Showing posts with label Kentucky USDA. Show all posts
Showing posts with label Kentucky USDA. Show all posts

Here are action steps you can take right now to buy a home in Kentucky in 2024

 Here are action steps you can take right now to buy a home in Kentucky in 2023


1. Focus on your credit score

FICO credit scores are among the most frequently used credit scores, and range from 350-800 (the higher, the better). A consumer with a credit score of 750 or higher is considered to have excellent credit, while a consumer with a credit score below 620 is considered to have poor credit.

To qualify for a mortgage and get a low mortgage rate, your credit score matters.

Each credit bureau collects information on your credit history and develops a credit score that lenders use to assess your riskiness as a borrower. If you find an error, you should report it to the credit bureau immediately so that it can be corrected.


2. Manage your debt-to-income ratio

Many lenders evaluate your debt-to-income ratio when making credit decisions, which could impact the interest rate you receive.

A debt-to-income ratio is your monthly debt payments as a percentage of your monthly income. Lenders focus on this ratio to determine whether you have enough excess cash to cover your living expenses plus your debt obligations.

Since a debt-to-income ratio has two components (debt and income), the best way to lower your debt-to-income ratio is to:

  • repay existing debt;
  • earn more income; or
  • do both

3. Pay attention to your payments

Simply put, lenders want to lend to financially responsible borrowers.

Your payment history is one of the largest components of your credit score. To ensure on-time payments, set up autopay for all your accounts so the funds are directly debited each month.

FICO scores are weighted more heavily by recent payments so your future matters more than your past.

In particular, make sure to:

  • Pay off the balance if you have a delinquent payment
  • Don't skip any payments
  • Make all payments on time

4. Get pre-approved for a mortgage before you start shopping for a home loan.

Too many people find their home and then get a mortgage.

Switch it.

Get pre-approved with a lender first. Then, you'll know how much home you can afford.

To get pre-approved, lenders will look at your income, assets, credit profile and employment, among other documents.

5. Keep credit utilization low on your credit cards

Lenders also evaluate your credit card utilization, or your monthly credit card spending as a percentage of your credit limit.

Ideally, your credit utilization should be less than 30%. If you can keep it less than 10%, even better.

For example, if you have a $10,000 credit limit on your credit card and spent $3,000 this month, your credit utilization is 30%.

Here are some ways to manage your credit card utilization:

  • set up automatic balance alerts to monitor credit utilization
  • ask your lender to raise your credit limit (this may involve a hard credit pull so check with your lender first)
  • pay off your balance multiple times a month to reduce your credit utilization

6. Look for down payment assistance in Kentucky

There are various types of down payment assistance, even if you have student loans.

Here are a few:

  • FHA loans - federal loan through the Federal Housing Authority
  • USDA loans - zero down mortgages for rural and suburban homeowners
  • VA loans - if military service
  • Kentucky Housing Down Payment Assistance of $10,000

Here are action steps you can take right now to buy a home in Kentucky


There are federal, state and local assistance programs as well so be on the look out.



If you want a personalized answer for your unique situation call, text, or email me or visit my website below:








Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916


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



Text/call:      502-905-3708

email:          kentuckyloan@gmail.com
 

https://kentuckyloan.blogspot.com/

 









--

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119
email:          kentuckyloan@gmail.com

 

Labels: , , , , , ,

Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans

I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 900 Kentucky families buy their first home and refinance their current mortgage for a lower rate; Kentucky First time buyers $0 down still available with 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 ID 1364 




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



Text/call: 502-905-3708
fax: 502-327-9119
email: 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 view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).


 #homebuyers #mortgage #housing #fhaloan #usdaloan #valoan #homeloan #kentuckymortgage #louisvillemortgage #firsttimehomebuyers

