I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
620 credit score or higher needed for this loan program. 4 years removed from bankruptcy minimum sometime longer. Private mortgage insurance required for over 80% loan to value on a refinance or down payments less than 20%. Tighter debt to income requirements with max back-end-ratio usually not over 45% with less than 20% down payment. Easier on properties to qualify if they have deferred maintenance or need some fixing up to pass Government standards like FHA, VA, USDA loans.
Down payment requirements are as little as 3% down payment. Better rates and lower mortgage insurance with a larger down payment and pmi is not for life of loan.
This is for stronger borrowers with good credit (above 680 or 720) and at least 3-5% down payment with no foreclosures or bankruptcies in he last 4-7 years. Can go higher on the loan amount too versus FHA. Max loan in Kentucky for 2020 for conventional loans is $510,000.
Home Possible Advantage Product Highlights:
Up to 97% LTV for Purchase and for Rate Term Refinances of 1-unit properties
CLTV max 97% for purchase unless the second mortgage meets FHLMC Affordable Seconds Guidelines for a max of 105%
Minimum Credit Score of 620 Required
Accept/Eligible LP AUS Findings
Max DTI allowed per AUS Findings
Lower Mortgage Insurance coverage requirements for LTV's of 90.001% - 97% (25%) compared to standard Fannie product (30-35%)
Borrowers may not own any other real estate at closing
1 unit principal residences, including eligible condos and PUDs, 2-4 unit principal residences
Homeownership Education:
At least one Borrower must participate in a homeownership education program before the Note Date in each of the following instances:
For purchase transaction Home Possible® Mortgages when all Borrowers are First-Time Homebuyers
Homeownership education must not be provided by an interested party to the transaction, the originating lender or by the Seller.
Homeownership education programs may use different formats and require different lengths of time to complete. The following are acceptable:
Programs developed by HUD-approved counseling agencies, Housing Finance Agencies (HFAs) or Community Development Financial Institutions (CDFIs)
Programs developed by mortgage insurance companies
Programs that meet the standards of the National Industry Standards for Homeownership Education and Counseling (www.homeownershipstandards.com)
Income Eligibility:
Borrowers must meet income limits for program eligibility. Income limits will be checked by LP.
Gift funds and grants. Affordable Seconds are allowed.
Find additional information regarding Affordable Seconds in the Freddie Mac Seller guide section 4204.2
Non-Occupant Borrowers:
Not permitted. All borrowers must occupy the subject property as their primary residence.
Mortgage Insurance:
Monthly, borrower-paid or single premium LPMI are allowed. At this time, borrower paid singles, split premiums, lender paid monthly premiums and lowest cost/custom MI are not allowed.
25% MI coverage for LTVs 90.001 - 97%
Standard MI coverage for LTVs of 90% or less. (Reduced MI not permitted)
Other Income:
Border income (relatives or non-relatives): Up to 30% of qualifying income, must document at least 9 of the last 12 months of payment (will be averaged over 12 months and must document proof of shared residence for the 12 month period.
Accessory Unit - Rental income from an accessory unit may be used in qualifying income per rental income guidelines
2-Unit Rental income from the other units of the subject property may be used per rental income guidelines.
The
Good Neighbor Next Door Program offers HUD owned single family (one-unit)
homes to eligible participants at a 50% discount. Law enforcement officers,
teachers, firefighters and other emergency medical technicians who meet all
other requirements of the program are all eligible to participate in this
program.
