Kentucky Mortgage Lender

Kentucky VA Loan Guidelines: Collections, Charge-Offs, Judgments and Liens Many Kentucky veterans are worried that old collections or charge-offs will automatically stop a VA home loan approval. In most cases, that is not true. The VA underwriter looks at the whole credit picture, not just one negative item, and wants to know whether you are a satisfactory long-term credit risk. This guide explains how Kentucky VA lenders typically treat collection accounts, charge-offs, judgments and liens when you apply for a VA mortgage. VA credit guidelines can be flexible, but every file is different. The best way to know where you stand is to have your full credit report reviewed by a VA-approved lender who understands Kentucky guidelines. How VA Views Collection Accounts VA does not automatically require every collection to be paid before you can close on a home. Instead, the underwriter reviews the type, age, size and pattern of the collection accounts and whethe...

Did you know over 50% of our Kentucky  FHA loans are manual underwrites?   Kentucky FHA will consider the borrower’s entire story, including extenuating circumstances and compensating factors, to justify loan approvals. If your borrower falls under any of these conditions, they may benefit from manual underwriting: Non-traditional credit / lack of credit True extenuating circumstances affecting credit or income history Lack of seasoning on a Chapter 13 Disputed accounts over $1,000 Frequent job changes in the last 12 months If you think your borrower could benefit from  manual underwriting call us to learn more about manual underwriting or submit your scenario today. Lowest Minimum Decision Credit Score  Maximum Qualifying Ratios (%)  Acceptable Compensating Factors All manual underwritten loans require a VOR. If the borrower does not pay rent a letter of explanation from borrower stating where living rent free. 31/43 • No compensating factors required. • Energy...

How to get approved for a Kentucky FHA Mortgage Loan with Bad Credit in 2023. Below details the DTI requirements The maximum Front and Back ratios applicable to manually underwritten Kentucky FHA Mortgages are detailed below.  Maximum DTI allowed for Manual UW is 40/50  **IMPORTANT – any loan where ALL borrowers have No Fico Score, the Maximum DTI is 31/43 per HUD DTI and Compensating Factor Requirements:  560 FICO and Above – DTI up to 31/43.Comp Factors Required - NONE.  560 FICO and Above - DTI up to 37/47Comp Factors Required– 1 Required  560 FICO and Above – DTI up to 40/50Comp Factors Required– 2 Required ACCEPTABLE COMPENSATING FACTORS: RESERVES – 3 mo (1-2 Unit) 6 Mo (3-4 Unit) HOUSING DECREASE – new PITI is no more than $100 or 5%, the lesser of the two RESIDUAL – Meet VA residual requirements ADDITIONAL INCOME – Income not reflected in DTI (this comp factor is only permitted when DTI is over 37/47 and if income were used, it would decrease DTI under 37...

 KENTUCKY FHA GUIDELINES FOR CONSUEMR CREDIT COUNSELING (J)   Credit Counseling/Payment Plan  (APPROVE/ELIGIBLE) Participatin g in a consumer credit counseling  program does not require a downgrade to a manual underwriting.No explanation or other documentation is needed.   (K)   Credit Counseling/Payment Plan  (MANUAL UW)   Participating in a consumer credit counseling  program does not disqualify a Borrower from obtaining an FHA-insured Mortgage, provided the Mortgagee documents that: one year of the payout period has elapsed under the plan; the Borrower’s payment performance has been satisfactory and all required payments have been made on time; and the Borrower has received written permission from the counseling agency to enter into the mortgage transaction.     KENTUCKY RURAL HOUSING USDA GUIDELINES FOR CONSUMER CREDIT COUNSELING  CONSUMER CREDIT COUNSELING - DEBT MANAGEMENT...