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
Showing posts with label appraisal. Show all posts
Showing posts with label appraisal. Show all posts
Kentucky FHA, VA, USDA Appraisal Requirements for Mortgage Loans
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Kentucky first-time homebuyers with a focus on FHA, VA, USDA Home loans in Kentucky
Here's a summary of different loan programs for Kentucky first-time homebuyers with a focus on
FHA, VA, USDA Home loans in Kentucky
FHA Loan:Appraisal Requirements:
FHA Loan:
Credit Score: Typically requires a minimum credit score of 580; borrowers with lower scores may still qualify but may need a larger down payment.
Down Payment: Minimum down payment of 3.5%.
Income Ratio: Front-end ratio (housing expenses to income) should not exceed 31%; back-end ratio (total debt to income) should not exceed 43%.
Work History: Generally requires at least two years of steady employment, though exceptions can be made.
Credit, Bankruptcy, and Foreclosure: More forgiving than conventional loans; may consider borrowers with past bankruptcy or foreclosure.
Employment and Work History: Stable employment and income are essential.
Time to Close: Typically around 30-45 days. Appraisal and property requirements follow FHA guidelines.
Credit Score:VA doesn't set a minimum score; lenders may have their requirements, often around 620 or higher.
Down Payment: Minimum down payment of 3.5%.
Income Ratio: Front-end ratio (housing expenses to income) should not exceed 31%; back-end ratio (total debt to income) should not exceed 43%.
Work History: Generally requires at least two years of steady employment, though exceptions can be made.
Credit, Bankruptcy, and Foreclosure: More forgiving than conventional loans; may consider borrowers with past bankruptcy or foreclosure.
Employment and Work History: Stable employment and income are essential.
Time to Close: Typically around 30-45 days. Appraisal and property requirements follow FHA guidelines.
VA Loan:
Down Payment: No down payment required for most borrowers.
Income Ratio: Flexible debt-to-income ratios, often up to 41% or higher in certain cases.
Work History: Stable employment history is preferred.
Credit, Bankruptcy, and Foreclosure: More lenient on past credit issues; may consider borrowers with past bankruptcy or foreclosure.
Employment and Work History: Consistent income from stable employment is crucial.
Time to Close: VA loans can take 45-60 days to close. Appraisal and property requirements must meet VA standards.
Income Ratio: Flexible debt-to-income ratios, often up to 41% or higher in certain cases.
Work History: Stable employment history is preferred.
Credit, Bankruptcy, and Foreclosure: More lenient on past credit issues; may consider borrowers with past bankruptcy or foreclosure.
Employment and Work History: Consistent income from stable employment is crucial.
Time to Close: VA loans can take 45-60 days to close. Appraisal and property requirements must meet VA standards.
USDA Loan:
Credit Score: Typically requires a minimum credit score of 640; exceptions may be possible with compensating factors.
Down Payment: No down payment required for eligible borrowers.
Income Ratio: Maximum debt-to-income ratio of 41%, though exceptions may be made with strong compensating factors.
Work History: Stable employment history is preferred, typically two years or more.
Credit, Bankruptcy, and Foreclosure: Consideration for borrowers with past credit issues, bankruptcy, or foreclosure.
Employment and Work History: Consistent income from stable employment is important.
Time to Close: USDA loans may take 30-60 days to close. Appraisal and property requirements must meet USDA guidelines.
Each loan program has specific eligibility criteria and requirements, so it's essential for first-time homebuyers to consult with lenders or mortgage experts to determine the best fit based on their financial situation and goals.
Down Payment: No down payment required for eligible borrowers.
Income Ratio: Maximum debt-to-income ratio of 41%, though exceptions may be made with strong compensating factors.
Work History: Stable employment history is preferred, typically two years or more.
Credit, Bankruptcy, and Foreclosure: Consideration for borrowers with past credit issues, bankruptcy, or foreclosure.
Employment and Work History: Consistent income from stable employment is important.
Time to Close: USDA loans may take 30-60 days to close. Appraisal and property requirements must meet USDA guidelines.
Each loan program has specific eligibility criteria and requirements, so it's essential for first-time homebuyers to consult with lenders or mortgage experts to determine the best fit based on their financial situation and goals.
Appraisal requirements and income documentation
FHA Loan:Appraisal Requirements:
The property must meet FHA guidelines, including minimum property standards and safety requirements. An FHA-approved appraiser assesses the property's value and condition.
Income Documentation: Generally requires recent pay stubs, W-2 forms, tax returns for the past two years, and proof of additional income sources (if applicable).
VA Loan:Appraisal Requirements:
Income Documentation: Generally requires recent pay stubs, W-2 forms, tax returns for the past two years, and proof of additional income sources (if applicable).
VA Loan:Appraisal Requirements:
VA loans require a VA appraisal conducted by a VA-assigned appraiser. The appraisal assesses the property's value and ensures it meets VA's Minimum Property Requirements (MPRs).
Income Documentation: Typically includes pay stubs, W-2 forms, tax returns for the past two years, and proof of any additional income (e.g., bonuses, alimony, rental income).
USDA Loan:Appraisal Requirements:
Income Documentation: Typically includes pay stubs, W-2 forms, tax returns for the past two years, and proof of any additional income (e.g., bonuses, alimony, rental income).
USDA Loan:Appraisal Requirements:
USDA loans require a USDA appraisal to determine the property's value and ensure it meets USDA's standards for safety and livability.
