Category: 203k FHA

Kentucky FHA loans


Qualifying for an FHA Loan in Kentucky

Kentucky FHA Loan Requirements


Kentucky FHA Mortgage Loan Lender Guidelines

Kentucky FHA Loan Requirements

The requirements for Kentucky FHA loans are set by HUD.

  • Borrowers must have a steady employment history of the last two years within the same industry or line of work. Recent college graduates can use their transcripts to supplant the 2-year work history rule as long as it makes sense.
  • Self-Employed will need a 2-year history of tax returns filed with IRS. They will take a 2-year average.
  • FHA requires a 3.5% down payment. Can be gifted from family member or from retirement savings plan, or money saved-up. Any type of cash deposits is not allowed for down payments. No exceptions to this rule!! This is one of the biggest issues I see in FHA underwriting nowadays.
  •  FHA loans are for primary residence occupancy. Not rental houses.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners’ insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 43 percent. If the Automated Underwriting System gives you an Approved Eligible you can go higher on the debt ratios
  • Borrowers must have a minimum credit score of 580 for maximum financing with a 3.5% down payment
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. Most lenders will not go below 580 to 620 score, and very few lenders will go to 580 score. It’s best to work on getting your scores up before you apply or work with a loan officer to improve them.
  • 2 years removed from Chapter 7 is required with good pay history after bankruptcy
  • 1 year removed from Chapter 13 is okay with an excellent pay history with the Chapter 13 plan and permission from trustee. You will need to qualify with the Chapter 13 payment along with new house payment. Again, scores will play into your loan pre-approval.
  • Typically, borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you’ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.


FHA 

Low Down Payment which can be 100% gift from family member or Grant Program
Seller can pay closing costs-Maximum 6% of purchase price
There is maximum mortgage amount for each county. Check FHA loan limit for your county.
Non-occupant co-signers are allowed on this program.
FHA Approved Condos-Single family home-2-4 unit properties, and PUDs are eligible.
Fast automated underwriting approval available. Also, the file can be manually underwritten by a live person to get loan approval if you do not receive approval through automated underwriting system.

FHA Foreclosure Program 

Must be HUD Owned property or FHA Foreclosure in HUD Participating Communities
$100 Down Payment than standard FHA program
580 minimum credit score
Single family, 1-4 unit properties, HUD approved condominiums, and PUDS eligible

