Kentucky FHA Loan Requirements for 2020


Kentucky FHA Loan Requirements

 

 

Kentucky FHA Loan Requirements for 2020 to include Credit Fico Scores, Down Payment, Income and Job history

FHA

An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.

  • Minimum Credit Score is 500 with at least 10% down
  • Minimum Credit Score is 580 if you put less than 10% down
  • The maximum loan amount varies by Geographical Area, for 2019 it is as follows:
  • The FHA national low-cost area mortgage limits, which are set at 65 percent of the national conforming limit of $510,400 for a one-unit property, are, by property unit number, as follows:
    • One-unit: $331,760
    • Two-unit: $42,800
    • Three-unit: $513,400
    • Four-unit: $638,100
  • Upfront and Monthly Mortgage Insurance is required regardless of the Loan to Value
  • FHA Loans are only available for financing primary residences
  • Maximum Debt to Income Ratio of 50% (unless mitigating factors justify allowing a higher DTI)

 

Kentucky FHA Loan Requirements

The requirements for Kentucky FHA loans are set by HUD.

  • Borrowers must have a steady employment history of the last two years within the same industry or line of work. Recent college graduates can use their transcripts to supplant the 2 year work history rule as long as it makes sense.
  • Self-Employed will need a 2 year history of tax returns filed with IRS. They will take a 2 year average.
  • FHA requires a 3.5% down payment. Can be gifted from family member or from retirement savings plan, or money saved-up. Any type of cash deposits are not allowed for down payments. No exceptions to this rule!! This is one of the biggest issues I see in FHA underwriting nowadays.
  •  FHA loans are  for primary residence occupancy. Not rental houses.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 43 percent. If the Automated Underwriting System gives you an Approved Eligible you can go higher on the debt ratios
  • Borrowers must have a minimum credit score of 580 for maximum financing with a 3.5% down payment
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. Most lenders will not go below 620 score, and very few lenders will go to 580 score. It’s best to work on getting your scores up before you apply or work with a loan officer to improve them.
  • 2 years removed from Chapter 7 is required with good pay history after bankruptcy
  • 1 year removed from Chapter 13 is okay with an excellent pay history with the Chapter 13 plan and permission from trustee. You will need to qualify with the Chapter 13 payment along with new house payment. Again, scores will play into your loan pre-approval.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you’ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.
  • Max FHA loan in Kentucky is between $331,760.00  depending on the county in Kentucky
    I can answer your questions and usually get you pre-approved the same day.



 

FHA 

Low Down Payment which can be 100% gift from family member or Grant Program
Seller can pay closing costs-Maximum 6% of purchase price
There is maximum mortgage amount for each county. Check FHA loan limit for your county.
500 Minimum Credit Score
More flexible underwriting guidelines and extenuating credit and income circumstances may be considered by the lender.
Non-occupant co-signers are allowed on this program.
FHA Approved Condos-Single family home-2-4 unit properties, and PUDs are eligible.
Fast automated underwriting approval available. Also, the file can be manually underwritten by a live person to get loan approval if you do not receive approval through automated underwriting system.

FHA Foreclosure Program 

Must be HUD Owned property or FHA Foreclosure in HUD Participating Communities
$100 Down Payment than standard FHA program
620 minimum credit score
Single family, 1-4 unit properties, HUD approved condominiums, and PUDS eligible

 

 

 

 

Down Payment Plus Assistance Program 

Up to $5000 Grant to buy a home in the Northern Kentucky Area of The Homebuyer Assistance Program for 2019 is funded through the HOME Program and administered by the Northern Kentucky HOME Consortium through the City of Covington’s Neighborhood Services Department. The purpose of the program is to increase the number of homeowners in the Northern Kentucky HOME Consortium cities of Ludlow, Newport, Bellevue, and Dayton

 

 

