Category: FHA Loans

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

KENTUCKY FHA APPROVED APPRAISERS


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.
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).

2024 Welcome Home Grant Program for Kentucky Home Buyers $20,000

Summary:
The Welcome Home Program in Kentucky offers grants up to $25,000 for military homebuyers and up to $20,000 for other eligible buyers to assist with down payment and closing costs. Eligible homebuyers must meet income criteria and other guidelines. Properties eligible for the grant must be the buyer’s primary residence and have a legally enforceable retention mechanism. Prospective homebuyers should contact an FHLB Cincinnati Member financial institution for more program information and eligibility details. Various other programs and grants are also available for first-time homebuyers in Kentucky. For further information, contact a Kentucky Mortgage Lender.


Kentucky Down payment assistance loans are available up to $20,000 for Mortgage with Welcome Home Grant 2024

Welcome Home Program Grant Program for Kentucky Home buyers in 2024
Welcome Home Program Grant Program for Kentucky Home buyers in 2024
Information for Kentucky Homebuyers
Welcome Home Program Grant Program for Kentucky Home buyers in 2024
The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) offers grants of up to $25,000 for honorably discharged veterans, surviving spouses of military personnel, and active duty military homebuyers and up to $20,000 for all other homebuyers to assist with down payment and closing costs for income eligible homebuyers through the Welcome Home Program (WHP).
 
Kentucky Homebuyers must apply and qualify for a mortgage loan with one of our Member financial institutions to utilize the grant.
 
Who are Eligible Homebuyers in Kentucky for the Welcome Grant?
 
A  Kentucky  homebuyer would be eligible for the Welcome Home grant if all of the following guidelines are met:
 
 The total income for all occupants who will reside in the home is at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located;
 A fully executed (signed by buyer and seller) purchase contract on an eligible property is in hand;
 The homebuyer has at least $500 of their own funds to contribute towards down payment and/or closing costs; and,
 If a first-time homebuyer (typically anyone who has not owned a home in the last three years), a satisfactory homebuyer counseling course is completed prior to the loan closing. Note: Applicants do not have to be first-time homebuyers.
 
What is an Eligible Property?
 
A property would be eligible if all of the following guidelines are met:
 The property will be the homebuyer’s primary residence;
 The property is a single family, townhome, condominium, duplex, multi-unit (up to four family units) or a qualified manufactured home. (Manufactured homes may be eligible if they are taxed as real estate and affixed to a permanent foundation); and,
 The property is subject to a legally enforceable five-year retention mechanism, included in the Deed or as a Declaration of Restrictive Covenants to the Deed, requiring the FHLB Cincinnati be given notice of any refinancing, sale, foreclosure, deed in-lieu of foreclosure, or change in ownership during the five year retention period.
 
How Do I Apply?
 
For more program information, homebuyers should contact a FHLB Cincinnati Member financial institution.
 
A list of Members is available at👉 List of Kentucky Mortgage Lenders for the Welcome Grant Home Program for $20,000 for 2024 KY Homebuyers
 
Kentucky has many programs and grants for first-time home buyers with no money down home loans and down payment assistance programs for 2024
,see list below and let me know if you have any questions at 502-905-3708– call or text
 
LIST BELOW👇
 
2024 Welcome Home Grant Program for Kentucky Home Buyers $20,000
 
 
Ask your loan officer about these program
 
2024 Welcome Home Grant Program for Kentucky Home Buyers $20,000
2024 Welcome Home Grant Program for Kentucky Home Buyers $20,000

 

 

Kentucky First Time Home Buyer Common Questions and Answers:

 

∘ WHAT KIND OF CREDIT SCORE DO I NEED TO QUALIFY FOR DIFFERENT FIRST TIME HOME BUYER LOANS IN KENTUCKY?

 
Answer. Most lenders will wants a middle credit score of 580 to 620 for KY First Time Home Buyers looking to go no money down. The two most used no money down home loans in Kentucky being USDA Rural Housing and KHC with their down payment assistance will want a 620 middle score on their programs.
 
If you have access to 3.5% down payment, you can go FHA and secure a 30 year fixed rate mortgage with some lenders with a 580 credit score. Even though FHA on paper says they will go down to 500 credit score with at least 10% down payment, you will find it hard to get the loan approved because lenders will create overlays to protect their interest and maintain a good standing with FHA and HUD.
 
Another popular no money down loan is VA. Most VA lenders will want a 580 middle credit score but like FHA, VA on paper says they will go down to a 500 score, but good luck finding a lender for that scenario.
 