FHA Approved Condo List Louisville Kentucky Jefferson County

FHA Approved Condos Louisville Kentucky

Condo
Name		 Condo ID /
Submission		 Address County Approval
Method		 Composition
of Project		 Comments Document
Status		 Manufactured
Housing		 FHA
Concentration		 Status Status
Date		 Expiration
Date
ARBOR CREEK CONDOMINIUMS A002562 001 ARBOR CREEK DRIVE AND ARBOR MEADOW WAY
LOUISVILLE, KY 40228		 JEFFERSON HRAP 170 Units. DB 08278, PG 0268. None Recorded/
Not Uploaded		 No 8.23% Approved 11/30/2017 11/30/2019
AUTUMN GARDENS CONDOMINIUMS A002616 001 10013 AUTUMN GARDENS WAY
LOUISVILLE, KY 40229		 JEFFERSON HRAP 10 Buildings, 45 Units. DB08290PG0253, DB09109PG0706. Exists Recorded/
Not Uploaded		 No 15.55% Approved 12/11/2017 12/11/2019
AUTUMN TRACE CONDOMINIMUM A002589 001 7520 AUTUMN POINTE DR
LOUISVILLE, KY 40214		 JEFFERSON HRAP 105 Units. None Recorded/
Not Uploaded		 No 11.42% Approved 11/29/2017 11/29/2019
BAXTER LOOP CONDOMINIUMS A007952 001 1113 BAXTER AVE
LOUISVILLE, KY 40204		 JEFFERSON HRAP 3 BUILDINGS, 28 UNITS. DB 08885,PG 0239. Exists Recorded/
Not Uploaded		 No 7.14% Approved 05/21/2019 05/21/2021
BRADFORD COMMONS CONDOMINIMUM A002615 001 BRADFORD COMONS DRIVE
LOUISVILLE, KY 40299		 JEFFERSON HRAP 196 Units. DB 09348. 8 Phases, Buildings 1-8. Phase 8, Building 8, Units 101-104, 201-204. None Recorded/
Not Uploaded		 No 31.12% Approved 09/11/2019 09/11/2021
BRADFORD COMMONS CONDOMINIMUM A002615 002 BRADFORD COMONS DRIVE
LOUISVILLE, KY 40299		 JEFFERSON HRAP Phase 8, Building 8, Units 101-104, 201-204. None Recorded/
Not Uploaded		 No 31.12% Approved 07/27/2012 09/11/2021
BROOKSHIRE VILLAGE CONDOMINIUM A002561 001 6716 WYNDE MANOR DR
LOUISVILLE, KY 40228		 JEFFERSON HRAP PHASE 1, BLDS 1-14,UNITS 1-52 DEED BK 7821 PG 16 PLAT BK 95, PGS 21-22 RECERTIFICATION DUE 7/13/11. Exists Recorded/
Not Uploaded		 No 13.46% Approved 08/23/2019 08/23/2021
CHAMBERLAIN GARDENS A007735 001 POB 23010
LOUISVILLE, KY 40223		 JEFFERSON HRAP 32 Units/4 Buildings (10500-10503, 8 Units per Building) None Recorded/
Not Uploaded		 No 31.25% Approved 06/19/2019 06/19/2021
CHATEAU SQUARE CONDOMINIUM A002690 001 1934 GOLDSMITH LANE
LOUISVILLE, KY 40218		 JEFFERSON HRAP 36 Units, 6 Buildings. Bk 4850 Pg 896, 4/27/1976. Exists Recorded/
Not Uploaded		 No 27.77% Approved 02/12/2019 02/12/2021
CHEVAL PLACE CONDOMINIUMS A002560 001 3205 CHEVAL WAY
LOUISVILLE, KY 40299		 JEFFERSON HRAP 18 UNITS ; 3 BUILDINGS Exists Recorded/
Not Uploaded		 No 38.88% Approved 09/21/2018 09/21/2020
CLARE LANE TOWNHOME A010249 001 400 CLARE LANE
LOUISVILLE, KY 40206		 JEFFERSON HRAP Multiple townhome style buildings. Total 18 units. Exists Recorded/
Not Uploaded		 No 11.11% Approved 10/03/2018 10/03/2020
COBBLESTONE CONDOMINIUM A002523 001 5137 MAGDALEN SQUARE
LOUISVILLE, KY 40241		 JEFFERSON HRAP 140 RESIDENTIAL UNITS Exists Recorded/
Not Uploaded		 No 6.42% Approved 05/08/2019 05/08/2021
COLONIAL WOODS CONDOMINIUMS A002610 001 COLONIAL WOODS COURT
LOUISVILLE, KY 40223		 JEFFERSON HRAP 67 UNITS. Exists Recorded/
Not Uploaded		 No 16.41% Approved 04/02/2018 04/02/2020
CORRELL PLACE CONDOMINIUMS A009429 001 7200 CORRELL PLACE DRIVE
LOUISVILLE, KY 40228		 JEFFERSON HRAP 3 Buildings, 20 Units. Exists Recorded/
Not Uploaded		 No 25.00% Approved 02/01/2019 02/01/2021
COTTONWOOD A002540 001 SCHOEFFE AVENUE
LOUISVILLE, KY 40206		 JEFFERSON HRAP RECORDED PB 88, PP. 23 THRU 24. RECERTIFICATION DUE 8-8-04 -LY None Recorded/
Not Uploaded		 No 37.50% Approved 05/16/2019 05/16/2021
CREEKWOOD CONDOMINIUM A002541 001 FAIRGROUND ROAD
LOUISVILLE, KY 40291		 JEFFERSON HRAP Multiple buildings. Phases 1 thru 14 approved. Total 80 units. Exists Recorded/
Not Uploaded		 No 11.25% Approved 09/13/2018 09/13/2020
CRESCENT CROSSING CONDOMINIUM A008240 001 114 CRESCENT AVE
LOUISVILLE, KY 40206		 JEFFERSON HRAP 22 units located in a two story building. None Recorded/
Not Uploaded		 No 9.09% Approved 02/28/2019 02/28/2021
CROSSINGS AT COOPER CHAPEL A002575 001 BROOK BEND WAY
LOUISVILLE, KY 40229		 JEFFERSON HRAP OK TO PROCESS – PHASES 3-5, PHASES 6-7 None Recorded/
Not Uploaded		 No 15.00% Approved 04/18/2019 04/18/2021
CROSSINGS AT COOPER CHAPEL A002575 002 BROOK BEND WAY
LOUISVILLE, KY 40229		 JEFFERSON HRAP phases 9 None Recorded/
Not Uploaded		 No 15.00% Approved 10/16/2014 04/18/2021
DORSEY HILLS CONDOMINIUM A002621 001 10601 MCMEEKIN LANE
LOUISVILLE, KY 40223		 JEFFERSON HRAP Multiple buildings. Total units 184. None Recorded/
Not Uploaded		 No 4.34% Approved 04/10/2019 04/10/2021
DOUGLASS HILLS A002694 001 800 LOGSDON CT
LOUISVILLE, KY 40243		 JEFFERSON HRAP 137 UNITS APPROVED. None Recorded/
Not Uploaded		 No 26.27% Approved 03/28/2018 03/28/2020
EVERGREEN POINT CONDOMINIUM A005762 001 250 MIDDLETOWN SQUARE
LOUISVILLE, KY 40243		 JEFFERSON HRAP Only 66 units approved. Unit(#252) is ineligible for FHA financing only. No other units may be added to this project for FHA financing. None Recorded/
Not Uploaded		 No 43.93% Approved 08/08/2018 08/08/2020
EVERGREEN POINT CONDOMINIUM A005762 002 250 MIDDLETOWN SQUARE
LOUISVILLE, KY 40243		 JEFFERSON HRAP Phase 2 Building 1 (24 units) None Recorded/
Not Uploaded		 No 43.93% Approved 02/18/2010 08/08/2020
FERNDALE GARDENS A009037 001 RENATE RD
LOUISVILLE, KY 40291		 JEFFERSON HRAP Multiple buildings. Currently 79 units completed. Phased development, upon completion there will be 107 units. Estimated date of completion 12/2017. None Recorded/
Not Uploaded		 No 20.56% Approved 08/28/2019 08/28/2021
FOX HOLLOW CONDOMINIUM A002653 001 7301-7346 FOX HOLLOW WAY