Program Summary
•
Borrower
is a full-time law enforcement officer, teacher or firefighter/emergency
medical technician
•
A
50 percent discount from the list price is provided in the form of a
forgivable second lien
•
The
second mortgage is a mortgage and note payable to and provided by HUD in the
amount of the difference between the list price of the home and discounted
selling price
-
The
term of the note is 36 months from the date of owner-occupancy
-
Refinance
restrictions may apply
•
One-unit
residential properties
•
Borrower
cannot own any other residential property within 12 months of the offer date
•
None
of the borrowers could have ever utilized this program in the past
•
The
following must be detailed on the purchase contract with HUD
-
50%
discount
-
$100.00
downpayment required
-
Borrower
may finance closing costs
Qualifications
1. You must be able to qualify for an FHA mortgage.
Good Neighbor Next Door Qualifications
Teachers, Counselors, and Administrators
State certified to teach any grades pre-K through 12
Teach in a private school in the area where the home is located
Teach in the public school district where the home is located
You or your spouse have not had your name on a real estate deed for the past 12 months
You can get a letter of mortgage prequalification or proof of funds before the submitting an intent to purchase
You can provide a refundable earnest money check for 1% of the home’s listed price. It needs to been in the form of a cashier’s check or money order made out to the U.S. Department of HUD.
You intend to teach for at least one more year
Firefighter/Emergency Medical TechniciansYou may participate in the Good Neighbor Next Door program as a Firefighter/Emergency Medical Technician if you are employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located.
You or your spouse have not had your name on a real estate deed for the past 12 months
You can get a letter of mortgage prequalification or proof of funds before the submitting an intent to purchase
You can provide a refundable earnest money check for 1% of the home’s listed price. It needs to been in the form of a cashier’s check or money order made out to the U.S. Department of HUD.
Law EnforcementYou may participate in the Good Neighbor Next Door program as a law enforcement officer if you are employed full-time by a law enforcement agency of the federal government, a state, a unit of general local government, or an Indian tribal government; and, in carrying out such full-time employment, you are sworn to uphold, and make arrests for violations of, federal, state, tribal, county, township, or municipal laws.
You or your spouse have not had your name on a real estate deed for the past 12 months
You can get a letter of mortgage prequalification or proof of funds before the submitting an intent to purchase
You can provide a refundable earnest money check for 1% of the home’s listed price. It needs to been in the form of a cashier’s check or money order made out to the U.S. Department of HUD.
Is the Good Neighbor Next Door a legitimate program? Yes, this a United States Department of Housing and Urban Development program that has been created for the benefit of civil servants when purchasing a designated HUD home. If you want verification you can visit HUD’s website. The program has been created for teachers, firefighters, police officers, and EMT’s.
What does it mean that these houses are 50% off? HUD has their homes appraised based on their current condition. The homes are discounted from this appraised price.
What is a HUD home? HUD acquires properties from insured lenders who have foreclosed FHA loans.
Are HUD homes bad homes? Just because it’s a HUD home doesn’t mean it’s a bad home. The only reason it’s a HUD homes is because it has gone through foreclosure.
Do all HUD homes qualify for the Good Neighbor Next Door program? No. Only the homes that are designated by HUD are eligible.
How often do Good Neighbor Next Door homes become available? Every day homes are listed some where in the country. Sign-up on the notification list so that you will be notified when a home becomes available in your community.
How long do these homes stay on the market? These homes are only listed for a seven day period. If they don’t sell through the Good Neighbor Next Door program then they will go to the general HUD list at full list price.
Do I have to live in the Good Neighbor Next Door home that I purchase for a certain length of time? To receive the full 50% discount you agree to live in the home for three years.
What if I move out of the house before three years? You will still receive a discount, but it will be prorated according to how long you live in the house.
If I own the house, how can HUD enforce how long I own the home? HUD will require that you sign a silent second mortgage in the amount of the discount. There is no monthly payment or interest on the second mortgage. HUD uses the second to track your homeownership. If you sell your home before the three-year anniversary date then a prorated portion of the second mortgage will be due at closing. This second mortgage will automatically drop off after three years.
My name has been on a deed in the past year, do I still qualify? No, neither your name nor your spouse’s name can have been listed on any real estate deed in the United States in the past year.
Are there any other benefits associated with the Good Neighbor Next Door program? Yes. If you get an FHA loan HUD will allow you to finance in all of your closing costs, move-in for only a $100 down payment, and finance certain home repairs.
How do I submit a bid? You can enter on this website. A qualified broker will call you and give you access to the home, assist you with locating a lender, and monitor inspections & the closing process. We will work with that broker to make sure the closing process goes smoothly.
Who pays the real estate broker? For the Good Neighbor Next Door program, HUD requires that the buyer pay the real estate commission. If you get an FHA loan HUD will allow you to roll the commission into your mortgage. On each property that’s listed on this website there is an approximate mortgage payment. This payment includes the financed commission.
Can I bid higher or lower than the list price? No. In this program HUD will only allow you to submit “an intent to purchase” for full list price. This list price will be discounted by 50% at closing. Everyone who bids will have identical bids.
If there is more than one person bidding on a home, how does HUD determine who wins the house? A computer will randomly decide who wins.
Can you bid on more than one home? You can purchase only one home, but to increase your chances of winning one of the houses you can submit bids on different houses. HUD limits people to only one Good Neighbor Next Door home in their lifetime.
How much earnest money is required? HUD requires that you give your broker a cashier’s check or money order for 1% of the home’s list price. On a $100,000 home your earnest money will be $1,000. HUD has a minimum earnest money requirement of $500 and a maximum $2,000.
I thought the down payment was only $100, what’s this 1% of list price? The 1% earnest money is refundable at closing or if you are not selected as the winner of a home. If you are selected as the winner of a Good Neighbor Next Door home and if you want to finance in all of your closing costs with only a $100 down payment, then you could receive back a check at closing. This check will be your earnest money minus the $100 down payment.
What if there are significant repairs required on a home and I don’t have the cash to fix it? You are able to get a specific type of FHA loan (203K) that will allow you to finance up to $35,000 worth of home repairs into your mortgage.
Can I use a Good Neighbor Next Door homes as an investment? Yes, but only if you occupy the home and don’t own any other real estate. After three years you can sell the home, realize any increases in value, and pay off the discounted mortgage that you have. Since this is your principal residence you can claim a capital gains exemption and not be taxed on gains. Consult your CPA for details.
What if my employment changes before the three years is up? After you close your discount will not be in jeopardy.
What do I do next? What is the process? 1. Fill out the ”Entry Form” and we will contact you. Everyone is required to have a letter of prequalification or proof of funds before submitting an “intent to purchase.” You may use any lender that offers FHA financing. If you would like us to help you through the process fill out this questionnaire and we will have a lender get in contact with you. Often, people can get a letter of prequalification within hours of contacting one of the lenders we recommend. 2. View the home. If you don’t have time to view the home you may still have the opportunity to submit your name in the lottery and if selected inspect the home then. 3. Get either a cashier’s check or money order for 1% of the home’s listed price. 4. Decide on one or more homes to submit your intent to purchase.
Do you have clients with no down payment? Do you have clients with some cash but they do not wish to exhaust all of it to buy a home? How many times have you pre-qualified an applicant only to realize that the mortgage insurance or higher interest rates keep them out of the price range needed to accommodate their family?
The Rural Development guarantee may be able to help!
Generous income limits
Flexible credit and qualifying ratios can help open up a new market of homebuyers.
Competitive 30 year fixed rates - no monthly mortgage insurance allows you to offer affordable payments to all homebuyers.
No down payment and no cash reserve requirements help you qualify more clients.
No maximum purchase price or mortgage limit.
Become an expert in Guaranteed Rural Housing financing to gain more clients and close more loans in small communities and rural areas.
Rural Development assists thousands of clients annually to become homeowners. This year we want you as our partner!
A competitive fixed rate combined with no mortgage insurance provides long term savings for the customer.
Home buyers are able to retain their savings since there is no down payment requirement and closing costs can be financed up to the appraised value.
Lenders report an overwhelming preference for the Guaranteed Rural Housing loans for the great value it provides to their customers. Choose the best program for your customers!
Look in the telephone directory blue pages under United States Department of Agriculture, and then look for Rural Development or Rural Housing Service.
