A Kentucky Mortgage Loan Officer that has closed over 600 home loans specializing in Kentucky First Time Homebuyer Loans to include the following FHA, VA, USDA, Rural Housing, Down Payment Assistance Loan from Kentucky Housing Corp or KHC and the Fannie Mae Home Path HUD $100 Down Mortgage Program in Kentucky. Call/Text 502-905-3708 with your mortgage questions or email kentuckyloan@gmail.com I try to respond to all requests within minutes during regular business hours. NMLS# 57916 Joel Lobb Loan Originator, American Mortgage Solutions NMLS ID. 1364 Equal Housing Lender
Qualifying for a mortgage loan in Kentucky involves understanding the various loan options, meeting credit score requirements, and navigating down payment assistance programs. Here’s a comprehensive guide to help you through the process.
Understanding Kentucky Mortgage Options
Kentucky offers several mortgage options tailored to different financial situations:
Prior 1099’s To Determine if you can gross up (Follow Product guide-FHA/Conv. Etc) and review 1040 Tax return Line 5.. 5A will show non taxed income and 5B will show taxable portion – you can only gross up non taxable Pension Benefits Letter – Must show Minimum 3 year continuation – most will be lifetime -letter must state lifetime or other timeframe 2 years W2’s
Self Employed:
2 Years 1040’s with all schedules (These are your personal tax returns). The tax returns will tell you what other documents are needed 1040 – Page 1 Line 7 will tell you if there is any W2 income.
Self employed people also pay themselves w2 income often. You will need all w2’s that when added up match the $ amount entered on line 7 of the 1040 Line 7A will tell you if there’s other income. The income details will be farther indicated on Schedule 1
Schedule 1 Line 2A show alimony received Line 3 indicates if there is a Schedule C (Sole Proprietors or single person LLC’s) Line 5 is for Schedule E which is either Business (LLC/SCorp/Corp) or Rental income- It could be both if borrower owns rental property and businesses.
Schedule E The totals on all schedule E’s should add up to match the $ on Schedule 1. If the total on one of the schedules doesn’t match you know there are others On Schedule E Part II Box 28 you will see business name. If the business name is duplicated on multiple lines it’s because both parties on the tax filing have ownership in the business.
Check to confirm the Tax ID (FEIN) is the same on both lines. If it’s different it indicated multiple companies. Box 28B will have a P or S
P = LLC (Partnership) which is filed on a 1065 partnership return of if owned by one person can be filed on a Schedule C in the personal 1040 Tax return. If the return is Filed on 1065 there will be a K1 which will show the % of ownership. If they own 25% or more you will need the 2 years returns. (Assuming not single person partnership filed on 1040
Schedule C – There is no K1 on the Schedule C) if they advise that they own less than 25% on a 1065 you’ll just need the K1 from the 1065 to support that. If there are multiple partners there must be a 1065 filing
S = SCorp or Corporation which is filed on an 1120S for the S Corp or an 1120 for a Corporation. On the 1120S you will have a Schedule K1 which will show the % of ownership. If they own 25% or more you will need 2 year full returns. If they advise that they own <25% the K1 will show their shares. The 1120 will not have K1’s, the income just flows thru to the personal returns. We don’t see 1120’s often
Docs Needed:
LLC with 25% or more ownership you need: 2 year 1065’s with all schedules Year to date Profit and Loss statement and balance sheet –signed and dated 3 months bank statements from the business (3 because of covid-normally 2) If they own <25% then you only need the K1s for 2 years (If LLC is owned by one person A/K/A single person partnership they can file income on
Schedule C on personal 1040 Return – P & L / Balance sheet and Bank statements still required
SCorp/Corp with 25% plus ownership you need: 2 year 1120’s/1120 with all schedules Year to date Profit and Loss statement and balance sheet –signed and dated 3 months bank statements from the business (3 because of covid-normally 2) If they own <25% you only need the K1’s for 2 years 1040 Schedule C – Sole Proprietor or Single Person LLC you still need; 2 year 1040s with all schedules Year to date Profit and Loss statement and balance sheet –signed and dated 3 months bank statements from the business (3 because of covid-normally 2)
Wage Earner
2 years w2’s for all jobs Paystubs for the most recent 30 days (All w2’s should balance with line 7 on 1040) VOE’s – Primary job full income breakdown Former jobs – Dates of employment only needed unless you are trying to support an income trend then you need full breakdowns
Trust Income
Copy of Trust – must be irrevocable
Child support/Alimony
Marital settlement agreement and final dissolution of marriage Proof income received (For timeline follow program specific guideline) If never married and receiving child support request court order and proof received
Voluntary child support/alimony – review program specific guides
All Social security/Disability, Pension, Child Support, Alimony, Trust income must be guaranteed to continue for a minimum of 3 years from closing.
