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.
Louisville Kentucky First Time home Buyers programs including, FHA, VA, KHC, and USDA, Rural Housing Zero Down home loans–Our site is updated daily for Louisville Kentucky first time home buyers with the best programs and rates
Kentucky Housing Corporation Products on FHA, VA, USDA for both Refinance and Purchase Transactions!
Products Offered: Conventional Financing with No MI
97% Financing with No Mortgage Insurance/100% Financing with Down Payment Assistance
680 Minimum Credit Score, Maximum Debt Ratio 45%
Down Payment can be Gifted
96.5% Financing/100% Financing with Down Payment Assistance
640 Minimum Credit Score, Maximum Debt Ratio 45%
Purchase price limit: $243,000
Owner Occupied Transactions Only
One-unit, SFR (attached or detached), new or existing property located in Kentucky.
May own other real estate at closing except with Conventional No MI program
Borrower(s) must qualify with inclusion of the second home or investment property monthly payment.
FHA Transactions Only, Doublewides Only
Affidavit of Conversion of Real Estate is required
An engineer’s certification report is required verifying the property meets the guidelines published in the Permanent Foundations Guide for manufactured housing.
Condominium or PUD’s must follow agency guidelines
For FHA, condominium must be listed on HUD’s website as approved
For Conventional No MI, must be approved by Fannie Mae
KHC website has a condo list. This list must be used to determine if additional interior insurance coverage is required. This does not warrant that the condo is approved by HUD or Kentucky Housing. If condo is not listed, proof of whether the interior coverage is included in the master policy is required. If not, a separate interior policy equal to half of the total loan amount is required
Down Payment Assistance Program
Income Limits must meet secondary market limits
Eligible on new and existing properties
Allowed up to $6,000. Must go maximum LTV allowed on first mortgage amount. The Conventional NO MI program can go to 95% LTV
Terms: 5.50% amortized over 10 years
Income limits must meet Affordable Income Limits. Income limits for the Affordable DAP are determined off of Household Income
Eligible on new and existing properties
Allowed up to $4,500. Must go maximum LTV allowed on first mortgage amount. The Conventional No MI program can go to 95% LTV
I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance.