Archived News



On April 2010 the Department of Housing and Urban Development initiated new regulations for FHA loans. 

Among the changes that took effect on that date are as follows:

The mortgage insurance premium for FHA mortgage insurance on loans that were assigned after April 5, 2010, were raised from 1.75% to 2.25% of the loan amount.

Individuals who now have a credit score of less than 580 will be required to pay a minimum down payments of 10% of the sales price, rather than the traditional minimum of 3.5% 

The percentage of loan fees and closing costs that the Seller is allowed to provide was reduced from 6% to 3%.

Minimum Credit Scores Announced for FHA loans effective October 4, 2010

Borrowers with a credit score below 500 will not be eligible for FHA insured mortgage financing.  Buyers eligible for financing requires a minimum of 3.5 percent downpayment.  Borrowers with nontraditional credit histories may still be eligible for financing.  




Confirming Loans 30 year fixed 4.000%

30 Years fixed KHC                    3.375%

20 Years fixed                              3.875%

15 Years fixed                              3.375%

For these rates you will need a 740 or higher credit score

Government Loans 30 year fixed

FHA -                   3.750%

FHA/KHC-          3.375%

RHS -                  3.750%

RHS/KHC -         3.375%

VA -                      3.750%


FHA rates with scores down to 600, RHS rates 620,  KHC loans have income limits.  Downpayment assistance programs are still available some up to $6,000.

Rates are subject to change daily.

The Federal Reserve surprised the market last week indicating that short-term rates were likely to stay at their current low levels until the end of 2014.  This is good news if you can do a ten or fifteen year mortgage.  The national Association of Home Builders Market Index rose from 14 in September to 25 in January, a 4-year high.  Both new and existing homes are now very affordable, with prices at post-recession lows.  Yet the home price decline since the end of the recession in mid-2009 has been a modest 3-7%. 



Here are some G-R-E-A-T tips for getting your house ready!

1)  Refresh the exterior, plump up the landscaping with mulch or lava rock

2)  Paint the front door, clean finger prints off of storm door, add a new door mat 

3)  Weed your flower bed,  plant seasonal plants like Mums, Tulips or Roses for the selling season

4) Remove any piles of debris, wood, any type of yard clutter

5)  Sweep and weed the street curb along your property, they don't call it "Curb Appeal" for nothing....

6)  Fix anything that is broken on the exterior, gutters, roof, mailboxes, window screens, vinyl siding, walkways, if a potential buyer can see things broken on the exterior they may not even come inside to see the interior.

7)   On the interior of your home reduce any type of clutter, children's toys, shoes, remove old magazines, tools, supplies, any type of unused items

8)  Clean, Clean, Clean make it sparkle, mirrors, windows, eliminate household odors,  especially pets... I know you love Fido & Kitty Cat... but if I can smell it, I can't sell it!  Absolutely Number One Complaint by buyers is "pet odor".  Take your pets out of the house, or crate them during showings.  If you smoke... open windows, put out air fresheners or potpourri, air the house out.  Smell your closets, do they smell like old socks or old shoes?

9)  If it is broken... anything please fix it.  The home inspector will probably find it and then it will become a "bone of contention" which may cause you to lose the deal.  Roofs are really big issues, have a roofer look at your house to tell you the condition of your roof.   

10) Be honest about everything with regard to your house, even if it is less than perfect.  If you have been honest with regard to any issue then the buyer knows where they stand and can make an informed decision with regard to purchase. Never ever hide a material defect. If you had termites and had the problem repaired show your treatment and repairs. If you are dishonest... the home inspector will probably find the issue, and then you may lose the deal, because the buyer will feel that you have acted without integrity.  Honesty is always the best way to conduct business.

11) Don't worry about a less than perfect home "PRICE" is the ultimate decision maker for a qualified buyer.  Pricing your home to sale within the first 30 days is the most important thing you can do to sell or market your home.   Price your home too high and it will become "shop worn".  Ever heard the statement "Well why hasn't this house sold?"  It has been on the market a long time.... What's wrong with this house?  ( too high for the current real estate market, no appraisal to validate asking price, or number of repairs out way the value of the house, outdated carpet or appliances... commonly known as functional obsolescence).  When selling your home, you need an honest evaluation on what to correct for making a quick sell.  Never shoot the messenger, it is critical to get an honest opinion on the areas that will cause problems in selling your property. 





