Showing posts with label Bankruptcy. Show all posts
Showing posts with label Bankruptcy. Show all posts

FHA loans in Kentucky After A Bankruptcy

Kentucky FHA Loan Guidelines for Bankruptcy and Foreclosure



Chapter 7


Chapter 7 bankruptcy discharged more than 24 months prior to the application date may be allowed.

Chapter 7 bankruptcy discharged between 12 and 24 months prior to the application date requires satisfactorily established credit and documentation showing the circumstances which caused the bankruptcy were beyond the borrower's control (i.e. unemployment, medical bills not covered by insurance). In these instances, the file must be manually downgraded to a refer and manually underwritten. It falls upon the underwriter to make a final determination as to the overall quality of the file.

Chapter 7 bankruptcy discharged less than 12 months prior to the application date is not allowed.

Chapter 13


Loans where the borrower is currently in a Chapter 13 bankruptcy or had a Chapter 13 bankruptcy which was discharged within the previous 2 years require manual downgrade and must be underwritten manually. Note that manual underwrites require Underwriting Management approval.


A borrower who is currently in a Chapter 13 bankruptcy may be eligible for FHA financing provided all of the following conditions are met in addition to standard manual underwriting requirements:


Foreclosure / Short Sale



A foreclosure less than 3 years ago is not allowed.

In all instances, the “date of foreclosure” is considered the date of the foreclosure deed. The end date of the time frame is determined by the application date.

You can obtain a copy of your bankruptcy paperwork from the website below:


Bankruptcy Courts πŸ‘‰    http://www.pacer.psc.uscourts.gov/




Frequently Asked Question on Kentucky Mortgages After Bankruptcy

πŸ“˜ Chapter 13 Bankruptcy Mortgage Questions

⬇️ Click on arrows for answers to your mortgage questions



How long after a Chapter 13 bankruptcy can I get a mortgage?

You may be eligible after 12 on-time payments during your repayment plan (with court approval), or immediately after discharge with FHA, VA, or Non-QM options.

What types of mortgage loans are available during or after Chapter 13?

FHA, VA, USDA, Conventional (after 2 years discharge), and Non-QM Portfolio Loans.

What is your waiting period for an FHA loan after bankruptcy?

FHA typically allows for approval during Chapter 13 (after 12 payments with approval) or immediately after discharge.

What kind of interest rate should I expect?

Rates depend on credit recovery and loan type. Expect slightly higher-than-average rates during early post-bankruptcy stages, with the potential for competitive terms.

What are the most common obstacles after discharge?

Low credit scores, high DTI ratios, limited assets, incomplete documentation, or lack of court approval.

How long does it take to refinance after Chapter 13 discharge?

Typically 2–4 weeks if all documents are ready.

How long does it take to purchase after Chapter 13 discharge?

Often 30–45 days from pre-approval to closing.

Can I purchase a home while still in Chapter 13?

Yes, with 12 months of on-time payments and court/trustee approval.

Can I refinance my mortgage during Chapter 13?

Yes, under certain conditions and with approval from the bankruptcy court.

How long does it take to get approved during a Chapter 13 payment plan?

Typically 45–60 days including court approval, but may vary by case and jurisdiction.

Can I do a cash-out refinance after Chapter 13?

Yes, usually available 6–12 months post-discharge if equity and credit conditions are favorable.

Are there any mortgage offer loans for homeowners who own their home outright after bankruptcy?

Yes. Rate-and-term and cash-out refinances may be available depending on credit and income.

Are there low down payment loan options post-Chapter 13?

Yes. FHA (3.5% down), VA (0% down), USDA (0% down), and KHC programs are available.

What credit score is needed after Chapter 13?

FHA 580 with 3.5% down FHA and 500+ score with 10% down payment, VA: no minimuim score but 620 preferred USDA: no minumum score but 640 preferred, Conventional: 620+, Non-QM: 500–550+

What if I don’t qualify right now?

You’ll receive a custom action plan to build credit, savings, or income toward qualification.

How do student loans affect mortgage eligibility after bankruptcy?

Student loans count toward your DTI. Deferred loans typically calculated at 0.5%–1% of the balance.

Where can I find forms to file for Chapter 13 Bankruptcy?

Forms are available via the U.S. Bankruptcy Court website or through a licensed bankruptcy attorney.

How does divorce affect my Chapter 13 plan?

Divorce can affect repayment and income stability. Plan modifications may be needed through court.

```

πŸ“™ Chapter 11 Bankruptcy Mortgage Questions

```
What mortgage options are available after Chapter 11 bankruptcy?

Loan types vary based on personal vs. business bankruptcy. FHA, VA, and Non-QM may apply post-discharge.

What if I don’t qualify today?

