Saturday, August 27, 2011

Louisville Ky IRRRLs VA Loans Versus Cash-Out Refinancing Louisville Ky VA Loans

.Louisville Ky IRRRLs VA Loans Versus Cash-Out Refinancing Louisville Ky VA  Loans

 Quick Reference Table for IRRRLs Versus Cash-Out Refinancing Loans




Change Date April 10, 2009, Change 11

• This section has been updated to remove references to a 90 percent limit and a maximum guaranty on refinance loans, and to make minor grammatical edits.



a. Table IRRRL versus Cash-out The following table provides a quick reference for IRRRL loans versus cash-out refinancing loans:



Feature IRRRL Cash-out Refinancing

Purpose To refinance an existing VA loan at a lower interest rate To pay off lien(s) of any type - can also provide cash to borrower

Interest Rate Rate must be lower than on existing VA loan (unless existing loan is an ARM) Any negotiated rate

Monthly Payment Amount Payment must be lower than that on an existing VA loan (unless the ARM is being refinanced, a term is shortened, or energy efficiency improvements are being included) No requirement

Discount Points Reasonable points can be paid - only two of these points can be included in the loan amount Reasonable points can be paid - if paid from loan proceeds

Maximum Loan Existing VA loan balance, plus allowable fees and charges, plus up to two discount points, plus the cost of any energy efficiency improvements, plus the VA funding fee 100 percent of the reasonable value of the property indicated on the NOV, plus the cost of any energy efficiency improvements, plus the VA funding fee

Maximum Guaranty Guaranty is at least 25 percent in all cases (See section 1, subsection h of this chapter) Maximum guaranty is the same as for purchases


a. Table IRRRL versus Cash-out (continued)




Feature IRRRL Cash-out Refinancing

Entitlement Veteran re-uses the entitlement used on the existing VA loan - the IRRRL does not impact the amount of entitlement the veteran has in use Must have sufficient available entitlement - if existing VA loan on the same property is being refinanced, entitlement can be restored for the refinance

Fees and Charges in the Loan All allowable fees and charges, including up to two discount points, may be included in the loan Allowable fees and charges and points may be paid from the loan proceeds

Cash to Borrower Not permitted Borrower can receive cash for any purposes acceptable to the lender

Lien/Owner-ship Must be secured by first lien - veteran must own property Must be secured by first lien - veteran must own property

Refinance of Other Liens Cannot refinance other liens - can only refinance the existing VA loan Can refinance any type of lien(s)

Maximum Loan Term Existing VA loan term plus 10 years, not to exceed 30 years + 32 days 30 years + 32 days

Occupancy Veteran or spouse of an active duty servicemember must certify to prior occupancy Veteran or spouse of an active duty servicemember must certify as to intent to occupy

Appraisal No appraisal is required Appraisal is required

Credit Underwriting No underwriting is required except in certain cases Full credit information and underwriting are always required

Automatic Authority All lenders can close IRRRLs automatically, except if the loan being refinanced loan is 30 days or more past due, prior approval is always required Only lenders with automatic authority can close these loans automatically

Law 38 U.S.C. 3710(a)(8)

38 U.S.C. 3710(a)(5)


5. Other Refinancing Loans



Change Date April 10, 2009, Change 11

• Subsection c has been updated to note that maximum guaranty on these types of refinancing loans is limited to $36,000.

• This section has been updated to make minor grammatical edits.

a. What Are They? Other refinancing loans are:


• construction loans,

• installment land sale contracts, and

• loans assumed by veterans at interest rates higher than that for the proposed refinance.


b. Maximum Loan These loans may not exceed the lesser of:


• the VA reasonable value plus the VA funding fee, or

• the sum of the outstanding balance of the loan to be refinanced plus allowable closing costs (including the funding fee) and discounts.

The cost of energy efficiency improvements can also be added to the loan.


c. Maximum Guaranty

The maximum guaranty for refinancing loans, noted in subsection a, is $36,000.

