I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 900 Kentucky families buy their first home and refinance their current mortgage for a lower rate; Kentucky First time buyers $0 down still available with down payment assistance with KHC. Free Mortgage applications same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS ID 1364
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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: FHA loans in Kentucky After A Bankruptcy
How To Get Approved for A Kentucky FHA, VA, USDA, Mortgage Home Loan After A Bankruptcy?
How To Get Approved for A Kentucky FHA, VA, USDA, Mortgage Home Loan After A Bankruptcy?
- Get a secured credit card
- Credit Score
Mortgage Loan Officer
email: kentuckyloan@gmail.com
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Disputes on Credit Report and Kentucky Mortgage Loan Approval?
How to Get Approved for a Kentucky Mortgage While in A Chapter 13 Bankruptcy:
Can you get a mortgage loan while in a Chapter 13 Bankruptcy?
Here is a brief summary:
You must have 12 payments paid into the Chapter 13 before you can apply for a mortgage loan.
The payments must be made on time for last 12 months or after 12 months if you have been in longer, so no late payments to the Chapter 13 while in it.
You have to ask permission from the courts to seek a mortgage loan. They usually grant this. I have never not seen them grant it.
You have to qualify with the new house payment along with Chapter 13 payments and other debts listed on credit report. Debt to income ratios usually center around 31 and 43% respectively, meaning the new house payment should not be more than 31% of your gross monthly income and your total house payment and debts listed on credit report along with Chapter 13 payment should not be more than 43% of your total gross monthly income.
Credit scores: Most FHA lenders I work with will want a 620-middle score. You have three fico scores from Experian, Equifax, and Transunion, and they throw out the high and low score and take middle score. For example, if you had a 598, 679, and 590 scores respectively for all three bureaus listed above, your qualifying score would be 598.
There are some FHA investors that I am set up with that will go down to 580, but I have seen in my past experiences 620 will get you a better deal and far greater chance of closing on your loan with FHA.
Down payment: For FHA loans, you will need to have at least 3.5% down payment saved up. It is extremely hard to find a no money down loan program to get you approved for a mortgage while you are in a Chapter 13 plan.
FHA and USDA are really the only two options that I know of that offer financing for a borrower with a current Chapter 13 Bankruptcy plan, so keep that in mind.
Conventional loan program offered by Fannie Mae will not allow a mortgage loan for someone in a Chapter 13 Bankruptcy plan.
On USDA loans, it is possible to get 100% Financing after you have paid into the plan for 12 months with a good pay history. The credit scores needed for a USDA loan approval really need to be above 640 in my past experience in getting them approved.
With USDA loans, they have income and property eligibility requirements that FHA does not have, so below is a rough run down of FHA vs USDA loan for you:
Typically, USDA-eligible properties are located in rural areas. It is a mistake, however, to think that you have to live far out in the country to qualify for a USDA loan. USDA-eligible properties are often located near urban areas.
A property’s eligibility is determined by its location with respect to USDA’s map of eligible locations. The USDA program also places limits on your household income based on median earnings in an area. If you exceed that limit, you can’t obtain a USDA loan.
The FHA, by contrast, does not place limits on household earnings. The FHA, however, does establish a maximum limit on the amount of money that can be borrowed through the program.
So, if you were in a hurry to buy, after you have been in your Chapter 13 plan for 12 months, I can look at getting you approved to buy a home if you wish:
If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.
Joel Lobb
Senior Loan Officer
(NMLS#57916)
Text or call phone: (502) 905-3708
email me at kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/
We’ve dropped our minimum FICO score to 620 for Kentucky Mortgage Loan Approvals
Now that’s refreshing!
