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
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- 4 Things Required for a KY Mortgage Loan Approval
- Credit Scores Required For A Kentucky Mortgage Loan Approval in 2025
- Kentucky First-time Home Buyer Programs
- Kentucky FHA Mortgage Information
- Kentucky VA Mortgage Loan Information
- USDA Rural Housing Kentucky Loan Information
- Down Payment Assistance Kentucky 2025 Kentucky Housing Corporation KHC
- Zero Down Kentucky Mortgages
- First-time Home-buyers in Kentucky
- Documents Needed Mortgage Approval in Kentucky
- Free Credit Score For Mortgage Loan Approval
- Do's & Dont's before closing:
- Closing Costs Kentucky Mortgage
- Lock Kentucky Mortgage Loan Rate
- Home Inspections Kentucky Mortgage Loan
- Legal / Privacy Policy / Accessibility Statements
- Testimonials
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What is the Current Mortgage Insurance Requirements for a Louisville Kentucky FHA Loan?
On a KY FHA loan , you typically have to pay both an upfront and an annual mortgage insurance premium (MIP):
Upfront MIP on A Kentucky FHA Loan
Kentucky FHA loans now collect upfront MIP cost 1.75% of the home loan. For instance, if you borrow $100,000, you must pay $1,750 ($100,000 x 1.75%). It can be paid in full upfront, or added to your mortgage balance. This MIP applies no matter your loan amount or term. Most FHA buyers in Kentucky choose to finance the MIP into the loan. If you decide to pay the upfront MI out of your own funds, then you must pay all the mi premium, not just a part of it. The FHA upfront mi fee is not refundable now. This is a change whereas you use to be able to get e refund if the loan was refinanced or paid off in the first 5 years.
Annual MIP on a Kentucky FHA loan
The annual MIP or monthly mortgage insurance is divided by 12 and added to your monthly mortgage payment. The current maximum of 1.35% of the loan amount. How much and how long you have to pay the annual MIP depends on the originating date of your loan, the amount, and your loan-to-value ratio. For example, if you borrow $100,000 on a 30 year FHA loan, the monthly mortgage insurance would be
$112.00 ($100,00 x 1.35=$1350/12=$112.00 monthly mi)
The monthly mi payable to FHA is now for life of loan. This is a big change to keep in mind because FHA use to drop the monthly mi once you reached to 78% ltv of the original balance.
For Kentucky FHA loans with less than 15 year terms the monthly mortgage insurance (Annual MIP) much cheaper.
FHA is changing the duration for the collection of MIP:
o For all mortgages with an original principal LTV of 90% or less, regardless of loan term, the annual MIP will be assessed for 11 years.
o For all mortgages with an original principal LTV greater than 90%, regardless of loan term, the annual MIP will be assessed for the entire life of the loan.
Loans of 15 year terms or less with LTV 78% or less will pay an MIP amount of 45 bps.
FHA

What is Mortgage Insurance for a Kentucky Mortgage Loan Approval?
What is Mortgage Insurance?
If you can’t pay your mortgage, mortgage insurance protects your lender from financial loss. It doesn’t provide any coverage for your home; it only protects your mortgage lender. If you put less than 20% down on a home purchase, the lender considers your mortgage to have a higher risk. Therefore, mortgage insurance protects their investment if you stop making loan payments.
When Are You Required to Have Mortgage Insurance?
Different mortgage types and lenders have varying mortgage insurance requirements. While some may require mortgage insurance as a monthly payment, others may require an upfront fee or a combination of both.
Conventional Loan Mortgage Insurance Requirements
If you have a conventional loan through a private lender and put less than 20% down, a lender can require you to purchase private mortgage insurance (PMI). While some lenders require the borrower to pay for the mortgage insurance, other lenders offer lender-paid mortgage insurance. In other words, instead of directly paying for the mortgage insurance, the lender increases the interest rate to account for the additional risk of the loan.
There are several ways you can pay for your PMI if it’s a requirement:
Pay the entire amount in full
Make monthly payments
Or combine the two options
Most borrowers choose to make monthly payments.
You’ll continue paying for PMI until your mortgage balance reaches 80% or less of the home’s value and you have made timely payments. At this point, you should request the removal of PMI. Some lenders will automatically remove PMI when your loan balance reaches 78% of the original value of the home.
It’s important to point out that it’s your responsibility to keep track of the loan balance and payments. So when you reach a sufficient amount of equity, it’s up to you to request a cancellation of PMI. If you don’t, you could end up paying more premiums than you need to.
Some conventional lenders don’t require PMI, even if you put less than 20% down. So before applying for a mortgage, ask the lender about the PMI requirements.
FHA Mortgage Insurance Requirements
Suppose you choose a Federal Housing Administration (FHA) loan. In that case, you’re required to have mortgage insurance and pay it as an upfront mortgage insurance premium (UPMIP) and an annual mortgage insurance (MIP) regardless of your down payment amount.
Similarly, if you choose a U.S. Department of Agriculture (USDA) loan, you pay mortgage insurance in the form of a guaranteed fee and an annual upfront fee.
With an FHA loan, there are some circumstances where you can’t cancel your mortgage insurance when you reach 20% equity. MIP will remain in your loan indefinitely if you put less than 10% down. On the other hand, MIP can be removed after 11 years if your down payment is over 10%.
How to Get Mortgage Insurance
Your lender will select your mortgage insurance from a private company if you have a conventional loan. The payment is included in the monthly payment to your lender. Other lenders increase your interest rate to account for the mortgage insurance payment.
Unlike conventional loans, FHA loans require an upfront mortgage insurance payment as part of your closing costs. But like conventional loans, the other portion of your mortgage insurance is added to your monthly payment. Both payments are paid to the FHA.
Mortgage Insurance Cost
Depending on factors like your loan type, credit history and down payment, mortgage insurance costs can vary. But you can expect to pay between $30 and $70 per month for every $100,000 you borrowed, according to Freddie Mac.
With a USDA loan, you can expect your annual mortgage insurance rate to be 0.35% with a 1% upfront payment. FHA loan annual mortgage insurance rates currently vary between 0.8% and 1.05%, with a 1.75% upfront fee.
Suppose you buy a $300,000 home with a 3.5% down payment, for example. This means you must borrow $289,500. If you have a 30-year term with a 2.71% interest rate, you’ll pay an extra $114.54 (0.85%) in MIP with a UFMIP of $5,066.25.
How to Avoid Mortgage Insurance
If possible, you can avoid mortgage insurance since it covers your lender, not you. To avoid paying this additional expense, here are a few options.
Put down 20% or more. If you can put more than 20% down on a conventional loan, you probably avoid paying for PMI.
Take out a piggyback loan. With this type of loan, you can put 10% down and get another loan to cover the other 10% of the down payment.
Apply for a VA loan. If you qualify, you could buy a home with a VA loan, which doesn’t come with mortgage insurance requirements.
Compare lenders. Before you decide on a home, compare loan options and offers from various lenders; some may not require mortgage insurance. Review all costs involved to find the most suitable option for your needs.
If you do end up purchasing a home with mortgage insurance, make sure to keep track of the equity built in your home. This way, once your loan is less than 80% of the home’s value, you can either refinance or request a cancellation of your mortgage insurance if your lender allows.
I can answer your questions and usually get you pre-approved the same day.
Call or Text me at 502-905-3708 with your mortgage questions.
Email Kentuckyloan@gmail.com
Joel Lobb (NMLS#57916)
Senior Loan Officer
Text/call 502-905-3708
kentuckyloan@gmail.com

Kentucky USDA Rural Housing Mortgage Lender: USDA has announced an upfront guarantee fee of 1%

Popular Questions about getting a mortgage loan in Kentucky?
Can a buyer have two VA loans at once?
Can I purchase a home without PMI and only put down less than 20%?
Yes, 2nd home purchases can be as low as 10% down plus there are some very affordable PMI options for buyers with great credit scores. USDA, FHA, and VA are not usually used for 2nd home purchases because they are mainly used for primary residences.
Isn't there a time that the seller must own a property so that the buyer can use an FHA loan?
