Showing posts with label First Time Home Buyer Grants Kentucky. Show all posts
Showing posts with label First Time Home Buyer Grants Kentucky. Show all posts

First-Time Home Buyer's Guide to Mortgage Approval in Kentucky

Are you a first-time home buyer in Kentucky dreaming of owning your own piece of the Bluegrass State? The path to homeownership starts with getting approved for a mortgage loan. While the process might seem daunting, we're here to break it down into manageable steps. Let's walk through the journey of securing your first mortgage in Kentucky.


First-Time Home Buyer's Guide to Mortgage Approval in Kentucky


Step 1: Check Your Credit Score

Your credit score is an important factor in getting approved for a mortgage and the interest rate you'll pay. In Kentucky, most lenders require a minimum credit score of 620 for conventional loans. However, some government-backed loans, such as FHA, VA, and USDA loans, may accept lower credit scores.


What kind of credit score do I need to qualify for different first time home buyer loans in Kentucky?


Step 2: Save for a Down Payment and Closing Costs

While some loans offer low down payment options, having a substantial down payment can improve your chances of approval and potentially lower your interest rate.

  • Aim for at least 3.5% to 20% of the home's purchase price
  • Don't forget about closing costs, which typically range from 2% to 5% of the loan amount
  • Look into Kentucky-specific programs like the Kentucky Housing Corporation's Down Payment Assistance Program, which offers up to $10,000 for eligible first-time buyers

 There are indeed several programs available that can help potential homebuyers achieve this goal. Let's go through some of the main options:

  1. Kentucky Housing Corporation (KHC) Programs: KHC offers several down payment assistance programs, including:
  • Regular Down Payment Assistance Program

These programs can provide up to 10,000 in down payment assistance, which can effectively result in a zero down payment for some buyers.

  1. FHA Loans: While FHA loans typically require a 3.5% down payment, this can be covered by down payment assistance programs, effectively resulting in zero down payment for the buyer.
  2. VA Loans: For eligible veterans, active-duty service members, and certain military spouses, VA loans offer 100% financing with no down payment required.
  3. USDA Rural Development Loans: These loans are available for homes in eligible rural areas and offer 100% financing with no down payment.
  4. UWM's $15,000 Welcome Home Grant: This grant program can provide up to $15,000 in down payment assistance for first-time homebuyers.
  5. $25,000 Kentucky Welcome Home Grant: This grant can provide up to $25,000 in down payment assistance for eligible homebuyers.
  6. 5% Grant: Some lenders offer a 5% grant that can be used towards down payment and closing costs.

Qualifying criteria for these programs generally include:

  • Credit Score: Typically, a minimum score of 620 is required, but some programs may accept lower scores.
  • Income: Many programs have income limits based on the area's median income.
  • Work History: Most lenders prefer a stable work history of at least two years.
  • Assets: While these programs aim to help with down payments, having some savings for closing costs and reserves is often beneficial.

It's important to note that qualifying criteria can vary significantly between programs and lenders. Additionally, while these programs can help achieve a zero down payment, buyers should be aware that this often results in higher monthly payments and potentially higher interest rates.

Step 3: Determine Your Budget

Before applying for a mortgage, it's crucial to know how much home you can afford.

  • Use the 28/36 rule: Your mortgage payment shouldn't exceed 28% of your gross monthly income, and total debts shouldn't exceed 36%
  • Factor in property taxes, homeowners insurance, and potential HOA fees
  • Consider future expenses like home maintenance and repairs
Kentucky Debt To Income Ratios for FHA, VA, USDA


Step 4: Gather Necessary Documents

Lenders will require various documents to verify your financial situation. Typically, you'll need:

  • Proof of income (W-2 forms, pay stubs, tax returns for the past two years)
  • Bank statements for the past few months
  • Proof of assets (retirement accounts, investments)
  • Identification (driver's license, Social Security number)
  • Rental history for the past two years
Documents Needed Mortgage Approval in Kentucky


Step 5: Get Pre-Approved

Pre-approval gives you a clear idea of how much you can borrow and shows sellers you're a serious buyer.

