Qualifying Loan Programs for First-Time Homebuyers in Louisville, Kentucky

Qualifying Loan Programs for First-Time Homebuyers in Louisville, Kentucky


 

Are you a first-time homebuyer in Louisville, Kentucky, looking to navigate the complexities of mortgage loans?

Understanding the various loan programs available and their qualifying criteria is crucial.

Let’s explore the key aspects of FHA, VA, and USDA loans, along with their requirements and average rates, tailored to Louisville’s housing market.

FHA Loans for Louisville Homebuyers

Down Payment: FHA loans offer a low down payment option of 3.5%, making homeownership more accessible.

Credit Score: While FHA loans are more lenient with credit scores, a score of 580 or higher is typically required for the 3.5% down payment. Lower credit scores down to 500 may be accepted with a 10% down payment.

Work History and Employment: Lenders typically look for 2 year stable employment and income history to ensure borrowers can repay the loan.

Income Ratio: Your debt-to-income ratio (DTI) should generally be 40% on the front end ratio and 50% on the backed ratio- lower, although some flexibility may exist based on compensating factors.

Bankruptcy and Foreclosure: Previous bankruptcies and foreclosures may not immediately disqualify you but may impact the waiting period before you can apply for an FHA loan. 2 years on Chapter 7, 1 year on Chapter 13, and 3 years on foreclosure.

Time to Close: FHA loans often have a quicker closing process compared to other loan types, typically within 30 to 45 days.

Home Inspections and Appraisal Reports: FHA loans require a home inspection to ensure the property meets safety and livability standards. An appraisal is also necessary to determine the home’s value.

Fixed Rates for 30 Years: FHA loans offer fixed-rate options for 30 years, providing stability in monthly payments.

Mortgage Insurance: FHA loans require both upfront mortgage insurance (UFMIP) and annual mortgage insurance premiums (MIP) no matter how much you put down and is for life of loan. Cheaper mortgage insurance on shorter term loans and larger down payments.

VA Loans for Louisville Homebuyers

Down Payment: VA loans offer a zero-down payment option, making them highly attractive to eligible veterans, active-duty service members, and select spouses.

Credit Score: While VA loans don’t have a credit score requirement, most lenders prefer a score of at least 580 to 620 or higher  for smoother approval processes.

Work History and Employment: 2 year Stable employment and income are essential, although VA loans may be more flexible with employment history, especially for veterans.

Income Ratio: The VA typically looks for a DTI of 41% or lower, but exceptions can be made based on compensating factors.

Bankruptcy and Foreclosure: Similar to FHA loans, previous bankruptcies and foreclosures may impact eligibility but may not be automatic disqualifiers. 2 years removed from Chapter 7 and 2 years removed from foreclosure. Chapter 13 one year  in plan okay . 

Time to Close: VA loans often have competitive closing times, usually within 30 to 60 days.

Home Inspections and Appraisal Reports: VA loans require a VA appraisal to ensure the property meets VA’s minimum property requirements (MPRs) and a pest inspection for termite-related issues. TERMITE REPORT REQUIRED ON ALL VA LOANS. 

Fixed Rates for 30 Years: VA loans offer fixed-rate options for 30 years, providing long-term payment predictability.

Mortgage Insurance: VA loans don’t require private mortgage insurance (PMI) but have a VA funding fee, which can be financed into the loan amount.

USDA Loans for Louisville Homebuyers

Down Payment: USDA loans offer a zero-down payment option for eligible rural and suburban homebuyers.

Credit Score: While USDA loans prefer a credit score of 640 or higher, lower scores may be considered with additional documentation.

Work History and Employment:  2 year Stable employment and income are essential for USDA loan approval.

Income Ratio: USDA loans typically require a DTI of 31% to 45% or lower, although exceptions may apply based on compensating factors.

