Tuesday, December 18, 2018

Kentucky First Time Home Buyer Programs for 2019










Here are action steps you can take right now to buy a home in Kentucky in 2019



1. Focus on your credit score on getting approved for a mortgage loan in Kentucky for 2019


FICO credit scores are among the most frequently used credit scores, and range from 350-800 (the higher, the better). A consumer with a credit score of 750 or higher is considered to have excellent credit, while a consumer with a credit score below 620 is considered to have poor credit.
To qualify for a mortgage and get a low mortgage rate, your credit score matters.
Each credit bureau collects information on your credit history and develops a credit score that lenders use to assess your riskiness as a borrower. If you find an error, you should report it to the credit bureau immediately so that it can be corrected.


2. Manage your debt-to-income ratio


Many lenders evaluate your debt-to-income ratio when making credit decisions, which could impact the interest rate you receive.

A debt-to-income ratio is your monthly debt payments as a percentage of your monthly income. Lenders focus on this ratio to determine whether you have enough excess cash to cover your living expenses plus your debt obligations.

Since a debt-to-income ratio has two components (debt and income), the best way to lower your debt-to-income ratio is to:

First Ratio – The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe.

Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards, student loans, personal loans, child support, alimony….basically any consistent outgoing debt that you’re paying on. Again, if you’re paying less than 45% of your gross monthly income to all of the debts, plus your proposed housing payment, then……generally, you’re safe. You can go a lot higher in this area, but there are a lot of caveats when increasing your back ratio.



3. Keep credit utilization low on your credit cards


Lenders also evaluate your credit card utilization, or your monthly credit card spending as a percentage of your credit limit.
Ideally, your credit utilization should be less than 30%. If you can keep it less than 10%, even better.
For example, if you have a $10,000 credit limit on your credit card and spent $3,000 this month, your credit utilization is 30%.
Here are some ways to manage your credit card utilization:
  • set up automatic balance alerts to monitor credit utilization
  • ask your lender to raise your credit limit (this may involve a hard credit pull so check with your lender first)
  • pay off your balance multiple times a month to reduce your credit utilization

4 . Look for down payment assistance in Kentucky


There are various types of down payment assistance, even if you have student loans.
Here are a few:
Kentucky Housing Down Payment Assistance of $6000
https://www.mylouisvillekentuckymortgage.com/
There are federal, state and local assistance programs as well so be on the look out.


If you want a personalized answer for your unique situation call, text, or email me or visit my website below:









Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916


American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
Company NMLS ID #1364



Text/call: 502-905-3708

email: kentuckyloan@gmail.com
https://kentuckyloan.blogspot.com/


















Thursday, December 13, 2018

Kentucky VA Loan Limits 2019


Kentucky VA Loan Limits 2019
 
VA has announced they will be adopting the 1-unit 2019 FNMA and VA Kentucky County Loan Limits as listed in Bulletin 11:3:2018. Individual county loan limits can be found HERE.
  • Effective Friday December 14th, Fusion will be updated to allow Kentucky VA loans to be locked and underwritten using 2019 Loan Limits.
  • Kentucky VA loans underwritten using the new 2019 Loan Limits are not eligible to close and fund until Wednesday January 2nd.


Compare that to other loan options:
Loan TypeMinimum Down Payment Required
USDA0
FHA3.5%
VA0
ConventionalTypically 3- 20%

Competitive Interest Rates

Due to the USDA guarantee, lenders are able to offer some of the lowest interest rates on the market. While actual rates will vary by lender due to other contributing factors, know that your credit profile and current market conditions play a vital role in your mortgage rate.

