what does your credit need to be to buy a house in ky?
Category: Credit Reports
American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
The Big Change with the Removal of Tax Liens and Judgments
Believe it or not there is a lot of sarcasm in the title because the change is expected to be minuscule. However, our mortgage professional hot line has been ringing off the hook with our referral sources want to know anywhere from how much the scores will go up, to, if the lending criteria will change to offset the increases. Therefore, let me provide the full scoop so we are all very educated on the subject.
This all went in to effect on July 1st, 2017. As of that day all judgments and tax liens that were existing already or to be added in the future must pass THREE of FOUR of the most detailed, scrutinizing audits known to mankind. The first one makes me shudder; these public records must have your Name! Crazy, right? Next, your SS#! It gets deeper from there, next, your address and yes, finally, even your DOB! Do I live in coocoo land? In what world isn’t this just the basic information one should need to even consider starting to report a tax lien or judgment? And you only need THREE of them, so we can just throw out something trivial like your NAME after all.
In all seriousness, what does this actually equate to when it’s all said and done? It definitely varies from which source has conducted what survey. I’ve researched anywhere from 2% of credit reports being impacted at an average of 15 points to Vantage’s recent release of 6% of reports being impacted with an average of 10 points. Either way, it’s not worth much time thinking about it unless you want to think of the laughable situation that this took forever to pass and the final criteria was the most basic 3/4 things you should possible ever have to begin with in the first place.
In this credit specialist’s opinion which nobody seems to want talk about, I foresee many scores going down due to this! This has to do with credit score card calculations. It’s an advanced subject, but in a nutshell, your score to a degree is based on other people in a similar situation as you, therefore if you are with people with tax liens your score range is within that score card. Remove the lien, BUT don’t fix anything else (which is what this is), now you are with people with no tax liens putting yourself in a more difficult bracket. Call us for a better explanation, it’s certainly more interesting than this Big Change! Most importantly however, this allows us to work religiously on any of your turn downs.
Believe it or not there is a lot of sarcasm in the title because the change is expected…
The most widely used score is the FICO score, the credit score created by Fair Isaac Corporation. Lenders use the FICO Score to help them make billions of credit decisions every day. Fair Isaac calculates the FICO Score based solely on information in consumer credit reports maintained by the credit reporting agencies.
FICO credit scores range from 300 to 850. That FICO Score is calculated by a mathematical equation that evaluates many types of information from your credit report, at that agency. By comparing this information to the patterns in hundreds of thousands of past credit reports, the FICO Score estimates your level of future credit risk.
With the top end of the credit score being 850, anything above about 720 is considered excellent. Some local lenders set 740 as the benchmark for their preferred interest rates. Having a lower credit score DOES NOT mean you will not get a loan. You may qualify BUT your interest rate will be higher than someone with better credit.
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.
Getting a Mortgage Again in Kentucky after a Bankruptcy. Guidelines for FHA, VA, USDA AND CONVENTIONAL LOAN PROGRAMS.
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.
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 loans, FHA loans, USDA 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.
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.
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.
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.
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.
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.
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.
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.
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.
We have options for mortgages after bankruptcy with credit scores of 560 and up. .