LOUISVILLE, KY 40228		 JEFFERSON HRAP APPROVED BUILDINGS: 4, 5, 6 & 7. DB 8377 PG543. 51% OWNER OCCUP. CERT. TO BE INCLUDED WITH EACH CASE BINDER. Exists Recorded/
Not Uploaded		 No 6.66% RejectedMissing documents or incomplete package submission 05/17/2013 n/a
FOX HOLLOW CONDOMINIUM A002653 002 7301-7346 FOX HOLLOW WAY
LOUISVILLE, KY 40228		 JEFFERSON HRAP Building #3. Total 6 units. Exists Recorded/
Not Uploaded		 No 6.66% Approved 01/03/2011 n/a
GARDEN PARK TOWNHOMES A002697 001 6 MILE LANE
LOUISVILLE, KY 40220		 JEFFERSON HRAP 46 units, townhome styles Exists Recorded/
Not Uploaded		 No 45.65% Approved 03/06/2019 03/06/2021
GARDINER LAKE CONDOMINIUMS A002613 001 1700 GARDINER LANE
LOUISVILLE, KY 40205		 JEFFERSON HRAP 53 units; 11 BUILDING; 7 PHASES None Recorded/
Not Uploaded		 No 22.64% Approved 11/08/2017 11/08/2019
HOLLY HOUSE CONDOMINIUM** A008753 001 1926 GOLDSMITH LANE
LOUISVILLE, KY 40218		 JEFFERSON HRAP 60 UNITS
HOLLY HOUSE CONDOMINIUM HOMES, SECTION 2		 None Recorded/
Not Uploaded		 No 8.33% Approved 09/12/2018 09/12/2020
JOHNSON GREEN AT BEULAH * A002676 001 7407 JOHNSON SCHOOL ROAD
LOUISVILLE, KY 40291		 JEFFERSON HRAP Multiple buildings. Total 187 units.
*FULL NAME FOR PROJECT: Johnson Green at Beulah Church, a Condominium		 None Recorded/
Not Uploaded		 No 23.52% Approved 07/18/2018 07/18/2020
LAKEVIEW CONDOMINIUMS A007711 001 1815 GARDINER LN
LOUISVILLE, KY 40205		 JEFFERSON HRAP 248 units-19 bldgs. None Recorded/
Not Uploaded		 No 18.14% Approved 10/05/2017 10/05/2019
(nearing expiration)
MAGNOLIA RIDGE CONDOMINIUMS A002556 001 9410 MAGNOLIA RIDGE DRIVE
LOUISVILLE, KY 40291		 JEFFERSON HRAP Multiple buildings. Total 120 units. None Recorded/
Not Uploaded		 No 30.83% Approved 03/13/2019 03/13/2021
MEADOWLARK MANOR CONDOMINIUMS A002727 001 4500 MEADOWLARK MANOR LN
LOUISVILLE, KY 40245		 JEFFERSON HRAP five tow story brick bldgs Exists Recorded/
Not Uploaded		 No 10.81% Approved 08/29/2019 08/29/2021
OAKSHIRE A002704 001 OAKSHIRE DRIVE
LOUISVILLE, KY 40299		 JEFFERSON HRAP 40 Units. Exists Recorded/
Not Uploaded		 No 50.00% Approved 02/06/2018 02/06/2020
PARK PLACE LOFTS A007516 001 400 E MAIN ST
LOUISVILLE, KY 40202		 JEFFERSON HRAP 4 story building. Total 32 residential units. Commercial space at 28%. Exists Recorded/
Not Uploaded		 No 3.12% Approved 10/20/2017 10/20/2019
(nearing expiration)
RIEDLONN A010381 001 2705 RIEDLING DRIVE
LOUISVILLE, KY 40206		 JEFFERSON HRAP 2 building with 4 units each None Recorded/
Not Uploaded		 No 0.00% Approved 12/06/2018 12/06/2020
SALEM SQUARE CONDOMINIUMS A002527 001 521 ZORN AVENUE
LOUISVILLE, KY 40206		 JEFFERSON HRAP 2 PHASES, 8 BUILDINGS, 92 UNITS.
Conversion date for project 7/1973		 None Recorded/
Not Uploaded		 No 3.26% Approved 03/06/2018 03/06/2020
SAVANNAH SPRINGS CONDOMINIUMS A007951 001 8403 MOSS GARDEN DRIVE
LOUISVILLE, KY 40219		 JEFFERSON HRAP 19 Buildings, 98 Units. DB 08618, Page 0890. Exists Recorded/
Not Uploaded		 No 22.44% Approved 06/14/2019 06/14/2021
SENECA GARDENS CONDOMINIUMS A008570 001 2645 TAYLORSVILLE RD
LOUISVILLE, KY 40205		 JEFFERSON HRAP 5 BUILDINGS; 40 UNITS None Recorded/
Not Uploaded		 No 2.50% Approved 05/02/2018 05/02/2020
SHELBY POINTE CONDOMINIUM** A002622 001 260 MOSER ROAD
LOUISVILLE, KY 40223		 JEFFERSON HRAP 53 residential units, 11 buildings None Recorded/
Not Uploaded		 No 13.20% Approved 12/21/2017 12/21/2019
SYCAMORE II A002710 001 10401-15 CADY COVE CT
LOUISVILLE, KY 40223		 JEFFERSON HRAP Contains 74 townhouse style units in 13 buldings None Recorded/
Not Uploaded		 No 14.86% Approved 07/26/2019 07/26/2021
THE CLIFF VIEW TERRACE CONDO** A002650 001 2411 BROWNSBORO RD
LOUISVILLE, KY 40206		 JEFFERSON HRAP 28 RESIDENTIAL UNITS, 2 COMMERCIAL UNITS
***legal name: The Cliff view Terrace Condominiums, A condominium property regime		 None Recorded/
Not Uploaded		 No 21.42% Approved 04/11/2018 04/11/2020
THE ORCHARDS OF APPLEGATE A008554 001 8500 APPLEGATE VILLAGE DRIVE
LOUISVILLE, KY 40219		 JEFFERSON HRAP Multiple buildings. Total 70 units. Exists Recorded/
Not Uploaded		 No 8.57% Approved 04/04/2018 04/04/2020
THE PARKVIEW CONDOMINIUMS A002714 001 8138 LAKE TER
LOUISVILLE, KY 40222		 JEFFERSON HRAP 9 BUILDINGS; 104 UNITS None Recorded/
Not Uploaded		 No 31.73% Approved 02/28/2018 02/28/2020
THE PINES, A CONDOMINIUM* A002637 001 3721 BARDSTOWN ROAD
LOUISVILLE, KY 40206		 JEFFERSON HRAP 72 UNITS; 6 BUILDINGS
*FULL NAME FOR PROJECT: THE PINES, A CONDOMINIUM PROJECT		 Exists Recorded/
Not Uploaded		 No 31.94% Approved 06/15/2018 06/15/2020
THE RIDGE AT OLD HENRY CONDO A009724 001 8303 SHELBYVILLE RD
LOUISVILLE, KY 40222		 JEFFERSON HRAP 61 RESIDENTIAL UNITS None Recorded/
Not Uploaded		 No 1.63% Approved 06/14/2018 06/14/2020
THE TAVNER COMDOMINIUMS A002532 001 2082 DOUGLASS BLVD.
LOUISVILLE, KY 40205		 JEFFERSON HRAP 3 LEVEL-18 UNITS-BRICK CONSTRUCTION. None Recorded/
Not Uploaded		 No 11.11% Approved 06/20/2018 06/20/2020
THE VILLAGE AT INDIAN FALLS A002565 001 10221 RIVERSTONE CIR
LOUISVILLE, KY 40229		 JEFFERSON HRAP FANNIE MAE FORM 1028 REC’D FOR UNITS 1-84 None Recorded/
Not Uploaded		 No 27.38% Approved 06/06/2019 06/06/2021
THE VILLAGE AT WATTERSON** A002713 001 LOCH LEA LANE
LOUISVILLE, KY 40291		 JEFFERSON HRAP 40 units
**Full legal name of the project is The Village at Watterson Woods, Village II		 None Recorded/
Not Uploaded		 No 32.50% Approved 06/21/2019 06/21/2021
THE VILLAS OF STONY FARM A002605 001 STONY FARM DRIVE
LOUISVILLE, KY 40299		 JEFFERSON HRAP 123 units, 57 brick buildings None Recorded/
Not Uploaded		 No 3.25% Approved 06/20/2018 06/20/2020
Status: Approved
Search Type: Both
Begin Date:
End Date:

