Thursday, August 3, 2017

Four things to know about qualifying and closing a mortgage loan for Kentucky First Time Home Buyers

Kentucky First Time Home Buyers Questions Answered Below:


1.  Do Mortgage Interest Rates Change Daily?

Just like the gas prices at the pump,  mortgage rates can change daily or throughout the day.  Typically mortgage rates are published at 10-11 am daily by most lenders and you can lock up through the close of business which is usually around 6-7 PM.  Mortgage rates can change up or down throughout the day based on various financial, economics, and geopolitical news in the US Financial markets and World markets. Generally speaking, good economic news is bad for rates and vice versa, bad economic news is good for mortgage rates. 

The good news is this: Once you find a home and get it under contract, you can lock your mortgage loan rate. Typically it takes about 30-45 days to close a mortgage loan in Kentucky, so the typical lock is for 30-60 days. If rates get better you may be able to negotiate a better rate with your lender, but they usually have to improve by at least 25 basis points (.25) to do that. Not all lenders offer this option. The longer you lock the loan, the greater the costs. It is usually free to lock in a loan for up to 90 days without having to pay a fee.

What a lot of lenders are experiencing now is that some loans don't close on time for various reasons. You can always extend the lock on the loan but it will costs you usually .125 basis points to do so. If you let the lock expire on the loan, then you have to take worse case pricing on that day when you go to relock. It is usually best to extend the lock on your loan. 


2. What kind of Credit Score Do I need to qualify?

When applying for a mortgage loan, lenders will pull what they call a "tri-merge" credit report which will show three different fico scores from Transunion, Equifax, and Experian. The lenders will throw out the high and low score and take the "middle score" For example, if you had a 614, 610, and 629 score from the three main credit bureaus, your qualifying score would be 614. Most lenders will want at least two scores. So if you only have one score, you may not qualify. Lenders will have to pull their own credit report and scores so if you had it ran somewhere else or saw it on a website or credit card you may own, it will not matter to the lender, because they have to use their own credit report and scores. 
Most lenders will pull your credit report for free nowadays so this should not be a big deal as long as your scores are high enough. 
The Secondary Market of Mortgage loans offered by FHA, VA, USDA, Fannie Mae, and KHC all have their minimum fico score requirements and lenders will create overlays in addition to what the Government agencies will accept, so even if on paper FHA says they will go down to 580 or 500 in some cases on fico scores, very few lenders will go below the 620 threshold. 
If you have low fico scores it may make sense to check around with different lenders to see what their minimum fico scores are for loans. 
The lenders I currently deal with have the following fico cutoffs for credit scores:
FHA--580 minimum score
VA----580 minimum score
Fannie Mae--620 minimum score
USDA--640 minimum score
KHC with Down Payment Assistance --620 minimum score.
As you can see, 620 is the minimum score with most lenders for a FHA, VA, or Fannie Mae loan, and 640 is required for the no down payment programs offered by USDA for Kentucky for First Time Home Buyers wanting to go no money down.

3. What are the down payment requirements?


The most popular programs for Kentucky First Time Home Buyers usually involves one of the following housing programs outlined in bold below:
FHA:

FHA will allow a home buyer to purchase a house with as little as 3.5% down. If your credit scores are low, say 680 and below, a lot of times it makes sense to go FHA because everyone pays the same mortgage insurance premiums no matter what your score is, and the down payment can be gifted to you. Meaning you really don't have to have any skin into the game when it comes to down payment. They even allow down payment assistance through eligible parties (government grants or non-profits). Lastly, FHA will allow for higher debt to income ratios with sometimes getting loan pre-approvals up to 55% of your total gross monthly income. 
Fannie Mae:
Fannie Mae requires just 3% down with their new Home Possible Program, but if you use their traditional mortgage loan, then 5% is the Fannie Mae Standard. Fannie Mae will o down to a 620 score, but if your scores are below 680, I would look seriously at the FHA loan program because Fannie Mae has steep increases to the interest rate and the mortgage insurance premiums if your scores are low. 
A couple of good things about Fannie Mae is that you can buy a larger priced home and have a large loan amount due to FHA only allowing most Kentucky Home Buyers a maximum mortgage loan amount of $275-to $287k price range while Fannie Mae will go up to Conforming loan limits of $410k.
Lastly when it comes to mortgage insurance, FHA mortgage insurance premiums are for life of loan while Fannie Mae mortgage insurance premiums drop off when you develop 80% equity position in your house. 
But as a tell most people, nobody has a loan for 30 years, and the average mortgage is either refinanced or home sold within the first 5-7 years. 
VA Loans- 

