- 4 Things Required for a KY Mortgage Loan Approval
- Credit Scores Required For A Kentucky Mortgage Loan Approval in 2021
- Down Payment Assistance Kentucky 2021 Kentucky Housing Corporation KHC
- Kentucky First-time Home Buyer Programs
- Kentucky FHA Mortgage Information
- Kentucky VA Mortgage Loan Information
- USDA Rural Housing Kentucky Loan Information
- Zero Down Kentucky Mortgages
- First-time Home-buyers in Kentucky
- Documents Needed Mortgage Approval in Kentucky
- Free Credit Score Booklet
- Do's & Dont's before closing:
- Closing Costs Kentucky Mortgage
- Lock Kentucky Mortgage Loan Rate
- Home Inspections Kentucky
- Accessibility Statement
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Down Payment Assistance Kentucky 2021 Kentucky Hou...
Bad Credit and Getting Approved for A Mortgage Loan in Kentucky
1. Credit Score
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.
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.
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.
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.
NMLS Consumer Access
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
Text or call 502-905-3708- Not affiliated with your current lender, the FHA, or any other government agency. This message has not been approved by any government agency. Offer for FHA Cash Out Program only and all other offers will have different terms. Equity reserves is only an estimate and may be higher or lower depending on market conditions and amortization. Verification of income, employment and home value may apply.
15-Year Fixed-Rate Mortgage:
The payment on a $200,000 15-year fixed-rate loan at 4.125% and 75% loan-to-value ratio (LTV) is $1,491.94 with .125 points due at closing. The annual percentage rate (APR) is 4.305%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Rates shown valid on publication date of November 29, 2019. Some state and county maximum loan amount restrictions may apply.
30-Year Fixed-Rate Mortgage:
The payment on a $200,000 30-year fixed-rate loan at 4.99% (APR 5.103%) and 75% loan-to-value ratio (LTV) is $1,072.42 with .75 points due at closing. One point is equal to one percent of your loan amount. Payment does not include taxes and insurance premiums. The actual payment amount will be greater.
Rates shown valid on publication date of September 30, 2019. Some state and county maximum loan amount restrictions may apply.To qualify for these loan programs, you must be at least 18 years of age with a valid U.S. residency. Kentucky Mortgage Loans Only. Not licensed in any other state.
Guidelines may vary for self-employed individuals. Formal approval will be subject to satisfactory verification of income, assets, credit, property condition and value. Additional restrictions/conditions
Credit Score and Income Requirements to Buy a Home in Kentucky in 2021
Get your fixed interest rates for eligible buyers.620 minimum credit score
2 Year work history but does not have to be same job
KENTUCKY FHA MORTGAGES
Government-backed loans with flexible guidelines.
Max loan $356,760 in Kentucky
KENTUCKY USDA MORTGAGES
Government-backed loans with flexible guidelines.
2 year work history with no gaps over 60 days
KENTUCKY VA MORTGAGES
Government-backed loans for those who’ve served our nation.
Kentucky down payment assistance programs available now to buy a home no money down so read on below
Kentucky FHA appraisals can take home buyers by surprise. That’s why we've put together some good-to-know info about the process. Feel free to use this to help educate your clients.
Your Kentucky FHA Home Appraisal Checklist
If you’re using an Kentucky FHA loan to buy a home (or selling to FHA borrowers), the property must pass an FHA appraisal, which determines the current market value and makes sure the house meets certain safety standards. Here is a list of items an FHA appraiser may look for:
General Health and Safety
- Foundation or structural defects
- Whether the utilities (water, sewage, heat, and electricity) all work
- Chipped or peeling paint in homes built before 1978
- Incomplete renovations
- Water damage
- If the property is accessible to vehicles, especially emergency vehicles
- Exposed wiring and uncovered junction boxes
- Whether the house is too close to outside hazards, such as a leaking oil tank or a waste dump
- Excessive noise, such as being close to an airport
- Missing handrails
- Leaky or defective roof and holes in the siding
- Leaning or broken fencing
- Doors that don’t properly open or close
- Condition of gutters, chimney, stairs, railings, and porches
- If swimming pools are up to code
- Whether each room has electricity
- Whether each room has a window or door to the exterior to be used as a fire escape
- Missing or broken appliances usually sold with a home, including stove and refrigerator
- Broken or leaking sink
- Broken or leaking toilet, sink, or tub/shower
- No ventilation (either an exhaust fan or window)
Crawl space or basement
- Basement moisture
- Evidence of past or present standing water
Heating and Plumbing
- Inoperable HVAC
- Major plumbing issues and leaks
These are some common items an FHA appraiser looks for, but other issues that might make a house unsafe could keep it from passing. An FHA appraisal is not the same as an independent home inspection. It’s still a good idea to get a separate home inspection to make sure you’re making a wise investment!
