๐—ช๐—ต๐—ฎ๐˜ ๐—ถ๐˜€ ๐—ฎ Kentucky ๐—ฐ๐—ผ๐—ป๐˜ƒ๐—ฒ๐—ป๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—น ๐—น๐—ผ๐—ฎ๐—ป, ๐—ฎ๐—ป๐—ฑ ๐—ต๐—ผ๐˜„ ๐—ถ๐˜€ ๐—ถ๐˜ ๐—ฑ๐—ถ๐—ณ๐—ณ๐—ฒ๐—ฟ๐—ฒ๐—ป๐˜ ๐—ณ๐—ฟ๐—ผ๐—บ ๐—ฎ๐—ป Kentucky ๐—™๐—›๐—” ๐—น๐—ผ๐—ฎ๐—ป?



Unlike Kentucky FHA loans, conventional loans are ๐™‰๐™Š๐™ backed by a government agency, but they do follow specific guidelines set by Conventional Mortgage Kentucky  Fannie Mae and Freddie Mac, federally backed companies that buy and guarantee mortgages. 


๐—ง๐—ต๐—ฒ ๐—ถ๐—บ๐—ฝ๐—ผ๐—ฟ๐˜๐—ฎ๐—ป๐˜ ๐˜๐—ต๐—ถ๐—ป๐—ด for you to know is that conventional loans have many benefits, including:

✔️ Down payments as low as 3%
✔️ No upfront mortgage insurance premium
✔️ Monthly mortgage insurance that automatically falls off once the home has been paid down to 78% of the home’s value
✔️ The ability to choose between an adjustable-rate or fixed-rate mortgage with different term lengths
✔️ Use on different property types, including primary residences, second homes, and investment properties
✔ Maximum Loan Limits set each year. 
✔ PMI based on credit score and equity position



Kentucky Fannie Mae Loans versus Kentucky FHA Loans



Kentucky FHA Loan Guidelines for Credit Score, Income, Bankruptcy and Foreclosure Shot Sale






fha vs fannie mae loans


FHA vs Conventional Infograhic
Non Occupant Co-Borrower for Fannie Mae and FHA Loans. 

The differences below:
Kentucky Fannie Mae Loans
  • Allowed on all Purchases up to 95% LTV
  • Allowed on all Refinances including Cash out
  • Does not have to be a Family Member

Kentucky FHA Loans
  • Limited to 75% LTV.  LTV can be increased to max 96.5% LTV provided:
  1. Non occupying borrower is not the seller in the transaction
  2. Property is not a 2-4 unit property
  3. Has to be a family member
  • Not allowed on Cash out Refinances
  • Non Occupant Co Borrowers must either be United State Citizens or have a Principal Residence in the United States.
Non arms Length / Identity of Interest for FHA and Fannie Mae Loans In KY
Fannie Mae Loans(non arms length)
  • Underwriter must confirm transaction is not a bail out
  • Gift of Equity is allowed
  • No additional restrictions apply

FHA loans (Identity of Interest)
  • Gift of Equity is allowed
  • LTV limited to 85% unless
  1. Purchase is the principle residence of another Family Member
  2. Borrower has been a tenant in property for 6 months predating the sales contract.  A lease or other written evidence is needed to verify occupancy
  3. Borrower is an employee of the Builder of the property
  • If a Family Member is providing secondary financing for the transaction, additional guidelines apply.  See HUD 4000.1 II.A.4.(3) for additional guidelines.


Image result for fha vs fannie mae mortgage loan differences








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


Can You Buy A House After Bankruptcy

Can You Buy A House After Bankruptcy

Can You Buy A House After Bankruptcy?



In some cases, you have exhausted your emergency fund, and have decided there is no option other than to file for bankruptcy to pay off your debt. You may decide to work with a bankruptcy attorney. Plus, you should know all real estate agents and mortgage lenders who have experience working with people with bankruptcy on their credit score.

When you declare bankruptcy, you may find it hard to improve your credit score and financial condition. Even worse, you may think you will never be able to buy a house again, but the reality is different.

Who wants bankruptcy? Of course, no one wants to fall into this drastic situation. But people dealing with financial troubles may think it is the only way to get out of debts and start from the beginning.

However, bankruptcy may minimize financial stress and allow you to focus on making positive financial decisions for your future. So are you ready to move forward and make your dream of owning a home come true? So, adopt the following strategies to achieve the goal.

How Long After Bankruptcy Can I Buy a House?

You can buy a house approximately one or two years after filing for bankruptcy, only if you restore your credit and avoid new debt. Filing a Chapter 7 or Chapter 13 bankruptcy will impact your credit report and put a negative score on your credit. But it does not mean that you cannot buy your own house.