  • Borrower’s gross annual household income must be at or below 80% of the Area Median Income ($43,900 for a single person, $62,650 for a 4 person household). Borrowers must attend a HUD approved homebuyer education course.
  • All properties must be one to two units, owner-occupied or vacant, and meet minimum local housing standards.
  • Up to $5,000 to cover the lender required down payment and customary settlement charges to the borrower.
  • Interest Rate/Loan Term: 0%, 5 years
  • Monthly Payment Amount: No monthly payments. The loan will be forgiven if the owner occupies the home as their principal residence for 5 years from the date of purchase.

b. Credit: Credit history and documentation which indicates substantial evidence of borrower’s ability to pay will be reviewed. Reports from a Credit Bureau will be obtained for all borrowers.
c. Education: All applicants must participate in a HUD/City-approved homebuyer education course and must present a certificate of completion prior to loan closing.

d. Loan Underwriting: Borrower’s debt ratios cannot exceed 31% and 43% to ensure that the borrower’s income is sufficient to cover their mortgage and other monthly obligations. The interest rate on the first mortgage cannot be higher than 2.5% above the average 30 year conventional loan rate as published by Freddie Mac in the Weekly Primary Mortgage Market Survey. Borrowers may not use first mortgage financing with balloon payments, adjustable rates, or other terms that are determined to be subprime. Adjustable rate mortgages may be considered if the City determines them to be the most affordable financing option for the borrower.

e. Non occupant co-borrowers will be allowed, however debt ratio limitations will apply to primary borrower’s household income only.

f. Liquid Asset Limitation Policy: The applicant(s) must not have liquid assets in excess of the following amounts at time of loan application:

 $10,000: Liquid assets in excess of this amount will be required to be used in the purchase transaction prior to the use of any Program funds.

 Stocks and other readily salable securities will be considered liquid assets unless they are restricted by IRA, 401(k) or other similar requirements. Funds in IRAs, 401(k) plans or other qualified retirement accounts will not be considered liquid assets.

 Applicants that are at or near retirement age may have retirement savings, which will not have to be contributed, unless such savings exceed an amount that
Persons in Household

 

2. Kentucky Housing Corporation Down Payment Assistance for 2020.

 

Regular DAP

  • Purchase price up to $314,257 with Secondary Market.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.
  • Available to all KHC first-mortgage loan recipients.

Affordable DAP

  • Purchase price up to $314,257 with Secondary Market.
  • Assistance up to $6,000.
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP income limits.

More about down payment and closing costs

  • No liquid asset review and no limit on borrower reserves.
  • Specific credit underwriting standards may apply to down payment programs.

 

$6000 Kentucky housing grant for 2020 first time home buyers

 

 

Down Payment Assistance of $6,000 for KHC Loans. Apply online

3. Welcome Home $5000 Grant for Kentucky Homebuyers 2020

The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership through a program called the Welcome Home Program. Welcome Home funds are available to Members as grants to assist homebuyers.

Welcome Home grants are limited to $5,000 per household, households are eligible only if the total household income is at or below 80% of Mortgage Revenue Bond (MRB) income limits, and funds are offered on a “first-come, first-served” basis. Other program requirements are identified below.

What are the Program Requirements?

Below is an abbreviated list of program eligibility requirements:

The total income for all occupants must be at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located. The FHLB has an Income and Affordability Workbook to assist in determining household income eligibility.
Home-buyers must contribute at least $500 of their own funds towards down payment and/or closing costs.
WHP applicants do not have to be first-time home buyers. However, all first-time home buyers are required to complete a home ownership counseling program.
WHP grant funds are intended only for home buyers who qualify for the first mortgage based on their own merit. Co-signors and co-borrowers are not allowed unless they will occupy the home as their primary residence and their incomes are included in determining eligibility.
WHP grant funds may be used in conjunction with other local, state and federal funding sources and with the FHLB Cincinnati’s Community Investment Cash Advance Programs.
The Member who reserves the WHP funds must originate the first loan, but the loan may close in the name of a third party.
The interest rate for the first mortgage may not exceed 7.50 percent.
The interest rate for the second mortgage may not exceed 11.00 percent.
Only second mortgages provided by formal organizations, community development financial institutions, housing finance agencies, non-profit organizations, etc. are acceptable.
All eligible property assisted with WHP funds is subject to a five-year retention mechanism (Retention Agreement), which may require the household to repay all, or a portion, of the subsidy, if the home is sold or refinanced within five years from the closing of the transaction.