Labels: , , ,

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 delinquent child support that is not subject to administrative offset and presently delinquent child support that is subject to administrative offset.
 An approved repayment agreement with three timely payments documented is acceptable for presently delinquent child support that is not subject to administrative offset.
• Judgements
o Court ordered judgements with an approved arrangement with the creditor require three timely payments. The borrower may not prepay a lump sum at one time to equal three monthly payments.
Annual and Repayment Income
• The Annual and Repayment Income Table has been updated as follows:
o Boarder Income – Income received from an individual renting a space inside the dwelling makes the property income producing which is ineligible for USDA-RD financing.
o Bonus and Overtime – The required history of one year must be in the same line of work.
o Child Support and Alimony/Separate Maintenance that meets the minimum history requirement, whether court ordered (6 months) or a voluntary payment agreement (12 months), and the payment amounts are not consistent requires an average to be used consistent with the payer’s current ability and willingness to pay.
o Guardianship/Conservatorship Income has been added as an eligible income type with acceptable documentation that supports payment amounts and duration. There is no required history for this type of income as long as the income has been received prior to submission to USDA-RD.
o IRA Distribution income has been added as an eligible income type. There is no required history as long as the income is received prior to submission to USDA-RD. It must be documented that the borrower is currently receiving the income and the amount received each month.
o Secondary Employment – One year history has been clarified as one year of working primary and secondary employment concurrently.
o Variable Income (piece rate, union work, or similar types of pay structures) has been added as an eligible income type with acceptable documentation. A one year history in the same or similar line of work is required. Significant variances of 20% or greater must be analyzed before considering the income stable and dependable.
• Self-Employed Borrowers - If ownership interest is less than 25%, neither the “business owner” or “self-employed” option should be selected in GUS.
Assets
• Gift Funds – If the gift funds will be sent directly to the settlement agent, in addition to the gift letter, a donor’s bank statement and verification that the settlement agent has received funds from the donor is required.
• Gift funds applied as earnest money should not be reflected in the Gifts or Grants you have been given or will receive for this loan section of the Loan and Property Information of the GUS application page.

• Retirement Accounts – Funds borrowed against these accounts may not be considered towards reserves. The borrowed funds should not be reflected in the balance of any asset entered in the Assets and Liabilities application page in GUS.

Property Eligibility

• Multiple Parcels
o An improvement that has been built across lot lines is acceptable.
o A home built across both parcels where the lot line runs under the house is acceptable.
• Accessory Dwelling Units (ADU)
o ADUs designed to create a potential rental income stream are not eligible.
Appraisals
• Appraisal Validity/Appraisal Update - the appraisal validity period has been updated as follows:
o The appraisal must not be more than 180 days old as of the Note Date.
o When the original appraisal is updated, the appraisal must be valid for no more than one year from the effective date of the initial appraisal as of the Note Date.
• Appraisal Transfers
o An appraisal transfer letter from the initial lender is required.

Labels: , , ,

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: USDA Rural Housing Kentucky Loan Information

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: USDA Rural Housing Kentucky Loan Information: A Kentucky USDA home loan is a zero-dollar-down mortgage option provided by USDA’s Department of Rural Development. This government-...


Kentucky USDA Rural Development Loans Program Guidelines

Loan Purpose of Kentucky Rural Housing Loans

  • Purchase
  • One-time Close Construction Loan (very few lenders do this)
  • Rate-term refinance for existing USDA Loans Only. Cannot refinance a Conventional loan, FHA, VA, or other loans into an USDA loan. 

Credit Profile for a Kentucky Rural Housing Buyer


  • 581 minimum middle credit score for all borrowers on the loan – purchase
  • No score allowed with alternative trade lines
  • Most Kentucky USDA lenders will want a 620 or 640 score or higher. A 640 middle score is required for a USDA loan through GUS, the automated underwriting system used by rural development to determine the max lending limits for a loan. 
  • No foreclosure, short sale, or Chapter 7 bankruptcy discharge within three years of contract ratification date on credit report not permitted
  • Minimum of two tradelines on credit, with a positive pay history within the most recent 12-month period. Accounts can be open or closed
  • If two tradelines aren’t on credit, alternative tradelines can be
  • No mortgage delinquency in the last 12 months for a USDA-to-USDA Refinance

Loan Amount limits for USDA loans in Kentucky. 

  • No maximum loan amounts. A lot of borrowers think they're max limits on this because there is max limits on total household income by county in Kentucky, but there actually is no limit as long as the borrower gets approved on the ability to repay the loan. 


