Tag: housing

Bankruptcy and Getting A Kentucky Mortgage Loan Again for FHA, VA, USDA, and Fannie Mae

Bankruptcy and Getting A Kentucky Mortgage Loan Again for FHA, VA, USDA, and Fannie Mae


via Bankruptcy

Bankruptcy and Mortgage Loans.

Bankruptcy is a status of a person when he cannot repay his debts. Bankruptcy is initiated by the debtor but is imposed by a court order. It is not only the legal status of an insolvent person that is the reason it is not only similar to insolvency. It is applied in broader way to the procedure of formal insolvency. If you are filling the case of bankruptcy then you should be aware of all the things. That what types of bankruptcy you should fill? What is their work? What things are involved?  So you should be aware of everything before filing any type of bankruptcy it is advisable to consult a lawyer. He can judge your condition in a much better way. As the lawyers has the experience of many years and solved many cases of same type.

There are two types of bankruptcy filings:

  • Chapter 7
  • Chapter 13

Chapter 7:

Chapter 7 is a type of bankruptcy which is available for individuals. It is also known as the liquidation or straight bankruptcy. Usually a trustee is appointed by the bankruptcy court who administers the bankruptcy. The key function of the individual who is filling bankruptcy is to keep all the types of household goods and also other things can also be retain with him until the amount is not equal to the amount which he have to take from the other person. In this type of bankruptcy an individual is allowed to keep his car and the other items and also have to pay all the car insurance and the house mortgage. This type of bankruptcy lasts about four to six months. Most of the debt is extinguished at the end of the bankruptcy. The main motive of filling this type of bankruptcy is that the person is trying to free himself from the debts by keeping his house and other things as he does not have the other way to repay. And this is also the advantage because the person can be free from the debts by these types of bankruptcy.

Chapter 13:

Chapter 13 is another type of bankruptcy which is available for individuals. This type of bankruptcy is also to pay the debts but it is different from the chapter 7 as it is not repay through the liquidation of the debtor’s assets. You can keep your assets with you while working out a repayment plan. The bankruptcy court appoints a trustee who works with all i.e. the debtor, the creditor and the court itself. This type of bankruptcy usually lasts up to three to five years. During the repayment process debtor is not allowed to sell any of his assets without permission or cannot take any other debt. But the chapter 13 can be converted to chapter 7 if it is required or depend on the creditor. Read here to get more information about bankruptcy.

 

 
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/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

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.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
 

Text/call:      502-905-3708

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

How to Apply for a Kentucky VA Loan


via How to Apply for a Kentucky VA Loan

 

5 Easy Steps To A Kentucky VA Loan

Apply for a Certificate of Eligibility.

A veteran who doesn’t have a certificate can obtain one easily by making application on VA Form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement, to the local VA office.

Decide on a home you want to buy and sign a purchase agreement.

Order an appraisal from VA. (Usually this is done by the lender).

Most VA regional offices offer a “speed-up” telephone appraisal system. Call the regional VA office for details. See also How To Get a VA Loan.

Apply to a mortgage lender for the loan.

While the appraisal is being done, the lender (mortgage company, savings and loan, bank, etc.) can be gathering credit and income information. If the lender is authorized by VA to do automatic processing, upon receipt of the VA or LAPP appraised valuedetermination, the loan can be approved and closed without waiting for VA’s review of the credit application. For loans that must first be approved by VA, the lender will send the application to the local VA office, which will notify the lender of its decision.

Close the loan and move in.41708199_2217996045114382_5135852507360133120_n

What are the current student loan guidelines for a Kentucky FHA, VA, USDA and Fannie Mae Conventional Mortgage loan.


via What are the current student loan guidelines for a Kentucky FHA, VA, USDA and Fannie Mae Conventional Mortgage loan.

Kentucky VA Home Loans Approval Criteria


via Kentucky VA Home Loans Approval Criteria

Basic Requirements

While VA loans don’t require a down payment and easier qualifying compared to conventional loan programs, there are still basic requirements that lenders must follow. The lender must adhere to the VA issued loan guidelines in order for the loan to be eligible for the VA loan guarantee.
Credit

VA borrowers must exhibit a responsible credit history, documented by a credit report. The credit report will show the credit history of the borrower as well as provide at least two credit scores. The credit score is a three digit number assigned to the level of credit risk associated with the borrower. The higher the credit score, the better the credit. The VA doesn’t establish a minimum credit score requirement but most VA lenders ask for a 620 credit score or better.

If the borrower doesn’t have a credit score or hasn’t established a credit history, some VA lenders allow for a “manual” credit approval. A manual approval means verifying at least three non-traditional forms of credit with a minimum two year history in addition to verification of a timely rent history. Non-traditional credit can be a cell phone bill, utility or cable bill. Note, not all VA lenders offer the manual approval option.
Income

VA lenders must certify the borrower’s ability to repay monthly debt. This is performed by calculating debt-to-income ratios, represented as a percentage of a borrower’s gross monthly income. VA loan requirements ask for a debt ratio to be no greater than 41 percent of gross household income. Although the ratio is not a strict limit, some VA lenders adhere to this number and will only allow a slightly higher ratio of say 42 to 44 if the borrower has an excellent credit history or significant cash reserves.
Occupancy

VA loans are intended for purchasing a primary residence only and cannot be used for investment property.

