Kentucky FHA loans vs Kentucky USDA Loans for Kentucky Home buyers.

Criteria	Loan Type
	FHA	USDA
Down Payment	3.5%	0% – None
PMI	.85%	0.35%
Funding Fee *	1.75	1.0
Limits (loan)	Per County	None
Limits (income)	None	YES -per county,etc
Restricted location	None	YES
Credit score	580 down to 3.5% 500 score with 10% down payment	no minimum score

There are a few other points that put the Kentucky USDA loan at an advantage over the Kentucky FHA mortgage program such as the appraisal value. USDA appraisal value is normally higher than the selling price. If the appraisal value is more than the purchase price, this becomes an additional advantage for borrowers as the USDA will permit you to roll in closing costs.

Essentially the only issues that could be considered as drawbacks of the USDA loan are the restriction of location and the USDA RD income limits. The location must be in a designated rural area with a total population of 20,000. This can be a setback for those who do not want to drive farther to get to work in the city. But buyers should check their location in detail, please click here for the USDA housing map. Many populated locations just outside of the big cities are USDA rural housing approved - locations just outside of Louisville, Ky, Lexington Kentucky, and Northern Kentucky Counties..

Additionally, the USDA ‘s income limit imposed on would-be borrowers is currently set at 115% of the median or average income of the area where your home is to be situated. That means for those who have a higher income than the average in town would have to opt for mortgage loans under the FHA or through a conventional lender if they so decide to live in a rural area.

Regarding the rates as well as the guidelines in qualifying potential borrowers, the FHA and USDA are just about equally matched, and they are currently at historic low rates. However, the USDA, unlike the FHA, allows borrowers to finance the whole purchase price and include any closing expenses as well into the loan.

Lastly, all USDA guaranteed loans have a 30-year fixed rate term. This can be very advantageous mainly when the homeowner eventually starts earning more than the required 115% median, the rate is fixed and even after 10 years only, will practically be insignificant compared to other monthly expenses at this time.

The funding fee in both governments backed programs are incorporated (rolled into) into the overall loan.

Apply for FREE Below for your Kentucky FHA Mortgage loan or USDA Loan:

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax

http://mylouisvillekentuckymortgage.com 

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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Zero Down Kentucky Mortgages

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Zero Down Kentucky Mortgages: ZERO DOWN HOME LOANS IN KENTUCKY There are a few programs that feature zero down payment in Kentucky For Home buyers : USDA and ...

What are the Kentucky USDA Mortgage Loan Requirements?

Kentucky Mortgage USDA Loan Requirements

What are the Kentucky USDA Mortgage Loan Requirements?

To decide if you qualify for an USDA Mortgage Loan, we will look at:

•Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.

•Your credit history (this is important, but USDA’s credit standards are flexible). A FICO score of 620 or above is required for all loans

•Your overall pattern rather than to individual problems you may have had.

To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

CHANGE TO ANNUAL USDA GUARANTEE FEE STRUCTURE and CHANGE IN ELIGIBILITY MAPS As announced in RD AN No. 4757, the annual guarantee fee structure (paid monthly from the borrower’s escrow account) for purchase and refinance loans will increase as follows (no change to the one-time upfront fee at this time):

Can I get an USDA Mortgage Loan after bankruptcy?

Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentucky USDA loan application.

What are the USDA Down Payment Requirements?

USDA Mortgages have no down payment requirement. Other loan programs don’t allow this.

What types of property are eligible?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

What is the maximum amount that I can borrow?

The maximum amount for an Kentucky USDA Mortgage Loans are determined by:

Maximum loan amount: The is no set maximum loan amount allowed for an USDA Mortgage. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Mortgage amount will be 100% of the appraised value of the home.

What kinds of loans does USDA offer?

Fixed rate loans – All USDA loans are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

What is Considered a Rural Area by the USDA?

Rural areas include open country and places with population of 10,000 or less and—under certain conditions—towns and cities. There is an automated rural area eligibility calculator at:http://eligibility.sc.egov.usda.gov.

Kentucky USDA Loans

What are USDA Home Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, ENG Lending’s USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and no monthly mortgage insurance.

What Types of Loans does USDA offer in Kentucky?

Currently, there are two kinds of USDA Home Loans available in Kentucky for single family households:

USDA Guaranteed Rural Housing Loans

USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loanin Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

USDA Direct Rural Housing Loans

USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Kentucky?

To be eligible for A USDA Rural Loan in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through ENG Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

if you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.