A lot of times if your scores are in the high 500’s or low 600’s range, we can do a rapid rescore and get your scores improved within 30 days.
 

∘ DOES IT COSTS ANYTHING TO GET PRE-APPROVED FOR A MORTGAGE LOAN?

 
Answer: Most lenders will not charge you a fee to get pre-approved, but some lenders may want you to pay for the credit report fee upfront. Typically costs for a tri-merge credit report for a single borrower runs about $50 or less. Maybe higher if more borrowers are included on the loan application.

∘ HOW LONG DOES IT TAKE TO GET APPROVED FOR A MORTGAGE LOAN IN KENTUCKY?

 
Answer: Typically if you have all your income and asset documents together and submit to the lender, they typically can get you a pre-approval through the Automated Underwriting Systems within 24 hours.
 
They will review credit, income and assets and run it through the different AUS (Automated Underwriting Systems) for the template for your loan pre-approval. Fannie Mae uses DU, or Desktop Underwriting, FHA and VA also use DU, and USDA uses a automated system called GUS. GUS stands for the Guaranteed Underwriting System.
 
If you get an Automated Approval, loan officers will use this for your pre-approval. If you have a bad credit history, high debt to income ratios,  or lack of down payment,  the AUS will sometimes refer the loan to a manual underwrite, which could result in a longer turn time for your loan pre-approval answer
 

∘ ARE THERE ANY SPECIAL PROGRAMS IN KENTUCKY THAT HELP WITH DOWN PAYMENT OR NO MONEY DOWN LOANS FOR KY FIRST TIME HOME BUYERS?

 
Answer: There are some programs available to KY First Time Home Buyers that offer zero down financing: KHC, USDA, VA, Fannie Mae Home Possible and HomePath, HUD $100 down and City  and Welcome Grants are all available to Kentucky First Time Home buyers if you qualify for them.
 
 

∘ WHEN CAN I LOCK IN MY INTEREST RATE TO PROTECT IT FROM GOING UP WHEN I BUY MY FIRST HOME?

 
Answer: You typically can lock in your mortgage rate and protect it from going up once you have a home picked-out and under contract. You can usually lock in your mortgage rate for free for 90 days, and if you need more time, you can extend the lock in rate for a fee to the lender in case the home buying process is taking a longer time.
The longer the term you lock the rate in the future, the higher the costs because the lender is taking a risk on rates in the future.
Interest rates are kind of like gas prices, they change daily, and the general trend is that they have been going up since the Presidential election in November 2016.

∘ HOW MUCH MONEY DO I NEED TO PAY TO CLOSE THE LOAN?

 
Answer: Depending on which loan program you choose, the outlay to close the loan can vary. Typically you will need to budget for the following to buy a home: Good faith deposit, usually less than $500 which holds the home for you while you close the loan. You get this back at closing; Appraisal fee is required to be paid to lender before closing. Typical costs run around $500-$650 for an appraisal fee; home inspection fees.
 
Even though the lender’s programs don’t require a home inspection, a lot of buyers do get one done. The costs for a home inspection runs around $300-$400. Lastly, termite report. They are very cheap, usually $50 or less, and VA requires one on their loan programs. FHA, KHC, USDAS, Fannie Mae does not require a termite report, but most borrowers get one done.
 
There are also lender costs for title insurance, title exam, closing fee, and underwriting fees that will be incurred at closing too. You can negotiated the seller to pay for these fees in the contract, or sometimes the lender can pay for this with a lender credit. The lender has to issue a breakdown of the fees you will incur on your loan pre-approval.

HOW LONG IS MY PRE-APPROVAL GOOD FOR ON A KENTUCKY MORTGAGE LOAN?

 
Answer: Most lenders will honor your loan pre-approval for 60 days. After that, they will have to re-run your credit report and ask for updated pay stubs, bank statements, to make sure your credit quality and income and assets has not changed from the initial loan pre-approval.
 

HOW MUCH MONEY DO I HAVE TO MAKE TO QUALIFY FOR A MORTGAGE LOAN IN KENTUCKY?

