Kentucky FHA Loan Limits for 2018

Kentucky FHA Loan Limits for 2018
FHA has announced new loan limits for 2018. For all FHA loans with Case Numbers assigned on or after January 1st, the following will be effective
 these values are updated to coincide with the new FNMA loan limit floor values.

FHA Limits for 2018

Lending Limits for FHA Loans in KENTUCKY Counties

FHA mortgage lending limits in KENTUCKY vary based on a variety of housing types and the cost of local housing. FHA loans are designed for borrowers who are unable to make large down payments.

120 match(es) found.
ADAIR County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ALLEN County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ANDERSON County
FRANKFORT, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BALLARD County
PADUCAH, KY-IL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BARREN County
GLASGOW, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BATH County
MOUNT STERLING, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BELL County
MIDDLESBOROUGH, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOONE County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOURBON County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOYD County
HUNTINGTON-ASHLAND, WV-KY-OH
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BOYLE County
DANVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BRACKEN County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BREATHITT County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BRECKINRIDGE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BULLITT County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
BUTLER County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CALDWELL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CALLOWAY County
MURRAY, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CAMPBELL County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CARLISLE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CARROLL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CARTER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CASEY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CHRISTIAN County
CLARKSVILLE, TN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CLARK County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CLAY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CLINTON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CRITTENDEN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CUMBERLAND County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
DAVIESS County
OWENSBORO, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
EDMONSON County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ELLIOTT County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ESTILL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FAYETTE County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FLEMING County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FLOYD County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FRANKLIN County
FRANKFORT, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FULTON County
UNION CITY, TN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GALLATIN County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GARRARD County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GRANT County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GRAVES County
MAYFIELD, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GRAYSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GREEN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GREENUP County
HUNTINGTON-ASHLAND, WV-KY-OH
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HANCOCK County
OWENSBORO, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HARDIN County
ELIZABETHTOWN-FORT KNOX, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HARLAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HARRISON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HART County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HENDERSON County
EVANSVILLE, IN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HENRY County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
HICKMAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HOPKINS County
MADISONVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JACKSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JEFFERSON County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
JESSAMINE County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JOHNSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
KENTON County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
KNOTT County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
KNOX County
LONDON, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LARUE County
ELIZABETHTOWN-FORT KNOX, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LAUREL County
LONDON, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LAWRENCE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LEE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LESLIE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LETCHER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LEWIS County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LINCOLN County
DANVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LIVINGSTON County
PADUCAH, KY-IL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LOGAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LYON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MADISON County
RICHMOND-BEREA, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MAGOFFIN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MARION County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MARSHALL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MARTIN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MASON County
MAYSVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MCCRACKEN County
PADUCAH, KY-IL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MCCREARY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MCLEAN County
OWENSBORO, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MEADE County
ELIZABETHTOWN-FORT KNOX, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MENIFEE County
MOUNT STERLING, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MERCER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
METCALFE County
GLASGOW, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MONROE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MONTGOMERY County
MOUNT STERLING, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MORGAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MUHLENBERG County
CENTRAL CITY, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
NELSON County
BARDSTOWN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
NICHOLAS County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
OHIO County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
OLDHAM County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
OWEN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
OWSLEY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PENDLETON County
CINCINNATI, OH-KY-IN
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PERRY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PIKE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
POWELL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PULASKI County
SOMERSET, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ROBERTSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ROCKCASTLE County
RICHMOND-BEREA, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ROWAN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
RUSSELL County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SCOTT County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SHELBY County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
SIMPSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SPENCER County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
TAYLOR County
CAMPBELLSVILLE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
TODD County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
TRIGG County
CLARKSVILLE, TN-KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
TRIMBLE County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
Single Duplex Tri-plex Four-plex
$304,750 $390,100 $471,550 $586,050
UNION County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WARREN County
BOWLING GREEN, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WASHINGTON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WAYNE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WEBSTER County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WHITLEY County
LONDON, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WOLFE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WOODFORD County
LEXINGTON-FAYETTE, KY
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
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/
 
— 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.

images (3)

 

 

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,

 

Advertisements

Back to Work Program for FHA Borrowers in Kentucky

 fha back to work program in kentucky
fha back to work program in kentucky
Kentucky FHA Mortgage Guidelines for Previous short sale or foreclosure

• FHA permits loans to Kentucky Home-buyers  whose credit history indicates a short sale within the most recent three years prior to loan application, provided all of the following conditions are met:

– The borrower must have made all mortgage payments within the month due for  the 12 months prior to the short sale

• Borrowers who executed a short sale after completing a permanent  modification are eligible for Kentucky FHA financing, provided the borrower made at  least 12 payments on the permanent modification and all payments on the  permanent modification were made within the month due for the 12 months  prior to the short sale

• Borrowers who completed a short sale on a loan that was under a temporary  modification plan at the time of the short sale are ineligible for Kentucky FHA financing  for three years after the short sale
– The short sale must serve as payment in full on the existing liens, and the existing mortgage servicer may not require repayment of the difference between the mortgage balance and the short payoff – Borrowers in default on their mortgages at the time of a short sale are ineligible  for Kentucky  FHA financing for three years after the date of the short sale unless the  borrower experienced significant extenuating circumstances
– For additional information, refer to FHA Mortgagee Letter 2009-52 – Short Sales 

Kentucky FHA Lender for Back to Work Program
Joel Lobb 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
 Company ID #1364 | MB73346

A Complete Guide to Closing Costs

A Complete Guide to Closing Costs.

via A Complete Guide to Closing Costs.