Yes, it is called FHA Flipping Rules. It is pretty flexible but it flat out must be longer than 3-6 months and may require a 2nd appraisal depending on the acquisition costs and how much they are selling it for.
Senior Loan Officer
email me at kentuckyloan@gmail.com

New Kentucky FHA Mortgage insurance Chart for 2015 with Changes effective Jan 26, 2015
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Loan Purpose
|
Up-Front MI Premium
|
Endorsement Date of Current
FHA-insured Mortgage |
Purchase, Rate/Term Non-Streamline Refinance, Cash Out Refinance |
1.75%
|
N/A
|
Streamline Refinance |
1.75%
|
Endorsed on or after 06/01/2009
|
Streamline Refinance |
0.01%
|
Endorsed prior to 06/01/2009
|
For Loan Terms > 15 years
| ||||
Loan Purpose
|
Base Loan Amount
|
LTV
|
Case Number Assigned on or After01/26/2015
|
Case Number Assigned6/03/2013–01/25/2015
|
Purchase, Rate/Term, Cash-Out, or Streamline Refinance Endorsed on or after 06/01/2009 |
<=$625,500
|
<=95%
|
.80
|
1.30
|
<=$625,500
|
>95%
|
.85
|
1.35
| |
> $625,500
|
<=95%
|
1.00
|
1.50
| |
> $625,500
|
>95%
|
1.05
|
1.50
| |
FHA Streamline endorsed prior to 06/01/2009 |
All Loan Amounts
|
All LTVs
|
0.55
|
For Loan Terms <=15 Years
| |||
Loan Purpose
|
Base Loan Amount
|
LTV
|
Case Number Assigned
on and after 6/03/2013 |
Purchase, Rate/Term, Cash-Out, or Streamline Refinance Endorsed on or after 06/01/2009 |
<=$625,500
|
<=90%
|
0.45
|
<=$625,500
|
>90%
|
0.70
| |
> $625,500
|
<=90%
|
0.70
| |
> $625,500
|
>90%
|
0.95
| |
FHA Streamline endorsed prior to 06/01/2009 |
Mortgage Term
|
Loan to Value Ratio
|
Length of Mortgage Premium
|
---|---|---|
15 years or shorter
|
Up to 90%
|
11 years
|
15 years or shorter
|
Greater than 90%
|
Full loan term
|
Greater than 15 years
|
Up to 90%
|
11 years
|
Greater than 15 years
|
Greater than 90%
|
Full loan term
|
Fill out my form!

Louisville Kentucky FHA Mortgage Insurance Changes June 2013
Kentucky FHA Mortgage Insurance Premium (MIP) Changes
FHA Kentucky Mortgage Insurance Premium ChangesAs announced in Mortgagee Letter 2013‐04, HUD will be removing the annual monthly Mortgage Insurance Premium (MIP) exemption for loans with terms of 15 years or less and loan‐to‐value (LTV) ratios less than or equal to 78% at origination. The period for assessing the annual monthly MIP has also been revised. These changes are effective for case numbers assigned on or after June 3, 2013 and are detailed below.
Increase to Annual MIP FHA loans with terms of 15 years or less and LTV ratios less than or equal to 78% at origination will now require annual monthly MIP. Streamline refinance transactions endorsed on or before May 31, 2009 are not affected by this change.
Note: HUD Form 92900‐B (Important Notice to Homebuyers) will be updated to include the revised MIP maximum duration on June 3, 2013.
FHA Case Number Assignments The last day the existing MIP is available is this Friday, May 31, 2013. In order to meet FHA’s deadline,
Fill out my form!

How to Avoid Paying Private Mortgage Insurance | Equifax Finance Blog
- Borrow no more than 80 percent of the home’s value.
- Find a lender willing to give you a first mortgage in an amount equal to 80 percent of the home’s value. Then see if that same lender, or a different lender, is willing to give you an equity loan for a portion of the balance you need for the purchase of your home. This option has been referred to as a piggyback loan. In many instances, the first loan will be for 80 percent of the home’s value and the piggyback loan will be for an additional 5 percent, 10 percent, or 15 percent. The more you want to borrow in the piggyback loan scenario, the harder it might be for you to obtain the loan and the higher your interest rate and costs might be.
