Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: 2023 Kentucky Rural Housing Guideline Changes

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: 2023 Kentucky Rural Housing Guideline Changes: Kentucky USDA Rural Housing Guidelines What’s Changing for 2023? • Delinquent Child Support o A clarification was added to include presently...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Guidelines for Credit, Child Support...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Guidelines for Credit, Child Support...: Kentucky USDA Guidelines for Child Support, Bankruptcy, Judgements, Bad Credit, Condos

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...: 2022 Kentucky USDA Loan Income Limits for Kentucky Counties  Kentucky USDA loan income limits vary by location and household size wit...

Kentucky Rural Housing USDA Loan Program for 2022 ust recently increased their income limits Families of 4 or less people can now have a maximum annual income of $103,500 (used to be $90,000) in most counties and 5 or more people in the household income can now be a maximum of $136,600

What does that mean? It means if before you were told you make too much to qualify for a Kentucky USDA loan, you might qualify now

Fannie Mae recently announced they are making changes to their Credit Score Eligibility criteria

 

Conventional Loan News Fannie Mae recently announced they are making changes to their Credit Score Eligibility criteria in order to increase homeownership opportunities for underserved borrowers. As a result of this change, Fannie Mae will now allow a credit score average to be used on loans with more than one borrower.  In the past, the minimum credit score for all borrowers on a Fannie Mae Conventional loan was 620. While this 620 minimum still applies for loans with one borrower, an average can be used on loans with 2 or more borrowers. Borrowers with scores down to 580 are eligible as long as the average score on the loan is 620 or higher.  As an example, if Borrower 1 has a credit score of 619 and Borrower 2 has a credit score of 693, the representative credit score would be 656 and this loan would be eligible.  This is GREAT NEWS for Kentucky homebuyers.

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Home Loan Requirements

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Home Loan Requirements: Kentucky USDA Home Loan Requirements With flexible requirements, USDA loans feature: 100% financing + required guarantee fee = 102% of the a...

Kentucky USDA Home Loan Requirements

With flexible requirements, USDA loans feature:

• 100% financing + required guarantee fee = 102% of the appraised value
• No minimum score but most lenders want a 620 or above, or 640 sometimes
• 30 year fixed rates
• Closing costs can be added into the loan if home appraises more than purchase price
• No max loan limits, only household max income requirements based on location 
• Property must be in rural housing area
• No used mobile homes
• Property must not be incoming producing
• 3 years from Chapter 7 bankruptcy and 1 year In Chapter 13 possible
• 3 years removed from Foreclosure
• Debt to income ratio requirements based on GUS Automated Underwriting Findings
• 
  

USDA Loan Eligibility

Eligibility is based on the property size, location and condition along with income and other qualifying factors. Some of these requirements include:

• Property must be located in a USDA designated rural area
• Maximum loan limits vary based on location
• Household members can have a total income of up to 115% of the medial income for the area
• Household must be able to afford the mortgage payment, including property taxes, homeowners insurance and the annual guarantee fee payable on a monthly basis

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: 4 Things Required for a KY Mortgage Loan Approval

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: 4 Things Required for a KY Mortgage Loan Approval: Understanding  Mortgage mortgage underwriting guidelines   Now that you have found your dream house, you are going to need to apply for

 a...

Kentucky USDA Rural Housing Streamline Refinance Guidelines and Rates

How does a Kentucky USDA streamline ​mortgage ​refinance​ ​work?




​Streamline means you don't have to do a lot of things usually required for a regular mortgage transaction, and is is faster than with most types of refinances. You usually don't need to get an appraisal, and in some cases, you don't even need to show your credit score or debt-to-income ratio​, income documents, like paystubs, bank statements, tax returns etc. ​




​You have two options in regards to a streamline refinance: your USDA refinance, you have two options: a USDA streamline refinance and USDA streamlined assist refinance.


They are both tools for refinancing from one USDA mortgage into a new one, and in most cases, neither requires an appraisal. But there are some key differences between the two.


You can do either type of refinance if you have a USDA direct loan (one straight from the USDA) or a USDA guaranteed loan (one you got from a private lender that's backed by the USDA).



You shouldn't need to get a new appraisal with either refinance, unless you have a direct loan and have collected a payment subsidy.


With a USDA streamline refinance, you need to show the lender your credit score and debt-to-income ratio to qualify. You can add or remove someone's name on the mortgage.


