Kentucky Private Mortgage Insurance or PMI


Kentucky Private Mortgage Insurance or PMI.

Mortgage Insurance Tax Deduction
Frequently Asked Questions

For mortgage loans originated in 2018, 2019 and 2020, Congress recently restored the mortgage insurance (MI) premium tax deduction to eligible borrowers who itemize. Learn more from our FAQ below.

MI Tax-Deductibility Overview

1. What is private mortgage insurance (MI) tax-deductibility and how does it work?

Recent legislation restored an itemized deduction on federal tax returns for the cost of private MI paid by eligible borrowers. This deduction law applies to borrower-paid MI certificates issued by Arch MI.

The new law is effective for amounts paid for MI attributable to the 2018, 2019 and 2020 tax years.

2. What is the reason for this MI tax-deductibility legislation?

The federal government supports home ownership and helps make home ownership more affordable for more homebuyers through this MI tax deduction.

3. How does the MI tax deduction work?

The federal MI tax deduction allows borrowers with adjusted gross incomes up to $100,000 to take advantage of the full MI tax deduction — 100% of the MI premium for a qualifying loan is subject to this tax deduction.

Borrowers with adjusted gross incomes up to $109,000 can take advantage of a partial MI tax deduction. For each additional $1,000 of gross household income above $100,000, the MI deduction is reduced by 10%, with a cutoff of any deduction at $109,000.

Married persons filing separately, with adjusted gross income of $50,000 or less are each able to deduct 50% of their MI premiums. For each additional $500 of gross household income above $50,000, the MI deduction is reduced by 5%, with a cutoff of any deduction at $54,500.

4. What kinds of loans qualify for the deduction?

The deduction applies to existing homeowners as well as to first-time homebuyers. The MI tax deduction applies to MI premiums for purchase and refinance loans for “qualified residences” as defined in the Internal Revenue Code. This generally includes the borrower’s primary residence and one other qualified residence. Investor loans are not eligible. Arch MI’s Monthly, Single- and Split-Premium MI payment plans are all eligible for the tax deduction. For upfront payment plans, borrowers should consult with a professional tax adviser to determine the amount of the MI premium eligible for the tax deduction.

5. What savings amount can a typical homeowner with MI expect?

Individual savings will vary, depending on the size of the loan and a borrower’s adjusted gross income and tax bracket.

6. How many people in the United States use MI?

Millions of people use private MI every year — it’s an important factor in facilitating home purchases for first-time homebuyers, low- to moderate-income borrowers and minority and immigrant borrowers. Most lenders require a 20% down payment for a home loan, which is the single biggest obstacle prospective homebuyers face. MI makes it possible for more families and individuals to purchase homes with low down payments that meet their budgets.

7. How long will this tax deduction be available?

The current tax deduction legislation applies to MI premiums attributable to the 2018, 2019 and 2020 tax years. Congress has the power to extend the tax deduction to later years through future legislation.

Qualification

1. Is the deduction only for first-time homebuyers?

No. The deduction applies to existing homeowners as well as to first-time homebuyers.

2. Does the MI tax deduction apply to new purchases only? Are refinances also included?

The MI tax deduction applies to purchases and refinances up to the amount of acquisition indebtedness as defined in the Internal Revenue Code. This could include first and second mortgages but may not include the full amount of a cash-out refinance. Borrowers with cash-out refinances should consult a professional tax adviser to determine the amount of MI premium eligible for the tax deduction.

3. Are there any occupancy restrictions?

The deduction applies to a “qualified residence.”. Generally, that includes the taxpayer’s principal residence and up to one other residence selected by the taxpayer for purposes of the deduction for qualified residence interest. Note: The other residence must be used for personal purposes by the taxpayer for 14 days or 10% of the days during the tax year that the unit is rented for fair value, whichever is greater, among other tax code criteria.

4. Are investor loans eligible?

No, investor loans are not eligible.

5. Is there a loan amount limit?

No. The available tax deduction is only limited by the taxpayer’s income.

6. Is deductibility applicable for all loan types?

There is no differentiation among loan types. But the premium has to be for what is considered “acquisition indebtedness” on a “qualified residence.”

7. When refinancing a piggyback loan, for purposes of the deduction, is the original loan amount considered the sum of the two mortgages or only the primary mortgage amount without the second lien included?

The loan amount applicable to the deduction would be the sum of the two mortgages, up to the amount of “acquisition indebtedness.”

8. Do tax deductions have to be itemized on tax returns in order to take the deduction?

Yes. In order to take advantage of the MI tax deduction, borrowers must include their MI premium payment information on an itemized tax return.

 

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 Fannie Mae HomePath Mortgage Loan


Kentucky Fannie Mae HomePath Mortgage Loan.

via Kentucky Fannie Mae HomePath Mortgage Loan.

 Fannie Mae Homepath , ,,.

Joel Lobb  Senior  Loan Officer
(NMLS#57916)
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

Current Guidelines for Louisville Kentucky Mortgage programs including FHA, VA, KHC, USDA, and Fannie Mae Home Loans in the State of Kentucky

HARP 2.0 Refinance Guidelines for Kentucky Mortgages


HARP 2.0 Refinance Guidelines for Kentucky Mortgages
HARP 2.0 FAQ’s for Kentucky Mortgages
Date: May 8, 2012
Since the original publication of our first HARP 2.0 Q&A document on March 28, we have received additional questions about the loan program. Additional questions have been added to the original list, with the new ones highlighted in red to make it easy for you to locate them, and to keep the entire Q&A together in one place.

Mortgage Insurance

1. Do loans with Lender Paid Mortgage Insurance (LPMI) qualify for the mortgage insurance transfer? Yes, if the LPMI was paid in an upfront lump sum (Single Pay).
2. If LPMI is paid monthly by the current servicer, can this mortgage insurance be transferred? No, monthly LPMI is not transferrable.
3. Is there a charge to transfer mortgage insurance? Genworth, MGIC, Radian, and UGIC do not charge to transfer the mortgage insurance at this time.
4. If mortgage insurance is transferred, will the mortgage insurance company continue to reference the appraised value/purchase price associated with the original mortgage? The current appraised value (or what was entered in DU/LP to receive a Property Inspection Waiver) of the HARP 2.0 loan will be used. Mortgage insurance will automatically be removed when the Loan-to-Value (LTV) reaches 78%.
5. Will the MI percentage increase? Because Cole Taylor is only transferring the current MI cert to the new loan, the percentage of coverage will remain the same.

Appraisal and LTV

1. Will the Kentucky Mortgage  borrower be charged a fee if the loan qualifies for a Property Inspection Waiver (PIW) or Home Value Explorer (HVE)? No,  does not charge a fee for this.
2. Is the PIW disclosed on the GFE since  Mortgage pays for it? No, the PIW should not be disclosed on the GFE.
3. What value is used on the 1003 for LTV purposes and pricing? – For DU Refi Plus loans, use the value that was originally submitted to DU. – For Freddie Relief Open Access loans, use the HVE Value estimate shown in the LP feedback.
4. How is LTV calculated when using LP? If you are not getting an appraisal, the LTV should be calculated using the HVE estimate as the appraised value.

1. Do I have to use the HVE estimate? No, you do have the choice to order an appraisal. If you submit the appraisal to Kentucky Mortgage, you may not change back to the HVE estimate.
2. What should be done if LP findings have a lower HVE value and that value no longer returns an Accept Eligible finding? HVE values are updated periodically by Freddie Mac. As long as the previous HVE value is not more than 120 days from the note date, the original HVE value can be used.

Condominiums

1. Are condominium questionnaires required for Louisville Kentucky HARP 2.0 refinances? – For DU Refi Plus loans, a condominium checklist is not required. – For Freddie Relief Open Access loans, an abbreviated checklist is required to ensure the condo is not in a Freddie Mac Ineligible Project. The checklist is posted in the AVISTA Resource Center.
2. Does a condominium project have to be warrantable? – For DU Refi Plus loans, need to verify the loan is not a condotel, in a houseboat project, or subject to segmented ownership or timeshare. – For Freddie Relief Open Access loans, the condominium checklist will be required to ensure the condominium is not in an ineligible project.
3. Are there any special LTV restrictions for high-rise condominiums? Normal LTV guidelines apply to high-rise condos (except in FL—see the underwriting guidelines for more detail on FL condominiums).

Miscellaneous

1. Will there be any exceptions to the HARP 2.0 credit score guidelines for Kentucky Mortgage Borrowers ? No exceptions to the credit score guidelines will be allowed.
2. Can a borrower be removed from the original loan? (Not a new question, but just reiterating.) Yes, a borrower may be removed as the result of a divorce. The borrower must be removed from the deed and evidence that the remaining borrower has been making payments from their own funds for the past 12 months must be provided. If the borrower is removed due to death, evidence that the remaining borrower has been making payments from his/her own funds is not required.
3. If a current loan was refinanced in 2008, is the loan now eligible for Kentucky Mortgage for a HARP 2.0? Yes, as long as the loan was delivered to FNMA/FHLMC by May 31, 2009.
4. Can the current escrow waiver be applied to the new loan? If the new LTV is over 80%, an escrow waiver will not be allowed.
5. Can the occupancy type of the property change? There is no requirement that the occupancy of the property must stay the same.
If you need any information or have more specific questions, please contact us:

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

Kentucky Fannie Mae Homepath


 

502-905-3708 for your free mortgage preapproval for Fannie Mae Homepath in KY!

HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.

Benefits to You, the Borrower

  • Low down payment and flexible mortgage terms (fixed–rate, adjustable rate, or interest–only).
  • Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • No lender-requested appraisal.
  • No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
  • Expanded seller contributions for closing costs allowed.
  • Available for primary residences, second homes and investment properties.
  • Many condo project requirements are waived; ask your lender for details.
  • For more information, contact a HomePath Mortgage lender or click here for the Home Buyers Guide.
HomePath Renovation Mortgageallows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation – up to 35% of the as completed value, no more than $35,000.Benefits to You, the Borrower

  • Low down payment and flexible mortgage terms (fixed- rate or adjustable-rate).
  • Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • Renovation amount based on appraisal “as completed” value.
  • No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
  • Expanded seller contributions for closing costs allowed.
  • Available for primary residences, second homes, and investment properties.
  • Many condo project requirements are waived; ask your lender for details.
  • For more information about the renovation process, contact a HomePath Renovation Mortgage lender.