Kentucky Mortgage Conforming loans receiving an acceptable finding through DU follow Conforming guidelines.
To be considered for a mortgage loan, the borrower must have re-established a satisfactory credit history and demonstrated the ability to manage financial affairs prudently. (“Satisfactory" means that the most recent rating has a rating of "1".) The bankruptcy must have reestablished a credit record for an elapsed time of 4 years. Elapsed time is measured by comparing the date of the application fort he new mortgage loan to:
The date a Chapter 7, 11, or 12 bankruptcy was discharged;
The date a Chapter 13 repayment plan was successfully completed and discharged. The elapsed time of 7 years is required for the following:
The date of a foreclosure sale.
Borrowers which have previously incurred a Deed in Lieu of Foreclosure or Preforeclosure Sale (Short Sale) are subject to a tieredgroup of waiting period requirements. If the borrower has re-established a satisfactory credit history within a period below, they willbe subject to a maximum LTV as per the following:
Waiting Period
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Additional Requirements
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Two years
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80% maximum LTV ratios
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Four years
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90% maximum LTV ratios
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Seven years
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Standard maximum LTV ratios
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Note: Additional Requirements can never exceed the standard maximum LTV ratio
If a bankruptcy has been discharged within the past 7 years, the following items are required in the Credit
File to determine the credit's acceptability: Discharge of bankruptcy
Schedule of creditors (secured or unsecured)
Detailed explanation from the borrower
Verification that satisfactory credit has been re-established. Regardless of the reason, if the borrower’s credit history includes a bankruptcy filing or foreclosure-related action, she/he must have re-established credit for at least four years (or as dictated by policy) and established a new payment record that illustrates a willingness and ability to manage his/her finances overtime and if applicable, under different economic conditions. All accounts must be current as of the date of the mortgage application. In addition, the borrower’s credit history must include:
o A minimum of four credit references, with at least one traditional credit reference, and one housing related reference, all of which must have a satisfactory payment history. Three of the four credit references (including anyr ental housing reference) must have been active for a full 24 months before the date of the mortgage application.
o No more than two installment or revolving debt payments 30 days past due in the last
24 months.
o No installment or revolving debt payment 60 days past due since the discharge or
Joel Lobb (NMLS#57916)Senior Loan Officer
502-905-3708 cell*
PLEASE NOTE THESE GUIDELINES ARE FOR CONFORMING OR CONVENTIONAL LOANS ONLY. THESE MORTGAGE GUIDELINES DO NOT APPLY TO FHA, VA, KHC, USDA CREDIT GUIDELINES FOR FORECLOSURES, SHORT SALES, BANKRUPTCY
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