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 Rural Development Guidelines for Pools, credit scores, debt ratios.

Kentucky Rural Development Guidelines for Pools, credit scores, debt ratios. 

1. Is the property in an eligible area? Check address at: http://eligibility.sc.egov.usda.gov
Click on ‘single family’ under the link “Property eligibility”. Type in address or go to map.

2. Is their household income within the Agency limits? See the chart. Use the fast easy
calculator at http://eligibility.sc.egov.usda.gov Click on ‘single family’ under ‘Income Eligibility’

3. Do they have reasonable credit? Your lender’s underwriter makes the credit decision. Our
streamlined processing does not require credit explanations if the FICO is 640 or higher (EXCEPT with recent  Bankruptcy in last 3 years or a foreclosure in the last 3 years). Alternate credit is acceptable. 580 and below would be rare. A 670+ score is a stand-alone  compensating factor. The lender’s underwriter makes the final decision on creditworthiness.

Do they have reasonable repayment ability? Ratios are 29/41% (31%/43% for homes built after
Jan 1, 2001) but can be waived when it makes sense.: .5% (.005) annual fee will be assessed. Rural Development is a direct guarantor. There is no mortgage insurance and the Guarantee remains at the  maximum of 90% of original principal borrowed. Fee cannot be prepaid and is billed annually to the servicing lender. Rate and Term: 30 year fixed, very competitive conventional rate


Other eligibility criteria:

.• No co-signors residing outside of the household.

• In-ground swimming pools. The loan, not including RD fee, is limited to the appraised value WITHOUT the pool. The FHA appraiser must justify value ‘as is’ AND a value as if the property had no pool. The value of the  pool must be established and justified

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

800 Stone Creek Pkwy, Ste 7,

Louisville, KY 40223

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

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%.