 
Answer: The general rule for most FHA, VA, KHC, USDA and Fannie MAe loans is that we run your loan application through the Automated Underwriting systems, and it will tell us your max loan qualifying ratios.
There are two ratios that matter when you qualify for a mortgage loan. The front-end ratio, is the new house payment divided by your gross monthly income.  The back-end ratio, is the new house payment added to your current monthly bills on the credit report, to include child support obligations and 401k loans.
Car insurance, cell phone bills, utilities bills does not factor into your qualifying rations.
If the loan gets a refer on the initial desktop underwriting findings, then most programs will default to a front end ratio of 31% and a back-end ratio of 43% for most government agency loans that get a refer. You then take the lowest payment to qualify based on the front-end and back-end ratio.
So for example, let’s say you make $3000 a month and you have $400 in monthly bills you pay on the credit report. What would be your maximum qualifying house payment for a new loan?
Take the $3000 x .43%= $1290 maximum back-end ratio house payment. So take the $1290-$400= $890 max house payment you qualify for on the back-end ratio.
Then take the $3000 x .31%=$930 maximum qualifying house payment on front-end ratio.
So now your know! The max house payment you would qualify would be the $890, because it is the lowest payment of the two ratios.
 

Kentucky Welcome Home Grant 2024 Income Limits for the $20,000 Grant.