Condominiums List

Message:  CONDOMINIUMS SUCCESSFULLY COMPLETED
Condominiums (HRAP/DELRAP Approval Method) as of 09/27/2019
Condominiums as of 09/27/2019
(224 records were selected, records 1 through 50 displayed)
Condo
Name		 Condo ID /
Submission		 Address County Approval
Method		 Composition
of Project		 Comments Document
Status		 Manufactured
Housing		 FHA
Concentration		 Status Status
Date		 Expiration
Date
ARBOR CREEK CONDOMINIUMS A002562 001 ARBOR CREEK DRIVE AND ARBOR MEADOW WAY
LOUISVILLE, KY 40228		 JEFFERSON HRAP 170 Units. DB 08278, PG 0268. None Recorded/
Not Uploaded		 No 8.23% Approved 11/30/2017 11/30/2019
AUTUMN GARDENS CONDOMINIUMS A002616 001 10013 AUTUMN GARDENS WAY
LOUISVILLE, KY 40229		 JEFFERSON HRAP 10 Buildings, 45 Units. DB08290PG0253, DB09109PG0706. Exists Recorded/
Not Uploaded		 No 15.55% Approved 12/11/2017 12/11/2019
AUTUMN TRACE CONDOMINIMUM A002589 001 7520 AUTUMN POINTE DR
LOUISVILLE, KY 40214		 JEFFERSON HRAP 105 Units. None Recorded/
Not Uploaded		 No 11.42% Approved 11/29/2017 11/29/2019
BAXTER LOOP CONDOMINIUMS A007952 001 1113 BAXTER AVE
LOUISVILLE, KY 40204		 JEFFERSON HRAP 3 BUILDINGS, 28 UNITS. DB 08885,PG 0239. Exists Recorded/
Not Uploaded		 No 7.14% Approved 05/21/2019 05/21/2021
BELLEBROOK RIDGE CONDOMINIUMS A007864 001 624 TRUMAN LANE
BELLEVUE, KY 41073		 CAMPBELL HRAP 2 buildings, 2 phases 48 units None Recorded/
Not Uploaded		 No 16.66% Approved 03/14/2018 03/14/2020
BELLEPOINTE COMMONS A006253 001 300 BELLEPOINTE COMMONS
BELLEVUE, KY 41073		 CAMPBELL HRAP 48 units all completed in 1989 None Recorded/
Not Uploaded		 No 8.33% Approved 02/06/2019 02/06/2021
BRADFORD COMMONS CONDOMINIMUM A002615 001 BRADFORD COMONS DRIVE
LOUISVILLE, KY 40299		 JEFFERSON HRAP 196 Units. DB 09348. 8 Phases, Buildings 1-8. Phase 8, Building 8, Units 101-104, 201-204. None Recorded/
Not Uploaded		 No 31.12% Approved 09/11/2019 09/11/2021
BRADFORD COMMONS CONDOMINIMUM A002615 002 BRADFORD COMONS DRIVE
LOUISVILLE, KY 40299		 JEFFERSON HRAP Phase 8, Building 8, Units 101-104, 201-204. None Recorded/
Not Uploaded		 No 31.12% Approved 07/27/2012 09/11/2021
BROOKSHIRE VILLAGE CONDOMINIUM A002561 001 6716 WYNDE MANOR DR
LOUISVILLE, KY 40228		 JEFFERSON HRAP PHASE 1, BLDS 1-14,UNITS 1-52 DEED BK 7821 PG 16 PLAT BK 95, PGS 21-22 RECERTIFICATION DUE 7/13/11. Exists Recorded/
Not Uploaded		 No 13.46% Approved 08/23/2019 08/23/2021
CANTERING HILLS @ STEEPLECHASE A002597 001 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP 227 Units None Recorded/
Not Uploaded		 No 16.66% Approved 02/12/2019 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 002 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 10, bldg 22, 5 units None Recorded/
Not Uploaded		 No 16.66% Approved 07/15/2011 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 003 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 10 None Recorded/
Not Uploaded		 No 16.66% Approved 08/09/2011 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 004 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 9, 4 units None Recorded/
Not Uploaded		 No 16.66% Approved 10/21/2011 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 005 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phases 11 & 12, 3 & 6 Units. None Recorded/
Not Uploaded		 No 16.66% Approved 12/14/2012 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 006 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP phase 13, 4 units None Recorded/
Not Uploaded		 No 16.66% Approved 02/06/2014 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 007 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 14, building 24, 8 units Exists Recorded/
Not Uploaded		 No 16.66% RejectedOther (specify in comments) 12/11/2014 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 008 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase XIV Building 24, 8 units None Recorded/
Not Uploaded		 No 16.66% Approved 10/22/2015 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 009 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP phase 15, building 18, 6 units, a, b, c, d, e, f None Recorded/
Not Uploaded		 No 16.66% Approved 03/16/2016 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 010 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 16, 6 units, bldg. 19, a b c d e f None Recorded/
Not Uploaded		 No 16.66% Approved 01/26/2017 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 011 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 17, 4 units, building 21 A-D None Recorded/
Not Uploaded		 No 16.66% Approved 06/28/2017 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 012 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 19, 4 units, building 11 None Recorded/
Not Uploaded		 No 16.66% Approved 08/08/2018 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 013 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 18, 2 units Building 39 None Recorded/
Not Uploaded		 No 16.66% Approved 08/08/2018 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 014 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 20, bldg. 33 2 units A & B None Recorded/
Not Uploaded		 No 16.66% Approved 02/27/2019 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 015 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 22, 4 units None Recorded/