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Friday, August 26, 2011

Fixed mortgage rates rise from decades lows - WAVE 3 News - Louisville, Kentucky

Fixed mortgage rates rise from decades lows - WAVE 3 News - Louisville, Kentucky




Apply for a home loan by clicking the link below:It's free and takes less than 5 minutesOr call us at 502-905-3708 for your free application over the phone

Sunday, August 21, 2011

Kentucky VA Home Loans, Zero Down

Kentucky VA Home Loans, Zero Down


Posted on August 21, 2011 by Louisville Kentucky Mortgage

i2 Votes



Image via Wikipedia

KentuckyVA Home Loans - A great Zero Down home loan program for Kentucky VETERANS. We provide VA home loans in all Counties of Kentucky, including Louisville, Lexington, Bowling Green, Owensboro, Etown, Radcliff, and all Northern Kentucky Counties



VA Loans require no down payment and allow you to qualify for a more expensive home. Plus, today mortgage rates on VA loans are very low, making homes even more affordable.



The VA doesn’t actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan.



VA Home Mortgage Loan Advantages vs Other Mortgage Loan OptionsVA home loans do not require a down payment, unless the purchase price is more than the appraised value or in excess of current loan limits.



VA home loans have limitations on which closing costs may be assessed to the veteran.



VA home loans have no prepaid without penalty.

Maximum (zero down) VA loan has increased to match conforming loans!



VA home loans may have forbearance extended to worthy VA homeowners experiencing temporary financial difficulty



VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties

Rates are competitive with conventional loan interest rates.

VA home loans do not require mortgage insurance premiums.

Although there is no down payment required – There are still lender closing costs, but the seller usually pays ALL of the veteran’s closing costs (and with a $0 down payment, the veteran can literally purchase a home for nothing).



VA FastTrack IRRRL Streamline Refinace





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We are sensitive to the needs of our American Veterans. But before you get a VA loan, you will need a Certificate of Eligibility, and your DD-214. If you do not have one, or cannot find it, you must contact the VA to get one. Click HERE for details on how to obtain these forms.





If WE are your lender – we can under most circumstances, get your required Certificate of Eligibility for you for free.



VA Frequently Asked Questions… Click HERE





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Eligibility Requirements



ERA DATES LENGTH OF SERVICE

World War II 09/16/40 – 07/25/47 90 Days

Peacetime 07/26/47 – 06/26/50 181 Continuous Days

Korean Conflict 06/27/50 – 01/31/55 90 Days

Post Korean 02/01/55 – 08/04/64 181 Continuous Days

Vietnam 08/05/64 – 09/07/80 90 Days

Post Vietnam 05/08/75 – 09/07/80 181 Continuous Days

Enlisted 09/08/80 – 08/01/90 2 Years

Officers 10/17/81 – 08/01/90 2 Years

Persian Gulf 08/02/90 – present 2 Years of period called to active duty, not less than 90 days.





Income Guidelines for VA Home Loans

When buying a home in Kentucky, the VA still requires a borrower to have sufficient and adequate income to cover the repayment of the mortgage. Before a borrower can be approved for a Kentucky VA home mortgage loan, the stability of income and the continuance of the borrower’s income must be established through acceptable sources of income, the borrower’s past employment record, and the employer’s confirmation of continued employment must be established.



Stability of a person’s income is generally derived from their employment history. VA requires verification for the previous two full years and must be documented through lender verifications of previous employment or W-2′s. This income must be analyzed to determine whether it can be expected to continue through the first 3 years of the mortgage loan (if the borrower intends to retire during this period, the expected retirement income, social security benefits, etc. should be used). Any gaps in employment must be reasonably explained by the borrower. Schooling or education for the borrower’s profession (e.g. nursing school) can be counted towards the 2 year requirement. Allowances for seasonal employment, such as is typical in the building trades for example, may be used.



VA FUNDING FEE

In order for VA to guarantee the home loan in Minnesota or Wisconsin, there is a closing cost assessed by the VA to originate the loan called a funding fee. This fee will vary, depending upon the type of VA loan, whether this is your first time to use your entitlement, if you are a disabled veteran, the down payment and if you served active duty or in the National Guard/Reserves.



The VA funding fee is required by law. The fee, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users is a bit more expensive. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment.



The following table breaks down the funding fee charged by VA:



First time use, purchase of an eligible property

Down Payment Active Duty Reserves/NG

0% to 4.99% 2.15% 2.4%

5% to 9.99% 1.50% 1.75%

10% + 1.25% 1.50%

Second time use, purchase of an eligible property

Down Payment Active Duty Reserves/NG

0% to 4.99% 3.30% 3.3%

5% to 9.99% 1.50% 1.75%

10% + 1.25% 1.50%

Cash-Out Refinance

Active Duty Reserves/NG

First Use 2.15% 3.3%

2nd Use 2.40% 3.3%



IRRL Streamline Refinance

Active Duty Reserves/NG

All Homes .50% .5%

Moble Homes 1.0% 1.0%





VA STREAMLINE REFINANCE

An “Interest Rate Reduction Refinance Loan” (IRRRL) or Streamline Refinance allows Veterans to refinance their current mortgage interest rate to a lower rate than they are currently paying. This program is only available to veterans who are refinancing their original VA mortgage in which they utilized their original eligibility.





