Thursday, August 15, 2013

Score Requirement on Kentucky FHA Loans for people with bad credit

Lowers Minimum Credit Score Requirement on Kentucky FHA Loans

Kentucky FHA Home loan programs for people with bad credit


FHA loans are designed to make housing more affordable with lower down payment requirements than conventional loans on purchases and less home equity requirements on refinances.  Less stringent qualification guidelines and the security of a government-insured loan makes FHA a popular choice for consumers.



Kentucky FHA Loans with 580 Credit scores and – Low Down Payment – 3.5% which can be gifted from relatives or borrowed off one's retirement account. If your scores is between 500-579, 10% down needed for home loan and subject to underwriting approval. 

  • Low down payment
  • 500 minimum credit score from 10% down, to 580 above credit score with 3.5% down payment
  • Can be used with Grants for Down payment through Eligible Sources
  • FHA  max loan – $304,750 in the State of Kentucky
  • FHA approved condos eligible
  • Entire Down payment can be a gift, a down payment assistance program or grant funds
  • Seller can pay 6% of purchase price toward closing costs

Quick guide to checking your credit score for Kentucky FHA loans

If you’re just starting to shop for home mortgages, it pays to know if banks think you have bad credit or not. Here’s how FICO, the main credit score provider in the U.S., breaks down credit scores:
  • 800-plus: Exceptional
  • 740-799: Very good
  • 670-739: Good
  • 580-699: Fair
  • 579 and lower: Poor


Kentucky FHA loans

Kentucky FHA Loan Details
Credit score required
500, but banks have minimum underwriting
standards
Down payment required
Credit score between 500-579: 10 percent
Credit score above 580: 3.5 percent
Upfront financing fee
1.75 percent, which can be financed
Mortgage insurance
0.45 to 1.05 percent
Mortgage limits
Generally, $275,665 for single-family units, but it
varies by location and you should check the limits in your area
Fine print
Mortgage insurance premiums are paid for the life of the loan,
except when putting 10 percent or more down. If your down payment is
less than 20 percent but 10 percent or more, you must have
mortgage insurance for 11 years.

Quick take

If you have bad credit, an Kentucky FHA loan offers a more accessible mortgage. While credit standards vary by lender, you may qualify for the Kentucky FHA loan with a credit score as low as 500. With a credit score above the 580 threshold, you may qualify for the 3.5 percent down payment.
Unfortunately, an Kentucky  FHA loan can be expensive because of mortgage insurance fees. In addition to paying ongoing mortgage premiums for the life of the loan, you’ll have to pay a 1.75 per

 Pros:

  • 3.5 percent down payments (for those above the 580 credit-score mark)
  • Credit scores as low a 500
  • Can buy up to four units

 Cons:

  • 1.75 percent upfront mortgage premium
  • Ongoing mortgage insurance for life of loan at .85% and .80% 
  • Smaller loan limits $304,000 in Kentucky 





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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#57916 http://www.nmlsconsumeraccess.org/

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification