Kentucky FHA Mortgage Pre-Approval Checklist


Kentucky FHA Mortgage Pre-Approval Checklist.

via Kentucky FHA Mortgage Pre-Approval Checklist.

 

We basically look at the below items to get you pre-approved to buy a home.
Credit: Most lenders want a 640, but there are some lenders now doing FHA loans down to a 620 score with no bankruptcies or foreclosures in the last 3 year.
Assets: FHA loans require a 3.5% down payment, so depending on how much house you are trying to buy, you will need to put the minimum 3.5% down payment. Some programs are out there where you don’t need a down payment, USDA and KHC come to mind.
 In order to get you pre-approved, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free. 

 

Income Requirements for A Kentucky Rural Housing Loan Approval.


Income Requirements for A Kentucky Rural Housing Loan Approval..

via Income Requirements for A Kentucky Rural Housing Loan Approval..

FHA Streamline Refinance MIP


FHA Streamline Refinance MIP (For Loans Endorsed Before June 1, 2009)

If the existing FHA mortgage was endorsed prior to June 1, 2009, the mortgage insurance premiums have been “grandfathered”.

Upfront Mortgage Insurance Premiums (UFMIP)

For an FHA Streamline Refinance that replaces a loan endorsed prior to June 1, 2009, the new FHA mortgage’s upfront mortgage insurance is equal to 0.01 percent of the loan size, or 1 basis point.

For example, if the new FHA Streamline Refinance is for $100,000 mortgage, the FHA will assess a $10 upfront mortgage insurance premium (MIP) to be paid by you at closing. The FHA automatically adds the $10 payment to your new loan balance.

Annual Mortgage Insurance Premiums (MIP)

Annual MIP is similarly cheap for “old” FHA loans. For an FHA Streamline Refinance replacing an FHA loan endorsed prior to June 1, 2009, the annual MIP is 0.55% annually, or 55 basis points.

The complete annual MIP schedule is as follows :

  • 15-year loan terms with loan-to-value over 90% : 0.55 percent annual MIP
  • 15-year loan terms with loan-to-value under 90% : 0.55 percent annual MIP
  • 30-year loan terms with loan-to-value over 95% : 0.55 percent annual MIP
  • 30-year loan terms with loan-to-value under 95% : 0.55 percent annual MIP

15-year fixed rate mortgages with LTVs of 78% or less pay no annual MIP.

 

Middle-class buyers may feel squeeze of new mortgage rules – Toledo Blade


Middle-class buyers may feel squeeze of new mortgage rules – Toledo Blade.

 

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. 

 


Read more at http://www.toledoblade.com/Real-Estate/2013/10/13/Middle-class-buyers-may-feel-squeeze-of-new-mortgage-rules.html#odAUFEU4Mc1Emb7k.99

Shut-down Slams Door on USDA Mortgages

As Always, No Admin Fee On VA Loans!
ü FHA/VA Purchase Transactions and FHA Full Credit Qualifying No Cash Out Refinances
• FHA only: Credit qualifying no cash out finances are included.
• VA purchase transactions only.
• FRM, single family primary residence only.
• Loan must receive an AUS approve/accept.
• DTI maximum is 49. 99%, regardless of AUS approve/accept


Shut-down Slams Door on USDA Mortgages.

Kentucky USDA Rural housing mortgage loans for 2014
Kentucky USDA Rural housing mortgage loans for 2014

The week-old federal government shutdown is a disaster on many levels. For rural America, one major impact is in the area of housing.

For the near future, low- and moderate-income homebuyers who have applied for mortgages guaranteed or made directly by the U.S. Department of Agriculture (USDA) Rural Housing Service are out of luck. So are very low-income homeowners seeking repair grants or loans.

The financing these homebuyers need cannot close because no USDA rural housing staff are working at the local level. Banks make the guaranteed loans, which are like the mortgages insured by the Veterans Administration or the Federal Housing Administration. But USDA staff have to approve the guarantees and provide the necessary paperwork to the lender before the loan can be issued. With no staff, there can be no approvals.

In FY 2012 USDA guaranteed about 145,000 of these loans worth $19.2 billion, helping substantially with the housing recovery. USDA made almost 8,000 direct homeownership loans totaling just under $900 million.

Plus USDA Rural Development local offices also make a number of other grants and loans for housing, community facilities, businesses and utilities. But not this week. Since October 1 and the shutdown, none — zero — of the 3,336 USDA Rural Development field office staff have been working. All were declared “non-essential” and are furloughed. So no loans or grants in any programs can move forward.

Mainstream media institutions, which usually pay little attention to rural concerns, are beginning to cover this issue:

  • A poignant summary of the problems comes in a letter-to-the-editor in the October 8Washington Post from a woman in Maine who is pre-approved for a USDA mortgage:
    Each day that the government shutdown continues means that I am closer to losing the chance to buy my first home. … Losing this home would crush our spirits. It’s been a long road to homeownership for us, and to even consider that we will lose this home because of politics in Washington makes me sick to my stomach.
  • On October 5 the Washington Post had a page-one article on the stalling of federally insured home loans due to the shutdown. The article uses as a prime example a young Virginia couple’s likely loss of their USDA-backed first-home purchase.
  • Huffington Post blog on October 4 made similar observations about USDA loans.
  • Bloomberg news story October 8 calls the stoppage of USDA loans “an early warning of how the government’s first partial closing in 17 years could put a drag on the wider housing market.”
  • And the St. Louis Post-Dispatch’s article on the impact of the government closure on the housing industry leads with a mortgage broker who says USDA loans account for 12-13% of his company’s business.

Much of the Department of Agriculture appears to have disappeared during the shutdown. USDA’s web site shows nothing but a short notice about the closure. Housing and Urban Development’s site has more information but no entries after September 30. Some HUD FHA-insured home loans may also be slower to close during the shutdown. Veterans Affairs-insured mortgages are not affected so far. VA home-loan offices are currently open. (Politicians panic at the thought of cutting services to veterans.)

Photo by Bob Nichols/USDAChristopher, Hope, Makenna and Natasha Goetz play on the deck of their home in Garnett, Kansas. The Goetz’s used a USDA Rural Development loan guarantee to purchase their home.

The Office of Management and Budget’s posted contingency plans show that 100% of USDA Rural Development local and state office staff were furloughed on October 1. A total of 53 Rural Development staff in the agency’s Washington, D.C., headquarters and the St. Louis finance office, out of 1,394 normally in those locations, are still on the job. At HUD, 337 of 8,709 employees are still working.

The plan for USDA Rural Development said no new loans or guarantees would be made without an appropriation, and all offices would close except for Washington, D.C., and the St. Louis finance office. St. Louis is the contact for servicing on existing loans.

So check back later. They may be open; they may not. For now, that’s all homebuyers and the housing industry can do.

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

http://mylouisvillekentuckymortgage.com 

 

 Louisville Kentucky Mortgage Rates for FHA, VA, KHC, USDA, Rural Housing Mortgag Kentucky First time home buyer, 100% financing Zero Down Loans Ky Rural Housing Loans, $100 Down FHA Loans in Ky, Ky VA Loans, USDA

Louisville Kentucky Mortgage Rates for FHA, VA, KHC, USDA, Rural Housing Mortgag
Kentucky First time home buyer, 100% financing Zero Down Loans Ky Rural Housing Loans, $100 Down FHA Loans in Ky, Ky VA Loans, USDA

Louisville Kentucky FHA, VA, USDA, and Fannie Mae Mortgage Loan Guidelines for 2013


Louisville Kentucky FHA, VA, USDA, and Fannie Mae Mortgage Loan Guidelines for 2013

 

FHA
Business as usual for;
Case numbers
CAIVRS
FHA TOTAL Scorecard
Upfront Mortgage Insurance Premiums
Endorsements (may be delays due to reduced staff)
Loss mitigations
Submission of monthly MIP is required
filing claims and conveyance of property is permitted
FMC will continue to require validation of income documents.
If the tax transcripts have not been obtained at this time, FMC
employee must obtain a Written Verifications of Employment for
Wage Earners in-lieu of the transcripts from either the employer or
an approved third party verification company.
If the income used for qualification purposes must be supported by
tax returns, tax transcripts are required prior to final approval. (For
example but not limited to, commission, self-employed, rental
income, etc.)
If the borrower is employed by the government and is on furlough
and/or we are unable to obtain Verbal Verification of employment
the loan must not close until employment has been verified.
Fannie Mae
Business as usual for systems and deliveries.
FMC will continue to require validation of income documents.
If the tax transcripts have not been obtained at this time, FMC
employee must obtain a Written Verifications of Employment for
Wage Earners in-lieu of the transcripts from either the employer or
Government Shutdown Page 1 of 3 Credit Policy Announcement 13-26
an approved third party verification company.
If the income used for qualification purposes must be supported by
tax returns, tax transcripts are required prior to final approval. (For
example but not limited to, commission, self-employed, rental
income, etc.)Government Shutdown Page 2 of 3 Credit Policy Announcement 13-26
Product Specific
Impact,
continued
If the borrower is employed by the government and is on furlough
and/or we are unable to obtain Verbal Verification of employment
the loan must not close until employment has been verified.
Patriot
Business as usual, unless we are waiting on tax transcripts or if a verbal
VOE cannot be obtained. Loans will not be final approved or closed if
these requirements have not been met, no exceptions.
USDA
All transactions are on hold during the furlough. USDA will not issue any
Conditional Commitments or fund existing Conditional Commitments unti
l
the furlough is over, at which time further instruction will be issued. GUS
is not operational therefore we will not be able to update USDA
transactions during this time.
VA
Business as usual for VA systems and operations.
FMC will continue to require validation of income documents.
If the tax transcripts have not been obtained at this time, FMC
employee must obtain a Written Verifications of Employment for
Wage Earners in-lieu of the transcripts from either the employer or
an approved third party verification company.
If the income used for qualification purposes must be supported by
tax returns, tax transcripts are required prior to final approval. (For
example but not limited to, commission, self-employed, rental
income, etc.)
If the borrower is employed by the government and is on furlough
and/or we are unable to obtain Verbal Verification of employment
the loan must not close until employment has been verified.
Systems
Availability
Available:
FHA Connection
CAIVRS can be checked
VA Portal
o Order appraisals
o Order case number assignments
o Obtain and follow up on COEs
FraudGuard, which will:
o Check LDP/GSA
o Complete a best match for consumer SSN from verifying
sources such as credit repositories, licensing bureaus and
death records. If we need an absolute validation of a
borrower’s SSN from the SSA we will have to wait, see
below. Government Shutdown Page 3 of 3 Credit Policy Announcement 13-26
Systems
Availability,
Continued
Unavailable:
IRS will not process any forms, therefore 4506T will not be
processed and tax transcripts cannot be obtained
Social Security Administration has only retained employees that
deal with processing claims and benefits. We will not be able to
obtain SSN validation through any provider that goes directly to
SSA
o There are acceptable alternatives to obtaining validation of
SSNs such as the Interthinx Safe Check report or third party
source documents that are acceptable to the agencies.
USDA/Rural Development’s GUS Automated Underwriting
System
Effective date October 1, 2013, until further notice

FAQ: How Will a Government Shut-down Delay My Mortgage Loan Application?


FAQ: How Will a Government Shut-down Delay My Mortgage Loan Application?.

via FAQ: How Will a Government Shut-down Delay My Mortgage Loan Application?.

VA Loans

Like FHA loans, VA Loans are underwritten according to the VA standard. However, there are some instances where a delay in ordering appraisals could occur, but because most of that is handled electronically the delays should be minimal.  However, unlike AES Lending,  there are some  lenders who do not issue Notice of Values who have to obtain the NOV form the VA and will not be able to close a VA Loan during a government shutdown.   Therefore if you are applying for a VA loan during the 2013 government shutdown you should check with your lender first and see if they will be able to issue a Notice of Value or if they will require the VA to issue one. I  the answer is the latter, then you will not be able to close your loan until a bargain is made to fund the government otherwise the VA Loan Program remains open.

USDA Loans

The USDA has a long history of running out of money by the end of their fiscal year which is September 30 and this year is no exception. In years past, lenders would continue to underwrite and approve and fund these loans with the promise (loan approval)  from the USDA that upon congressional replenishment if their funds, they would issue the guarantee.

USDA files can continue to be processed, underwritten and shipped to USDA; however no Conditional Commitments will be issued until the shutdown is over.

Reminder that the October 1st change to eligible locations has also been put on hold for the moment but it is  unknown if the change to the new list will be backdated to 10/1/13.

Originators may continue to accept and process loans that would be eligible under an old area but not under the new designated areas; however recommend making clients aware that loan may need to be switched to FHA program if property is deemed no longer eligible.

However, because this year it is expected that many of the USDA eligible maps will be re-drawn, this could impact buyers who otherwise may have been shopping in an area that was slated to be no longer eligible for USDA housing.  Lenders who in the past may have accepted the approval and promise to issue the guarantee, my not be so eager to fund those loans until congress fully funds the USDA Rural Housing Development program.