You’ll receive a recovery plan tailored to reestablish eligibility.

When can I apply for a loan post-Chapter 11?

After your plan is confirmed or the bankruptcy is discharged—typically 12–24 months depending on the loan.

```

πŸ“— Chapter 7 Bankruptcy Mortgage Questions

```
How long must I wait after Chapter 7 to get a mortgage?

FHA/VA: 2 years, USDA: 3 years, Conventional: 4 years, Non-QM: as little as 1 day post-discharge.

What loan options are available post-Chapter 7?

FHA, VA, USDA, Conventional, and Non-QM—all with different credit and timeline requirements.

Are there extra fees for Chapter 7 borrowers?

No hidden fees. Standard lender fees apply. Review your Loan Estimate for details.

```
Do you offer loans for mobile homes on past Chapte7 or Chapter 13?

Yes—if the home is on a permanent foundation and meets agency/HUD guidelines.

```

WHAT IS THE MINIMUM CREDIT SCORE FOR A KENTUCKY FHA MORTGAGE HOME LOAN APPROVAL?


Kentucky FHA Mortgage Credit Score Requirements


FHA is introducing new guidelines on loan to value ratios and the minimum credit score required for FHA borrowers in Kentucky. As detailed in a Mortgagee Letter from the Department of Housing and Urban Development (HUD), the following credit requirements will apply for FHA borrowers, effective October 4, 2010.

To be eligible for maximum financing, borrowers will need a minimum credit score of 500 or higher.

Kentucky FHA Borrowers with a credit score between 500 and 579 will be limited to a loan to value of 90%. A sub 580 FICO credit score borrower will henceforth need to make a 10% minimum down payment on a purchase transaction.


All Kentucky FHA borrowers with a credit score below 500 will not be eligible for FHA-insured mortgage financing in Kentucky.


The new credit requirements are not expected to dramatically change the number of Kentucky FHA mortgage approvals.


minimum credit score requirement of 580 to 620 or higher for Kentucky FHA borrowers.


In limited cases, borrowers with scores between 580 and 639 could still obtain mortgage approval with compensating factors such as large down payment (more than 3.5% minimum), low debt to income ratios, and substantial reserves in the bank with a verifiable pay history of no late payments in the last 12 months of rent and on credit report. A late is considered 30 days late in the credit rating world.

Ultimately, there is no singular credit score that can guarantee you a mortgage approval. Each lender is free to set their own credit score requirements.

But many loan types are insured by government organizations. And lenders cannot accept borrowers with credit scores below the minimum these organizations set. The four most popular home loan types are:



Conventional: Not backed by any government agency, but must meet the Fannie Mae and Freddie Mac underwriting guidelines

FHA: Loans backed by the Federal Housing Administration


VA: Loans backed by the US Department of Veterans Affairs (for military members)USDA: Loans backed by the US Department of Agriculture (for low- to moderate-income families who buy homes in rural areas)



The minimum credit score requirements for each of these loan types:



Conventional:


620 SCORE NEEDED. BUT TO GET APPROVED FOR A FANNIE MAE LOAN MOSTLY LIKE YOU WILL NEED A 720 SCORE OR HIGHER IF YOU HAVE LESS THAN 20% EQUITY POSITION OR LESS THAN 20% DOWN PAYMENT DUE TO PRIVATE MORTGAGE INSURANCE


FHA:

580 for a 3.5% down payment
500 for down payments of at least 10%
**MOST FHA LENDERS WILL WANT A 580 to 620 CREDIT SCORE NOWADAYS

VA:

No minimum BUT MOST VA LENDERS WILL WANT A 580 to 620 CREDIT SCORE

USDA:

No minimum, but with a credit score of at least 620 to 640 you could qualify for streamlined credit analysis and chances of approval goes way down if score is below 640...



WHAT IS THE MINIMUM CREDIT SCORE FOR A KENTUCKY FHA MORTGAGE HOME LOAN APPROVAL?






Which credit score is used to qualify for a Mortgage loan in Kentucky?






CREDIT SCORES OR FICO SCORES USED FOR A KENTUCKY MORTGAGE LOAN APPROVAL




For example if you have a 598, 625, 604 on each of the main three reporting agencies, then your qualifying fico score would be 604. 



If you’re planning to apply for a mortgage, be aware that the credit score you see on your application might differ slightly from the one you’re used to. 

It might even be different than what comes up when you monitor your credit, or even when you apply for a car loan.

Banks use a slightly different credit score model when evaluating mortgage applicants. Below, we go over what you need to know about credit scores you’re looking to buy a home.

