Saturday, April 22, 2017

Kentucky First Time Home Buyer Programs for 2017








Kentucky First Time Home Buyer Programs for 2017


There are basically 5 popular 2017  Kentucky Home Buyer programs that Kentucky Home buyers use to purchase their first home.





At least 3%-5% down

Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home.

Conventional loans require 4-7 years removed from Bankruptcy and foreclosure. 

Max Conventional loan limits are set at $424,00 for 2017 in Kentucky 



If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.

Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.

They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income. 

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in an rural area.

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern  Kentucky .

There is a map link below to see the qualifying areas.

There is also a max household income limits with most cutoff starting at $76,000 for a family of four, and up to $98,000 for a family of five or more.

USDA requires 3 years removed from bankruptcy and foreclosure. 

There is no max USDA loan limit.


FHa loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score. 

The current mortgage insurance requirements are kinda steep when compared to USDA, VA , but the rates are usually good so it can counteracts the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don't worry too much about the mi premiums.

THe mi premiums are for life of loan like USDA.

FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure. 

Maximum FHA loan limits in Kentucky are set around $285,000 and below. 


VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have an funding fee like USDA, but it is higher starting at 2% for first time use, and 3% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront outof pocket. 

VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and the max loan is $417,000 in Kentucky 

Most VA lenders I work with will want a 620 credit score. 

VA requires 2 years removed from bankruptcy or foreclosure. 




This type of loan is administered  by KHC in the state of Kentucky. They typically have $4500 to $6000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.



Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.

KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 640 for all programs. The conventional loan requirements at KHC requires 680 credit score. 

The max debt to income ratios are set at 40% an 45% respectively. 









KHC Hardest Hit Funds Just announced for Louisville Kentucky 2017!
This specific program is for new loan reservation on or after January 11, 2017. KY Housing has $4 Million Dollars set aside for this program and is utilized on a first-come, first-served basis.

  • The funds are for eligible first time home buyers or for those who have not owned a home in the previous 3 years
  • The program is a 2nd mortgage down payment assistance loan up to $10,000, 0% interest rate, forgivable second mortgage loan with a five-year term
  • There is no monthly payment on the down payment assistance loan and 1/5th of the loan is forgiven for 5 years and at that point the loan is fully forgiven
  • The property must remain as your primary residence for those 5 years
  • The down payment assistance loan can be used to cover your closing costs and down payment
  • Max purchase price $283,900
  • Max income for person or persons on the loan in Jefferson County is $117,250
  • The down payment assistance loan must be used in conjunction with KY Housing first mortgage program (conventional or FHA)
  • Minimum 640 credit score to be eligible but we can generally provide advice how to improve your score to that level if needed
  • The property (new or existing) must be located in one of these four counties:
    • Jefferson
    • Christian
    • Hardin
    • Kenton
    • Other counties are not eligible for this specific program but there is a down payment assistance loan for other counties







Joel Lobb
Senior  Loan Officer
(NMLS#57916)


text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
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). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.









Wednesday, April 19, 2017

Kentucky First time Homebuyer Programs for 2017


 Kentucky First time Homebuyer Programs for 2017

A Few Basic Guidelines for Kentucky Housing Corporation’s

First and Second Mortgage Programs


In order to get you pre-approved, I will need the following items from you and fiancee. This is a free process and I will give you a copy of your credit report for free

 Mortgage Pre-Approval Checklist

1.  One full month’s or 30 days worth of pay stubs
2.  Last 2 years W-2′s
3.  Last 3 years tax returns
4.  Last two months bank statements for all accounts including 401 k or retirement account if you have one.  

_______________________________________________


I don't need originals, copies are fine. You can fax or email me the above documents or meet me face-to-face if you wish.

Let me know your questions.

Thanks and look forward to helping you. 













-- 








KHC’s First Mortgage Loan Programs


For over 40 years, Kentucky Housing Corporation has helped over 82,000 eligible individuals and families become homeowners.  Kentucky Housing’s home loans typically offer a lower interest rate and are available through approved lenders who are financial institutions across the state that have been approved to offer Kentucky Housing loans.