A USDA streamlined assist refinance does not require you to show your credit score or DTI ratio. You can add someone's name to the mortgage, but you can only remove a name if the person has died.


Your choice between the two will come down to your situation. For example, you might prefer a USDA streamline refinance if your credit score has improved since you got your initial mortgage, because a better score can land you a lower interest rate.


As these two types of refinances work a little differently, each one has its own rules about who is eligible.

How to qualify​ for a Kentucky ​USDA streamline refinance


You should already have a USDA mortgage, either a direct or guaranteed loan. You can't use a USDA streamline refinance to refinance from another type of mortgage into a USDA loan​ like FHA, VA, Conventional. ​


Current on payments. You must have made all mortgage payments on time for at least the last 180 days.


Time restraints. A minimum 12 months should have passed since you closed on your original USDA mortgage.


Credit score and debt-to-income ratio. You must show your credit score and DTI ratio. ForFor a USDA mortgage, you'll likely need a 640 score and DTI ratio of 41% or lower.

No cash out. You can't use a USDA streamline refinance to receive cash. Unlike other types of mortgages, USDA loans don't have a cash-out refinance option.

USDA streamlined assist refinance


Have a USDA mortgage. You should already have a USDA direct or guaranteed loan. A USDA streamlined assist refinance won't refinance another type of mortgage into a USDA loan.

Current on payments.

You need to have made all mortgage payments on time for at least the last 12 months.

Tangible financial benefit. The USDA requires a streamlined assist refinance to put you in a better financial position than your initial mortgage. Your principal, interest, taxes, and insurance payments must be at least $50 less per month

No cash out. You can't refinance to receive cash. Unlike other types of mortgages, the USDA doesn't have a cash-out refinance option.



You must have a current USDA mortgage loan to streamline refinance to a new USDA mortgage loan in Kentucky.




Joel Lobb
Senior Loan Officer
(NMLS#57916)


Text or call phone: (502) 905-3708


email me at kentuckyloan@gmail.com



http://www.mylouisvillekentuckymortgage.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 views of my employer. Not all products or services mentioned on this site may fit all people

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Mortgage Loan Qualifying Guidelines

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Mortgage Loan Qualifying Guidelines

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...: 2020 Kentucky USDA Loan Income Limits for Kentucky Counties  Kentucky USDA loan income limits vary by location and household size wi...





The base USDA income limits are for most Kentucky counties below: 

New Income limits for most counties (*) in Kentucky are $90,300 for a household family of four and household families of five or more  can make up to  $119,200.

With the new changes for 2020 USDA Income limits, the Jefferson County Louisville, KY Metro area (**) saw an increase of $90,300 for a family of four and up to $119,200 for a family of five or more. The metro area surrounding counties of Jefferson County includes Oldham, Bullitt, Spencer are included in these higher income limits for USDA loans.

Remember,  the entire  Jefferson County and Fayette County  Kentucky counties are not eligible for USDA loans. Along with parts of the following counties Daviess (Owensboro), Mccracken (Paducah), Madison County, (Richmond), Clark County (Winchester), Warren (Bowling Green), Hardin (Fort Knox and Radcliff), Bullitt(Hillview, Maryville, Zoneton, Fairdale, Brooks), Franklin, (Frankfort), Henderson (Henderson City Limits), Christian County (Hopkinsville, Fort Campbell), Boyd County (Ashland city limits) and the most Northern Parts of Boone, Kenton, Campbell Counties of Northern Kentucky (Covington, Florence, Richwood, Hebron, Ludlow, Fort Thomas, Bellevue, Ryle, Beechwood, ) 

The Northern Kentucky Counties (***) of Boon, Kenton, Campbell, Brackenn, Gallatin, and Pendleton are $99,250 for a household of four or less and up to $131,000 for a family of five or more.

USDA Eligible Areas in Northern Kentucky
Burlington
Hebron
Independence
Walton
Alexandria
Highland Heights
Cold Springs
Grant County
Owen County
Pendleton County
​

USDA Income Limits
Boone, Kenton & Campbell Counties (N. KY)
​
$99,250  (family size 1-4)
$131,000 (family size 5 or more)
​

Grant, Owen & Pendleton Counties (N. KY)
​
$90,300 (family size 1-4)
$119,250 (family size 5 or more)



Most are familiar with USDA Rural Housing Loan Program  being a great no money down program available and it is not just for Kentucky first time buyers.