Kentucky WELCOME HOME GRANT Available beginning March 4, 2021

*Welcome Home grant offered by FHLB of Cincinnati is available on a “first-come,
first-serve” basis only to the extent the funds are available.
Buyers do not have to be first-time home-buyers.
Home-buyers must contribute $500 toward down payment or closing costs, and cannot get cash back. Closing costs include appraisal, underwriter, title exam, credit reporting, title insurance, recording and flood determination fees.
First time home buyers must complete a home buyer counseling course.
Home buyer’s income cannot exceed specific county income limits.
The home must meet specific condition requirements. Manufactured housing may be allowed. No 203k programs allowed.
Offer is subject to credit approval. Contact a Mortgage Lender for details, limits and guidelines, or if you have any questions.
Limited Time Offer

 

 

Kentucky Income limits for Welcome Home Grant for 2020

Income limits are obtained from the state housing finance agency for each state.

Use the 80% limits for the Welcome Home Program.*******

Use the 100% limits for the Disaster Reconstruction Program.

 

Kentucky 

County 100% limits 80% limits****Welcome Home Funds limit
1-2 Persons 3 + Persons 1-2 Persons 3 + Persons
Adair $71,040 $82,880 $56,832 $66,304
Allen $71,040 $82,880 $56,832 $66,304
Anderson $69,400 $79,810 $55,520 $63,848
Ballard $59,200 $68,080 $47,360 $54,464
Barren $59,200 $68,080 $47,360 $54,464
Bath $71,040 $82,880 $56,832 $66,304
Bell $71,040 $82,880 $56,832 $66,304
Boone $78,300 $90,045 $62,640 $72,036
Bourbon $84,120 $98,140 $67,296 $78,512
Boyd $59,200 $68,080 $47,360 $54,464
Boyle $71,040 $82,880 $56,832 $66,304
Bracken $93,960 $109,620 $75,168 $87,696
Breathitt $71,040 $82,880 $56,832 $66,304
Breckinridge $71,040 $82,880 $56,832 $66,304
Bullitt $71,500 $82,225 $57,200 $65,780
Butler $71,040 $82,880 $56,832 $66,304
Caldwell $59,200 $68,080 $47,360 $54,464
Calloway $59,200 $68,080 $47,360 $54,464
Campbell $78,300 $90,045 $62,640 $72,036
Carlisle $71,040 $82,880 $56,832 $66,304
Carroll $71,040 $82,880 $56,832 $66,304
Carter $71,040 $82,880 $56,832 $66,304
Casey $71,040 $82,880 $56,832 $66,304
Christian $59,200 $68,080 $47,360 $54,464
Clark $84,120 $98,140 $67,296 $78,512
Clay $71,040 $82,880 $56,832 $66,304
Clinton $71,040 $82,880 $56,832 $66,304
Crittenden $71,040 $82,880 $56,832 $66,304
Cumberland $71,040 $82,880 $56,832 $66,304
Daviess $62,300 $71,645 $49,840 $57,316
Edmonson $71,040 $82,880 $56,832 $66,304
Elliott $71,040 $82,880 $56,832 $66,304
Estill $71,040 $82,880 $56,832 $66,304
Fayette $70,100 $80,615 $56,080 $64,492
Fleming $71,040 $82,880 $56,832 $66,304
Floyd $71,040 $82,880 $56,832 $66,304
Franklin $65,200 $74,980 $52,160 $59,984
Fulton $71,040 $82,880 $56,832 $66,304
Gallatin $93,960 $109,620 $75,168 $87,696
Garrard $71,040 $82,880 $56,832 $66,304
Grant $71,040 $82,880 $56,832 $66,304
Graves $59,200 $68,080 $47,360 $54,464
Grayson $71,040 $82,880 $56,832 $66,304
Green $71,040 $82,880 $56,832 $66,304
Greenup $59,200 $68,080 $47,360 $54,464
Hancock $62,300 $70,725 $49,840 $56,580
Hardin $61,500 $72,220 $49,200 $57,776