The scoring model used in mortgage applications

While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage:

FICO® Score 2 (Experian)
FICO® Score 5 (Equifax)
FICO® Score 4 (TransUnion)

As you can see, each of the three main credit bureaus (Equifax, Experian and TransUnion) use a slightly different version of the industry-specific FICO Score. That’s because FICO tweaks and tailors its scoring model to best predict the creditworthiness for different industries and bureaus. You’re still evaluated on the same core factors (payment history, credit use, credit mix and age of your accounts), but the categories are weighed a little bit differently.


The FICO 8 model is known for being more critical of high balances on revolving credit lines. Since revolving credit is less of a factor when it comes to mortgages, the FICO 2, 4 and 5 models, which put less emphasis on credit utilization, have proven to be reliable when evaluating good candidates for a mortgage.

Mortgage lenders pull all three reports,from all three bureaus, but they only use one when making their final decision.

“A bank will use all three bureaus,”--- “It’s called a tri-merge.”

If all three of your scores are the same, then their choice is simple. But what if your scores are different?


If two of the three scores are the same, lenders use that one, regardless of whether it’s higher or lower than the other one.

And if you are applying for a mortgage with another person, such as your spouse or partner, each applicant’s FICO 2, 4 and 5 scores are pulled. The bank identifies the median score for both parties, then uses the lowest of the final two.

Joel Lobb  Mortgage Loan Officer NMLS 57916


Text/call: 502-905-3708

email:
 kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #173846
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 approvalnor 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.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).

Joel Lobb  Mortgage Loan Officer NMLS 57916 EVO Mortgage  911 Barret Ave, Louisville, KY 40204 Company NMLS ID # 173846  Text/call: 502-905-3708  email: kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.com/ NMLS 57916  | Company NMLS #173846 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. NMLS ID# 57916, (www.nmlsconsumeraccess.org).


 






Kentucky No Money Down Home Loans

Kentucky Mortgage Loans with no down payment - Joel Lobb

Buy a Home in Kentucky With No Money Down — Even With Bad Credit, subject to credit qualfying criteria

Struggling with credit? Don’t have a down payment saved up?
You’re not out of options. You’re just one good loan officer away from a plan.

At Kentucky Home Loans by Joel Lobb, we specialize in helping homebuyers just like you get approved using government-backed loan programs that require little to no money down—even with less-than-perfect credit.

You Might Qualify for These No-Money-Down Options:

USDA Loans

  • $0 down payment required
  • Flexible credit guidelines (scores as low as 580)
  • Great for rural areas and small towns across Kentucky

VA Loans (for veterans, active duty & eligible spouses)

  • 100% financing — no down payment
  • No monthly mortgage insurance
  • Approvals with credit scores as low as 500–580

FHA Loans + KHC Assistance

  • Only 3.5% down, with help available from Kentucky Housing Corporation
  • Credit scores as low as 580 (even lower with 10% down)
  • Forgiving on past credit issues, bankruptcies, or foreclosures

Kentucky Housing Corporation (KHC)

  • Up to $10,000 in down payment help
  • Pair with FHA, VA, USDA, or Conventional loans
  • Available to first-time and repeat buyers

We Make It Simple:

  1. Free mortgage application
  2. Same-day credit review and pre-approval
  3. No hidden fees or pressure
  4. One-on-one help every step of the way

Let’s Find Out What You Qualify For

I’m Joel Lobb, a local loan officer with 20+ years of experience helping Kentucky families become homeowners. If you've been told “no” before, don’t give up. There may still be a path forward—and I’ll help you find it.

Call or Text: (502) 905-3708
Email: kentuckyloan@gmail.com
NMLS #57916 – Kentucky #1 Lender for Kentucky First Time Homebuyers for government backed loans by FHA, VA, USDA and KHC.

Ready to Get Started?

APPLY NOW – FREE CREDIT CHECK & SAME-DAY ANSWER

Ready to Get Started? If you’re ready to purchase a home in Kentucky, partnering with an experienced loan officer will make the process seamless. Whether you're a first-time homebuyer or upgrading, programs like FHA, VA, USDA, and KHC down payment assistance are designed to help you achieve your dream of homeownership. For personalized guidance and support, contact: 1 - πŸ“… Email - kentuckyloan@gmail.com 2. πŸ“ž Call/Text - 502-905-3708 Joel Lobb Mortgage Loan Officer - Expert on Kentucky Mortgage Loans 🌐 Website: www.mylouisvillekentuckymortgage.com 🏒 Address: 911 Barret Ave., Louisville, KY 40204 Evo Mortgage Company NMLS# 1738461 Personal NMLS# 57916 For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

2025 Kentucky Homebuyers Guide: Getting Approved for a Mortgage Loan in Kentucky

If you’re a Kentucky homebuyer, this blog post will guide will help you. It will help you navigate the mortgage approval process in 2025.

