Can you get a USDA Rural Housing loan with the Government Shutdown in 2019?


Government Shutdown USDA Loans KY

 

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USDA INCOME LIMITS FOR 2019 KENTUCKY RURAL HOUSING LOANS

 

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Zero-Down Options Mortgage Loans in Kentucky

While Kentucky FHA and conventional, PMI-backed loans are appealing options for cash-strapped buyers, some borrowers may be eligible for mortgages with no down payment at all. The Veterans Affairs, or VA, loan program is one such option, although you have to be a veteran or active member of the military to take advantage (spouses of a service member who died or was disabled while on duty also qualify).

There’s no minimum credit score required to obtain a VA loan, and you don’t have to pay mortgage insurance on the loans, which are backed by the Department of Veterans Affairs. Instead, borrowers pay a one-time funding fee. You’d pay 2.15 percent of the mortgage amount if your loan covers 100% of the sale, although the fee is lower when you make a down payment.

Like VA loans, those offered by the United States Department of Agriculture also forgo the down payment requirement. Because the program is billed as a way to help families in rural areas, it’s easy to dismiss these loans out of hand. But the reality is, a lot of suburbs fall within the geographical boundaries established by the USDA. In fact, well over 90 percent of the land in the U.S. is eligible (you can do an easy address search here to find out).

As if the zero-down policy wasn’t enough, USDA mortgages also offer attractive interest rates and lower insurance premiums than FHA and conventional loans. You don’t need particularly high credit score to qualify, either – a FICO north of 580 is typically all you need.

But here’s the rub: You do have to meet the program’s goal of serving “low- to moderate-income households.” In practical terms, that means your family can’t bring in more than 115% of the median income in your region. For those who fall within those somewhat narrow guidelines, it’s a tough one to beat.

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


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

http://www.nmlsconsumeraccess.org/
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#57916http://www.nmlsconsumeraccess.org/

— 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.

 

Kentucky USDA Mortgage Lender for Rural Housing Loans

USDA Rural Housing Loans in Kentucky Cannot Be Closed Currently!

The U.S. Department of Agriculture will not issue new Kentucky  USDA Direct Loans or Kentucky Guaranteed Loans 502.

Current Scheduled closings of  Kentucky Direct Rural Housing Loans are being canceled and unless your guarantee was previously issued for a Guaranteed Loan, those may or may not be closed, depending on the lender.

Check with your USDA lender immediately if you’re getting a USDA loan or had planned to use the program to buy a home; you might have to put off your purchase until the shutdown is resolved.

2019 income limits for kentucky USDA Guidelines for Credit and Income Limits2019 income limits for kentucky USDA Guidelines for Credit and Income Limits

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIuUSDA Rural Housing Lender for Kentucky

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

Text/call:      502-905-3708

fax:     …

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Tips for first-time homebuyers in Kentucky


Ready to get house hunting? Not so fast…you’ve got a little homework to do. But don’t worry, this is the kind of homework that’s going to save you money in the long run!

Source: Tips for first-time homebuyers

Shopping for your first home? Here are some key pointers to keep in mind as you undertake the process of qualifying for a loan and finding the place of your dreams.

What you need to do before you start house hunting

Ready to get house hunting? Not so fast…you’ve got a little homework to do.

But don’t worry, this is the kind of homework that’s going to save you money in the long run.

Make sure your credit is in good working order

If you’re in the market for a mortgage, begin by visiting myFICO.com and getting your true credit score.

If you and a partner or spouse want to buy a home, you may want to try to qualify for mortgage underwriting on just the income of the person who has a better score; most lenders will base your rate on the lower score if you’re a couple.

In addition to your credit score, you’ll also want to pull a free copy of your credit reports at AnnualCreditReport.com. Check all three reports at once from Equifax, Experian and TransUnion.

Go through them thoroughly. You’re looking for two things in particular: any errors and any unpaid collections.

Errors technically should take 30 days to correct once your inform the bureau and creditor of their mistake. But in actuality, the process can take up to three or four months. So that’s why you want to get going on this early before you’re house hunting.

Should you run into a problem getting a legitimate error removed from your credit report, follow these steps.

When it comes to unpaid collections, you want to make sure there are no surprise delinquencies eating up your credit. If there are, many times they’ll be small piddling bills of a medical nature. Get those things paid off pronto before you apply for a mortgage.

Pre-qualify for a mortgage

It’s very important to pre-qualify for a mortgage before you start the formal shopping process. By doing this, you can get an idea of what kind of home you can afford and what the monthly payment will look like.

But here’s a warning: You’ll be approved for a higher home purchase price than would probably make sense in your life. It’s up to you to think through what that translates to as a monthly payment.

Don’t forget to add to that monthly taxes and insurance, along with possible repairs and maintenance that you wouldn’t pay when you’re a renter.