- Obtain a loan for 80 percent of the home’s value and then have a family member gift you the difference you might need to buy the home.
- Apply for a FHA loan. (Note that a FHA loan may actually be more costly for you than obtaining a non-FHA loan with MI.)
- If you are buying a home, negotiate to have your seller pay the upfront MI cost. That cost could be negotiated as part of the contract, and the seller could pay your MI fee upfront as a closing cost credit. Once paid, you would not have to pay MI with that loan, but if you were to refinance that loan, you might then have to pay MI with the new loan.
- Have the lender include the MI fee as part of the interest rate that it might charge you. The interest rate might be a tad higher and last for the life of the loan, and you will still technically be paying MI, but this does give you an additional option.
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Closing Costs When Buying or Refinancing a Home for A Louisville Ky Home Mortgage
Non-Recurring Closing Costs Associated with the Lender.
Loan Origination Fee - The loan origination fee is often referred to as "points." One point is equal to one percent of the mortgage loan. As a rule, if you are willing to pay more in points, you will get a lower interest rate. On a VA or FHA loan, the loan origination fee is one point. Anything in addition to one point is called "discount points."
Loan Discount - On a government loan, the loan origination fee is normally listed as one point or one percent of the loan. Any points in addition to the loan origination fee are called "discount points." On a conventional loan, discount points are usually lumped in with the loan origination fee.
Appraisal Fee - Since your property serves as collateral for the mortgage, lenders want to be reasonably certain of the value and they require an appraisal. The appraisal looks to determine if the price you are paying for the home is justified by recent sales of comparable properties. The appraisal fee varies, depending on the value of the home and the difficulty involved in justifying value. Unique and more expensive homes usually have a higher appraisal fee. Appraisal fees on VA loans are higher than on conventional loans.
Credit Report - As part of the underwriting review, your mortgage lender will want to review your credit history. The credit report can be as little as seven dollars, but normally runs between $21 and $60, depending upon the type of credit report required by your lender.
Lender's Inspection Fee - You normally find this on new construction and is associated with what is called a 442 inspection. Since the property is not finished when the initial appraisal is completed, the 442 inspection verifies that construction is complete with carpeting and flooring installed.
Mortgage Broker Fee - About seventy percent of loans are originated through mortgage brokers and they will sometimes list your points in this area instead of under Loan Origination Fee. They may also add in any broker processing fees in this area. The purpose is so that you clearly understand how much is being charged by the wholesale lender and how much is charged by the broker. Wholesale lenders offer lower costs/rates to mortgage brokers than you can obtain directly, so you are not paying "extra" by going through a mortgage broker.
Tax Service Fee - During the life of your loan you will be making property tax payments, either on your own or through your impound account with the lender. Since property tax liens can sometimes take precedence over a first mortgage, it is in your lender's interest to pay an independent service to monitor property tax payments. This fee usually runs between $70 and $80.
Flood Certification Fee - Your lender must determine whether or not your property is located in a federally designated flood zone. This is a fee usually charged by an independent service to make that determination.
Flood Monitoring - From time to time flood zones are re-mapped. Some lenders charge this fee to maintain monitoring on whether this re-mapping affects your property.
Other Lender Fees
We put these in a separate category because they vary so much from lender to lender and cannot be associated directly with a cost of the loan. These fees generate income for the lenders and are used to offset the fixed costs of loan origination. The Processing Fee above can also be considered to be in this category, but since it is listed higher on the Good Faith Estimate Form we did not also include it here. You will normally find some combination of these fees on your Good Faith Estimate and the total usually varies between $400 and $700.
Document Preparation - Before computers made it fairly easy for lenders to draw their own loan documents, they used to hire specialized document preparation firms for this function. This was the fee charged by those companies. Nowadays, lenders draw their own documents. This fee is charged on almost all loans and is usually in the neighborhood of $200.
Underwriting Fee - Once again, it is difficult to determine the exact cost of underwriting a loan since the underwriter is usually a paid staff member. This fee is usually in the neighborhood of $300 to $350.
Administration Fee - If an Administration Fee is charged, you will probably find there is no Underwriting Fee. This is not always the case.
Appraisal Review Fee - Even though you will probably not see this fee on your Good Faith Estimate, it is charged occasionally. Some lenders routinely review appraisals as a quality control procedure, especially on higher valued properties. The fee can vary from $75 to $150.
Warehousing Fee - This is rarely charged and begins to border on the ridiculous. However, some lenders have a warehouse line of credit and add this as a charge to the borrower.
Items Required to be Paid in Advance
Pre-paid Interest - Mortgage loans are usually due on the first of each month. Since loans can close on any day, a certain amount of interest must be paid at closing to get the interest paid up to the first. For example, if you close on the twentieth, you will pay ten days of pre-paid interest.
Homeowner's Insurance - This is the insurance you pay to cover possible damages to your home and other items. If you buy a home, you will normally pay the first year's insurance when you close the transaction. If you are buying a condominium, your Homeowners' Association Fees normally cover this insurance.
VA Funding Fee - On VA loans, the Veterans Administration charges a fee for guaranteeing your loan. If you have not used your VA eligibility in the past, this is two percent of the loan balance. If you have used your VA eligibility before, it is three percent of the loan. If you are refinancing from a VA loan to a VA loan, it is three-quarters of a percent of the loan amount. Instead of actually paying this as an out-of-pocket expense, most veterans choose to finance it, so it gets added to the loan balance. This is why the loan balance on VA loans can be higher than the actual purchase amount.
Up Front Mortgage Insurance Premium (UFMIP) - This is charged on FHA purchases of single family residences (SFR's) or Planned Unit Developments (PUDs) and is 1.75% of the loan balance. Like the VA Funding Fee it is normally added to the balance of the loan. Unlike a VA loan, the home buyer must also pay a monthly mortgage insurance fee, too. This is why many lenders do not recommend FHA loans if the home-buyer can qualify for a conventional loan. However, condominium purchases do not require the UFMIP.
Mortgage Insurance - Though it is rare nowadays, some first-time homebuyer programs still require the first year mortgage insurance premium to be paid in advance. Most mortgage insurance (when required) is simply paid monthly along with your mortgage payment. Mortgage insurance covers the lender and covers a portion of the losses in those cases where borrowers default on their loans.
Reserves Deposited with Lender
If you make a minimum down payment, you may be required to deposit funds into an impound account. Funds in this account are your funds, and the lender uses them to make the payments on your Homeowner's insurance, property taxes, and mortgage insurance (whichever is applicable). Each month, in addition to your mortgage payment, you provide additional funds which are deposited into your impound account.
The lender's goal is to always have sufficient funds to pay your bills as they come due. Sometimes impound accounts are not required, but borrowers request one voluntarily. A few lenders even offer to reduce your loan origination fee if you obtain an impound account. However, if you are disciplined about paying your bills and an impound account is not required, you can probably earn a better rate of return by putting the funds into a savings account. Impound accounts are sometimes referred to as escrow accounts.
Homeowners Insurance Impounds - your lender will divide your annual premium by twelve to come up with an estimated monthly amount for you to pay into your impound account. Since a lender is allowed to keep two months of reserves in your account, you will have to deposit two months into the impound account to start it up.
Property Tax Impounds - How much you will have to deposit towards taxes to start up your impound account varies according to when you close your real estate transaction. For example, you may close in November and property taxes are due in December. Your deposit would be higher than for someone closing in May.
Mortgage Insurance Impounds - When required, most lenders allow this to simply be paid monthly. However, you may be required to put two months worth of mortgage insurance as an initial deposit into your impound account.
Non-Recurring Closing Costs not associated with the Lender
Closing/Escrow/Settlement Fee - Methods of closing a real estate transaction vary from state to state, as do the fees. For purchases, a general rule of thumb that usually works in calculating this closing cost is $200 plus $2 for every thousand dollars in price. For refinances there is usually a flat fee around $400 to $500.