Chapter 7 Bankruptcy

The standard type of bankruptcy is Chapter 7, in which the court wipes down your qualifying debts. In this case, your credit score is affected. If you file Chapter 7 bankruptcy, you have to wait for about four years after the court dismisses your bankruptcy to make you eligible for a conventional loan.

However, government-backed mortgage loans are more complex. You have to wait for about three years after your bankruptcies' dismissal to qualify for a USDA loan. At the same time, you have to wait for about two years in order to qualify for a VA or FHA loan.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy involves the restructuring of your debts. That means you have to make scheduled payments to your creditors. It does not have a substantial effect on your credit score. Moreover, you can keep your assets as well. While regulations for chapter 13 are less severe than Chapter 7, these loans also have a waiting period.

Conventional loans after chapter 13 bankruptcy usually require a waiting period depending on the court’s choice to handle your bankruptcy. Generally, the waiting period is about four years from the date you file bankruptcy and two years from your dismissal date.

While chapter 7 bankruptcy standards are relaxed for government-backed loans, USDA loans have a 1-year waiting period after filing for Chapter 13 bankruptcy. FHA and VA loans need a court to dismiss or discharge approval of your loan before your apply. However, the waiting period remains the same in both cases, whether dismissal or discharge.

Louisville Kentucky First Time Home Buyer Programs and Resources


Kentucky First Time Home Buyer Programs and Resources



Qualifying for a Kentucky Mortgage Loan


If you are a potential Louisville Kentucky First Time home buyer first time home buyer in Louisville Kentucky, we welcome you! It is our utmost desire to assist you in reaching the goal of buying your first home. We've gathered the most helpful, beneficial resources together on this page to make things as easy as possible for you.


We have access to all the Louisville Kentucky First Time home Buyers programs including, FHA, VA, KHC, and USDA, Rural Housing Zero Down home loans--Our site is updated daily for Louisville Kentucky first time home buyers with the best programs and rates available.

What is available for first time home buyer financial programs in Kentucky?The first place to start in that search is the Kentucky Housing Corporation. They provide generous assistance to first time home buyers in the form of grants to help with the down payment as well as closing costs.

The Kentucky Housing Corporation has a down payment assistance program for eligible homebuyers who meet specific moderate income limits to help with downpayment and/or closing costs. Check and see what is available and if you qualify....

To visit the website of the Kentucky Housing Corporation Zero Down Home Loans for Ky Home Buyers First Time. In certain situations they will provide loans for the down payment for first time home buyers in Louisville Kentucky and Jefferson County Kentucky. . It is a great program for first time home buyers and is worth investigating. Simply go to their website above for complete information.

There are other Louisville, Kentucky first time homeownership programs available through the Kentucky Housing Corporation. You can visit the website by clicking here. You'll find information on income limits in order to qualify for the first time home buyer program, program descriptions, a list of approved lenders, an interest rate lock program, and a host of other first time home buyer resources.

In addition to the state programs, there are federal funds and grants available to residents and first time home buyers in Kentucky through the Homes and Communities program of the US Department of Housing and Urban Development. On their website you'll find complete grant information, application forms, description of available funds, as well as many other helpful tools.

Every potential first time home buyer should investigate what they have to offer. You can visit the website by clicking on US Dept. of Housing and Urban Development. Finally, there is a website that lists all grant programs available through the federal government, Grants.gov. Louisville, Kentucky First time home buyers should plan to spend the required time investigating to determine how many specific grants they may qualify for. You can visit the website by clicking here.

We will be adding more resources to this page as we discover them and/or they become available to first time home buyers in Kentucky, so please do bookmark this site and check back often! In the meantime, please do look around and get the most of the information that is here.

Kentucky First Time Home Buyer Grants and Loan Programs

To some potential buyers, particularly first-time buyers, the prospect of meeting a mortgage lender may seem a little scary. Lenders ask a lot of questions because they want to help you get a mortgage. If you work with a lender before you decide on a home, you will know whether you’ll qualify for a mortgage large enough to finance the home you want.

It may seem that your lender needs to know everything about you for the application, but actually, all the lender needs to know about is employment, finances, and information about the home you’re buying (but you can be pre-approved before you choose a home). You will, however, need to provide quite a few details about these topics. The goal is to arrive at a monthly payment you can afford without creating financial hardships. Here's an idea of what lenders consider when they are qualifying you for a loan:

Your household income and expenses

Lenders look at your income in ways other than the total amount; how you earn it is also important. For example, income from bonuses, commissions and overtime can vary from year to year. If these sources make up a large percentage of your income, your lender will want to know how reliable they are.

Your lender will also consider the relationship between your income and expenses. Generally, your fixed housing expenses (mortgage payment, insurance, and property taxes, but not repairs or maintenance) should not be more than 28 percent of your gross monthly income, although this is not an absolute rule. Your lender will also consider other long-term debts, such as car loans or college loans. It is a good idea to bring the following when you meet with your lender:

Income

Employment, salary and bonuses, and any other source of income for the past two years (bring your most recent pay stub, previous year’s W-2 forms, and tax returns if possible)
The most recent account statement showing the amount of any dividend and interest income you received during the past two years 

Official documentation to support the amount of any other regular income you may receive (alimony, child support, etc.) Job stability is a factor that a mortgage lender will look for, and two years at your current job helps, but this also is not an absolute requirement. If you change jobs but stay in the same line of work, you should not have a problem — especially if the job change is an advancement or increase in income.

Credit score

Your credit score also helps to predict how likely you are to repay the mortgage debt. Credit scores will determine if you qualify for the loan, what your rate is, and mortgage insurance payments each month. Typical fico scores wanted for an automated approval run around 620 for an FHA loan and VA loan, 640 for a USDA, 640 for a KHC Loan with Down Payment Assistance, and 620 for an AU approval for Fannie Mae Loan.

Personal assets

Current balances and recent statements for any bank accounts, including checking and savings
Most recent account statement showing current market value of any investments you may have, such as stocks, bonds or certificates of deposit
Documentation showing interest in retirement funds
Face amount and cash value of life insurance policies
Value of significant pieces of personal property, including automobiles
Debt Information
The balances and account numbers of your current loans and debts, including car loans, credit card balances and any other loans you may have 

Underwriting

The lender does the best possible job of ensuring that a borrower qualifies for a loan. The final decision, however, rests with the lender's underwriter, who measures the total risk that the specific investor, who backs up the loan, is taking. Each investor (or investment company) has its own underwriting guidelines (often using statistical models), so while the underwriters evaluate many of the same factors as the lenders, they may look more closely at some areas than others, depending on the guidelines. For example, while the lender may have pre-approved you before you chose a home, by the time you get to underwriting, you will have chosen the property you want to buy, and the underwriter will review the property details closely.However, most of the information used is the same as that used by the lender, but it may be evaluated differently. The underwriter will evaluate the borrower's ability to pay (income), willingness to pay (credit history), and the collateral (property). As underwriters analyze each of these risks (although this is not a complete list), here are some possible guidelines they may use:

Income

Is the income sufficient to repay the loan? Ratio guidelines of 31 percent payment-to-income and 43 percent total debt-to-income are standard, but some programs allow for higher ratios. This is the typical manual underwrite for a score that does not fit the current Automated Underwriting Engines used for Fannie Mae (DO), FHA, VA, USDA and Rural Housing (GUS) 

Is the income stable from month to month and year to year? 

Has the borrower been on his/her current job and in the same industry for a sufficient amount of time? A minimum of two years is the standard guideline, but exceptions can be made.
Can the income be verified?


Credit

Does the borrower have a good credit score-Typically 740 or higher will yield the best rates and lowest mortgage insurance for a conventional loan? FHA mortgage insurance and VA mortgage insurance is the same no matter what your credit score is. 
 
Does the borrower have late payments, collections, or a bankruptcy? If so, is there an explanation that can be provided for the late payments/collections/bankruptcy? 
FHA, VA requires 2 years removed from bankruptcy and USDA requires 3 years removed from bankruptcy. 
 
Fannie Mae requires 4-7 years after a bankruptcy. 
 
Does the borrower have excessive monthly debts to repay? Typical Debt to income ratios for a no money down loan are limited to 45% of your total gross monthly income for a USDA or KHC loan.
Is the borrower maxed out on credit cards? 

Pay down your credit card balances to less than 25% of your credit limits before you apply for a mortgage loan.

Collateral

Is the property worth what the borrower is paying for it? If not, the lender will not loan an amount in excess of the value. If the appraisal comes back less than the offer on the house, sometimes you can renegotiate the terms of the purchase contract with the seller and his/her real estate, agent.Some borrowers agree to purchase the home at the price they originally offer and pay the difference between the loan and the sales price. You need to have the disposable cash to do this, and you should assess whether the property is likely to hold its value. You also need to consider the type of loan for which you have qualified. 

If you need to move suddenly and have a large loan relative to the original value, and the property has not held its value, you could face a difficult cash shortfall when you go to pay off your loan.Is the property an acceptable type of property, and does it meet coding requirements and zoning restrictions? Is the property comparable to other properties in the area? 