If you're looking to purchase your next home, this guide is for you too. Whether you're considering FHA, VA, USDA, or KHC loans with down payment assistance, we’ll cover everything you need to know.

This includes credit score requirements and debt-to-income ratios. We will also discuss appraisals, inspections, bankruptcy, and foreclosure guidelines.


Zero Down Payment Options for Kentucky Homebuyers in 2025

Kentucky offers several programs that allow eligible home-buyers to buy a home with little to no down payment:

Kentucky Housing Corporation (KHC) Loans

FHA Loans with down payment assistance

VA Loans for veterans and active-duty personnel

USDA Rural Housing Loans

Special grants, like the $25,000 Kentucky Welcome Home Grant

Each program has its own qualifying criteria. Let’s dive into the specifics.

Zero Down Payment Options for Kentucky Homebuyers in 2025





Kentucky FHA loan with Down Payment Assistance


Kentucky FHA loan

KHC offers affordable loans paired with down payment assistance (DPA) to help Kentucky homebuyers.

Credit Score: Minimum 620 for government loans and 660 for conventional loans

Down Payment: 3.5% (may be offset by DPA programs)

Income Limits: Varies by county and household size click yellow link>---See income limits and purchase price limits here <

Debt-to-Income Ratio (DTI): 50% for housing costs; 50% for all debts

Work History: Minimum two years of stable employment

KHC Down Payment Assistance (DPA) Options:

Up to $10,000, repayable over 10 years at 3.75% interest. It can be used for down payment and closing costs and prepaids (property taxes, home insurance and odd days interest)

KHC offers affordable loans paired with down payment assistance (DPA) to help Kentucky homebuyers.  Credit Score: Minimum 620  Down Payment: 3.5% (may be offset by DPA programs)  Income Limits: Varies by county and household size  Debt-to-Income Ratio (DTI): 50% for housing costs; 50% for all debts  Work History: Minimum two years of stable employment  KHC Down Payment Assistance (DPA) Options:      Up to $10,000, repayable over 10 years at 3.75% interest.    Fully forgivable DPA options may be available depending on the program.



FHA Loans in Kentucky

Kentucky FHA loans are government-backed mortgages requiring low down payments, making them ideal for Kentucky first-time homebuyers with lower credit scores, scores under 620 and higher debt to income ratios over 45% on the backend.

Credit Score:

580+ with 3.5% down payment

500-579 with 10% down payment

Debt-to-Income Ratio: Generally up to 45.99% on front end ratio or housing ratio and up to 56.99% on the back-end ratio, meaning new house payment plus monthly payments on the credit report.

Work History: Two years of consistent income. Does not have to be the same job. If off work more than 6 months in the past 2 years, may require you to be on current job for 6 months, 

Bankruptcy/Foreclosure Requirements:

Two years after bankruptcy Chapter 7 and 1 year removed from A Chapter 13 with a perfect pay history can do a FHA loan while in Chapter 13 with 12 months paid on time and trustee approval form courts

Three years after foreclosure

Kentucky FHA Loan Limits for 2025 

The Federal Housing Administration (FHA) loan program is a popular choice for homebuyers due to its lower credit score requirements and modest down payment needs. Here are the updated FHA loan limits for Kentucky in 2025:

One-Unit Properties: $472,030
Two-Unit Properties: $604,400
Three-Unit Properties: $730,525
Four-Unit Properties: $907,800

FHA Loans in Kentucky Kentucky FHA loans are government-backed mortgages requiring low down payments, making them ideal for Kentucky first-time homebuyers with lower credit scores, scores under 620 and higher debt to income ratios over 45% on the backend.  Credit Score:  580+ with 3.5% down payment  500-579 with 10% down payment  Debt-to-Income Ratio: Generally up to 45.99% on front end ratio or housing ratio and up to 56.99% on the back-end ratio, meaning new house payment plus monthly payments on the credit report.  Work History: Two years of consistent income. Does not have to be the same job. If off work more than 6 months in the past 2 years, may require you to be on current job for 6 months,   Bankruptcy/Foreclosure Requirements:  Two years after bankruptcy Chapter 7 and 1 year removed from A Chapter 13 with a perfect pay history can do a FHA loan while in Chapter 13 with 12 months paid on time and trustee approval form courts  Three years after foreclosure


Kentucky VA Loans for Active Duty and Veterans

Kentucky VA loans are a top choice for veterans and active-duty military members. They require no down payment. They also require no mortgage insurance monthly but does have upfront mortgage insurance. see link here for guidelines > 

Certified of Eligibility Certificate of Eligibility (COE) Is Required

To qualify for a Kentucky VA mortgage loan, borrowers must obtain a Certificate of Eligibility (COE) from the VA. This document proves you meet the eligibility criteria for a VA loan. Here’s what you’ll need to get your COE:

Veterans: DD Form 214 (showing character of service and reason for separation).

