Tag: Mortgage insurance

Kentucky Mortgage Underwriting Guidelines updated for 2013


Kentucky Mortgage Underwriting Guidelines updated for 2013.

via Kentucky Mortgage Underwriting Guidelines updated for 2013.

via Kentucky Mortgage Underwriting Guidelines updated for 2013.

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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|

Dealing with Mortgages in Kentucky


Dealing with Mortgages

Looking for the Best Mortgage?

 

Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage— whether it’s a home purchase, a refinancing, or a home equity loan—is a product, just like a car, so the price and terms may be negotiable. You’ll want to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating may save you thousands of dollars.

 

Find detailed information about the Home Affordable Refinance and Modification programs along with self-assessment tools and calculators to empower borrowers with the resources they need to determine whether they might be eligible for a modification or a refinance under the Administration’s program. Through this website, borrowers can connect with free counseling resources; locate homeowner events in their communities; find a handy checklist of key documents and materials to have ready when making that important call to their servicer.

 

Agency: Department of the Treasury

 

Gives you key points to help you choose the mortgage that is best for you. Provides tips on determining your budget, understanding pricing and fees, comparing loan options and gathering information from trusted resources.

Audience: 
Adults
 

Ideas and information on topics such as how to: get the best possible interest rates, avoid paying unnecessary fees, find “emergency” cash at affordable prices, and steer clear of credit-related rip-offs and scams.

Audience: 
consumers
 

This brochure explains how mortgage modification programs can help those at risk of foreclosure save their home.

Audience: 
Homeowners
 

Agency: Federal Deposit Insurance Corporation

 

The Consumer Advisory, issued by the Office of the Comptroller of the Currency, is designed to help you better understand reverse mortgages. Reverse mortgages are complex loans, and are secured by your home. It is important to understand their terms, risks, and costs before you sign a reverse mortgage contract. It is also important to consider alternatives to reverse mortgages.

Audience: 
General Audience, Bank Customers
 

Agency: Office of the Comptroller of the Currency

 

Common types of foreclosure rescue scams, how they work, and what you can do if you are facing foreclosure.

 

Agency: Office of Thrift Supervision

 

The Office of the Comptroller of the Currency’s Consumer Advisory provides advice to help prevent borrowers from becoming victims of mortgage modification and foreclosure rescue scams.  It outlines what people should watch out for to avoid mortgage modification and foreclosure rescue scams.  The advisory provides a list of resources people can use to find qualified sources for help and is also published in Spanish.

Audience: 
General Audience, Homeowners
 

Agency: Office of the Comptroller of the Currency

 

The Office of the Comptroller of the Currency maintains a Web site www.Helpwithmybank.gov, a clearinghouse that provides consumers with answers to more than 250 frequently-asked questions (FAQs) on such financial topics as bank accounts, deposit insurance, credit cards, consumer loans, insurance, mortgages, identity theft, and safe deposit boxes.

Audience: 
General Audience, Bank Customers who need help
 

Agency: Office of the Comptroller of the Currency

 

This web page provides quick access to several resources to help homeowners, community stakeholders, and the banking industry help prevent unnecessary foreclosures and stop foreclosure “rescue” scams that promise false hope to consumers at risk of losing their homes. For Additional information call toll-free 1-877-ASK-FDIC (1-877-275-3342); hearing impaired 1-800-925-4618.

Audience: 
General Public, Homeowners, Educators, Housing Counselors
 

Agency: Federal Deposit Insurance Corporation

 

More Americans feel added stress and anxiety about their financial future as talk of rising consumer debt, falling housing prices, rising costs of living, and declining retail sales bring up worries about the nation’s economic health. Money is often on the minds of most Americans. In fact, according to the American Psychological Association’s 2007 Stress in America survey, money and work are two of the top sources of stress for almost 75 percent of Americans. Add to the mix headlines declaring a looming economic recession, and many begin to fear how they can handle any further financial crunch.

 

Agency: Department of Agriculture

 

Learn if a home equity plan is right for you and how to shop for the best plan.

 

Agency: Board of Governors of the Federal Reserve System

 

Alerts consumers to potential borrowing pitfalls and provides tips for getting the best financing deal possible. Warns consumers that regardless of whether a home equity loan is for home repair, bill consolidation, or some other purpose, it’s important to shop around.

