Getting a Mortgage loan in Kentucky again after A Chapter 7 or Chapter 13 Bankruptcy.


via Getting a Mortgage loan in Kentucky again after A Chapter 7 or Chapter 13 Bankruptcy.

Bankruptcy Guidelines for Fannie & FHA
Bankruptcy Chapter 7
FHA
  • 2 years from the discharge date for DU approval.   Case number assignment cannot be ordered until wait period has elapsed
  • Manual underwrites are allowed on a refer/eligible DU finding as long as 2 years has elapsed from the discharge date and the borrower has either re-established good credit or chosen not to incur any new credit obligations
  • Exception for 2 year wait period:
  1. An elapsed period less than 2 years but no less than 12 months may be acceptable
  2. The borrower must document the bankruptcy was caused by extenuating circumstances beyond their control such as a serious illness or death of a wage earner
  3. The borrower must document an ability to manage their financial affairs in a responsible manner
  4. Divorce, loss of a job, or inability to sell a home after relocation is not an acceptable extenuating circumstance
Bankruptcy Chapter 13
FHA
  • 2 years from the discharge date for DU approval.   Case number assignment cannot be ordered until wait period has elapsed
  • Manual underwrites are allowed 1 day after discharge date or at least 12 months of the payout period under the bankruptcy has elapsed at the time of case number assignment
  1. Must receive a refer/eligible DU finding
  2. Must have documentation of 12 months satisfactory payment history
  3. Must have written permission from trustee to enter into new mortgage transaction

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
 
 

 

 

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Getting a Mortgage loan in Kentucky again after A Chapter 7 or Chapter 13 Bankruptcy.


via SURRENDERING YOUR HOME IN BANKRUPTCY

Getting a Mortgage Again in Kentucky after a Bankruptcy. Guidelines for FHA, VA, USDA AND CONVENTIONAL LOAN PROGRAMS.

 

mortgage after bk 1

 

 

Chapter 7 Kentucky Bankruptcy Mortgage Questions

How long do I have to wait to get a mortgage after my Chapter 7 Bankruptcy?

While different programs have different waiting periods, we offers some mortgage options as soon as 2 years after a Chapter 7 Bankruptcy for some Portfolio loans and 2 years from discharge for some government loan programs like FHA, VA, and USDA.

What type of loans are available for a Kentucky mortgage after Chapter 7 Bankruptcy?

We offer a wide variety of loan programs specifically tailored to Chapter 7 Bankruptcy borrowers in all kinds of financial situations: conventional loans, Kentucky VA home loansFHA loansUSDA loans, ! While you may not qualify immediately for all the programs we offer, we will present the best available options, with the best terms, and lowest possible bottom line to you. We customize your options based on your personal goals.

 


Chapter 13 Bankruptcy Kentucky Mortgage Questions

 

How long after bankruptcy can I get a Kentucky mortgage as one year into their plan.

What types of Kentucky mortgages are available for clients with a Chapter 13 Bankruptcy?

As a Kentucky Mortgage Broker we offer programs  after bankruptcy, we offer a wide variety of mortgages for Kentucky borrowers in all kinds of financial situations. We proudly offer Conventional mortgagesVA home loansFHA loansUSDA loans,

What is your waiting period for an Kentucky FHA Loan after bankruptcy?

We are able to secure our Kentucky clients with a FHA loan or USDA loan 12 months after being in the plan for 1 year with a perfect pay history from Chapter 13 Bankruptcy.

How long does it take to refinance after Chapter 13 Bankruptcy discharge?

Mortgages after Chapter 13 Bankruptcy can take as little as 30 days to as long as 3 months. We pride ourselves on great communication and efficient service. The most common issues that slow the process down deal with credit, title, property condition and how quickly we receive requested documentation from you. We love to help our customers clear up these issues and put them on a brighter path.

How long does it take to purchase after Chapter 13 Bankruptcy discharge?

Mortgages after Chapter 13 Bankruptcy can take as little as 25 days to as long as 2 months. We pride ourselves on great communication and efficient service. The most common issues that slow the process down are credit problems, problems with the property itself, and how quickly we receive requested documentation from you. We love to help our customers clear up these issues and put them more soundly on a brighter path.

Can I purchase a home if I am still in my Chapter 13 Bankruptcy?

Yes, you can! Purchasing a home during a Chapter 13 Bankruptcy Plan does have extra steps involved though. Your trustee must approve your purchase and you must make all of your first year’s payments on time into your plan before purchasing a home. There are other challenges of obtaining a mortgage during a Chapter 13 Bankruptcy, but we are skilled at presenting a clear plan for success.