Five different types of Mortgage Loans avaialbe for first-time homebuyers in Kentucky

1) FHA–  3.5% of the purchase price is required for a down payment. The 3.5% down has to come from buyer funds or a buyer’s family member as a gift.

2)  VA- No money down required.  You have to be a veteran, spouse of deceased veteran, or active duty military to qualify for a VA loan.

3) USDA (aka Rural Housing)- No money down required.  You have to purchase a home outside of Jefferson County and buy in an approved USDA county.  Typically, most of the counties that surround Jefferson County are approved for USDA.

4) Conventional- As little as 5% down payment is required.  20% down payment might be required if the borrower/buyer has a lower credit score.  When putting personal money down along with gift money on a conventional loan, the buyer must have 5% personal funds verified before any gift funds can be received.  Gift funds can be used on top of the 5% personal funds to increase down payment or contribute to closing costs.  The only exception to this rule with a conventional loan would be if the buyer is getting a 20% gift. If the buyer receives a 20% gift they would not be required to provide 5% of their own funds.

5) KHC or Kentucky Housing-

Down Payment and Closing Costs Assistance

Bookmark and Share

Kentucky Housing recognizes that down payments, closing costs and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP

  • Purchase price up to $243,000.
  • Assistance in the form of a loan up to $6,000 in $100 increments.
  • Repayable over a ten-year term at 5.50 percent.  A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.
  • Available to all KHC first-mortgage loan recipients.

Affordable-DAP

  • Purchase price up to $243,000.
  • Assistance up to $4,500
  • Repayable over a ten-year term at 1.00 percent.
  • Borrowers must meet Affordable DAP Household Income Limits.

More about down payment and closing costs

  • No liquid asset review and no limit on borrower reserves.
  • Specific credit underwriting standards may apply to down payment programs.

FHA Loans After Bankruptcy, Foreclosure, Short Sale: 2013 Rule Change

FHA Loans After Bankruptcy, Foreclosure, Short Sale: 2013 Rule Change.

FHA Loans After Bankruptcy, Foreclosure, Short Sale: 2013 Rule Change

To that end, FHA is changing the rules for borrowers who want to use an FHA loan after a bankruptcy, short sale, foreclosure, or deed in lieu of foreclosure. Borrowers who can show that the negative event was due to income losses beyond their control could be eligible for an FHA loan within one year of the event. This is a major change over the previous three-year rule for bankruptcies and foreclosures.

Read more: http://www.homebuyinginstitute.com/news/fha-after-foreclosure-bankruptcy-463/#ixzz2f4Rpj5Os

— 

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

Documenting Disability Earnings as Stable Income

Documenting Disability Earnings as Stable Income.

 

Documentation Requirements for Income from the Social Security Administration

(SSA).

Purpose This Mortgagee Letter (ML) clarifies guidance on documentation requirements for

different types of SSA income used for income qualification purposes. This ML is

provided in response to requests for clarification on this issue.

Effective Date This ML is effective immediately.

All income from the Social Security Administration (SSA) including, but not limited to, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Social Security Income, can be used to qualify the borrower if the income has been verified, and is likely to continue for at least a three year period from the date of mortgage application.

The lender must verify income by obtaining from the borrower any one of the following documents:

Federal tax returns; the most recent bank statement evidencing receipt of income from the SSA; a Proof of Income Letter, also known as a “Budget Letter” or “Benefits Letter” that evidences income from the SSA (Please visit http://www.ssa.gov for an explanation of types of letters issued by the SSA); or a copy of the borrower’s Social Security Benefit Statement, SSA-1099/1042S.

In addition to verification of income, the lender must document the continuance of this income by obtaining from the borrower (1) a copy of the last Notice of Award letter which states the SSA’s determination on the borrower’s eligibility for SSA income, or (2) equivalent document that establishes award benefits to the borrower (equivalent document). If any income from the SSA is due to expire within three years from the date of mortgage application, that income may only be considered as a compensating factor.

Documentation Requirements for Income from the Social Security Administration (continued)

If the Notice of Award or equivalent document does not have a defined expiration date, the lender shall consider the income effective and likely to continue. The lender should not request additional documentation from the borrower to demonstrate continuance of Social Security Administration income. Under no circumstance may lenders inquire into or request documentation concerning the nature of the disability or the medical condition of the borrower

Note: Pending or current re-evaluation of medical eligibility for benefit payments is not considered an indication that the benefit payment is not likely to continue.

Note: An initial Notice of Award letter (or its equivalent) may specify a start date for receipt of income in the future. Lenders may consider this income as effective income as of the start date specified in the Notice of Award Letter. The borrower must have other income to qualify for the mortgage until the start date for receipt of income.

Note: Other forms of long-term disability income (such as worker’s compensation or private insurance) may be considered qualifying income with a reasonable expectation of continuance. Lenders should use procedures similar to those noted above to verify such income.