Kentucky Mortgage Forbearance Guidelines

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky Mortgage Forbearance Guidelines for Fanni...


Conventional Mortgage Loans by Fannie Mae



Mortgage credit history for any mortgage which the borrower is obligated as borrower, co-borrower, or co-signer may be
considered acceptable if it meets one of the following:
 The borrower has made all payments due on time, prior to subject loan Note date, even though the loan was in
forbearance, or
 The borrower has not made one or more payments due, and the late payments or forbearance has been resolved
per one of these acceptable resolution plans:
Resolution Plans* Eligibility Requirements
Reinstatement ▪ Any missed payments must be made

▪ Funds to reinstate after application must be documented from eligible source
▪ Funds from the current transaction may not be used to reinstate mortgage
Repayment Plan ▪ Must have made 3 timely** payments under the repayment plan, or

▪ Repayment plan has been completed
▪ Funds from the current transaction may satisfy the existing mortgage in full
Payment Deferral ▪ Must have made 3 timely** payments after executing the deferral agreement
▪ Funds from the current transaction may satisfy the existing mortgage in full

Modification ▪ Must have made 3 timely** payments under trial modification

▪ Funds from the current transaction may satisfy the existing mortgage in full
Any Other Loss Mitigation Option ▪ Must have completed successfully or made a minimum of 3 timely payments
▪ Funds from the current transaction may satisfy the existing mortgage in full
*If loan was in forbearance, provide documentation from servicer showing the exit from forbearance into one of the
acceptable resolution plans.
** Payments cannot be made in advance to meet the 3 required payments.
 For purposes of determining acceptable mortgage payment history, missed payments under a COVID-19 forbearance
are not considered late payments.
 The above guidance does not apply to Freddie Mac Enhanced Refinance or Fannie Mae High LTV Refinance
transactions.





VA ELIGIBILITY


 Borrowers must provide a Letter of Explanation (LOE) stating the circumstances behind the forbearance.
Documentation will be required to verify the items listed in the LOE have been resolved.
 If the forbearance was on a non-subject property, the forbearance must be resolved, and new payment (if
applicable) must be included in the DTI.
 A Veteran who was granted a forbearance and continues to make payments as agreed under the terms of original
note is not considered delinquent or late and will be treated as if not in forbearance status, provided that the
forbearance plan is terminated prior to closing.


Cash-Out Refinances


 Refinance of mortgages that are in a current forbearance status, where mortgage payments are not being made,
including mortgages under the CARES Act forbearance protection program, are not eligible. The forbearance plan
must be completed/terminated prior to closing.
 Borrower in forbearance with missed payments- Borrower must have made 6 consecutive months’ timely payments
post-forbearance, regardless of method of resolution of the forbearance.
 Missed payments due to COVID-19 forbearance cannot count toward seasoning. Borrower must have made six
consecutive monthly payments prior to the CARES Act forbearance or six consecutive payments will be required post
forbearance. In addition, loans that have been modified must meet seasoning requirements based on the modified
note first payment date. The new note date must be on or after the later of: The date that is 210 days after the date
on which the first modified monthly payment was due on the mortgage being refinanced, and the date on which 6
modified payments have been made on the mortgage being refinanced.

IRRRL Refinances

 Borrowers must be current at time of application (any skipped payments under a COVID-19 forbearance have since
been made).
 Borrower in forbearance with no missed payments- standard underwriting applies.
 Borrower in forbearance with missed payments- Borrower must have made 6 consecutive months’ timely payments
post-forbearance.
 Loans must still meet loan seasoning, fee recoupment, discount points, and net tangible benefit requirements.
 Missed payments due to COVID-19 forbearance cannot count toward seasoning. Borrower must have made six
consecutive monthly payments prior to the CARES Act forbearance or will need to make six consecutive payments
post forbearance. In addition, loans that have been modified must meet seasoning requirements based on the
modified note first payment date. The new note date must be on or after the later of: The date that is 210 days after
the date on which the first modified monthly payment was due on the mortgage being refinanced, and the date on
which 6 modified payments have been made on the mortgage being refinanced.