Active-duty service members: A statement of service signed by your commander or personnel officer.

Surviving spouses: VA Form 26-1817 and the veteran’s DD Form 214, if available.

You can apply for your COE online, via mail, or through your lender.


Credit Score: No official minimum, but most lenders require 580-620. The higher your score and lower your debt to income ratio and the higher your residual income your changes of approval is greater

Income: Must demonstrate stable and sufficient income.

Work History: Two years of consistent employment. If getting out of the military and using your VA COE to buy a house the job must line up with your MOS. Military Occupational Specialty

Bankruptcy/Foreclosure Requirements:

Two years after bankruptcy or foreclosure

Debt-to-Income Ratio: No set maximum, can go much higher on the debt to income ratio on VA loans due to they have a residual income requirements. I have see a backend ratio get an approval as high as 75% but they had a great credit score (740 or higher),  high residual income and a lot of assets in the bank as far as checking, savings, 401k or retirement. 

VA loans also include a residual income requirement to ensure borrowers can afford living expenses after the mortgage payment, monthly payments on the credit report, child care expenses, maintenance, and utilities for the house. See the residual income chart below. This is very important for VA loan approval. If you are over this amount, you will not qualify, even with a great credit score, low debt ratio, and a lot of reserves in the bank.

VA Residual Income Chart for Kentucky Mortgage VA Loan Approval (2025) Family Size	Loan Amount $80,000 and Below	Loan Amount Over $80,000 1	$441	$541 2	$738	$888 3	$889	$1,041 4	$1,020	$1,158 5+ (per additional family member)	+$80	+$80

Example: Residual Income for a VA Loan Approval in Kentucky

Example: Residual Income for a VA Loan Approval in Kentucky
Family Size: 5
Loan Amount: Over $80,000
Required Residual Income: $1,158 (for 4 family members) + $80 (for the 5th member) = $1,238
Actual Residual Income: $1,500
Outcome: The borrower qualifies for the VA loan, as their residual income of $1,500 exceeds the required $1,238.


Outcome: The borrower qualifies for the VA loan, as their residual income of $1,500 exceeds the required $1,238.

Residual income is a critical requirement for VA loan approvals, ensuring borrowers have enough to cover living expenses, including housing utilities, child care, and maintenance costs. If residual income falls below the threshold, loan approval may not be possible, regardless of credit score or debt-to-income ratio.

 The higher your score and lower your debt to income ratio and the higher your residual income your changes of approval is greater

USDA Rural Housing Loans in Kentucky

The USDA Rural Housing Loan Program is perfect for Kentucky homebuyers looking to purchase in eligible rural areas. It offers 100% financing with low mortgage insurance premiums.

Credit Score:

640 for automated approval

Manual underwriting is available for borrowers with credit scores below 640. If they decide to manually underwrite a loan, they will ask for more information about the borrower's credit history from the past year.

All loans are ran through GUS Automated Underwriting Engine, and your pre-approval is based off this

Property Restrictions:


Eligible Properties:
Must be located in a designated rural area.
Includes single-family primary residences, modular homes, and detached or attached planned unit developments (PUDs).
Thermal standards must meet or exceed the International Energy Conservation Code (IECC).

Ineligible Properties:
Cooperatives.
Income-producing properties.
Manufactured or mobile homes.
Non-rural designated properties.
Non-owner-occupied homes.

How to Determine Eligibility

You need to confirm if a property is located in a designated rural area. Visit the USDA Property Eligibility Map by clicking this link 

Income Limits: Varies by county and household size

$112,450 for 1-4 person households

$148,450 for 5+ person households

To check income limits for your county, use the

️ USDA Income Eligibility Tool.


Work History: Two years of stable income required.

Debt-to-Income Ratio:

Front-end: 31%

Back-end: 45%

Key Advantage: USDA loans don’t need a down payment, and the upfront mortgage insurance can be rolled into the loan.

Breaking Down USDA Rural Housing Loans Financing Benefits Credit Score Requirements USDA Rural Housing Loan Income Limits Work History Debt-to-Income Ratios



Kentucky Down Payment Assistance and Grants

$25,000 Kentucky Welcome Home Grant for 2025

This grant provides significant assistance for down payments and closing costs.

Eligibility:

Must complete a homebuyer counseling program.

Contribute at least $500 toward closing costs.

Grant Repayment: Prorated repayment required if the home is sold within five years.

Eligible Loans: Can be used with FHA, USDA, VA, and conventional loans.

5% Kentucky Homebuyer Grant

Offers up to 5% of the buying price for down payment or closing costs.

Fully forgivable or repayable options available.