VA loans offer eligible Veterans and Active Duty Personnel to buy a home going no money down with no monthly mortgage insurance. This is probably the best no money down loan out there since the rates are traditionally very low on comparison to other government insured mortgages and no monthly mortgage insurance. The VA loan can be used anywhere in the state of Kentucky with the maximum VA loan limit being $417k
USDA Loans- 

USDA loans offer people buying a home in rural areas (typically towns of $20k or less) to buy a home going zero down. You cannot currently own another home and there is household income limits of $75,000 for a household family of four, and up to $99,000 for a household of five or more. You search USDA website for eligible areas and household income limits below at the yellow highlighted link :
KHC or Kentucky Housing-
Kentucky First Time Home Buyers typically use KHC for their down payment assistance. KHC currently offers $4500 to $6000 for down payment assistance and sometimes throughout the year they will offer low mortgage rates on their mortgage revenue bond program. The down payment assistance usually never runs out because you have to pay it back in the form of a second mortgage. It helps a lot of home buyers that want to buy in urban areas that cannot utilizer the USDA program in rural areas. Most of the time the first mortgage is a FHA loan tied with the 2nd mortgage fore down payment assistance.  All KHC programs require a 620 score and rates are locked for 45 days. Max income limits are usually set around $112k for a household with the max loan being $283,000 currently. 


4. What if I have had a bankruptcy or foreclosure in the past? 



FHA and VA are the easiest on previous bankruptcies. FHA and VA both require 2 years removed from the discharge date on a Chapter 7. If you are in the middle of a Chapter 13, FHA will allow for financing with a 12 month clean history payment to the Chapter 13 courts, and with trustee permission

VA requires 2 years removed from a foreclosure (sheriff sale date of home) and FHA requires 3 years. 

USDA requires 3 years removed from both a foreclosure and bankruptcy, but on the foreclosure they do not go off the sale date. This may save you a little time if you had a previous foreclosure. 

Fannie Mae (Conventional Loan)

Fannie Mae is by far the strictest. They require 4-7  years out of a foreclosure or bankruptcy 


If 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.












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 views of my employer. Not all products or services mentioned on this site may fit all people

KENTUCKY FIRST TIME HOME BUYERS MORTGAGE REQUIREMENTS







Kentucky First Time Home Buyers Programs for 2017



Rest assured, most Kentucky  first-time home buyers in 2017 are confused and lack confidence when it comes to buying their first home in Kentucky. However, in 2016 there are some great Kentucky First Time Home Buyer Programs so you can buy a home with little or nothing down at really low fixed rates.








I have successfully originated over 375 Kentucky first time home buyer loans, so I feel confident that I can lay the groundwork in this post of what you need to know to get pre-approved so you can start shopping for your home with confidence.

There are basically 4 mortgage programs for first time home buyers in Kentucky to consider:

1. FHA: 

Kentucky FHA loans are a popular choice in Jefferson County Kentucky first time home buyers because they allow the least down payment of 3.5%, vs Fannie Mae which now requires a 5% investment on primary residences.

The current credit score requirements center around the 580 score for most FHA loans in Kentucky, with no bankruptcies in the last 2 years and no foreclosures in the last 3 years.

