The Louisville Real Estate Blog of Joe Hayden, Realtor - Your Real Estate Expert!

The Kentucky Housing Corporation has Low Mortgage Interest Rates

2012-01-03T19:43:00-07:00

The Kentucky Housing Corporation (KHC) has announced that it is currently offering the lowest mortgage loan interest rates that it has ever offered. These rates and terms are current as of Tuesday, January 3, 2012, but they are subject to change daily. If you are considering purchasing a home in the Greater Louisville Area, it is possible that a mortgage loan obtained through KHC could be a great deal in today's lending market. The Kentucky Housing Corporation does have specific criteria that you must meet to qualify for this particular loan product. Your smartest move would be to contact a KHC-approved lender to learn about qualifying for one of these loans because the terms can and do change frequently. In general, as of the date of this blog's publishing, the minimum-required credit score was 640 with higher minimums possible depending on the mortgage loan. The lowest interest rate was published as 3.375% without down-payment assistance, but mortgage interest rates change very frequently and they also depend upon the borrower's qualifications for the loan. There are several benefits to using the Kentucky Housing Corporation for your mortgage needs. Provided that you are eligible to obtain a KHC loan, a variety of loan products, loan terms, and very important in today's market, several down payment assistance programs that help to provide needed funds to buy a home are available through KHC. KHC also services many of their loans which means that they do not sell all of their loans on the secondary market. The benefit to you as a borrower is that they can be much more flexible with terms because they do not have to meet certain investor guidelines. As you can see, the Kentucky Housing Corporation can be a fantastic option for home buyers looking to save money, who wish to buy a home and who may need down payment assistance, and who would like to work with a great lender who is located within the state lines. In addition to learning about what KHC can offer you, you can search for Louisville Real Estate and locate the home of your dreams. Then, if you qualify, you can use a mortgage loan with great interest rates from the Kentucky Housing Corporation to buy your new home!

Military Veterans can Benefit from Government Loan Programs

2010-08-05T09:04:00-07:00

Buying a home in Louisville, KY may be the biggest investment of your life, but using a government loan program to finance your home can have a host of benefits to ease the financial burden. Especially if you are a military veteran, there are opportunities to make your home purchase one that won’t break the bank! VA Loans If you or your spouse qualifies for a VA loan, you should definitely look into this home financing option, as it’s packed with money-saving benefits. First, you can you finance 100% of your home with zero down payment. Banks have much less hesitation preparing VA loans than they do for conventional loans since VA loans are backed by the government, which is reassuring if you’re nervous about your credit history or income. In fact, 8 out of 10 VA loan borrowers could not have qualified for a conventional loan! And in addition to not having down payments, VA loans don’t require Private Mortgage Insurance either – one less monthly cost to pay. Interest rates are generally between .5% and 1% lower than conventional loans’ interest rates as well. So if you or your spouse served time in the military and are now looking to buy a Louisville, KY home, the benefits of VA loans are hard to beat! USDA Loans If you’re looking to buy a home in a rural area, USDA loans were created specifically with you in mind. Like VA loans, USDA loans can have no down payments, nor do they require mortgage insurance, saving you money each month. To qualify, you must be looking to buy in an area with a population of 10,000 or less (unless you live in a small city or town, in which case the population limit raises to 25,000). There are income limits for USDA loans, so not everyone can qualify, but they are a great home financing option that are guaranteed to save their borrowers money. FHA Loans FHA loans are offered to anyone and everyone, but the requirements have gotten tighter. Insured by the Federal Housing Association (hence their name), FHA loans have no income limits and fair qualification measures. Similar to VA loans, the government is responsible for defaulted loans, so banks can prepare mortgages for many more people. What are the major benefits? They have one of the lowest minimum down payments – 3.5%. They also have Monthly Insurance Premiums of 1.5%, and their closing costs are government-regulated, which keeps them low. Mortgage loan amounts depend on house prices in each area and smaller than those of conventional loans. So, if you’re looking to buy a smaller home in Louisville, you should look in to financing with an FHA loan as well! With these loan options, you can save money while financing your new home. Especially if you or your spouse has served for our country, there is no reason not to accept rewards in return. When you start looking for a home, start looking for the appropriate way to finance it as well and you’ll be sure to come out ahead! About the Author James Kelley of VA Benefit Blog - A law school student at the University of Missouri, James Kelley works to educate the public on government financing options for home purchases. He is a co-founder of Military Basebook, a facebook application that helps connect military members based on where and when they served. If you are a military veteran and you are considering buying a home in Louisville, KY, please consider visiting the website Real Estate Louisville, KY.

Help for Veterans Facing Foreclosure

2010-11-11T15:29:00-07:00

Although the celebration of Veterans' Day honors those who have served our country, many civilians and congressmen alike feel that more needs to be done to honor and enhance the lives of those who have served. On September 22, 2010, Representative Tim Walz (D-MN) and Senator-elect John Boozman (R-AR) introduced the Veterans' Homelessness Prevention and Early Warning Act of 2010. The congressmen hope to decrease veteran homelessness by implementing a stronger level of VA support for those facing foreclosure on their VA loan, including increased early warning programs. The VA essentially provides insurance, or a subsidy in the event of borrower default, for VA loans. The VA, however, does not directly provide or service the loan. The VA's guarantee of each loan is what allows military members and certain military personnel spouses to receive VA loans with competitive and exclusive benefits with zero money down. When asked about his motivation for authoring the bill, Representative Walz had a very blunt answer. “American heroes living on the streets, out of cars and on the couches of family members is a disgrace,” said Representative Walz. “These men and women fought for our country and we must do everything we can to address their unique needs, which all too often are a contributing factor in homelessness amongst this population. Although the VA home loan program has continued to help many veterans and active duty service members achieve homeownership, 15,145 VA loans were still foreclosed upon in 2009 - a number that has nearly doubled since 2007. The new legislation would prove beneficial to military homeowners in the Louisville metro area, near Fort Knox, as these areas could be hurt if VA foreclosure rates continue to rise. Under the new act, the VA will have to take necessary actions to avoid further veteran or active duty personnel homelessness. Measures the VA will have to take include: Provide alerts to VHA homelessness case managers within 7 business days of being notified of a VA home loan defaulting Ensuring that each VHA case manager is able to provide alternate housing for veterans and his or her family should the veteran lose his or her home Submits a plan for the Act within 6 months of enactment, and will have the regulations in place within one year of enactment. “Homelessness is a serious problem amongst our nation's veterans,” stated Senator-elect Boozman, the former Ranking Member of the House VA Economic Opportunity Subcommittee. “This simple coordination can ensure that our veterans have access to the assistance they need to confront the challenges of the current economic environment.” About the Author James Kelley of VA Benefit Blog - A law school student at the University of Missouri, James Kelley works to educate the public on government financing options for home purchases. He is a co-founder of Military Basebook, a facebook application that helps connect military members based on where and when they served. If you are a Veteran or Active-Duty member of the Armed Forces and are considering buying a home in the Louisville, KY area, please visit Real Estate Louisville, KY.

Using Your $8,000 Tax Credit as a Down Payment on a Home

2009-05-15T13:02:00-07:00

Louisville, KY FHA Mortgage Loan The FHA has announced a new program to allow people who have not owned a home in the previous three years to apply their $8,000 tax credit to the down payment of a new home. The details have not been officially released, but this down payment assistance program will allow home buyers to secure a second mortgage on their new home that will be paid off when they receive their $8,000 tax credit. This will represent a change of direction for the Federal Housing Administration (FHA) who only recently ended the practice of third-party down payment assistance. Because this down payment assistance program is not yet official policy, many lenders will not be aware that this assistance will possibly become available in the near future. If you have contacted a mortgage lender who is not aware of the loan program contact me and I will give you a list of lenders who do offer access to down payment assistance programs. Hopefully, this program will provide a simple way to use the $8,000 first time home buyer's tax credit as a down payment on your new home. This is one more reason why it is a great time to buy a home!