Kentucky USDA loan

How to Get Approved for a USDA Mortgage Loan in Kentucky

Debt-to-Income (DTI) ratio requirements for ​Kentucky FHA, VA, USDA, and conventional mortgage loans

 Here’s a summary of the Debt-to-Income (DTI) ratio requirements for ​Kentucky FHA, VA, USDA, and conventional mortgage loans, along with examples for each:

1. ​Kentucky FHA Loan DTI Requirements:
   • Front-End DTI Ratio: Up to 31%
   • Back-End DTI Ratio: Up to 43%
   • Example: Monthly gross income of $5,000, the FHA loan allows a maximum monthly mortgage payment (including principal, interest, taxes, and insurance) of $2,150 (43% of $5,000).
2. ​ Kentucky VA Loan DTI Requirements:
   • Generally flexible with DTI ratios, but a common guideline is:
     • Back-End DTI Ratio: Up to 41%
   • Example: Monthly gross income of $6,000, the VA loan allows a maximum monthly debt payment (including mortgage, car loans, credit cards, etc.) of $2,460 (41% of $6,000).
3. ​Kentucky USDA Loan DTI Requirements:
   • Front-End DTI Ratio: Up to 29%
   • Back-End DTI Ratio: Up to 41%
   • Example: Monthly gross income of $4,000, the USDA loan allows a maximum monthly mortgage payment (including taxes and insurance) of $1,160 (29% of $4,000).
4. ​Kentucky Conventional Loan DTI Requirements:
   • Front-End DTI Ratio: Up to 28%
   • Back-End DTI Ratio: Up to 36-45% (may vary based on the lender and loan program)
   • Example: Monthly gross income of $7,000, a conventional loan may allow a maximum monthly debt payment (including mortgage, car loans, credit cards, etc.) of $2,520 to $3,150 (36-45% of $7,000).

How to calculate your front-end DTI for a Kentucky Mortgage Loan Approval

Your front-end DTI is calculated by dividing your monthly housing costs by your monthly gross income. Front-end DTI for renters is simply the amount paid in rent, whereas for homeowners it is the sum of mortgage principal, interest, property taxes, and home insurance (i.e., your PITI) divided by gross monthly income.

From above, if that $2,800 in debt payments is attributable to $1,500 in housing costs and $1,300 in non-housing costs, then your front-end DTI is $1,500/$5,000 = 30% (and your back-end ratio is still 56%, as calculated above).

How lenders use your DTI for a Kentucky Mortgage Loan Approval

Kentucky Mortgage lenders typically use DTI (along with other variables) to determine whether or not you qualify for a loan, and to help determine your Kentucky mortgage rate. A high front-end DTI raises red flags with lenders because it is commonly associated with borrower default. In fact, reducing front-end DTI to reduce the risk of homeowner default was one of the main objectives of the loan modification programs introduced by the government in 2009.

There are specific limits for DTI that are used as cut-off points when evaluating borrowers. Current DTI limits for conventional conforming mortgage loans are typically 28% on the front end and 36% on the back end, though these limits are slightly higher for government subsidized Kentucky FHA loans.

While there are certainly other factors to consider when determining our eligibility for financing (e.g., credit score, etc.), your DTI is an important determinant that you should be aware of. By working to improve it, you can make yourself a better credit risk, and thus get more favorable treatment from lenders.

Two obvious ways to improve DTI are to increase your income and/or decrease your debt. Both are solid goals.

 

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).

Posted by Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA 

Welcome Home Grant in Kentucky

Kentucky Welcome Home Grant Program Guidelines

The Kentucky Welcome Home Grant is out of funds. 

 

 

There are various types of down payment assistance, even if you have student loans.

Here are a few:

• FHA loans – federal loan through the Federal Housing Authority
• USDA loans – zero down mortgages for rural and suburban homeowners
• VA loans – if military service
• Kentucky Housing Down Payment Assistance of $10,000

There are federal, state and local assistance programs as well so be on the look out.

If you want a personalized answer for your unique situation call, text, or email me or visit my website below:

 

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/

Kentucky Appraisal for FHA, VA, USDA and Fannie Mae Home Loans

What is an Appraisal?

An appraisal is a valuation of property by an independent, licensed professional known as the appraiser.
The appraiser will review the home itself along with comparable homes in the area and generate a full report on the value of the subject property. They will schedule a visit to inspect, measure, and take photos of the home. An appraisal protects not only the lender’s investment but also you, the buyer.

What if my home doesn’t appraise for the asking sales price?