Loan Conditions:

■The VA charges ½ percent funding fee to guarantee the IRRRL Loan.

■There is no cash out on an IRRRL loan.

■The loan being refinanced must be current and have a perfect pay history for the last 12 months.

■2nd mortgages cannot be included and must subordinate.

■No assumptions are allowed.

■This loan can be done with “no out of pocket money” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.

VA Cash-Out Refinance

Cash-out refinances on properties owned more than one year prior to the refinance are permitted on owner occupied principal residences only, and are limited to 90% of the appraised value plus the allowable closing costs.



A cash-out refinance is when a borrower refinances their current mortgage for more than they owe in order to pull out the built up equity that has accrued in the home. The amount a home owner can borrower is limited by the value of the property compared to the loan amount (otherwise known as the loan-to-value or LTV).



The following are basic requirements of a cash-out VA refinance loan:



■If the property was purchased less than one year preceding the refinance, the borrower is allowed to refinance up to 90% of the original sales price plus the allowable new closing costs or the appraised value plus the allowable closing costs (whichever is lesser)

■If the property was purchased more than one year preceding the refinance, the borrower can cash-out 90% of the the appraised value plus the allowable closing costs

■Applies to owner occupied properties only

■2nd mortgages may be paid off with the cash-out refinance (the second mortgage must be at least 12 months old)

■Loan amounts may not exceed 90% of the appraised value.

■The borrower must have sufficient entitlement for the loan (not including any existing entitlement that was used for loans to be paid off by the refinance

■There must be a first lien against the property

■If the new loan is to refinance an existing mortgage to buy out an ex-spouse’s equity, a divorce decree or settlement agreement must be provided to document the equity awarded to the ex-spouse

■All borrowers must credit qualify

■A funding fee of 3.00% will be added to the loan amount at time of closing (there are no refunds for previous funding fees assessed by the VA).

■Borrower may receive cash proceeds at closing

■Maximum loan term is 30 years plus 32 days

Related articles

■VA Home Loan Centers Announces Summer Stimulus Offer (prweb.com)

■Louisville Kentucky VA Mortgage and home loan Program Quick Reference (louisvillekymortgage.net)

■Tips From A VA Loan Mortgage Expert (prweb.com)

■LowVARates Advocates for Overseas Military (prweb.com)

■Overseas Military May Miss Out On Low VA Loan Interest Rates (prweb.com)

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Kentucky VA Home Loans, Zero Down

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Kentucky VA Home Loans, Zero Down Guidelines 2011 for Purchase and Refinace

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Friday, August 19, 2011

Kentucky Credit Scores Changes

Kentucky Credit Scores Changes

 

Credit score is free if you're rejected for loan

Your credit score determines the interest rate you pay for a credit card, car loan, private student loan or a home mortgage. A low score could prevent you from getting a loan at all. But for years, this important number has been a mystery to most consumers.
A provision of the Dodd-Frank financial reform law that takes effect today requires lenders to provide consumers with a free credit score whenever:
•They reject an application for a loan. In that case, lenders will be required to provide consumers with an "adverse action" notice that includes their credit score and explains why they were turned down.
•They approve a loan but at a higher rate than the rate provided to their best customers. As in the first instance, lenders will be required to provide borrowers with a credit score and explain why they're charging a higher rate.
Lenders must provide the score they used to make a decision about your loan. They'll also be required to explain the factors that adversely affected your score and the range of possible scores so you'll know where you stand.
Consumers submit about 1 billion credit applications every year and of those, about half will fall under one of those two categories, says Mark Greene, CEO of FICO, which developed the most widely used credit score.

Who knows their number?

