
  • May have income restrictions
  • .
100% financing; no down payment required. It does require that your home meet the owner-occupancy requirements and condominium warrantability.







Conventional Mortgage Loans in Kentucky


Conventional loans are the most common type of home loan and are not backed or insured by the U.S Government. Conventional loans have two sub categories: conforming and non-conforming. A conforming loan conforms to underwriting guidelines and maximum amounts used by Fannie Mae or Freddie Mac. 
There are different options under conforming and non-conforming loans you can choose from:
 Conforming
Conforming Jumbo
Non-conforming
Jumbo

Maximum loan limits are set by the Office of Federal Housing.
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Current limits for most Kentucky counties is $453,100.
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Required down payments can be as low as 3%. Borrowers must meet eligibility requirements.
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Down payments below 20% require mortgage insurance.

A loan which exceeds the Maximum loan limit for the county where the property is located.
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Curious about your county’s limit? Click here.
A loan which exceeds the Max loan limit and does not meet the standard underwriting guidelines of Fannie Mae and Freddie Mac.


Special Government Loan Programs for First Time Home Buyers in Kentucky 


Kentucky FHA loans are issued by federally qualified lenders and insured by the Federal Housing Administration. These loans are designed for low-to-moderate income borrowers who are not able to make a large down payment.
  • The required down payment can be as low as 3.5%
  • You are required to purchase a mortgage insurance policy or MIP. The MIP has an upfront cost (to be paid during closing) and monthly premium (paid with your mortgage payment each month).
  • FHA loans allow you to include a person (who is related by blood, marriage, or law) on the loan who will not occupy the property to help you qualify (Non-Occupant Borrower).

Kentucky VA Mortgage Loans

VA loans are offered by qualified lenders and guaranteed by the U.S. Department of Veterans Affairs. This loan is designed to offer long-term financing to eligible American veterans or their surviving spouses.
  • VA loans offer a low down payment or even zero down payment options.
  • There is no monthly mortgage insurance, however, you are required to pay an upfront funding fee at closing.
  • If you put 0% down, you need to pay at closing. You can wrap in the funding fee, and the max LTV is 100%.
  • The benefits of a VA loan are available for life. If you repay one loan in full and want to purchase another property, you can use your VA benefits for that purchase also.
  • Minimum credit score on paper with VA says they don't require a credit score but you will usually need a minimum 580 with most lenders and a lot of lenders will want a 620 credit scorer. 

Kentucky USDA Loans

USDA loans are offered by approved lenders and guaranteed by the U.S. Department of Agriculture. These loans are designed to encourage low-to-moderate income households to purchase modest, safe, and decent dwellings in eligible rural areas.
  • USDA loans do not require a down payment.
  • You will need to purchase mortgage. The upfront mortgage insurance can be rolled into the loan amount, max LTV is 102%.
  • 640 credit score required usually for a good pre-approval
  • maximum debt to income ratios are 45% on the back-end, meaning your new house payment along with your current monthly payments on the credit report cannot be more than 45% of your total gross monthly income



http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
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
http://www.nmlsconsumeraccess.org/
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/
 
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.






Saturday, March 31, 2018

Frequently Asked Questions for Kentucky First Time Homebuyers buying their First Kentucky Home.



 Kentucky First Time Homebuyers buying their First Kentucky Home Information Below for 2018







How are interest rates determined?

Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth, and Federal Reserve policy. Over time, inflation has the largest influence on the level of interest rates. A modest rate of inflation will almost always lead to low interest rates, while concerns about rising inflation normally cause interest rates to increase. Our nation's central bank, the Federal Reserve, implements policies designed to keep inflation and interest rates relatively low and stable.

Should I pay discount points in exchange for a lower interest rate?


Discount points are considered a form of interest. Each point is equal to one percent of the loan amount. You pay them, up front, at your loan closing in exchange for a lower interest rate over the life of your loan. This means more money will be required at closing, however, you will have lower monthly payments over the term of your loan.

To determine whether it makes sense for you to pay discount points, you should compare the cost of the discount points to the monthly payments savings created by the lower interest rate. Divide the total cost of the discount points by the savings in each monthly payment. This calculation provides the number of payments you'll make before you actually begin to save money by paying discount points. If the number of months it will take to recoup the discount points is longer than you plan on having this mortgage, you should consider the loan program option that doesn't require discount points to be paid.

If you'd prefer not to make this calculation the "old-fashioned way," we have a discount points calculator!

