FHA Mortgage Requirements for Louisville Ky First Time Home Buyers


 FHA Mortgage Requirements for Louisville Ky First Time Home Buyers

         

Kentucky FHA home loans for Louisville Ky First Time Home Buyers . I would like to share some other information with you on this subject. Please click below to go to my Best Kentucky FHA Home Loans page to read on the various kinds of Kentucky FHA Loans available to you  for Louisville Ky First Time Home Buyers

Rent vs Own Comparison

Rent
Own A Home
Program
None
FHA Buydown  30 Year Fixed
30 Year Fixed  No PMI
USDA  30 Yr Fixed
Purchase Price
$0
$150,000
$150,000
$150,000
Down Payment
0%
3.50%
5.00%
0%
Down Payment $
$0
$5,250
$7,500
$0
Total Loan Amount
$0
$147,283*
$142,500
$153,000**
Interest Rate/ Annual Percentage Rate
0%
2.25%/3.56%
3.75%/3.85%
3.25%/3.29%
Monthly Payment
$900
$563***
$660
$666
Taxes
$0
$125
$125
$125
Home Insurance
$0
$50
$50
$50
Mortgage Insurance
$0
$169
$0
$51
Total Payment
$900
$982
$910
$967
Tax Savings****
$0
$179
$182
$184
After-Tax Payment
$900
$824
$749
$804

*Includes 1.75% Financed Mortgage Insurance Premium **Includes 2.00% Financed Funding Fee ***Payment $563 for year one(2.25% rate)-$653 payment for years 2-30(3.25% rate) ****28% tax bracket-Please consult your tax advisor for tax implications. All programs and terms are subject to change without notice.

 

Kentucky Housing Down Payment Assistance for 2015 DAP funds for KY First Time Home Buyers

Kentucky Housing Down Payment Assistance for 2014 DAP funds for KY First Time Home Buyers


Kentucky Housing Down Payment Assistance for  for KY First Time Home Buyers

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Down Payment Closing Cost Assistance

KHC recognizes that down payments, closing costs, and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP

  • Purchase price up to $294,000 with Secondary Market or $265,000 with MRB.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.  A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.
  • Available to all KHC first-mortgage loan recipients.

Affordable DAP

  • Purchase price up to $294,000 with Secondary Market or $265,000 with MRB.
  • Assistance up to $4,500.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP household income limits.

More about down payment and closing costs

  • No liquid asset review and no limit on borrower reserves.
  • Specific credit underwriting standards may apply to down payment programs.

FIRST MORTGAGE QUICK REFERENCE CARD
To successfully originate KHC mortgages you should begin with prequalified
applicants and properties meeting FHA, VA, RHS, or FNMA Conventional guidelines.
The applicant (s) must be purchasing or refinancing a single family, one unit, and
owner-occupied property, located in Kentucky. Then follow the steps below

….
1. The purchase price or refinance amount is at or below:
 $294,000 with Secondary Market
 $265,000 with MRB or KHC’s Homebuyer Tax Credit
 680 credit score for Conventional
 640 credit score for FHA, VA, and RHS
 Max ratio caps of 40%/45%
 AUS Approval required except on RHS

HUD Homes in KY 2013

 
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

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KHC Loan Programs


KHC Loan Programs.

KHC Loan Programs

KHC Loan Programs

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KHC offers two different funding sources: MRB and Secondary Market.

MRB FUNDING SOURCE

  • All MRB Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest.
  • The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding.
  • To qualify, you must meet KHC’s regular MRB income guidelines, make a down payment or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.
  • Some MRB KHC loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years.  However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006.  The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional No Mortgage Insurance Program

  • Minimum credit score of 680 or better.
  • 3 percent down payment and no up-front or monthly mortgage insurance.
  • All KHC DAPs applicable.
  • No minimum borrower contribution.
  • No reserves required.

FHA

  • Insured by the Federal Housing Administration.
  • Down payments as little as 3.5 percent.
  • Can use DAP for 3.5 percent down payment requirement.
  • Upfront and monthly mortgage insurance.
  • Minimum credit score of 640.

VA

  • Guaranteed by the Veterans Administration for qualified military veterans.
  • No down payment if the property appraises for the sale price or greater.
  • Credit underwriting is flexible.
  • Minimum credit score of 640.
  • No monthly mortgage insurance payments.

RHS

  • Guaranteed by Rural Housing Services (RHS).
  • Home must be located in a rural area as defined by RHS.
  • No down payment if the property appraises for the sale price or greater.
  • Upfront and monthly mortgage insurance.
  • Minimum credit score of 640.

New Bond Special Funding (Available Only Through MRB)

KHC Loan Programs

All monies for the New Bond Special Funding have been used–check back in July 2013.

SECONDARY MARKET FUNDING SOURCE

  • All Secondary Market first mortgage loans are for a 30-year term at a fixed rate of interest.
  • The home you purchase through KHC must be occupied as your principle residence while the loan debt is outstanding.
  • To qualify, you must meet KHC’s GNMA income guidelines, make a down payment, or qualify for down payment assistance, be a U.S. citizen or legal alien and have an acceptable credit history.

Conventional No Mortgage Insurance Program

  • Minimum credit score of 680 or better.
  • 3 percent down payment and no up-front or monthly mortgage insurance.
  • All KHC DAPs applicable.
  • No minimum borrower contribution.
  • No reserves required.

FHA

  • Insured by the Federal Housing Administration.
  • Down payments as little as 3.5 percent.
  • Can use DAP for 3.5 percent down payment requirement.
  • Upfront and monthly mortgage insurance.
  • Minimum credit score of 640.

Two FHA Refinance Options (Available Only Through Secondary Market)

  • Credit qualifying Streamline Refinance and Rate/Term Refinance
    • Insured by the Federal Housing Administration
    • Cash back to borrower not to exceed $500
    • Upfront and monthly mortgage insurance
    • Minimum credit score of 640

VA

  • Guaranteed by the Veterans Administration for qualified military veterans.
  • No down payment if the property appraises for the sale price or greater.
  • Credit underwriting is flexible.
  • Minimum credit score of 640.
  • No monthly mortgage insurance payments.

RHS

  • Guaranteed by Rural Housing Services (RHS).
  • Home must be located in a rural area as defined by RHS.
  • No down payment if the property appraises for the sale price or greater.
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 640.

KHC Loan Programs

RHS Refinance Pilot Program (Available Only Through Secondary Market)

Home Buyer Tax Credit

KHC’s Home Buyer Tax Credit is available through Mortgage Credit Certificates (MCC), which reduce the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan.  MCCs are NOT mortgages.  They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.  That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay.  The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan.  But an MCC gives you a tax credit of 25 percent (not to exceed $2,000).  You can still deduct the remaining 75 percent interest on your income taxes.  A tax credit is not the same as a tax deduction.  A tax deduction reduces the portion of your income that is taxed, so you pay less.  A tax credit is a direct, dollar for dollar reduction in the total tax you owe.  The MCC is effective for the life of the loan as long as you live in the home.  If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.  One-time fee of $500 or reduced to $200 if through KHC’s Secondary Market First Mortgage Program.  Not valid with MRB loan programs.

Applying for a Kentucky Housing Corporation loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing Corporation loan.

KHC Loan Programs

Joel Lobb (NMLS#57916)

Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

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Obama foreclosure program helps some Louisville homeowners, but not many.

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