Credit Score Information For Kentucky Home buyers

Credit Scores are important for getting approved for a Mortgage in Kentucky.


Credit Scores are important for getting approved for a Mortgage in Kentucky.

Credit Score Requirements for FHA, VA, USDA and Conventional Loans in Kentucky
Credit Score Requirements for FHA, VA, USDA and Conventional Loans in Kentucky

 

Below I have spelled out some info that will help you out when you look at your credit scores and what affects them and what you can do to help your credit scores in order to prepare for a mortgage loan approval when it comes to your credit scores.

  1. Opting out will help a credit score.
    No it won’t. The bureaus don’t know if someone has opted out or not and it’s not factored into the credit scores. If someone’s score improves after they have opted out it’s because something else has changed on the report but not because they opted out.
  2. Paying off old delinquencies will remove them from your credit report.
    No a collection account or an account with late payments will stay on a credit report for 7 years. That being said, the credit bureaus will occasionally go in and remove old collections that have not reported for a while. But that’s at their discretion. Just because you paid if off doesn’t mean it will be removed. Also paying off an older collection with then brings the reporting date current which could actually hurt the credit scores.
  3. All rate shopping inquiries are the same.
    If you are rate shopping for a mortgage or auto, all inquiries with Trans Union and Equifax have a 45 day window. For Experian however it’s only 15 days. For revolving inquiries there is no “shopping” period. All those inquiries are counted no matter what the time frame is.
  4. Opening new accounts will help your credit score.
    This will help only if the borrower has no established credit yet. Once you have several accounts, opening new ones will actually have a negative affect on a credit score until substantial history is accumulated on the account.
  5. Paying off all your revolving balances is a good thing!
    Actually no it’s not. The credit bureaus models like to see at least one revolving balance, even if it’s small. Having no revolving balances can actually have a negative impact on a credit score. So always keeping one account with a small balance is a very good idea.
  6. Your credit is affected by how much money you have in your savings or checking accounts.
    Neither of these are factored into a credit score.
  7. Closing old accounts will help a credit score.
    The credit scoring models like to see several open accounts that have zero balances and are not used often. When an account is closed you lose that history. If it’s an account you’ve had for a long time and has no late payments, closing it can actual hurt the credit score. Having several open accounts, even if they are not used much, makes it look like a person has good financial responsibility.
  8. When I check my own credit score it’s the same one used by lenders.
    Unfortunately no it’s not. A person actually has 69+ different credit scores. The ones that lenders use are completely different than what a borrower sees when they get their own scores. Those are personal scores and are not used by any industry for any reason.
  9. Checking my own credit report will hurt my score.
    When a consumer checks their own credit report it’s a “soft” inquiry and will not impact the scores. Only “hard” inquiries done by creditors when a consumer applies for a loan or credit card will possibly have a negative affect on a credit score.

It’s  possible to avoid paying for your credit score or at least an estimate. Here is a list of all of the well-known ways to get a FICO score or score estimate for free:

Free FICO credit scores:

For free estimates of your credit score estimates and credit monitoring:

Also see the Wikipedia page on free credit report websites.

Credit cards (no annual fee) that offer a free FICO score with their monthly statement or online:

  • Amazon Synchrony Store Card (TransUnion, FICO-08)
  • American Express (Experian, FICO-08)
  • Bank of America Cards (TransUnion, FICO-08)
  • Barclaycards including the Sallie Mae Mastercard (TransUnion, FICO)
  • Branded Citibank cards (Equifax, FICO-08)
  • Chase Slate (Experian, FICO)
  • Discover cards (Transunion, FICO-08)
  • FNBO Cards (Experian, FICO-08 Bankcard)
  • Walmart Store Card (TransUnion, FICO)
  • Wells Fargo Cards (FICO)

Deposit accounts that offer a free FICO score with their monthly statement:

  • Digital Credit Union (EQ-05: Mortgage Score)

Credit cards (no annual fee) that offer a free estimated credit score online:

  • Capital One credit cards (TransUnion, VantageScore 3.0)

Note that score ranges vary between FICO scores and other scores:

  • FICO: 300 to 850 (used in 85-90% of credit decisions)
  • VantageScore (used in 10-15% of credit decisions)
    • VantageScore pre-3.0: 501 to 990
    • VantageScore 3.0: 300 to 850
  • TransUnion New Account Score: 300 to 850 (score estimate)
  • Equifax: 280 to 850 (score estimate)
  • Experian: 330 to 830 (score estimate)

Image result for credit scores and mortgage loans

 

 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
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/

— 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.