Title Insurance - Title Insurance assures the homeowner that they have clear title to the property. The lender also requires it to insure that their new mortgage loan will be in first position. The costs vary depending on whether you are purchasing a home or refinancing a home, so we will not provide a range here.
Notary Fees - Most sets of loan documents have two or three forms that must be notarized. Usually your settlement or escrow agent will arrange for you to sign these forms at their office and charge a notary fee in the neighborhood of $40.
Recording Fees - Certain documents get recorded with your local county recorder. Fees vary regionally, but probably run between $40 and $75.
Pest Inspection - also referred to as a Termite Inspection. This inspection tests not only for pest infestations, but also other items such as wood rot and water damage. The inspection usually runs around $75. If repairs are required, the amount to cover those repairs can vary. The seller will usually pay for the most serious repairs, but this is a negotiable item. Usually (not always) the pest inspection fee is paid by the seller of the home and is not normally reflected on the Good Faith Estimate.
Home Inspection - Since it is the Home buyer's choice to obtain a home inspection or not, this cost is not usually reflected on a Good Faith Estimate. However, it is recommended. Keep in mind that the home inspector has a certain set of standards he uses when inspecting a home, and those standards may be higher than required by local building codes. An example is that an inspector may note there is no spark arrest-or on a chimney but the local building code may not require it. This sometimes leads to conflicts between buyer and seller.
Home Warranty - This is also an optional item and not normally included on the Good Faith Estimate. A Home Warranty usually covers such items as the major appliances, should they break down within a specific time. Often this is paid by the seller.
Refinancing Associated Costs (but not charged by the new Lender)
Interest - When you close the transaction on your refinance, there will most likely be some outstanding interest due on the old loan. For example, if you close on August twentieth (and you made your last payment), you will have twenty days interest due on the old loan and ten days prepaid interest on the new loan. Your first payment on the new loan would not be until October 1st since you have already paid all of August's interest when you closed the refinance transaction (since interest is paid in arrears, a September payment would have paid August's interest, which has already been paid in closing).
Reconveyance Fee - this fee is charged by your existing lender when they "reconvey" their collateral interest in your property back to you through recording of a Reconveyance. This fee can vary from $75 to $125.
Demand Fee - your existing lender may charge a fee for calculating payoff figures. If they do, this fee may run in the neighborhood of $60.
Sub-Escrow fee - though it sounds like an escrow fee, this fee is actually charged by the Title Company (and I've never been able to figure out exactly what it is for). Assume it is an income-generating fee similar to some of the lender fees mentioned above. Title representatives who want to explain this fee can send us an email.
Loan Tie-in Fee - though it sounds like a lender fee, this cost is actually charged by the Escrow Company (like the sub-escrow fee, I've never been able to understand this fee, either). Escrow officers who want to explain this fee can also send an email.
Homeowner's Association Transfer Fee - If you are buying a condominium or a home with a Homeowner's Association, the association often charges a fee to transfer all of their ownership documents to you.
Asking the Seller to Pay Closing Costs - Rules and Advice.
Keep in mind a few simple rules. On Kentucky Fannie Mae or Conventional loans you can only ask the seller to pay non-recurring costs, not prepaids or items to be paid in advance. If you are putting ten percent down or more, the most the seller can contribute is six percent of the purchase price. If you are putting less down, the most the seller can contribute is three percent.
On Kentucky VA loans, you can ask the seller to pay everything. This is called a "VA No-No," meaning the buyer is making no down payment and paying no closing costs. The seller can pay up to 4% of your closing costs and prepaids not to exceed 4% of the sales price for a Kentucky VA Home Loan
On Louisville Kentucky FHA loans, the seller can pay almost any cost, but the buyer has to have a minimum three and 1/2 percent investment in the home/closing costs. On A Kentucky FHA loan, the seller may pay up to 6% of the sales price toward your closing costs and prepaids
Most refinances include the closing costs and prepaids in the new loan amount, requiring little or no out-of-pocket expenses to close the deal.
If you didn't get bored as you read through this, now you know everything...a lot, anyway...about closing costs.

Senior Loan Officer
502-905-3708 cell