see below:👇 hit link for Welcome Home Grants Program 2024

2024 Kentucky Welcome Home Grant Income Limits

Use the 80% limits for the Welcome Home Program

Use the 100% limits for the Disaster Reconstruction Program

 100% limits80% limits 
 1-2 Persons3 + Persons1-2 Persons3 + Persons
Adair$               78,600$               90,390$             62,880$               72,312
Allen$               78,600$               91,420$             62,880$               73,136
Anderson$               86,270$               99,210$             69,016$               79,368
Ballard$               80,400$               93,800$             64,320$               75,040
Barren$               78,600$               90,390$             62,880$               72,312
Bath$               94,320$             110,040$             75,456$               88,032
Bell$               94,320$             110,040$             75,456$               88,032
Boone$             101,100$             116,265$             80,880$               93,012
Bourbon$               89,300$             102,695$             71,440$               82,156
Boyd$               83,040$               96,880$             66,432$               77,504
Boyle$               80,760$               94,220$             64,608$               75,376
Bracken$             101,100$             116,265$             80,880$               93,012
Breathitt$               94,320$             110,040$             75,456$               88,032
Breckinridge$               87,410$             100,521$             69,928$               80,417
Bullitt$               89,700$             103,155$             71,760$               82,524
Butler$               78,600$               91,420$             62,880$               73,136
Caldwell$               84,480$               98,560$             67,584$               78,848
Calloway$               82,560$               96,320$             66,048$               77,056
Campbell$             101,100$             116,265$             80,880$               93,012
Carlisle$               78,600$               90,860$             62,880$               72,688
Carroll$               78,600$               90,390$             62,880$               72,312
Carter$               94,320$             110,040$             75,456$               88,032
Casey$               94,320$             110,040$             75,456$               88,032
Christian$               87,590$             100,728$             70,072$               80,582
Clark$               89,300$             102,695$             71,440$               82,156
Clay$               94,320$             110,040$             75,456$               88,032
Clinton$               94,320$             110,040$             75,456$               88,032
Crittenden$               83,760$               97,720$             67,008$               78,176
Cumberland$               78,600$               90,390$             62,880$               72,312
Daviess$               86,950$               99,992$             69,560$               79,994
Edmonson$               86,650$               99,647$             69,320$               79,718
Elliott$               94,320$             110,040$             75,456$               88,032
 County100% limits80% limits
1-2 Persons3 + Persons1-2 Persons3 + Persons
Estill$             94,320$           110,040$             75,456$             88,032
Fayette$             89,300$           102,695$             71,440$             82,156
Fleming$             78,600$             90,390$             62,880$             72,312
Floyd$             94,320$           110,040$             75,456$             88,032
Franklin$             85,430$             98,244$             68,344$             78,595
Fulton$             78,600$             90,390$             62,880$             72,312
Gallatin$           101,100$           116,265$             80,880$             93,012
Garrard$             87,210$           100,291$             69,768$             80,233
Grant$             79,560$             92,820$             63,648$             74,256
Graves$             83,160$             97,020$             66,528$             77,616
Grayson$             78,600$             90,390$             62,880$             72,312
Green$             78,600$             90,390$             62,880$             72,312
Greenup$             83,040$             96,880$             66,432$             77,504
Hancock$             86,950$             99,992$             69,560$             79,994
Hardin$             86,750$             99,762$             69,400$             79,810
Harlan$             94,320$           110,040$             75,456$             88,032
Harrison$             87,250$           100,337$             69,800$             80,270
Hart$             78,600$             90,390$             62,880$             72,312
Henderson$             87,300$           100,395$             69,840$             80,316
Henry$             89,700$           103,155$             71,760$             82,524
Hickman$             79,560$             92,820$             63,648$             74,256
Hopkins$             80,640$             94,080$             64,512$             75,264
Jackson$             94,320$           110,040$             75,456$             88,032
Jefferson$             89,700$           103,155$             71,760$             82,524
Jessamine$             89,300$           102,695$             71,440$             82,156
Johnson$             94,320$           110,040$             75,456$             88,032
Kenton$           101,100$           116,265$             80,880$             93,012
Knott$             94,320$           110,040$             75,456$             88,032
Knox$             94,320$           110,040$             75,456$             88,032
Larue$             86,750$             99,762$             69,400$             79,810
Laurel$             78,600$             90,390$             62,880$             72,312
Lawrence$             94,320$           110,040$             75,456$             88,032
Lee$             94,320$           110,040$             75,456$             88,032
Leslie$             94,320$           110,040$             75,456$             88,032
Letcher$             94,320$           110,040$             75,456$             88,032
Lewis$             94,320$           110,040$             75,456$             88,032
Lincoln$             78,600$             90,390$             62,880$             72,312
Livingston$             82,320$             96,040$             65,856$             76,832
Logan$             80,760$             94,220$             64,608$             75,376
Lyon$             87,310$           100,406$             69,848$             80,325
 County100% limits80% limits
1-2 Persons3 + Persons1-2 Persons3 + Persons
McCracken$             87,130$           100,199$               69,704$             80,159
McCreary$             94,320$           110,040$               75,456$             88,032
McLean$             86,950$               99,992$             69,560$             79,994
Madison$             86,910$               99,946$             69,528$             79,957
Magoffin$             94,320$           110,040$               75,456$             88,032
Marion$               80,760$               94,220$             64,608$             75,376
Marshall$               86,030$               98,934$             68,824$             79,147
Martin$               94,320$           110,040$               75,456$             88,032
Mason$             85,920$           100,240$               68,736$             80,192
Meade$               85,790$               98,658$             68,632$             78,926
Menifee$               94,320$           110,040$               75,456$             88,032
Mercer$               86,730$               99,739$             69,384$             79,791
Metcalfe$               94,320$           110,040$               75,456$             88,032
Monroe$               78,600$               90,390$             62,880$             72,312
Montgomery$             78,600$               91,140$             62,880$             72,912
Morgan$               94,320$           110,040$               75,456$             88,032
Muhlenberg$             78,600$               91,700$             62,880$             73,360
Nelson$               85,170$               97,945$             68,136$             78,356
Nicholas$               78,600$               90,860$             62,880$             72,688
Ohio$               78,600$               90,390$             62,880$             72,312
Oldham$             89,700$           103,155$               71,760$             82,524
Owen$               78,600$               91,700$             62,880$             73,360
Owsley$               94,320$           110,040$               75,456$             88,032
Pendleton$           101,100$           116,265$               80,880$             93,012
Perry$               94,320$           110,040$               75,456$             88,032
Pike$               94,320$           110,040$               75,456$             88,032
Powell$               94,320$           110,040$               75,456$             88,032
Pulaski$             78,600$               90,390$             62,880$             72,312
Robertson$             94,320$           110,040$               75,456$             88,032
Rockcastle$             94,320$           110,040$               75,456$             88,032
Rowan$             94,320$           110,040$               75,456$             88,032
Russell$             78,600$               90,860$             62,880$             72,688
Scott$               89,300$           102,695$               71,440$             82,156
Shelby$               92,700$           106,605$               74,160$             85,284
Simpson$             82,920$               96,740$             66,336$             77,392
Spencer$               89,700$           103,155$               71,760$             82,524
Taylor$             78,600$               90,390$             62,880$             72,312
Todd$             78,600$               90,390$             62,880$             72,312
Trigg$               87,590$           100,728$               70,072$             80,582
Trimble$               86,770$               99,785$             69,416$             79,828
 County100% limits80% limits
1-2 Persons3 + Persons1-2 Persons3 + Persons
Union$             78,600$             91,420$             62,880$             73,136
Warren$             86,650$             99,647$             69,320$             79,718
Washington$             87,090$           100,153$             69,672$             80,122
Wayne$             94,320$           110,040$             75,456$             88,032
Webster$             78,600$             90,390$             62,880$             72,312
Whitley$             94,320$           110,040$             75,456$             88,032
Wolfe$             94,320$           110,040$             75,456$             88,032
Woodford$             89,300$           102,695$             71,440$             82,156

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/

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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 Loan Requirements for 2024

Originally posted on Kentucky FHA Mortgage Lender:
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…


Kentucky FHA Loan Requirements for 2024 to include Credit Fico Scores, Down Payment, Income and Job history

FHA

An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.