Is comparing APRs the best way to decide which lender has the lowest rates and fees?


The Federal Truth in Lending law requires that all financial institutions disclose the APR when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all, closing fees are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan. Since most people do not keep the mortgage for the entire loan term, it may be misleading to spread the effect of some of these up front costs over the entire loan term.

Also, unfortunately, the APR doesn't include all the closing fees and lenders are allowed to interpret which fees they include. Fees for things like appraisals, title work, and document preparation are not included even though you'll probably have to pay them.

For adjustable rate mortgages, the APR can be even more confusing. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.

You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that's best for you. Look at total fees, possible rate adjustments in the future if you're comparing adjustable rate mortgages, and consider the length of time that you plan on having the mortgage.

Don't forget that the APR is an effective interest rate--not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.


How do I know if it's best to lock in my interest rate or to let it float?

Mortgage interest rate movements are as hard to predict as the stock market and no one can really know for certain whether they'll go up or down.
If you have a hunch that rates are on an upward trend then you'll want to consider locking the rate as soon as you are able. Before you decide to lock, make sure that your loan can close within the lock in period. It won't do any good to lock your rate if you can't close during the rate lock period. If you're purchasing a home, review your contract for the estimated closing date to help you choose the right rate lock period. If you are refinancing, in most cases, your loan could close within 30 days. However, if you have any secondary financing on the home that won't be paid off, allow some extra time since we'll need to contact that lender to get their permission.

If you think rates might drop while your loan is being processed, take a risk and let your rate "float" instead of locking.


Are there any prepayment penalties charged for these loan programs?

None of the loan programs we offer have penalties for prepayment. You can pay off your mortgage any time with no additional charges.

What is your Rate Lock Policy?

The interest rate market is subject to movements without advance notice. Locking in a rate protects you from the time that your lock is confirmed to the day that your lock period expires.

Lock-In Agreement

A lock is an agreement by the borrower and the lender and specifies the number of days for which a loan’s interest rate and discount points are guaranteed. Should interest rates rise during that period, we are obligated to honor the committed rate. Should interest rates fall during that period, the borrower must honor the lock.


When Can I Lock?

Once you have a home under contract

Lock Period--We currently offer a 30, 60, 90 day lock-in period on our site. This means your loan must close and disburse within this number of days from the day your lock is confirmed by us.

Once we accept your lock, your loan is committed into a secondary market transaction

We are able to renegotiate lock commitments if mortgage rates get better

Closing fees and how they are determined for a mortgage loan in Kentucky


A home loan often involves many fees, such as the appraisal fee, title charges, closing fees, and state or local taxes. These fees vary from state to state and also from lender to lender. Any lender or broker should be able to give you an estimate of their fees, but it is more difficult to tell which lenders have done their homework and are providing a complete and accurate estimate. We take quotes very seriously. We've completed the research necessary to make sure that our fee quotes are accurate to the city level - and that is no easy task!

To assist you in evaluating our fees, we've grouped them as follows:

Third Party Fees

Fees that we consider third party fees include the appraisal fee, the credit report fee, the settlement or closing fee, the survey fee, tax service fees, title insurance fees, flood certification fees, and courier/mailing fees.

Third party fees are fees that we'll collect and pass on to the person who actually performed the service. For example, an appraiser is paid the appraisal fee, a credit bureau is paid the credit report fee, and a title company or an attorney is paid the title insurance fees.

Typically, you'll see some minor variances in third party fees from lender to lender since a lender may have negotiated a special charge from a provider they use often or chooses a provider that offers nationwide coverage at a flat rate. You may also see that some lenders absorb minor third party fees such as the flood certification fee, the tax service fee, or courier/mailing fees.

Taxes and other unavoidables
Fees that we consider to be taxes and other unavoidables include: State/Local Taxes and recording fees. These fees will most likely have to be paid regardless of the lender you choose. If some lenders don't quote you fees that include taxes and other unavoidable fees, don't assume that you won't have to pay it. It probably means that the lender who doesn't tell you about the fee hasn't done the research necessary to provide accurate closing costs.

Lender Fees

Fees such as discount points, document preparation fees, and loan processing fees are retained by the lender and are used to provide you with the lowest rates possible.

This is the category of fees that you should compare very closely from lender to lender before making a decision.

Required Advances

You may be asked to prepay some items at closing that will actually be due in the future. These fees are sometimes referred to as prepaid items.

