How long do you have to wait to get approved for a mortgage loan after a bankruptcy in Kentucky?

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Qualifying For A Kentucky Mortgage After Bankruptcy

Home Buyers can qualify for a Kentucky mortgage after bankruptcy:

  • 2 year waiting period to qualify for FHA Loan to qualify for a FHA Loans after discharge of Chapter 7.
  • One year into a Chapter 7 Bankruptcy to qualify for a Chapter Loan into a Chapter 13 Bankruptcy repayment plan.
  • No waiting period after a Chapter 13 Bankruptcy discharge date.
  • 4 year waiting period to qualify for a Chapter 7 Bankruptcy discharge date to qualify for a Conventional Loan.
  • Two year waiting period to qualify for a Chapter 13 after Chatper 13 discharged date to qualify for a Conventional Loan.
  • Four year waiting period to qualify for a Conventional Loan if you had a mortgage part of bankruptcy but the foreclosure needs to be be finalized

 

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/
 

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 view of my employer. Not all products or services mentioned on this site may fit all people. Mortgage loans only offered in Kentucky.
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Kentucky FHA Loan Limits for 2017

Kentucky FHA Loan Limits for 2017
FHA has announced new loan limits for 2017. For all FHA loans with Case Numbers assigned on or after January 1st, the following will be effective
  • The minimum national loan limit is being increased to$275,655. No county will have a maximum loan limit lower than this number.
  • Individual County loan limits can be located here. There were no counties where the loan limit decreased. There were a few where the limit did not change, but the vast majority of counties saw some increase.
  • FHA High Balance maximum loan limits have increased to coincide with the new FNMA maximum loan limits previously announced.
As of now, FHA high balance pricing will still apply to loans above the previous FNMA loan limit floor. That is, the High Balance FHA Loan Program policy will continue to apply to base loan amounts GREATER than:
* $417,000 for one-unit property
* $533,850 for two-unit property
* $645,300 for three-unit property
* $801,950 for four-unit property
However we will continue to monitor the market and make an announcement if/when these values are updated to coincide with the new FNMA loan limit floor values.

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Kentucky FHA Lending Limits

2017 Kentucky FHA limits include the following cities of  Fort Thomas, Erlanger, Florence, Ashland, Frankfort, Lexington, Richmond, Somerset Elizabethtown, Louisville, Owensboro, Hopkinsville, Fort Campbell North, Mayfield, Paducah, Madisonville, Henderson, Radcliff, Fort Knox, Georgetown, London, Bowling Green, E-town, Shepherdsville, Mount Washington, Lagrange, Shelbyville, Independence,  Hodgenville, Brandenburg, Morehead, Danville, Versailles, Lawrenceburg, Simpsonville, Winchester, Williamstown, Pikeville, Munfordville, Prospect, Crestwood, St. Matthews, Highlands,

 

Mortgage maximums as of Tuesday November 29, 2016
(120 records were selected, records 1 through 50 displayed)

MSA Name MSA Code Division County Name County
Code
State One-Family Two-Family Three-Family Four-Family Median Sale Price Last Revised Limit Year
NON-METRO 99999   ADAIR 001 KY $275,665 $352,950 $426,625 $530,150 $55,000 01/01/2017 CY2017
BOWLING GREEN, KY 14540   ALLEN 003 KY $275,665 $352,950 $426,625 $530,150 $150,000 01/01/2017 CY2017
FRANKFORT, KY 23180   ANDERSON 005 KY $275,665 $352,950 $426,625 $530,150 $115,000 01/01/2017 CY2017
PADUCAH, KY-IL 37140   BALLARD 007 KY $275,665 $352,950 $426,625 $530,150 $122,000 01/01/2017 CY2017
GLASGOW, KY 23980   BARREN 009 KY $275,665 $352,950 $426,625 $530,150 $79,000 01/01/2017 CY2017
MOUNT STERLING, KY 34460   BATH 011 KY $275,665 $352,950 $426,625 $530,150 $102,000 01/01/2017 CY2017
MIDDLESBOROUGH, KY 33180   BELL 013 KY $275,665 $352,950 $426,625 $530,150 $66,000 01/01/2017 CY2017
CINCINNATI, OH-KY-IN 17140   BOONE 015 KY $275,665 $352,950 $426,625 $530,150 $214,000 01/01/2017 CY2017
LEXINGTON-FAYETTE, KY 30460   BOURBON 017 KY $275,665 $352,950 $426,625 $530,150 $171,000 01/01/2017 CY2017
HUNTINGTON-ASHLAND, WV-KY-OH 26580   BOYD 019 KY $275,665 $352,950 $426,625 $530,150 $170,000 01/01/2017 CY2017
DANVILLE, KY 19220   BOYLE 021 KY $275,665 $352,950 $426,625 $530,150 $145,000 01/01/2017 CY2017
CINCINNATI, OH-KY-IN 17140   BRACKEN 023 KY $275,665 $352,950 $426,625 $530,150 $214,000 01/01/2017 CY2017
NON-METRO 99999   BREATHITT 025 KY $275,665 $352,950 $426,625 $530,150 $52,000 01/01/2017 CY2017
NON-METRO 99999   BRECKINRIDGE 027 KY $275,665 $352,950 $426,625 $530,150 $60,000 01/01/2017 CY2017
LOUISVILLE/JEFFERSON , KY-IN 31140   BULLITT 029 KY $299,000 $382,750 $462,650 $575,000 $260,000 01/01/2017 CY2017
BOWLING GREEN, KY 14540   BUTLER 031 KY $275,665 $352,950 $426,625 $530,150 $150,000 01/01/2017 CY2017
NON-METRO 99999   CALDWELL 033 KY $275,665 $352,950 $426,625 $530,150 $63,000 01/01/2017 CY2017
MURRAY, KY 34660   CALLOWAY 035 KY $275,665 $352,950 $426,625 $530,150 $115,000 01/01/2017 CY2017
CINCINNATI, OH-KY-IN 17140   CAMPBELL 037 KY $275,665 $352,950 $426,625 $530,150 $214,000 01/01/2017 CY2017
NON-METRO 99999   CARLISLE 039 KY $275,665 $352,950 $426,625 $530,150 $74,000 01/01/2017 CY2017
NON-METRO 99999   CARROLL 041 KY $275,665 $352,950 $426,625 $530,150 $104,000 01/01/2017 CY2017
NON-METRO 99999   CARTER 043 KY $275,665 $352,950 $426,625 $530,150 $67,000 01/01/2017 CY2017
NON-METRO 99999   CASEY 045 KY $275,665 $352,950 $426,625 $530,150 $73,000 01/01/2017 CY2017
CLARKSVILLE, TN-KY 17300   CHRISTIAN 047 KY $275,665 $352,950 $426,625 $530,150 $158,000 01/01/2017 CY2017
LEXINGTON-FAYETTE, KY 30460   CLARK 049 KY $275,665 $352,950 $426,625 $530,150 $171,000 01/01/2017 CY2017
NON-METRO 99999   CLAY 051 KY $275,665 $352,950 $426,625 $530,150 $25,000 01/01/2017 CY2017
NON-METRO 99999   CLINTON 053 KY $275,665 $352,950 $426,625 $530,150 $37,000 01/01/2017 CY2017
NON-METRO 99999   CRITTENDEN 055 KY $275,665 $352,950 $426,625 $530,150 $58,000 01/01/2017 CY2017
NON-METRO 99999   CUMBERLAND 057 KY $275,665 $352,950 $426,625 $530,150 $66,000 01/01/2017 CY2017
OWENSBORO, KY 36980   DAVIESS 059 KY $275,665 $352,950 $426,625 $530,150 $112,000 01/01/2017 CY2017
BOWLING GREEN, KY 14540   EDMONSON 061 KY $275,665 $352,950 $426,625 $530,150 $150,000 01/01/2017 CY2017
NON-METRO 99999   ELLIOTT 063 KY $275,665 $352,950 $426,625 $530,150 $62,000 01/01/2017 CY2017
NON-METRO 99999   ESTILL 065 KY $275,665 $352,950 $426,625 $530,150 $52,000 01/01/2017 CY2017
LEXINGTON-FAYETTE, KY 30460   FAYETTE 067 KY $275,665 $352,950 $426,625 $530,150 $171,000 01/01/2017 CY2017
NON-METRO 99999   FLEMING 069 KY $275,665 $352,950 $426,625 $530,150 $60,000 01/01/2017 CY2017
NON-METRO 99999   FLOYD 071 KY $275,665 $352,950 $426,625 $530,150 $110,000 01/01/2017 CY2017
FRANKFORT, KY 23180   FRANKLIN 073 KY $275,665 $352,950 $426,625 $530,150 $115,000 01/01/2017 CY2017
UNION CITY, TN-KY 46460   FULTON 075 KY $275,665 $352,950 $426,625 $530,150 $63,000 01/01/2017 CY2017
CINCINNATI, OH-KY-IN 17140   GALLATIN 077 KY $275,665 $352,950 $426,625 $530,150 $214,000 01/01/2017 CY2017
NON-METRO 99999   GARRARD 079 KY $275,665 $352,950 $426,625 $530,150 $106,000 01/01/2017 CY2017
CINCINNATI, OH-KY-IN 17140   GRANT 081 KY $275,665 $352,950 $426,625 $530,150 $214,000 01/01/2017 CY2017
MAYFIELD, KY 32460   GRAVES 083 KY $275,665 $352,950 $426,625 $530,150 $68,000 01/01/2017 CY2017
NON-METRO 99999   GRAYSON 085 KY $275,665 $352,950 $426,625 $530,150 $39,000 01/01/2017 CY2017
NON-METRO 99999   GREEN 087 KY $275,665 $352,950 $426,625 $530,150 $58,000 01/01/2017 CY2017
HUNTINGTON-ASHLAND, WV-KY-OH 26580   GREENUP 089 KY $275,665 $352,950 $426,625 $530,150 $170,000 01/01/2017 CY2017
OWENSBORO, KY 36980   HANCOCK 091 KY $275,665 $352,950 $426,625 $530,150 $112,000 01/01/2017 CY2017
ELIZABETHTOWN-FORT KNOX, KY 21060   HARDIN 093 KY $275,665 $352,950 $426,625 $530,150 $130,000 01/01/2017 CY2017
NON-METRO 99999   HARLAN 095 KY $275,665 $352,950 $426,625 $530,150 $53,000 01/01/2017 CY2017
NON-METRO 99999   HARRISON 097 KY $275,665 $352,950 $426,625 $530,150 $71,000 01/01/2017 CY2017
NON-METRO 99999   HART 099 KY $275,665 $352,950 $426,625 $530,150 $77,000 01/01/2017 CY2017