Why Use a VA Lender?

It’s important to use a VA lender that has been approved by the VA. Some mortgage companies who accept VA loan applications send the VA loan to yet another lender for approval. While VA loans are easier to qualify for, they have their own internal “quirks” that make the approval process a bit different compared to other loan types. Lenders who are not familiar with VA loans may stumble with a VA loan, extending the loan approval process unncesscarily or worse, having the loan declined needlessly.

Approved VA lenders have been fully vetted by the Department of Veteran’s Affairs and must meet strict VA loan experience guidelines and exhibit minimum financial net worth requirements.
LAPP

The Lender Appraisal Processing Program, or LAPP, is a streamlined method of ordering and evaluating a property appraisal. Lenders without this special authority must order the VA appraisal directly from the Department of Veteran’s Affairs, adding unnecessary time to the loan approval.
ACE

VA approved lenders have access to ACE, the Automated Certificate of Eligibility. By providing your VA loan application and authorization forms to your VA approved lender, your certificate of eligibility can be requested and obtained almost instantly by the lender.
Non-Supervised Automatic Authority

This designation allows a VA approved lender to evaluate and approve the entire VA loan package with no VA involvement. This allows a lender to streamline the loan approval process and close loans quickly.

7-Step Process for Getting a VA Loan

1. Get Prequalified Your very first step is getting prequalified. A prequalification is obtained by speaking with a VA-approved lender and reviewing your current financial picture with a loan officer. The loan officer will ask questions about your gross monthly income, current debt and your overall credit profile.

This conversation will tell you how much you may qualify for, what your monthly payments might be and how much money you’ll need to bring to the closing table. Knowing your price range will give you and your real estate agent a starting point when you begin your home search.

2. Gather Your Documentation Now it’s time to start gathering the paperwork necessary to start your VA loan process. You’ll be asked to provide your most recent pay check stubs covering at least 30 days, your two most recent W2 forms and your most recent bank and investment statements. If you’re self-employed, you will need to provide the past two years personal and business income tax returns and a year-to-date profit and loss statement

3. Your Certificate of Eligibility The certificate of eligibility is a document generated by the Department of Veteran’s Affairs validating your eligibility for a VA loan. You can obtain your certificate of eligibility by visiting your nearest regional VA center, mailing in your request or obtaining a copy online. To request your certificate, you’ll need to complete the DOD form 26-1880 and have a copy of your DD-214 as well. Yet the easiest way to obtain your certificate of eligibility is having a VA-approved lender request it for you.

4. Get Pre-approved A pre-approval is an upgrade from a prequalification. A pre-approval is issued after you apply for a VA loan and provide the necessary documentation to your VA lender. Once your credit report is pulled, your application will be reviewed and submitted for an automated approval. The only thing missing at this stage is the property address.

Your lender will then provide you with your pre-approval letter which verifies that you have completed an application and documented your loan and all you need to do next is find a property.

5. Go Shopping Now the fun part begins! Find a real estate agent that is familiar with the VA loan process. VA loans require zero money down but you should also negotiate to have the seller pay your closing costs for you. An experienced real estate agent can help guide you through the negotiations to get the right house at the right price.

Once your offer is accepted, your agent will provide you with a list of property inspectors who will physically inspect your new home from basement to the rooftop highlighting any issues that need to be addressed.

6. Processing and Underwriting The moment your sales contract is signed by you and the seller, the clock begins to tick. Most sales contracts allow for a 30 day closing period but may be adjusted depending upon your agreement with the seller.

Your lender will order a property appraisal to support the sales price as well as obtain a copy of the property’s title report. Your loan is now “in process” and you will work with both your loan officer and loan processor. The processor prepares the file for final underwriting.

The underwriter is the individual that manually reviews your file and supporting documentation to determine that your loan meets the required VA guidelines. Once that determination is made, your loan is forwarded to the closing department.

7. Closing and Funding The closing department prepares your loan documents and sends your loan papers electronically to your settlement agent who will oversee the closing. The settlement agent will prepare an initial settlement statement called the HUD-1. This is a form that accounts for all the charges, deposits and credits associated with your loan closing and itemizes any and all costs for which you’re responsible and tally the final amount needed from you to close

At your closing, you will review, initial and sign your final closing papers and provide the amount needed to close your VA loan. Your settlement agent will follow the closing instructions issued by your lender then forward the signed documents to the funding department.

The “funder” will make sure the settlement agent followed the instructions to the letter then release your funds to the settlement agent. Congratulations, you’re a home owner!

FAQ’s

VA loans are hands-down the preferred choice for those who qualify searching for a competitive loan program with no money down. VA lending guidelines are similar to those with other loan types and are approved and documented in much the same fashion as conventional loans. However, VA loans do have specific requirements that make the program unique and do have additional requirements. Here is a list of some common questions.