Social Security/Disability/Child Support
may be able to be grossed up if not taxed. For social security review 1040 Line 5 – 5A & 5b will confirm taxable/non taxable then follow program rules
Dividends/interest/capital gains. Only use if completely necessary – capital gains are not typically allowed as usually they are 1 time events.
Military Income
Paystubs aka LES (Leave earnings Statement DD214 Current orders if active
Documents Needed For All Loan Applications
ALL BORROWERS:
Copies of W-2’s for the last two years;
Copies of paycheck stubs for the last 30 days (most current);
Copies of checking and saving account statements for last three months (all pages);
Copies of quarterly or semi-annual statements for checking, savings, IRA’s, CD’s, money market fund, stock, 401k, profit sharing, etc.;
Copy of sales contract when ratified;
Employment history for the last two years (address any gaps of employment);
Residency history over the last two years, with name, phone number, address and account number of Land or Mortgage Company. Rental property copies of leases plus mortgage information.
Canceled earnest money check when it clears or corresponding bank statement, if applicable;
Commissioned or bonus income — if 25% or more of base, must have tax returns;
Check for the expense of appraisal & credit report;
Refinance Copy of Note, Deed of Trust, Settlement Statement, Survey, and Insurance information;
Any assets used for down payment, closing cost, and cash reserves must be documented by a paper trail;
If paid off mortgage in the last 2 years, need copies of HUD1;
Copy of drivers license for applicant and co-applicant.
SELF-EMPLOYED BORROWERS:
Copies of most recent 2 years tax returns (with all schedules including k-I’s if applicable);
Copy of current profit & loss statement and balance sheet;
Copy of corporate/partnership tax returns for most recent 2 year period if owning 25% or more of company — copies of W-2’s and/or 1099 forms.
DOCUMENTS WHICH MAY BE REQUIRED:
Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits;
Previous bankruptcy, need copies of petition for bankruptcy and discharge, including supporting schedules;
Divorce Decree if applicable;
Documentation supporting moneys received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, evidence income will continue.
DOCUMENTS NEEDED FOR FHA/VA LOANS:
FHA: Copy of social security card and drivers license for each applicant and co-applicants;
VA: Original Certificate of Eligibility and copy of DD214 Discharge Paper;
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org).
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.
There are several alternative mortgage options available if you don’t have a down payment, haven’t established a strong credit history, or are unable to supply documentation for a “traditional” mortgage. Some options include:
DOWN PAYMENT ASSISTANCE (DPA) by KHC
These programs often come from states and municipalities allowing you to purchase a home with a smaller down payment. Many DPA programs come in the form of a repayable second mortgage or a deferred or forgiven grant
Kentucky FHA (FEDERAL HOUSING ADMINISTRATION)
An FHA loan is insured by the Federal Housing Administration and is ideal for low- or moderate-income individuals or families, or borrowers with past credit problems or limited down payment resources.
FHA loans are popular for Kentucky first-time home buyers because they offer down payment options as low as 3.5% and an upfront Mortgage Insurance Premium (MIP) financed into your loan amount. 100% of the money needed at closing is allowed to be a gift.
FHA also allows a “streamline” refinance when rates go down to lower your interest rate.
Kentucky VA (VETERAN’S ADMINISTRATION)
If you have served or are currently serving in the U.S. military, we thank you for your service! The VA loan program offers low rates and low- or no-money-down payment options. VA loans do not require mortgage insurance, and also offer a low-cost Interest Rate Reduction Loan (IRRL) program allowing you to refinance and lower your mortgage payment. The maximum VA loan amount varies, so check with your Mortgage Professional for up-to-date information.