So look at the payment you’re facing and be realistic. Is it a payment level you can handle or will it make you miserable — what’s often called being “house poor”?

Where should you get pre-qualified?

My top choice for you to get a mortgage is at a credit union.

Years ago, credit unions weren’t the best place to look for a mortgage. But that was then and this is now. Today, credit unions are a great source for mortgages, especially if you’re looking for something more creative.

Credit unions make sense particularly for shorter term loans or mortgage refinances with terms of 7 years, 10 years, and 15 years. Many credit unions have low or no closing costs in return for bumping up the interest rate just a bit.

You’ll also want to get a quote from mortgage broker or mortgage banker. The latter has their own source of funds to lend out. The former is a salesperson who shops around for a loan for you.

Finally, you might also try small local banks — even though there are not many of them left — or even possibly a regional bank.

One place not to shop for a mortgage? At the giant banks. They charge much more for loans than the other sources named here.

Be sure to get more than one mortgage quote

Most people only get one mortgage quote. That’s the wrong way to go about it. You’ll want to get quotes from multiple lenders.

Mortgage lending is very competitive and to go with just a single lender won’t put your quote out there for competition. Plus, when you have more than one quote, you can play your top two quotes off each other and make them win your business. In some cases, you they may make you a better offer.

But it’s not just the interest rate that’s important…

Pay attention to points and closing costs

Beyond the interest rate, you’ll want to know about points and closing costs.

Each point is 1% of the amount of money you’re borrowing. A lot of people will quote you a low rate and they won’t disclose the points you have to pay to get that rate unless you ask them directly.

Meanwhile, when it comes to closing cost, the statement of closing costs that a lender gives you is written in stone. They can not exceed that statement under the law. So that give you real numbers you can compare from lender to lender.

BONUS TIP: When you apply for a mortgage, you’ll also face a variety of other junk fees. Many of them can negotiated down or away altogether. Know the junk fees so you can take action!

Minimize the window of time during which you get mortgage quotes

Here’s another warning: Each time a lender pulls your credit to give you a quote for a mortgage interest rate, it will ding your file.

You can minimize the damage by getting all quotes within a 14-day period. That way it doesn’t look you’re applying for multiple loans from multiple lenders each time.

Be timely with your paperwork

As you go through the lending process, you will have to do a lot of paperwork. Get your lender the info right away when they ask for it. Then document that you got it and you gave it to them.

The last thing  you want is to have a finger pointed at you for being negligent with paperwork when there’s a problem and you can’t close on time.

How much down payment is necessary?

For most people, the FHA Loan Program generally allows you to bring the least amount of money to the closing table possible. Most FHA loans require 3.5% down payment of the purchase price. If you don’t go the FHA route, many loans will require 20% down payment.

Just know that if you don’t put down 20%, you’ll typically have to pay private mortgage insurance (PMI) on both FHA and traditional loans.

Meanwhile, if you’re a veteran, VA loans require zero down payment — and they don’t require mortgage insurance, either.

Foreclosure or short sale?

OK, so you’ve been approved for the loan. Great!

I am neutral on the issue of whether you should buy a foreclosure, a short sale or just a home that somebody needs to get rid of because of divorce, death or relocation.

The latter will generally be in better shape and condition than a short sale. And foreclosures look downright sad many times.

I bought one foreclosure during the depressed economic cycle of last decade and it required expensive TLC to nurse it back to health. So if you do opt for the foreclosure route, you’ve got to build rehabilitation money into your budget.

I also want you to comparison shop for owner’s title insurance any time you buy a foreclosure.

As you start to look at properties, you want an agent who “farms” the neighborhood where you’re most interested in buying a home. That means they’ll have the inside scoop on available properties and can make the process much easier.

I also want you to look at a ton of homes, both online and in person, so you can target what’s a deal and what’s not. Know the neighborhood where you’re buying.

For women in particular, drive around the neighborhood at night and see if you’re still comfortable then.

Kentucky Home Buyers. Purchase a Home No Money Down.



I can answer your questions and usually get you pre-approved the same day. 

Call or Text me at 502-905-3708 with your mortgage questions.

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

 

fax:            502-327-9119

What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan?


What is the minimum credit score I need to qualify for a Kentucky mortgage currently?

