Thursday, January 2, 2014

Louisville Kentucky FHA Requirements for First Time Home Buyers using FHA loans

Louisville Kentucky FHA Requirements for First Time Homebuyers. 

Down Payments: First-time Louisville Kentucky FHA borrowers are generally required to put down just 3.5 percent of the purchase price but there are exceptions: if you have a credit score below 580 then the program requires 10 percent down. 

Gifts: FHA borrowers may need less cash up front if they can obtain a gift from family, friends, or other sources.
Credit ScoresAs of April 1st, when the debt-to-income ratio exceeds 43 percent and the borrower has a credit score of 620 or less the loan application must be manually reviewed. Manual underwriting can be useful because it allows lenders to consider compensating factors when looking at a loan."