𝗧𝗵𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝘁𝗵𝗶𝗻𝗴 for you to know is that conventional loans have many benefits, including:
Down payments as low as 3%
No upfront mortgage insurance premium
Monthly mortgage insurance that automatically falls off once the home has been paid down to 78% of the home’s value
The ability to choose between an adjustable-rate or fixed-rate mortgage with different term lengths
Use on different property types, including primary residences, second homes, and investment properties
✔ Maximum Loan Limits set each year.
✔ PMI based on credit score and equity position
Kentucky Fannie Mae Loans versus Kentucky FHA Loans
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Non Occupant Co-Borrower for Fannie Mae and FHA Loans.
The differences below: |
Kentucky Fannie Mae Loans - Allowed on all Purchases up to 95% LTV
- Allowed on all Refinances including Cash out
- Does not have to be a Family Member
Kentucky FHA Loans - Limited to 75% LTV. LTV can be increased to max 96.5% LTV provided:
- Non occupying borrower is not the seller in the transaction
- Property is not a 2-4 unit property
- Has to be a family member
- Not allowed on Cash out Refinances
- Non Occupant Co Borrowers must either be United State Citizens or have a Principal Residence in the United States.
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Non arms Length / Identity of Interest for FHA and Fannie Mae Loans In KY |
Fannie Mae Loans(non arms length) - Underwriter must confirm transaction is not a bail out
- Gift of Equity is allowed
- No additional restrictions apply
FHA loans (Identity of Interest) - Gift of Equity is allowed
- LTV limited to 85% unless
- Purchase is the principle residence of another Family Member
- Borrower has been a tenant in property for 6 months predating the sales contract. A lease or other written evidence is needed to verify occupancy
- Borrower is an employee of the Builder of the property
- If a Family Member is providing secondary financing for the transaction, additional guidelines apply. See HUD 4000.1 II.A.4.(3) for additional guidelines.
Joel Lobb Mortgage Loan OfficerIndividual NMLS ID #57916
American Mortgage Solutions, Inc.
Text/call: 502-905-3708
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