Kentucky USDA Mortgage Loans
If you plan to live in a more rural area, the USDA (United States Department of Agriculture) has a variety of loans to help low- or moderate income individuals and families buy, repair or renovate a home. USDA loans often carry lower interest rates and do not require a cash down payment. Not all properties qualify, so check with your
KENTUCKY HOME PURCHASE DOCUMENT CHECKLIST
l. INCOME SALARY/HOURLY Most recent 30 days of pay stubs Last 2 years of W2s Most recent tax return (pages 1 and 2) SELF EMPLOYED (all schedules) 2 years personal tax returns 2 years business tax returns P&L and balance sheet through most recent quarter (FHA & Jumbo required) OTHER (Social Security/Pension/Annuity) 2 years 1099s Awards letter
ASSETS (every page)
Most recent 2 months bank statements Most recent quarterly statement for 401K, Retirement, Profit Sharing accounts
PROPERTY
Purchase Contract: disclosures, addendums,
copy of Earnest Money check
Homeowner’s Insurance: Agent name and
MISCELLANEOUS (if applicable) Divorce Decree *These documents may Child support order upon receipt of fully ex Bankruptcy documents with discharge VA: Certificate of Eligibility (COE) / DD-214 Papers OTHER PROPERTIES OWNED: Mortgage Statement Proof of Insurance Proof of any association fees
GIFT LETTER: Evidence of transfer/deposit (Conventional) Evidence of transfer/deposit and document donor ability to gift (FHA)
THE 8 STEPS OF HOMEOWNERSHIP There are several events that will occur throughout your new home purchase process. This guide will help you fully understand the process to eliminate stress:
Save for Down Payment & Credit Scores
Apply for Pre-Approval
Determine Housing Criteria & Neighborhood
Hire an Agent & Start Your Home Search
Complete the Loan Application
Move Through the Loan Process
Set a Closing Date
Understand Monthly Mortgage Payments STEP 1: SAVE FOR DOWN PAYMENT & CREDIT SCORES Buying a home requires some upfront cash, including your down payment and closing costs. Financial experts typically recommend a down payment of 20% of the purchase price. However, you can purchase a home with a down payment as little as 0-3% of the purchase price. While you’re working on saving for your down payment, keep an eye on your credit score. Your credit score is a number that indicates how much of a credit risk you pose when you borrow money and helps determine your interest rate. Typically, the higher your score, the lower your rate. There are three different credit scores agencies: Equifax (BEACON), Experian (FICO Risk Model), and TransUnion (FICO Risk Score, Classic). Credit scores range from 300-850. Each credit reporting agency gives you different scores, but all three should be pretty similar. Your credit score is divided into five factors: 10% 10% 35% Payment History……………………………………………………. 35% Amounts Owed……………………………………………………… 30% Length of Credit History………………………………………. 15% Inquiries……………………………………………………………………. 10% Type of Credit Used………………………………………………. 10% 15% 30% Often, when you’re shopping for a mortgage, you may look for the best rate from multiple lenders. Each lender may pull your credit report which is typically bad for your score. However, credit reporting agencies distinguish a single loan search from a search for many new credit lines by the length of time the inquiries occur. Avoid lowering your score by completing your rate shopping within a short period of time, such as 14 days.
Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc. 10602 Timberwood Circle Suite 3 Louisville, KY 40223
Company ID #1364 | MB73346
Text/call 502-905-3708
kentuckyloan@gmail.com
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
Joel Lobb, American Mortgage Solutions (Statewide)
Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”
Collections on Credit Report and How They affect a Kentucky VA Mortgage Loan Approval
Collection accounts are accounts for a debt that have been submitted to a collection agency by the creditor generally due to nonpayment. Below are general tips and guidance on what DU will require when collection accounts are reporting on a borrower’s credit report.
Accounts that are reported as past due but not yet turned over to a collection agency must be brought current. These past due accounts are not considered collection accounts.
Kentucky VA Mortgage Loan Guidelines Below for Credit and Collections:
Any collection account required by DU (Automated Underwriting System used by Mortgage Lenders) to be paid must be paid prior to or at closing.
Isolated collection account do not necessarily have to be paid off for loan approval.
Borrowers with a history of collection accounts should have re-established satisfactory credit in order to be considered a satisfactory credit risk.
Lenders/underwriters should review the complete credit history and use sound judgment to determine if collection account pose a credit risk to the borrower’s ability to repay the loan.
Use These Findings to Boost Your Credit Score for a VA Mortgage Loan Approval
Here are 3 tips on improving a low credit score for a VA mortgage Loan Approval:
Step 1: Get a line of credit
In order to establish credit history, you need to have a form of credit. The simplest way for you to begin will be to open a credit card. If your score is low or non-existent, then you’ll need to apply for a secured card or a store card.
Secured Card: You’ll use your own money as collateral by putting down a deposit of a few hundred dollars with the bank. Typically, that amount will then be your credit limit. Once you prove you’re responsible, you can get back your deposit and upgrade to a regular credit card. [Read more here]
Store Card: People with a low credit score can often still get store cards because banks are more likely to approve users who apply through the store. The catch is that the interest rates are often very high if you can’t make your payments. [Read more here]
Step 2: Keep your utilization rate low
Utilization is the amount of your credit limit you spend each month. For example, if you have a $500 credit limit and spend $50 in a month, you’re utilization will be 10%. Your utilization is part of what determines your credit score.
Your goal should be to never exceed 30% of your credit limit. Ideally, you should be even lower than 30% because the lower your utilization rate, the better your score will be.
We recommend you make one small purchase (hello, pack of gum) a month to keep your utilization low and help increase your credit score at a faster rate.
Step 3: Pay in full, and on time, each month
The easiest way to prove you’re responsible is to only charge what you can afford. Never use your credit card to buy an item you won’t be able to pay off on time and in full each month.
Being late on your payments has a huge, negative impact on your credit score.