Income Documentation:
Similar to FHA and VA loans, USDA loans require pay stubs, W-2 forms, tax returns for the past two years, and documentation of other income sources.
These appraisal requirements and income documentation are crucial parts of the loan application process. Lenders use this information to assess the property's value, ensure it meets safety standards, and verify the borrower's income stability and ability to repay the loan.
These appraisal requirements and income documentation are crucial parts of the loan application process. Lenders use this information to assess the property's value, ensure it meets safety standards, and verify the borrower's income stability and ability to repay the loan.
Hope your day is full of sunshine
Joel Lobb Mortgage Loan Officer
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/
NMLS 57916 | Company NMLS #1364/MB73346135166/MBR1574
NMLS ID# 57916, (www.nmlsconsumeraccess.org).
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
The reasons you will get turn down for a mortgage loan in Kentucky.
There are several reasons why people in Kentucky might get turned down for a mortgage loan. These reasons can be broadly categorized into issues with the borrower or the property:
Borrower-related reasons:
- Credit score: Low credit scores (generally below 620) are a major factor in loan denials. Having a history of late payments, delinquencies, or collections can negatively impact your score.
- Debt-to-income ratio (DTI): This ratio compares your monthly debt payments to your gross income. A high DTI (generally above 50%) indicates you have a lot of debt compared to your income, making it harder to afford a mortgage payment.
- Employment history: Lenders prefer borrowers with stable employment and income. Recent job changes, gaps in employment, or insufficient income documentation can raise concerns.
- Down payment: A smaller down payment increases the loan amount and loan-to-value ratio (LTV), making the loan riskier for lenders. In Kentucky, FHA loans require a minimum 3.5% down payment, while conventional loans typically require 20%.
- Insufficient assets: While not always a disqualifier, having limited savings or assets can weaken your application by reducing your financial cushion.
Property-related reasons:
- Appraisal value: If the appraised value of the property is lower than the purchase price, it creates a high LTV, making the loan riskier for lenders.
- Property condition: Major repairs or structural issues with the property could require significant investment before closing, which lenders may not be comfortable with.
- Location: Properties in floodplains or other high-risk areas may be ineligible for certain loan types or require additional insurance.
Here are some resources that can help:
- Reasons loan denied in Kentucky https://www.mylouisvillekentuckymortgage.com/2010/10/get-approved-for-mortgage-or-home-loan.html
Joel Lobb Mortgage Loan Officer
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
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Kentucky FHA Home Appraisal Checklist
Kentucky FHA appraisals can take home buyers by surprise. That’s why we've put together some good-to-know info about the process. Feel free to use this to help educate your clients.
Your Kentucky FHA Home Appraisal Checklist
If you’re using an Kentucky FHA loan to buy a home (or selling to FHA borrowers), the property must pass an FHA appraisal, which determines the current market value and makes sure the house meets certain safety standards. Here is a list of items an FHA appraiser may look for:
General Health and Safety
- Foundation or structural defects
- Whether the utilities (water, sewage, heat, and electricity) all work
- Chipped or peeling paint in homes built before 1978
- Incomplete renovations
- Water damage
- If the property is accessible to vehicles, especially emergency vehicles
- Exposed wiring and uncovered junction boxes
- Whether the house is too close to outside hazards, such as a leaking oil tank or a waste dump
- Excessive noise, such as being close to an airport
- Missing handrails
Exterior
- Leaky or defective roof and holes in the siding
- Leaning or broken fencing
- Doors that don’t properly open or close
- Condition of gutters, chimney, stairs, railings, and porches
- If swimming pools are up to code
Every Room
- Whether each room has electricity
- Whether each room has a window or door to the exterior to be used as a fire escape
Kitchen
- Missing or broken appliances usually sold with a home, including stove and refrigerator
- Broken or leaking sink
Bathrooms
- Broken or leaking toilet, sink, or tub/shower
- No ventilation (either an exhaust fan or window)
Crawl space or basement
- Basement moisture
- Evidence of past or present standing water
Heating and Plumbing
- Inoperable HVAC
- Major plumbing issues and leaks
These are some common items an FHA appraiser looks for, but other issues that might make a house unsafe could keep it from passing. An FHA appraisal is not the same as an independent home inspection. It’s still a good idea to get a separate home inspection to make sure you’re making a wise investment!
Updated FHA Info Letter Sent July 12, 2022 for Kentucky FHA Appraisal Reports
✨Applies to case numbers assigned on or after June 1, 2022
✨Updates the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report;
🙌🏼Extends the appraisal update validity period from 240 days to one year from the effective date of the initial appraisal report;
✨Allows the appraisal update to be ordered AFTER an appraisal expires; and
👊🏼Eliminates the optional 30-day extension.
✨This is big news for FHA ✨
The guideline change also puts FHA appraisal expirations on par with conventional loan expiration dates.🥊
.jpg "Applies to case numbers assigned on or after June 1, 2022 Updates the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report; Extends the appraisal update validity period from 240 days to one year from the effective date of the initial appraisal report; Allows the appraisal update to be ordered AFTER an appraisal expires; and Eliminates the optional 30-day extension. ✨This is big news for FHA ✨ The guideline change also puts FHA appraisal expirations on par with conventional loan expiration dates.")
List of Kentucky FHA Appraisers below:
👇
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
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