$25,000 Kentucky Welcome Home Grant for 2025

The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) offers grants of up to $25,000 for honorably discharged veterans, surviving spouses of military personnel, and active-duty military homebuyers and up to $20,000 for all other homebuyers to assist with down payment and closing costs for income eligible homebuyers through the Welcome Home Program (WHP).


How the 2025 Kentucky Welcome Grant Works

Offered through local banks and credit unions partnered with the Federal Home Loan Bank of Cincinnati.

The program becomes available annually on March 1st.

Funds are distributed on a first-come, first-serve basis and are typically depleted within 15 days due to high demand.

Application and Closing Timeline

The program requires an application for approval tied to a specific property.

Due to the nature of the grant, the closing process may take longer, so planning ahead is crucial.

Why Choose the Kentucky Welcome Home Grant?

This grant offers an unparalleled opportunity to reduce the financial burden of homebuying. With the Kentucky Welcome Home Grant of  $25,000 available for qualified applicants, it can significantly lower the amount you need upfront for your new home.


Kentucky Welcome Home Grant Process Identify Eligibility Requirements Contribute Toward Closing Costs Grant Offered Through Institutions Funds Distributed Complete Homebuyer Counseling Apply for Grant Program Availability Closing Process


Other Mortgage Loan Requirements in Kentucky

Credit Score Requirements

Conventional Loans: Minimum 620 (higher scores preferred for better terms).

FHA Loans: 580+ (or 500-579 with 10% down).

VA Loans: 580-620 (varies by lender).

USDA Loans: 620-640 for most lenders.

KHC Down Payment Assistance. 620 for FHA, VA, USDA and 660 for Conventional Scores

Kentucky Mortgage Loan Requirements Overview KHC Down Payment Assistance Loans Conventional Loans 620 for government, 660 for conventional Minimum 620 credit score preferred USDA Loans FHA Loans 620-640 for most lenders, no minimum 580+ or 500-579 with 10% down VA Loans 580-620 varies by lender, no minimum




Debt-to-Income Ratio

Conventional Loans: 45% max with mortgage insurance 50% max without mortgage insurance

FHA Loans: 40%-56% max

VA Loans: Flexible, no max debt to income but must meet residual income requirements

USDA Loans: 31% front-end; 45% back-end, much tighter dti restriction's when compared to FHA, VA, USDA and KHC ...

Loan Types and Debt-to-Income Ratios Conventional Loans USDA Loans Maximum 45% with mortgage insurance, 50% without 31% front-end, 45% back-end VA Loans FHA Loans No maximum, but must meet residual income requirements Debt-to-income ratio range of 40%-56%





Work History and Income Verification

Lenders require at least two years of stable employment. Self-employed borrowers must provide two years of tax returns.


Stable Employment How to verify employment and income for lenders? Lenders require at least two years of stable employment for verification. Self-Employed Tax Returns Self-employed borrowers must provide two years of tax returns for verification.


Appraisals and Inspections

Appraisals ensure the home’s value matches the purchase price.

Home appraisals are required by a lender. Home inspections aren’t.
You must set up an inspection yourself while the lender will order an appraisal for you.
An appraisal may impact your ability to get the loan amount you need. An inspection won’t.
Appraisers typically only spot things visible to the naked eye, whereas inspectors use special devices and training to spot deeper issues.


Home buyers are allowed and encouraged to walk through the home with the inspector during the inspection.


An inspector will explain and educate during the interactive process. An appraiser won’t tell you their findings until they complete their report.


A home inspection only examines the condition of the home when making the assessment. A home appraisal considers the condition of the home, comparable home prices, lot size, home features, area crime rates and school zones.

Typically, an appraiser will go through the appraisal process alone.
The inspector and appraiser have a different set of skills, are trained and certified in different processes and have different areas of expertise.

Understanding Home Purchase Processes Loan Approval Appraisal is necessary for mortgage approval Lender's Role Orders appraisal, ensures unbiased evaluation Home Inspection Identifies potential issues, not required for all loans Appraisal Ensures home value matches purchase price



Bankruptcy and Foreclosure Requirements

FHA: Two years after bankruptcy; three years after foreclosure.

VA: Two years after bankruptcy or foreclosure.

USDA: Three years after bankruptcy or foreclosure.

Conventional: Four years after bankruptcy; seven years after foreclosure.

Navigating Post-Bankruptcy and Foreclosure Loan Wait Times FHA and VA loan eligibility Conventional loan eligibility VA loan eligibility Conventional loan eligibility 2 years after bankruptcy 4 years after bankruptcy 2 years after foreclosure 7 years after foreclosure 3 years after bankruptcy 3 years after foreclosure 3 years after foreclosure USDA loan eligibility FHA loan eligibility USDA loan eligibility

Time to Close

Most loans in Kentucky take 30-45 days to close, depending on the lender and loan program.