 

 

 

 

 

 

 

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

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Kentucky First Time Home Buyer Loan Programs

Kentucky First Time Home Buyer Loan Programs

What is a First Time Buyer Loan?

Many people dream of owning a home but the home loan process can be confusing for many first time home buyers. Mortgage lenders offer first time buyers with many home loan options and assist the buyer in finding the best home loan for them. First time home buyer programs can offer lower interest rates, low down payments, or reduced taxes.

FHA and VA Loans for First Time Buyers Apply Online

First time homebuyers often experience the most difficulty amounting a significant down payment and everyone should have the opportunity to buy a home. For this reason the Federal government has developed two loan programs to assist homebuyers that have a little or no down payment. These programs are called the Kentucky Federal Housing Administration (FHA) and the Kentucky Veteran’s Administration (VA). These programs are not solely intended for first time home buyers; your home loan advisor will be able to determine if you qualify and if so which program is acceptable for your needs. Kentucky FHA and VA loans can be especially advantageous when combined with a HFA or MCC first time homebuyer program.

Who is Eligible for a First Time Buyer Loan?

Kentucky First time home buyer programs are designed to help borrowers who may not have enough money to pay the full cost of the down payment or the closing costs on a mortgage. These programs make obtaining a mortgage more cost effective. There are even programs specifically for residents of each state. First time home buyer programs are available to those who have not owned a home for the past three years.

Community Home Buyer Programs

Kentucky  Community homebuyer programs reduce the down payment the borrower must pay to 3%, which must be the borrower’s own funds. The closing costs can be gift funds, a grant, or seller assistance up to 3% of sale price. This type of home loan requires the home buyer to take a class on home ownership in their state. Upon completion of the class, the homebuyer will receive a certificate that reduces the cash requirement and expands the qualification ratios. Community homebuyer programs have been making it possible for many people to have the opportunity to buy a home.

What is Escrow?

Escrow is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of an event. In simpler terms, escrow is where the transaction changes hands and prevents the seller from not receiving the money from the sale and prevents the buyer from not receiving the home that was purchased. Escrow is important to both buyers and sellers during the mortgage process.

Mortgage Credit Certificates

A Mortgage Credit Certificate or MCC from KHC -Kentucky Housing Corp is a certificate awarded by your local government agency authorizing the home loan borrower to take certain federal income tax credits. The credits awarded help to free up funds and make the monthly home loan payments more affordable for the homeowner. First time home buyers are typically the candidates eligible for an MCC but in special cases that you may discuss with your home loan advisor this requirement may be waived. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative.

Louisville Ky First Time Buyers Program

 First time buyer programs in Louisville can make securing a Louisville home loan easier and more affordable. Contact us at 502-905-3708 for your Louisville Ky  mortgage to begin your first time buyer loan.

USDA Rural Housing’s Streamline Refinance Pilot Program has great news for homeowners with a USDA home loan......

USDA Rural Housing’s Streamline Refinance Pilot Program has great news for homeowners with a USDA home loan......

(USDA Section 502 Guaranteed loans) allowing homeowners to include closing costs and other settlement charges into a lower rate USDA mortgage with streamlined guidelines making it easier to refinance to a lower interest rate and payment.  USDA mortgages offer buyers the ability to finance 100% of the purchase price when purchasing a primary residence but now USDA is making it much easier to refinance these USDA mortgages so homeowners can take advantage of today’s low fixed mortgage rates.

Effective June 22, 2012 Primelending began accepting the USDA Rural Housing Refinance Pilot Program and the financing of the principal balance of the existing USDA loan plus the accrued interest used to calculate the payoff, and any eligible closing costs.  The two year pilot refinancing program is available to homeowners with USDA mortgages in 19 eligible states including Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, and Tennessee.  But, if a borrower with a USDA loan in any of the other 31 states is looking to refinance, there is still a USDA streamline refinance that does not require an appraisal but it cannot finance the closing costs like the Pilot Refinance Program.

The USDA Pilot refinance program is available to help homeowners with a USDA mortgage refinance at a lower interest rate without an appraisal, inspection, or calculating debt to income ratios as long as the property is still in an eligible area and the household is under the USDA income limit for the county in which the property is located.   With the new USDA refinance guidelines, it provides a less restrictive form of refinancing to save money.

PrimeLending is one of the leading USDA lenders in the country and the Russell Smith team is one of the top producing USDA loan officers as well and both have extensive experience in USDA Rural Housing Mortgage Loans.

The USDA Rural Development Pilot refinance program guidelines include the following:

• The interest rate on the new USDA loan must be a minimum or 1.00% lower than the existing USDA loan
• Pilot eligible states include AL, AZ, CA, FL, GA, IL, IN, KY, MI, MS, NV, NJ, NM, NC, OH, OR, RI, SC, & TN.  All other states are ineligible
• Rural Refinance Pilot loans must meet basic eligibility:  Property must be in a USDA eligible area and the household income must be under the USDA county income limit
• New term of the refinance loan must be 30 years
• Upfront USDA Guarantee fee is 2.00% of the loan amount which can be financed on top of the base loan amount
• Annual fee of 0..40%.  This would be new for most USDA borrowers since this is fairly new for USDA guaranteed loans.  This fee is paid monthly in the payment. For example:  $100,000 loan would be $30 per month.  $100,000 x .40% / 12 = $30..00
• New USDA loan refinance loan may include the principal balance of the existing USDA guaranteed loan plus accrued interest through the payoff date, and any eligible closing costs
• No cash out is permitted
• Reasonable and customary closing costs and other fees may be collected from the borrower by the originating company
• Income verification for all adult household members is required for income eligibility determination only, not for determining repayment ability
• Ratio waivers are not required as income is just used for compliance income calculation only for verifying the income is under the county USDA household income limit
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To apply for the Kentucky  USDA Pilot Refinance Program, click here.

Apply for a home loan by clicking the link below:It's free and takes less than 5 minutesOr call us at 502-905-3708 for your free application over the phone

Kentucky Rural Development Loans

Kentucky Rural Development

Guaranteed Housing

Home Financing Options for Kentucky Home Buyers Lenders

Think Guaranteed First!

Advantages Frequently Asked Questions Choose Rural Development Applicant Eligibility How to start Become an approved lender Checklists and web site links. Brochures and guides. Training  Find a Rural Development office  What is the Rural Development guarantee.

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!

The advantages: 

• Loan up to appraised value plus the guarantee fee.
• Low monthly mortgage insurance (MI) .35% monthly on 30 years and universal for all credit scores. 
• Maximum loan amount is the appraised value plus a one time guarantee fee.
• No cash contribution or cash reserves required from applicant.
• Unrestricted gifts.
• Non-traditional credit acceptable.
• Streamlined credit documentation available - based upon credit.
• No minimum credit score.
• Repayment ratios are 29/41.  Ratio waivers are allowed with documented compensating factors.
• Not limited to first-time home buyers.
• Competitive market based fixed interest rates with 30 year term.
• Available secondary markets: wholesale lenders as well as Fannie Mae, Freddie Mac, and Ginnie Mae.
• Qualifies for Community Reinvestment Act (CRA)
• Agency approved lenders underwrite the loan.
• Any lender, or broker, may originate loans through an Agency approved lender.
• Agency guarantee commitments are issued within 1-2 business days of receipt of the complete package - based on volume of loan requests.
• Rural Development provides lender support for questions, training, and outreach assistance.

     Choose Rural Development as the first option

• 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!

Applicant eligibility criteria: 

• Occupy the property as your primary residence.  
• Be able and willing to occupy the property. 
• Be a U.S. citizen, a U.S. non-citizen national or a qualified alien. 
• Demonstrate an ability and willingness to meet obligations and debts as they become due.
• Have a credit history that indicates a willingness to meet obligations as they become due.
• Have an adjusted household income that is within Rural Development guidelines based on the number of persons who will occupy the home.  
• Purchase a residential property that is within a Rural Development eligible area. 

 Checklists and web site links:

• Determine if the property is within the Rural Development eligible area. 
• Use the link "Single Family Housing" under "Property Eligibility". 
• Determine if your applicant's adjusted household income is within the Agency limits,
• Use the link "Single Family Housing" under "Income Eligibility"
•  What is adjusted household income? 
• Determine income limits by State or particular county
• Loan application package checklist 
•  Forms list
  • Form RD 1980-21, Request for SFH Conditional Commitment
• Useful web links

 Brochures and guides:

• Guaranteed Loan brochure
• A quick guide overview to Guaranteed Loans
•  For additional information contact your local Rural Development office. 

T

Find a Rural Development office. 

• The Rural Development Office Locator website is: http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd
• Look in the telephone directory blue pages under United States Department of Agriculture, and then look for Rural Development or Rural Housing Service.

 What is the Rural Development "guarantee"?

• Lenders have less risk with the Rural Development guaranteed loans than with conventional loans covered by private mortgage insurance. 

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