Kentucky Home Mortgage Tips: 100% Home Mortgage with No Money Down
Unlike other areas in the nation that are experiencing falling prices and increased inventory of housing, Kentucky median home prices are rising, especially in Norther Kentucky. Homes in the mid-west are still affordable, but prices are climbing in areas like Northern Kentucky and Southern Ohio. And, the continuing increase in energy prices could cause prices in Oklahoma to start rising soon.
According to the U.S. Census Bureau statistics for 2005 released this month, three of the top five large counties for home prices in Kentucky are in Boone, Campbell and Kenton counties. Boone County has the highest valued homes in Kentucky, with the median housing value of owner-occupied homes at $160,000, compared with the Kentucky average of $103,900. Campbell County has the third highest value at $135,200 and Kenton County has the fifth highest at $133,800.
The statistics also indicate that Warren County has the highest priced homes in Greater Cincincinnati and the fourth highest in the state of Ohio, with a median housing value of $178,000, compared with the state average of $129,600. Butler County ranks eighth with a median housing value of $150,000, Clermont County ranks 11th with a median housing value of $147,000 and Hamilton County ranks 16th with a median housing value of $137,300.
"High housing prices usually mean an area is doing well economically. Northern Kentucky is the southern tier of Greater Cincinnati and a lot of people are moving across the Ohio River from Ohio to Northern Kentucky," said Ron Crouch, director of the Kentucky State Data Center at the University of Louisville.
Between this and the thriving Oklahoma energy sector, now may be the time for Oklahoma home buying, Kentucky home buying or financing a second home in Kentucky. While the prices are low enough that you probably won't need a jumbo home loan, coming up with a down payment of at least $20,000 can cause a financial pinch for some people lacking cash reserves.
A 100% 1st mortgage, also known as a no money down home loan or 80-20 home mortgage because of the typical way people secure a first mortgage loan that covers 80% of the purchase price and a piggyback second mortgage for the 20% balance, is the best way to avoid having to pay costly private mortgage insurance (PMI) that benefits no one but the lender. If possible, it's best to secure a fixed interest rate loan to avoid the rate hikes of adjustable rate mortgages (ARMs) and the risk of interest only loans.
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