— 

A Complete Guide to Closing Costs in Kentucky


Who  pays Closing costs in Kentucky?

How much is closing Costs in Kentucky?

A Complete Guide to Closing Costs.

closing costs in Kentucky
closing costs in Kentucky

 Complete Guide to Closing Costs in Kentucky

A Complete Guide to Closing Costs

Types of Closing Costs

Let’s talk briefly about the types of closing costs you might encounter and how much those costs tend to run. Understand that closing costs, especially tax-related costs, will vary widely depending on where you live. But some costs can be estimated based on national averages.
Also, you should know that with fluctuations in the real estate market, closing costs are also fluctuating. A 2012 US News article pointed out that closing costs dropped 7 percent over 2011-2012 to an average of about $3,754.
The drops are, in part, because of 2010 regulations that were put in place by the government to shield homebuyers from “closing cost sticker shock.” Now that lenders are better at estimating final closing costs, those costs are dropping naturally.
Still, the national average for closing costs is nearly $4,000, which isn’t pocket change for your average homebuyer. So where’s all that money going? Here are some of the closing costs you might have to pay, along with average costs, based on the Allstate Home Buyers Closing Cost Worksheet.
  • Mortgage Application FeeThis fee varies from lender to lender but usually is $200-$400. You don’t have to pay this fee when you’re shopping around for a mortgage, but you’ll probably pay it when your chosen lender is processing your application. Sometimes this fee is due ahead of closing.
  • Appraisal Fee: This fee can sometimes be paid by the seller but is normally paid by the buyer. Basically, the fee goes to a professional appraiser who will ensure that the bank isn’t lending you more money than a property is worth. It’ll cost $100-$400.
  • Building InspectionIf you need to hire a home, pest or other specialized inspector, you’ll have to pay the fee. Some lenders will require an inspection to make sure the property is in good condition. This fee runs $150-$400 on average.
  • Survey: This is a fee you’re likely to skip, though it’s required by commercial lenders. It is for a surveyor to check out the lot and the structures on it to ensure the boundaries are properly noted. It can cost $300-$450.
  • Legal FeesAlthough attorney fees will add extra to your bill, you may want to pay a professional to ensure that all the documentation for your home is in order. Some lenders will bring along their own attorney, but yours will ensure that your personal interests are protected. Legal fees can run $300-$600, depending on your attorney and what you’re requiring of him or her.
  • Title Search and Insurance: A title insurance company will ensure that the title to the home is free and clear — that no one else will have claims on it. Sometimes a title search is separate from title insurance and will cost $150-$200. Title insurance varies but is usually about 1 percent of the home price.
  • Private Mortgage Insurance (PMI): If you put less than 20 percent down on your home, you’ll likely have to pay PMI. The average PMI premium is 2.5 percent of the mortgage, though your premium will vary depending on the value of your home, your credit score and your down payment. If you need PMI, you’ll likely have to pay a portion of the premium at closing. (Note: If you’re getting an FHA, VA or RHS government-backed loan, you’ll pay something like PMI, but it will be paid to the guarantor.)
  • Homeowners InsuranceAll lenders will require that you carry homeowners insurance on a property as long as it’s mortgaged. Typically, you’ll have to pay the first year’s property insurance premium in advance. Sometimes you’ll pay the insurer directly, but other times you’ll pay at closing.
  • Prepaid Interest: This one can get a little complicated. Let’s say your mortgage payment is due on the 1st of every month, but you close on your new home on the 15th. If this is the case, the lender will calculate the interest you owe for those 15-16 days remaining in the month, and that interest payment will be due at closing. Sometimes the seller reimburses these costs, since it’s often in his or her best interest to close as soon as possible — before your first mortgage payment is due. These costs will depend on your mortgage amount, interest rate and the time between closing and your first payment coming due.
  • Points: Points are another form of prepaid interest, but they’re generally not required. You can pay, usually, from 0-4 points on your mortgage. One point equals 1 percent of the total mortgage principal. (If you’re taking out a $100,000 loan, a point is $1,000, for instance.) One point usually reduces your interest rate by 1/8 percent. If you choose to pay points (rather than increasing your down payment), you’ll do so at closing.
  • Escrow Fees: The majority of homeowners use an escrow system for paying real estate taxes, fire and flood insurance, homeowners insurance and PMI. The escrow account is held either by a third party or by your lender, depending on your circumstances, and it’s used to pay all of the annual or monthly premiums for these important homeownership-related items. When you close on your home, you’ll generally need to put around three months’ worth of escrowed fees in the account.
  • Realty Transfer Tax: The taxes you pay on transferring a property are similar to the taxes you pay when you buy a new (or new-to-you) vehicle. Taxes vary by your state and municipality.
  • Recording Fees: Your local government will have to record the purchase transaction of your new home, which will cost $40-$60, on average.
  • Prorated Expenses: Some of the lump-sum costs associated with your home — water bills, homeowner association fees, condominium fees, etc. — could be split between you and the seller during your transaction. If you buy a home midway through the year, for instance, you may need to pay 50 percent of these fees. These expenses will depend on when you buy your home and are often negotiable with the seller