Selection criteria

Sorted by: County
State: KY
County:
County Code:
MSA Name:
MSA Code:
Limit Type: FHA Forward
Limit Year: CY2017
Last Revised:

The CY2017 basic standard mortgage limits for FHA insured loans are:
One-family Two-family Three-family Four-family
FHA Forward $275,665.00 $352,950.00 $426,625.00 $530,150.00
HECM $636,150.00
Fannie/Freddie $424,100.00 $543,000.00 $656,350.00 $815,650.00

Mortgage maximums as of Tuesday November 29, 2016
(120 records were selected, records 51 through 100 displayed)

MSA Name MSA Code Division County Name County
Code
State One-Family Two-Family Three-Family Four-Family Median Sale Price Last Revised Limit Year
EVANSVILLE, IN-KY 21780   HENDERSON 101 KY $275,665 $352,950 $426,625 $530,150 $176,000 01/01/2017 CY2017
LOUISVILLE/JEFFERSON , KY-IN 31140   HENRY 103 KY $299,000 $382,750 $462,650 $575,000 $260,000 01/01/2017 CY2017
NON-METRO 99999   HICKMAN 105 KY $275,665 $352,950 $426,625 $530,150 $68,000 01/01/2017 CY2017
MADISONVILLE, KY 31580   HOPKINS 107 KY $275,665 $352,950 $426,625 $530,150 $80,000 01/01/2017 CY2017
NON-METRO 99999   JACKSON 109 KY $275,665 $352,950 $426,625 $530,150 $55,000 01/01/2017 CY2017
LOUISVILLE/JEFFERSON , KY-IN 31140   JEFFERSON 111 KY $299,000 $382,750 $462,650 $575,000 $260,000 01/01/2017 CY2017
LEXINGTON-FAYETTE, KY 30460   JESSAMINE 113 KY $275,665 $352,950 $426,625 $530,150 $171,000 01/01/2017 CY2017
NON-METRO 99999   JOHNSON 115 KY $275,665 $352,950 $426,625 $530,150 $93,000 01/01/2017 CY2017
CINCINNATI, OH-KY-IN 17140   KENTON 117 KY $275,665 $352,950 $426,625 $530,150 $214,000 01/01/2017 CY2017
NON-METRO 99999   KNOTT 119 KY $275,665 $352,950 $426,625 $530,150 $39,000 01/01/2017 CY2017
LONDON, KY 30940   KNOX 121 KY $275,665 $352,950 $426,625 $530,150 $98,000 01/01/2017 CY2017
ELIZABETHTOWN-FORT KNOX, KY 21060   LARUE 123 KY $275,665 $352,950 $426,625 $530,150 $130,000 01/01/2017 CY2017
LONDON, KY 30940   LAUREL 125 KY $275,665 $352,950 $426,625 $530,150 $98,000 01/01/2017 CY2017
NON-METRO 99999   LAWRENCE 127 KY $275,665 $352,950 $426,625 $530,150 $89,000 01/01/2017 CY2017
NON-METRO 99999   LEE 129 KY $275,665 $352,950 $426,625 $530,150 $18,000 01/01/2017 CY2017
NON-METRO 99999   LESLIE 131 KY $275,665 $352,950 $426,625 $530,150 $49,000 01/01/2017 CY2017
NON-METRO 99999   LETCHER 133 KY $275,665 $352,950 $426,625 $530,150 $21,000 01/01/2017 CY2017
NON-METRO 99999   LEWIS 135 KY $275,665 $352,950 $426,625 $530,150 $42,000 11/29/2016 CY2017
DANVILLE, KY 19220   LINCOLN 137 KY $275,665 $352,950 $426,625 $530,150 $145,000 01/01/2017 CY2017
PADUCAH, KY-IL 37140   LIVINGSTON 139 KY $275,665 $352,950 $426,625 $530,150 $122,000 01/01/2017 CY2017
NON-METRO 99999   LOGAN 141 KY $275,665 $352,950 $426,625 $530,150 $96,000 01/01/2017 CY2017
NON-METRO 99999   LYON 143 KY $275,665 $352,950 $426,625 $530,150 $103,000 01/01/2017 CY2017
RICHMOND-BEREA, KY 40080   MADISON 151 KY $275,665 $352,950 $426,625 $530,150 $140,000 01/01/2017 CY2017
NON-METRO 99999   MAGOFFIN 153 KY $275,665 $352,950 $426,625 $530,150 $39,000 01/01/2017 CY2017
NON-METRO 99999   MARION 155 KY $275,665 $352,950 $426,625 $530,150 $80,000 01/01/2017 CY2017
NON-METRO 99999   MARSHALL 157 KY $275,665 $352,950 $426,625 $530,150 $108,000 01/01/2017 CY2017
NON-METRO 99999   MARTIN 159 KY $275,665 $352,950 $426,625 $530,150 $83,000 01/01/2017 CY2017
MAYSVILLE, KY 32500   MASON 161 KY $275,665 $352,950 $426,625 $530,150 $67,000 01/01/2017 CY2017
PADUCAH, KY-IL 37140   MCCRACKEN 145 KY $275,665 $352,950 $426,625 $530,150 $122,000 01/01/2017 CY2017
NON-METRO 99999   MCCREARY 147 KY $275,665 $352,950 $426,625 $530,150 $67,000 01/01/2017 CY2017
OWENSBORO, KY 36980   MCLEAN 149 KY $275,665 $352,950 $426,625 $530,150 $112,000 01/01/2017 CY2017
ELIZABETHTOWN-FORT KNOX, KY 21060   MEADE 163 KY $275,665 $352,950 $426,625 $530,150 $130,000 01/01/2017 CY2017
MOUNT STERLING, KY 34460   MENIFEE 165 KY $275,665 $352,950 $426,625 $530,150 $102,000 01/01/2017 CY2017
NON-METRO 99999   MERCER 167 KY $275,665 $352,950 $426,625 $530,150 $98,000 01/01/2017 CY2017
GLASGOW, KY 23980   METCALFE 169 KY $275,665 $352,950 $426,625 $530,150 $79,000 01/01/2017 CY2017
NON-METRO 99999   MONROE 171 KY $275,665 $352,950 $426,625 $530,150 $76,000 01/01/2017 CY2017
MOUNT STERLING, KY 34460   MONTGOMERY 173 KY $275,665 $352,950 $426,625 $530,150 $102,000 01/01/2017 CY2017
NON-METRO 99999   MORGAN 175 KY $275,665 $352,950 $426,625 $530,150 $18,000 01/01/2017 CY2017
NON-METRO 99999   MUHLENBERG 177 KY $275,665 $352,950 $426,625 $530,150 $68,000 11/29/2016 CY2017
BARDSTOWN, KY 12680   NELSON 179 KY $275,665 $352,950 $426,625 $530,150 $125,000 11/29/2016 CY2017
NON-METRO 99999   NICHOLAS 181 KY $275,665 $352,950 $426,625 $530,150 $88,000 01/01/2017 CY2017
NON-METRO 99999   OHIO 183 KY $275,665 $352,950 $426,625 $530,150 $86,000 01/01/2017 CY2017
LOUISVILLE/JEFFERSON , KY-IN 31140   OLDHAM 185 KY $299,000 $382,750 $462,650 $575,000 $260,000 01/01/2017 CY2017
NON-METRO 99999   OWEN 187 KY $275,665 $352,950 $426,625 $530,150 $79,000 01/01/2017 CY2017
NON-METRO 99999   OWSLEY 189 KY $275,665 $352,950 $426,625 $530,150 $82,000 01/01/2017 CY2017
CINCINNATI, OH-KY-IN 17140   PENDLETON 191 KY $275,665 $352,950 $426,625 $530,150 $214,000 01/01/2017 CY2017
NON-METRO 99999   PERRY 193 KY $275,665 $352,950 $426,625 $530,150 $73,000 01/01/2017 CY2017
NON-METRO 99999   PIKE 195 KY $275,665 $352,950 $426,625 $530,150 $92,000 01/01/2017 CY2017
NON-METRO 99999   POWELL 197 KY $275,665 $352,950 $426,625 $530,150 $49,000 01/01/2017 CY2017
SOMERSET, KY 43700   PULASKI 199 KY $275,665 $352,950 $426,625 $530,150 $65,000 01/01/2017 CY2017

