What are the Kentucky FHA Credit Score Requirements for 2020 Mortgage Loan Approvals?


If you are looking to refinance your mortgage loan, you’ll want to be prepared to meet your lender’s criteria and educate yourself about your FICO® Scores as they are the credit scores most commonly used in the mortgage refinancing process.

As there are different versions of the FICO Score, it’s important that you focus on the FICO Score versions used in mortgage lending. It’s highly likely that the following FICO Score versions will be pulled on all mortgage loan applicants and from all three credit bureaus:

FICO Score 5 based on Equifax data
FICO Score 2 based on Experian data
FICO Score 4 based on TransUnion data
You can access the scores along with the top reasons why the scores are not higher at myFICO. Focusing your credit actions on these top reasons could help you to understand your scores and gain access to more attractive rates.

You can now focus on those mortgage-related versions in your FICO Score explanation report with confidence knowing they are the same versions your mortgage lender will likely access in the refinance loan review process.

1. Based on $300,000 mortgage loan with fixed interest rate of 4.5% and 30-yr term

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Louisville Kentucky Mortgage Loans

via What are the Kentucky FHA Credit Score Requirements for 2020 Mortgage Loan Approvals?

If you are looking to refinance your mortgage loan, you’ll want to be prepared to meet your lender’s criteria and educate yourself about your FICO® Scores as they are the credit scores most commonly used in the mortgage refinancing process.

As there are different versions of the FICO Score, it’s important that you focus on the FICO Score versions used in mortgage lending. It’s highly likely that the following FICO Score versions will be pulled on all mortgage loan applicants and from all three credit bureaus:

FICO Score 5 based on Equifax data
FICO Score 2 based on Experian data
FICO Score 4 based on TransUnion data
You can access the scores along with the top reasons why the scores are not higher at myFICO. Focusing your credit actions on these top reasons could help you…

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Kentucky FHA Mortgage Work History and Income Requirements.


Kentucky FHA Mortgage Work History and Income Requirements.

Kentucky FHA Mortgage Loans Guidelines

  • No matter what you must provide a 2 year employment history. Conventional or Kentucky FHA Mortgage Loan.  Conventional does not always need to be verified with a written work verification form
    • if you do not have a complete 2 year history you must explain any large gaps.  Typically I have seen this to be greater than 30 days.
    • you must have a 2 year history prior to the gap as well.  (two underwriters from two different lenders have recently told me the same thing)
    • also check your AUS-Automated Underwriting Findings  because that can help when speaking with your potential borrower.
  • Exception to the 2 year history is college or HS graduation
    • need official college transcripts or they can be unofficial if you get them with the web URL just like bank activity.
    • good idea to snag their diploma as well.
    • you probably don’t even need to use this exception if the person was a student…

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Guidelines for KY FHA, VA, USDA and VA Mortgage loans with Student Loans on A Credit Report:


Guidelines for KY FHA, VA, USDA and VA Mortgage loans with Student Loans on A Credit Report:

Louisville Kentucky Mortgage Loans

Student Loans In Collections, What Can I Do?
If you have public student loans in collections, you really have three options to resolve it so it is not a CAIVRS issue.
1.      Pay it off in full – Not typically an option because very rarely do the clients have the funds to do so.
2.      Consolidation – Only takes about 90 days to consolidate and resolve CAIVRS issues. However, you push forward the last activity dates, DLA, and also introduce a new credit trade line that dilutes the length of the credit history. So you will normally see a drop in credit score.
3.      Rehabilitation – It is the slowest of all the options, but is the best thing for the clients’ credit scores. It is a 9 month commitment and once the client makes 9 consecutive payments, they will change the collection status to a good standing status. This will…

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Kentucky USDA Rural Housing County Income Limits for 2020


Kentucky USDA Income Limits 2020 Increases for all Kentucky Counties

USDA income limits 2020 increase allows more home buyers purchase a home with no down payment. Effective May 2020 through April 30, 2021, USDA guaranteed housing base income limits are as follows: $90,300 for 1 – 4 person households and a whopping $119,200 for 5 or more person households. Guys, that is not low income! So, we are talking about a majority of American households meeting this income limit. Therefore, first time buyers or repeat buyers have the ability to use an amazing product to purchase a home without down payment.

Louisville Kentucky Mortgage Loans

via Kentucky USDA Rural Housing County Income Limits for 2020

2020 Kentucky USDA Loan Income Limits for Kentucky Counties 

USDA INCOME LIMITS F0R 2020

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Kentucky HUD Homes for Sale with the FHA $100 Down Program


Home Loan Options for Kentucky First-Time Home-buyers in 2020


Kentucky First-Time Home-buyers in 2020

Louisville Kentucky Mortgage Loans

Kentucky FHA Mortgage Loans

Kentucky FHA loans are insured to give lenders a layer of protection if you default on the mortgage. They typically have competitive interest rates, smaller down payments and lower closing costs than conventional loans. A low credit score can still warrant only a 3.5 percent down payment down to a 580 credit score.

If the score is below 580, you will need a down payment of 10%

2 years removed from bankruptcy and 3 years removed from foreclosure

Clear Cavirs Alert Number (Delinquent with Government Debts)

2 year work history usually needed.

No need for rent verification unless credit scores are derogatory.

Collections usually don’t have to be paid, but if being garnished or sued with a judgement lien, typically will need to be paid.

Max debt to income ratio centered around 50% of your total gross monthly income divided by your monthly payment on the…

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Kentucky FHA Home loan programs for people with bad credit


Lowers Minimum Credit Score Requirement on Kentucky FHA Loans

Kentucky FHA Home loan programs for people with bad credit

Kentucky FHA Mortgage Loans Guidelines

Score Requirement on Kentucky FHA Loans for people with bad credit

Lowers Minimum Credit Score Requirement on Kentucky FHA Loans

Kentucky FHA Home loan programs for people with bad credit

FHA loans are designed to make housing more affordable with lower down payment requirements than conventional loans on purchases and less home equity requirements on refinances.  Less stringent qualification guidelines and the security of a government-insured loan makes FHA a popular choice for consumers.

Kentucky FHA Loans with 580 Credit scores and – Low Down Payment – 3.5% which can be gifted from relatives or borrowed off one’s retirement account. If your scores is between 500-579, 10% down needed for home loan and subject to underwriting approval.

  • Low down payment
  • 500 minimum credit score from 10% down, to 580 above credit score with 3.5% down payment
  • Can be used with Grants for Down payment through Eligible Sources
  • FHA  max loan –…

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