Even though FHA insure a mortgage loan down to a 580 credit score or lower sometimes, it is very difficult to find a lender that will approve the loan with scores below 620. Keep that in mind.

The house payment will need to be around 30% of your gross monthly income. For example if you gross around $3000 a month, then the maximum mortgage payment you would qualify would be $1000 a month. If the loan comes back as an accept, the debt to income ratio can be substantially higher than the 31% rule.

All FHA loans are pre-approved through an AUS, an automated underwriting system upfront that will dictate your loan approval. The software underwriting engine looks at your credit, income, assets and figures your loan approval and will recommend an accept, refer/eligible, or refer/ineligible, or out of scope.

Most FHA investors will want a Accept on your underwriting findings to do a loan. It it comes back referred, then there are additional conditions or overlays that could stop your loan from being approved.

Check Kentucky FHA Rates Here----->>>>>>>>
http://mortgage-x.com/x/viewrate.asp?uid=kentuckyloan


2. VA:

Kentucky VA loans require no down payment but you must have a VA certificate of Eligibility issued by the Veterans Administration to purchase a home using your VA loan entitlement.

The current credit score that most Kentucky VA lenders want is 580. There can be no bankruptcies or foreclosures in the last two years with good reestablished credit.

The maximum debt to income ratio is 41% with a residual income of around $1000 a month after you pay all your bills. For example, if you make $4000 gross monthly, then the maximum house payment along with your other household bills would be set at $3000 a month so as you have the $1000 residual income requirement met. There are some variances on the residual income to whereas it is based on the number of people living in the household and which state you live in.


Check Kentucky VA Mortgage Rates Here------>>>>>>>


3. USDA/Rural Housing:


USDA or Rural Housing loans are not available in the more highly populated counties in Kentucky . The counties of Jefferson and Fayette Counties are not eligible for USDA loans.

USDA loans require no down payment and are subject to income and property eligibility requirements by County..


Check Kentucky USDA  Income Limits Here"----->>>>

Check Kentucky USDA Property Eligibility Limits Here--->>>>


All Kentucky Rural Housing Loans are ran through GUS, Guarantee Underwriting System, an online to determine your loan approval

The Automated Underwriting engine will come back with an Accept, Refer, or Ineligible.

Most USDA mortgage investor want an Accept on the initial underwriting approval to do the loan.

640 is the score that most USDA lenders want, but USDA will go down to a 580 credit score in their guidelines but it is very difficult to get approved.

If you have a score below 640 and trying to go USDA, work on getting your credit scores up first.

4. Kentucky Housing Corp or KHC 

KHC is used for mostly applicants in urban areas of Kentucky that don't have access to USDA or other government agencies to buy a home with no down payment.
Down Payment Assistance for Ky First Time Home Buyer, 100% Financing


Down Payment:  There are still housing programs that exist for Kentucky home buyers whereas you can purchase a home with no down payment. You will need a 620 mid credit score to purchase a home using the KHC loan programs for their no down payment credit requirements.

How the Down Payment Assistance Program (DAP) Works

A minimum of 3.5% down payment is required with this loan. Down payment assistance loans are available from $4500-$6,000, and are paid back over a period of ten years. They are typically offered to buyers with limited cash reserves and carry an interest rate of 1 to 5.5%. These loans can make a critical difference to buyers for whom the down payment is an obstacle. Buyers whose 3.5% down payment is less than the $6000 limit may choose to use the remainder of a down payment loan to pay closing costs, further reducing the amount needed to bring to closing.

Regular DAP

·     
·         Assistance in the form of a loan up to $6,000 in $100 increments.
·         Repayable over a ten-year term at 5.50 percent.  A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.
·         Available to a KHC first-mortgage loan recipients


  • First-time and repeat homebuyers statewide
  • 30-year fixed interest rate
  • Principal residence ONLY
  • Purchase Price Limit:  $294,000
  • Borrower must meet KHC's Secondary Market Income Limits

Affordable DAP

·         Purchase price up to $243,000.
·         Assistance up to $4,500.
·         Repayable over a ten-year term at 1.00 percent.
·         Borrowers must meet Affordable DAP household income limits.