Harlan $71,040 $82,880 $56,832 $66,304
Harrison $71,040 $82,880 $56,832 $66,304
Hart $71,040 $82,880 $56,832 $66,304
Henderson $65,100 $74,865 $52,080 $59,892
Henry $85,800 $100,100 $68,640 $80,080
Hickman $71,040 $82,880 $56,832 $66,304
Hopkins $71,040 $82,880 $56,832 $66,304
Jackson $71,040 $82,880 $56,832 $66,304
Jefferson $71,500 $82,225 $57,200 $65,780
Jessamine $70,100 $80,615 $56,080 $64,492
Johnson $71,040 $82,880 $56,832 $66,304
Kenton $78,300 $90,045 $62,640 $72,036
Knott $71,040 $82,880 $56,832 $66,304
Knox $71,040 $82,880 $56,832 $66,304
Larue $73,800 $86,100 $59,040 $68,880
Laurel $59,200 $68,080 $47,360 $54,464
Lawrence $71,040 $82,880 $56,832 $66,304
Lee $71,040 $82,880 $56,832 $66,304
Leslie $71,040 $82,880 $56,832 $66,304
Letcher $71,040 $82,880 $56,832 $66,304
Lewis $71,040 $82,880 $56,832 $66,304
Lincoln $71,040 $82,880 $56,832 $66,304
Livingston $59,200 $68,080 $47,360 $54,464
Logan $71,040 $82,880 $56,832 $66,304
Lyon $60,500 $69,575 $48,400 $55,660
Madison $79,080 $92,260 $63,264 $73,808
Magoffin $71,040 $82,880 $56,832 $66,304
Marion $71,040 $82,880 $56,832 $66,304
Marshall $59,600 $68,540 $47,680 $54,832
Martin $71,040 $82,880 $56,832 $66,304
Mason $71,040 $82,880 $56,832 $66,304
McCracken $60,800 $69,920 $48,640 $55,936
McCreary $71,040 $82,880 $56,832 $66,304
McLean $74,760 $87,220 $59,808 $69,776
Meade $60,500 $69,575 $48,400 $55,660
Menifee $71,040 $82,880 $56,832 $66,304
Mercer $59,200 $68,080 $47,360 $54,464
Metcalfe $71,040 $82,880 $56,832 $66,304
Monroe $71,040 $82,880 $56,832 $66,304
Montgomery $71,040 $82,880 $56,832 $66,304
Morgan $71,040 $82,880 $56,832 $66,304
Muhlenberg $59,200 $68,080 $47,360 $54,464
Nelson $74,520 $86,940 $59,616 $69,552
Nicholas $71,040 $82,880 $56,832 $66,304
Ohio $71,040 $82,880 $56,832 $66,304
Oldham $71,500 $82,225 $57,200 $65,780
Owen $71,040 $82,880 $56,832 $66,304
Owsley $71,040 $82,880 $56,832 $66,304
Pendleton $93,960 $109,620 $75,168 $87,696
Perry $71,040 $82,880 $56,832 $66,304
Pike $71,040 $82,880 $56,832 $66,304
Powell $71,040 $82,880 $56,832 $66,304
Pulaski $71,040 $82,880 $56,832 $66,304
Robertson $71,040 $82,880 $56,832 $66,304
Rockcastle $71,040 $82,880 $56,832 $66,304
Rowan $71,040 $82,880 $56,832 $66,304
Russell $71,040 $82,880 $56,832 $66,304
Scott $84,120 $98,140 $67,296 $78,512
Shelby $75,200 $86,480 $60,160 $69,184
Simpson $59,200 $68,080 $47,360 $54,464
Spencer $85,800 $100,100 $68,640 $80,080
Taylor $59,200 $68,080 $47,360 $54,464
Todd $71,040 $82,880 $56,832 $66,304
Trigg $59,200 $68,080 $47,360 $54,464
Trimble $85,800 $100,100 $68,640 $80,080
Union $59,200 $68,080 $47,360 $54,464
Warren $59,200 $68,080 $47,360 $54,464
Washington $71,040 $82,880 $56,832 $66,304
Wayne $71,040 $82,880 $56,832 $66,304
Webster $71,040 $82,880 $56,832 $66,304
Whitley $71,040 $82,880 $56,832 $66,304
Wolfe $71,040 $82,880 $56,832 $66,304
Woodford $70,100 $80,615 $56,080 $64,492

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

 NMLS Consumer Access for Joel Lobb 

Privacy Policy

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#57916

— 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.

