Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Removing PMI on Kentucky Conventional Mortgage Loans

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Removing PMI on Kentucky Conventional Mortgage Loans: Removing PMI on Conventional Loans https://youtu.be/VVEl6hdZPRU Automatic  – Occurs when a borrower hits 78% LTV of the sch...

1. Automatic – Occurs when a borrower hits 78% LTV of the scheduled amortization. Cannot be used if borrower pays down balance to get to 78% faster than scheduled.
2. Borrower requested (original value) – Most often occurs when a borrower pays down a balance faster than scheduled and requests PMI to be removed based on the value used at closing.
3. Borrower requested (new value) – Occurs when a borrower requests PMI removal based on a new appraised value, and the loan has been open for at least two years.

Here are additional information about requirements that may or may not be required when a Homeowner is removing PMI on Conventional Loans.

The Homeowner should always consult their Servicer before taking any action, including ordering an appraisal. In most cases, the Servicer will need to order the appraisal themselves or they could have additional overlays/restrictions for removing PMI on Conventional Loans.

2020 USDA Rural Housing Guarantee Fee and Annual MI for Kentucky USDA Rural Housing Development Loans

Kentucky USDA Guarantee Fee and Annual MI

All USDA loans current charge 1.0% for the Guarantee Fee on ALL loans regardless of purchase or refinance. The Annual MI or Monthly Factor is .35 basis points

For example on a $100,000 Kentucky USDA Property with no money down financing the following USDA Guarantee fees and annual mi would be as follows:

$100,000.00 loan amount x .01% = $1,000 Guarantee Fee. The total loan amount would be $101,000 with the guarantee fee being financed into the loan over 30 years.

The annual monthly mortgage insurance premium would be calculated as follows:

$100,000 x ..35 = $350 a year or $29.00 a month. This annual mi fee to USDA is for life of loan now.

Kentucky USDA Rural Housing News for Kentucky Home Buyers. See below:

Joel Lobb
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com

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). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

On October 1st, 2016,the USDA Rural Development Guaranteed Home Loan Program is making a very drastic cut to fees for Rural Housing Mortgage Loans in Kentucky

Fiscal Year 2017 Conditional Commitment Notice With the start of fiscal year 2017 (FY17) just around the corner, please take a few minutes for a timely review of the Single Family Housing Guaranteed Loan Program (SFHGLP) conditional commitment process. We hope you find this information helpful.  Issuance of Conditional Commitments: At the beginning of each fiscal year, funding for the SFHGLP is not available for a short period of time – approximately two weeks.  This will not change in FY 2017, which starts October 1, 2016.  During the temporary lapse of funding, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions.  The application processing workflow is as follows: Rural Development will continue to accept complete SFHGLP applications for purchase and refinance loan transactions from lenders; Rural Development will process, approve, and issue Conditional Commitments (Form RD 3555-18) for those applications that are eligible “subject to the availability of commitment authority;”  An upfront guarantee fee of 1.00 percent and an annual fee of 0.35 percent will apply to both purchase and refinance transactions in FY 2017. Lenders may then close loans as scheduled; When funds become available, Rural Development will obligate funds for Conditional Commitments issued for loans subject to the availability of commitment authority; Once loans are obligated, Rural Development will process lenders’ Loan Note Guarantee requests as soon as the loan closing is verified and all conditions of the Conditional Commitment are satisfied; Lenders assume all loss default risk for the loan until Rural Development is able to obligate it and the Loan Note Guarantee is issued. Please refer to the Conditional Commitments Issued During the Beginning of Fiscal Year 2017’s Unnumbered Letter for more information! Thank you for your participation in the USDA Single Family Housing Guaranteed Program.  We look forward to serving you in FY17!   . New upfront fee: 1.00% Current upfront fee: 2.75% *monthly fee will also drop New annual fee: 0.35% Current annual fee: 0.50% joel Lobb Senior Loan Officer (NMLS#57916 text or call my phone: (502) 905-3708 email me at kentuckyloan@gmail.com 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). USDA Mortgage loans only offered in Kentucky. All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

On October 1st, the USDA is making drastic cuts to fees for Kentucky Home Buyers Using the Rural Housing Guaranteed Program

On October 1st, the USDA is making drastic cuts to fees

The USDA mortgage requires two types of fees: an upfront guarantee fee and a monthly fee. They are both being reduced, allowing more buyers to qualify.

Starting on October 1, 2016, the upfront fee will be reduced.

Current upfront fee: 2.75%
New upfront fee: 1.00%

and the monthly fee will also drop.

Current annual fee: 0.50%
New annual fee: 0.35%

The term “guarantee” simply refers to USDA’s loan backing that allows lenders to issue loans according to its guidelines. The current upfront guarantee fee stands at 2.75 percent of the loan amount and is seeing a drastic cut to 1.00 percent, and the "annual fee" is currently 0.50 percent also dropping significantly to 0.35%, paid in twelve equal installments and included in each mortgage payment.

The changes will be in effect until September 30, 2017. Typically, USDA re-examines financials of previous fee changes then raises, holds, or reduces fees accordingly. If loans in USDA's portfolio perform well, another drop could come in 2017.

But the 2016 reductions alone equal big savings for USDA home buyers.

Joel Lobb
Senior Loan Officer
(NMLS#57916
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com

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). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

USDA slashing mortgage fees: Borrowers who use the U.S. Department of Agriculture’s Rural Housing Service to get a mortgage could soon pay significantly less for their loan, as the USDA announced that it is about to cut its loan fees for lenders who use the Single Family Housing Loan Guarantee Program. Here are all the details.



According to the announcement, the USDA is set to cut its upfront guarantee fee from 2.75% of the loan-at-close amount to 1%. Additionally, the USDA is cutting its annual fee from reduced from 0.45% of the unpaid principal loan balance to 0.35%.

 

Kentucky USDA and Rural Housing Credit Scores Guidelines

Kentucky USDA No Score Loan Guides

DTI: 29/41 Maximum no exceptions.
Rent: 12 months 0 x 30 on Rent. 12 months cancelled checks or VOR if institution. Or a four Non Traditional Trade Lines may be substituted with underwriting
approval.
Credit: No delinquent or derogatory past or current credit. Regardless of size or type.
No open collections or judgments (exceptions granted upon review only
and only based on overall profile of the loan).
Job Time: 2 years of consecutive work/education with no gaps.
Alternative Trades: 3 Non Traditional Trades with Rent or 4 Non Traditional Trades with No Rent. 0 x 30 and must have 12 month history on each trade.
Pricing: 3.00 negative adjustment to price.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2 month Reserves. FTHB Education is required.
Minimum Loan: $30,000
Residual Incomer per Family/Geographic: Borrowers must have residual income left over after their loan closes, see table below for what is required:
Family Size
1
$450
2
$755
3
909
4
1,025
5
1,062
Over 5 Add $80 for each additional family member up to 7

Kentucky Rural Housing and USDA 620-639 Credit Score Loan Guides:

DTI: 29/41 Maximum no exceptions.
Rent: 12 months 0 x 30 on Rent. 12 months cancelled checks or VOR if institution. Or a four Non Traditional Trade Lines may be substituted with underwriting
approval.
Credit: 3 Trade Lines seasoned for 12 months with high balances of a minimum $500. No delinquency in last 12 months regardless of size or type.
No open collections or judgments (exceptions granted upon review only and only based on overall profile of the loan)
Alternative Trades: May be needed if credit is thin or needed to be strengthened overall credit quality.
May require four non-traditional trades if no Rent History.
Job Time: 2 years of consecutive work/education with no gaps.
Pricing: 1.50 negative adjustments to pricing.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2
months reserves.
Minimum Loan: $30,000

Kentucky USDA and Rural Housing Manual Underwrite with GUS Refer Scores >=640:

DTI: 29/41 Maximum no exceptions.
Rent: 12 months 0 x 30 on Rent. 12 months cancelled checks or VOR if institution. OR a four Non Traditional Trade Lines may be substituted with underwriting
Approval if no rent history is available.
Credit: 3 Trade Lines seasoned for 12 months with high balances of a minimum $500.
OR if payment shock <=25% and traditional trade lines cannot be supplied we can accept 3 alternative trade lines with 12 month history and 0 x 30.
No delinquency in last 12 months regardless of size or type on any credit.
No open collections or judgments (exceptions granted upon review only and only based on overall profile of the loan)
Job Time: 2 years of consecutive work/education with no gaps.
Pricing: 2.00 negative adjustments to pricing.
Miscellaneous: Required to have 2 months bank statements and/or 401k asset Account with 2
months reserves. May be waived with strong compensating factors.
Minimum Loan: $30,000

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