Not Uploaded		 No 16.66% Approved 06/05/2019 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 016 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP phase 21, 6 units None Recorded/
Not Uploaded		 No 16.66% Approved 06/05/2019 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 017 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 24, 3 units – CHTH 31 ABC BUILDING 31 None Recorded/
Not Uploaded		 No 16.66% Approved 08/15/2019 02/12/2021
CANTERING HILLS @ STEEPLECHASE A002597 018 837 FOINAVAON LN
WALTON, KY 41094		 BOONE HRAP Phase 23, bldg. 32, 3 units, abc None Recorded/
Not Uploaded		 No 16.66% Approved 08/15/2019 02/12/2021
CARRIAGE HOUSE COMDOMINIUMS A005911 001 CARRIAGE HOUSE DRIVE
FORT THOMAS, KY 41075		 CAMPBELL HRAP 1 BUILDING, 30 UNITS None Recorded/
Not Uploaded		 No 26.66% Approved 02/14/2019 02/14/2021
CHAMBERLAIN GARDENS A007735 001 POB 23010
LOUISVILLE, KY 40223		 JEFFERSON HRAP 32 Units/4 Buildings (10500-10503, 8 Units per Building) None Recorded/
Not Uploaded		 No 31.25% Approved 06/19/2019 06/19/2021
CHATEAU SQUARE CONDOMINIUM A002690 001 1934 GOLDSMITH LANE
LOUISVILLE, KY 40218		 JEFFERSON HRAP 36 Units, 6 Buildings. Bk 4850 Pg 896, 4/27/1976. Exists Recorded/
Not Uploaded		 No 27.77% Approved 02/12/2019 02/12/2021
CHEVAL PLACE CONDOMINIUMS A002560 001 3205 CHEVAL WAY
LOUISVILLE, KY 40299		 JEFFERSON HRAP 18 UNITS ; 3 BUILDINGS Exists Recorded/
Not Uploaded		 No 38.88% Approved 09/21/2018 09/21/2020
CITATION POINTE A002595 001 2312 REMINGTON WAY
LEXINGTON, KY 40511		 FAYETTE HRAP PHASES 1-4, BK 70, PG 338 None Recorded/
Not Uploaded		 No 11.66% Approved 05/10/2018 05/10/2020
CLARE LANE TOWNHOME A010249 001 400 CLARE LANE
LOUISVILLE, KY 40206		 JEFFERSON HRAP Multiple townhome style buildings. Total 18 units. Exists Recorded/
Not Uploaded		 No 11.11% Approved 10/03/2018 10/03/2020
COBBLESTONE CONDOMINIUM A002523 001 5137 MAGDALEN SQUARE
LOUISVILLE, KY 40241		 JEFFERSON HRAP 140 RESIDENTIAL UNITS Exists Recorded/
Not Uploaded		 No 6.42% Approved 05/08/2019 05/08/2021
COLONIAL WOODS CONDOMINIUMS A002610 001 COLONIAL WOODS COURT
LOUISVILLE, KY 40223		 JEFFERSON HRAP 67 UNITS. Exists Recorded/
Not Uploaded		 No 16.41% Approved 04/02/2018 04/02/2020
CORRELL PLACE CONDOMINIUMS A009429 001 7200 CORRELL PLACE DRIVE
LOUISVILLE, KY 40228		 JEFFERSON HRAP 3 Buildings, 20 Units. Exists Recorded/
Not Uploaded		 No 25.00% Approved 02/01/2019 02/01/2021
COTTONWOOD A002540 001 SCHOEFFE AVENUE
LOUISVILLE, KY 40206		 JEFFERSON HRAP RECORDED PB 88, PP. 23 THRU 24. RECERTIFICATION DUE 8-8-04 -LY None Recorded/
Not Uploaded		 No 37.50% Approved 05/16/2019 05/16/2021
CREEKWOOD CONDOMINIUM A002541 001 FAIRGROUND ROAD
LOUISVILLE, KY 40291		 JEFFERSON HRAP Multiple buildings. Phases 1 thru 14 approved. Total 80 units. Exists Recorded/
Not Uploaded		 No 11.25% Approved 09/13/2018 09/13/2020
CRESCENT CROSSING CONDOMINIUM A008240 001 114 CRESCENT AVE
LOUISVILLE, KY 40206		 JEFFERSON HRAP 22 units located in a two story building. None Recorded/
Not Uploaded		 No 9.09% Approved 02/28/2019 02/28/2021
CROSSINGS AT COOPER CHAPEL A002575 001 BROOK BEND WAY
LOUISVILLE, KY 40229		 JEFFERSON HRAP OK TO PROCESS – PHASES 3-5, PHASES 6-7 None Recorded/
Not Uploaded		 No 15.00% Approved 04/18/2019 04/18/2021
CROSSINGS AT COOPER CHAPEL A002575 002 BROOK BEND WAY
LOUISVILLE, KY 40229		 JEFFERSON HRAP phases 9 None Recorded/
Not Uploaded		 No 15.00% Approved 10/16/2014 04/18/2021
DORSEY HILLS CONDOMINIUM A002621 001 10601 MCMEEKIN LANE
LOUISVILLE, KY 40223		 JEFFERSON HRAP Multiple buildings. Total units 184. None Recorded/
Not Uploaded		 No 4.34% Approved 04/10/2019 04/10/2021
DOUGLASS HILLS A002694 001 800 LOGSDON CT
LOUISVILLE, KY 40243		 JEFFERSON HRAP 137 UNITS APPROVED. None Recorded/
Not Uploaded		 No 26.27% Approved 03/28/2018 03/28/2020
EMERALD SPRINGS A002543 001 ANDERSON RD/BROMBERG-CRESCENT SPRINGS RD
CRESCENT SPRINGS, KY 41017		 KENTON HRAP 234 Units. Lots 1-22. Exists Recorded/
Not Uploaded		 No 5.55% Approved 05/09/2018 05/09/2020
EVERGREEN POINT CONDOMINIUM A005762 001 250 MIDDLETOWN SQUARE
LOUISVILLE, KY 40243		 JEFFERSON HRAP Only 66 units approved. Unit(#252) is ineligible for FHA financing only. No other units may be added to this project for FHA financing. None Recorded/
Not Uploaded		 No 43.93% Approved 08/08/2018 08/08/2020
EVERGREEN POINT CONDOMINIUM A005762 002 250 MIDDLETOWN SQUARE
LOUISVILLE, KY 40243		 JEFFERSON HRAP Phase 2 Building 1 (24 units) None Recorded/
Not Uploaded		 No 43.93% Approved 02/18/2010 08/08/2020
FAIRWAYS AT MEADOWOOD CONDO A002579 001 BURLINGTON, KY 41005 BOONE HRAP Multiple buildings, phased developement. When completed 313 units. Currently 201 units approved, phases 1 thru 33. Exists Recorded/
Not Uploaded		 No 1.14% Approved 02/12/2019 02/12/2021
FAIRWAYS AT MEADOWOOD CONDO A002579 002 BURLINGTON, KY 41005 BOONE HRAP Phase 34, 4 units, bldg. 133 None Recorded/
Not Uploaded		 No 1.14% Approved 02/01/2017 02/12/2021
FAIRWAYS AT MEADOWOOD CONDO A002579 003 BURLINGTON, KY 41005 BOONE HRAP Phase 35, 6 units, bldg. 134 None Recorded/
Not Uploaded		 No 1.14% Approved 08/09/2017 02/12/2021
FAIRWAYS AT MEADOWOOD CONDO A002579 004 BURLINGTON, KY 41005 BOONE HRAP 8 units, phase 36, building 132 None Recorded/
Not Uploaded		 No 1.14% Approved 08/09/2018 02/12/2021
Begin Date:
End Date:

Condominiums as of 09/27/2019
(58 records were selected, records 51 through 58 displayed)

Condo
Name		 Condo ID /
Submission		 Address County Approval
Method		 Composition
of Project		 Comments Document
Status		 Manufactured
Housing		 FHA
Concentration		 Status Status
Date		 Expiration
Date
TREIS CONDOMINIUMS A002535 001 MURPHAY LANE
LOUISVILLE, KY 40245		 JEFFERSON HRAP Ten buildings total 78 units. None Recorded/
Not Uploaded		 No 32.05% Approved 10/05/2017 10/05/2019
(nearing expiration)
VILLAGE OF WHITE OAKS* A002537 001 1101 POWERHOUSE
LOUISVILLE, KY 40242		 JEFFERSON HRAP 40 units, 4 buildings, 1 phase
*FULL NAME FOR PROJECT: VILLAGE OF WHITE OAKS CONDOMINIUM		 None Recorded/
Not Uploaded		 No 30.00% Approved 06/26/2019 06/26/2021
WHIPPS MILL WOODS A002715 001 WHIPPS MILL RD
LOUISVILLE, KY 40233		 JEFFERSON HRAP 36 Units. Exists Recorded/
Not Uploaded		 No 33.33% Approved 10/04/2017 10/04/2019
(nearing expiration)
WOODBOURNE CONDOMINIUMS A002583 001 2304-2310 WOODBOURNE AVE
LOUISVILLE, KY 40205		 JEFFERSON HRAP 16UNITS Exists Recorded/
Not Uploaded		 No 0.00% Approved 03/05/2018 03/05/2020
WOODRIDGE LAKE PATIO HOMES A002558 001 RIDGE LAKE DR
LOUISVILLE, KY 40272		 JEFFERSON HRAP BUILDINGS 1-4, RECORDED PLATBOOK NO 94, PG 1601, BLDG 5 & 6, DB 81 18, BLDGS 7 AND 8 DB 08769PG0574 BLDG 13,14,15 None Recorded/
Not Uploaded		 No 10.52% Approved 06/05/2019 06/05/2021
WOODRIDGE LAKE PATIO HOMES A002558 002 RIDGE LAKE DR
LOUISVILLE, KY 40272		 JEFFERSON HRAP Building 9&10 (8 units) Building 11&12 (8 units) Units 61-66 Exists Recorded/
Not Uploaded		 No 10.52% Approved 07/01/2010 06/05/2021
WOODS OF ST. ANDREWS A002564 001 295 N. HUBBARDS LN
LOUISVILLE, KY 40214		 JEFFERSON HRAP 5 building completed None Recorded/
Not Uploaded		 No 35.93% Approved 07/18/2018 07/18/2020
WORTHINGTON GLEN CONDOMINIUMS A002684 001 10200 WORTHINGTON GLEN DRIVE
LOUISVILLE, KY 40241		 JEFFERSON HRAP 10 Buildings, 268 Units. Exists Recorded/
Not Uploaded		 No 14.92% Approved 08/22/2019 08/22/2021
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

How to qualify for a Kentucky FHA loan


To be eligible for a Kentucky FHA loan, Kentucky mortgage borrowers must meet the following lending guidelines:

Have a FICO score of 500 to 579 with 10 percent down, or a FICO score of 580 or higher with 3.5 percent down.

Have verifiable employment history for the last two years.
Have verifiable income through pay stubs, federal tax returns and bank statements.
Use the loan to finance a primary residence.
Ensure the property is appraised by an FHA-approved appraiser and meets HUD guidelines.
Have a front-end debt ratio (monthly mortgage payments) of no more than 31 to 45 percent of gross monthly income.
Have a back-end debt ratio (mortgage plus all monthly debt payments) of no more than 43 to 56.9 percent of gross monthly income (lenders could allow a ratio up to 56.9 percent, in some cases).
Wait one to two years before applying for the loan after bankruptcy, or three years after foreclosure (lenders might make exceptions on these waiting periods for borrowers with extenuating circumstances).
Kentucky FHA loans vs. Kentucky conventional mortgages
KY CONVENTIONAL LOAN KY FHA LOAN
Credit score minimum 620 500
Down payment 3% to 20% 3.5% for credit scores of 580+; 10% for credit scores of 500-579
Loan terms 10- to 30-year terms 15- or 30-year terms
Mortgage insurance premiums PMI (if less than 20% down) varies based on credit score and down payment Upfront premium: 1.75% of loan amount; annual premium: 0.45% to 1.05%

Kentucky FHA loans Advantages and Disadvantages

  • You can have a lower credit score: If you haven’t established much of a credit history or you’ve encountered some issues in the past with making on-time payments, a 620 credit score — the typical magic number for consideration of a conventional mortgage — might seem out of reach. If your credit score is 580, you’re in good standing with most FHA-approved lenders.
  • You can make a lower down payment: FHA loans also give the option for a smaller down payment. With a credit score of at least 580, you can make a down payment of as little as 3.5 percent. If your credit score is between 500 and 579, you may still be able to qualify for an FHA-backed loan, but you will need to make a 10 percent down payment.