Mortgage Insurance Requirements and Premiums for USDA Loans:  

  • USDA charges a 1% Commitment Fee that is financed into the loan. Not paid out of pocket but can be
  • Commitment Fee can be financed into the loan 
    Example: 
    Purchase price - $100,000 
    Base Loan amount - $100,000 
    Commitment Fee - $1,010 ($100,000 [purchase price] /.99 - 100,000) 
    Maximum financed loan amount = $101,010
  • USDA requires a monthly Annual Fee (i.e. mortgage insurance premium) with an annual factorial of .35%
  • This is much lower than FHA's upfront 1.75% and the monthly mi of .85% so keep that in mind.


Ratios for USDA Loan Approval in Kentucky

  • 33.99/45.99% (DTI) with GUS Accept/Eligible underwriting findings
  • 29/41% debt-to-income (DTI) with GUS Accept/Refer underwriting findings and credit score less than 679
  • 31.99/42.99 with GUS Accept/Refer underwriting findings and credit score greater than 680 and with compensating factors such as:
    • 680 or higher credit score
    • No or low "payment shock" - less than a 100% increase in proposed mortgage payment Vs. current rental housing expenses
    • Fiscally sound use of credit
    • Ability to accumulate savings
    • Stable employment history with 2 or more in current position or continuous employment history with no job gaps
    • Cash reserves available for use after settlement
    • Career advancement as indicated by job training or additional education in the applicants profession
    • Trailing spouse income - as a result of a job transfer, the house is being purchased, prior to the secondary wage-earner obtaining employment. If the secondary wage-earner has an established history of employment and has a reasonable chance to obtain new employment in the area
    • Low total debt load

Property Type for USDA Loan Approval in Kentucky

  • Must be located in an eligible USDA Rural Development Location
  • Owner-occupied properties---no rental properties or second homes
  • Existing attached and detached single-family residences
  • New construction with permanent financing only
  • PUD's (i.e. Townhomes)
  • Condo-units. HUD, VA, FNMA or FHLMC approved project
  • Log cabin homes, provided Appraisal Report lists other comparable log cabin homes that have recently sold in the area
  • No used or old mobile homes allowed. Only allows new mobile homes from dealer setup on land with mobile home land package deal...Kentucky only. ..

Documentation for loan approval on income/job history for a Kentucky Rural Housing Loan: 


  • All loans must be fully documented per Agency Guidelines. USDA likes to see a 2 year job history with stable employment. Does not have to be same employer, just a contiguous 2 year work history with no gaps over 30 days. 
  • If recently graduated form college, sometimes they will waive the 2 year job history rule if show transcripts and be on your job for 6-12 months. Case by case here. 
  • For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)
  • If overtime or bonus income or second job is used to qualify, you can take a 2 year avg and as long as stable and not decreasing, you can usually this income to qualify. 
  • They usually will take your base gross income to qualify you on the mortgage loan. They don't qualify you off your net income.

Down Payment/Closing Costs for a USDA loan in KY

  • 0% down payment required, but if you have available 20% down payment in checking or savings, they will make you use that..If the money is in a tax-deferred or 401k plan, retirement plan, they will not hold this against you. 
  • Seller contribution toward buyers closing costs up to 6% of the purchase price
  • Closing cost help can come from flexible sources including family member gifts and loans against a 401k retirement account
  • If the appraised value of the property exceeds the purchase price, the difference can be used to cover closing costs---This is a key benefit of Kentucky USDA loans. This is the only type of loan that will allow this. 

Terms

  • Amortization period: 30-year fixed rate-They do not offer any other terms. Just a 30 year fixed rate loan with no prepay penalty. 

Existing Properties Owned

  • USDA primarily often won't allow applicants to own other properties
  • Exceptions include when the other property owned is:
    • Not owned in the local commuting area as the new property; or
    • Not structurally sound and/or functionally adequate
    • Manufactured home not on a permanent foundation



Kentucky Rural Development Loan Guidelines Credit, Income






Kentucky USDA Rural Housing Loans : Kentucky USDA Rural Development Loans Program Guidelines




Labels: , , , ,

Kentucky First Time Home Buyer Programs to Consider for 2022 Kentucky Homebuyers.

First Time Home Buyer Programs to Consider for 2022 Kentucky Homebuyers.



First Time Home Buyer Programs to Consider for 2022 Kentucky Homebuyers.





Zero Down Mortgage Loans in Kentucky

The Kentucky VA and the Kentucky USDA Home Loan Program both offer a zero down loan program for individuals and/or properties that meet their criteria.