Mortgage Revenue Bond (MRB) First Mortgage Loan Program

·         First mortgage loan fixed for 30 years
·         KHC’s MRB household income limitations apply
·         New and existing homes up to a purchase price of $283,000 are eligible
·         First mortgage loan types:  Conventional (Minimum credit score of 680 or better)
·         FHA, VA and RHS (Minimum credit score of 640)
·         First-time homebuyer or repeat homeowner eligible (if property is located in a Targeted County)

Secondary Market First Mortgage Loan Program

·         First mortgage loan fixed for 30 years
·         KHC’s Secondary Market applicant(s) income limitations apply
·         New and existing homes up to a purchase price of $283,000 are eligible
·         First mortgage loan types:  FHA, VA and RHS (Minimum credit score of 640)
·         Two Refinance options:  FHA Credit Qualifying Streamline Refinance or FHA Rate/Term Refinance
·         First time and Repeat Homebuyers eligible in all counties


KHC’s Second Mortgage Down Payment Assistance Programs (DAP)

Home buyers must be purchasing a home with a Kentucky Housing MRB or Secondary Market first mortgage loan.

Kentucky Housing has programs to help home buyers with down payment and loan closing costs (credit report, origination fees, appraisal, etc.)  To receive this assistance, home buyers must have stable incomes and acceptable credit, but little money on hand to pay for such expenses.  These funds are available on a first-come first-served basis.

Qualification

During the loan application process with a Kentucky Housing-Approved Lender, the lender will determine the amount of funds needed to close on the first mortgage loan and the amount of funds the home buyer has available to apply to these costs.  A home buyer without sufficient funds may apply for one of KHC’s second mortgage down payment assistance programs (DAP).




http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu



Mortgage Credit Certificate (MCC) Program

Mortgage Credit Certificate (MCC) allows homebuyers to convert 25% of their annual mortgage interest deduction to a “Life of Loan” tax credit (not to exceed $2,000 each year).  Homebuyers must meet MRB guidelines, such as income, purchase price and must be a first-time homebuyer unless the home is in a targeted county.  MCCs may be used with KHC’s first mortgage Secondary Market Program, but cannot be used with KHC’s first mortgage MRB program.  The cost is $500 however, if the borrower obtains a KHC Secondary Market Program, the cost is reduced to $200.




Homeownership Education, Counseling and UBP Programs



Homeownership Education


Tired of renting?  Want to own a home?

If you have worked for years and are still renting, and if you have always wanted to buy a home but thought you couldn’t afford one, the Yes You Can…Own a Home Program is for you.

The Yes You Can…Own a Home classes will teach you what you need to know to become a homeowner.  A local volunteer professional will walk you through each step of the home buying process, from budgeting to loan closing.  You will learn how much you can afford to pay for a home, how to shop for an affordable mortgage, what the sales contract and loan application mean and even some basic home maintenance tips.

Yes You Can…Own a Home is sponsored by Kentucky Housing Corporation and local lenders.

The Yes You Can…Own a Home Program offers FREE CLASSES.  Learn more about:

·         Budget and Credit
·         Saving
·         Mortgage Loan Process
·         Finding the Right House
·         Basic Home Maintenance
·         Loan Closing
·         Foreclosure Prevention
·         Predatory Lending

Homeownership Counseling

Denied a home loan?  Is your credit the problem?

If your Kentucky Housing Corporation home loan application was denied because of your credit history, Kentucky Housing’s Homeownership Counseling Program may be able to help you.

A local Kentucky Housing-qualified homeownership counselor will help you through the home buying process, one step at a time.  Kentucky Housing also has financial counselors on staff who can work with you if one is not available in your area.

Homeownership counseling will help you understand the home loan process, estimate your loan payment, determine what you can afford to spend on a home, develop a budget, save for unexpected expenses, address your credit problems, understand how your credit affects a home loan, select the type of homeowner’s insurance you need and meet the ongoing financial obligations of homeownership.

Counseling is available to:
  • Individuals who have been denied Kentucky Housing loans
  • Yes You Can…Own a Home graduates
  • Family Self-Sufficiency participants
  • Housing Choice Voucher to Homeownership participants
  • Budget and Credit class graduates
  • Victims of predatory lending


For more information about KHC’s Homeownership Education and Counseling Programs, call (800) 633-8896, extension 775 or go to our Web site, www.kyhousing.org

Unemployment Bridge Loan Program (UBP)

If you have experienced a job loss or reduction in income due to changing economic conditions, through no fault of your own, since January 1, 2009, Kentucky’s Unemployment Bridge (Loan) Program may be able to help. 
The Kentucky Unemployment Bridge Program (UBP) is a new loan option for eligible homeowners to assist you in making your mortgage payments.  The maximum amount of assistance is $30,000 or 18 months, whichever occurs first.  Of the $30,000, the maximum amount that may be used for reinstatement – all related fees and payments to bring your loan(s) current – is $12,500.