 

MSA Name MSA Code Division County Name County
Code
State One-Family Two-Family Three-Family Four-Family Median Sale Price Last Revised Limit Year
NON-METRO 99999   ROBERTSON 201 KY $275,665 $352,950 $426,625 $530,150 $95,000 01/01/2017 CY2017
RICHMOND-BEREA, KY 40080   ROCKCASTLE 203 KY $275,665 $352,950 $426,625 $530,150 $140,000 01/01/2017 CY2017
NON-METRO 99999   ROWAN 205 KY $275,665 $352,950 $426,625 $530,150 $105,000 01/01/2017 CY2017
NON-METRO 99999   RUSSELL 207 KY $275,665 $352,950 $426,625 $530,150 $63,000 01/01/2017 CY2017
LEXINGTON-FAYETTE, KY 30460   SCOTT 209 KY $275,665 $352,950 $426,625 $530,150 $171,000 01/01/2017 CY2017
LOUISVILLE/JEFFERSON , KY-IN 31140   SHELBY 211 KY $299,000 $382,750 $462,650 $575,000 $260,000 01/01/2017 CY2017
NON-METRO 99999   SIMPSON 213 KY $275,665 $352,950 $426,625 $530,150 $82,000 01/01/2017 CY2017
LOUISVILLE/JEFFERSON , KY-IN 31140   SPENCER 215 KY $299,000 $382,750 $462,650 $575,000 $260,000 01/01/2017 CY2017
CAMPBELLSVILLE, KY 15820   TAYLOR 217 KY $275,665 $352,950 $426,625 $530,150 $90,000 01/01/2017 CY2017
NON-METRO 99999   TODD 219 KY $275,665 $352,950 $426,625 $530,150 $64,000 01/01/2017 CY2017
CLARKSVILLE, TN-KY 17300   TRIGG 221 KY $275,665 $352,950 $426,625 $530,150 $158,000 01/01/2017 CY2017
LOUISVILLE/JEFFERSON , KY-IN 31140   TRIMBLE 223 KY $299,000 $382,750 $462,650 $575,000 $260,000 01/01/2017 CY2017
NON-METRO 99999   UNION 225 KY $275,665 $352,950 $426,625 $530,150 $43,000 01/01/2017 CY2017
BOWLING GREEN, KY 14540   WARREN 227 KY $275,665 $352,950 $426,625 $530,150 $150,000 01/01/2017 CY2017
NON-METRO 99999   WASHINGTON 229 KY $275,665 $352,950 $426,625 $530,150 $127,000 01/01/2017 CY2017
NON-METRO 99999   WAYNE 231 KY $275,665 $352,950 $426,625 $530,150 $60,000 01/01/2017 CY2017
NON-METRO 99999   WEBSTER 233 KY $275,665 $352,950 $426,625 $530,150 $46,000 11/29/2016 CY2017
LONDON, KY 30940   WHITLEY 235 KY $275,665 $352,950 $426,625 $530,150 $98,000 01/01/2017 CY2017
NON-METRO 99999   WOLFE 237 KY $275,665 $352,950 $426,625 $530,150 $63,000 01/01/2017 CY2017
LEXINGTON-FAYETTE, KY 30460   WOODFORD 239 KY $275,665 $352,950 $426,625 $530,150 $171,000 01/01/2017 CY2017

Kentucky FHA Loan Requirements For Loan Approval.

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FHA Handbook 4000.1 Updates

Administration (FHA) Single Family Housing Policy Handbook 4000.1. These updates are effective September 30, 2016 and

 Clarification that an Upfront Mortgage Insurance Premium (UFMIP) refund calculation applies even if original UFMIP was
not financed.
 Mortgage Debt Not Included in Credit Report: Clarification that a manual downgrade is not required when there is no history of late payments, as detailed below.
o Not currently delinquent; and
o No 30 day late payments within 12 months of the case number assignment date; and
o No more than 2 x 30 day late payments within 24 months of the case number assignment date.
 A link has been added in the FHA Product Description from Mortgage Payment History requirements to “Credit History
Requirements for Manually Underwritten Loans.”
Appliances that add contributory value must be operable.
 Mechanical components and utilities: The appraiser must report the utility, safety, and capacity of the mechanical systems.
The appraiser must observe and operate all applicable mechanical systems and utilities. In conjunction with this guidance,
existing FHA Handbook guidance on the following topics will be added:
o Electrical System
o Heating and Cooling
o Plumbing
o Utilities

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
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What are the 2014 Kentucky FHA Guidelines for credit scores, down payments, cash out, and mortgage insurance requirements for a FHA Mortgage loan?