FHA ELIGIBILITY


*NOTE: FHA Guidance is permanent, not temporary, and applies where a Forbearance Plan was granted due to COVID-19, Presidentially Declared major
disaster or other hardship. This new guidance has been included in the updated 4000.1 Handbook.
Payment
History
Documentation

When any mortgage reflects payments under a Modification or Forbearance Plan within 12 months prior to case number
assignment, obtain:
 Copy of Modification or Forbearance Plan* and
 Evidence the payment amount and the date of payments during the agreement
* A copy of Forbearance Plan due to the COVID-19 National Emergency is not required. Must be able to determine the reason for
forbearance.


Borrowers that are or were in Forbearance


Maximum base loan amount for a Streamline of an owner-occupied primary residence and HUD-approved second home is
the lesser of:
 The outstanding principal balance of the existing mortgage (including suspended payments from forbearance) as of
the month prior to mortgage disbursement; plus:
o Interest due on the existing mortgage
o Late charges and escrow shortages
o MIP due on existing mortgage; or
 The original principal balance of the existing mortgage (including financed UFMIP)
 Less any refund of UFMIP

New FHA Insured Mortgage Eligibility


 Any active forbearance plan must be terminated.
 Borrowers granted forbearance but who continued to make all payments as agreed under the terms of original Note
are not considered delinquent. No additional payment seasoning post forbearance required.
 Borrowers granted forbearance but who did not continue to make payments require additional mortgage payment
seasoning post-forbearance that document satisfactory, consecutive monthly payments. See chart below for details:
Transaction Additional Requirements
Purchase Must make three consecutive payments* post-forbearance or

▪ If home sold prior to making three payments, must be manually underwritten

Cash-Out Refinance Must make 12 consecutive payments* post-forbearance

GNMA Seasoning: Loans that have been modified must meet seasoning
requirements based on the modified note first payment date.



No Cash Out Refinance Must make three consecutive payments* post-forbearance (six payments if

mortgage was modified after forbearance)

Simple Refinance Must make three consecutive payments* post-forbearance
*NOTE: The consecutive payments must be documented on the credit report and read by AUS to follow AUS approval.
Streamline Refinance  Missed payments under forbearance do not count toward mortgage

seasoning requirements
 If mortgage modified after forbearance, six payments under
modification required.
Non-Credit Qualifying
 At time of case number assignment, borrower has made three post
forbearance payments.
Credit Qualifying
 At time of case number assignment, borrower is still in mortgage
payment forbearance or has made less than three monthly payments,
and
 Has made all mortgage payments due within the month due for the six
months prior to forbearance
***ALL Streamlines: GNMA Seasoning: Loans that have been modified must
meet seasoning requirements based on the modified note first payment date.

References FHA Mortgagee Letter 2020-30:


USDA ELIGIBILITY




 For each open mortgage, confirm the forbearance status and payment history.
 Borrowers who have a current mortgage that was placed in COVID-19 forbearance, but continued to make all
payments as scheduled, are not subject to additional seasoning.
 Purchases: Borrowers who missed any payments as allowed under the forbearance plan must have resumed
repayment of their mortgage loan for a period of at least 3 months prior to applying for a new loan.
 Refinances: the loan must have closed at least 12 months prior to the request to refinance, borrower must have
resumed making payments for a period of at least 3 months and have a total 180-day period of satisfactory
payments, excluding the time the loan was in forbearance.




LOANS MADE TO BORROWERS POST-FORBEARANCE


The guidance herein is based on Agency and Investor eligibility. The below is a summary and not all-inclusive of Agency announcements. For full

Agency guidance see the Resources section under each program section below.