Low Monthly Mortgage Insurance

With a conventional loan, lenders require you to pay "private mortgage insurance" (PMI) if you don't come up with a 20 percent down payment. FHA loans also have high annual mortgage insurance fees.
USDA loans, on the other hand, don't have PMI. Instead the USDA uses two fees: an upfront guarantee fee that is paid once when you close on the loan, and an annual fee, which gets lumped into your monthly mortgage payment. The upfront fee is 1 percent of the total financed amount while the annual fee is 0.35 percent of the loan's current balance.
USDA loans have the lowest funding fee of all government-backed loan products.
Here's how USDA mortgage insurance compares on a $200,000 mortgage:
Loan TypePMI FeaturesMortgage Insurance RateEstimated Costs
USDABorrowers pay annual fee for the life of the loan.1% Upfront Funding Fee
0.35% Annual Fee
$2,000 Upfront
$58 per Month
FHABorrowers pay annual fee for the life of the loan.1.75% Upfront Funding Fee
0.85% Annual Fee
$3,500 Upfront
$139 per Month
VAFee varies based on nature of service, down payment and first-time use.2.15% Funding Fee for Most Purchase Loans$4,300 Upfront
ConventionalRate varies based on credit score and down payment amount.0.2 - 1.5% PMI$1,000 - $2,000 Annually
For conventional loans, PMI typically ends once the borrower's loan-to-value ratio reaches about 80 percent.
Borrowers with FHA and VA loans can lower their mortgage insurance costs by putting down at least 5 percent.

Flexible Credit Guidelines

Most conventional lenders look for a credit score of at least 660, however you'll need something closer to 720 to qualify for the lowest interest rates. Luckily, there is no minimum credit score for USDA loans, however you need a score of 640 or higher to qualify to use the USDA's automated underwriting system. Borrowers with lower credit scores can still qualify for USDA loans using manual underwriting.

Millions are Eligible

The vast majority of the United States falls within what the USDA considers an eligible, rural area. While the goal is to boost population in non-urban areas, the USDA's definition of rural areas casts a broad net. In fact, a "rural" area is defined as any area with a population of less than 35,000 people. That means that an estimated 97 percent of the country could qualify for a USDA loan.
Learn more about other property requirements for USDA loans.

Ability to Use if You Already Own a Home

While this benefit only applies in certain circumstances, it is possible to own additional property and apply for a USDA loan. The main thing to keep in mind is that the other property cannot be financed by a previous USDA loan.

Favorable Loan Terms

The USDA loan is available in common fixed-rate terms like 30-year and 15-year mortgages.

Comparing the Loan Types

According to the most recent USDA data, the average USDA mortgage in 2017 was $145,436. Let's take a closer look at the four major loan options with a real-world scenario. For a simple comparison, let's compare a $150,000 mortgage with an interest rate of 4.75 percent. We'll assume that you are making the minimum required down payment for each loan type and use a consistent estimate for monthly property taxes and homeowners insurance ($250).
Loan TypeMinimum Credit ScoreMinimum Down PaymentFunding FeePrincipal & InterestTaxes & InsuranceMortgage InsuranceMonthly Payment
USDA580$0$1,500$790$250$44$1,084
FHA500$5,250$2,625$769$250$106$1,125
VAno minimum score$0$3,225$799$250$0$1,049
Conventional620$7,500$0$743$250$90$1,083
As you can see, the two zero-down options have the lowest monthly payment given these parameters. But remember the second benefit from above; USDA loans typically offer some of the lowest interest rates on the market – meaning your specific situation could yield even more savings, depending on other compensating factors.
Credit score minimums will vary based on the lender, loan type and other factors. While FHA, USDA and VA loans allow for credit scores below the listed minimums, most lenders require at least a 620 score for any government-backed mortgage.
Note: In this example, we used:
  • Funding Fee:
    • USDA Loan = 1%
    • FHA Loan = 1.75%
    • VA Loan = 2.15%
    • Conventional loans do not have a funding fee
  • Private Mortgage Insurance:
    • USDA Loan = 0.35% Annual Rate
    • FHA Loan = 0.85% Annual Rate
    • VA loans do not have PMI.
    • Conventional = 1% Annual Rate
Kentucky VA Loan Limits 2019
 
VA has announced they will be adopting the 1-unit 2019 FNMA and VA Kentucky County Loan Limits as listed in Bulletin 11:3:2018. Individual county loan limits can be found HERE.
  • Effective Friday December 14th, Fusion will be updated to allow Kentucky VA loans to be locked and underwritten using 2019 Loan Limits.
  • Kentucky VA loans underwritten using the new 2019 Loan Limits are not eligible to close and fund until Wednesday January 2nd.


American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com
http://www.nmlsconsumeraccess.org/





If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

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.












Kentucky First Time Home Buyer Programs For Home Mortgage Loans: What kind of credit score do I need to qualify for...

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: What kind of credit score do I need to qualify for...:   What kind of credit score do I need to qualify for a Kentucky Mortgage Loan in 2019? Credit scores play an important part in getting...

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