Kentucky VA Loan Overview for 2013

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As a licensed Kentucky Mortgage loan officer, I have originated over 300 VA Home loans in Kentucky and I know how great they are for Kentucky Families; a home loan with zero down, at a very low 30 year fixed rate with no monthly mortgage insurance. I consider myself a VA Home loan expert from Louisville Kentucky and I would like to assist you in your next VA home loan in Kentucky. I have created a Kentucky VA home mortgage website for information and insights to the VA Home Loan NMLS #57916

502-905-3708 or email kentuckyloabn@gmail,.com  NMLS#57916

Deal with someone locally on your VA loan instead of a person behind a 1-800 number. Honest, straight-forward service right here in Kentucky.

 

 

Kentucky FHA Mortgage Guidelines for 2013

Kentucky FHA Mortgage Guidelines for 2013

What is the primary benefit of an Kentucky FHA mortgage loan in 2013?

  • Low down payments
  • Easier to qualify for with lower credit scores
  • Higher debt ratios allowed for borrowers\
  • Easier Qualifying Appraisal Standards versus USDA Loans in Kentucky

How low can the down payment be?

As low as 3.5% down! Other than a VA Loan or a USDA Loan that may have a zero down payment requirement, this is the lowest down payment mortgage program available.

How low can my credit scores be?

Due to near constant changes in legislation, lending requirements and related issues, the FHA credit score regulations and underwriting credit score requirements change from time to time. Currently, to get maximum financing (96.5% LTV) on typical new home purchases, applicants should have a minimum credit score of 580, but our current FHA investors require a 640 mid credit score. .

How high can my debt to income ratio be?

When either or both of the permissible ratios of 31% (for the total mortgage payment) and 43% (for the total mortgage payment
plus all recurring monthly revolving and installment debt) is/are exceeded, the lender is required to provide justification as to why they believe the mortgage presents an acceptable risk. The ratios can be higher for certain borrowers. Only your lender can tell you for certain since many special conditions apply. Again, this is why it pays to shop multiple lenders.

Why do I need FHA mortgage insurance?

Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements
include mortgage insurance primarily for borrowers making a down payment of less than 20 percent. This is similar to the requirements for conventional loan borrowers with respect to Private Mortgage Insurance (PMI).

Term > 15 Years
LTV
Effective
Annual MIP
<= $625,500
<=95.00%
11-Jun-12
120 bps
<= $625,500
>95.00%
11-Jun-12
125 bps
Above $625,500
<=95.00%
11-Jun-12
145 bps
Above $625,500
>95.00%
11-Jun-12
150 bps
Term <= 15 Years With LTV Above 78%
Base Loan Amount
LTV
Effective
Annual MIP
<= $625,500
<=90.00%
11-Jun-12
35 bps
<= $625,500
>90.00%
11-Jun-12
60 bps
Above $625,500
<=90.00%
11-Jun-12
60 bps
Above $625,500
>90.00%
11-Jun-12
85 bps

Decrease to Annual MIP on certain Kentucky Streamline FHA Refinances
SF forward streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 bps, regardless of the base loan amount and takes effect on or after June 11th, 2012.

FHA’s monthly mortgage insurance payments will be automatically terminated when these conditions occur:

  • For mortgages with terms 15 years and less and with Loan to Value ratios 90 percent and greater, annual premiums will be canceled when the Loan to Value ratio reaches 78 percent regardless of the amount of time the mortgagor has paid the premiums.
  • For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent, provided the mortgagor has paid the annual premium for at least 5 years.
  • Mortgages with terms 15 years and less and with loan to value ratios of 89.99 percent and less will not be charged annual mortgage insurance premiums.