Kentucky FHA Mortgage Guidelines Changes for 2015

Did You Know that Kentucky Mortgage FHA Income Requirements changed in October 2015? • Job Changes – FHA loan rules instruct lenders to, favorably consider a borrower for a mortgage if he/she changes jobs frequently within the same line of work, but continues to advance in income or benefits. In this instance, income stability takes precedence over job stability. And FHA loan applicants who have been out of a job for a while but have since returned to employment may have their income considered effective and stable when recently returning to work after an extended absence if he/she: –is employed in the current job for six months or longer, and –can document a two year work history prior to an absence from employment using traditional employment verifications, and/or copies of W-2 forms or pay stubs. Note: An acceptable employment situation includes an individual who took several years off from employment to raise children, then returned to the workforce. • Employment Gaps – For borrowers with gaps – FHA does not require a minimum length of time that a borrower must have held a position of employment. However, the lender must verify the borrowers employment for the most recent two full years, and the borrower must: –explain any gaps in employment that span one or more months, and –indicate if he/she was in school or the military during the most recent two full years, providing evidence supporting this claim, such as college transcripts, or discharge papers. When analyzing the probability of continued employment, the lender must examine –the borrowers past employment record –qualifications for the position –previous training and education, and –the employers confirmation of continued employment Joel Lobb Senior Loan Officer (NMLS#57916)   phone: (502) 905-3708 Fax: (502) 327-9119 kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.com/