Missed your payments?  Unable to continue to make your payments? 




Even if you are behind on your mortgage until the entire legal process has been played out.  You can stay in your house until your right to possession has ended.  The factors that determine that are:

 1) Type of foreclosure; judicial or non-judicial;

2) Whether you have mortgage or a deed of trust;

3) State statutes regarding sheriff or trustee sale and receivership w/possession time frames.

Your lender may allow you to market your property with a real estate broker at a reduced price called a "short sale".  Each situation is different, only your lender can determine if your hardship merits a short sale.   In the context of a short sale, hardship is not necessarily defined.  Some areas that lenders have accepted as a hardship for short sales are the death of a spouse or child, divorce or separation, loss of income, loss of job, or loss of business or business failure, illness, medical bills, excessive debt, may merit the lender's approval for a short sale.  You must be able to document any of these claims in writng to the lender; and your lender will require you to agree you will not receive any proceeds from the sale of your property. You will be required to attend the closing and you will be required to sign off on all the documents of the sale. 

Only the lender can determine the acceptable "short sale" factors.   Be sure to answer any summons, any oral or written correspondence the lender provides.  Communication and cooperation is the key to a successful short sale with any lender. 

Please call me if you have missed any mortgage payments on any type of property.  I am experienced with lenders, confidential, and  I am nationally certified for short sales. Please call 859-624-5566 if you wish a personal consultation with regard to a possible short sale. 

(We highly recommend you consult a real estate attorney and CPA to see what is the best plan of action for you)


You can now search two Muliple Listing Services directly from our web site:

Madison County Board of Realtors Search

and Lexington Board of Realtors Search

Kae and Richard are now KHC Certified Real Estate Agents.

From old web page

Here is a breakdown of high-loan-to-value lending programs currently available in Kentucky for 2011:

100% VA (Includes manufactured homes with no minimum credit score required)
100% Rural Housing - USDA (outside Fayette County)
100% Federal Housing in combination with DAP Proceeds
100% 80-20 Loans for borrowers with a score of 700 or higher (some restrictions)
97% Federal Housing Administration Financing
95% Conventional Financing

In addition to the above listed programs, sellers of properties are sometimes allowed to pay 3 to 6% in closing costs (may depend on lenders restrictions check w/lender to verify). FHA loans may allow sellers to pay up to 3% closing costs.

203(k) Rehab Loan

FHA also has a foreclosure program for first-time home buyers who are buying a short sale or foreclosed property that needs repairs. Called FHA/HUD backed 203(k) rehab loan. This loan covers the cost of the plus money for repairs up to a maximum of $35,000. You will need 3.5% required downpayment. Your real estate agent will have to prepare your offer stating you are seeking 203 (k) financing. At closing the sellers receive the purchase price, then the remaining funds go into escrow to be disbursed as the work is completed up to six months. Check with your local lenders for more specific information with regard to the FHA loans that are currently available in your area.

KY Housing Corporation - Breaking News 6/23/11

KY Housing Corporation has a new Lottery for New Construction Program for Single Parent, Disabled, or Elderly Households

Funds for the New Construction Program for Single Parents, Disabled, and Elderly households will soon be available. The funding source will be New Bond Funds, which means borrowers must meet all New Bond guidelines, with the exception of purchase price and income limits.

* First mortgage loan (FHA, VA, and RHS only no conventional) with a 30 yr fixed interest rate of 1 to 6 percent. The rate will be the highest for which the applicant qualifies at a ratio of 29/41

* New Construction only.

* Maximum purchase price of $115,000

* Regular rate program with points required.

* Borrowers must have a minimum credit score of 640 and a AUS approval

* Regular down payment assistance program is available for down payment and closing costs.

The reservations will be selected through a lottery system. The lottery will be open for reservations Monday July 25, 2011 through July 27, 2011. Winners will be notified by e-mail on Friday July 29th. All applicants must have a fully executed real estate contract in place when the loan is reserved. First-time home buyers hurry this is a fantastic program.


If you are not a first time home buyer and currently and want to sell your real estate in Kentucky , here are some G-R-E-A-T marketing strategies :

1) Always price your home to Sell! We can assist you with a free current market analysis!
Pricing your home is the most important decision you make in the first 30 days.
2) Offer to pay for up to 3% of the closing costs, often buyers fail to make written offers due to inability to pay closing costs.
3) Offer a home warranty with the purchase of your home. Many buyers live in apartments where everything is fixed by the landlord. Home warranties offer strong assurances for the nervous buyer.
4) Obtain an appraisal. A written appraisal is hard to argue with when negotiations seem to be at a stalemate. Remember pricing your home right in the first 30 days is critical.
5) First impressions really matter. De-clutter your rooms. If it is a " bed-room", you have to have a bed in it for Buyers to visualize it as a bedroom. Don't turn it into a junk room or storage area for all your clothes, toys, etc. You also have to have a closet, and if in a lower level, a window, and a door for ingress and egress. Otherwise, it is only a bonus room or illegal bedroom. Clean everything and make it sparkle. Pets are our best friends, but kitty liter boxes are a turn off and musky old dog smell can kill your sale. Always remove or crate your pets for all showings. If I can smell it, I can't sell it! Paint peeling from the front door is a turn off, the very first thing a client sees is your front door, add a nice hanging ornament, fresh coat of paint, clean the storm doors and remove finger prints. Pick up all the toys in children's rooms, or box up unused toys and store them in the garage, attic, or rent a storage pod. Clean out your closets, junky, cluttered closets make them look small. Fluff up the landscaping with mulch or lava rock, clean up the front yard it is a must. Curb appeal is everything!
6) If it is broken, Sellers P-L-E-A-S-E fix it. The buyer's home inspector is just going to add it to the list he/she presents to the home buyer and this can really "kill the deal" ,
7) Termites.... BIG, BIG, issue can "kill the deal", if you have had termites in the past, have your previous servicer to do a check up to determine if you have any fresh activity. Failure to keep your house termite free can be a total deal killer. If you have a clean bill of health on termites attach the recent termite report to your sellers disclosure. Be honest with regard to this, if it is repairable, have it repaired immediately with documentation from all contractors.
8) Be totally honest about your Seller's Disclosure, if you hide anything from your Broker or Buyer, and it is discovered in the home inspection, you will appear to be dishonest. If it is a big ticket item, you may end up in a lawsuit. It is best to disclose anything you know that is wrong with the home, and then the Buyer will know where he/she stands with regard to the purchase. If you had a roof leak in 2009, and you repaired it, show them the repair bills, be totally transparent about all issues. This will give the Buyers more confidence in making an offer. Complete honesty is the very best policy when selling your home.

We sell all types of real estate everyday, we really know what sells real estate.We have been in the real estate business for over ten years. Real estate is one arena where experience really matters. We are full-time Realtors, not bus drivers who work on the weekends. Call us to find out what your property is worth in today's market. You really need to know the real estate sales for the past six months within a one mile radius of your home. Failure to know this can cost you B-I-G TIME. Why isn't my home selling Because you have the home above what today's real estate market will withstand. 2010 sales do not compare with 2008, and 2009 when houses were at their highest.

We are NAR certified for selling pre-foreclosured properties, commonly call "short sales". Missed payments You don't have to give away your home, or commerical properties many lenders may accept a short sale in lieu of foreclosure. Give us a call if you have missed payments on your home, or commerical properties to see we can assist. Many times we already have buyer clients who are looking to purchase distressed homes or commerical properties.

Schennberg Realty, LLLC is a full service brokerage selling land, single family residences, multi-family properties, farms, and commercial properties. Our Kentucky real estate listings are now on two multiple listing services in Fayette County, Madison County, Clark County, and Estill County. We list our seller's properties on five (5) web sites in addition to

We can run a daily ads in the local newspapers, not a once a week ad, in addition to the local homes book ads. This affords our clients a strong real estate presence on a daily basis.
este market.

Technology is changing the way we do business in every aspect. We are seeking to be pro-active in marketing our client's inventory in the most progressive manner available to real estate agents in Kentucky. We are providing you with tools through this site to assist you with information to prepare your Kentucky real estate for sale, selecting the right agent, pricing your home appropriately, marketing it effectively, going through the inspection processes, and receiving a timely market evaluation.

Please contact us if you would like to have a free market analysis of the value of your real estate or a free magnetic calendar. Thank you for visiting our on line real estate source. We hope you find it helpful in evaluating your real estate needs.