  • Shop around with multiple lenders to compare rates and terms
  • Submit your financial documents for review
  • Receive a pre-approval letter, typically valid for 120 days




Step 6: Choose a Mortgage Type

Kentucky offers various mortgage options for first-time buyers:

  • Conventional loans: Typically require higher credit scores but offer competitive rates
  • FHA loans: Lower down payment and credit score requirements, but require mortgage insurance
  • VA loans: For eligible veterans and service members, offering no down payment options
  • USDA loans: For rural home buyers, with no down payment required
  • Kentucky Housing Corporation loans: State-specific programs with competitive rates and down payment assistance
Kentucky offers various mortgage options for first-time buyers:



Step 7: Find a Home and Make an Offer

With pre-approval in hand, you're ready to house hunt!

  • Work with a local real estate agent familiar with Kentucky's market
  • Once you find a home, make an offer and negotiate terms
  • If accepted, proceed to the final loan application

Step 8: Complete the Full Mortgage Application

Once your offer is accepted, it's time to finalize your mortgage application.

  • Choose your lender and loan program
  • Provide any additional documentation requested
  • Pay for an appraisal to determine the home's value

Step 9: Underwriting Process

The lender's underwriting team will review your application and supporting documents.

  • They may request additional information or clarification
  • Be prompt in responding to avoid delays
  • Avoid making major purchases or changing jobs during this time

Step 10: Closing

If approved, you'll receive a Closing Disclosure detailing your loan terms and closing costs.

  • Review this document carefully
  • Attend the closing to sign final paperwork
  • Bring a cashier's check or arrange a wire transfer for your down payment and closing costs

Congratulations! Once you've completed these steps, you'll be a proud homeowner in the beautiful state of Kentucky.

Remember, the process can vary depending on your specific situation and chosen lender. Don't hesitate to ask questions along the way.


Joel Lobb  Mortgage Loan Officer




Text/call: 502-905-3708

email:
 kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/



Down payment Assistance for Kentucky Homebuyers $10,000 Through KHC


Down Payment Assistance Housing Programs for Kentucky First Time Home Buyers



$10,000 Down Payment assistance from Kentucky Housing Below  see details below for restrictions:


Down payment Assistance for Kentucky Homebuyers $10,000 Through KHC


@kentuckymortgagebroker #kentuckymortgage #ficoscore #firsttimehomebuyer #homeloan #homeloan #zerodownpayment #vamortgage #vamortgage #khcloan #usdaloan #ruralhousing #mortgagetips #fha ♬ Synchronize (Instrumental) - Milky Chance

​​​​​KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. We offer a special loan program to help with those. Your KHC-approved lender can help you apply.

Regular DAP

  • Purchase price up to $349,525 with Secondary Market.
  • Assistance in the form of a loan up to $10,000 in $100 increments.
  • Repayable over a 10-year term at 3.75 percent.
  • Available to all KHC first-mortgage loan recipients.

​​More About Down Payment and Closing Costs

  • No liquid asset review and no limit on borrower reserves.
  • Specific credit underwriting standards may apply to down payment programs.​

​Secondary Market Eligibility

To qualify for a Secondary Market KHC loan, you must meet the following requirements:

  • Meet Secondary Mark​et Income​ Limits for your county.
  • Be a U.S. citizen, other national or qualified alien person
  • Have a minimum credit score of 620.
  • Be a first-time or repeat homebuyer.

Property Eligibility

The home you wish to purchase must meet the following guidelines.