 

Agency: Federal Trade Commission

 

Lenders offer home equity credit lines in a variety of ways. The questions and answers listed may help you decide if a home equity line of credit is right for you.

 

Agency: Federal Trade Commission

 

Explains The Home Ownership and Equity Protection Act of 1994, what loans are covered, what disclosures are required, and what practices are prohibited.

 

Agency: Federal Trade Commission

 

Shop for the mortgage package that best meets your financial needs.

Audience: 
Adults
 

Agency: Board of Governors of the Federal Reserve System

 

Owning a home is part of the American dream, but exotic mortgages also may carry risks. This publication, also available in Spanish, educates homebuyers on the loan terms and risks associated with non-traditional mortgage products.  Read this brochure, prepared by the Office of the Comptroller of the Currency and the federal bank, thrift and credit union regulatory agencies, to find out what I-O mortgage payments and payment option ARMs entail. The brochure includes a worksheet to assist homebuyers when comparing mortgages.

Audience: 
General Audience, Homeowners, Bank Customers
 

Agency: Office of the Comptroller of the Currency

 

Explains mortgage servicers’ responsibilities, in particular under the RESPA enforced by HUD; urges consumers to keep records of their payments, insurance coverage, and other information; explains how consumers can file disputes with their loan servicer; and includes sample letters that consumers may use when filing a dispute with their lender/servicer or with a credit bureau.

 

Agency: Federal Trade Commission

 

Explains your rights under Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA), and what to do if your loan is rejected.

 

Agency: Federal Trade Commission

 

Helps consumers evaluate what to expect in today’s mortgage market.

Dealing with Mortgages

  

 

Whether you are buying a house or refinancing your mortgage, this information can help you decide if an interest-only mortgage payment (an I-O mortgage)–or an adjustable-rate mortgage (ARM) with the option to make a minimum payment (a payment-option ARM)–is right for you.

 

Agency: Board of Governors of the Federal Reserve System

 

Find out about the risks and advantages of an adjustable rate mortgage. Use the Mortgage Checklist to help with your decision. Handbook is designed to help consumers understand an important and complex mortgage option available to homebuyers.

 

Agency: Board of Governors of the Federal Reserve System

 

The Homeowners Protection Act of 1998 establishes rules for automatic termination and borrower cancellation of Private Mortgage Insurance on home mortgages. Find out if you qualify.

 

Agency: Federal Trade Commission

 

This Consumer Advisory, issued by the Office of the Comptroller of the Currency (OCC), describes common scams, suggests ways to protect yourself, provides information on U.S. government loan programs and counseling resources, and lists 10 warning signs of a mortgage modification scam.

 

Agency: Department of the Treasury

 

For consumers who may be having trouble paying their mortgage. Explains options to help save their homes, and how to recognize and avoid foreclosure scams.

 

Agency: Federal Trade Commission

 

Explains how various foreclosure rescue scams work, and where consumers can find legitimate help.

 

Agency: Federal Trade Commission

 

The Federal Reserve Banks have established Foreclosure Resource Centers to help address local and regional challenges in their mortgage markets and local communities. The site contains a map with links to these regional foreclosure centers, where you’ll find resources for small municipalities, housing counselors, and consumer and community groups.

 

Agency: Board of Governors of the Federal Reserve System

 

Suggests do’s and don’ts when you are dealing with foreclosure.

 

Agency: Board of Governors of the Federal Reserve System

 

View a 30-second ad from the Federal Reserve Board directing consumers to free foreclusure prevention resources on the agency web site.

 

Agency: Board of Governors of the Federal Reserve System

 

This website provides information that may be helpful to consumers, financial institutions, and the community groups working with them on foreclosure-related issues. 

Audience: 
Homeowners, General Public, Housing Counselors
 

Agency: Federal Deposit Insurance Corporation

 

This booklet explains how property owners can avoid losing their homes because of delinquent payments.

 

Agency: Department of Housing and Urban Development

 

Whether you’re in foreclosure now or worried about it in the future, we have the information that can help.
 

 

Agency: Department of Housing and Urban Development

 

Includes terms, tips, a checklist, and information to help you find a plan that meet your needs, and protect your interests.