•Households whose gross annual income does not exceed $40,000.
•An existing or new construction property (purchase price limit $130,000) in a county not receiving HHF DAP funds*.
•620 minimum credit score.
•FHA, VA, or RHS first mortgage options.
•Households who meet one of the following criteria:
◦At least one of the home buyers is age 62 or older.
◦At least one member of the household is disabled and receiving disability income.
◦A single-or two parent household with at least one dependent child under the age of 18 living in the household.

-- 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
text or call 502-905-3708 cell
kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/


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.
All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines


Remember, we are even available this weekend for pre-qualifications or questions.  Call our cell phone or email us.  If you miss us, leave a message and we WILL call you back

Friday, June 30, 2017

HomePath listings in Jefferson County, Kentucky 2017

 HomePath listings in Jefferson County, Kentucky 2017!

Let your clients know these properties are available. Some have special incentives! Select the property address to find out more information.

Click Link to View Property5714 JANET LEE DR
LOUISVILLE, KY 40291 

3.0 br, 1.5 ba | 947 sq. ft.
MLS ID: 1479451
$171,900

Just Listed

Click Link to View Property9800 NATIONAL TPKE
FAIRDALE, KY 40118 

3.0 br, 1.0 ba | 1117 sq. ft.
MLS ID: 1479156
$34,900

Just Listed

Click Link to View Property1228 CARRICO AVE
LOUISVILLE, KY 40215 

2.0 br, 1.0 ba | 752 sq. ft.
MLS ID: 1479166
$36,500

Just Listed

Click Link to View Property3321 MOULTON LN
LOUISVILLE, KY 40218 

3.0 br, 1.0 ba | 1444 sq. ft.
MLS ID: 1479299
$129,900

Back on Market

Click Link to View Property522 W WHITNEY AVE
LOUISVILLE, KY 40215 

2.0 br, 1.0 ba | 1320 sq. ft.
MLS ID: 1474170
$53,500

Price Reduced

Click Link to View Property2118 BOLLING AVE
LOUISVILLE, KY 40210 

5.0 br, 1.0 ba | 1580 sq. ft.
MLS ID: 1479290
INCENTIVE AVAILABLE
$37,500

Price Reduced

Click Link to View Property12005 VALLEY MEADOW WAY
LOUISVILLE, KY 40272 

3.0 br, 2.0 ba | 1638 sq. ft.
MLS ID: 1476450
$99,900

Price Reduced

Click Link to View Property711 N LAKEVIEW DR
LOUISVILLE, KY 40229 

2.0 br, 1.0 ba | 1268 sq. ft.
MLS ID: 1478355
INCENTIVE AVAILABLE
$54,900

Active

Click Link to View Property305 MERRIMAN RD
LOUISVILLE, KY 40207 

3.0 br, 2.0 ba | 2145 sq. ft.
MLS ID: 1477025
$259,900

Active

Click Link to View Property202 FLANDERS CT APT 6
LOUISVILLE, KY 40218 

2.0 br, 2.0 ba | 1005 sq. ft.
MLS ID: 1476900
INCENTIVE AVAILABLE
$69,900

Active

Click Link to View Property4125 LA SALLE AVE
LOUISVILLE, KY 40215 

2.0 br, 1.0 ba | 713 sq. ft.
MLS ID: 1476964
$44,900

Active

Click Link to View Property1323 JEANETTE AVE
LOUISVILLE, KY 40213 

6.0 br, 2.0 ba | 1328 sq. ft.
MLS ID: 1477520
$52,500

Active

Click Link to View Property2322 W LEE ST
LOUISVILLE, KY 40210 

2.0 br, 1.0 ba | 1185 sq. ft.
MLS ID: 1477666
$16,900

Active





if 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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Posted By Blogger to Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage