Need Down Payment Assistance on a Home Loan Here in Louisville KY?

Need down payment assistance so you can buy a new home?

Exciting news about where you can find down payment assistance here in Louisville KY.

We just got this email from one of our favorite lenders, Jason Justice with First Commonwealth Mortgage.

Good afternoon to Team LREP!

 Just wanted to let you know the good news that First Commonwealth is now an approved lender for Kentucky Housing Corporation.   If you have a client that looking to go Conventional with little or no money down send them my way.  See below some of the highlights on the programs that KHC has to offer.

 Conventional 30 year fixed loan:

97% loan with NO monthly mortgage insurance to a 680 credit score

3% down required can be in a gift form, borrower’s own funds or Kentucky Housing Down Payment Assistance

 FHA 30 year fixed loan:

96.5% financing going FHA to a 640 credit score

3.5% down required can be a gift form, borrower’s...

Mortgage Insurance Premium Hike Coming Soon

Mortgage insurance rates are going up April 1st so if you’re trying to find a home in Louisville it is in your best interest to act quickly.  The U.S. Department of Housing and Administration recently announced that most loans that are applied for after April 1st with Federal Housing Administration (FHA) will see a 0.10 percentage point increase in their premiums, or $100 per year for each $100,000 in loan amount.  It might seem like a small amount, but there are enough people realizing the significant economic impact it can have on the life of their loan that a rush to beat the deadline is expected in Louisville.  Real estate agents are recommending that you apply with your lender before March 25th to ensure that you get locked in at the lower rate.  Some bankers are even making that a hard deadline to take advantage of those lower rates.

This change precedes an even more impactful change this summer for the Louisville real estate market.  Buying a home in Louisville through the FHA program will come with the new stipulation that mortgage insurance will be paid for the life of the loan—a potential difference of thousands of dollars owed.

So if you want to maximize your investment by saving on your mortgage insurance get your contract to your lender no later than March 25th.  This will avoid the mortgage rate increase and, if enough equity is achieved, avoid the insurance fees altogether after five years.  Keep in mind that lenders usually need at least 48 hours to get a loan in the system and effectively beat the deadlines so the sooner you act the better.


Should I continue to make my payment if I'm going to short-sale my house?


First Commonwealth Mortgage featured on

One of my favorite Senior Bankers, Jason Justice was nice enough to give us this tip of the day, in regards to making your payment in the midst of a short-sale.  

Jason says:  

"If you are going through a short-sale process and want to purchase in the future, you must continue to make your mortgage payments on time and not become delinquent.  If you pay the mortgage on time, once the bank reports it to the credit bureaus, it will not show up as a foreclosure status.  The three year period before you can acquire another mortgage is only required when you do not make your payments and become delinquent on the mortgage prior to the short-sale being completed ...