Tuesday, March 25, 2014

2014 Kentucky Mortgage Programs for FHA, VA, USDA, and Conventional Loan Guidelines


 There are basically four types of Kentucky mortgage loan programs;
 
  1. Kentucky FHA Loan
  2. Kentucky VA Loan
  3. Kentucky USDA Rural Housing Loan
  4. Conventional Fannie Mae or Freddie Mac Loan

Kentucky Home buyers that do their homework can choose the right Kentucky First time home buyer loans and programs for their situation.

Kentucky FHA loans are government insured loans and are the easiest to qualify for. With most lenders a credit score of 620or more along with a DTI up to 55 is a qualified borrower. This is also a good loan program if the home buyer has very little saved up for a down payment. FHA requires 3.5% down on their loan programs. The mortgage insurance premium is fairly high though. 1.75% funding fee and a 1.35% monthly mortgage insurance premium. There are maximum loan amounts which vary according to city and state.

Kentucky VA Loans are available to eligible veterans only. To find out if you are eligible, you must request a certificate of eligibility from the VA Administration. Ky VA Loans require a funding fee unless the veteran has a disability status and in that case the funding fee is waived. There is no monthly mortgage insurance with a Kentucky VA Loan. VA Loans offer 100% financing with their purchase loans. A Kentucky VA Loan generally requires a 620 middle score and up to a 29 abd 41% DTI. There are maximum loan amounts in Kentucky are set at $417,000 for 2014 .

Kentucky USDA Loans are available for homes in designated Kentucky RHS USDA eligible areas. These areas are generally considered to be rural areas that the government is encouraging more development in. These loans offer 100% financing. They generally require a 640 middle score and a 41 DTI. These loans have maximum income levels, which also determines eligibility. These loans do have a funding fee as well as a monthly mortgage insurance of 0.40%

Kentucky Conventional Loans generally require a 5% down payment minimum. However, if a home buyer puts 20% or more down on the house, there will be no monthly mortgage insurance. There is no upfront funding fee on these loans. Usually a 640+ middle score and a 43 DTI, is needed for qualification. The higher the credit score the better the interest rate and the lower the mortgage insurance premium will be.


Joel Lobb
Senior  Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 

 Company ID #1364 | MB73346
 
 
http://mylouisvillekentuckymortgage.com