 

Agency: Federal Trade Commission

 

Practical information and resources to help you make your mortgage payments and keep your home.

 

Agency: Board of Governors of the Federal Reserve System

 

Compare monthly mortgage payments and the amount of equity you’ll build for up to six types of fixed- and adjustable-rate mortgages.

 

Agency: Board of Governors of the Federal Reserve System

 

FDIC Consumer News provides practical guidance on how to become a smarter, safer user of financial services. Consumer News articles issued in 2009 and beyond are being adapted for audio. Individuals are able to click the desired issue to download or listen to the articles in that issue; go to http://treas.gov/cgi-bin/redirect.cgi?http://www.fdic.gov/consumers/consumer/news/audio/index.html

Audience: 
General Public
 

Agency: Federal Deposit Insurance Corporation

 

The form used by a consumer to file a complaint about a thrift or savings association.

 

Agency: Office of Thrift Supervision

KHC’s First Mortgage Government Loan Products


KHC’s First Mortgage Government Loan Products

Federal Housing Administration (FHA)

Minimum 640 credit score required.

Financing to 96.50% of lesser of sales price or appraised value.

All KHC DAPs and other KHC-approved secondary financing may be used.

Maximum 6% seller-paid items.

Maximum ratios of 40/45 with AUS approval.

28 for HUD’s full policy.

All borrowers must be scored by TOTAL and receive approve/eligible or accept/accept.

Lender must follow the FHA maximum mortgage limits for particular area

see https://entp.hud.gov/idapp/html/hicostlook.cf

just follow Upfront and Annual Mortgage Insurance Premiums Guidelines (see information below).

Upfront and Annual Mortgage Insurance Premiums

Loan Terms Greater than 15 Years

Case numbers on or after Monday, April 18, 2011

LTV less than or equal to 95%

1% annual 1.10 monthly

LTV greater than 95%

1% annual 1.15 monthly

Conventional

Minimum 660 credit score required

Maximum loan-to-value (LTV) ratio is 80%.

Maximum ratios 40/45 with AUS approval.

No down payment assistance products may be used. Borrower must meet down payment requirements with their own funds or a gift.

Federal Home Loan Bank monies allowed once borrower meets the 20% down payment requirement. Must be entered as subordinate

financing in DU/LP.

Pre-purchase education required as per AUS findings.

Not available for manufactured housing.

Appraiser Independence required (see page 4).

KHC does not presently have a product for 81% LTV or greater.

Rural Housing Services (RHS)

Minimum 640 credit score required.

Financing to 100% of the appraised value, plus guarantee fee of 3.5%.

All KHC DAP programs and other KHC-approved secondary financing may be used.

No maximum on seller-paid items.

Ratio requirements and guarantee fee per agency guidelines.

KHC will accept Government Underwriting System (GUS) findings, including reduced documentation and, with approval, expanded

ratios up to 40/45.

Veteran’s Administration (VA)

Minimum 640 credit score required.

Ratios up to 40/45% with AUS Approval.

Financing to 100% of the lesser of the appraised value or sale price.

All KHC DAP programs and other KHC-approved secondary financing may be used.

Maximum 4% seller-paid items.

Follow agency guidelines for ratio requirements and funding fee.

100% Rural Housing loan in Kentucky



100% Rural Housing loan in Kentucky

Do you realize that a 1 -4 person household can have income of $74,050, and a 5-8 person household up to $97,750 and qualify for a 100% Rural Housing loan in Kentucky?

 

And, do you realize that qualifying income limits may be pushed even HIGHER using standard eligible deductions including child care expenses, deductions for members of household under 18 and more (use the calculator and select income eligibility at http://eligibility.sc.egov.usda.gov to find more exemptions)   

 

Many, many more properties are eligible than most people realize, and the pricing is great with only two possible adjustments, and it’s a super easy loan to process…with only one other form that a conventional loan, and turn times are excellent these days!!!

 

Check out Rural Housing, an unbelievably great loan for both you and your borrower!!!

 

A few highlights and sample pricing below

 

No monthly mortgage insurance

Loans up to 100% of appraised value

6% seller concessions for closing costs and prepaids

Minimum credit score 620

Maximum DTI of 50%

Conventional loan packaging with only 1 extra form