Mortgage issues

KHC Offers $10,000 Down Payment Assistance to Homebuyers

KHC Offers $10,000 Down Payment Assistance to Homebuyers

KHC Down Payment Assistance

One of the biggest challenges for home buyers is saving for a down payment. For many, this is what holds he/she back from purchasing a home. Luckily, the Kentucky Housing Corporation has announced some news that should make anyone struggling to save for a down payment happy!

The Kentucky Housing Corporation (KHC) is offering $10,000 in down payment assistance to homebuyers! This down payment assistance program is called Hardest Hit Fund (HHF) Down Payment Assistance (DAP) and it is available as of today, 1/11/17


What is a FHA 203k Renovation Loan?

203k Rehab Mortgage Insurance

A few years ago, Steve Dobbs wrote about his experience obtaining a 203k rehab loan. Steve purchased a rehab property and obtained a 203k loan for the repairs. We are going to touch on the topic more in our latest blog.

The Federal Housing Administration (FHA) provides both limited 203k rehab mortgage and 203k rehab mortgage insurance. Both loans are available to homeowners to provide financing on the purchase of a home as well as financing on renovations on homes.

To obtain 203k rehab mortgage, the home must be at least one-year-old. The renovation can be as...

USDA Reduces Fees

USDA Reduces Fees

Excellent news! USDA recently made a major reduction in fees charged to borrowers. In this article, we will discuss which fees have been reduced and how you can use our mortgage calculator for USDA loans. First, let's discuss the basics regarding USDA loans: 

What is a USDA loan?

USDA stands for United States Department of Agriculture. The USDA’s Rural Development (RD) loans are for homes in rural areas.  These are commonly referred to as RHS loans or Rural Housing Service loans.  Most of our clients use the guaranteed program as opposed to RHS direct. There are some requirements to obtain an RD loan, including the particular rural area the home is in. Not all rural areas qualify...

Applying for a Home Loan in Louisville

Applying for a Mortgage Loan in Louisville

You’ve just been preapproved for a loan. You begin your search for your new home and find your dream home right away. Your REALTOR writes a contract and it is accepted by the seller. This is such an exciting time in your life! Purchasing a home is one of the most monumental events you will ever experience.  However, there are many things you should keep in mind when purchasing a home, especially when it comes to your home loan. In order to receive a mortgage loan and move into your new home, you will need to follow a few guidelines.

Here a few things you should...

Changes in the FHA Mortgage Market

There have been several changes in the FHA backed mortgage market in the last year and the newest will occur on April 1. We will see upfront Mortgage Insurance increase from the current 1.0% to 1.75% that will help strengthen the capital reserves of FHA.  On top of this, the annual renewal premium will be as high as 1.25%. This will significantly increase a borrower’s cost.

This is important because a good many of our home buyers in Louisville utilize an FHA backed loan. As I look over my clients in the past, our first time home-buyers are often using FHA mortgages due to the low down payment required.

One complaint that I hear is that MI (Mortgage Insurance) is required with an FHA loan.  I think that it is hard to complain about paying mortgage insurance when you are able to buy a new home with a lot less than 20% down payment.  With this being said; the increase in Mortgage Insurance on a yearly basis and upfront will make a difference in the monthly payment...

Kentucky Housing Corporation

Real Estate agents think that this is a great time to buy with historically low home mortgage rates.  Mortgage loan officers would tell you the same thing.  However, some people have trouble qualifying for a loan and agents are always looking for alternatives.

KY Housing Corporation (KHC) is the state finance agency with very attractive rates.  They are currently quoting rates well under 4% on a 30-year fixed rate loan.  Rates such as these make it much cheaper to own a home or condo then rent an apartment.

Kentucky Spirit

They also have programs for down payment and closing cost assistance.  There is usually a small premium to use their down payment assistance.  KHC works with FHA, VA and RHS loans.  They are not known as a sub-prime...

Jefferson County Commissioner’s Sale on Liberty Street

I had not been to the Jefferson County Commissioner’s sale in a while and had the opportunity to attend with a friend yesterday. Since Louisville and Jefferson County has merged, this is basically the Louisville Kentucky foreclosure sale.  My friend had interest in a neighbor’s property and wanted some real estate expertise as he went to make his purchase.  I also went to see if much has changed; it hasn’t.

 The December 6th sale had 142 properties on the agenda.  32 of these, or 22%, were withdrawn before the sale.  Either restitution had been made, or the lender had some promise of a short sale occurring and postponed the foreclosure auction.

There were 7 properties that actually changed hands.  This is only 5% but is on track with all of the other sales that I have attended.


FHA 203K Renovation Loan Success story in Louisville KY

Renovation loans can be a challenge in the Louisville KY market as well as many others.  We see lots of bank owned homes that need more than a little TLC to get them back in shape.  These would include Fannie Mae, Freddie Mac, local banks as well as the big boys, and HUD homes.

We recently bought a Fannie Mae Foreclosure that needed a lot of “Tender Loving Care”.  Our issues were termite damage, dilapidated carpet, single pane windows, shingles at the end of their life, gutters, siding with holes, outdated kitchen, etc.  Did I mention that it needed paint?  We knew that the price was right, but we required funds for repairs as well as the regular mortgage. 

We initially tried to get a HomePath “Renovation” loan as that seemed like a great deal.   Our first obstacle was finding a loan officer that could...

Are Credit Counselors a good thing?

I worked with a client last week that was interested in one of our home listings.  They informed me that they had some credit issues in the past, but were working through those, and both had good steady jobs.  I suggested a couple of loan officers that could get them approved for a home loan and to let me know the amount of the pre-approval.

A few days later, my client calls me and reports that he was turned down for the home loan approval.  I was expecting to hear that his credit score killed them and he tells me that it is 650.  Not being a Louisville loan officer, I am thinking that this is not too bad and there is more to the story, and there was!  A few months back, they had hired a “credit counselor”.  They would give the counselor XX dollars a month and the counselor would pay their bills in the way that would best bring up their credit score.

Now here is the rub, the Louisville, KY mortgage officer looked at the fact that they had hired a credit...