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

 

Kentucky FHA Mortgage Loans Guidelines

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Kentucky FHA Loan Requirements

The requirements for Kentucky FHA loans are set by HUD.

  • Borrowers must have a steady employment history of the last two years within the same industry or line of work. Recent college graduates can use their transcripts to supplant the 2 year work history rule as long as it makes sense.
  • Self-Employed will need a 2 year history of tax returns filed with IRS. They will take a 2 year average.
  • FHA requires a 3.5% down payment. Can be gifted from family member or from retirement savings plan, or money saved-up. Any type of cash deposits are not allowed for down payments. No exceptions to this rule!! This is one of the biggest issues I see in FHA underwriting nowadays.
  •  FHA loans are  for primary residence occupancy. Not rental houses.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees…

View original post 453 more words

Check out the Fannie Mae HomePath listings in Jefferson County Louisville, Kentucky for 2016


 

images (6)

 

Address Location Type Status Price Beds Baths
Previous Next
223 Middletown Sq
Louisville, KY
Single Family Just Listed $78,000 1 1 First Look Program
1663 Al Mara Cir
Louisville, KY
Single Family Just Listed $195,000 4 3 First Look Program
609 Logsdon Ct
Louisville, KY
Condo Just Listed $75,000 1 1 First Look Program
8206 Roland Ave
Louisville, KY
Single Family Just Listed $194,000 3 2.5 First Look Program
9831 Brooks Bend Rd
Louisville, KY
Single Family Price Reduced $149,000 3 2
5851 New Cut Rd
Louisville, KY
Single Family Price Reduced $109,900 4 2
603 Glen Ct
Louisville, KY
Single Family Price Reduced $349,000 4 3
3802 Vermont Ave
Louisville, KY
Single Family Active $19,900 2 1
8014 Woodbury Dr
Louisville, KY
Single Family Active $62,000 3 1
4905 Applegrove Ln
Louisville, KY
Single Family Active $88,500 3 1
4515 Hazelwood Ave
Louisville, KY
Single Family Active $36,000 3 1
516 Academy Ridge Pl
Louisville, KY
Single Family Active $395,000 5 4
3013 Linwood Ave
Louisville, KY
Single Family Active $16,500 2 1 First Look Program
4208 Wisteria Landing Cir Unit 203
Louisville, KY
Condo Active $59,500 1 1
8301 Atlanta Pkwy
Louisville, KY
Single Family Active $99,900 3 2
10610 Sycamore Ct
Louisville, KY
Condo Active $96,000 2 2
110 S Arbor Park
Louisville, KY
Single Family Active $59,000 2 1
6936 Norlynn Dr
Louisville, KY
Single Family Active $185,000 5 2 First Look Program
1219 Lipps Ln
Louisville, KY
Single Family Coming Soon 3 1
303 Harpers Ferry Rd
Louisville, KY
Single Family Coming Soon 3 1.5
7711 Bluebonnet Rd
Louisville, KY
Single Family Coming Soon 3 1
6714 Brook Bend Way
Louisville, KY
Single Family Under Contract $175,000 3 3
3707 Chatham Rd
Louisville, KY
Single Family Under Contract $135,000 3 2
3209 Welman Dr
Louisville, KY
Single Family Under Contract $89,900 3 3
5312 Georgia Ln
Louisville, KY
Single Family Under Contract $79,000 2 2
2015 Patricia Dr
Louisville, KY
Single Family Under Contract $127,000 3 1
13200 Bessels Blvd
Louisville, KY
Single Family Under Contract $144,000 3 3
5210 Plume Dr
Louisville, KY
Single Family Under Contract $132,900 3 2
2209 Osage Ave
Louisville, KY
Single Family Under Contract $27,500 3 2
131 N 38th St
Louisville, KY
Single Family Under Contract $19,000 3 2
4128 Hillview Ave
Louisville, KY
Single Family Under Contract $24,900 2 1
5203 Gathwright Dr
Louisville, KY
Single Family Under Contract $66,900 3 1.5
509 Christopher Pl
Louisville, KY
Single Family Under Contract $58,000 2 1
4303 Bayberry Dr
Louisville, KY
Single Family Under Contract $105,000 3 1
11909 Tazwell Dr Apt 2
Louisville, KY
Condo Under Contract $72,500 2 2
919 Loretto Ave
Louisville, KY
Single Family Under Contract $21,000 3 1
7502 Faxon Ct
Louisville, KY
Single Family Under Contract $66,000 3 2

