Senior Loan Officer
Government Shutdown USDA Loans KY
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 3Louisville, KY 40223Company ID #1364 | MB73346
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.
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.
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Fannie Mae Kentucky Conforming Guideline Changes
The following guideline changes are effective immediately for all Kentucky Fannie MaeF Conventional loans; however DU will not be updated to reflect these changes until August 15th 2015
Conversion of Currently Primary Residence
Requirements for conversion of a borrower’s current primary residence to secondary or investment have been removed. The converted residence will be treated like a normal second home or investment part with regards to Reserve requirements and use of Rental Income.
This removes all requirements related to the requirement of 30% equity in the converted property.
Stocks, Bonds, & Mutual Funds
Unreimbursed Employee Expenses
If a borrower qualifies using commission income which accounts for less than 25% of borrower’s annual income, base pay, bonus income, or overtime income:
If a borrower qualifies using commission income which accounts for 25% or more of their annual income, general unreimbursed business expenses must be deducted from the gross commission income.
If the borrower reports an automobile allowance as part of monthly income, the related expense must always be considered. The underwriter will determine whether automobile expenses will be deducted from income or included in the debt calculation.
In cases where a borrower reports additional “Unreported Tip Income” to the IRS beyond what is reported by their employer, this higher amount of tip income can be used as long as it can be verified with the last 2 years tax returns and filed Forms 4137 (Social Security and Medicare Tax on Unreported Tip Income).
Funds for purchase and refinance loan commitment authority for the guaranteed loan program in Kentucky have been allocated to Kentucky. Please obligate conditional commitments issued “subject to” funding through these steps before processing any new applications.
Fiscal Year 2015 Funds Now Available!
Funding for Rural Development’s Single Family Housing Guaranteed Loan program is now available for fiscal year (FY) 2015. The funding received is based on a Continuing Appropriations Resolution, 2015 (P.L. 113-164, H.J. RES.124).
Loans that were issued Conditional Commitments “subject to” commitment authority will be obligated on the Agency’s Guaranteed Loan System (GLS).
If the loan has closed, the lender may submit their request for Loan Note Guarantee, together with their closing package. Ensure the lender certification on Form RD 1980-18 “Conditional Commitment for Single Family Housing Loan Guarantee” is dated on or after the obligation date provided by Rural Development.
|—||Kentucky USDA Guaranteed Rural Housing Loans
Did you know that home buyers can still get a mortgage with no money down, even with less than perfect credit? The Kentucky Guaranteed Rural Housing Loan Program offers these options in a wide range of areas, including many suburbs.
This loan program is offered through the Kentucky Rural Housing Service, an agency of the U.S. Department of Agriculture and designed to assist low and moderate-income residents by providing better access to affordable housing finance options including little or no out-of-pocket costs in eligible areas.
Call me today to learn more about this program.
Senior Loan Officer
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
phone: (502) 905-3708
Fax: (502) 327-9119
Company ID #1364 | MB73346
On Jan. 1, banks may not approve mortgages for applicants whose debt-to-income ration is over 43 percent and must limit origination fees to no more than 3 percent of the loan amount.