IN ALL CASES THE FOLLOWING REQUIREMENTS APPLY:


 BORROWER MAY NOT BE IN FORBEARANCE ON THE SUBJECT PROPERTY MORTGAGE OR ANY OTHER NON-SUBJECT PROPERTY
MORTGAGES AT THE TIME OF LOAN CLOSING.
 Explanation from Borrower(s) for forbearance reason and how any hardship has been overcome is required. If borrower faced hardship,
documentation supporting resolution is required. (e.g. borrower was furloughed for a time and is now back to work and employer
documentation supports).
 Payment history required for most recent 12-months to see payment made dates to determine if borrower skipped any payments.
 Documentation from servicer that forbearance has ended.
 Asset sourcing to document funds for any lump-sum payments made to reinstate/bring mortgage current- 2 months consecutive
statements required.
 If borrower entered into modification/work out plan rather than reinstating the forbearance, a copy of plan must be obtained. See
applicable Agency guidance for eligibility in this case.


Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

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

 


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Inspecting and Testing Requirements for a Kentucky FHA, VA, Conventional and USDA Mortgage loan.

 

Inspection & Testing Requirements for a Kentucky Mortgage 

Each Kentucky Home loan program for Conventional, FHA, VA and USDA government mortgage loans  has slightly different guidelines when it comes to water tests, septic inspections, and pest/termite inspections. Here's a quick comparison of the general guidelines for each program.



Inspecting and Testing Requirements for a Kentucky FHA, VA, Conventional and USDA Mortgage loan. Water test, septic test, termite test, well or septic


FHA vs. Conventional Loans – What is the Difference?

FHA vs. Conventional Loans – What is the Difference?: pOne of the most common questions from first-time buyers pertains to the difference between an FHA and a conventional loan, and which one is best for them. We'll clearly define each one and go into further detail about which one might be best for you in your pursuit of purchasing a home./p


fha vs. conventional comparison chart


What is the difference between Conventional, FHA and VA Mortgage loans in Kentucky?

 

Conventional vs. FHA vs. VA loans in Kentucky

 I will outline below the credit score, loan limits, down payment and mortgage insurance requirements for FHA, VA and Conventional Mortgage Loans in Kentucky!








Upfront funding fee of 1.4% to 3.6%

Thank you!- Joel Lobb
Licensed Loan Officer (NMLS# 57916)
American Mortgage Solutions, Inc. (NMLS# 1364)
Email: joel@loansolutionsnow.com

Text or call: 502-905-3708



https://twitter.com/i/status/1184873239249592326







fha vs. conventional comparison chart


Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: What is the difference between Conventional, FHA a...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: What is the difference between Conventional, FHA a...:   Conventional vs. FHA vs. VA loans in Kentucky  I will outline below the credit score, loan limits, down payment and mortgage insurance req...

Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying

 

Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying

Do you and your partner have very different credit scores? Great news! You may have access to more loan program options than you thought!

Here's the deal... All lenders pull FICO scores from each of the three credit bureaus to qualify a borrower. In situations with co-applicants, we will use the lower of the two middle scores for qualifying purposes. Historically, to do a Conventional Loan, both mid-scores would have to be above 620.
Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying. This critical change may help many borrowers qualify and have increased advantages when putting an offer in on a home.
Long story short - we can help you now more than ever. Curious if this will help you? Reach out to me today, and we can investigate.
PS: These changes are effective September 18th, 2021 and there are still a lot of other variables to consider and guidelines are always subject to change. Let's start a conversation today! Message me for more details or to get started.

Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying
Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying    Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying Do you and your partner have very different credit scores? Great news!  You may have access to more loan program options than you thought!    Here's the deal... All lenders pull FICO scores from each of the three credit bureaus to qualify a borrower.  In situations with co-applicants, we will use the lower of the two middle scores for qualifying purposes. Historically, to do a Conventional Loan, both mid-scores would have to be above 620. Effective on 9/18/21, Fannie Mae announced that their Automated Underwriting System will now take an AVERAGE of the two scores for qualifying.  This critical change may help many borrowers qualify and have increased advantages when putting an offer in on a home. Long story short - we can help you now more than ever.  Curious if this will help you?  Reach out to me today, and we can investigate. PS: These changes are effective September 18th, 2021 and there are still a lot of other variables to consider and guidelines are always subject to change.  Let's start a conversation today!  Message me for more details or to get started.