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– See more at: http://www.doughroller.net/mortgages/a-complete-guide-to-closing-costs/#sthash.76LyGU4d.dpuf

Ways to Pay Closing Costs

There are several ways to pay closing costs. Start by getting a Good Faith Estimate and then figure out which option will work best for you.

Good Faith Estimate

According to the Federal Reserve, the Real Estate Settlement Procedures Act requires that a lender give you a “good faith estimate” of your closing costs within three business days of your submitting your loan application.
Basically, the Good Faith Estimate (GFE) is part of shopping around for a mortgage. Because different lenders will have different requirements, closing costs can vary widely. So before you choose a mortgage, carefully look over the GFE to find differences between lenders.
While federal regulations aiming for more transparency in home lending have made good faith estimates somewhat more accurate, you have to remember that it’s still an estimate.
Saving for closing costs is a “hope for the best, plan for the worst” situation. Try to figure out the most you’d have to pay in closing costs and be prepared to pay them (while still leaving some cash in reserves). But you should also find the best lender for your needs and reduce closing costs as much as possible.

Pay in cash

The easiest way to pay closing costs, of course, is cash. If you have enough money in savings to pay for your down payment and your closing costs and to have cash in reserves, this is often the best option.
Paying more closing costs keeps you from taking out a bigger loan and can save you money on mortgage interest, which may save you a fortune over the life of your loan.

Roll it into the mortgage

If you don’t have plenty of cash on hand, you can roll your closing costs into your mortgage. Because closing costs are generally a small amount of money compared with your overall mortgage, most lenders don’t mind rolling part or all of the closing costs into the loan.
However, you do have to be careful because rolling your closing costs into your mortgage may mean you can’t spend as much money on a house. For instance, if, based on your credit, your lender agrees to finance up to 90 percent of the value of a $150,000 home, they may not go over that loan-to-value ratio, even to roll in closing costs.
In this scenario, say you’ve agreed to put $15,000 (10 percent) down on a home worth $150,000. Your lender agrees to finance 90 percent of the home’s value, leaving a $135,000 mortgage. If you don’t have cash for the $5,000 in closing costs, you could ask the lender to roll that into your loan, making your mortgage $140,000.
But if the lender isn’t comfortable financing 95 percent of the home’s value (a very high loan-to-value ratio in the world of home lending), you may be out of luck. In this case, you might have to find a cheaper home so that you can pay a smaller down payment and have money left for closing costs.
One thing to note: many government-backed loans, like the FHA and VA loans, are set up specifically for first-time or lower-income home buyers, who often have trouble saving for a down payment and closing costs. Because of this, it’s common for these loans to roll closing costs into the mortgage and to finance even above 95 percent of the home’s value.