Since the VA guarantees my loan, does that mean I’m guaranteed a VA loan?
No, the VA guaranty is to the lender approving your VA loan. As long as the lender approves your loan using established VA guidelines, should the loan ever go into default, the lender can receive compensation of 25 percent of your loan amount. Lenders will still review your income and credit amount other requirements before issuing an approval.

What are “non-allowable” closing costs?
The VA restricts certain closing costs that may be charged to and paid for by the veteran. Your VA lender can provide you with a list of these restricted fees along with other charges that you may be responsible for.

What credit score does the VA require?
Credit scores, a 3-digit number reflecting your current credit profile, are not required by the VA. However, most VA lenders do require a minimum credit score with lenders asking for a score to be at or above 640.

How do I know if I qualify for a VA loan?
VA lenders must review your certificate of eligibility to determine whether or not you’re eligible for a VA loan. However, basic requirements ask that you have more than 180 days of active duty service, an honorably discharged veteran, served six years in the National Guard or Reserves or the spouse of a service member who died as a result of a service-related injury.

What types of loans does the VA offer?
All VA lenders provide loan choices in both fixed rate and adjustable rate loans. Most lenders offer fixed rate terms of 10, 15, 20, 25 and 30 years. Adjustable rate mortgages are typically issued as hybrids, where the initial rate is fixed for a predetermined period before changing into a loan that can adjust annually.

What is a funding fee?
The funding fee is an insurance premium that finances the VA guarantee on your loan and is expressed as a percentage of the amount borrowed. This percentage can vary based upon loan type, equity and other loan characteristics but the funding fee for a first time purchase with no money down is 2.15 percent of the loan. The funding fee may be rolled into the loan amount in lieu of paying out of pocket. Most borrowers choose to roll the fee into the loan.

Do all lenders offer VA loans?
VA loans are typically offered by most lenders but it’s important to work with a lender that is an approved VA lender. An approved VA lender is authorized to process, underwrite and fund a VA loan. It’s important that you work with a lender with extensive VA experience to help you navigate your way through the VA approval process.

Can I use a VA loan more than once?
Yes, you can use a VA loan more than once as long as your original entitlement is restored. Your entitlement is restored when you sell your house and pay off the existing VA home loan.

What is my entitlement?
The entitlement issued today is $36,000 and the VA will guarantee a loan up to four times that amount, or $144,000. For loans above that, the VA guarantee will be 25 percent of the loan amount up to $417,000. In certain “high cost” areas, the guarantee and maximum loan amounts are greater.

 

2013 First Time Home Buyer Mortgage Loans in Louisville Kentucky


To get a First time home buyer loan in Louisville Kentucky in 2013, you will need to look at these following three first time home buyer loans program in Louisville.

Louisville Ky First Time Home Buyer Loan

1. Louisville KY FHA Loan Program-This program allows for 3.5% down payment and low 30  30 year fixed rate loans currently. The minimum credit score for a Louisville KY FHA loan with us is 640. You have three scores, and we take the middle credit score.

The down payment can be saved or gifted from a family member, or borrowed from a 401k loan . The 3.5% down payment cannot be borrowed from a lending instiution or off a credit card.

The current debt to income ratios for a Louisville KY FHA loan is 31% and 43%. This means  that your current house payment, with taxes and insurance included, cannot be more than 31% of your gross monthly income. The 43% means the new house payment and total debts on credit report along with child support or 401k loans.

For example if you made 4k gross a month, the maximum house payment would be $1240 piti, and the maximum total bills outstanding each month, including new house payment would be $1720.00

There are some compensating factors that will allow for a higher house payment if you have  good credit scores (740 score or higher) and a large down payment. (more than the minimum 3.5% down payment)

If you have had a bankruptcy or foreclosure in the past, you will have to need be out of the  bankruptcy for at least 2 years with good reestablished credit and a foreclosure must be 3 years from the when the masters commissioners deed was filed at courthouse.

2. Fannie Mae Loan Program -This requires 5% down, and it must be from your own saved funds, no gifted funds from family members. The 30 year fixed rate is a little higher than the FHA loan, but the mortgage insurance is much cheaper. If you have a credit score of 740 or higher, and can put down the 5%, this is better program for you due to lower monthly payments and less upfront and monthly mortgage insurance.

Most lenders will want a 680 credit score, with less than 20% down, and the seasoning for foreclosures and bankruptcies are much tougher than the FHA loan program.

Fannie Mae will require 5 years or more on a foreclosure, and 4 years on a bankruptcy.

The debt to income ratios are a little tougher too, with them being at 35% and 45% respectively.

3. Louisvile Kentucky VA Loan Program -This requires no down payment, but you must be a qualified veteran or active duty military to participate in the program. The current minimum credit score is 620, with no bankruptcies or foreclosures in the last 2 years.

The maximum debt to income ratio is usually set at 41%, but can go higher with compensating factors, such as over 740 credit score, large down payment, or high residual income. The residual income is set by each region, and you can clink the link below for more info about this .http://kentuckyvaloan.com

 502 905 3708
kentuckyloan@gmail.com
NMLS #57916
Jo