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.
turndown for mortgage,bad credit,credit,Credit Score,Debt to Income Ratio,fha income,job gaps,job loss,new job,time on the job,down payment assistance and first time home buyer grants,appraisal,



Here are some resources that can help:

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/

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Louisville Kentucky First Time Home Buyer Programs

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Louisville Kentucky First Time Home Buyer Programs: Kentucky First Time Home Buyer Programs If you are a potential Louisville Kentucky First Time home buyer first time home buyer in Loui...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: First-time Home-buyers in Kentucky

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: First-time Home-buyers in Kentucky: Common Questions from Louisville Kentucky First-time Homebuyers Kentucky First Time Home Buyer Common Questions and Answers below:👇 ∘ Wh...

How to Qualify For a Kentucky FHA Mortgage Loan




Kentucky FHA Mortgage Information How to Qualify For a Kentucky FHA Mortgage Loan #fha #fhaloan #fhamortgage #fhahomeloan #fhamortgageinsurance #kentuckymortgage #affordablehousing #realestate #homeloan #580creditscore #badcredit #louisvillemortgage #jeffersoncountykentucky #louisvillerealtor #kentuckyrealtor #firsttimehomebuyer

How to Qualify For a Kentucky FHA Mortgage Loan

Key ways to get your best rate possible on your Kentucky Home loan

 

Kentucky Mortgage Rates


 Key ways to get your best rate possible on your Kentucky Home loan
Kentucky Mortgage Rates FHA, VA, USDA and KHC

Historically speaking, current mortgage rates are pretty average.

But considering all the other factors involved in our post-pandemic housing market, many people are struggling to afford a home.

 Here are the top ways you can get your best mortgage rate, even in a tough market:

  • Improve your credit score by paying down your debt and making all payments on time
  • Consider all your loan options, including your term length and fixed rate vs. adjustable-rate mortgages
  • Shop around for a lender and compare rates and terms

These key factors can mean the difference in paying thousands of dollars extra over the life of your loan.

It all depends on your unique situation.

Best loan options for borrowers in today’s market

  • Conventional purchase — best for borrowers with a high credit score
  • FHA loan — best for first-time borrowers with more flexible credit requirements
  • VA loan — potential for zero down for active-duty military personnel, veterans, and eligible surviving spouses
  • USDA loan — potential for zero down for for borrowers in rural areas who have moderate to low incomes
  • Bank statement loan — for self-employed individuals
  • KHC Loan --Down payment Assistance Grant for Zero Down Home Loans

 Ask your lender about 2-1 buydowns and adjustable-rate mortgages for methods to get a lower initial rate.

 How much home can you afford?

Let’s demystify the mortgage process.

Here are three common models lenders use to calculate how much of your income should go toward your monthly mortgage payment:

  • 28/36 rule: Your max monthly mortgage payment can’t exceed 28% of your gross monthly income, and your mortgage plus other monthly debts cannot exceed 36%
While this is a good starting point, this standard is nearly impossible to hit in many housing markets. Most borrowers today have "debt-to-income ratios" closer to 40-50% of their gross income.

Beyond your debts, lenders will evaluate your income, employment history, and credit score.

That's how to get the lowest mortgage rate possible for your borrower scenario.

What about getting the lowest monthly mortgage payment possible?

  • Boost your credit score
  • Make a larger down payment
  • Choose a more affordable home
  • Shop around for the best mortgage rate



Discounted Mortgage Rate 6% 30 year fixed rate loan. ***

 Exciting News! KHC is thrilled to reintroduce its MRB program, now featuring an interest rate of 6%!
BONUS!!! Add $10,000 in down payment assistance to this amazing program for a power move!
Eligibility requirements for the programs do apply, so reach out to us today for more information. Call or Message us now and seize the moment!

***Subject to Credit Qualifying Criteria and subject to change.

(1) The above rate quote has the following assumptions: $200,000 purchase; $194,000 loan amount; 0% down payment; 620 FICO credit score; property is SFR; borrower has sufficient income and assets to qualify; Tax and insurance impounds required; Estimated closing costs affecting the 6.375% APR include all standard fees. Monthly payment without taxes and insurance is $1,481.00. Rate and Annual Percentage Rate shown as of 02/01/2024, subject to change.

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/