I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance.
I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance.
 
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 
 Fax:     (502) 327-9119
 
 

 

Louisville Kentucky First Time Home Buyer Programs and Resources


Louisville Kentucky First Time Home Buyer Programs and Resources.

via Louisville Kentucky First Time Home Buyer Programs and Resources.

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 

Joel Lobb - Mortgage Broker or Lender at Kentucky FHA, VA, USDA, KHC and  First Time H

Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan


credit scores will fare after a short sale or foreclosure
Obtaining new financing after a Short Sale or Foreclosure for a Kentucky USDA, FHA, VA, and Fannie Mae Loan

 

Kentucky Mortgage Short Sale:
Conventional Loans Require:
Minimum 2 years with restrictions up to 7 years
2 to 4 years – 80% maximum LTV
4 to 7 years – 90% maximum LTV
7 years and after allow for maximum standard financing
Kentucky FHA and Kentucky VA Loans Require:
3 years, with exceptions possible for less time if borrower’s credit and mortgage payments were in good standing prior and up to date of Short Sale
  Kentucky Mortgage Foreclosure:
Conventional Loans Require:
7 years, with exceptions considered between 3 to 7 years if significant extenuating circumstances exist
Kentucky FHA and Kentucky VA Loans Require:
FHA: 3 years, with exceptions possible for less time if significant extenuating circumstances exist
VA: 3 years, with exceptions possible for less time if significant extenuating circumstances exist
Please contact me for a free mortgage pre-approval or with questions!

 

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

text  or call phone: (502) 905-3708
 Fax:     (502) 327-9119
 Company ID #1364 | MB73344

 

Fill out my form!

 

 

 

 

FHA changes may aid those who lost homes


FHA changes may aid those who lost homes.

Kentucky FHA changes may aid those who lost homes

The Federal Housing Authority has shortened the mandatory waiting periods for an Kentucky  FHA-insured mortgage loan for those who have undergone foreclosure, deed-in-lieu, taken a short sale or declared bankruptcy during the economic recession.

 

Through its new program, Back to Work—Extenuating Circumstances, the waiting period for most borrowers is now just 12 months instead of the typical three, seven or 10 years. Both first-time and repeat home-buyers can apply. “Most people do not know this program has been released, and are only renting because

If you feel like you qualify for this and live in Kentucky, please call or email me with your questions and I would be glad to see if you qualify for the new Kentucky FHA Program for free.

 

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
 800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
((502) 905-3708 |

FHA changes may aid those who lost homes

SURRENDURING YOUR HOME IN BANKRUPTCY


SURRENDURING YOUR HOME IN BANKRUPTCY.

 

Kentucky Mortgage after a bankruptcy, foreclosure, short sale approval
by: Tracy L. Hirsch, Attorney

One of the hardest decisions a family has to make is deciding to surrender their home in a bankruptcy proceeding. Often times, this means allowing a home to go through the foreclosure process and discharging their mortgage obligations in a Chapter 7 bankruptcy. Many homeowners are concerned about the foreclosure process and their obligations to their mortgage company once their bankruptcy process is complete.

 

Often times, when a person chooses to surrender their home in bankruptcy, he is in the middle of the foreclosure process. Filing a bankruptcy petition creates an automatic stay, which puts an immediate halt to the foreclosure process.

The mortgage company may then choose to either file a motion with the court to re-start the foreclosure process (called a motion to terminate the automatic stay) during the 90 days of the Chapter 7 process or wait until the Chapter 7 is discharged to initiate the process again. Either way, foreclosure is a long, legal process and it often takes anywhere from four to eight months for the house to be sold at the foreclosure sale. Regardless of when the bankruptcy is complete, the home still belongs to the homeowner until the home is sold at the commissioner’s sale.

In order to understand why bankruptcy may not be immediately necessary in order to get out from under a mortgage, one needs to understand how the foreclosure process works. In most states, including Kentucky and Indiana, creditors are required to utilize a process called judicial foreclosure.

The way it works is this. Once there has been a default, the creditor initiates the foreclosure process by filing a Complaint in the Circuit Court of the county where the property is located. The creditor must then obtain service of the Complaint on the debtor in a manner permitted by law. Once service has been obtained, the debtor then has 20 days to answer the Complaint. The purpose of this is to allow the debtor to assert any defenses that he may have. If the debtor fails to file an Answer to the Complaint, then the creditor gets a default judgment.

After obtaining a default judgment against the debtor, the creditor may then proceed to obtain a sale date. Normally it takes at least 4 months or longer from the time of service of the Complaint until the sale date. On the sale date, the property is auctioned off at the courthouse to the highest bidder. The proceeds of the sale are then credited to the loan, and what is left over, referred to as the deficiency balance, is what the debtor owes the creditor.

If the property sells for enough to cover the balance of the loan, then there is no debt that is owed by the debtor. So until such time that the property actually sells at foreclosure, it is impossible to know for sure how much the debtor will actually get stuck with. So if you owe $150,000 on your mortgage, this does not mean that you personally are on the hook for that amount. If the house sells for $140,000, then you only owe the $10,000 difference.

So before you decide that you need to file bankruptcy solely because your home is going into foreclosure, you may want to wait and see what the outcome is from the foreclosure sale. You may owe less than you think. Now if you have other reasons for filing bankruptcy, such as credit card or medical debt that you can’t pay, then it makes sense to go ahead with the filing. But if it is all about your mortgage, you may want to wait and see what the damages are before pulling the trigger on a bankruptcy filing.

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 

Text or call phone: (502) 905-3708
 
 
 

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 views of my employer. Not all products or services mentioned on this site may fit all people

 

 

Louisville FHA Kentucky Mortgage Recently HUD/FHA issued three new mortgagee letter…: Will these recent FHA Changes do anything?


Recently HUD/FHA issued three new mortgagee letters that on the surface indicates a new way that HUD/FHA is going to treat borrowers with past credit problems.

Will these recent FHA Changes do anything?

Will these recent FHA Changes do anything?

Recently HUD/FHA issued three new mortgagee letters that on the surface indicates a new way that HUD/FHA is going to treat borrowers with past credit problems.

The reason for my skepticism is due to credit scoring. HUD/FHA allows a FHA borrower with 10% down with a credit score as low as 500. Borrowers with credit scores 580 and above can obtain maximum financing. The FHA allows credit scores as low as 500, however, most institutional investors have overlays that prevent FHA borrowers to obtain FHA financing with credit scores below 640 some not lower than 620.

All those recent changes mean nothing if the credit scores are too low and you have no institutional investor to purchase the loan file.
If HUD does not apply pressure to the large banks to go by their guidelines then these guideline changes mean nothing.
Questions, please call or email me with your questions. I look forward to helping you buy your next home even if you had a past foreclosure, short sale or bankruptcy in Kentucky.
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

I specialize in First Time Home Buyers and move-up buyers. I have helped over 500 families buy their first home or second home and I would like to help your family. FHA, Rural Housing, KHC( Zero down loans ), VA, Conventional loans. Free credit report and Free pre-approvals within 1 hour..Call me today at 502-905-3708 or email me at kentuckyloan@gmail.com- (NMLS# 57916)