Self-Employed Guidelines for Getting a Mortgage Approved In Kentucky

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Self Employed Income Guidelines for a Getting a Kentucky Government FHA, VA, USDA Mortgage Loan in Kentucky
  • 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:
  • Sole Proprietorships
  • Corporations
  • Limited Liability Company (LLC)
  • 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 or loan program.
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
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.


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



Kentucky First Time Buyer Programs for 2015

Kentucky First Time Buyer Programs for 2015.

via Kentucky First Time Buyer Programs for 2015.

Kentucky Rural Housing Mortgage Loans Require No Money Down


100% Financing, No Money to closing Fast Approval, Low Fixed Payment USDA Loans
Kentucky Rural Housing Mortgage Loans
Kentucky USDA Guaranteed Rural Housing Loans
Did you know that home buyers can still get a mortgage with no money down, even with less than perfect credit? The Kentucky Guaranteed Rural Housing Loan Program offers these options in a wide range of areas, including many suburbs.

This loan program is offered through the Kentucky  Rural Housing Service, an agency of the U.S. Department of Agriculture and designed to assist low and moderate-income residents by providing better access to affordable housing finance options including little or no out-of-pocket costs in eligible areas.

  • To see if your market area falls in a designated Kentucky USDA Rural area, visit:
  • Available to low- and moderate-income borrowers whose adjusted income is equal to or less than 115% of the area median income
  • Owner-occupied single family non-farm residences, approved condos and PUDs
  • New construction properties are eligible
  • Home buyers can finance up to 100% of the market appraised value, including all recurring and non-recurring closing costs, in some circumstances Loan amounts as high as $417,000 in the continental U.S. Higher in Alaska and Hawaii.
  • Credit scores as low as 620 No asset or reserve requirements. Gift funds are allowed

Call me today to learn more about this program.


Joel Lobb 
Senior  Loan Officer

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346






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

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



Title Insurance Information

Stewart Title Guaranty Companytitle reportSenior LoanLouisville, KYinsurance policiesinsuredchain of titlehome ownerLeaseholdLoan OfficerHurstbournelegal descriptionproperty




Title Insurance Information.

The title report which is also known as the Preliminary Title contains several schedules and these schedules can differ depending on the state where the property is located. The title usually begins with a “Schedule A”. This schedule indicates the property being insured, the legal description of the property being insured, the insured, the amount of insurance for the mortgagee and the fee owner. If there is leasehold then there would be Leasehold policy.

Schedule B indicates the history of the property also known as the chain of title. The report also indicates the survey boundaries, tax history and indicates if there are any open taxes, judgments, liens, easements of record and any or all clouds on the title.

What is Title Insurance?

Title insurance protects the insured from claims regarding ownership of the property, liens against the property, and marketability of title to the property. The Rounsavall Title Group, in its capacity as an agent of Stewart Title Guaranty Company, offers two types of policies: the mortgagee policy which protects the lender, and the owner’s policy which protects the buyer.

According to the mortgagee policy, when a claim results in a total loss of title, the title insurance company shall take all steps necessary to defend the claim on behalf of the insured entity. In other words, the lender could ultimately be compensated for any loss they might suffer as a result of a title claim, for a claim could negatively impact their collateral interest in the property. Almost every lender today requires that you purchase this policy on their behalf at the closing of the loan. Keep in mind that this lender’s policy only protects the lender, and does not afford any protection to the home owner. So in the event of a claim, an uninsured home owner would still be responsible for repaying the debt to the lender despite the fact that they may no longer actually own the property. Furthermore, the uninsured home owner could lose any and all of the equity they have established in their home.

As such, we strongly recommend that every home owner obtain an owner’s title insurance policy in order to be fully protected in the event of a claim. It insures against the loss they may suffer, and typically includes reimbursement to the home owner for court costs and fees associated with the claim. Unlike other insurance policies you might get, this is a one time premium, and once purchased, is effective for the rest of the home owner’s life.













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

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, ( I lend in the following states: Kentucky

The Top 5 Questions to Ask Your Lender

The Top 5 Questions to Ask Your Lender.

The Top 5 Questions to Ask Your Lender

The Top 5 Questions to Ask Your Lender1. “Which loan is best for me?”
When applying for a mortgage, it’s important to know about the various different types of loans available, and which one is best suited for you. For example, there are fixed rate and adjustable rate mortgages, loans than run 30 years or 15 years, and government assistance programs if the home you are purchasing is in need of repair or is located in a rural area. An honest lender will work with you and help you identify the best type of loan for you, so don’t be afraid to ask if there are other options available.

2. “What does APR really mean?”
Many buyers are confused by interest rates, annual percentages rates (or, “APR” for short), and how to tell the two apart. APR is a figure that is calculated by a complex formula. It includes the interest rate and all of the other related lender fees divided by the loan’s term. Because interest rates fluctuate, so does the APR. When your lender is calculating the numbers, ask them to explain all fees, including the APR, so that you’ll have a better understanding how they reached the total of the loan and your monthly mortgage payment amount.

3. “What are discount points?”
If there’s one thing that confuses first time buyers, it’s discount points! Discount points allow you to buy down the interest rate, and generally speaking, a point is equal to one percent of the loan amount. So, if your loan is for $200,000 and you buy two points, that’s $4,000 off your loan. Basically, you’re making an upfront payment that reduces the interest rate and saves you money over the life of the loan. Oh, and they’re also tax deductible! Some lenders offer discount points, but others don’t, so be sure to ask if yours does. Also, be aware that many lenders charge fees for points, so clear that up beforehand, too.

4. “Do you offer loan rate locks?”
Interest rates can swing up or down fairly quickly, meaning the rate that a lender quotes you during your pre-approval may not be the same one you receive on your final loan agreement. The best way to make sure that you get the rate you were first quoted is by locking in the rate. Most lenders offer this option, but some don’t, so it’s always a good idea to ask. Typically speaking, you can lock in a rate for less than one point, so that’s some added security and one less headache you’ll have to deal with later in the process.

5. “Is there a prepayment penalty?”
This is a very important question that many borrowers forget to ask because they aren’t thinking about the future when they’re purchasing a home in the here-and-now! In many states, prepayment penalties are illegal, but some states still allow lenders to charge up to six months of unearned interest if you pay off the loan early though a refinance or if you sell the home.  You never know what the future holds, so it’s always best to know if you’ll be charged a penalty should you refinance or sell your home at some point down the road.

Thanks, but No Thanks – Stacy Kaper –

Thanks, but No Thanks – Stacy Kaper –