Bankruptcy and Foreclosure: Previous bankruptcies and foreclosures may impact eligibility, and waiting periods may apply. 3 years removed from Chapter 7 and foreclosures, and one year in Chapter 13 okay.

Time to Close: USDA loans may have slightly longer closing times due to rural property eligibility checks and loan processing, often within 45 to 60 days.

Home Inspections and Appraisal Reports: USDA loans require a home inspection and an appraisal to ensure the property meets USDA’s standards. Must meet FHA appraisal requirements.

Fixed Rates for 30 Years: USDA loans offer fixed-rate options for 30 years, providing stability in monthly payments.

Mortgage Insurance: USDA loans require both upfront guarantee fees and annual fees for mortgage insurance, although the rates are typically lower than FHA’s MIP. Mortgage insurance is 1% upfront premium, and .35% a month for life of loan.

Average Rates and Mortgage Insurance Requirements

In Louisville, Kentucky, the average rates for FHA, VA, and USDA loans can vary based on market conditions, lender policies, and borrower qualifications. As of [current date], FHA loan rates in Louisville may range from [range], VA loan rates from [range], and USDA loan rates from [range], all for 30-year fixed-rate loans.

Mortgage insurance requirements differ for each loan type:

  • FHA loans require both upfront mortgage insurance premiums (UFMIP) and annual mortgage insurance premiums (MIP).
  • VA loans don’t require mortgage insurance but have a funding fee.
  • USDA loans require upfront guarantee fees and annual fees for mortgage insurance, often lower than FHA’s MIP.

Conclusion

For first-time homebuyers in Louisville, Kentucky, understanding the qualifying criteria and nuances of FHA, VA, and USDA loans is vital. Each loan type offers unique benefits and considerations, from down payment options to credit score requirements and mortgage insurance. Working with a knowledgeable mortgage broker like Joel Lobb can help streamline the loan process and find the best financing option for your home purchase journey.

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

 

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).

 

 