There is also no advantage to only paying the minimum amount due on your card. That will only result in you paying interest and does nothing to help your credit score. So just save yourself money and pay your entire bill.
Customer Reviews below:
👀👀👀👀😍😍😍😍👇👇👇👇👇
Absolutely Amazing!! I emailed Joel after I had just got a denial from a bank and just thought i would try to get some advice on what my next steps would be to get a house. I honestly didn’t expect to even get a reply because my credit is not great. That was about a week and a half ago. I just signed a contract on a house last night. ONLY because of Joel Lobb. He even worked with us throughout the weekend, which shocked me. Best decision I have ever made. THANK YOU SO MUCH FOR WORKING WITH US THROUGHOUT THE ENTIRE PROCESS.
Cee Bellisle August 2018
😃
Contacted him about buying a home and he was great to work with. I was moving to Louisville Ky to take a new job and he walked me through the entire process. He explained to me all the different options for FHA, VA, USDA mortgage loans and credit score requirements versus Fannie Mae. Since I was a first time home buyer I needed alot of help and guidance. I would definitely recommend him. Fast to respond and available to answer questions that I or my realtor had after hours. Anderson Johnson April, 2018
We moved from Michigan to Northern Kentucky area and we were really impressed. We got a USDA loan no money down and closed in less than 3.5 weeks. We shopped around online with other lenders but Joel was always first to respond and his rates were just a little better than other lenders. He kept us informed through the process along with our realtor and there was absolutely no surprises like we heard from other co-workers and friends that they experienced in their loan process. We have already referred another co-worker to Joel . He’s AWESOME!
Patty Kingston July 2018
😍
betty parsons
Wow, what a great loan officer. I was referred to him by our agent and he was great to work with. We used him for a USDA no money down loan in Shelby County and we were really impressed. We were afraid we could not buy a home since we did not have money saved for a down payment, but Joe l was able to get us a zero down loan and we even got our appraisal fee and good faith deposit back at closing. We actually got money back at closing!!! I Can’t think him enough. Our family moved from our apartment in the south end of town to get our own home with 5 acres for our kids and 2 dogs, at a payment that is equal to our rent payment also. .Thanks Again Joel. May god bless you
Patty Locker
We contacted Joel about buying a house on our move from Ohio for my husband’s job transfer with Ford. We put a lot of trust in him since we were new to the area and first time home buyers in the Louisville KY market, and he always delivered on what he said. It took us a while to find a home due to the lack of homes, but once we got one, he was always quick to respond our questions via text or email ,and kept us informed through the process. We got to meet him at the closing and he was super nice and even got us a closing gift for our home which we didn’t expect at all. Super nice guy 😀!!! I would definitely recommend him for a local Home loan in the Louisville area.
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pam dolby
I got a VA loan with Joel and he was great. He is an ex-army guy so he could relate to my past experiences of being a veteran and moving around the country a lot. I had some credit issues that required a little extra work but Joel was able to find A VA lender to approve my situation as far as having past bad credit problems and a lower credit score. We closed yesterday on our home here in Louisville and we could not be happier. We finally have a home of our own thanks to Joel . I would definitely recommend him for a mortgage loan. Great experience and closed 8 days before expected close date so we were able to move in early.
I contacted Joel about the $10,000 KY Housing Grant last month and we were able to get it and I just closed on my home. He was great to work with and if you are a first time home buyer here in Louisville, I would definitely contact him. I met him at his office and he was very nice and knowledgeable and kept me informed through the process. No surprises either so I was very happy. I am new homeowner thanks to Joel .
I can answer your questions and usually get you pre-approved the same day. Call or Text me at 502-905-3708 with your mortgage questions. Email Kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
, NMLS ID# 57916, (www.nmlsconsumeraccess.org). I lend in the following states: Kentucky
Self Employed Income for FHA, VA, USDA and KHC Mortgage Loans Guidelines
• A borrower is considered self employed if they have 25% or more ownership in a business.
• Contract or 1099 employees are self employed borrowers
• There are 4 types of self employed business structures
o Sole Proprietorships
o Corporations
o Limited Liability Company (LLC)
o Partnerships
Tax Returns are always required for a self employed borrower. Depending on the business structure, the borrower may have business returns in addition to their personal tax returns.
1099, Sole Proprietorships, and LLC self employed borrowers typically file Schedule C on their personal tax returns
Corporations and Partnerships will file Business Tax Returns in addition to their personal returns. The business returns will include K1’s listing the borrower’s ordinary business income and percentage of ownership.
Corporation and Partnerships may also have W2 income in addition to their K1’s.
All self employed income is calculated per agency guidelines
Self employed income requires a 2 year history.
Declining self employed income typically cannot be used unless allowed by specific agency of loan program
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
Kentucky First-Time Homebuyer Loan Programs for FHA, VA, KHC and USDA Mortgage Loans in Kentucky 