2016 Kentucky mortgage waiting period for foreclosures and short sales for specific situations
Kentucky Conventional Loans
Foreclosures: 7 years from the foreclosure completion date (some applicants may qualify for a conventional loan only 3 years after with extenuating conditions including wage earner death, illness or job loss)
Short Sale/Deed in Lieu-Short Sale:
7 year with less than 10% down of primary residence
4 years with 10% down on the purchase of a primary residence
4 years with 20% down on the purchase of a primary, secondary or investment property purchase
2 years with extenuating circumstances, only with 20% down
Kentucky FHA Loans
Foreclosures: 3 years from the foreclosure completion date and transferred back to the lender to the credit report date
Short Sale: 3 years from the title transfer date
Kentucky VA Loans
Foreclosure: 2 years from foreclosure completion date and date transferred back to the lender
Short Sale: 2 years from previous sale closed date and new owner transfer date
Kentucky USDA Loans
** If the mortgage debt that was foreclosed, was included in a Bankruptcy – then the KY USDA Home Loan waiting periods after foreclosure “waiting period” of 3 years, starts from the date of the discharge of the Bankruptcy. Because it can take 6 months or more for Banks to process the Foreclosure, and transfer title, this is a tremendous plus.
: 3 years from foreclosure completion date or sheriff sale of home
You will be asked to provide proof of self-employment as well as a 2-year income history to prove your “taxable” earnings.
Part-time income: 1-2 year history of earnings required along with confirmation of employment.
Pension income: 2-year history of earnings via cheque slips and/or bank account statement showing pension deposit.
Disability income: must be long term and confirmed with documentation.
Child Support or Alimony: can be used if the divorce or separation agreement confirms the amount though some lenders will also want to see proof it has been deposited to your bank account for last 3-6 months too
Seasonal Employment: minimum 2 year history of earnings required along with T4s and/or Notice of Assessments and employer confirmation.
Rental income: lease agreements and/or tax returns confirming amount of the rents from rental properties or legal suites.
2 years income tax documentation for part-time, bonus, or overtime to use an two year average.