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Louisville Kentucky Mortgage Lender

Louisville Kentucky Mortgage Lender

By Joel Lobb | Mortgage Broker
or Lender in Louisville, KY
  • Kentucky First Time Home Buyer Down Payment Assistance thru Kentucky Housing

    Posted Under: Home Buying in Louisville, Financing in Louisville, Credit Score in Louisville  |  November 9, 2013 7:59 AM  |  684 views  |  No comments






    -- 
    Joel Lobb (NMLS#57916)
    Senior  Loan Officer
    502-905-3708 cell
    kentuckyloan@gmail.com

    http://www.mylouisvillekentuckymortgage.com/


    This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.
    **Download Fair Housing Booklet – CLICK HERE
    All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines







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     Down Payment Assistance thru KHC, first time home buyer loans, Kentucky first-time home buyers, Kentucky FHA,Kentucky First Time Home buyer zero down payment, Kentucky VA, Ky USDA Rural housing

    Kentucky First Time Home Buyer Programs




    Kentucky Housing Corp or KHC 

    KHC is used for mostly applicants in urban areas of Kentucky that don't have access to USDA or other government agencies to buy a home with no down payment.
    Down Payment Assistance for Ky First Time Home Buyer, 100% Financing


    You cannot have an owed a home in the last 3 years to use KHC down payment assistance to buy a home with zero down. 

    Kentucky Housing Program guidelines:
    • First-time home buyers, unless property is located in a targeted county.
    • Interest rate is fixed at 2.5 percent without Down payment Assistance Program (DAP) or 3.0 percent with DAP.
    • Maximum ratios 40/45 percent.  
    • Executed purchase contract.
    • Existing or new construction property (purchase price limit $234,000).
    • Regular and Affordable DAP available.
    • FHA, VA, and RHS first-mortgage programs.
    • 640 credit score and AUS approval.
    • Gross annual household income limit of for all household sizes.

    -- 
    Joel Lobb (NMLS#57916)
    Senior  Loan Officer
    502-905-3708 cell
    kentuckyloan@gmail.com

    http://www.mylouisvillekentuckymortgage.com/

  • Federal Government shutdown and their effect on FHA, VA, USDA loans in Kentucky

    Posted Under: Home Buying in Louisville, Financing in Louisville, Credit Score in Louisville  |  October 1, 2013 12:38 PM  |  330 views  |  1 comment

    Federal Government shutdown and their effect on FHA, VA, USDA loans in Kentucky 

     The following is what we know, so far, about what the impact will be to our loan production efforts. 

    FHA- While the FHA offices are open with a reduced staff, the automated systems are 

    currently up and running. We should be able to obtain case numbers and perform other 

    functions that require the FHA Connection website. 

    VA- VA has notified lenders that they will be operating at full staff and as usual to serve 

    our Veterans.

    USDA- USDA offices are closed during the shutdown. No conditional commitments can 

    be obtained and Crescent cannot close loans without an executed conditional 

    commitment from USDA. Also note that GUS is not available during the shutdown and 

    we will be unable to make corrections in the automated system.

    IRS – The IRS offices are also closed. We will submit 4506T requests to our vendor as 

    normal to be delivered to the IRS when as they reopen. 

    Your business is very important to us and we will work to provide you with updated 

    information when it becomes available. 


    -- 

    Joel Lobb (NMLS#57916)
    Senior  Loan Officer
    502-905-3708 cell
    502-813-2795 fax
    kentuckyloan@gmail.com

    Key Financial Mortgage Co. (NMLS #1800)*
    107 South Hurstbourne Parkway*

    Louisville, KY 40222*

  • Appraisal Issues on Kentucky USDA and Rural Housing Loans

    Posted Under: Home Buying in Louisville, Financing in Louisville, Credit Score in Louisville  |  June 21, 2013 8:49 AM  |  337 views  |  1 comment

    Appraisal Issues

    We continue to see appraisal problems with HUD Handbooks and effective age. Water and Power must be on in order for the subject house to be properly inspected to determine if it meets the HUD Handbooks. We continuously see appraisals stating the HUD Handbooks are met, but the appraiser states power and/or water was not on (this is a contradictive statement). Please make sure the property meets HUD Handbooks with power and water on unless there is a repair required by the appraiser in order to meet the HUD Handbooks for the power or water to remain off until the repair is complete. Effective age must be supported with a detailed explanation within the appraisal.

     

    Below is a list of questions that will assist you in your review before submitting your appraisal for review to RD. This will help speed up the USDA review and resolve some of the appraisal issues we are currently seeing.

     

    1. ___Is the appraisal report signed and dated? (No supervisory signatures allowed per HUD 4150.2)

    2. ___If the actual age is substantially different from the effective age, has the appraiser supported the effective age with supporting documentation of all recent renovations?

    3. ___ Are comparables similar to the subject in size, age, design, quality, and amenities? Are all comparables sold within last 12 months and from similar neighborhoods?

    4. ___ Are all the adjustments on the URAR grid considered reasonable and consistent? (Lenders may be asked to provide supporting documentation on large line item adjustments)

    5. ___Are net adjustments exceeding 15%, gross adjustments exceeding 25%, and individual line adjustments exceeding 10% adequately documented in the report?

    6. ___If the subject is new construction; did the appraiser use new construction comparables?  Or if subject is existing, were comparables of existing homes used? (If not, a thorough explanation is needed why the same type comparables were not used)

    7. ___ Did the appraiser place an emphasis on “listings” or “a dwelling under contract” to help support the Market Value? (Note: RD does not allow use of unclosed comparables)

    8. ___Does the land and/or lot value exceed 30% of the appraised value? Is so, additional supporting documentation should be documented (Is it typical for the area and can the property be subdivided)

    9. ___Is the appraiser’s opinion of the land and/or lot value appropriate and supported?

    10. ___ Has the Cost Approach on Page 3 of the URAR been completed as required for new or existing dwellings less than 1 year old?

    11. ___Does the appraisal report contain the statement that the dwelling meets the HUD Handbooks? (Note: All utilities must be on at the time of inspection

    12. ___Does the Market Value appear reasonable and supportable given the current market trends and conditions? Has the appraiser avoided the appearance of backing into the estimate of Market Value?

    13. ___If the dwelling needs repairs and/or modernization, has the appraiser noted the items in the report and made the report “subject to” repairs being completed?

  • Kentucky FHA Mortgage Insurance and PMI Changes for 2013

    Posted Under: Home Buying in Louisville, Financing in Louisville, Credit Score in Louisville  |  February 14, 2013 1:52 PM  |  1,880 views  |  1 comment

    Kentucky FHA PMI Rates Changes 2013

    Effective April 1, 2013 these are the new Kentucky FHA PMI Rates. There are two kinds of Kentucky FHA PMI Insurance.  To calculate your FHA PMI Premium for a Kentucky FHA loan – take your Loan Amount and multiply it by the UFPMI rate (which will likely be 1.75%).  Add that PMI Dollar Figure to your loan amount.  That’s what your principal and Insurance is going to be based upon.

    Then that that TOTAL Loan Amount (including your Upfront PMI) and multiply that by the Annual FHA PMI Rate.  Divide that number by 12.  You will have THAT amount added to your Principal and Interest Payment with loans that have case numbers pulled after the end of March 2013.

    Additionally, you will note that the new effective annual FHA PMI rates for loans with an LTV of less than or equal to 78 percent and with terms of up to 15 years have gone from ZERO to .45%. The new annual FHA PMI changes ONLY for these loans is effective for case numbers assigned on or after June 3, 2013.   

     

    Term > 15 Years

    Base Loan Amount

    LTV

    EffectiveAnnual PMIUFPMI
    ≤$625,500≤ 95.00%April 1, 20131.30 %1.75%
    ≤$625,500> 95.00%April 1, 20131.35 %1.75%
    Above $625,500≤95.00%April 1, 20131.50%1.75%
    Above $625,500> 95.00%April 1, 20131.55%1.75%
    NOTE! Guideline Change. NO MATTER What the LTV is, there is a FHA PMI fee

    Term > 15 Years

    Base Loan Amount

    LTV

    EffectiveAnnual PMIUFPMI
    ≤$625,500≤ 90.00%April 1, 2013

    .45%

    1.75%
    ≤$625,500> 90.00%April 1, 2013

    .70%

    1.75%
    Above $625,500≤ 90.00%April 1, 2013

    .70%

    1.75%
    Above $625,500> 90.00%April 1, 2013

    .90%

    1.75%
    Exception: New Streamline Refinances previously endorsed on or before May 31,2009
    Base Loan Amount

    LTV

    EffectiveAnnual PMIUFPMI
    Any Amount

    Any

    June 11, 2012

    .55%

    .01%

    Note that FHA has also issued guidance regarding how long FHA PMI will be on the loan. Effective June 3, 2013 the following will be in effect:

    Previous and New FHA Annual PMI Duration

    Term

    LTV

    EffectivePreviousNew
    ≤ 15 yrs≤ 78April 1, 2013No annual MIP11 years
    ≤ 15 yrs> 78 – 90.00April 1, 2013Cancelled at 78% LTV11 years
    ≤ 15 yrs> 90.00April 1, 2013Cancelled at 78% LTVLoan term
    > 15 yrs≤ 78April 1, 20135 years11 years
    > 15 yrs> 78 – 90.00April 1, 2013

    Cancelled at 78% LTV & 5 yrs

    11 years
    > 15 yrs> 90.00%April 1, 2013

    Cancelled at 78% LTV & 5 yrs

    Loan Term

    action










    Joel Lobb (NMLS#57916)
    Senior  Loan Officer
    502-905-3708 cell

    http://mylouisvillekentuckymortgage.com


    Click here for your Free FHA Mortgage loan approval in Kentucky
  • Kentucky FHA Mortgage Changes for 2013

    Posted Under: Home Buying in Louisville, Financing in Louisville, Credit Score in Louisville  |  January 30, 2013 1:44 PM  |  1,733 views  |  1 comment

    Kentucky FHA Mortgage Guidelines for 2013


    FHA will increase its annual mortgage insurance premium for Kentucky FHA Mortgages beginning in early 2013. For example, for most new Kentucky FHA mortgages by 10 basis points, or 0.10%. Premiums on jumbo mortgages — $625,000 or larger — will also increase by 5 basis points, or 0.5%, to maximum authorized annual mortgage insurance premium. These increases exclude certain Kentucky FHA streamline refinance transactions.
    Now the big change. It use to be you only paid the annual mip for 60 months or 78% ltv, but now  FHA will also require most Kentucky FHA  borrowers to continue paying annual premiums for the life of their mortgage loan.
    In 2001, the FHA cancelled required MIP on loans when the outstanding principal balance reached 78% of the original principal balance. However, FHA will remain responsible for insuring 100% of the outstanding loan balance throughout the entire life of the loan, a term which often extends beyond the cessation of these MIP payments.

    For credit scores below 620 now, FHA is  requiring manual underwriting on loans with decision credit scores below 620 and DTI ratios over 43%, raising down payments on loans above $625,000, access to FHA after foreclosure and continuing efforts to improve risk management. There is still a 3 year waiting period for foreclosures and 2 years for a bankruptcy with no lates after bankruptcies. IF you have lates after bankrupcty , it will be hard to get a mortgage loan again.
    The FHA will also step up its efforts for approved lenders with regard to aggressive marketing to borrowers with previous foreclosures, while also reminding lenders of their duty to fully underwrite loan applications. All new loans must meet FHA guidelines.
    FHA will announce a proposal to increase down payment requirements for mortgages that have original principal balances above $625,000. The minimum down payment requirement for these mortgages will increase from 3.5% to 5%.
    Additionally, the FHA will require lenders to manually underwrite loans of which borrowers have a credit score below 620 as well as a total debt-to-income ratio greater than 43%. Thus, lenders will be required to document compensating factors supporting underwriting decisions to approve loans where parameters are exceeded.

    fha_va_home_loan_mortgages.gif

    Joel Lobb (NMLS#57916)Senior  Loan Officer
    502-905-3708 cell
    502-813-2795 fax
    jlobb@keyfinllc.com
    Key Financial Mortgage Co. (NMLS #1800)*
    107 South Hurstbourne Parkway*
    Louisville, KY 40222*
  • FHA TEMPORARILY EASES GUIDANCE ON LOUISVILLE KENTUCKY CONDO APPROVALS

    Posted Under: Home Buying in Louisville, Financing in Louisville, Credit Score in Louisville  |  November 22, 2012 9:02 AM  |  802 views  |  1 comment

    FHA TEMPORARILY EASES GUIDANCE ON LOUISVILLE KY CONDO   APPROVALS 

    FHA approved condos in Kentucky




    According to the changes, no more than 15% of the total units can be delinquent by 60 days or more on their condo association fees.  This was eased from a 30 day delinquency threshold. The Federal Housing Administration eased some requirements for financing the purchase of condominium units through August 2014, according to a letter sent to lenders Thursday.