Can I refinance my mortgage with Peoples Bank if I am still in my Chapter 13 Bankruptcy?

Yes, you can! Refinancing a home during Chapter 13 Bankruptcy does have extra steps involved though. Your trustee must approve your refinance and you must make your first year’s payments into your plan before refinancing your home. Many borrowers find that waiting until after the 3rd year of on time payments is best for refinances. Some borrowers have also tapped into the equity in their home getting a cash-out refinance to pay off their Chapter 13 Bankruptcy Plan early. We have experienced great success securing trustees’ approval, especially when the refinancing option saves our borrowers a considerable amount of money.

How long does it take to get a mortgage if I am still in my Chapter 13 Bankruptcy Payment Plan?

Can I get a cash-out with my refinance after my Chapter 13 Bankruptcy?

Many clients choose to obtain a cash-out refinance after their Chapter 13 Bankruptcy. Often our clients have not been able to tap into equity in their home during bankruptcy to make home improvements or consolidate high interest rate debts. Our mortgage programs have different limits set on the amount you can take out relative to the value of your home. Don’t hesitate to call to discuss your options.

As a mortgage lender after bankruptcy, does Peoples Bank offer any options if I own my home outright?

We  have options to obtain a mortgage if you own your home outright. Although the wording is unusual, these mortgages are treated like a cash-out refinance. Cash-out options are best after the 3rd year of your Chapter 13 Bankruptcy Plan or as soon as one day after discharge.

Are there loan programs that do not require a large down payment if I had a Chapter 13 Bankruptcy?

we offer low down-payment mortgages after bankruptcy. FHA loans after bankruptcy have low down-payment options and both VA loan programs and USDA loan programs have zero down-payment options after bankruptcy. Your Mortgage Consultant will go over these options with you and determine if you qualify for one of the programs. They will present the very best options for which you qualify.

What credit score is required to obtain a mortgage after bankruptcy?

We have options for mortgages after bankruptcy with credit scores of 560 and up. .

 

Compensating factors may affect the loan decision for a Kentucky VA Mortgage Denial.


via Compensating factors may affect the loan decision for a Kentucky VA Mortgage Denial.

Compensating Factors to over turn a Kentucky VA Loan Mortgage Denial

Compensating factors may affect the loan decision for a Kentucky VA Mortgage.  These factors are especially important when reviewing loans which are marginal with respect to residual income or debt-to-income ratio.  They cannot be used to compensate for unsatisfactory credit.
Valid compensating factors to over turn a Kentucky VA Mortgage loandenial should represent unusual strengths rather than mere satisfaction of basic program requirements.  For example, the fact that an applicant has sufficient assets for closing purposes, or meets the residual income guideline, is not a compensating factor.
Valid compensating factors should logically be able to compensate (to some extent) for the identified weakness in the loan.  For example, significant liquid assets may compensate for a residual income shortfall whereas long-term employment would not.

Compensating factors include, but are not limited to the following:

 

·   excellent credit history,

·   conservative use of consumer credit,

·   minimal consumer debt,

·   long-term employment,

·   significant liquid assets,

·   sizable downpayment,

·   the existence of equity in refinancing loans,

·   little or no increase in shelter expense,

·   military benefits,

·   satisfactory homeownership experience,

·   high residual income,

·   low debt-to-income ratio,

·   tax credits for child care, and

·   tax benefits of home ownership.

If you looking to get approved for a Kentucky VA Mortgage, give us a call today. We can go down to 640 credit scores for VA loans in Kentucky, and the maximum debt to income ratio on some cases can go as high as 50% with the above compensating factors.

Mortgage Borrowers Get Loan Approval With Lower Credit Scores in Kentucky 


Recent studies suggest that home buyers with low credit scores and high debt-to-income ratios may have an easier time qualifying for financing.

Source: Mortgage Borrowers Get Loan Approval With Lower Credit

 

∘ What kind of credit score do I need to qualify for different first time home buyer loans in Kentucky?
Answer. Most lenders will wants a middle credit score of 620 to 640 for KY First Time Home Buyers looking to go no money down. The two most used no money down home loans in Kentucky being USDA Rural Housing and KHC with their down payment assistance will want a 620 to 640 middle score on their programs.
If you have access to 3.5% down payment, you can go FHA and secure a 30 year fixed rate mortgage with some lenders with a 580 credit score. Even though FHA on paper says they will go down to 500 credit score with at least 10% down payment, you will find it hard to get the loan approved because lenders will create overlays to protect their interest and maintain a good standing with FHA and HUD.
Another popular no money down loan is VA. Most VA lenders will want a 620 middle credit score but like FHA, VA on paper says they will go down to a 500 score, but good luck finding a lender for that scenario.
A lot of times if your scores are in the high 500’s or low 600’s range, we can do a rapid rescore and get your scores improved within 30 days.

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

http://www.nmlsconsumeraccess.org/
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 http://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.
 

Text/call:      502-905-3708

fax:            502-327-9119
email:
          kentuckyloan@gmail.com
 
 

Mortgage Borrowers Get Loan Approval With Lower Credit


 

Recent studies suggest that home buyers with low credit scores and high debt-to-income ratios may have an easier time qualifying for financing.

New loans for borrowers with FICO scores reaching as low as the 400s jumped from 21.9 percent in 2009 to 29.7 percent last year, according to the study. FICO scores range from 300 to 850.

From January to March of this year, borrowers who were approved for FHA loans—which offer low down payment options for first-time home buyers—had an average credit score of 672, according to FHA data. During that same period in 2011, the average credit score for an FHA borrower was 701. FHA borrowers also have had higher debt-to-income ratios in recent years. Debt-to-income ratios measure monthly household income against other debt, such as credit cards, auto loans, and personal loans.

Between January and March, about a quarter of FHA borrowers had a DTI of more than 50 percent, FHA data shows. In 2013, only 12.7 percent of FHA borrowers had such a debt load.

 

Source: Mortgage Borrowers Get Loan Approval With Lower Credit

 

 

Joel Lobb Senior  Loan Officer

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3
Louisville, KY 40223
 Fax:     (502) 327-9119
Company ID #1364 | MB73346E
http://www.nmlsconsumeraccess.org/
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.  NMLS#57916 http://www.nmlsconsumeraccess.org/
. 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.

What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan in 2018?


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Four things to know about qualifying and closing a mortgage loan for Kentucky First Time Home Buyers

Kentucky First Time Home Buyers Questions Answered Below:

1.  Do Mortgage Interest Rates Change Daily?

Just like the gas prices at the pump,  mortgage rates can change daily or throughout the day.  Typically mortgage rates are published at 10-11 am daily by most lenders and you can lock up through the close of business which is usually around 6-7 PM.  Mortgage rates can change up or down throughout the day based on various financial, economics, and geopolitical news in the US Financial markets and World markets. Generally speaking, good economic news is bad for rates and vice versa, bad economic news is good for mortgage rates.

The good news is this: Once you find a home and get it under contract, you can lock your mortgage loan rate. Typically it takes about 30-45 days to close a mortgage loan in Kentucky, so the typical lock is for 30-60 days. If rates get better you may be able to negotiate a better rate with your lender, but they usually have to improve by at least 25 basis points (.25) to do that. Not all lenders offer this option. The longer you lock the loan, the greater the costs. It is usually free to lock in a loan for up to 90 days without having to pay a fee.

What a lot of lenders are experiencing now is that some loans don’t close on time for various reasons. You can always extend the lock on the loan but it will costs you usually .125 basis points to do so. If you let the lock expire on the loan, then you have to take worse case pricing on that day when you go to relock. It is usually best to extend the lock on your loan.

 

2. What kind of Credit Score Do I need to qualify?

When applying for a mortgage loan, lenders will pull what they call a “tri-merge” credit report which will show three different fico scores from Transunion, Equifax, and Experian. The lenders will throw out the high and low score and take the “middle score” For example, if you had a 614, 610, and 629 score from the three main credit bureaus, your qualifying score would be 614. Most lenders will want at least two scores. So if you only have one score, you may not qualify. Lenders will have to pull their own credit report and scores so if you had it ran somewhere else or saw it on a website or credit card you may own, it will not matter to the lender, because they have to use their own credit report and scores.
Most lenders will pull your credit report for free nowadays so this should not be a big deal as long as your scores are high enough.
The Secondary Market of Mortgage loans offered by FHA, VA, USDA, Fannie Mae, and KHC all have their minimum fico score requirements and lenders will create overlays in addition to what the Government agencies will accept, so even if on paper FHA says they will go down to 580 or 500 in some cases on fico scores, very few lenders will go below the 620 threshold.
If you have low fico scores it may make sense to check around with different lenders to see what their minimum fico scores are for loans.
The lenders I currently deal with have the following fico cutoffs for credit scores:
FHA–580 minimum score
VA—-580 minimum score
Fannie Mae–620 minimum score
USDA–640 minimum score
KHC with Down Payment Assistance –620 minimum score.
As you can see, 620 is the minimum score with most lenders for a FHA, VA, or Fannie Mae loan, and 640 is required for the no down payment programs offered by USDA for Kentucky for First Time Home Buyers wanting to go no money down.