Surveys are common and are used to get an accurate measurement of the land that goes with the property you are purchasing. The person who prepares the survey should be a licensed land surveyor. The survey shows the location of the land, dimensions of the land and any improvements.Encroachments are improvements to the property that illegally violate another's property or their right to use the property, such as building a fence that is actually on your neighbor's property instead of yours, or constructing a building that crosses from your property to another’s property without their permission. Evidence of encroachments can slow the final approval process.

The down payment

A downpayment is a percentage of your home's value. The type of mortgage you choose determines the down payment you will need. It can range from zero to 20 percent, or more if you wish.A number of loans are available that do not require high down payments, particularly for first-time home buyers. 

FHA loans, for example, may require less than 5 percent down, and veterans or those on active duty in the military can obtain loans with no downpayment at all. USDA loans are offered to rural home buyers with a no down payment option just like VA loans.In addition to downpayment assistance offered through Kentucky Housing where you don't have to put a down payment down with income caps for both KHC and USDA loans.

These programs may have less strict guidelines for loan approval, such as allowing a higher ratio of payment to income or debt to income. They also may accept alternative forms of credit history if you have not established credit through traditional means — credit cards and car loans. For example, a lender could look at the history of utility payments and rent payments to determine credit worthiness






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louisville urban league home ownership progr

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3

Louisville, KY 40223


Company ID #1364 | MB73346


Text/call 502-905-3708


kentuckyloan@gmail.com



The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
, NMLS ID# 57916, (www.nmlsconsumeraccess.org). I lend in the following states: Kentucky


Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Mortgage Loan Requirements

Kentucky USDA Rural Housing Mortgage Lender: Kentucky USDA Mortgage Loan Requirements: Kentucky Rural Housing USDA loans require One of the biggest eligibility requirements is that the property be located in a designated rur...


Kentucky USDA Mortgage Loan Requirements


Student Loan Guidelines For Qualifying for a Mortgage Loan in Kentucky.


Loan type
Student Loan Payment Requirement
FHA
Must be included in the borrower’s liabilities regardless of the payment type or
status. The payment amount must be either:
 The greater of:
·        ..5% of the outstanding balance on the loan or
·        Monthly payment reported on the borrower’s credit report, or
 The servicer’s documented payment provided the payment will fully amortize
the loan over the repayment term period
VA
Deferred
A payment does not need to be included if written evidence supports that the
student loan debt will be deferred beyond 12 months of closing.
In Repayment
Include loans with payments starting within 12 months. Calculate threshold
payment as a rate of 5% of outstanding balance divided by 12 months. If credit
report payment is higher, use credit report payment. If current documentation
from student loan servicer reflects actual terms and payment for each loan,
the verified payments may be used even if less than the threshold payment
calculation.
USDA
Fixed Payment
A permanent amortized, fixed payment is used when documentation supports fixed payment, interest and term.
Non-Fixed payment
Use .5% of the loan balance reflected on the credit report. Payment arrangements
that are deferred or non-fixed (Income Based Repayment (IBR), graduated, adjustable, interest only, etc.) may not be used.
Fannie
Loans in Repayment Period
 If provided, use the credit report payment
 If credit report is incorrect, obtain student loan documentation from the servicer
to verify the payment used for qualification
Income Driven
Repayment Plan
Use the student loan documentation to verify the actual monthly payment. Borrower
may be qualified with a $0 payment if the documentation supports it.
Loans in Deferment or
Forbearance
 A payment equal to 1% of the outstanding student loan balance (even if this
amount is lower than the actual fully amortizing payment) or
 A fully amortizing payment using the documented loan repayment terms
Freddie
Loans in Repayment
Period
Use the greater of payment reported on credit report or .5% of the higher of original
or outstanding loan balance as shown on credit report.
Loans in Deferment or
Forbearance
Use greater of payment reported on credit report or .5% of the higher of original or
current outstanding loan balance as shown on the credit report.
Loan Forgiveness
Cancelation
Discharge
Employment Contingent
Repayment
Programs
Payment may be excluded if file contains documentation that indicates:
 Monthly payment is deferred and/or in forbearance and full balance of the loan will be forgiven, canceled, discharged or will be paid if qualified for an employment-contingent repayment program and
 Borrower currently meets requirements for the student loan forgiveness/cancelation program
Obtain documentation from the student loan servicer to show the loan will be forgiven, canceled, discharged or that the borrower qualifies and is approved under an employment contingent repayment program that will extinguish the debt.

-- 








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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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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