Low and no money down home loans – wave3.com-Louisville News, Weather & Sports


Low and no money down home loans – wave3.com-Louisville News, Weather & Sports.

 

Low and no money down home loans

LOUISVILLE, KY (WAVE)- Springtime is always a popular time to house hunt and potential buyers often don’t need much when it comes to a down payment.   A recent survey by Lending Tree finds the average money down is just over 12% which means a lot of people are putting down far less.

Thanks to government loans and programs, low or even no-money down mortgages are not just possible, they’re plentiful and many people are surprised to find they qualify.

Of course, VA is out if you’re not a veteran or a veteran’s widow, but two other government funded loan programs are viable options, turning paychecks into the property.

As 23 year old Lacey Lamon shows our WAVE TV camera around her new home, she giggles with pride, pointing out the 2 car garage, the landscaping and once inside, the stainless steel appliances.

“I’ve had a ton of people asking me, ‘where did you get the money to put down a down payment?’, and once I tell them I didn’t have to they’re just really surprised.”

Lacey’s loan officer at Citizens Union Bank in Shelbyville, Nathan Poole agrees that many are shocked to find out the types of mortgages available that don’t require the traditional 20% down.

“There’s a lot of good home buyers out there” said Poole, “that just don’t have the traditional 20% down for a conventional loan.”

He’s helped countless people like Lacey own a home using government loans.  “It’s just a matter of meeting guidelines.  The debt to income ratio” Poole said.

For both the popular FHA and the lesser known USDA Rural Housing Service (RHS) loans, the borrower must have a credit score of 640.
FHA loans require at least 3 1/2% down, and there’s a loan limit just over $300,000.  For USDA’s RHS loans, there’s an income limit that’s not much higher than the average income in the area of the home.  And the home must be in a qualifying area.  Jefferson County homes do not qualify for RHS loans, but homes in all of Shelby, Oldham and Spencer Counties and in pockets of Bullitt County do qualify.

Poole crunched the numbers on both loan types for Lacey and “the RHS just seemed like the best fit” she said.

With no money down and the lowest monthly payment.  Poole says between the two option, RHS is often the way to go.

All low or no down payment loans come with a price called PMI, a Private Mortgage Insurance that the lender charges so that the buyer can get the loan without that 20% down.

The PMI is more costly up front on an RHS loan, but Poole says the monthly premium added in on the FHA loan is much higher and in the end will cost more.

“Couple that with the fact, you don’t have to make a down payment and 99 out of 100 times the RHS deal is better than the FHA deal” Poole said.

Low or no money down mortgage options are a surprising welcome mat to lots of potential home buyers often giving people the key to home affordability.

Another low  money down option is a conventional loan with as little as 5-percent down, but if your credit score is below 740 you’ll get penalized with a higher interest rate and you’ll pay PMI with this too.

Some other guidelines apply with these loans, like a buyer can’t own a home while getting a USDA RHS loan, but if you sell your home, then you may qualify for the loan.

If you’re in the market, it may be worth the time to crunch the numbers if you qualify.

@kentuckyloan
12:39 PM Aug 8
Joel Lobb (NMLS#57916) Senior Loan Officer 502-905-3708 cell 502-813-2795 fax jlobb@keyfinllc.com Key Financial Mortgage Co. (NMLS #1800)* 107 South Hurstbourne Parkway* Louisville, KY 40222*http://mylouisvillekentuckymo​rtgage.com
Advertisements

19 thoughts on “Low and no money down home loans – wave3.com-Louisville News, Weather & Sports

  1. Pingback: URL

  2. Fantastic post, very informative. I’m wondering why the other specialists of this sector do not notice this. You should proceed your writing. I’m confident, you’ve a huge readers’ base already!|What’s Happening i’m new to this, I stumbled upon this I have found It absolutely helpful and it has aided me out loads. I am hoping to give a contribution & aid other users like its helped me. Great job.

  3. Pingback: Vibratorvibrator kopenvibrator bestellenvibrator winkel sexshop

  4. Pingback: http://installmentloansgroup.com/

  5. Pingback: online payday loans

  6. Pingback: online loans

  7. Pingback: Neon Open Sign 97N

  8. Pingback: Model 97N Neon Open Signs

  9. Pingback: how to get rid of dandruff

  10. Pingback: IbCbET

  11. Pingback: Bullitt County Kentucky USDA Home Loan and Rural Housing Loans for Bullitt County KY « Louisville Kentucky Mortgage Loans

  12. Pingback: Giles

  13. Hi there just wanted to give you a quick heads up.
    The text in your article seem to be running off the screen in Opera.

    I’m not sure if this is a formatting issue or something to do with web browser compatibility but I figured I’d
    post to let you know. The style and design look great though!
    Hope you get the problem fixed soon. Cheers

  14. Pingback: Low and no money down home loans – wave3.com-Louisville News, Weather & Sports | Kentucky VA Mortgage Home Lender

  15. Include a clove or two of garlic in your diet every day.
    Although it is used in cooking, it has been used both culinary and
    medicinally for over 5000 years in the Chinese and
    Indian cultures. There are however, additional reasons why this aromatic
    root is used in the preparation of food.

  16. This is an a must have gain CarLoan2 has for people
    searching for Missouri bad credit credit card debts from various auto
    financing companies. The approval process is rapid,
    too. Moreover, having a down payment or get a cosigner with a
    good fuel economy. It determines the interest rates steadily drop around you, while you’re still stuck with the forking out the same high percentage payment every month.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s