Showing posts with label fha income. Show all posts
Showing posts with label fha income. Show all posts

The reasons you will get turn down for a mortgage loan in Kentucky

Top 10 Reasons Mortgage Loans Are Denied in Kentucky (FHA, VA, USDA & Fannie Mae)


There are several reasons why people in Kentucky might get turned down for a mortgage loan. These reasons can be broadly categorized into issues with the borrower or the property:


Borrower-related reasons:

  • Credit score: Low credit scores (generally below 620) are a major factor in loan denials. Having a history of late payments, delinquencies, or collections can negatively impact your score.
  • Debt-to-income ratio (DTI): This ratio compares your monthly debt payments to your gross income. A high DTI (generally above 50%) indicates you have a lot of debt compared to your income, making it harder to afford a mortgage payment.
  • Employment history: Lenders prefer borrowers with stable employment and income. Recent job changes, gaps in employment, or insufficient income documentation can raise concerns.
  • Down payment: A smaller down payment increases the loan amount and loan-to-value ratio (LTV), making the loan riskier for lenders. In Kentucky, FHA loans require a minimum 3.5% down payment, while conventional loans typically require 20%.
  • Insufficient assets: While not always a disqualifier, having limited savings or assets can weaken your application by reducing your financial cushion.

Property-related reasons:

  • Appraisal value: If the appraised value of the property is lower than the purchase price, it creates a high LTV, making the loan riskier for lenders.
  • Property condition: Major repairs or structural issues with the property could require significant investment before closing, which lenders may not be comfortable with.
  • Location: Properties in floodplains or other high-risk areas may be ineligible for certain loan types or require additional insurance.
turndown for mortgage,bad credit,credit,Credit Score,Debt to Income Ratio,fha income,job gaps,job loss,new job,time on the job,down payment assistance and first time home buyer grants,appraisal,




Here are some resources that can help:

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

WHY WAS MY MORTGAGE DENIED? TOP 10 REASONS 1 Low Credit Score Your credit score falls below the minimum required for the loan program 2 High Debt-to-Income Ratio Your monthly debts are too high compared to your gross monthly income 3 Insufficient Employment History Less than 2 years of steady employment or frequent job changes 4 Inadequate Down Payment Insufficient funds for down payment, closing costs, or cash reserves 5 Property Appraisal Issues Home appraises for less than purchase price or has significant defects 6 Recent Bankruptcy/Foreclosure Past financial difficulties within the required waiting period (2-7 years) 7 Undocumented Income Cannot verify income, especially for self-employed or commission-based workers ? 8 Large Unexplained Deposits Recent large deposits in bank accounts that cannot be properly documented $ ! 9 Taking on New Debt Opening new credit cards, financing cars, or major purchases during loan process 10 Incomplete/Inaccurate Application Missing documents, inconsistent information, or errors on your mortgage application Don't Let Denial Stop You! Most of these issues can be overcome with proper preparation and expert guidance Get Expert Help Today Over 20 Years Experience | 1,300+ Kentucky Families Helped 📧 kentuckyloan@gmail.com 📞 502-905-3708 Joel Lobb - Mortgage Loan Officer NMLS #57916 | Company NMLS #1738461 Equal Housing Lender
Labels: , , , , , , , , , , ,

Kentucky FHA Loans Are Offering New Flexibilities for Borrowers Previously Affected by Covid-19


FHA Offering New Flexibilities for Borrowers Previously Affected by Covid-19

FHA has announced that the guidelines are being updated when calculating effective income after a reduction or loss of income for borrowers affected by the COVID-19 pandemic. These changes are effective for all case numbers on or after 09/05/2022, but may be implemented immediately.


ML 2022-09 reflects policies that will be incorporated into the 4000.1, providing updates for the following:


Additional Required Analysis of Stability of Employment Income
Additionally, flexibility when calculating income for borrowers who experienced a gap in employment and/or a reduction of loss of income due to the COVID-19 pandemic has been updated allowing a borrower to be employed in the same line of work for at least six months at the time of case assignment.

https://www.hud.gov/press/press_releases_media_advisories/HUD_No_22_129

Labels: , , , , , , , , , , ,
Subscribe to: Comments (Atom)