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.

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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/

Kentucky FHA loans

Qualifying for an FHA Loan in Kentucky

Home Loan Programs for Kentucky First-Time Homebuyers

Are you a first-time homebuyer in Kentucky looking to navigate the world of home loans? Understanding the various types of home loan programs available to you can help you make informed decisions about financing your dream home. In this article, we’ll explore different home loan programs, including their credit score requirements, down payment requirements, bankruptcy considerations, debt-to-income ratio requirements, loan limits, and income limits.

Kentucky FHA Loans

Kentucky FHA Credit Score Requirements:

• Minimum credit score typically ranges from 500 to 580, depending on the lender.

Kentucky FHA Down Payment Requirements:

• A down payment as low as 3.5% of the purchase price is required. 10% down payment required for scores below 580

Kentucky FHA Bankruptcy Requirements:

• Chapter 7 bankruptcy: Generally, two years must have passed since the discharge date.
• Chapter 13 bankruptcy: Typically, one year of on-time payments and approval from the bankruptcy court are required.

Kentucky FHA Debt-to-Income Ratio Requirements:

• Front-end ratio (housing expenses): Up to 31% of gross monthly income.
• Back-end ratio (total monthly debt payments): Up to 43% of gross monthly income.
• Up to 45% and 56% respectively for borrowers with higher credit scores, down payment and reserves along with good residual income

Kentucky FHA Loan Limits and Income Limits:

• Loan limits vary by county and property type. Currently $498,257 in all Kentucky Counties
• Income limits—-No income limits just loan limits.

Kentucky VA Loans

Kentucky VA Credit Score Requirements:

• While there is no official minimum credit score requirement, most lenders prefer a score of 580 to 620 or higher.

Kentucky VA Down Payment Requirements:

• No down payment is required for eligible veterans, active-duty service members, and certain spouses.

Kentucky VA Bankruptcy Requirements:

• Chapter 7 bankruptcy: Generally, two years must have passed since the discharge date.
• Chapter 13 bankruptcy: Typically, one year of on-time payments and approval from the bankruptcy court are required.

Kentucky VA Debt-to-Income Ratio Requirements:

• Flexible debt-to-income ratio requirements, with consideration given to residual income.

Kentucky VA Loan Limits and Income Limits:

• VA loan limits do not apply, but lenders may have their own limits.
• No specific income limits, but income must be sufficient to cover monthly expenses.

Kentucky USDA Loans

Kentucky USDA Credit Score Requirements:

• No minimum score, but credit score typically ranges from 580 and above, depending on the lender.

Kentucky USDA Down Payment Requirements:

• No down payment is required for eligible properties in designated rural areas.

Kentucky USDA Bankruptcy Requirements:

• Chapter 7 bankruptcy: Generally, three years must have passed since the discharge date.
• Chapter 13 bankruptcy: Typically, one year of on-time payments and approval from the bankruptcy court are required.

Kentucky USDA Debt-to-Income Ratio Requirements:

• Maximum total debt-to-income ratio is usually 45%.

Kentucky USDA Loan Limits and Income Limits:

• Loan limits vary by county.
• Income limits are based on area median income and household size.

Kentucky Conventional Loans

Kentucky Conventional Credit Score Requirements:

• Minimum credit score typically ranges from 620 to 680, depending on the lender and loan type.

Kentucky Conventional Down Payment Requirements:

• Down payment requirements can range from 3% to 20% or more, depending on the loan type and borrower qualifications.

Kentucky Conventional Bankruptcy Requirements:

• Chapter 7 bankruptcy: Generally, four years must have passed since the discharge date.
• Chapter 13 bankruptcy: Typically, two years of on-time payments and approval from the bankruptcy court are required.

Debt-to-Income Ratio Requirements:

• Maximum total debt-to-income ratio is typically 43% to 50%, depending on the loan type and borrower qualifications.

Loan Limits and Income Limits:

• Loan limits vary by property type and location.
• No specific income limits, but income must be sufficient to qualify for the loan amount.

Conclusion

As a first-time homebuyer in Kentucky, you have several home loan programs to choose from, each with its own requirements and benefits. Whether you opt for an FHA loan, VA loan, USDA loan, or conventional loan, it’s essential to understand the credit score requirements, down payment requirements, bankruptcy considerations, debt-to-income ratio requirements, loan limits, and income limits associated with each program. Working with a knowledgeable lender can help you navigate the process and find the best loan program for your financial situation and homeownership goals.

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/MBR1574The 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).

Here are action steps you can take right now to buy a home in Kentucky in 2024

Here are action steps you can take right now to buy a home in Kentucky in 2024

1. Focus on your credit score

FICO credit scores are among the most frequently used credit scores, and range from 350-800 (the higher, the better). A consumer with a credit score of 750 or higher is considered to have excellent credit, while a consumer with a credit score below 620 is considered to have poor credit.

To qualify for a mortgage and get a low mortgage rate, your credit score matters.

Each credit bureau collects information on your credit history and develops a credit score that lenders use to assess your riskiness as a borrower. If you find an error, you should report it to the credit bureau immediately so that it can be corrected.

2. Manage your debt-to-income ratio

Many lenders evaluate your debt-to-income ratio when making credit decisions, which could impact the interest rate you receive.

A debt-to-income ratio is your monthly debt payments as a percentage of your monthly income. Lenders focus on this ratio to determine whether you have enough excess cash to cover your living expenses plus your debt obligations.

Since a debt-to-income ratio has two components (debt and income), the best way to lower your debt-to-income ratio is to:

• repay existing debt;
• earn more income; or
• do both

3. Pay attention to your payments

Simply put, lenders want to lend to financially responsible borrowers.

Your payment history is one of the largest components of your credit score. To ensure on-time payments, set up autopay for all your accounts so the funds are directly debited each month.

FICO scores are weighted more heavily by recent payments so your future matters more than your past.

In particular, make sure to:

• Pay off the balance if you have a delinquent payment
• Don’t skip any payments
• Make all payments on time

4. Get pre-approved for a mortgage before you start shopping for a home loan.

Too many people find their home and then get a mortgage.

Switch it.

Get pre-approved with a lender first. Then, you’ll know how much home you can afford.

To get pre-approved, lenders will look at your income, assets, credit profile and employment, among other documents.

5. Keep credit utilization low on your credit cards

Lenders also evaluate your credit card utilization, or your monthly credit card spending as a percentage of your credit limit.

Ideally, your credit utilization should be less than 30%. If you can keep it less than 10%, even better.

For example, if you have a $10,000 credit limit on your credit card and spent $3,000 this month, your credit utilization is 30%.

Here are some ways to manage your credit card utilization:

• set up automatic balance alerts to monitor credit utilization
• ask your lender to raise your credit limit (this may involve a hard credit pull so check with your lender first)
• pay off your balance multiple times a month to reduce your credit utilization

6. Look for down payment assistance in Kentucky

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

How long is my pre-approval good for on a Kentucky Mortgage Loan?

Shopping for a Kentucky Mortgage Loan?

1. Mortgage Rates Change

Just like the stock market, mortgage rates change throughout the day. Mortgage rates you see today may not be available tomorrow. If you are in the market for a mortgage loan, be sure to check the current rates being offered by lenders. If you have already done your research and have found your dream home consider locking in your rate as soon as possible.

2. Different Lenders Charge Different Fees

Don’t expect every lender to charge the same fees for a mortgage loan. Every lender structures their fees differently, which is why it is important to shop with at least 3 lenders to compare. Next time you apply for a mortgage loan pay attention to the rates, points being charged and closing costs.

3. Lenders Can Sell Your Loan to Another Bank

Many borrowers have experience getting a mortgage loan with a certain lender only to find out that the loan has been sold to another bank. This occurs because lenders need to free up their liabilities in order to make room to give out more loans. This does not affect your mortgage whatsoever, but it’s important to pay close attention to your mortgage statement and any correspondence you receive in the mail to make sure you do not make payments to the wrong bank.

4. Your Middle Credit Score Matters

When you apply for a mortgage loan, the lender will pull your credit scores from three credit bureaus (Transunion, Equifax and Experian) to help them determined if you are credit worthy. Your middle score of the three is what lenders will use for loan qualification. However, the underwriter will review all three scores as part of the loan underwriting process. If you pull your own credit score through a website online, the credit scores displayed to you may be different than what lenders use because they use different reporting systems.

5. You Can Refinance Your Home Loan Anytime

You can refinance your mortgage anytime, but it doesn’t necessarily mean you should. Think about why you want to refinance. Is because you want to lower your monthly payments, to change the type of loan you are in or to take cash out from your equity? Whatever the reason is, make sure that it makes financial sense.

6. You Can Get a Mortgage Loan After a Foreclosure

Many homeowners have experienced a foreclosure after the recent mortgage crisis. There is good news for these borrowers because they can get a mortgage loan after foreclosure. There are waiting periods involved, for example, to apply for an FHA loan you must wait three years after foreclosure to apply. If you want to get a conventional loan the waiting period is seven years from foreclosure. For those seeking a VA loan, the waiting period is two-years.

There are exceptions to the waiting periods, but you have to show the lender that your foreclosure was caused by an event outside your control, such as losing your job or being seriously ill.

8. Good Credit Allows you to Get Better Mortgage Rates

Good credit scores mean a better rate in any type of loan, especially a mortgage loan. Your credit heavily impacts the type mortgage loan you will qualify for. To maintain a good credit report, make sure you monitored it closely. One of the advantages to good credit is that more banks will want to compete for your business, therefore giving you leverage to negotiate the closing costs.

9. Know Your Annual Percentage Rate (APR)

Knowing your APR will allow you see the true cost of your loan. While the interest rate shows the annual cost of your loan, the APR includes other fees such as origination points, admin fees, loan processing fees, underwriting fees, documentation fees, private mortgage insurance and escrow fees.

There may be more or less fees included in the ARP from what we mentioned. To be sure what fees are included in the APR, ask your lender to give you a breakdown of the closing costs included.

10. You Can Always Reduce Closing Costs

One way to reduce closing costs is to have the sellers contribute towards the closing costs when purchasing your home. This can be negotiated between the buyer and the sellers in the purchase contract. The amount the seller can contribute will depend on the type of loan. Another way to save on closing costs is to have the lender give you a credit to cover out of pocket loan costs.

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

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