Mortgage Application Checklist of Documents Needed below  ๐Ÿ‘‡

W-2 forms (previous 2 years)
Paycheck stubs (last 30 days - most current)
Employer name and address (2 year history including any gaps)
Bank accounts statement (recent 2 months – all pages
Statements for 401(k)s, stocks and other investments (most recent)
federal tax returns (previous 2 years)
Residency history (2 year history)
Photo identification for applicant and co-applicant (valid Driver’s License





click on link for mortgage pre-approval


Joel Lobb (NMLS#57916)


Senior Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223


Company ID #1364 | MB73346

Text/call 502-905-3708


kentuckyloan@gmail.com



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#57916http://www.nmlsconsumeraccess.org/


NMLS Consumer Access for Joel Lobb 

Accessibility for Website 

Privacy Policy





Joel Lobb 

Joel Lobb, American Mortgage Solutions (Statewide)

Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”

When you’re ready to purchase a home in Joel's area, contact him at:
Phone: 502-905-3708
Email: Kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com







What is the minimum Credit Score Needed to Buy a House and get a Kentucky Mortgage Loan?





Credit Score Requirements for FHA, VA, USDA and Conventional Loans in Kentucky
Credit Score Requirements for FHA, VA, USDA and Conventional Loans in Kentucky

POPULAR PROGRAMS THAT KENTUCKY HOME BUYERS USE TO PURCHASE THEIR FIRST HOME.



Conventional Loan

• At least 3%-5% down• Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home. Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.
Kentucky USDA Rural Housing Program

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.
Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.
They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in an rural area

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern Kentucky .There is a map link below to see the qualifying areas.
Thee is also a max household income limits with most cutoff starting at 90,200 for a family of four, and up to $119,000 for a family of five or more.
The income limits change every spring, so make sure and check to see what updated income limits are.
USDA requires 3 years removed from bankruptcy and foreclosure
There is no max USDA loan limit.

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score.
The current mortgage insurance requirements are kinda steep when compared to USDA, VA , but the rates are usually good so it can counteracts the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.
THe mi premiums are for life of loan like USDA.
FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure. FHA loan limits in Kentucky are set around $356,000 and below.

VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have an funding fee like USDA, but it is higher starting at 2% for first time use, and 3% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.
VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and no max loan limits in Kentucky
Most VA lenders I work with will want a 580 credit score, even though VA says in their guidelines there is no minimum score, good luck finding a lender
VA requires 2 years removed from bankruptcy or foreclosure
Clear Cavirs needed to for a VA loan.

This type of loan is administered by KHC in the state of Kentucky. They typically have $4500 to $6000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.
Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.
KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at KHC requires 660 credit score.
The max debt to income ratios are set at 40% and 50% respectively.








Joel Lobb (NMLS#57916)
Senior Loan Officer
Text/call 502-905-3708

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3

Louisville, KY 40223
Company ID #1364 | MB73346


kentuckyloan@gmail.com


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/

Estimated Sale Price: $110,000
• Rate - 3.75%
• APR - 4.854%
• Down payment - $3850.00
• Principal & Interest - $500.20
• Insurance (estimated) - $75
• Taxes - $47.92
• PMI - $74.56

TOTAL PAYMENT INCLUDING
TAXES + INSURANCE:
$697.68 a month!

*Rates effective , based on 740 FICO score and subject to change. ARP may vary. Loan terms are fixed rate 30 year loans and payment will not rise over the life of the loan. Not all applicants will qualify for advertised terms and conditions, must meet underwriting guidelines and are subject to credit review and approval. This does not constitute a commitment to lend. The disclosed rates, payments, homeowners insurance and mortgage insurance are estimates and may vary according to lender guidelines. Property taxes based on current assessed value with homestead and mortgage exemptions in place. Equal Housing Lender.