Ask the seller to pay some costs

This is easier to accomplish in a sluggish housing market, or any time the seller is ready to get out of the home ASAP. In some cases, the seller will take part of the closing costs out of the money they’re getting when they sell the home.
If you don’t have money to pay closing costs, this is a good way to save money without increasing your loan (and, thus, your monthly mortgage payments). And what’s the worst that can happen? The seller may just say no.

Ask the lender to pay closing costs

Sometimes a lender will pay your closing costs, even if they don’t roll them into your mortgage. For instance, your lender might just outright pay $4,000 toward your closing costs but then raise the interest rate on your loan by 0.25 percent or more. (They’re not in the habit of giving away free money, after all.)
You’ll need to make sure this doesn’t come back to bite you. Figure out how much that extra interest will cost you over the life of your loan, or at least the length of time you plan to be in the home, and see if this is a reasonable approach for you.

Borrow for your closing costs

Taking out a separate loan for a down payment is usually a no-no. Your main lender wants to be the only one to have a claim on your home if you should default.
However, you could take out an unsecured loan to cover closing costs. Just be careful here, as interest rates could really bite on a personal unsecured loan.

Find Out How Much to Expect in Closing Costs

That’s a lot of information, and, unfortunately, it doesn’t tell you exactly how much you’ll pay in closing costs. You may not know exact closing costs until you’re ready to close on your home, but you can get a good idea of these costs online by using these resources:
  • SmartClosing Calculator – This calculator from Zillow will calculate costs based on where you’re buying a home, so taxes and government fees will be added in. The calculator will also show you the total amount you can expect to pay in mortgage payments, including real estate taxes and homeowner’s insurance.
  • Federal Reserve Settlement Costs Worksheet – This worksheet is good for comparing potential mortgage. It lets you compare the closing costs for two loans.
  • How do closing costs impact my interest rate? – This calculator from Yahoo! Homes will show you how financing closing costs, as opposed to paying them in cash, will affect your mortgage’s interest rate.

 

Call or text me at 502-905-3708 or email me at kentuckyloan@gmail.com NMLS#57916 Kentucky Mortgage Loan Only!

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
Company NMLS ID #1364
 

Text/call:      502-905-3708

 

fax:            502-327-9119

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). Mortgage loans only offered in Kentucky.

Does bad debt, collections, or charge offs on credit report have to be paid off to get a VA loan approval in Kentucky


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.
Like
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












 
 

 

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


 
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

FHA Mortgage Requirements for Louisville Ky First Time Home Buyers


FHA Mortgage Requirements for Louisville Ky First Time Home Buyers.

via FHA Mortgage Requirements for Louisville Ky First Time Home Buyers.

Debt to Income Ratios for A Kentucky Mortgage Loan


Debt to Income Ratios for A Kentucky Mortgage Loan

580. 720, 680, 600, 620 credit score for a Kentucky Mortgage Loan FHA, VA, KHC, USDA
580. 720, 680, 600, 620 credit score for a Kentucky Mortgage Loan FHA, VA, KHC, USDA

There are two debt-to-income (DTI) ratios on every loan: housing or front-end ratio and total or back-end ratio. The housing ratio tells us what percentage of the borrower’s monthly gross income is allocated toward the monthly principal, interest, tax, and insurance (PITI) payment. The total ratio includes the monthly PITI and all other monthly debts including auto loans, credit cards, child support expenses, student loans and more.

PITI / Total Qualifying Monthly Income = Front-end %

(PITI + All other Debts) / Monthly Income = Back-end %

The DTI ratios are one of the cornerstones of mortgage lending. They help us determine the borrower’s ability to repay the mortgage loan. Historically, borrowers with a higher DTI have had a higher default rate, making them a higher risk for lending. As a result, Fannie Mae, Freddie Mac, FHA, private mortgage insurance (PMI) companies, and investors have all set DTI limits based on program, product, property, and loan purpose.

 

As an underwriter or processor, it is our duty to insure the DTI on our automated underwriting system (AUS) findings is correct and matching the Underwriting Transmittal (1008). We should be performing a manual DTI calculation to double check our loan origination systems’ (LOS) calculation.

