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First Home
It is important to take a good look at whether home ownership is right
for you. Owning a home involves both advantages and obligations. We can help
you analyze your current expenses and help you compare them to the costs of
owning a home, and thereby helping you decide if you can afford to buy a
house at this time.
Conventional Loans
BUYER'S QUALIFICATION: Generally, the following "guidelines", are used
for most conventional programs. It is important to emphasize that these are
only "guidelines" and subject to change and deviation.
1) Principal, interest, taxes, property insurance and private mortgage
insurance (PITI/PMI) should not exceed 28% of borrower's GROSS MONTHLY
INCOME.
2) All of above (PITI/PMI) PLUS monthly debts should not exceed 36% of GROSS
MONTHLY INCOME. Minimum payments on revolving charges must be included in
debts.
3) Good Credit
4) Stable employment
FHA
ADVANTAGES OF FHA FINANCING Low down payment
Favorable interest rate
Higher qualifying ratio
Liberal qualifying guidelines
No prepayment penalty
Refinances eligible
Assumable without a change in interest rate (Formal Assumption)
Gift funds may be used for 100% of the total costs (Down payment & closing
costs)
VA
ADVANTAGES OF VA FINANCING Low cash outlay ... up to $214,000 mortgage
with-0-down payment.
Liberal qualifying guidelines
Assumable by qualified purchaser with no change in interest rate.
No prepayment penalty
Use of partial eligibility
Refinances eligible
Seller can pay 100% of all closing costs and the
seller can pay up to 4 % of purchase price towards prepaids.
Rural Housing
100% Financing: Program objective. The basic objective of the guaranteed
Rural Housing loan program is to assist eligible households in obtaining
adequate but modest, decent, safe, and sanitary dwellings and related
facilities for their own in rural areas by guaranteeing sound Rural Housing
loans which otherwise would not be made without a guarantee. Guarantees
issued under this subpart are limited to loans to applicants with incomes
that do not exceed income limits.
Kentucky Housing
Conventional FHA, VA, DAP Program. Down payment can be borrowed to
qualifying buyers.
Reverse Mortgages
FHA Insured. Allows persons 62 years of age and older to access the
equity in their homes without repayment as long as they live in that home.
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