- Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. Most lenders will not go below 580 to 620 score, and very few lenders will go to 580 score. It's best to work on getting your scores up before you apply or work with a loan officer to improve them.
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KENTUCKY USDA RURAL HOUSING APPROVAL GUIDE FOR A MORTGAGE
How do I determine eligibility for a Kentucky Rural Housing USDA loan? To be eligible for a USDA home loan, borrowers must meet the program’s basic eligibility requirements. These requirements are relaxed compared to other mortgage options and are in place to ensure borrowers can make their monthly mortgage payments. New Kentucky USDA Rural Housing Income limits for most counties in 2024 (*) in Kentucky are $110,600 for a household family of four and household families of five or more can make up to $146,050 with the new changes for • Employment. Applicants must have proof of two years of stable income and employment. • Credit. Applicants are not required to have a minimum credit score to qualify for USDA’s guaranteed underwriting credit requirements. However, most lenders will want a 620 or preferably to get an Automated Approval 640 is the magic number in most cases. With regards to bankruptcy, 3 years is usually the date needed to lapse since your discharge. Income: Student Loans: They are pretty tough on student loans and qualifying with your current student loan debts. They will make us use .5% of your outstanding balance on student loans, so sometimes this will cause the loan to get denied because your debt-to-income ratio is too high. • Property location. Homes must be located within a rural area, as defined by USDA. Rural areas are any that have a population less than 35,000 depending on the area’s designation. Use this tool from USDA to determine if a specific address is eligible. • Physical property. Homes must be the borrower’s primary residence, have direct access to a street, and have adequate utilities and water and wastewater disposal, among other things No working fams allowed or properties that income producing livestock or crops. . Job History – Similar to all other mortgage loans, a two-year employment history is required. You must show that you have been consistently employed for the past two years in order to qualify for USDA financing; however, in certain circumstances a small gap in employment may be permitted with a reasonable explanation. Our Loan Specialists can discuss your specific situation to see if your income is eligible. Additionally, if you have just completed schooling or military service and are newly employed but do not yet have a 2-year history, your income may also be eligible. Income Limits – The USDA program is intended to assist low and moderate-income households, therefore, to be eligible for a USDA loan, your household income may not exceed the moderate-income limits established for the specific county in which you are financing a home. Our Loan Specialists can help you determine your eligibility, or may view the eligibility requirements on this page of the USDA website: DTI Ratio– One of the main criteria in determining if you will be approved or not is your debt-to-income ratio. While you must not make too much money, you also must not have too much debt. Your debt-to-income ratio is how much monthly debt you have (only those debts which show on your credit report are counted) compared to your qualifying income. So if your household income is $4,000/month, and your currently monthly debts (excluding rent), combined with your new mortgage payment are $1,500/month, this would equal 37.5% DTI ratios (this was calculated by taking $1,500 and dividing it by $4,000). Generally, your DTI ratio must be 41% or lower; however, in certain cases, a DTI of up to 44% may be acceptable. Our Loan Specialists can help determine your qualifying ratio and discuss these options with you. Credit Score – The minimum credit score varies from lender to lender, but most want to see at least a 620 to 640-credit score for you to be approved with the automated GUS underwriting system used by USDA Text/call: 502-905-3708 email: kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.com/ 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/
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KENTUCKY VA MORTGAGE LENDER APPROVAL REQUIREMENTS
Kentucky VA Mortgage Loan Information What are VA Home Loans? VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today's VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of homes current equity. What are the eligibility requirements for a VA Loan in Kentucky? Veterans Affairs loan guidelines use two methods of income qualification in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 580 to 620 credit score for a VA Loan approval. Keep in mind, VA guidelines do not call for a credit score but most lenders institute minimum credit score overlay to protect from buybacks from VA loans if they have too many go into foreclosure How much can I borrow? The maximum Kentucky VA Mortgage amount is determined by: Maximum VA Loan in Kentucky: The largest loan allowed for VA mortgages with zero down is now based on your VA loan entitlement in KY. Please refer to the Kentucky VA Loan Limit chart at the bottom of this page to see your area's limit. Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value. What will the down payment and closing costs be? no down payment required and closing costs vary from lender to lender and usually is based upon the loan amount, credit score, time to close (lock period) and whether or not you get a par rate or a higher rate with a lender credit to pay some of your closing costs at closing. What property types are allowed for VA Loans in Kentucky? VA Loans may be used to purchase or refinance single-family residences and VA approved condo projects if the property is the veteran's primary residence. Can I do a VA refinance in Kentucky? Three kinds of VA Refinance programs are available for veterans in Kentucky. Rate/Term VA Refinance The Rate/Term VA Refinance can be used to refinance a conventional, FHA or subprime mortgage into a stable, fixed rate VA Loan. VA Cash-Out Refinance A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a homes current value and take cash out for any reason. Streamline Refinance The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable rate mortgage into a fixed rate. A VA Streamline Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification. How much can I refinance in Kentucky? The maximum amount for an KY VA loan is determined by: Maximum VA Loan in Kentucky: The largest loan allowed for a VA Mortgage varies from county to county. To see what the limit is in the county in which you're interested, visit the following page 👇👇 https://www.benefits.va.gov/HOMELOANS/purchaseco_loan_limits.asp. This site lists U.S. territories as well as states. Maximum Finance: In Kentucky, The maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 100% of the appraised value for a VA cash out refinance. Joel Lobb Mortgage Loan Officer American Mortgage Solutions, Inc. 10602 Timberwood Circle Louisville, KY 40223 Company NMLS ID #1364 Text/call: 502-905-3708 fax: 502-327-9119 email: kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.com/ NMLS 57916 | Company NMLS #1364/MB73346135166/MBR1574 The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org).
NMLS ID# 57916
Evo Mortgage - Company NMLS# 1738461
Mortgage lender in Kentucky