  • Minimum Credit Score is 500 with at least 10% down
  • Minimum Credit Score is 580 if you put less than 10% down

  • FHA Guidelines

    FHA Mortgage Guidelines

  • Upfront and Monthly Mortgage Insurance is required regardless of the Loan to Value
  • FHA Loans are only available for financing primary residences
  • Maximum Debt to Income Ratio of 50% (unless mitigating factors justify allowing a higher DTI)

Kentucky FHA Loan Requirements

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

https://youtu.be/-kZbDJVgwY8

2. Kentucky Housing Corporation Down Payment Assistance for 2024.

Kentucky Down payment assistance loans are available up to $10,000 for Mortgage

Down payment Assistance for Kentucky Homebuyers $10,000 Through KHC

KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. We offer a special loan program to help with those. Your KHC-approved lender can help you apply.

Eligibility: Both first-time and repeat home buyers purchasing a single-family dwelling. Purchase price can be no more than $481,176. Applicant’s income must be within applicable secondary market limits in effect. If KHC’s Homebuyer Tax Credit is used, then household income must be under the Homebuyer Tax Credit income limits.

Mortgage Revenue Bond (MRB) First Mortgage Products
Eligibility: Must be a first-time home buyer, unless purchasing a single-family dwelling in a targeted county. Purchase price can be no more than $481,176. Gross annual household income must be within applicable limits in effect. All non-borrowing occupants age 18 or older must disclose income and complete Non- Borrowing Occupant Form.
KHC ELIGIBILITY AND CREDIT STANDARDS OVERVIEW (Not intended to be an all-inclusive list.)
Home Buyer Eligibility
•
KHC can help both first time and repeat home buyers statewide.
•
Must be a U.S. citizen or legal status to be in U.S.
•
Applicant’s income ONLY through Secondary Market.
•
Property must be the borrower’s principal residence.
•
Borrower cannot own any other residential property at time closing for all loans with MRB Funding.
•
Any Borrower that meets both the income and purchase price limit can have access to Down Payment Assistance.
Kentucky Housing Credit Standards
•
620 minimum credit score required for FHA, VA, & RHS.
•
660 minimum credit score required for Conventional.
•
Debt ratios: 40/50%
•
Collections in most cases do not need to be paid-off in full.
•
Bankruptcies and foreclosures must be discharged two to seven years.
•
Non-taxable income can be grossed-up.
Property Eligibility
•
Both new and existing property.
•
Both new & existing Manufactured Housing.
•
With RHS only new construction Manufactured housing is allowed.
•
Purchase price limit of $481,176 for Secondary Market, MRB Loans, and Tax Credit.
•
Full appraisal required on all KHC loans.
•
With Existing Property, VA is the only loan product that requires a termite inspection.
•
A termite soil treatment certificate is required on ALL new construction
Regular Down Payment Assistance Programs (DAP) Only home buyers obtaining a Kentucky Housing Corporation first mortgage are eligible for DAP funds.
Interest Rate with DAP applicable.
Eligible KHC Mortgages FHA, RHS, VA, HFA Preferred, & HFA Preferred Plus 80 Income Eligibility
Secondary Market or Mortgage Revenue Bond Property Eligibility New and Existing Properties
Borrower Eligibility First-time and Repeat Home Buyers Amount Up to $10,000
Not required to be at maximum LTV first mortgage amount Terms 3.75% amortized over 10 years Purchase Price Limit $481,176 AUS
Borrower must qualify with additional monthly payment.
With AUS approval, can go up to 40/50% with all loans.
Required Repairs Buyer or seller must use OWN funds to pay for repairs DAP

Mortgage Revenue Bonds (MRB)

FHA
VA
RH​​S

​​​​

​​​​​Secondary Market Funding Source

  • First-time and repeat homebuyers statewide
  • 30-year fixed interest rate
  • Principal residence ONLY
  • Purchase Price Limit:  $481,176
  • Borrower must meet KHC’s Secondary Market Income Limits
Conventional Preferred ​Program
Conventional Preferred Plus 80
FHA
VA
RH​​S

Joel Lobb (NMLS#57916)
Senior Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com

 NMLS Consumer Access for Joel Lobb 

Privacy Policy

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

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

— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

Kentucky FHA Mortgage Lender

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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 are 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…

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