Here’s a blog post based on the text and flow chart steps provided in the image, tailored for Kentucky homebuyers:


Step-by-Step Guide to Getting Approved for a Mortgage Loan in Kentucky

Buying a home in Kentucky can feel overwhelming, especially for first-time homebuyers. Understanding the mortgage process, the timeline involved, and what is needed to close your loan will make the journey smoother and less stressful. Here’s a step-by-step guide to walk you through the process.


Step 1: Pre-Purchase Consultation

The first step is scheduling a pre-purchase consultation with a mortgage professional. During this meeting:

Discuss your financial goals and homeownership plans.

Review your credit score, income, and overall qualifications for a mortgage loan.

Understand the loan options available, including FHA, VA, USDA, and conventional loans.

Tip: Be prepared to ask questions and clarify your expectations during this phase.


Step 2: Pre-Qualification

Once your consultation is complete, gather the necessary documents (such as pay stubs, tax returns, and bank statements) to verify your financial situation. After reviewing these, your lender will issue a pre-qualification letter, which shows sellers that you are a serious buyer with financing in place.


Step 3: Find a Home and Negotiate the Contract

With your pre-qualification letter in hand, you can now:

Start searching for your dream home.

Work with a realtor to make an offer and negotiate the purchase contract.

Note: Ensure that the home you choose aligns with your loan requirements, such as USDA property eligibility for rural housing loans.


Step 4: Review Loan Terms and Sign Initial Disclosures

After your contract is accepted:

Your lender will provide initial disclosures outlining the loan terms, estimated costs, and required steps.

Carefully review the loan documents and sign them to proceed with the loan application.

Step 5: Order Inspection, Appraisal, and Title

At this stage, the following steps are initiated:

Home Inspection: Ensures the property is in good condition and identifies potential issues.

Appraisal: Confirms the home’s value matches the purchase price.

Title Work: Verifies there are no legal issues with property ownership.

Tip: Coordinate closely with your realtor and lender to ensure these steps are completed in a timely manner.

Step 6: Submit Loan Package to Underwriting

Once all initial documents are gathered, your lender will submit the complete loan package to underwriting. The underwriter reviews:

Credit score

Debt-to-income ratio

Employment history

Property appraisal

Title work

Expect the underwriter to request updated documents or clarification on certain details.

Step 7: Clear Underwriting Conditions

After the underwriter reviews your loan file, they may issue conditional approval. This means you need to provide additional documentation, such as:

Updated bank statements

Proof of funds for closing

Explanations for any credit inquiries

Once all conditions are met, the underwriter will issue final approval.

Step 8: Closing Disclosure and Waiting Period

Before closing, you’ll receive a Closing Disclosure (CD), which outlines the final terms and costs of your mortgage. By law, you must review this document during a 3-day waiting period before the closing.

Step 9: Closing Day

Congratulations, it’s time to finalize your loan! On closing day:

Sign the final loan documents.

Pay any remaining closing costs (if applicable).

Receive the keys to your new home.


Mortgage Loan Approval Process in Kentucky Pre-Purchase Consultation Pre-Qualification Find Home and Negotiate Contract Review Loan Terms Order Inspection, Appraisal, Title Submit Loan Package Clear Underwriting Conditions Receive Closing Disclosure


What to Expect Throughout the Process

Timeline: The mortgage process typically takes 30-45 days from pre-qualification to closing, though this can vary depending on the loan type and how quickly documents are provided.

Communication: Stay in close contact with your lender, realtor, and title company to avoid delays.

Updated Documents: Be prepared to provide updated pay stubs, bank statements, or other documentation throughout the process.

Tips for a Smooth Closing

Stay Organized: Keep all required documents in one place for easy access.

Respond Quickly: Promptly address any requests from your lender or underwriter.

Ask Questions: Don’t hesitate to clarify terms or processes you don’t understand.

Be Financially Stable: Avoid making major purchases or changes to your financial situation during the process.

Ready to Get Started?

If you’re ready to purchase a home in Kentucky, partnering with an experienced loan officer will make the process seamless. Whether you're a first-time homebuyer or upgrading, programs like FHA, VA, USDA, and KHC down payment assistance are designed to help you achieve your dream of homeownership.

For personalized guidance and support, contact:


1 - πŸ“… Email - kentuckyloan@gmail.com 
2.  πŸ“ž Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans


🌐 Website: www.mylouisvillekentuckymortgage.com
🏒 Address: 911 Barret Ave., Louisville, KY 40204


Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.


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Can you buy a house in Kentucky with Bad Credit?

Buying A House with Bad Credit in Kentucky


When in comes to buying a house in Kentucky and getting approved for a mortgage loan a lot of buyers will have to confront their past credit issues. Credit, along with income, work history, and assets determine if you qualify for a mortgage loan. 