One of the more common required advances is called "per diem interest" or "interest due at closing." All of our mortgages have payment due dates of the 1st of the month. If your loan is closed on any day other than the first of the month, you'll pay interest, from the date of closing through the end of the month, at closing. For example, if the loan is closed on June 15, we'll collect interest from June 15 through June 30 at closing. This also means that you won't make your first mortgage payment until August 1. This type of charge should not vary from lender to lender, and does not need to be considered when comparing lenders. All lenders will charge you interest beginning on the day the loan funds are disbursed. It is simply a matter of when it will be collected.

If an escrow or impound account will be established, you will make an initial deposit into the escrow account at closing so that sufficient funds are available to pay the bills when they become due.

If your loan requires mortgage insurance, up to two months of the mortgage insurance will be collected at closing. Whether or not you must purchase mortgage insurance depends on the size of the down payment you make.

If your loan is a purchase, you'll also need to pay for your first year's homeowner's insurance premium prior to closing. We consider this to be a required advance.

What is title insurance and why do I need it?

If you've ever purchased a home before, you may already be familiar with the benefits and terms of title insurance. But if this is your first home loan or you are refinancing, you may be wondering why you need another insurance policy.

The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and especially your mortgage lender, want to make sure the property is indeed yours: That no individual or government entity has any right, lien, claim, or encumbrance on your property.

The function of a title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a homebuyer are fully protected.

Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, and others who have an interest in real estate transfer. Title companies typically issue two types of title policies:

1) Owner's Policy. This policy covers you, the homebuyer.
2) Lender's Policy. This policy covers the lending institution over the life of the loan.

Both types of policies are issued at the time of closing for a one-time premium, if the loan is a purchase. If you are refinancing your home, you probably already have an owner's policy that was issued when you purchased the property, so we'll only require that a lender's policy be issued.

Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or, more likely, the information contained in the company's own title plant.

After a thorough examination of the records, any title problems are usually found and can be cleared up prior to your purchase of the property. Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.

The fact that title companies try to eliminate risks before they develop makes title insurance significantly different from other types of insurance. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen future event, say a fire, accident or theft. On the other hand, the purpose of title insurance is to eliminate risks and prevent losses caused by defects in title that may have happened in the past.

This risk elimination has benefits to both the homebuyer and the title company. It minimizes the chances that adverse claims might be raised, thereby reducing the number of claims that have to be defended or satisfied. This keeps costs down for the title company and the premiums low for the homebuyer.

Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are slim indeed.

What is mortgage insurance and when is it required?

First of all, let's make sure that we mean the same thing when we discuss "mortgage insurance." Mortgage insurance should not be confused with mortgage life insurance, which is designed to pay off a mortgage in the event of a borrower's death. Mortgage insurance makes it possible for you to buy a home with less than a 20% down payment by protecting the lender against the additional risk associated with low down payment lending. Low down payment mortgages are becoming more and more popular, and by purchasing mortgage insurance, lenders are comfortable with down payments as low as 3 - 5% of the home's value. It also provides you with the ability to buy a more expensive home than might be possible if a 20% down payment were required.

The mortgage insurance premium is based on loan to value ratio, type of loan, and amount of coverage required by the lender. Usually, the premium is included in your monthly payment and one to two months of the premium is collected as a required advance at closing.

It may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount - below 75% to 80% of the property value. Recent Federal Legislation requires automatic termination of mortgage insurance for many borrowers when their loan balance has been amortized down to 78% of the original property value.

What is the maximum percentage of my home's value that I can borrow?


The maximum percentage of your home's value depends on the purpose of your loan, how you use the property, and the loan type you choose, so the best way to determine what loan amount we can offer is to complete our online application!

Why would I choose a combination loan?

A combination loan eliminates the need for Private Mortgage Insurance (PMI), which is typically required any time a first mortgage is provided for more than 80% of the home’s value. This is accomplished by limiting the first mortgage to no more than 80% of the home’s value and financing any additional funds that are needed using a second mortgage. Typically the interest rate of the second mortgage is higher than that of the first mortgage, but generally less expensive than the cost of PMI. You should always compare the cost of a combination loan with the cost of a first mortgage. Even when combined with the additional cost of a second mortgage, at higher interest rate, the combination loan may still be less than the PMI premium because mortgage interest is tax deductible, whereas PMI is not. It is always prudent to review all your financing options before deciding which is best for you.





f you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.
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Tuesday, March 27, 2018