List of Kentucky FHA Appraisers below:
Banks consider their interests first and protect them by not lending to people they considers poor risks. What constitutes a "poor risk" varies from lender to lender, but the general gist would be anyone whose credit score is 619 or less. Other attributes, such as income level, length of time in current dwelling, and previous loan history all factor into a private lender's decision. As always, the more anyone does notneed the money, the higher the degree of likelihood the bank will lend to that person.
Kentucky FHA Loans
Mortgages that come from the Federal Housing Administration are easier to get than private mortgages, but they will usually have a higher interest rate over the long haul than private mortgages. The FHA has its root during Franklin Roosevelt's administration during the Great Depression. Thousands upon thousands of Americans had either lost their homes in the debacle or were about to lose them. Shorn of their credit rating and nearly penniless, they had no hope of qualifying for loans even if the banks were in a position to lend, which many were not.
The FHA oversaw the lending of money to these desperate people and insured the debts, which contributed to the overall consumer confidence, the lack of which had contributed to the economic devastation of the Great Depression. In the modern era, the practice of the FHA is to oversee the lending money to people who have at least a 500 credit score.
If the person's credit score is from 500-579, then the person must put 10 percent down. If the person's credit score is from 580-619, then the person must put down 5 percent. This is in contrast to standard mortgage loans where the person is allowed, in certain circumstances, to put down as little as 3 percent.
The Mortgage Insurance Difference on for FHA and Conventional Loans in Kentucky
There are three key differences:
Standard mortgages require you to have personal mortgage insurance, or PMI, if the homeowner has less than 20 percent equity in the home.
Standard mortgages require only PMI. FHA loans require borrowers to have two kinds of insurance: the up front mortgage insurance premium, or UFMIP, and the mortgage insurance premium, or MIP.
The cost of PMI is tied to a borrowers credit score whereas FHA insurance is not.
While FHA insurance remains the same cost regardless of a borrower's debt-to-income ratio, it is the more expensive of the two options. Still, the less expensive standard PMI is unavailable to borrowers whose credit is lower than 620. Also, PMI ismore expensive when a borrower's credit is between 620 and 680. A borrower is allowed to cancel PMI before the expiration of the term, too, whereas an FHA borrower is not allowed to do so.
In both standard and FHA loans, the insurance in question protects the lender more than the borrower. Basically, it's there to make sure the lender gets paid in the case of a default. Remember, even though the FHA is a government program, the money comes from private lenders. The FHA insurance makes it more palatable for those lenders to lend to people without good credit because it protects them from loss.
The Final Word
When borrowing money for a mortgage, the borrower should carefully weigh the pros and cons of each kind of mortgage before proceeding. Of course, with solid credit, good income, and a good payment history, it probably wouldn't be necessary to take out an FHA loan, but every case is different, and borrowers should consider all options before "signing on the dotted line."
Conventional vs. FHA vs. VA loans
|CONVENTIONAL LOANS||FHA LOANS||VA LOANS|
|Minimum Credit Score||620||500 with 10% down; 580 with 3.5% down||No minimum score|
|Loan Limits||$548,250 to $822,375 for conforming loans||$356,362 to $822,375 for single-family homes||No loan limits|
|Down payment Minimum||3%||3.5%||No down payment required|
|Extra Fees||PMI required with down payment of less than 20%||Upfront mortgage insurance of 1.75% and ongoing fee of 0.45% to 1.05%||Upfront funding fee of 1.4% to 3.6%|
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Low down payments:
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