Kentucky Rural Housing USDA Credit and Income Guidelines

• No Down Payment required, 100% financing available
• 30 year fixed rate only no other terms allowed.
• Not limited to First Time Home buyers! Also available for the move up home buyer.
• More affordable than FHA when compared to mortgage insurance
• Seller concession fees at 6%
• No Bankruptcies last 3 years or foreclosures last 3 years
• Typical max income household income limits are centered on how many people are going to live in the home and which county you are going to buy a home in. Most Counties in Kentucky are maxed at $87k for a household of four or less, and up to $115k for a household of five or more. 
• Debt to income ratios are usually centered around 45% on the back-end ratio, meaning the new house payment plus the monthly bills on the credit report cannot be more than 45% of our total gross qualifying income. 
• There is also a front end ratio, which is the new house payment only divided by the gross monthly income. This can vary anywhere between 20% to 35% I have seen on some borrowers depending on your credit scores and assets. 
• If you have access to 20% down payment, you cannot use the USDA loan program.
• Only new manufactured homes are allowed for USDA loans and the dealer must be approved contractor with USDA 
• Swimming pools are okay for USDA loans on appraisals.
• Working farms are not allowed with USDA loan, but there is no acreage limits on 
• USDA loans. 

• Guarantee Fee applies. May be financed and added to the loan amount
• Flexible credit guidelines and 620 FICO***Even though USDA states in the guidelines that they will go down to a 581, most lenders will not go below 620 to 640 score range  that I work with. 
• Manual underwrites, meaning if you get a refer through the Automated system their is chance you can still get approved. 
• Ratios per GUS Approval--GUS stands for their Automated Underwriting System which lenders use to get borrowers pre-approved. It will review credit, income, and assets along with area, purchase prince amount and determine your loan pre-approval
• Flipped properties within 90 days of seller acquisition are allowed
• Household income may not exceed 115% of the area's median income level*
• Transferred appraisals are okay, so FHA will work for USDA appraisals.
• 
  

Kentucky First Time Home Buyer Requirements for Fannie Mae, VA, FHA and USDA Loans.

. Income

You need income. You need to be able to afford the home.  But what is acceptable income? Let’s just say that there are two ratios mortgage underwriters look at to qualify you for mortgage payment:

First Ratio – The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe.

Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards, student loans, personal loans, child support, alimony….basically any consistent outgoing debt that you’re paying on. Again, if you’re paying less than 45% of your gross monthly income to all of the debts, plus your proposed housing payment, then……generally, you’re safe. You can go a lot higher in this area, but there are a lot of caveats when increasing your back ratio.

What qualifies as income? Basically, it’s income that has at least a proven, two year history of being received and pretty high assurances that the income is likely to continue for at least three years. What’s not acceptable? Unverifiable cash income, short term income and income that’s not likely to continue like unemployment income, student loan aid,  VA education benefits, or short term disability are not allowed for a  mortgage loan.

2. Assets

What the mortgage underwriter is looking for here is how much can you put down and secondly, how much will you have in reserves after the loan is made to help offset any financial emergencies in the future.

Do you have enough assets to put the money forth to qualify for the down payment that the particular program asks for. The only 100% financing or no money down loans still available in Kentucky for  home buyers are available through USDA, VA, and KHC or Kentucky Housing Loans. Most other home buyers that don’t qualify for the no money down home loans mentioned above, will turn to the FHA program. FHA loans currently requires a 3.5% down payment.

Kentucky Home buyers that have access to putting down at least 5% or more, will usually  turn to Fannie Mae or Freddie Mac mortgage programs  so they can get better pricing when it comes to mortgage insurance.

These assets need to be validated through bank accounts, 401k or retirements account and sometimes gifts from relatives or employer.. Can you borrower the down payment? Sometimes. Generally if you’re borrowing a secured loan against a secured asset you can use that. But rarely can cash be used as an asset. FHA will allow for gifts from relatives  for down payments with little as 3.5% down but Fannie Mae will require a 20% down payment when a gift is being used for the down payment on the home.

