Tag: fixed rate

First Time Home Buyer Louisville Kentucky Mortgage Programs


First Time Home Buyer Louisville Kentucky Mortgage Programs

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All Kentucky Housing first mortgage loans are for a 30-year term at a fixed rate of interest. The home you purchase through Kentucky Housing must be the only residential property you own and you must occupy the home as your principal residence while the loan debt is still outstanding. To qualify, you must meet KHC’s regular income guidelines, make a down payment or qualify for down payment assistance, be a US citizen or legal alien and have an acceptable credit history. Some Kentucky Housing loans are subject to a federal recapture tax. Recapture is a federal income tax that the borrowers may have to pay if they have considerable growth in their income and they sell or transfer their KHC-financed home within 9 years. However, KHC has implemented a Recapture Tax Guarantee Program for all loans that close after October 1, 2006. The Recapture Tax Guarantee Program will reimburse homeowners if they are subject to pay the Federal Recapture Tax on their KHC mortgage loan upon the sale of their home.

Conventional Insured by approved mortgage insurance company. Minimum credit score of 660 or better. Quick turnaround time, 20 percent down payment and no up-front or monthly mortgage insurance.

FHA Insured by the Federal Housing Administration. Down payments as little as 3.5 percent. Can use DAP for 3.5 percent down payment requirement. Upfront and monthly mortgage insurance. Minimum credit score of 640.

VA Guaranteed by the Veterans Administration for qualified military veterans. No down payment if the property appraises for the sale price or greater. Credit underwriting is flexible. Minimum credit score of 620. No monthly mortgage insurance payments.

RHS Guaranteed by Rural Housing Services (RHS). Home must be located in a rural area as defined by RHS. No down payment if the property appraises for the sale price or greater. Minimum credit score of 640. No monthly mortgage insurance payments.

Mortgage Credit Certificates (MCC) A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an

income tax deduction

for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.

Special First Mortgage Loan Programs New Construction Program for Single-Parent, Disabled and Elderly Households offers loans for newly constructed houses at interest rates from 1 to 6 percent. These limited funds are available, usually in July, on a first-come, first-served basis. Guidelines Interest rate determined by the families’ ability to repay the loan. For new homes with a purchase price of $115,000 or less. Eligible borrowers: Single parents (at least one dependent under the age of 18 must live in the home.) Households with a person who has a permanent disability and who receives some form of disability income (SSI, SSDI, Veterans Disability etc.). Households where at least one of the home buyers is age 62 or older. Income guidelines: $28,000 for a household of 1 or 2 people; or $33,000 for a household of 3 or more people. Kentucky Housing’s DAP loan program may be used for down payment and closing cost assistance. Applying for a Kentucky Housing loan is easy. Just contact one of our approved lenders near you and ask for a Kentucky Housing loan.

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Joel Lobb (NMLS#57916) Senior Loan Officer American Mortgage Solutions, Inc 800 Stone Creek Pkwy, Ste 7, Louisville, KY 40223 (: (502) 905-3708 | 7 Fax: (502) 327-9119|

Louisville Home Sales | All good news in August | Derby City Cents


Louisville Home Sales | All good news in August | Derby City Cents.

http://blogs.courier-journal.com/derbycitycents/2011/09/19/louisville-home-sales-all-good-news-in-august/?odyssey=obinsite

 

Louisville Home Sales | All good news in August

While it’s still far from a balanced market, today’s monthly sales report from the Greater Louisville Association of Realtors shows nearly all numbers moving in the right direction.

 

Sales were up 21 percent from a year earlier. Inventory is still high, but coming down. Sales are still off from last year’s pace, but the gap is closing. And the number of sales in the pipeline is up.

Keeping things in perspective, last month’s 1,133 sales is nowhere close to 1,521 in August 2007, before the recession hit, but it was the strongest August since that time, even surpassing the tax-credit infused market of 2009.

Here’s the Realtors full press release, including information specific to Jefferson, Oldham and Bullitt counties:

Overall Market Comment:

Members of the Greater Louisville Association of Realtors® replaced July as the year’s second most productive month by boosting sales 8% to end August 2011. August replaced July as the second most productive month of 2011 with 1,133 sold units, compared to 1,048 units in July.  For the year, July was moved to 3rd place, behind August (1133 units) and June which recorded 1,137 closed units. The August sales figures also continued a trend noted in July, a trend of outpacing same month figures from 2010. The August 2011 sales were a whopping 21% stronger than August 2010, providing more evidence that Realtors® are steadily surviving in a post Home Buyer Tax Credit market.   The average selling price for August 2011 slipped to $169,023, from $179,758 in July 2011, but was nearly even with August 2010’s average sales price of $172,949. Inventory, or the number of homes for sale, declined 2% in August to 9046 from 9,295 in July and 9,213 in June. Inventory remains near a 10 month supply; inventory levels near a 6 month supply are often associated with an in-balance market. Year-to-date sales remain nearly 10% behind last year’s pace, but the upward trend in July and August has closed the gap somewhat.

Overall, GLAR members are encouraged by the summer sales period (June-July-August) and continue to steadily move forward in a post- HBTC market.  While economic factors remain weak, predictions are that a low interest rate climate will likely remain in the 4th quarter, a tool Realtors® welcome.

Jefferson County Market Comment:

Realtors® posted 782 closed sales in Jefferson County in August 2011, up nearly 23% from August 2010. The average selling price in the county fell to $168,859, from $173,186 for July 2011, and $171,154 for June 2011.  Jefferson County inventory remains near a 9 month supply with 5,723 active units, down slightly from last month, but up 27% from August 2010. Year-to-date sales, in the county, stand at 5,108 units, down 11% from a similar period last year.  In summary, the Jefferson County market followed the broader GLAR analysis by breaking the year-to-date trend of lagging behind 2010 and posting an increase in sales volume when matched against the same period last year.

Oldham County Market Comment:

The number of closed sales in August jumped 38% compared to Aug 2010 (when the buyer tax credits were ending), bringing the YTD total up 7% compared to the same time last year. The average and median prices in Aug 2011 vs 2010 were up 12% and 6% respectively, reflecting the sale of some higher priced homes that had not sold in the Spring market. The YTD average and median figures were up a more modest 9% and 4% respectively, and are less volatile than single month data points. The number of sales going under contract was up 5% and the inventory of unsold homes remained slightly higher than last year by 6%. However, this was a 5% decrease in inventory compared to last month. Continued low mortgage rates will be the key factor in the resumption of a balanced market in Oldham County, as it will be with the broader Louisville market.

Bullitt County Market Comment:

Realtors® posted 73 closed sales in Bullitt County in August 2011, down from 80 sales in July 2011, but up nearly 24% from August 2010. The average selling price in the county, for August, was $138,439, a decline of 9% from July 2011, but up 1% from August 2010. Year-to-date sales, in the county, stand at 495 units, down 11% from a similar period in 2010. Supply, or the number of homes on the market, has fallen to 584 units, down 32 units from July 2011, but up nearly 13% from a similar period in 2010.

Kentucky VA Home Loans, Zero Down


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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 OptionsMilitary VA Home Mortgage Loan lender in Minneapolis St Paul MN Milwaukee Madison WI

VA 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



US FlagWe 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


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