Call me today to qualify your borrowers with one of our great programs:
KENTUCKY FHA MORTGAGE LOANS
Minimum credit score
620 AUS approved
640 manual
Non-Credit Qualifying Streamline refinances allowed
Gift funds allowed for down payment and closing costs
Cash out 80% LTV
KENTUCKY VA MORTGAGE LOANS
Minimum credit score
620 AUS approved
640 manual/640 High BA
Cash-out up to 90% LTV
Foreclosure/Short Sale/Bankruptcy <2 allowed="" approval="" aus="" p="" with="" years="">
KENTUCKY RURAL USDA MORTGAGE LOANS
Minimum credit score: 620
100% maximum LTV
Manual Underwrites
No maximum loan amount
Rate/Term refinances allowed
KENTUCKY CONVENTIONAL MORTGAGE LOANS
620 min score
Fannie Mae
Freddie Mac
Standard and High Balance
HomeReady
HomePossible
Mortgage Loan Officer
email: kentuckyloan@gmail.com
Credit Score Information for KY Home buyers
Credit Score Information for KY Home buyers
What Types of Credit Pulls Really Harm My Score?
- It is true that some inquiries can potentially harm your credit. Hard inquiries, like a lender pulling your credit report, could affect your score. But soft inquiries, like checking your own credit score, will not.For example: If you apply for numerous credit cards, then it will probably negatively impact your credit score. But if you have multiple credit pulls from mortgage companies, student loan providers, or auto lenders because you are rate shopping, then there might be a less substantial impact on your score because rate shopping doesn’t indicate an elevated credit risk — as long as multiple inquires occur within a small window of time (usually between 14 and 45 days).
Should I Close Paid-Off Credit Cards?
Is 30% the Magic Number for Credit Card Utilization?
New FICO changes could lower your credit score
The newest version of the FICO credit score unveiled on Thursday will have a broader view of how you manage your debt and will boost as many scores as it will hurt.
Instead of relying on just a snapshot of your financial behavior, the new score, called FICO Score 10, will be able to peer into your financial habits for the past 24 months and determine – based on that history – if you’re a risky borrower.
About 40 million Americans will see their FICO score increase by 20 points or more because of the change, while another 40 million will experience a decline by at least 20 points, said Dave Shellenberger, vice president of product management at FICO. Another 30 million will notice smaller changes either way.
“These are the most predictive scores FICO has developed to date,” Shellenberger told Yahoo Money. “They really do an excellent job of reinforcing good consumer financial habits – making payments on time, not running up balances, taking out credit only when you need it. Those types of behaviors are rewarded strongly.”
Who will the new FICO score hurt?
The new score will judge certain risky behaviors more harshly.
For instance, if you build up balances on your credit cards over the last 24 months, that will hurt your score. Before, the FICO score could only see your current balance, and not the history of your growing credit card debt.
Another potential red flag is personal loans. If you consolidated credit card balances into a personal loan and then subsequently racked up new credit card debt, your score would reflect a riskier borrower.
This is especially timely, given the rise in personal loans over the last five years and increases in credit card debt, according to Matt Schulz, chief industry analyst with CompareCards.com.
“Personal loans have grown to be such a popular tool, it’s good that FICO is going to address that,” he told Yahoo Money. “We certainly have seen a lot of credit card debt move into the personal loan space.”
Who will the new FICO score help?
The new score will be more forgiving of other behaviors that may be considered risky by earlier score versions.
For example, if you run up your credit card balances over Christmas or on a summer vacation, but it’s a one-time spike, that won’t hurt your FICO 10 score as much. That’s because the model can look back on historical balances and see this is not a consistent pattern.
“In the past, the FICO score would focus on the most recent data,” Shellenberger said. “FICO 10 gives a more holistic picture that can help during an aberration. That sudden spike’s impact on your score softens considerably.”
Change ‘bound to happen’
A number of changes in the credit landscape prompted FICO to rebuild its score, an undertaking the company does every five years or so. Its score is the most widely used by lenders to determine who to lend to and at what interest rate.
The new score now utilizes so-called trended data in a person’s credit report that shows a person’s credit performance over the last two years. It also provides more granular data, such as the amount you paid toward your credit card.
Previous FICO scores didn’t take into account this trended data, but its competitor – VantageScore – uses the data in its latest score version.
FICO 10 also reflects major changes in credit reports in the last few years due to regulations and settlements. Tax liens, judgments, and medical collections paid by insurance have been removed from credit histories altogether, while defaulted medical debt can’t show up on a report for at least six months.
“This was bound to happen,” John Ulzheimer, a credit expert who formerly worked at FICO and Equifax, told Yahoo Money. “When you take away highly predictive attributes, the scoring models are going to more heavily weigh other attributes that haven't been watered down or removed from consumer credit reports.”
Same old credit score rules apply
No matter which FICO score is used, the three pillars of maintaining a high credit score remain the same:
- Pay your bills on time, all the time.
- Keep balances on your credit cards well below their limits.
- Don’t apply for too much credit, too often.
“If you do these three things over and over again,” Schulz said, “over time your credit will be just fine.”
Janna is an editor for Yahoo Finance. Follow her on Twitter @JannaHerron.
- Pay your bills on time, all the time.
- Keep balances on your credit cards well below their limits.
- Don’t apply for too much credit, too often.
Conventional Mortgage Guidelines for Kentucky in 2020
For these reasons, conventional mortgages are more difficult to obtain with stricter lending requirements in regards to credit score, down payment, debt to income ratio, mortgage insurance and previous bankruptcies or foreclosure.
Let's take a look at each subject below:👇
Credit Scores:
Fannie Mae and Freddie Mac Require a minimum 620 credit score.
You have three credit scores from Experian, Equifax, and Transunion, and they take the middle score, throwing out the high and low score. The higher the credit score the better pricing you will get on the rate and mortgage insurance along with your down payment.
Ideally for higher credit score buyers, say over 680, and with at least 3% down payment with a low debt to income ratio.
Down Payment:
Conventional mortgage loans require a minimum of 3% down payment. The more you put down, the better the rate, lower the mortgage insurance, and greater chances of getting approved.If you put down 20%, then you will not have to pay mortgage insurance, or if you refinance an existing loan that has mortgage insurance, you can potentially get rid of the mortgage insurance if your equity position is less than 20% of the home's value.
Debt to Income:
Conventional Mortgage loans typically will not allow for a back-end ratio of over 45%. They're two ratios, the front-end and back-end ratio. The front-end ratio is a percentage of the total house payment of your total gross monthly income. The back-end ratio is the new total house payment along with the monthly payments on your credit report divided by your total gross monthly income.
For example, if you make $3,000 gross a month, your total backend ratio would me maxed out at 1,350 a month. So if you had $300 in monthly payments on the credit report, this would allow for a maximum house payment of $1,050.00
Mortgage Insurance:
Mortgage insurance is typically cheaper and less expensive on conventional mortgage loans. They're competing private mortgage insurance companies competing for the business with the names of MGIC, Radian, Essent, Genworth and Ugcorp.
Conversely, it is not like Government insured FHA, VA and USDA mortgage loans where all applicants get the same premiums regardless of credit score, down payment and debt to income ratio. Mortgage insurance is usually expressed as a monthly premium, with no upfront mortgage premiums like FHA, VA, and USDA government loan programs.
The higher the credit score, lower debt to income ratio and more nd can be removed once you reach 80% equity position in the home.
Bankruptcies and Foreclosure:
Bankruptcy (Chapter 7 or Chapter 11)
Bankruptcy (Chapter 13)
- two years from the discharge date, or
- four years from the dismissal date.
.Foreclosure
Deed-in-Lieu of Foreclosure, Preforeclosure Sale, and Charge-Off of a Mortgage Account
- A deed-in-lieu of foreclosure is a transaction in which the deed to the real property is transferred back to the servicer. These are typically identified on the credit report through Remarks Codes such as “Forfeit deed-in-lieu of foreclosure.”
- A preforeclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer. These are typically identified on the credit report through Remarks Codes such as “Settled for less than full balance.”
- A charge-off of a mortgage account occurs when a creditor has determined that there is little (or no) likelihood that the mortgage debt will be collected. A charge-off is typically reported after an account reaches a certain delinquency status, and is identified on the credit report with a manner of payment (MOP) code of “9.”