    The new guidance is effective for all project approvals or reconsiderations submitted for review going forward.

    To protect the dwindling emergency insurance fund, the FHA put stricter rules in place.

    According to the changes made Thursday, no more than 15% of the total units can be delinquent by 60 days or more on their condo association fees.  This was eased from a 30 day delinquency threshold. No exceptions to the new rule will be granted, the FHA said.

    The agency still requires at least half of the units to be owner-occupied for projects completed more than one year ago. But the FHA released more specific guidance on how much investors can own on properties under construction or conversion. Investors can own up to 30% of the units on some of the projects in order to qualify for FHA financing.

    Other guidance was given on insurance coverage, commercial space limitations and other details.

    The Community Associations Institute, a trade group of community associations, pushed the FHA to revise the rules.

    “It was determined that certain policy adjustments were needed to address current housing market conditions,” the FHA said in the letter.  CAI Chief Executive Officer Thomas Skiba said the revisions were needed sooner but is still “excellent news.”

    FHA has responded to the critical issues we’ve raised. By doing so, more Americans can obtain FHA-insured mortgages to purchase condominiums,” Skiba said. This will spark home sales and help tens of thousands of condominium communities to begin to recover from the housing slump, and that can only help the national economy.”

    • 40% of all new loans are FHA Insured
    • Reverse Mortgages Now Require Associations to be FHA Approved
    • Fannie Mae & Freddie Mac will accept FHA Approval for Condo loans
    • Recently Approved Mortgage deal provides FHA with an additional $1 billion in Cash for FHA insurance.
    • FHA Approved Condos for sale attract a larger buyer pool
    • Lower down payment and FICO score requirements for potential buyers of an FHA Approved Condo
    • FHA loans are assumable, meaning they can be transferred from one buyer to another

    FHA Releases Condo Update – Areas of Concern for FHA Condo Approval Addressed

    ML Letter 2012-18

    Read full Mortgagee Letter: 2012-18  issued September 13, 2012 by HUD and the FHA

    The Federal Housing Administration released a long-awaited revision of its condominium project approval guidelines on September 13th 2012 The revisions to FHA condominium guidelines are contained in Mortgagee Letter 2012-18 and expire on August 31, 2014. FHA states it is making temporary adjustments to its condominium standards in response to market conditions.

    CAI has the new guidelines, Mortgagee Letter 2012-18, under review. FHA appears to have been responsive to several key CAI concerns including delinquency rates, fidelity insurance coverage, the condominium project certification statement, and limitations on commercial space.

    Preliminary staff analysis show FHA policy changes in the following areas—


    »         Delinquencies—No more than 15 percent of units may be more than 60 days delinquent. The 15 percent limitation includes all units in the project and FHA will not consider any exceptions to this standard. Previously, the guidelines used 30 day delinquency as a threshold. The change to 60 days is very beneficial to community associations.

     

    »         Employee Dishonesty Insurance—All new and established condominium projects with more than 20 units shall obtain and maintain employee dishonesty insurance coverage. The association’s policy must—
    o    cover all officers, directors and employees of the association
    o    all other persons handling or responsible for funds administered by the association
    o    the coverage amount must be no less than three months assessments on all units plus reserve funds unless State law mandates a maximum dollar amount of required coverage.
    o    If the condominium engages the services of a management company—
    §  the company must have obtained its own fidelity coverage that meets FHA association coverage requirements; or
    §  the association’s policy names the management company as an insured; or
    §  the association’s policy includes an endorsement stating that management company employees subject to the direction and control of the association are covered by the policy
    This is a substantial change to the previous requirements that required management companies to obtain separate fidelity insurance for each condominium.

     

    »         Project Certification (Appendix A)—FHA will require that the individual submitting a condominium project for approval certify that—
    o    To the best of their knowledge, the information in the approval request is accurate
    o    They have reviewed the project application and upon the advice given by an attorney it meets all State and local laws
    o    They have reviewed the application and it meets all current FHA condominium approval requirements, and
    o    They have no knowledge of circumstances or conditions that may have an adverse impact on the condominium project (construction defects, substantial operational issues, or litigation, mediation, or arbitration issues)
    Previous guidelines required much more onerous project certification attestation that had put the individual submitting the project approval for the condominium at risk for legal liability.

     

    »         Commercial Space Limitations—FHA will consider condominium projects with commercial space of between 25 and 35 percent for projects through the HRAP process only. FHA will consider, on a case-by-case basis, exceptions for mixed-use condominiums with commercial space of up to 50 percent, but requires substantial documentation for consideration. All exception requests must be submitted for review through the Philadelphia Homeownership Center.

    CAI will publish additional information and guidance following a complete analysis of the guidelines.

     

    Click to Read the new HUD Guidelines!

    Joel Lobb (NMLS#57916)
    Senior  Loan Officer
    502-905-3708 cell

  • FHA Announces Important Guideline Changes for Louisville Kentucky FHA Loans

    Posted Under: Home Buying in Louisville, Financing in Louisville, Credit Score in Louisville  |  May 14, 2012 6:10 AM  |  606 views  |  No comments

    Monday, May 14, 2012

    FHA Announces Important Guideline Changes 


    FHA Announces Important Guideline Changes
    FHA Announces Important Guideline Changes for Louisville Kentucky FHA Loans 

    Mortgagee Letter 2012-3 announces several key guideline changes on topics of self-employment, disputed credit, outstanding collections and identity of interest definitions. These changes are good from the perspective that they offer much clearer underwriting requirements on several key topics so not as much is left to interpretation or opinion. All of these changes are effective for cases assigned on and after April 1st.

    Topic: Self-Employment
    New Requirement for AUS Approve/Accept & Manual Underwriting: A P&L and Balance Sheet is required if more than a calendar quarter has elapsed since date of most recent calendar or fiscal-year end tax return was filed by the borrower – with no exceptions. Additionally, if income used to qualify the borrower exceeds the two year average of tax returns, an audited P&L or signed quarterly tax returns obtained from IRS are required.
    Topic: Disputed Credit Accounts
    New Requirement: AUS Accept/Approve does not need to be downgraded to a Refer and manually underwritten as long as
    • the total outstanding balance of all disputed credit accounts or collections are less than $1,000, and
    • Disputed credit accounts or collections are aged two years from date of last activity as indicated on the most recent credit report.
    If the borrower has individual or multiple disputed credit accounts or collections with singular or cumulative balances equal to or greater than $1,000, the accounts must be resolved (e.g. payment arrangements with a minimum three months of verified payments made as agreed) or paid in full, prior to, or at the time of closing. The payments arranged for the accounts must be included in the calculation of the borrower’s debt-to-income ratios.
    Disputed credit accounts or collections resulting from identity theft, credit card theft, or of unauthorized use, etc., will be excluded from the $1,000 limit under the terms shown below. The mortgagee must provide a credit report or letter from the creditor, or other appropriate documentation, to support that the borrower filed an identity theft or police report to dispute the fraudulent charges. Mortgagees must provide documentation in the case binder to show all disputed or collection accounts are resolved, verified as not a debt to the borrower, arrangements made for payment, or paid in full.
    Topic: Outstanding Collection Accounts & Court-Ordered Judgments
    New Requirement: If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing. If the total outstanding balance of all collection accounts is less than $1,000, the borrower is not required to pay off the collection accounts as a condition of mortgage approval.
    Note: Paying “down” of balances on disputed accounts and collections to reduce the singular or cumulative balance to below $1,000, is not an acceptable resolution of accounts.
    An exception to the payoff of a court-ordered judgment may be made if the borrower has an agreement with the creditor to make regular and timely payments, and provides documentation indicating that a minimum of three months payments have been made according to the agreement. The monthly payment must be included in the borrower’s debt-to-income ratio.

    Topic: Identity of Interest Transaction
    New Requirement: The definition of a family member for establishing “identity of interest” purposes has been expanded to include a child, parent, grandparent, spouse, legally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption, foster child, brother, stepbrother, sister, stepsister, uncle, and aunt.
    Please be sure to read the Mortgagee Letter in its entirety.

    Joel Lobb (NMLS#57916)Senior  Loan Officer
    502-905-3708 cell
    502-813-2795 fax
    jlobb@keyfinllc.com

    Key Financial Mortgage Co. (NMLS #1800)*
    107 South Hurstbourne Parkway*
    Louisville, KY 40222*
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