Tuesday, October 29, 2013

COMPENSATING FACTORS TO OVERTURN A MORTGAGE DENIAL ON A KENTUCKY FHA AND USDA MORTGAGE LOAN:

COMPENSATING FACTORS TO OVERTURN A MORTGAGE DENIAL ON A KENTUCKY FHA AND USDA MORTGAGE LOAN:

Documentation

- Accumulated Savings
The borrower has demonstrated an ability to accumulate savings, and a conservative attitude toward using credit.
- Compensation or Income Not Reflected in Effective Income

- Down Payment
The borrower makes a large down payment of 10 percent or higher toward the purchase of the property.
- Housing Expense Payments

- Minimal Housing Expense Increase
There is only a minimal increase in the borrower's housing expense.
- Potential for Increased Earnings
• The borrower has a potential for increased earnings, as indicated by job training or education in his/her profession.
- Previous Credit History
A borrower's previous credit history shows that he/she has the ability to devote a greater portion of income to housing expenses.
- Primary Wage-Earner Relocation

- Substantial Cash Reserves
•••
- Substantial Non-Taxable Income
The borrower has substantial non-taxable income. This applies if no adjustment was previously made when computing ratios.
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell



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