Below I will address the main issues you have to address when it comes to getting approved for a mortgage with past credit problems. 

 Mortgage late payments: One late payment in the last 12 months is permitted so long as it can be explained and fully documented if necessary.


• Foreclosure: Thirty-six months from the date of the foreclosure until eligibility to repurchase using the 3.5 percent down payment FHA Loan, 48 months for VA Loans (no money down required), seven years no matter the down payment on a conventional type.


• Short sale: Thirty-six months from the date of the short sale until eligibility to repurchase using the 3.5 percent down payment FHA Loan, 24 months with the VA, 24 months on a conventional money loan with a minimum down payment of 20 percent.



Bankruptcy: Chapter 7 (Chapter 13 is less common), 24 months from the date of discharge until eligibility to repurchase using the 3.5 percent down FHA Loan, 48 months on VA Loans (still no money down required),  48 months on conventional no matter the down payment. All mortgage companies have different thresholds of risk appetite. For example, the FHA (Federal Housing Administration) has no credit score requirement. Why, then, do lenders have a minimum credit score requirement of 620 for an FHA Loan? Unbeknownst to the majority of home buyers, many mortgage companies have a secret ominous business strategy.


Enter “investor overlays.” 
Investor overlays are adjustments to guidelines and/or pricing created in favor of the mortgage company. This is exactly why one lender can do the loan, and another lender cannot do the loan in some instances.
Tip: every mortgage lender has investor overlays, it’s the nature of how mortgage companies operate, key is work with the lender whose overlays are minimal.




Timing
Typically speaking, if you want to get a mortgage after bankruptcy you’ll need to allow time to pass. For conventional mortgages you’ll need to wait four years after Chapter 7 bankruptcy or two years after Chapter 13 bankruptcy. But there are some other mortgage options that require a shorter waits.

Credit Scores 


580 to 620 is the bottom score (again with few exceptions) that lenders will permit. Below a 620, then you have to look at doing a FHA loan or VA loan if you are a veteran. Even at 620, people consider you a higher risk that other folks and are going to penalize you or your borrower with a more expensive loan. 720 is when you really start to get in the “as a lender we love you” credit score. 760 is even better.

 Watch your credit scores carefully. You have three credit scores, and the lender will take your middle score. For example, let's say you have a 590 on Transunion, 679 on Experian, and a 618 on Equifax. Then your middle qualifying credit score will be 618 credits score.

If you absolutely cannot get your credit scores up to 620, then FHA will be a good option for you. FHA states that if your fico credit score is 580 or above, they will allow for a 3.5% down payment, and if below 580, you will need 10% down payment.

There are a lot of mortgage lenders that will not go below 580 to 620 range, so keep that in mind when you are shopping for a mortgage lender, because they create credit overlays.

FHA Mortgage


Two years after your Chapter 7 bankruptcy discharge you may apply for an FHA loan. If you filed Chapter 13 bankruptcy, then you’ll only need to wait until you’ve made twelve months of satisfactory payments, and you’ll need to get the approval of the bankruptcy trustee. But if you want to be given serious consideration, you’ll need to provide a clear explanation for why you filed bankruptcy. For example, maybe you filed Chapter 13 bankruptcy because you had a medical emergency and was unable to pay your medical bills.

VA Mortgage

If you’re a veteran, you can get a VA mortgage two years after your bankruptcy discharge. This VA application process can be challenging, but in some ways it’s more lenient since post-bankruptcy credit issues such as a foreclosure won’t restart the 2-year waiting period. However, credit issues after bankruptcy might affect your interest rate, so take care to keep your credit as clean as possible.

USDA Mortgage

If you live in a rural area, you may qualify for a USDA mortgage three years after your bankruptcy discharge. It’s important to note that while the USDA provides loans to rural residents it’s only for property that will serve as the borrower’s primary residence. The USDA will not finance the purchase of income property or a vacation home.
As you prepare to apply for a mortgage after bankruptcy, keep in mind that the mortgage lender will take into account the totality of your financial situation—your finances, credit history, credit score, and any extenuating circumstances




13,foreclosure,Short Sales,chapter 7,bankruptcy va mortgage,bankruptcy usda mortgage,FHA Mortgages and Bankruptcy,Bankruptcy,







Joel Lobb  Mortgage Loan Officer

EVO Mortgage
911 Barret Ave, Louisville, KY 40204

1 - πŸ“… Email - kentuckyloan@gmail.com 
2.  πŸ“ž Call/Text - 502-905-3708


https://www.mylouisvillekentuckymortgage.com/2010/10/get-approved-for-mortgage-or-home-loan.html

NMLS 57916  | Company NMLS#173846