KENTUCKY HOUSING CORPORATION MRB and
HOMEBUYER TAX CREDIT
GROSS ANNUAL HOUSEHOLD INCOME LIMITS
Effective February 21, 2012
The income limitations listed below are imposed by federal law.
Failure to comply with them may create adverse consequences for Kentucky Housing Corporation and its bondholders.
Funding Source:  New Bond Funds (Purchase Price Limit – $243,000)

Person(s) per household

 (1 or 2)

 (3 or more)


Person(s) per household

 (1 or 2)

 (3 or more)
Anderson
67,369
77,475

Kenton
83,400
97,300
Ballard
64,320
75,040

Larue
68,520
79,940
Barren
58,200
67,900

Laurel
53,000
60,950
Boone
83,400
97,300
Livingston
61,440
71,680
Bourbon
80,520
93,940
Lyon
62,040
72,380
Boyd
58,200
67,900
Madison
66,720
77,840
Bracken
85,560
99,820
Marion
61,080
71,260
Bullitt
74,160
86,520
Marshall
67,560
78,820
Caldwell
54,840
63,980
McCracken
64,920
75,740
Calloway
62,040
72,380
McLean
68,760
80,220
Campbell
83,400
97,300
Meade
62,280
72,660
Christian
63,000
73,500

Mercer

66,960

78,120

Clark
80,520
93,940
Muhlenberg
53,000
60,950
Daviess
67,320
78,540
Nelson

68,880



80,360

Edmonson
68,880
80,360
Oldham
74,160
86,520
Fayette
67,229
77,314
Owen

66,480

77,560
Franklin
67,189
77,268
Pendleton
85,560

99,820

Gallatin
85,560
99,820
Robertson
60,840
70,980
Graves
58,440
68,180
Scott

80,520

93,940
Greenup
58,200
67,900
Shelby
75,770
87,135
Hancock
67,320
78,540
Simpson
66,120
77,140
Hardin
66,720
77,840
Spencer
76,560
89,320
Harrison
63,840
74,480
Taylor
53,000
61,740
Henderson

68,049


78,257

Trigg
63,000
73,500
Henry
   
76,560


89,320


Trimble
76,560

89,320

Hickman

63,480


74,060

Union
66,960
78,120
Jefferson
74,160
86,520
Warren
64,560
75,320
Jessamine
67,229
77,314
Webster

76,560

89,320



Woodford
67,229
77,314

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu



KENTUCKY HOUSING CORPORATION
SECONDARY MARKET
GROSS ANNUAL INCOME LIMITATIONS
Effective February 21, 2012
Income Limit for the following counties
$92,750
Adair, Allen, Ballard, Barren, Bath, Bell, Boyd, Boyle, Breathitt, Breckinridge, Butler, Caldwell, Calloway, Carlisle, Carroll, Carter, Casey, Clay, Clinton, Crittenden, Cumberland, Elliott, Estill, Fleming, Floyd, Fulton, Garrard, Grant, Graves, Grayson, Green, Greenup, Harlan, Hart, Hopkins, Jackson, Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie, Letcher, Lewis, Lincoln, Livingston, Logan, Lyon, Magoffin, Marshall, Martin, Mason, McCreary, Meade, Menifee, Metcalfe, Monroe, Montgomery, Morgan, Muhlenberg, Nicholas, Ohio, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Rowan, Russell, Simpson, Taylor, Todd, Washington, Wayne, Whitley, Wolfe
Secondary Market Purchase Price Limit -- $243,000
Income Limits
Income Limits
Anderson
112,350
Kenton
124,775
Boone
124,775
Larue
99,925
Bourbon
117,425
Madison
97,300
Bracken
124,775
Marion
95,900
Bullitt
111,650
McCracken
100,275
Calloway
97,300
Mclean
100,275
Campbell
124,775
Mercer
98,000
Christian
94,850
Nelson
100,450
Clark
117,425
Oldham
111,650
Daviess
100,275
Owen
96,950
Edmonson
100,450
Pendleton
124,775
Fayette
117,425
Robertson
94,150
Franklin
116,900
Scott
117,425
Gallatin
124,775
Shelby
124,425
Hancock
100,275
Spencer
111,650
Hardin
99,925
Trigg
94,850
Harrison
93,100
Trimble
111,650
Henderson
111,650
Union
96,250
Henry
111,650
Warren
100,450
Hickman
93,625
Webster
111,650
Jefferson
111,650
Woodford
117,425
Jessamine
117,425


The income limitations listed above are imposed by state law.