  • Borrower must occupy the home within 60 days of closing and for duration of loan.
  • New or previously occupied detached, single-family home.
  • New or previously occupied condominium, townhouse, or attached unit in a planned unit development.
    • Check with lender for eligible condominiums.
  • New or previously occupied manufactured housing, single or double wide, permanently affixed to the foundation and taxed as real estate
    • ​Must meet loan type's foundation requirements.
  • ​The property purchased must be in Kentucky.​


​​Secondary Market Funding Source

  • First-time and repeat homebuyers statewide
  • 30-year fixed interest rate
  • Principal residence ONLY
  • Purchase Price Limit:  $349,525​
  • Borrower must meet KHC's Secondary Market Income Limits

Purchase Price Limitations

Secondary Market First Mortgage Programs and KHC's Homebuyer Tax Credit

Secondary Market New and Existing Homes................$349,525

KHC's Homebuyer Tax Credit.......................................$349,525​



First-Time Home buyers Louisville, KY

Louisville KY:

First Time Home Buyer Requirements Louisville, Kentucky

 First-Time Home buyers Louisville, KY




Even beyond the bourbon, the Kentucky Derby and their famous baseball bats, Louisville is not a bad place to put your feet up at the end of the day. This city is certifiably Southern when it comes to food, drink and hospitality, but Louisville is also inclusive and friendly to LGBTQ residents and visitors, earning a perfect score on the Human Rights Campaign Municipal Equality Index in 2017. In other words, Louisville is more than just your stereotypical Southern city — it’s a cool, thriving and welcoming place to all (which is why they ranked at No. 28 on our Top 100 Best Places to Live list in 2019).  
In addition to an inclusive, amenity-filled environment, Louisville is affordable for first-time buyers. Their HOI is 80.5 according to the NAHB, meaning that most of the city’s housing is affordable to average income families, and the median price of homes sold is $176,300. And to encourage low and middle-income families to invest in the city, Louisville also offers an innovative Down Payment Assistance Program, which offers all buyers (not just first-timers) who are at or below 80% of the area median income with down payment assistance up to 20% of the purchase price. As long as you live in the home for five years and financially contribute $500 to the purchase of the property through the appraisal payment, home inspection or earnest money, you can get some financial help to buy your beautiful Southern dream home.



http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
Senior  Loan Officer
Text/call 502-905-3708


Joel Lobb (NMLS#57916)

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 MB73346


 kentuckyloan@gmail.com




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.



100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: 2019 Kentucky First Time Homebuyer Down Payment As...

100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: 2019 Kentucky First Time Homebuyer Down Payment As...: $10,000 HHF DAP Available**************Currently out of funds*****Updated 12-2018 Here are action steps you ...

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Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Frequently Asked Questions for Kentucky First Time...

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Frequently Asked Questions for Kentucky First Time...:  Kentucky First Time Homebuyers buying their First Kentucky Home Information Below for 2018 How are interest rates determined...

How long do you have to wait to buy a house again in Kentucky after a Bankruptcy or Foreclosure?



How long do you have to wait to buy a house again in Kentucky after a Bankruptcy or Foreclosure?


Joel Lobb

Senior Loan Officer

(NMLS#57916

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.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 view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). 



KHC Home Buyer Tax Credit Down payment Assistance

KHC Home Buyer Tax Credit:

• Reduces the amount of federal income tax
you pay.
• Gives you more income to qualify for a
mortgage loan.
• Is effective for the life of the loan. As long as you
have a mortgage, you can claim the credit!
• A 25 percent tax credit of the mortgage interest
paid over a year (not to exceed $2,000).
• The remaining 75 percent of mortgage interest
can still be taken as a yearly deduction.
• Offers a reduction of the one-time fee* to $200
if you obtain your mortgage financing through
Kentucky Housing Corporation (KHC).



Down payment Assistance

Programs (DAP):
• Regular DAP:
Up to $6,000 second mortgage; paid back over
a 10-year period at 5.50 percent interest.
• Affordable DAP:
Up to $4,500 second mortgage; paid back
over a 10-year period at 1 percent interest.
Affordable DAP household income limits apply.
*DAPs can pay the home buyer tax credit fee.





Fill out my form!