If you need down payment assistance, KHC offers up to $7,500 for assistance to buy your Kentucky home if you are lacking the down payment requirements for FHA or Fannie Mae below.


Three Percent Down Mortgage Loans in Kentucky

Fannie Mae/Freddie Mac conventional loans are available with down payments as low as 3% on single-family homes, including eligible condos, co-ops, and some manufactured homes. Fixed-rate mortgages with up to 30-year terms and ARMs are available.

Three and 1/2 Percent Down Mortgage Loans in Kentucky

The Federal Housing Administration (or FHA) loan program can allow as little as 3.5% down, and it is more lenient than most other programs on minimum credit scores and other factors. he FHA loan program allows as little as 3.5% down, and it is more lenient than most other programs on minimum credit scores.
Are you surprised at how low you may be able to go? While many believe a 20% down payment is required, you can see now that it’s far from the only option.
Whether you’ve saved a little or a lot, reach out today, and we’ll work on finding a loan that works for you.
  • Kentucky Federal Housing Administration (FHA) loans: “With a 3.5% down payment, Kentucky homebuyers may be able to get an FHA loan with a 580 credit score or higher. If you can manage a 10% down payment, though, that minimum goes as low as 500.”
  • Kentucky Conventional loans: “The most popular loan type typically comes with a 620 minimum credit score.”
  • US. Department of Agriculture (USDA) loans: “In general, lenders require a minimum credit score of 620-640 for a USDA loan, though some may go as low as 580.”
  • US. Department of Veterans Affairs (VA) loans: “VA loans don’t technically have a minimum credit score, but lenders will typically require between 580 and 620.”

a0ab5-gotquestion2b252812529

 
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

I
Labels: , , , , ,

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

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Mortgage Loan Requirements: Kentucky Rural Housing USDA loans require One of the biggest eligibility requirements is that the property be located in a designated rur...


Kentucky USDA Mortgage Loan Requirements


Labels: , , , , ,

Down payment assistance to buy a home in Kentucky!

 There are various types of down payment assistance to buy a home in Kentucky with little or no money down!

Here are a few:

  • Kentucky FHA loans - federal loan through the Federal Housing Authority-Credit scores low as 620 and gifts can be used or down payment assistance from government agency to meet the 3.5% down payment investment. No income limits but max loan currently is $356,000 in Kentucky for 2021

  • Kentucky USDA loans - zero down mortgages for rural and suburban homeowners-640 credit score needed currently for most loans and has income limits and property location restrictions

  • Kentucky VA loans - if military service or active duty, can buy a home with zero down with a 620 minimum credit score. No income restrictions and can buy a house anywhere as long as VA appraisal supports the purchase price. No max loan limits but must meet residual income requirements and Eligibility based off Certification of Eligibly Entitlement. Amount.

  • Kentucky Housing Down Payment Assistance of $6000 can be used for FHA, VA, USDA or Conventional mortgage loans for their down payment requirements or to help with closing costs. Max income limits and loan limits for this program. 

KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP

  • Purchase price up to $346,644 with Secondary Market.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.
  • Available to all KHC first-mortgage loan recipients.

Affordable DAP

  • Purchase price up to $346,644​ with Secondary Market.
  • Assistance up to $6,000.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable D​AP income limits.

​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 FUNDING SOURCE

  • First-time and repeat homebuyers statewide
  • 30-year fixed interest rate
  • Principal residence ONLY
  • Purchase Price Limit:  $346,644
  • Borrower must meet KHC’s Secondary Market Income Limits
Conventional Preferred Program
Conventional Preferred Plus 80
FHA
VA
RH​​S

KENTUCKY HOUSING CORPORATION
2021 SECONDARY MARKET
GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS
Effective May 1, 2021

Secondary Market Purchase Price Limit — $346,644

KENTUCKY HOUSING CORPORATION 2021 SECONDARY MARKET GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS
KENTUCKY HOUSING CORPORATION 2021 SECONDARY MARKET GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS

Read more about each program by hitting the links above. 

There are federal, state and local assistance programs as well so be on the look out.

If you want a personalized answer for your unique situation call, text, or email me or visit my website below:

 



Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA






Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916


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



Text/call: 502-905-3708

email: kentuckyloan@gmail.com

https://kentuckyloan.blogspot.com/




Labels: , , , , ,
Subscribe to: Posts (Atom)