Kentucky First time Homebuyer Programs for 2014


GROSS ANNUAL HOUSEHOLD INCOME LIMITS
FOR HOME DAP
Effective February 21, 2012











Purchase Price Limit for HOME DAP – $195,700


















Person(s)
(1)
(2)
(3)
(4 or more)
Adair, Bath, Bell, Breathitt, Carter, Casey, Clay, Clinton, Cumberland, Elliott, Estill, Floyd, Fulton, Harlan, Hart, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Leslie, Letcher, Lewis,  Magoffin, Martin, McCreary, Menifee, Metcalfe, Monroe, Morgan, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Russell, Wayne, Whitley, and Wolfe
24,450
27,950
31,450
34,900











Bullitt, Henderson, Henry, Jefferson, Oldham, Spencer, Trimble and Webster
35,750
40,850
45,950
51,050











Bourbon, Clark, Fayette, Jessamine, Scott, and Woodford
37,600
43,000
48,350
53,700











Boone, Bracken, Campbell, Gallatin, Kenton, and Pendleton
39,950
45,650
51,350
57,050











Other Counties
Person(s)
(1)
(2)
(3)
(4 or more)

Person(s)
(1)
(2)
(3)
(4 or more)
Allen
26,150
29,850
33,600
37,300

Larue
32,000
36,600
41,150
45,700
Anderson
35,950
41,100
46,250
51,350

Laurel
25,850
29,550
33,250
36,900
Ballard
28,200
32,200
36,250
40,250

Lincoln
24,600
28,100
31,600
35,100
Barren
27,950
31,950
35,950
39,900

Livingston
27,900
31,900
35,900
39,850
Boyd
28,200
32,200
36,250
40,250

Logan
28,700
32,800
36,900
40,950
Boyle
29,350
33,550
37,750
41,900

Lyon
27,400
31,300
35,200
39,100
Breckinridge
27,100
31,000
34,850
38,700

Madison
31,150
35,600
40,050
44,500
Butler
24,850
28,400
31,950
35,500

Marion
28,500
32,550
36,600
40,650
Caldwell
28,150
32,150
36,150
40,150

Marshall
29,350
33,550
37,750
41,900
Calloway
31,150
35,600
40,050
44,500

Mason
26,700
30,500
34,300
38,100
Carlisle
24,750
28,250
31,800
35,300

McCracken
32,100
36,700
41,300
45,850
Carroll
28,850
33,000
37,100
41,200

McLean
32,100
36,700
41,300
45,850
Christian
30,350
34,700
39,050
43,350

Meade
28,600
32,650
36,750
40,800
Crittenden
27,400
31,300
35,200
39,100

Mercer
31,400
35,850
40,350
44,800
Daviess
32,100
36,700
41,300
45,850

Montgomery
29,050
33,200
37,350
41,500
Edmonson
32,150
36,750
41,350
45,900

Muhlenberg
25,150
28,750
32,350
35,900
Fleming
26,050
29,800
33,500
37,200

Nelson
32,150
36,750
41,350
45,900
Franklin
37,450
42,800
48,150
53,450

Nicholas
24,850
28,400
31,950
35,500
Garrard
27,650
31,600
35,550
39,450

Ohio
25,450
29,050
32,700
36,300
Grant
30,050
34,350
38,650
42,900

Owen
31,050
35,450
39,900
44,300
Graves
26,550
30,350
34,150
37,900

Robertson
28,350
32,400
36,450
40,500
Grayson
25,100
28,700
32,300
35,850

Rowan
25,200
28,800
32,400
36,000
Green
26,250
30,000
33,750
37,450

Shelby
39,850
45,550
51,250
56,900
Greenup
28,200
32,200
36,250
40,250

Simpson
28,950
33,050
37,200
41,300
Hancock
32,100
36,700
41,300
45,850

Taylor
25,900
29,600
33,300
36,950
Hardin
32,000
36,600
41,150
45,700

Todd
27,100
31,000
34,850
38,700
Harrison
29,800
34,050
38,300
42,550

Trigg
30,350
34,700
39,050
43,350
Hickman
29,650
33,850
38,100
42,300

Union
30,800
35,200
39,600
44,000
Hopkins
29,050
33,200
37,350
41,450

Warren
32,150
36,750
41,350
45,900






Washington
28,600
32,650
36,750
40,800