Author: Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans

I have helped over 589 Kentucky families buy or refinance their home over the last 18 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. Give us a try or let us compare your options on your next mortgage transaction. Call me locally at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications. Email me at kentuckyloan@gmail.com with your questions I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance. Customer Testimonials 😍😍😍 We just moved here the first of January in 2017 from Ohio to the Louisville, KY area and we found Joel's website online. He was quick to respond to us and got back the same day on our loan approval. He was very knowledgeable about the local market and kept us up-to date throughout the loan process and was a pleasure to meet at closing. Would recommend his services. Angela Forsythe "We were searching online for mortgage companies in Louisville, Ky locally to deal with and found Joel's website, and it was a godsend. He was great to work with, and delivered on everything he said he would do. I ended up referring my co-worker at UPS, and she was very pleased with his service and rates too. Would definitely vouch for him." September 2016 Monica Leinhardt "We contacted Joel back in July 2011 to refinance our Mortgage and he was great to work with. We contacted several lenders locally and online, and most where taking almost 60 days to close a refinance, Joel got it done in 23 days start to finish,I would definetly recommmend him. He got us 3.75% with just $900 in closing costs on our FHA Streamline loan. Kayle Griffin “Joel is one of the best Mortgage Brokers I have ever worked with in my sixteen years in the real estate and mortgage business.” May 25, 2010 Tim Beck “Joel has always worked very hard to keep his word and to work out seasonable solutions to difficult problems. He is truly an expert in FHA and other type loans.” September 1, 2010 Nancy Nalley “I have worked with Joel since 1998. He is a great loan professional.” I refer most of my Louisville, Kentucky area home buyers to him and he always take special care of them. August 23, 2012 Jon ClarK “Joel Lobb is a real professional in the lending industry, with many years of experience, he is the one to go to for any mortgage lending needs.” August 22, 2011 RICHARD VOLZ , Residential Sales , Remax Foursquare Realty “When looking to purchase our new home in 2006, I had the pleasure of meeting Joel Lobb. Not only was he personable and easy to reach, he was extremely knowledgable in his field and made sure to find us the best rate and a top notch mortgage company. We were able to complete the process in less than 3 weeks with his expertise. I find Joel to have the utmost high integrity and I recommend him to anyone who say's they are need of mortgage assistance. He is also fantastic and keeping everyone up to date on the latest in the housing industry through his twitter posts. He provided great results for our family and we still communicate to this day!” August 21, 2010 Stacie Drake "We first use Joel on our new home purchase in 2007 in St Matthews, Kentucky area and he was great to work with. We have since refinanced our home with him in 2010 when rates got really low and he has always delivered on what he says. I could not imagine using anyone else." Melody Glasscock March 2014 Absolutely Amazing!! I emailed Joel after I had just got a denial from a bank and just thought i would try to get some advice on what my next steps would be to get a house. I honestly didn't expect to even get a reply because my credit is not great. That was about a week and a half ago. I just signed a contract on a house last night. ONLY because of Joel Lobb. He even worked with us throughout the weekend, which shocked me. Best decision I have ever made. THANK YOU SO MUCH FOR WORKING WITH US THROUGHOUT THE ENTIRE PROCESS. Cee Bellisle August 2017 Contacted him about buying a home and he was great to work with. I was moving to Louisville Ky to take a new job and he walked me through the entire process. He explained to me all the different options for FHA, VA, USDA mortgage loans and credit score requirements versus Fannie Mae. Since I was a first time home buyer I needed alot of help and guidance. I would definitely recommend him. Fast to respond and available to answer questions that I or my realtor had after hours. Anderson Johnson April 2018 Wow, what a great loan officer. I was referred to him by our agent and he was great to work with. We used him for a USDA no money down loan in Shelby County and we were really impressed. We were afraid we could not buy a home since we did not have money saved for a down payment, but Joe l was able to get us a zero down loan and we even got our appraisal fee and good faith deposit back at closing. We actually got money back at closing!!! I Can't think him enough. Our family moved from our apartment in the south end of town to get our own home with 5 acres for our kids and 2 dogs, at a payment that is equal to our rent payment also. .Thanks Again Joel. May god bless you Patty Locker We contacted Joel about buying a house on our move from Ohio for my husband's job transfer with Ford. We put a lot of trust in him since we were new to the area and first time home buyers in the Louisville KY market, and he always delivered on what he said. It took us a while to find a home due to the lack of homes, but once we got one, he was always quick to respond our questions via text or email ,and kept us informed through the process. We got to meet him at the closing and he was super nice and even got us a closing gift for our home which we didn't expect at all. Super nice guy 😀!!! I would definitely recommend him for a local Home loan in the Louisville area. pam dolby I got a VA loan with Joel and he was great. He is an ex-army guy so he could relate to my past experiences of being a veteran and moving around the country a lot. I had some credit issues that required a little extra work but Joel was able to find A VA lender to approve my situation as far as having past bad credit problems and a lower credit score. We closed yesterday on our home here in Louisville and we could not be happier. We finally have a home of our own thanks to Joel . I would definitely recommend him for a mortgage loan. Great experience and closed 8 days before expected close date so we were able to move in early. larry summit I contacted Joel about the $10,000 KY Housing Grant last month and we were able to get it and I just closed on my home. He was great to work with and if you are a first time home buyer here in Louisville, I would definitely contact him. I met him at his office and he was very nice and knowledgeable and kept me informed through the process. No surprises either so I was very happy. I am new homeowner thanks to Joel . Joel Lobb Senior Loan Officer American Mortgage Solutions, Inc. 10602 Timberwood Circle Suite 3 Louisville, KY 40223 phone: (502) 905-3708 Fax: (502) 327-9119 kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.com/ Company ID #1364 | MB73346E This website is not an government agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. http://www.nmlsconsumeraccess.org/ Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. NMLS#57916 http://www.nmlsconsumeraccess.org/ . The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

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