Louisville, Kentucky First Time Home Buyer Programs


1. FHA Loans in Kentucky

I do not have a lot of money for a down payment and have some credit issues in the past. 
Loan Features:
  • Great for First Time Home buyers in Kentucky
  • Low Down Payment of 3.5% for scores above 620
  • Easy Credit Qualifying with lower credit scores 
  • 2 years removed from bankruptcy Chapter &
  • 3 years removed from  a foreclosure
  • Clear Cavirs 
  • 2 year work history

kentuckyfhaloan.wordpress.com

KENTUCKY FHA

MORTGAGES
Government-backed loans with flexible guidelines.500 minimum credit score with 10% down payment3.5% down payment with 580 credit score2 years removed from bankruptcyCan be combined with down payment grants for $0 down payment
Max loan $$356,362 in Kentucky
2 year work history with no gaps over 6 months




2. USDA Loans in Kentucky


I live in a rural area and need financing for a home and have no money down in Kentucky for a home loan



Loan Features:
  • Great for those with Low to Moderate Income. 
  • Up to 100% Financing
  • Flexible Underwriting Guidelines and Credit Qualifications
  • Household Income & Property Geographic Limitations Apply
Learn More


kentuckyusdaloan.com

KENTUCKY USDA

MORTGAGES
Government-backed loans with flexible guidelines.Zero Down Payment640 Minimum Credit Score3 years removed from BankruptcyMax Income and Property Map Eligibility Requirements
2 year work history with no gaps over 60 days

3. Conventional Loans in Kentucky


I am able to make a larger down payment and have a good credit score.



mylouisvillekentuckymortgage.com

KENTUCKY CONVENTIONAL FIXED RATE

MORTGAGES
Get your fixed interest rates for eligible buyers.620 minimum credit score3% down payment4-7 years removed from Bankruptcy Depending of if Chapter 7 or 13Max Loan is $548,250 in Kentucky
2 Year work history but does not have to be same job



Loan Features:
  • Great for those with Moderate to High Income
  • As Little as 5% Down Payment (only 3% for First-Time Homebuyers)
  • 20% Down Payment Removes Mortgage Insurance Premiums
  • Flexible Terms
Learn More

4. VA Loans in Kentucky


I am an active member of the military or a veteran in Kentucky



Loan Features:
  • Designed to Provide Financing to American Veterans
  • Up to 100% Financing
  • No Monthly Private Mortgage Insurance (PMI)
  • No minimum credit score
  • 2 years removed from bankruptcy

Learn More

kentuckyvaloan.wordpress.com

KENTUCKY VA

MORTGAGES
Government-backed loans for those who’ve served our nation. Zero Down Payment LoanNo minimum credit score2 years removed from bankruptcyActive Duty --like to see a least a year left in service or 6 months reserves and a job relatable to your mos. skill



5. FHA Manufactured Home Guidelines for Mobile homes in Kentucky





I want to purchase a manufactured home with land.


Loan Features:
  • Great for First Time Homebuyers
  • Low Down Payment
  • Easy Credit Qualifying
  • Easy Refinancing

Manufactured Housing

KHC requires an Affidavit of Conversion to Real Estate per KRS186A.297, when manufactured home is permanently affixed to land.

The Certificate of Title is surrendered.

If manufactured house has not been converted to real estate, then this can be done at closing.
The following items need to be uploaded in the Closed Loan Package:

A copy of the recorded affidavit and the surrendered title to the manufacture home.
A copy of the executed affidavit and title (to be surrendered) sent to the county clerk for recording.

If a new manufactured home, copy of the original certificate of origin from the manufacturer that is going to be delivered to the county clerk so that title can be ordered.

After title is received, affidavit is prepared for recording and title is surrendered.
Within 90 days or less from closing date, need original of newly recorded affidavit and coy of surrendered title.

Failure to send to KHC within timeframe could result in repurchase.
Affixations are not acceptable.

Do not record affixations with the mortgage.


Manufactured Housing Guidelines for Mobile homes in Kentucky


FHA and VA Loan with Manufactured Homes

Both new and existing manufactured housing is allowed.

FHA requires a foundation inspection by a structural engineer.

RHS Loans with Manufactured Home

KHC only allows new manufactured housing.

Dealer to property and set up like a stick built house.

Conventional Loans with Manufactured Home

Both new and existing manufactured housing is allowed with Conventional Preferred and Preferred Risk programs.

95% LTV / 105% CLTV.

No Structural Engineer inspection required for Conventional Loans