Tuesday, July 10, 2018

Kentucky First Time Home Buyer Loans That Don't Require a Downpayment


Kentucky First Time Home Buyer Loans That Don't Require a Downpayment.



See list of programs below

Kentucky VA Loans

Kentucky VA and USDA loans are available government-backed mortgage options and are two of the best loan products available for Kentucky Homebuyers that don't have a down payment saved-up. Both offer low fixed rates, require 0% down payment, low mortgage insurance requirements upfront and monthly and are available home buyers with credit scores starting at 580 and above. Most lenders will want a 620 credit score to do a no money down loan in Kentucky, so keep that in mind with lender overlays. 
Kentucky VA Home Loans are offered through Veterans Affairs, and the loan product is only available to eligible veterans and their spouses. With no monthly mortgage insurance (PMI), VA is one of the best loans out there because it allows buyers to save money up front with $0 down, save money long term with a low monthly payment, and even allows for a seller to cover closing costs (up to 4% of the purchase price of the home).


More detailed guidelines here at the link below for Kentucky VA Qualifying Guidelines 

http://www.mylouisvillekentuckymortgage.com/p/va-loans.html

Kentucky USDA Loan 

USDA is a loan focused on helping low-to-moderate income buyers purchase homes in rural areas throughout the US.  The program does have both income and geographical restrictions but is available throughout most of the US.  Like VA, the USDA loan program offers $0 down and very competitive interest rates for anyone with average or better credit.
​  A 640 credit score is usually required for an automated pre-approval through their online underwriting system called GUS. However, some lenders will go down to 620 with a good verifiable rental history and good stalbe 2 year work history with debt to income ratios under 29% and 41% and two established tradelines reporting for 12 months with good pay history see link below for more thorough guidelines. 


If comparing USDA and VA loans, VA is a slightly better loan because USDA does have monthly PMI that is attached to the mortgage for the life of the loan. However, Kentucky USDA loans are still an excellent option for some buyers if you are not a veteran and buying in a rural area of Kentucky. 
See list of Eligible areas below for USDA mortgage loans in Kentucky :

Income Limits are usually limited to $82k for a household family of 4 and up to $109k for a house family of five or more. 


Kentucky FHA Mortgages

An FHA Mortgage is a government-insured mortgage loan and is one of the most popular options for first-time home buyers.  Allowing buyers to purchase with as little as 3.5% down, FHA offers great rates on fixed and adjustable rate products and has a competitive PMI premium.  With an FHA loan, a seller can contribute up to 6% of a purchase price to help with buyer closing costs, making the total buyer investment minimal. Minimum credit scores with most FHA lenders I work with are 580, but if you have access to down payment, 10% down on paper is allowed on credit scores from 500 to 579. Most lenders will not accept this though, so it's probably best to work on raising your scores. 
There are no income or area restrictions on FHA loans,  like USDA has, with the max FHA loan limits being around $300k in most Kentucky Counties. 

See link below for more thorough Kentucky FHA qualifying guidelines 

https://kentuckyfhaloan.wordpress.com/2016/12/31/kentucky-fha-loan-requirements-for-2017/

Down Payment Assistance Loans & Products for Kentucky Home Buyers  (DPAs)





Federal Housing Administration (FHA)



•Minimum 620 credit score required.
•Financing to 96.50% of lesser of sales price or appraised value.
•All KHC DAPs and other KHC-approved secondary financing may be used.
•Maximum 6% seller-paid items.
•Maximum ratios of 40/45 with AUS approval.
•FHA’s Appraiser Independence rules apply. (see page 4)
•All borrowers must be scored by TOTAL and receive approve/eligible or accept/accept.
•Lender must follow the FHA maximum mortgage limits for particular area – see
Upfront and Annual Mortgage Insurance Premiums
30-Year Loan Term
LTV less than or equal to 95% 1.75% annual 1.20 monthly
LTV greater than 95% 1.75% annual 1.25 monthly

Conventional

• Minimum 660 credit score required
• Maximum loan-to-value (LTV) ratio is 80%.
• Maximum ratios 40/45 with AUS approval.
• No down payment assistance products may be used. Borrower must meet down payment requirements with their own
funds or a gift.
• Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as
subordinate financing in DU/LP.
• Pre-purchase education required as per AUS findings.
• Not available for manufactured housing.
• Appraiser Independence required (see page 4).
• KHC does not presently have a product for 81% LTV or greater.

Rural Housing Services (RHS)
 Minimum 620 credit score required.
• Financing to 100% of the appraised value, plus guarantee fee of 2.0%/0.3% annual fee.
• All KHC DAP programs and other KHC-approved secondary financing may be used.
• No maximum on seller-paid items.
• Ratio requirements and guarantee fee per agency guidelines.
• KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with
approval, expanded ratios up to 40/45.

Veteran’s Administration (VA)

•Minimum 620 credit score required.
•Financing to 100% of the lesser of the appraised value or sale price.
•All KHC DAP programs and other KHC-approved secondary financing may be used.
•Maximum 4% seller-paid items.
•Ratio requirements and funding fee per agency guidelines
Maximum ratios of 40/45% with AUS Approval


Only Homebuyers obtaining a KHC first mortgage are eligible for DAP. All DAPS take a lien
position & require input into LP/DU as subordinate financing. DAP funds can never be used to
pay for repairs. Once you have determined the loan type it’s time to see which of the two KHC
Down payment assistance programs your borrower is eligible for. Follow the easy steps
below….

1. Check to see the household income falls under the Affordable DAP Income Limits:

If yes then the borrower qualifies for the Affordable DAP up to $4,500. Affordable DAP
is amortized over 10 years at 1%. Must go to maximum LTV allowed on first mortgage
amount. Borrower must qualify with second mortgage payment. If no, then proceed to
Regular DAP.

2. Check to see if the applicant(s) income falls under the Secondary Market Income Limits.

If yes the borrower is eligible for Regular DAP up to $6,000 in $100.00 increments with
a minimum $500.00 loan amount. Regular DAP is amortized over 10 years at 5.50%.
Must go to maximum LTV allowed on first mortgage amount. Borrower must qualify with
second mortgage payment.





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.