Kentucky FHA Program guidelines have been updated as follows:

For a Kentucky FHA Purchase Loan, we can go down to a 600 credit score with the minimum down payment of 3.5%.  No bankruptcies or foreclosures in the last 2 years.

If you are getting cash out, then the max loan to value or equity position is limited to 85% of the homes value. For example, if you had a home that was valued at $100,000, then the max loan for a FHA Cash Out in Kentucky would be $85,000.00. You still have to may mortgage insurance for life of loan so think carefully about using FHA for a cashout refinance.

The maximum debt to income ratios will be set by the AUS when we run it, but for a refer, it will be limited to 31% and 43% respectively. For example, if you make $3000 a month gross income, the max house payment would be $930.00 piti, and the maximum monthly payments including the new house payment would be $1290.00. So in the above example, the most you could have left in monthly bills listed on the credit report would be $360.00–If you had child support this would count in the dti calculation on the backend ratio of 43%

The seller can pay up to 6% of the buyer’s closing costs and prepaids (property taxes, home insurance for 1st years escrows) of the sales price. So, if you purchased a home for $100,000.00, the seller could give you a concession at closing to pay your closing costs and prepaids. A lot of Kentucky First Time homebuyers use this to limit their cash to close.

The minimum down payment of 3.5% for Kentucky FHA Loans can come from a family member in the form of a gift, or can be borrowed from a 401k, retirement account, or secured asset like a car.

• Seller must own the property a minimum of 90 days prior to the contract date.

FHA loans do not require a termite or home inspection, but they do require a HUD appraisal by a FHA approved Appraiser.

The following changes are effective for all Kentucky  FHA case numbers assigned on or after June 3, 2013: FHA is changing the duration for the collection of MIP
o For all mortgages with an original principal LTV of 90% or less, regardless of loan term, the annual MIP will be assessed for 11 years.
o For all mortgages with an original principal LTV greater than 90%, regardless of loan term, the annual MIP will be assessed for the entire life of the loan.

Loans of 15 year terms or less with LTV 78% or less will pay an MIP amount of 45 bps.

FHA Streamlines Prior to June 2009
FHA Streamlines with case numbers dated June 11, 2012 or later will have new MIP rules applied. If the loan being refinanced was endorsed on or before May 31, 2009, the new Streamline will receive a flat annual MIP of 55 basis points, regardless of loan amount, and the UFMIP ratio will decrease to 0.01% of the base loan amount.

 

 

2014 Kentucky FHA Loan Guidelines for Credit, Down payment, income,

Senior Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com

Company ID #1364 | MB73346
http://mylouisvillekentuckymortgage.com/

 

FHA loans are secured through the FHA, or Federal Housing Administration
FHA loans are secured through the FHA, or Federal Housing Administration

Kentucky FHA loans have new guidelines for collections, judgements, and disputed accounts on credit report.

Kentucky FHA loans have new guidelines for collections, judgements, and disputed accounts on credit report. 

