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).

 

Qualifying Loan Programs for First-Time Homebuyers in Louisville, Kentucky

 

Are you a first-time homebuyer in Louisville, Kentucky, looking to navigate the complexities of mortgage loans?

Understanding the various loan programs available and their qualifying criteria is crucial.

Let’s explore the key aspects of FHA, VA, and USDA loans, along with their requirements and average rates, tailored to Louisville’s housing market.

FHA Loans for Louisville Homebuyers

Down Payment: FHA loans offer a low down payment option of 3.5%, making homeownership more accessible.

Credit Score: While FHA loans are more lenient with credit scores, a score of 580 or higher is typically required for the 3.5% down payment. Lower credit scores down to 500 may be accepted with a 10% down payment.

Work History and Employment: Lenders typically look for 2 year stable employment and income history to ensure borrowers can repay the loan.

Income Ratio: Your debt-to-income ratio (DTI) should generally be 40% on the front end ratio and 50% on the backed ratio- lower, although some flexibility may exist based on compensating factors.

Bankruptcy and Foreclosure: Previous bankruptcies and foreclosures may not immediately disqualify you but may impact the waiting period before you can apply for an FHA loan. 2 years on Chapter 7, 1 year on Chapter 13, and 3 years on foreclosure.

Time to Close: FHA loans often have a quicker closing process compared to other loan types, typically within 30 to 45 days.

Home Inspections and Appraisal Reports: FHA loans require a home inspection to ensure the property meets safety and livability standards. An appraisal is also necessary to determine the home’s value.

Fixed Rates for 30 Years: FHA loans offer fixed-rate options for 30 years, providing stability in monthly payments.

Mortgage Insurance: FHA loans require both upfront mortgage insurance (UFMIP) and annual mortgage insurance premiums (MIP) no matter how much you put down and is for life of loan. Cheaper mortgage insurance on shorter term loans and larger down payments.

VA Loans for Louisville Homebuyers

Down Payment: VA loans offer a zero-down payment option, making them highly attractive to eligible veterans, active-duty service members, and select spouses.

Credit Score: While VA loans don’t have a credit score requirement, most lenders prefer a score of at least 580 to 620 or higher  for smoother approval processes.

Work History and Employment: 2 year Stable employment and income are essential, although VA loans may be more flexible with employment history, especially for veterans.

Income Ratio: The VA typically looks for a DTI of 41% or lower, but exceptions can be made based on compensating factors.

Bankruptcy and Foreclosure: Similar to FHA loans, previous bankruptcies and foreclosures may impact eligibility but may not be automatic disqualifiers. 2 years removed from Chapter 7 and 2 years removed from foreclosure. Chapter 13 one year  in plan okay . 

Time to Close: VA loans often have competitive closing times, usually within 30 to 60 days.

Home Inspections and Appraisal Reports: VA loans require a VA appraisal to ensure the property meets VA’s minimum property requirements (MPRs) and a pest inspection for termite-related issues. TERMITE REPORT REQUIRED ON ALL VA LOANS. 

Fixed Rates for 30 Years: VA loans offer fixed-rate options for 30 years, providing long-term payment predictability.

Mortgage Insurance: VA loans don’t require private mortgage insurance (PMI) but have a VA funding fee, which can be financed into the loan amount.

USDA Loans for Louisville Homebuyers

Down Payment: USDA loans offer a zero-down payment option for eligible rural and suburban homebuyers.

Credit Score: While USDA loans prefer a credit score of 640 or higher, lower scores may be considered with additional documentation.

Work History and Employment:  2 year Stable employment and income are essential for USDA loan approval.

Income Ratio: USDA loans typically require a DTI of 31% to 45% or lower, although exceptions may apply based on compensating factors.

Bankruptcy and Foreclosure: Previous bankruptcies and foreclosures may impact eligibility, and waiting periods may apply. 3 years removed from Chapter 7 and foreclosures, and one year in Chapter 13 okay.

Time to Close: USDA loans may have slightly longer closing times due to rural property eligibility checks and loan processing, often within 45 to 60 days.

Home Inspections and Appraisal Reports: USDA loans require a home inspection and an appraisal to ensure the property meets USDA’s standards. Must meet FHA appraisal requirements.

Fixed Rates for 30 Years: USDA loans offer fixed-rate options for 30 years, providing stability in monthly payments.

Mortgage Insurance: USDA loans require both upfront guarantee fees and annual fees for mortgage insurance, although the rates are typically lower than FHA’s MIP. Mortgage insurance is 1% upfront premium, and .35% a month for life of loan.

Average Rates and Mortgage Insurance Requirements

In Louisville, Kentucky, the average rates for FHA, VA, and USDA loans can vary based on market conditions, lender policies, and borrower qualifications. As of [current date], FHA loan rates in Louisville may range from [range], VA loan rates from [range], and USDA loan rates from [range], all for 30-year fixed-rate loans.

Mortgage insurance requirements differ for each loan type:

• FHA loans require both upfront mortgage insurance premiums (UFMIP) and annual mortgage insurance premiums (MIP).
• VA loans don’t require mortgage insurance but have a funding fee.
• USDA loans require upfront guarantee fees and annual fees for mortgage insurance, often lower than FHA’s MIP.

Conclusion

For first-time homebuyers in Louisville, Kentucky, understanding the qualifying criteria and nuances of FHA, VA, and USDA loans is vital. Each loan type offers unique benefits and considerations, from down payment options to credit score requirements and mortgage insurance. Working with a knowledgeable mortgage broker like Joel Lobb can help streamline the loan process and find the best financing option for your home purchase journey.

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 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).

First Home Purchase in Kentucky: FHA, VA, USDA, and KHC Loans

Mortgage Approval First Home Purchase in Kentucky: FHA, VA, USDA, and KHC Loans