Cons

  • You won’t be able to avoid mortgage insurance: Since your credit score is lower, you’re a bigger risk of default. To protect the lender, you have to pay mortgage insurance. You can roll the upfront insurance premium into your closing costs, but your annual premiums will be divided into 12 installments and show up on every mortgage bill. If you put down less than 10 percent, you have to pay those annual premiums for the entire life of the loan. There’s no escaping them. That’s a big difference from conventional loans: Once you build up 20 percent equity, you no longer have to pay for private mortgage insurance.
  • You’ll have to meet property requirements: If you’re applying for an FHA loan, the property has to meet some eligibility requirements. The most important is the price: FHA-backed mortgages are not allowed to exceed certain amounts, which vary based on location. You have to live in the property, too. FHA loans for new purchases are not designed for second homes or investment properties.

  • FHA borrowers must pay an upfront mortgage insurance premium of 1.75 percent of the loan, plus a fixed monthly mortgage insurance of 0.85 percent of the loan.

    For borrowers with a credit score of 700 or higher, the mortgage insurance premium on a conventional loan, which varies according to several factors, might be 0.68 percent, May says. In that case, a conventional loan would be the better option.

    But borrowers with a credit score between 620 and 680 could have a private mortgage insurance premium as high as 1.69 percent, which would make the FHA loan the better option.

    Disadvantages of FHA loans

    The main disadvantage of FHA loans is that the mortgage insurance premiums must be paid for the life of the loan for borrowers who make a down payment of 3.5 percent. FHA borrowers can only eliminate their mortgage insurance payment by refinancing into another type of loan.

    “Conventional loans require less mortgage insurance,” Shalaby says. “In addition, borrowers have the option of lender-paid mortgage insurance, which wraps the insurance into the loan with a slightly higher rate.”

    Unlike FHA loans, private mortgage insurance automatically ends on conventional loans when the borrowers reach 20 percent in home equity by paying down their loan. Borrowers can also request an appraisal and earlier end to their private mortgage insurance if their home value has increased.

    One more disadvantage of an FHA loan is that FHA appraisals are stricter than those required for conventional loans, May says. Buyers purchasing a fixer-upper may have a harder time qualifying for an FHA loan unless they opt for a renovation loan.

    Every mortgage loan choice should be made on an individualized basis that takes into consideration the borrowers’ entire financial plan. First-time buyers can ask their lender for a loan comparison of an FHA loan and a conventional to see which fits their needs best.

    —

    Joel Lobb
    Mortgage Loan Officer
    Individual NMLS ID #57916
     
    American Mortgage Solutions, Inc.
     

    Text/call:      502-905-3708

    fax:            502-327-9119
    email:              kentuckyloan@gmail.com

     

Kentucky FHA Loans Compared to Kentucky Conventional Loans


When it comes to financing a home a buyer is faced with the decision of what type of loan they want. The two most common choices are FHA or Conventional. Both have their advantages and disadvantages. Follow the chart below to see which one is a fit for you!

For more information on homes available for FHA or Conventional

Which Loan is better for you?

Kentucky FHA Loans are good for borrowers who have the following:

• Credit scores less than 680.
• Less than 5% down payment and no reserves to use.
• Borrowers with past foreclosures between 3 and 7 years old.
• Borrowers with past short sales between 2 and 4 years old.
• Borrowers who need a gift for the down payment and/or closing costs, prepaid taxes and
insurance.
The FHA Mortgage Insurance premium is a premium that exists for the FHA Loan that is
paid up front and monthly by the homebuyer. This premium protects the lender should the
buyer default. They vary per state and per type of loan Kentucky home buyers qualify for. In Kentucky, upfront mortgage insurance premiums are 1.75%.
Below are the rates per type of loan:
• 15-Year Fixed with down payment more than 10%: .45%
• 15-Year Fixed with down payment less than 10%: .70%
• 30-Year Fixed with down payment more than 5%: .80%
• 30-Year Fixed with down payment less than 5%: .85%

Kentucky Conventional loans are usually reserved for the following:

• Credit scores greater than 680
• Greater than or equal to  5% down payment with reserves
• Borrowers with past foreclosures over 7 years old.
• Borrowers with past short sales between 5-7 years old.
• Borrowers who have a lot of money saved up and want to get rid of mortgage insurance within the first 5 years give or take. 20% equity position is needed for no mi

The biggest difference between conventional loans and FHA loans comes down to the mortgage insurance.  Mortgage insurance is more expensive for FHA loans, but the trade off is a lower fixed rate than conventional loans.

On Conventional loans there is no upfront mortgage insurance like FHA, and if you have a high credit score you can possibly get a lower monthly mi premium as compared to FHA where everybody gets the same mortgage insurance premium not matter your credit score or down payment. 

Lastly, FHA Mortgage insurance is for life of loan, whereas Conventional mortgage insurance or pmi it’s called, is discontinued once you reach the 80% threshold equity position of your home loan.

Again, I would not get too caught in FHA having mortgage insurance for life of loan, because most loans are only kept open a minimum of 5-7 years so a lot of times it may make sense to go with the lower rate and pay the mortgage insurance with FHA because most people don’t hold their mortgage for 30 years.

You can call or text me with your questions and we can compare the differences based on your credit score, down payment and income.

Equal Housing Lender.  NMLS#:57916 http://www.nmlsconsumeraccess.org/Rates, terms, and program information are subject to change without notice. Subject to certain approvals, terms and conditions. This is not a commitment to lend.

Not part of any government lending agency and only lending in the State of Kentucky.

Looking at FHA loans vs Conventional loans can arm you with a lot of valuable information as these are the 2 most popular mortgage loan products today. Before getting to the content let’s look at some abbreviations that will need to be defined.