3. What are the down payment requirements?

 
The most popular programs for Kentucky First Time Home Buyers usually involves one of the following housing programs outlined in bold below:
FHA:

FHA will allow a home buyer to purchase a house with as little as 3.5% down. If your credit scores are low, say 680 and below, a lot of times it makes sense to go FHA because everyone pays the same mortgage insurance premiums no matter what your score is, and the down payment can be gifted to you. Meaning you really don’t have to have any skin into the game when it comes to down payment. They even allow down payment assistance through eligible parties (government grants or non-profits). Lastly, FHA will allow for higher debt to income ratios with sometimes getting loan pre-approvals up to 55% of your total gross monthly income.

Fannie Mae:
Fannie Mae requires just 3% down with their new Home Possible Program, but if you use their traditional mortgage loan, then 5% is the Fannie Mae Standard. Fannie Mae will o down to a 620 score, but if your scores are below 680, I would look seriously at the FHA loan program because Fannie Mae has steep increases to the interest rate and the mortgage insurance premiums if your scores are low.
A couple of good things about Fannie Mae is that you can buy a larger priced home and have a large loan amount due to FHA only allowing most Kentucky Home Buyers a maximum mortgage loan amount of $275-to $287k price range while Fannie Mae will go up to Conforming loan limits of $410k.
Lastly when it comes to mortgage insurance, FHA mortgage insurance premiums are for life of loan while Fannie Mae mortgage insurance premiums drop off when you develop 80% equity position in your house.
But as a tell most people, nobody has a loan for 30 years, and the average mortgage is either refinanced or home sold within the first 5-7 years.
VA Loans- 

VA loans offer eligible Veterans and Active Duty Personnel to buy a home going no money down with no monthly mortgage insurance. This is probably the best no money down loan out there since the rates are traditionally very low on comparison to other government insured mortgages and no monthly mortgage insurance. The VA loan can be used anywhere in the state of Kentucky with the maximum VA loan limit being $417k

USDA Loans- 

USDA loans offer people buying a home in rural areas (typically towns of $20k or less) to buy a home going zero down. You cannot currently own another home and there is household income limits of $75,000 for a household family of four, and up to $99,000 for a household of five or more. You search USDA website for eligible areas and household income limits below at the yellow highlighted link :

KHC or Kentucky Housing-
Kentucky First Time Home Buyers typically use KHC for their down payment assistance. KHC currently offers $4500 to $6000 for down payment assistance and sometimes throughout the year they will offer low mortgage rates on their mortgage revenue bond program. The down payment assistance usually never runs out because you have to pay it back in the form of a second mortgage. It helps a lot of home buyers that want to buy in urban areas that cannot utilizer the USDA program in rural areas. Most of the time the first mortgage is a FHA loan tied with the 2nd mortgage fore down payment assistance.  All KHC programs require a 620 score and rates are locked for 45 days. Max income limits are usually set around $112k for a household with the max loan being $283,000 currently.

 

4. What if I have had a bankruptcy or foreclosure in the past? 

 
FHA and VA are the easiest on previous bankruptcies. FHA and VA both require 2 years removed from the discharge date on a Chapter 7. If you are in the middle of a Chapter 13, FHA will allow for financing with a 12 month clean history payment to the Chapter 13 courts, and with trustee permission.
VA requires 2 years removed from a foreclosure (sheriff sale date of home) and FHA requires 3 years.
USDA requires 3 years removed from both a foreclosure and bankruptcy, but on the foreclosure they do not go off the sale date. This may save you a little time if you had a previous foreclosure.
Fannie Mae (Conventional Loan)
Fannie Mae is by far the strictest. They require 4-7  years out of a foreclosure or bankruptcy
If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.


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

via What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan in 2018?

Credit Scores for Kentucky Mortgages in 2018


via Credit Scores for Kentucky Mortgages21728128_10156505291043998_8057145834609530897_n

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