3. Credit Scores

• Kentucky FHA Mortgage loan credit score requirements:
•  
• The minimum credit score is 500 for Kentucky FHA loans. However please keep in mind these two things: 1. Lenders credit their own overlays to increase the credit score threshold, most being 620, and secondly, if your credit score is below 580, you would need 10% minimum down payment,  and if the credit score is over 580, then you can go with the minimum 3.5% down payment.
• Obviously if you have a higher credit score, this will increase your chances of getting approved for a Kentucky FHA Mortgage and possibly better rates and closing costs options.

 

• Kentucky VA Mortgage  loans requirements : 
•  
• VA does not have a minimum credit score requirement, but if the credit score is below 620 few lenders will do the loan, but I am set up with several Kentucky VA lenders where I have closed them down to a 560 credit score, but the borrower had good compensating factors such as: large down payment, low dti ratios, good job history and good residual income with no previous bankruptcies or foreclosures.
• I would suggest if your credit scores are below 580, I would suggest on working on getting the scores up before you applied for a VA mortgage loan.
• A lot of lenders will do a rapid rescore which in some cases can increase your credit scores in as little  as 7-10 working days.
• The federal Department of Veterans Affairs (VA) guarantees loans for current and former members of the military and their families. VA loans provide very favorable terms to eligible borrowers and have limited qualifying requirements. You can get a VA loan with no down payment so long as the home isn’t worth more than you pay for it, and there’s no minimum credit score to qualify. You also don’t have to pay for mortgage insurance, although you do have to pay an up-front funding fee of of between .5% and 3.3% of the loan amount unless you fall within an exception for disabled vets or military widows or widowers.
•  
• Kentucky USDA Mortgage credit score requirements: 
•  
• According to their guidelines, USDA will go down to a 580 credit score, but most lenders will want a 640 credit score. USDA uses an online system to underwrite the risk of the loan, and scores under 640 are very difficult to get approved.
•  
• Validating the Credit Score.  Two or more eligible tradelines are necessary to validate an applicant’s credit report score.  Eligible tradelines consist of credit accounts (revolving, installment etc.) with at least 12 months of repayment history reported on the credit report.  At least one applicant whose income or assets are used for qualification must have a valid credit report score
• The Rural Housing Service (RHS) operates under the federal Department of Agriculture to guarantee loans for rural home-buyers with limited income who can’t obtain conventional financing. The upside is that Kentucky USDA loans require no down payment. The downside is that they charge a steep up-front fee of 1% of the loan amount (which can be paid off over the entire loan term) and an annual fee of 0.35%.

4. Appraisal

Generally, there’s nothing you can do to affect this. Bottom line here is…..”is the value of the house at least the value of what you’re paying for it?” If not, then not good things start to happen. Generally you’ll find less issues with values on purchase transactions, because, in theory, the realtor has done an accurate job of valuing the house prior to taking the listing. The big issue comes in refinancing. In purchase transactions, the value is determined as the

Lower of the value or the contract price!!!

That means that if you buy a $1,000,000 home for $100,000, the value is established at $100,000. Conversely, if you buy a $200,000 home and the value comes in at $180,000 during the appraisal, then the value is established at $180,000. Big issues….Talk to your loan officer.

 

Kentucky USDA Rural Housing Loans : Single-Family Housing Guaranteed Loan Program will...

Kentucky USDA Rural Housing Loans : Single-Family Housing Guaranteed Loan Program will...:


As a brief reminder, the Fiscal Year for RHS or Kentucky Rural Housing Services  ends on September 30 th .  USDA offices in Kentucky...

USDA: Upfront

Guarantee Fee and
Annual Fee for

 Fiscal Year 2017/2018

Release Date:  September 29, 2017

Effective Date:  October 1, 2017

Broker Bulletin #:  2017-47

Overview

October 1, 2017 begins the new USDA fiscal year. Effective October 1, 2017, the USDA will NOT CHANGE the Upfront Guarantee Fee of 1.00% and the Annual Fee of 0.35% collected monthly. During the annual temporary lapse in funding, Rural Development will issue Conditional Commitments (RD 3555-18/18E) as "Subject to the availability of commitment authority."

Maps for Kentucky USDA Rural Housing Eligible Area

Maps for Kentucky USDA Rural Housing Eligible Areas 

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do


Kentucky USDA Rural Housing Applications submitted to RD for borrowers in the affected eligible areas (that will become ineligible) must be complete packages, including any required property appraisals and must be received by RD prior to February 2, 2015, to remain eligible for GRH approval.



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




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





If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.


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#57916http://www.nmlsconsumeraccess.org/