 

There are times when data is entered incorrectly into the LOS and the ratios are inaccurate. The most common factor that creates a DTI error is when the borrower owns multiple properties. When entering the housing expenses for these properties, you must learn how to properly manipulate your LOS to yield the correct DTI. Performing the manual calculation is the way to “back into” the correct DTI.

 

 

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)

 

FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire


FHA expands mortgage backing to the once bankrupt | 2013-08-16 | HousingWire.

Louisville Kentucky FHA, VA, USDA, and Fannie Mae Mortgage Loan Guidelines for 2013


Louisville Kentucky FHA, VA, USDA, and Fannie Mae Mortgage Loan Guidelines for 2013

 

FHA
Business as usual for;
Case numbers
CAIVRS
FHA TOTAL Scorecard
Upfront Mortgage Insurance Premiums
Endorsements (may be delays due to reduced staff)
Loss mitigations
Submission of monthly MIP is required
filing claims and conveyance of property is permitted
FMC will continue to require validation of income documents.
If the tax transcripts have not been obtained at this time, FMC
employee must obtain a Written Verifications of Employment for
Wage Earners in-lieu of the transcripts from either the employer or
an approved third party verification company.
If the income used for qualification purposes must be supported by
tax returns, tax transcripts are required prior to final approval. (For
example but not limited to, commission, self-employed, rental
income, etc.)
If the borrower is employed by the government and is on furlough
and/or we are unable to obtain Verbal Verification of employment
the loan must not close until employment has been verified.
Fannie Mae
Business as usual for systems and deliveries.
FMC will continue to require validation of income documents.
If the tax transcripts have not been obtained at this time, FMC
employee must obtain a Written Verifications of Employment for
Wage Earners in-lieu of the transcripts from either the employer or
Government Shutdown Page 1 of 3 Credit Policy Announcement 13-26
an approved third party verification company.
If the income used for qualification purposes must be supported by
tax returns, tax transcripts are required prior to final approval. (For
example but not limited to, commission, self-employed, rental
income, etc.)Government Shutdown Page 2 of 3 Credit Policy Announcement 13-26
Product Specific
Impact,
continued
If the borrower is employed by the government and is on furlough
and/or we are unable to obtain Verbal Verification of employment
the loan must not close until employment has been verified.
Patriot
Business as usual, unless we are waiting on tax transcripts or if a verbal
VOE cannot be obtained. Loans will not be final approved or closed if
these requirements have not been met, no exceptions.
USDA
All transactions are on hold during the furlough. USDA will not issue any
Conditional Commitments or fund existing Conditional Commitments unti
l
the furlough is over, at which time further instruction will be issued. GUS
is not operational therefore we will not be able to update USDA
transactions during this time.
VA
Business as usual for VA systems and operations.
FMC will continue to require validation of income documents.
If the tax transcripts have not been obtained at this time, FMC
employee must obtain a Written Verifications of Employment for
Wage Earners in-lieu of the transcripts from either the employer or
an approved third party verification company.
If the income used for qualification purposes must be supported by
tax returns, tax transcripts are required prior to final approval. (For
example but not limited to, commission, self-employed, rental
income, etc.)
If the borrower is employed by the government and is on furlough
and/or we are unable to obtain Verbal Verification of employment
the loan must not close until employment has been verified.
Systems
Availability
Available:
FHA Connection
CAIVRS can be checked
VA Portal
o Order appraisals
o Order case number assignments
o Obtain and follow up on COEs
FraudGuard, which will:
o Check LDP/GSA
o Complete a best match for consumer SSN from verifying
sources such as credit repositories, licensing bureaus and
death records. If we need an absolute validation of a
borrower’s SSN from the SSA we will have to wait, see
below. Government Shutdown Page 3 of 3 Credit Policy Announcement 13-26
Systems
Availability,
Continued
Unavailable:
IRS will not process any forms, therefore 4506T will not be
processed and tax transcripts cannot be obtained
Social Security Administration has only retained employees that
deal with processing claims and benefits. We will not be able to
obtain SSN validation through any provider that goes directly to
SSA
o There are acceptable alternatives to obtaining validation of
SSNs such as the Interthinx Safe Check report or third party
source documents that are acceptable to the agencies.
USDA/Rural Development’s GUS Automated Underwriting
System
Effective date October 1, 2013, until further notice