  • PMI stands for Private Mortgage Insurance
  • MIP stands for Mortgage Insurance Premium
  • Credit Scores are a numerical measure of your credit worthiness, the maximum score is 850
  • Debt-to-Income Ratio measures your monthly income versus your monthly obligations. A good rule of thumb is to try to be below 45%

FHA Loans vs Conventional Loans

Conventional Mortgage Benefits

  • 20% down payment preferred to avoid PMI
  • No upfront PMI
  • 3% Down Payment Conventional Loan Option is available
  • PMI expires once principal balance is less than 78%
  • Houses do not have to be owner-occupied (so they can be used at rentals)
  • Can purchase any condominium and townhome (no FHA regulations)

Conventional Mortgage Disadvantages

  • Significant upfront investment (20% down preferred)
  • Credit score of 620 required
  • No Down Payment Assistance
  • Down Payment must be at least 5% unless you qualify for a 3% conventional mortgage
  • Harder to Qualify for a Conventional Mortgage
  • No government inspection so the home can be in any quality
  • Only a portion of a down payment can be a gift
  • Interest rates are higher than FHA loans

Most of the disadvantages of conventional mortgages stem around qualifications and resources needed upfront. If a borrower has significant resources most of these disadvantages are of little consequence.

Conventional loan rates today

FHA Loan Advantages

The major advantage to going with an FHA loan is that there are much more lax credit standards you have to meet to obtain financing. Usually, FHA mortgages require a lower down payment, can work with lower credit scores, less elapsed time is needed if you have some credit problems (charge-offs, foreclosures) and you can use a non-occupant co-borrower or co-signer (who is a relative) to help you qualify for the loan. That way you can use blended ratios. Blended ratios are debt-to-income ratios that equally blend or combine the primary borrower’s income and the non-occupant co-borrower’s income and monthly payments to help get approval for the loan. Except for HomeReady (formerly Fannie Mae HomePath) mortgages, conventional loans do not allow you to use a non-occupant co-borrower.

  • Government-backed program. Ideal for first-time home buyers
  • Easier to obtain, lower credit scores needed and lower minimum down payment
  • Down Payment minimum is 3.5%
  • All of down payment can be a gift
  • Down Payment Assistance Available (in some circumstances)
  • No reserves required
  • Minimum credit score is 500 (for 3.5% down payment)
  • edition to be approved for FHA so there are less potential upfront repairs needed
  • Lower interest rates than conventional mortgages

FHA Loan Disadvantages

  • FHA loans require the owners to live in the home
  • Mortgage Insurance Premium required if borrowers put down less than 10%
  • Private Mortgage Insurance monthly cost is higher for FHA loans
  • Government Licensed Inspector required to inspect home before sale can be approved
  • Condominiums require FHA approval
  • FHA Loans take longer to process because of government requirements and all mandated repairs have to be completed before sales can be finalized

Most of these disadvantages involve extra requirements or limits added to the process of the house (see Pros and Cons of FHA Loans). Some of these might not be disadvantages depending on one’s personal situation, but they are extra steps to note. Since FHA mortgages are a government program, more care and consideration goes into the process, which may be better in some situations.

 FHA loans vs Conventional loans

There are four important numbers in deciding which loan you will go with: credit scores, down payment amount, debt-to-income, and mortgage insurance percentage rate. Conventional mortgages and FHA home loans have different limits and rates which are important to examine. They also have important differences which affect the availability of properties, the condition of the properties one wishes to buy and how your down payment can be paid. So comparing FHA loans vs Conventional loans can sometimes be a tricky endeavor.

Down Payment Requirements

  • Conventional Mortgages require between 5 and 20% upfront
    • In certain circumstances, down payments can be as low as 3% (Conventional 97 loan program)
  • FHA Mortgages have 2 possibilities
    • If Credit Score is 500-579 then 10% down payment is required (not all lenders will even go down this low)
    • If Credit Score is 580+ then 3.5% down payment is required

Debt-to-Income Ratio

  • Conventional Mortgages’ maximum debt-to-income ratio is 43% (hard cap)
  • FHA Mortgages’ maximum debt-to-income ratio is 45%
    • Soft cap as in certain circumstances this can be adjusted up to 50%

Mortgage Insurance Premium Rates

  • FHA Mortgages
    • If Down Payment is 10% or more the percentage is .80% MIP
    • If Down Payment is less than 10% the rate is .85% MIP.

Credit Score Minimum Requirement

  • Conventional Mortgage minimum credit score
    • Most lenders will require between 620 and 640
    • Some lenders it will be as high as 700
  • FHA Mortgage minimum credit score
    • Credit Score is a minimum of 500 if putting 10% down
    • Credit Score is a minimum of 580 if not

These four numbers are important to know and will affect one’s decision to pursue a particular type of home loan. Knowing your combination of numbers as you are looking to buy a house will help buyers find the best loans for their particular situation.

Other Comparisons

  • All sellers will take conventional mortgages and some sellers will not take FHA Loans
    • People looking for short-sells won’t take FHA because FHA has a longer closing process.
    • If sellers know there are FHA repairs that are needed in order to sell their house, they will not always accept FHA financing.

Thus, if one is wanting a low-risk transaction then the FHA home loan route is a better option to pursue, even though it limits your options for homes that you might wish to buy. If one is looking to fix-up a house and raise its equity quickly then a conventional loan is going to be more beneficial because there are no requirements as to the condition of the house and it’s occupied status.

Down Payment Gifting

  • Making the Down Payments (Assistance and Gifts)
    • Conventional mortgages have no assistance but can be partially fulfilled with a gift
    • FHA Mortgages have loans and assistance programs available and the whole down payment can be fulfilled with a gift

In this article, we have given you the basic parameters of FHA loans vs Conventional loans. The conventional loans are for people who have a better financial track record and can handle a larger upfront cost. Because of PMI, conventional loans are cheaper in the long run if you can put enough of a down payment to get rid of PMI. However, there are no down payment assistance programs to help you reach that goal. FHA loans are for people who are looking to build their investment and in some cases may not have a great financial track record. FHA loans have lower down payment requirements and many grants/forgivable loans to help people wanting to buy a first house in which to live for at least a few years. It is important to assess your situation and decide which mortgage is going to work better for your circumstances.

Conclusion

Both mortgages have a lot of benefits and drawbacks because they are designed for people with different needs. This article has hopefully helped you to get a basic understanding of the different terms and conditions of different mortgage packages when looking at FHA loans vs Conventional loans. Home buying can be an emotional roller coaster and the knowledge in this article will help you navigate the various emotional struggles of home buying.

louisville-kentucky-fha-mortgage-loan-guide-1-638