Question:
What is the current minimum credit scores needed to qualify for a Kentucky mortgage Loan?
Answer:
The minimum credit score needed to qualify for a Kentucky mortgage depends on the type of loan program you are looking to obtain, this could be the reason that you have received conflicting answers. The most common types of mortgage are Conventional, FHA, USDA, VA, and KHC mortgage loans in Kentucky. I’ll explain each briefly below and the minimum credit score needed to qualify for each loan program. Keep in mind these are continuously changing and can vary by lender do to credit overlays.
Kentucky Conventional or Fannie Mae  
Conventional loans make up the majority of mortgages in the US. They are also known as conforming loans, because they conform to specific guidelines set by Fannie Mae and Freddie Mac.
  • Minimum Credit Score is 620
  • The maximum loan amount varies by Geographical Area , for 2020 it is between $510,400
  • You can use a conventional loan to buy a primary residence, second home, or rental property
  • Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer many loan terms usually from 10 to 30 years
  • Down payments as low as 3% and 5% depending on Home Ready or straight conventional loan.
  • No monthly mortgage insurance with a down payment of at least 20%
  • Max Debt to Income Ratio of 50%
KENTUCKY FHA MORTGAGE
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
  • The maximum loan amount varies by Geographical Area, for 2020 it is between $331,760
  • 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) up to 57% in some instances with strong compensating factors.
KENTUCKY USDA RURAL HOUSING LOAN 
    • 100% Financing
    • Cities and towns located outside metro areas-see link (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
    • Do NOT have to be a Kentucky First Time Home Buyer
    • No Down Payment
    • 30 year low fixed rate loans
    • No Prepayment Penalty
    • Great Low FIXED Interest Rates
    • No max loan limits, just income limits
    • Possible to Roll Closing Costs into Loan if Appraises Higher
    • No Cash Reserves Required
    • UNLIMITED Seller Contribution toward Closing Costs
    • 100% Gifted Closing Costs allowed
    • Primary Residents only (no rentals/investment properties)
    • Debt to income ratios no more than 45% with GUS approval and 29 and 41% with a manual underwrite.
    • Only Need a 580 Credit Score to Apply*** Most USDA loans need a 620 or score higher to get approved through their automated underwriting system called GUS. 640 usually required for an automated approval upfront.
    • No bankruptcies (Chapter 7) last 3 years and no foreclosure last 3 years. If Chapter 13 bankruptcy possible to go on after 1 year
     
  • KENTUCKY VA Mortgage
  • 100% Financing Available up to qualifying income and entitlement
  • Must be eligible veteran with Certificate of Eligibility. We can help get this for veterans or active duty personnel.
  • No Down Payment Required
  • Seller Can Pay ALL Your Closing Costs
  • No Monthly Mortgage Insurance
  • Minimum 580 typically Credit Score to Apply–VA does not have a minimum credit score but lenders will create credit overlays to protect their interest.
  • Active Duty, Reserves, National Guard, & Retired Veterans Can Apply
  • No bankruptcies or foreclosures in last 2 years and a clear CAVIRS
  • Debt to income ratios vary, but usually 55% back-end ratio with a fico score over 620 will get it done on qualifying income and if it is a manual underwrite, 29% and 41% respectively
  • Can use your VA loan guaranty more than once, and in some cases, can have two existing va loans out at they sametime. Call or email for more info on this scenario.
  • Cost of VA loan appraisal in Kentucky now costs a  minimum $475 with a termite report needed on all purchase and refinance transactions unless a condo.
  • 2 year work history needed on VA loans unless you can show a legitimate excuse, ie. off work due to injury, schooling, education etc.
  • You cannot use your GI Bill for income qualifying for the mortgage payment.
KENTUCKY HOUSING DOWN PAYMENT ASSISTANCE 100 FINANCING 

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 views of my employer. Not all products or services mentioned on this site may fit all people

Popular Kentucky Mortgage Programs


5 popular programs that Kentucky Home buyers use to purchase their first home.

Conventional Loan

• At least 3%-5% down
 Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.
Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.
The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home.
Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.
Max Conventional loan limits are set at $510,400  for 2020 in Kentucky

Kentucky USDA Rural Housing Program

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.
Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.
They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.
They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in an rural area
A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern  Kentucky .
There is a map link below to see the qualifying areas.
Thee is also a max household income limits with most cutoff starting at $86,400 for a family of four, and up to $115,000 for a family of five or more.
USDA requires 3 years removed from bankruptcy and foreclosure.
There is no max USDA loan limit.

Kentucky FHA Loan

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score.
The current mortgage insurance requirements are kinda steep when compared to USDA, VA , but the rates are usually good so it can counteracts the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.
THe mi premiums are for life of loan like USDA.
FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure.
Maximum FHA loan limits in Kentucky are set around $331,600 and below.

Kentucky VA Loan

VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have an funding fee like USDA, but it is higher starting at 2% for first time use, and 3% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.
VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and no max loan limits in Kentucky
Most VA lenders I work with will want a 580 credit score, even though VA says in their guidelines there is  no minimum score, good luck finding a lender
VA requires 2 years removed from bankruptcy or foreclosure.
Clear Cavirs needed to for a VA loan.

Kentucky Down Payment Assistance

This type of loan is administered  by KHC in the state of Kentucky. They typically have $4500 to $6000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.
Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.
KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at KHC requires 660 credit score.
The max debt to income ratios are set at 40% and 50% respectively.
apply online for a kentucky first time home buyer loan