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I. ML 2013-25 (and 2013-24) – Collections, Judgments and Disputed Accounts
This guidance amends the TOTAL Scorecard User Guide (FHA’s guide for
using AUS) and is effective for all case numbers assigned on or after October
15, 2013. It applies to all FHA loans with the exception of non-credit
qualifying streamline refinance transactions.
A. FHA does not necessarily require collection accounts to be paid off for
approval, but it is recognized that collection efforts by the creditor could
affect the borrower’s ability to repay the mortgage. To that end, FHA is
requiring lenders to follow these guidelines when collection accounts are
present with an aggregate balance equal to or greater than $2000. When
the loan is rated approve/eligible or accept/accept by TOTAL:
1. If the cumulative outstanding balance of all collections is LESS than
$2000, then no further consideration is required.
2. If the cumulative outstanding balance of all collections of ALL
borrowers is equal to or greater than $2000 the lender must include
monthly payments in the borrower’s debt to income ratio for accounts
that will remain open after closing. This means that you will need to
document payment arrangements with the creditor and count the
payment or use 5% of the outstanding balance.
Note 1: Collections accounts of a non-purchasing spouse in a community
property state are included in the cumulative balance.
Note 2: Medical collections and charge offs are excluded from this
guidance.B. Judgments – Loans for borrowers with outstanding judgments are
generally not acceptable unless the following documentation is obtained.
a. Judgment must be on the credit report that is linked to the TOTAL
Scorecard findings and the findings must be “approve/eligible” or
“accept/accept.”
b. If the judgment will not be paid off and released prior to the
closing, evidence of a payment agreement may be considered. The
payment agreement must be in writing and provided at the time of
underwriting. Crescent will require evidence that 12 months
satisfactory payments have been made as scheduled. Borrowers
may not pre-pay scheduled payments in order to meet this
requirement. The monthly payment must be considered in the
borrower’s debt-to-income ratio for qualifying.
c. Any judgments that are discovered in the processing of the loan
that ARE NOT on the credit report linked to the TOTAL findings
require the loan to be manually downgraded to “refer” status.
Crescent does not approve loans that must be manually
downgraded.
d. A subordination agreement will be required for any judgment that
is also a lien against the borrower and/or the subject property.
C. Disputed Accounts – Because disputed accounts are not generally
considered in the borrower’s credit report FHA will now require loans of
borrowers who have derogatory disputed accounts with cumulative
balances of $1000 or more (excluding medical) to be downgraded to
“refer” findings and manually underwritten. As you are aware, Crescent
does not approve loans that require manual underwriting.
NOTE 1: Disputed derogatory credit account of a non-purchasing spouse
in a community property state are not included in the cumulative balance
for purposes of determining if the mortgage application must be
downgraded to a “refer.”
NOTE 2: Disputed medical collections are excluded from the $1000 limit
as are derogatory credit accounts resulting from identity theft, credit theft
unauthorized use, etc. However, documentation must be provided to
conclusively support the disputed status. Documentation might entail
police reports, letters from the creditor, etc.
II. ML 2013-26 – Back to Work-Extenuating Circumstances
The guidance provided in ML 13-26 requires loans to be manually
underwritten. For this reason Crescent cannot approve loans that need these
credit underwriting leniencies. III. ML 2013-29 – Application of Unused Funds from Escrow Account on
Refinance Transactions
This guidance is effective with case numbers assigned on or after November
1, 2013.
A. Unused funds from an escrow account that are not sent directly to the
borrower must be used for a purpose authorized by the borrower.
B. If the current servicer nets the escrow balance out of the payoff, it does not
change the way the new loan amount is calculated. You must still start
with the unpaid principal balance on the current loan, NOT the payoff
amount.
C. When the borrower has determined that they want the unused funds to be
applied to costs associated with the new FHA loan the lender is required
to:
a. Obtain a written authorization from the borrower to apply the funds
from an existing mortgage for any purpose prior to using them. The
borrower’s written authorization must clearly state the purpose for
which the authorization is provided.
b. The credit must show on the HUD-1 when the funds are applied to
settlement charges or to the new escrow account.
IV. Reminder: Loan officers are not to sign the initial 92900a (addendum to the
loan application for sponsored originator cases. This includes lenders who
have their FHA approval, but have not completed the test case phase of the
process.
A link to the FHA mortgagee letters is provided here > Mortgagee Letters.

Louisville Kentucky FHA Update Collections, Judgments, Disputes, Escrow Credits
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell

kentuckyloan@gmail.com

--  Joel Lobb (NMLS#57916) Senior  Loan Officer 502-905-3708 cell 502-813-2795 fax kentuckyloan@gmail.com
– Collections, Judgments and Disputed Accounts for Kentucky FHA Loans