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FHA Approved Condo List Louisville Kentucky Jefferson County
via Tips for first-time homebuyers in Kentucky
Does Fannie Mae require charge off’s and collections to be paid for a mortgage loan approval?
Desktop Underwriter (DU) For DU underwritten loans, for one-unit, principal residence properties, borrowers are not required to pay off outstanding collections or non-mortgage charge-offs—regardless of the amount.
Note: If you mark the collection account Paid By Close in the loan application, DU will issue a message in the DU Underwriting Findings report stating that the collection must be paid.
For two- to four-unit owner-occupied and second home properties, collections and non-mortgage charge-offs totaling more than $5,000 must be paid in full prior to or at closing.
For investment properties, individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $1,000 must be paid in full prior to or at closing.
Delinquent credit—including taxes, judgments, charge-offs of non-mortgage accounts (see below for exceptions), tax liens, mechanics’ or materialmen’s liens, and liens that have the potential to affect Fannie Mae’s lien position or diminish the borrower’s equity—must be paid off at or prior to closing.
Delinquent federal income taxes that are approved to be paid by a monthly installment agreement with the IRS must be paid in full at or prior to closing if there is any indication that a Notice of Federal Tax Lien has been recorded against the borrower in the county in which the subject property is located. For additional information about federal income tax installment agreements, see B3-6-05, Monthly Debt Obligations.
For details regarding delinquent federal income taxes that the IRS has approved to be paid through an installment agreement that can be included as a monthly debt obligation, rather than being paid in full, also see B3-6-05, Monthly Debt Obligations.
For manually underwritten loans, collection accounts and charge-offs on non-mortgage accounts do not have to be paid off at or prior to closing if the balance of an individual account is less than $250 or the total balance of all accounts is $1,000 or less. Collection accounts and charge-offs on non-mortgage accounts that exceed these limits do not have to be paid off at or prior to closing, provided the lender can document a strong credit profile, and meaningful financial reserves.
The release includes a new feature notifying users when a credit score is likely to drop within the next month, among other updates
Louisville Kentucky FHA Loans
Student Loan Guidelines for Kentucky Mortgage Loans
FANNIE MAE LOANS IN KENTUCKY
The monthly amount provided on the credit report. If the credit report does not provide a monthly payment, or if the credit report shows $0 as the monthly payment (which may be the case for deferred loans or loans in forbearance), the lender must calculate a qualifying monthly payment using one of the options below: (This is not greater or lessor of, just one of the below.)
• 1% of the outstanding student loan balance, or
• A fully amortizing payment using the documented loan repayment terms
• For student loans associated with an income-driven repayment (IDR) plan, if the payment is $0, this
can be used to qualify the borrower only if the loan is not in deferment
FREDDIE MAC HOME LOANS IN KENTUCKY
Student loans in Repayment:
• Regardless of payment vs balance you can use the payment shown on the bureau
• If the payment shows $0.00 simply use .50% of the loan amount
Student loan in Deferment or forbearance: You can exclude the payment with any of the following:
• Student loan has 10 payments or less
• If the full balance is currently deferred and will continue to be like an employment-related plan.
• The borrower can prove they currently meet the requirements of student forgiveness, cancellation, discharge or employment-contingent repayment plan
Kentucky FHA Home Loans
Regardless of the payment status, the Mortgagee must use either:• The greater of:
o 1 percent of the outstanding balance on the loan;
o or the monthly payment reported on the Borrower’s credit report; or
• Or the actual documented payment provided the payment will fully amortize the loan over its term.
Kentucky VA Home Loans
If deferred for 12 months or more from the VA loan closing, the debt need not be considered in the analysis. If a student loan is in repayment or repayment is scheduled to begin within 12 months of the loan closing date, the monthly payment must be included in the ratio and residual income analysis. Calculate each loan payment using the greater of:
• 5 percent of the outstanding balance divided by 12 months. .42% of the balance.
• Monthly payment from the credit report
If the payment on the credit report is less than the 5% calculation, obtain a written statement from the student loan servicer dated within 60 days of the VA loan closing that reflects the actual loan terms and payment information for each loan. Documented income-based repayments for student loans may be used to calculate the ratio and residual income. However, if the income-based repayment is $0, it must be documented to continue at least 12 months after the loan closing date.
Student Loan Guidelines (Cont.)
Kentucky Rural Housing Loans
Fixed Payment Options – Permanent amortized, fixed payment may be used in the DTI if proof of payment is fixed, the rate is fixed and the repayment term is fixed.
Non-Fixed Payment Option – The GREATER of .50% of the student loan balance or the actual payment reflected on the credit report must be used as the monthly payment.
Payments for deferred loans, Income-Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements that are not fixed cannot be used in the total debt ratio calculation.
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/
FHA Condo Approval Kentucky
This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements for refinances, 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. Joel Lobb and his employer, American Mortgage Solutions is not acting on behalf of or at the direction of HUD/FHA or the Federal Government. Equal Opportunity Lender and Equal Housing Lender.