There are a couple of options in the event that the home value comes in lower than the sales price.

• Review of the report by the real estate agents. Additional comparable home sales or comments are
  then submitted to the appraiser for review and comment;
• The seller may lower the price of the home;
• The buyer may opt to increase the down payment;
• The numbers stay the same and the loan to value changes. The loan is based on the lower of the
  sales price or appraised value. In some situations, a low appraisal does not change the loan terms.
  In others, we make an adjustment to the loan itself without changing the sales price or increasing
  the down payment; or
• A combination of some of the above.
• 
  When do I pay for an appraisal?
• 
  Appraisers require payment at the time of service. The appraisal funds are collected at the time of order. Even if you opt not to proceed with the home purchase after the appraisal is completed, the appraiser still requires payment. Appraisals have to go through appraisal management companies and the average costs of an appraisals for FHA, VA, USDA and Fannie Mae Home loans in Kentucky around $550 for conventional loans to $600 for Government backed appraisals.

When will I receive a copy of my appraisal?

Appraisals are ordered upon receipt of your intent to proceed, payment and the permission to order (once your home inspection process is complete). Most appraisals are completed in 5-7 business
days.

VA appraisals often take an average of 10 business days to complete. Rush appraisals may be available as needed (subject to additional fee).

What if there are required repairs that need to be done before I can purchase the home?

Typically, repairs will need to be completed before we are able to close and fund your mortgage.

The realtors will negotiate and work together with the seller to make the required repairs to the home. A final inspection by the appraiser will be needed to ensure the work is complete.

What is an inspection and how is it different than an appraisal?

An appraisal is used to determine a home’s market value, while an inspection examines the condition of the home and its components. We always suggest hiring an inspector to show you the functionality and safety features of the home. An inspector will examine items such as the roof, electrical,
plumbing, and appliances.

He or she will note any minor or major repairs that should be addressed
prior to closing.

Locate an Active Kentucky Appraiser👇

Active Appraisers by County    – 584K

Active Appraisers by Last Name    – 612K

Active Appraisers by City    – 586K

Kentucky FHA, VA, USDA Appraisal Requirements for Mortgage Loans.

Joel Lobb
Mortgage Loan OfficerIndividual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119

email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

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. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/

How to get approved for a mortgage in Kentucky as a first-time homebuyer

How to get approved for a mortgage in Kentucky as a first-time homebuyer using FHA, VA, USDA, and Kentucky Housing Corporation (KHC) down payment assistance programs with Joel Lobb’s expertise, here are the steps you can follow:

1. Credit Check and Improvement if Necessary:

   • Check your credit score and credit report.
   • Improve your credit score if needed by paying off debts and resolving any issues on your credit report.

2. Financial Assessment:

   • Assess your financial situation, including income, savings, and debts.
   • Determine how much you can afford for a down payment and monthly mortgage payments.

3. Explore Loan Options:

   • Research FHA, VA, USDA, and KHC loan programs to understand their requirements, benefits, and eligibility criteria.
   • Discuss with Joel Lobb to get insights into each program’s pros and cons based on your financial situation.

4. Pre-Approval Process:

   • Apply for pre-approval with Joel Lobb’s assistance.
   • Submit necessary documents such as income statements, tax returns, bank statements, and employment history.

5. Down Payment Assistance Programs:

   • Explore down payment assistance programs offered by KHC or other organizations.
   • Understand the eligibility criteria and application process for these programs.

6. Property Search and Selection:

   • Start searching for homes within your budget and preferred location.
   • Consider factors such as neighborhood amenities, school districts, and property value trends.

7. Make an Offer and Negotiate:

   • Work with Joel Lobb to make a competitive offer on a property you like.
   • Negotiate terms such as price, closing costs, and seller concessions.

8. Loan Application and Processing:

   • Once your offer is accepted, complete the loan application process with Joel Lobb.
   • Provide any additional documentation required by the lender.

9. Home Inspection and Appraisal:

   • Schedule a home inspection to identify any potential issues with the property.
   • Arrange for an appraisal to determine the home’s value.

10. Closing Preparation:

    • Review the closing disclosure and loan terms.
    • Prepare funds for closing costs, down payment, and other expenses.

11. Closing Day:

    • Attend the closing meeting with Joel Lobb and sign all necessary documents.
    • Complete the transfer of ownership and receive the keys to your new home.

Throughout this process, Joel Lobb can provide valuable advice, assistance, and support to help you navigate the complexities of obtaining a mortgage and buying your first home in Kentucky

 

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).