Percentage of consumers who have checked their credit scores, by annual income:
$25,000 or less
15%
$25,000 - $75,000
42%
$75,000+
55%
Total
36%
Source: National Bureau of Economic Research
Many borrowers who receive the notices will be surprised to learn that they didn't qualify for a lender's best rate, Greene says. That could encourage more consumers to shop around and take steps to improve their scores, he says.
The requirement won't create a burden for lenders because they've already bought the scores from FICO or other credit score providers, Greene says. "All (lenders) are doing is sharing it with the consumer," he says.
The requirement won't help consumers who want to view their scores before they apply for a loan. A federal law enacted in 2003 requires the three main credit bureaus to provide consumers with a free annual copy of their credit reports, but they're not required to include a score.
Consumers can purchase a credit score from the credit bureaus when they order their free credit reports. They can also obtain credit scores when they enroll in credit-monitoring services offered by the credit bureaus.
However, those scores aren't necessarily the same ones lenders use, according to a report issued Tuesday by the Consumer Financial Protection Bureau. Some credit bureaus sell consumers "educational" scores that aren't the ones used by lenders. In other cases, the score may be based on a different model than the one lenders use, the report said.
If these differences lead consumers to mistakenly believe they're poor credit risks, they may settle for less-favorable terms than they're eligible to receive, the report said. Conversely, a consumer who mistakenly believes he is a good credit risk could waste time and effort applying for loans he's not qualified for, CFPB said.
More cash
A separate provision of the financial reform bill that takes effect today will double the amount of money financial institutions must make available to customers after they deposit a check.
The provision requires banks and credit unions to make a minimum of $200 available to depositors in one business day, up from the current minimum of $100. There are exceptions: Financial institutions can hold on to funds for a longer period if the check exceeds $5,000 or the customer has repeatedly overdrawn his or her account.
Nessa Feddis, senior counsel for the American Bankers Association, says most banks already exceed the new requirement. "I don't think many consumers are going to notice" the change, she says.
But some financial institutions have expressed concern that the rule change will make it more difficult for them to identify fraudulent checks. "There's going to be more of a risk exposure to financial institutions in general as a result of this" rule change, says Mary Dunn, general counsel for the Credit Union National Association, a trade group.
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Don’t mess up a Kentucky mortgage refinance

Don’t mess up a Kentucky mortgage refinance


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Thursday, August 18, 2011

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: Louisville Kentucky Mortgage Rates Today 08/18/201...

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Tuesday, August 16, 2011

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Monday, August 15, 2011

Fannie Mae breaks rules to foreclose on unsuspecting homeowners

Fannie Mae breaks rules to foreclose on unsuspecting homeowners

Louisville Kentucky Mortgage

Homeownership: Kentucky resources that can help you buy, maintain and keep your home.


Homeownership:  Kentucky

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More From HUD
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 -  Homebuyer's kit
 -  How much home can I afford?
 -  Let FHA loans help you
 -  How to buy a HUD home
 -  FHA mortgage limits
 -  Settlement and closing costs
 -  Home improvements
 -  Refinancing home mortgages
 -  Reverse mortgages
 -  Fair housing
 -  Approved mortgage lenders

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Links
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 -  Tax Credits for Energy Efficiency Improvements
 -  Mortgage information from the Federal Reserve Bank
 -  Loan programs for veterans
 -  Is Homeownership right for you?
 -  Homesales.gov
Owning a home is a big part of the American Dream. Here are some resources that can help you buy, maintain and keep your home.

Getting Started
 -  Housing counseling agencies  - free or low-cost counseling services for buying, renting, defaults, foreclosures, credit issues and reverse mortgages
 -  Predatory lending  - beware - whether you're buying or refinancing your home, don't become a victim of unfair lending practices
Buying a Home
 -  Assistance programs  - resources and programs to help you buy and maintain your home
 -  HUD homes for sale
 -  Homeownership vouchers - some public housing agencies help you become a homeowner through the Housing Choice Voucher Homeownership Program
Owning and Maintaining Your Home
 -  Home repairs  - money for home improvements and repairs
 -  Avoid foreclosure - don't lose your home

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Other Kentucky Resources
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 -  Housing resources for seniors
 -  Help with your utility bills
 -  Disaster relief and emergency assistance
 -  Health and environmental information  - safeguard your home and family
 -  Rural housing programs -
 -  USDA Rural Development Programs
 -  Housing resources for Native Americans
 -  Homeowner warranties in Kentucky
 -  FHA-approved protection plans
 -  Extended homeowner warranties
 -  FHA-accepted protection plans
 -  The Kentucky Homeownership Protection Center provides a centralized location for information on public services to assist Kentuckians in keeping their homes. Homeowners can find information on the foreclosure process, utility assistance and home repair assistance to make smart choices and avoid losing their homes.  For more information, call toll-free 1-866-830-7868.