FHA Mortgage Loan Limits for Kentucky (KY) 2011

FHA Mortgage Loan Limits for Kentucky (KY) 2011.


3 thoughts on “FHA Mortgage Loan Limits for Kentucky (KY) 2011

  1. Pingback: Home Mortgage Tips, mortgage, loan, foreclose, fraud, price, bank

  2. Multiple FHA Mortgages – Tip of the day

    4155.1 4.B.2.c FHA-Insured Mortgages on Principal Residences and Investment Properties

    To prevent circumvention of the restrictions on making FHA-insured mortgages to investors, FHA generally will not insure more than one principal residence mortgage for any borrower. FHA will not insure a mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured will be the only one owned using FHA mortgage insurance

    Any person individually or jointly owning a home covered by an FHA-insured mortgage in which ownership is maintained may not purchase another principal residence with FHA insurance, except in certain situations as described in HUD 4155.1 4.B.2.d.

    Exception: Properties previously acquired as investment properties are not subject to these restrictions.

    References: For more information on

    exceptions to the above-stated policy, see HUD 4155.1 4.B.2.d

    investment property requirements, see HUD 4155.1 4.B.4, and

    the dwelling unit limitation for investors, see HUD 4155.1 4.B.4.d.

    4155.1 4.B.2.d Exceptions to the FHA Policy Limiting the Number of Mortgages Per Borrower

    The table below describes the exception situations in which FHA does not object to borrowers obtaining multiple FHA-insured mortgages.

    Note: To determine the eligibility of a borrower for one of the exceptions in the table below, the underwriter must consider the

    length of time the previous property was owned by the borrower, and

    circumstances that compel the borrower to purchase another residence with an FHA-insured mortgage.

    Important: In all cases other than those listed below, the borrower is not eligible to acquire another FHA-insured mortgage until he/she has either

    paid off the FHA-insured mortgage on the previous residence, or

    terminated ownership of that residence.

    Policy Exception
    Eligibility Requirements

    A borrower may be eligible to obtain another FHA-insured mortgage without being required to sell an existing property covered by an FHA-insured mortgage if the borrower is

    relocating, and

    establishing residency in an area outside reasonable commuting distance from his/her current principal residence.

    If the borrower subsequently returns to the area where he/she owns a property with an FHA-insured mortgage, he/she is not required to re-establish primary residency in that property in order to be eligible for another FHA-insured mortgage.

    Note: The relocation need not be employer-mandated to qualify for this exception.

    Increase in family size
    A borrower may be eligible for another home with an FHA-insured mortgage if the number of his/her legal dependents increases to the point that the present house no longer meets the family’s needs. The borrower must provide satisfactory evidence

    of the increase in dependents and the property’s failure to meet family needs, and

    that the Loan-To-Value (LTV) ratio equals 75% or less, based on the outstanding mortgage balance and a current appraisal. If not, the borrower must pay the loan down to 75% LTV or less.

    Note: A current residential appraisal must be used to determine LTV compliance. Tax assessments and market analyses by real estate brokers are not acceptable proof of LTV compliance.

    Vacating a jointly owned property
    A borrower may be eligible for another FHA-insured mortgage if he/she is vacating a residence that will remain occupied by a coborrower.

    Example: A couple is divorcing and the vacating ex-spouse will purchase a new home.

    Non-occupying coborrower
    A borrower may be qualified for an FHA-insured mortgage on his/her own principal residence even if he/she is a non-occupying coborrower with a joint interest in a property being purchased by other family members as their principal residence with an FHAinsured mortgage.

    Important: Under no circumstances may investors use the exceptions described in the table above to circumvent FHA’s ban on loans to private investors and acquire rental properties through purportedly purchasing “principal residences.”

    Thank You!

  3. Pingback: Your Questions About Fha Home Loans Rates | Home Equity Online Loans

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