Category: 100% Financing

Summary of different loan programs for Kentucky first-time homebuyers

Here’s a summary of different loan programs for Kentucky first-time homebuyers with a focus on various criteria to include credit score, down payment, debt to income ratio, work history, credit, bankruptcy, foreclosure and employment and closing time frame


Here’s a summary of different loan programs for Kentucky first-time homebuyers with a focus on various criteria to include credit score, down payment, debt to income ratio, work history, credit, bankruptcy, foreclosure and employment and closing time frame, appraisal and income documents

  1. FHA Loan:
    • Credit Score: Typically requires a minimum credit score of 580; borrowers with lower scores may still qualify but may need a larger down payment.
    • Down Payment: Minimum down payment of 3.5%.
    • Income Ratio: Front-end ratio (housing expenses to income) should not exceed 31%; back-end ratio (total debt to income) should not exceed 43%.
    • Work History: Generally requires at least two years of steady employment, though exceptions can be made.
    • Credit, Bankruptcy, and Foreclosure: More forgiving than conventional loans; may consider borrowers with past bankruptcy or foreclosure.
    • Employment and Work History: Stable employment and income are essential.
    • Time to Close: Typically around 30-45 days. Appraisal and property requirements follow FHA guidelines.
  2. VA Loan:
    • Credit Score: VA doesn’t set a minimum score; lenders may have their requirements, often around 620 or higher.
    • Down Payment: No down payment required for most borrowers.
    • Income Ratio: Flexible debt-to-income ratios, often up to 41% or higher in certain cases.
    • Work History: Stable employment history is preferred.
    • Credit, Bankruptcy, and Foreclosure: More lenient on past credit issues; may consider borrowers with past bankruptcy or foreclosure.
    • Employment and Work History: Consistent income from stable employment is crucial.
    • Time to Close: VA loans can take 45-60 days to close. Appraisal and property requirements must meet VA standards.
  3. USDA Loan:
    • Credit Score: Typically requires a minimum credit score of 640; exceptions may be possible with compensating factors.
    • Down Payment: No down payment required for eligible borrowers.
    • Income Ratio: Maximum debt-to-income ratio of 41%, though exceptions may be made with strong compensating factors.
    • Work History: Stable employment history is preferred, typically two years or more.
    • Credit, Bankruptcy, and Foreclosure: Consideration for borrowers with past credit issues, bankruptcy, or foreclosure.
    • Employment and Work History: Consistent income from stable employment is important.
    • Time to Close: USDA loans may take 30-60 days to close. Appraisal and property requirements must meet USDA guidelines.

Each loan program has specific eligibility criteria and requirements, so it’s essential for first-time homebuyers to consult with lenders or mortgage experts to determine the best fit based on their financial situation and goals.

Sure, here’s the additional information about appraisal requirements and income documentation needed for different loan programs:

  1. FHA Loan:
    • Appraisal Requirements: The property must meet FHA guidelines, including minimum property standards and safety requirements. An FHA-approved appraiser assesses the property’s value and condition.
    • Income Documentation: Generally requires recent pay stubs, W-2 forms, tax returns for the past two years, and proof of additional income sources (if applicable).
  2. VA Loan:
    • Appraisal Requirements: VA loans require a VA appraisal conducted by a VA-assigned appraiser. The appraisal assesses the property’s value and ensures it meets VA’s Minimum Property Requirements (MPRs).
    • Income Documentation: Typically includes pay stubs, W-2 forms, tax returns for the past two years, and proof of any additional income (e.g., bonuses, alimony, rental income).
  3. USDA Loan:
    • Appraisal Requirements: USDA loans require a USDA appraisal to determine the property’s value and ensure it meets USDA’s standards for safety and livability.
    • Income Documentation: Similar to FHA and VA loans, USDA loans require pay stubs, W-2 forms, tax returns for the past two years, and documentation of other income sources.

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).

Kentucky Veteran looking to secure a VA mortgage loan?

Kentucky looking to secure a VA mortgage loan?


Qualifying for a VA Mortgage Loan in Kentucky: A Comprehensive Guide by Joel Lobb

First-Time Homebuyers Kentucky Mortgage Offerings to consider

First-Time Homebuyers Kentucky Mortgage Offerings to consider


Here’s a comparison chart outlining different loan programs for first-time homebuyers in Kentucky in 2024:

Kentucky Mortgage Loan ProgramKentucky FHA LoanKentucky VA LoanKentucky USDA LoanKentucky Conventional Loan
Down Payment3.5% of the purchase priceTypically no down payment0% down payment3% – 20% down payment
Credit Score Requirement500-579: 10% down payment
580+: 3.5% down payment		No minimum credit score but typically 580 and above for lower credit score requirementsNo minimum credit score but 640 or higher and some lenders will go down to 580 with compensating factors such as lower debt to income ratio and reserves620 or higher
Mortgage InsuranceUpfront Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP)FHA loan requires both an upfront premium of 1.75% of the loan amount and an annual premium of 0.15% to 0.75%.4 Payment of upfront premiums is at the loan issuance.Funding Fee varies from VA funding fees for home buying range from 1.4% to 3.6% of the loan amount, while fees for a VA refinance range from 0.5% (for an IRRRL refinance) to 3.6 percent (for a repeat VA borrower using a cash-out refinance)Guarantee Fee
1% upfront and .35 monthly fee for life of loan 		Private Mortgage Insurance (PMI) may be required-Based on credit score and down payment and debt to income ratio-Not for life of loan
Property EligibilityMust be primary residenceMust be primary residenceMust be in eligible rural areas and primary residenceNo specific property restrictions, primary residence, second home, rentals all okay
Income LimitsNo specific income limits, but debt-to-income ratio restrictions applyNo specific income limits for VA loans, but VA has residual income requirementsIncome must not exceed 115% of the area median income-They’re are income limits-be careful on this optionTypically no income limits
Interest RatesCompetitive interest ratesTypically lower interest ratesCompetitive interest ratesCompetitive interest rates
Loan LimitsYes and varies by location VA county loan limits applyNo loan limits Conforming loan limits apply
First-Time Homebuyers Kentucky Mortgage Offerings to consider

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).