Have you spotted your dream home but do not have sufficient savings to meet required down payments. Kentucky FHA loans allow you to become homeowners with down payments as low as 2% - 3%. Read on for comprehensive information about purchasing best FHA loans in Kentucky at lowest cost from a reliable state mortgage lender.
Purchasing Kentucky FHA Loan
FHA (Federal Housing Administration) is a division of Department of Housing and Urban Development, which insures residential mortgage loans made by private lenders as per specified mortgage underwriting standards. Since FHA insures Kentucky FHA loans, lenders charge lower interest rates on this type of home loans compared to conventional mortgages.
If you belong to low or moderate income families and are looking to become homeowners in Kentucky then inquire about Kentucky FHA loan programs. Kentucky FHA mortgages require lower down payments and closing costs and offer maximum flexibility during mortgage underwriting. Also, you can make use of gift funds to make down payments. Moreover, FHA allows you to consider entire income of non-occupant co-borrowers for income qualifying purposes.
However, Prior to purchasing Kentucky FHA loan find out maximum loan amount allowed on such loans in your particular county. Maximum loan amount, including closing costs should not exceed maximum limit set by FHA. Most Kentucky FHA mortgage lenders will require you to take out private mortgage insurance (PMI) equaling 1.50% of property purchase price at a renewal premium of around .500% during successive years. However, one advantage is that your upfront costs of buying home is reduced as closing cost can be financed along with mortgage loan amount, which helps to reduce your initial burden.