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

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Zero Down Kentucky Mortgages

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Zero Down Kentucky Mortgages: ZERO DOWN HOME LOANS IN KENTUCKY There are a few programs that feature zero down payment in Kentucky for Home buyers : USDA and VA...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...

Kentucky USDA Rural Housing Mortgage Lender: Kentucky Rural Housing USDA Maximum Income by Coun...: 2022 Kentucky USDA Loan Income Limits for Kentucky Counties  Kentucky USDA loan income limits vary by location and household size wit...


#usdaloan #mortgage #ruralhousing #usdaloan #kentuckymortgage #firstimebuyer #rhsloan

Kentucky Rural Housing USDA Loan Program for 2022 ust recently increased their income limits Families of 4 or less people can now have a maximum annual income of $103,500 (used to be $90,000) in most counties and 5 or more people in the household income can now be a maximum of $136,600  What does that mean? It means if before you were told you make too much to qualify for a Kentucky USDA loan, you might qualify now



New Income limits for most counties (*) in Kentucky are $103,500 for a household family of four and household families of five or more  can make up to $136,600 with the new changes for 
2022 Kentucky USDA Income limits, the Jefferson County Louisville, KY Metro area (**) saw an increase of $103,500 for a family of four and up to $136,600 for a family of five or more. The metro area surrounding counties of Jefferson County includes Oldham, Bullitt, Spencer are included in these higher income limits for USDA loans.
Remember,  the entire  Jefferson County and Fayette County  Kentucky counties are not eligible for USDA loans. Along with parts of the following counties Daviess (Owensboro), Mccracken (Paducah), Madison County, (Richmond), Clark County (Winchester), Warren (Bowling Green), Hardin (Fort Knox and Radcliff), Bullitt(Hillview, Maryville, Zoneton, Fairdale, Brooks), Franklin, (Frankfort), Henderson (Henderson City Limits), Christian County (Hopkinsville, Fort Campbell), Boyd County (Ashland city limits) and the most Northern Parts of Boone, Kenton, Campbell Counties of Northern Kentucky (Covington, Florence, Richwood, Hebron, Ludlow, Fort Thomas, Bellevue, Ryle, Beechwood, ) 

The Northern Kentucky Counties (***) of Boon, Kenton, Campbell, Bracken, Gallatin, and Pendleton are $109,850 for a household of four or less and up to $145,000 for a family of five or more.
USDA Eligible Areas in Northern Kentucky
Burlington
Hebron
Independence
Walton
Alexandria
Highland Heights
Cold Springs
Grant County
Owen County
Pendleton County
USDA Income Limits
Boone, Kenton & Campbell Counties (N. KY)

$109,850 (family size 1-4)
$145,000 (family size 5 or more)
Grant, Owen & Pendleton Counties (N. KY)

$103,500 (family size 1-4)
$136,600  (family size 5 or more)




Most are familiar with USDA Rural Housing Loan Program  being a great no money down program available and it is not just for Kentucky first time buyers.

Kentucky FHA Mortgage Guidelines in Video







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

 


Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...

Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...: Basic Understanding of a Kentucky VA Mortgage Loan Approval Process. The VA makes a guarantee to the lending institution (the insurance)-for...


Basic Understanding of a Kentucky VA Mortgage Loan Approval Process.

The VA makes a guarantee to the lending institution (the

insurance)-for 25% of the loan amount (from a lenders

perspective the effective LTV is 75%).

Because the risk to the bank is reduced, the bank can provide

more affordable loans to the Veteran:

• Eliminating the need for a down payment (100% Mortgage)

• Provides the Veterans favorable interest rates

• Eliminating Mortgage Insurance (NO PMI)

Crushing the Myths of the VA Loan

• VA Mortgage Benefits do not expire.

• You can use your VA benefits as many times as you wish.

• You can have more than 1 at a time. (See occupancy rules)

• There is no limit to the size of a VA loan. (There is a county

loan limit, but veterans can purchase above the county loan

limit with a 25% down payment)

• Credit and risk is reviewed differently by each bank

and lender.

• Even with a foreclosure or short sale, the veteran may still be

able to buy a house with a VA loan. (See burnt entitlement,

veteran might have reduced buying power, but can still

use the VA loan). The VA understands that bad things can

happen to good people.

• VA Appraisals are significantly different than they use to be.


What military documents would I need
to have in order to get a VA mortgage?

I don’t know if I still have my documents from when I

served. How can I retrieve them?

There are three websites that should be able to help you, they are:

vetrecs.archives.gov

archives.gov/veterans/military-service-records/

ebenefits.va.gov

*If you have difficulty retrieving information from any of these sites,

the local recruiting office for your branch would be able to assist.

I have my discharge paperwork, but would like help

obtaining my Certificate of Eligibility

Contact your lender.

I served, but it was a very long time ago. Do my VA
benefits for a mortgage expire?

No, VA Home Loan benefits never expire. You can use your

VA benefit as long as you’re alive.

I used my VA mortgage along time ago to buy a
home. That means I can’t use it again, right?

The VA Mortgage can be used several times over. If the previous

home was sold, your entitlement should be fully reinstated.

What is the minimum credit score to obtain
a VA mortgage?

The VA does not have a minimum credit score, but lenders will

have their own internal overlay. If your score is greater than 580,

you are likely a candidate for the VA mortgage.


Can I use the VA loan to buy a condo?

You can, with the same terms as buying a detached single family

residence. However, we do have to see if the condo association

is VA approved. Check this website:

vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch

I relocated here and have a home in my hometown. I

kept the home and it has a VA mortgage on it now.

Can I get another VA mortgage?

You can get another VA Mortgage. Mortgage

will calculate your remaining entitlement to compute your

maximum loan amount with no money down and/or what

you would have to put down if you exceed the remaining

entitlement.

Can I build a home with a VA Home Loan?

Yes, but there are several clauses that may make this difficult

to accomplish. Many veterans use their VA Home Loan

Certificate of Eligibility to negotiate in good faith a private home

construction loan and then refinance the completed home using

VA Home Loans.

I heard the VA Mortgage was more expensive than
other mortgage types. Is that true?

There is a mandatory funding fee on all VA mortgages (unless

the borrowing veteran is receiving a VA related disability, then

the funding fee is waived). The funding fee is built over and

above the loan amount and the fees are as below.



It's Military May, and that means Permanent Change of Station (PCS) season for military families is upon us. However, some brokers will miss out on opportunities to help more Veterans due to a few commonly held misconceptions regarding Kentucky VA loans.

Separating fact from fiction can make all the difference this season for your business. Here are a few myths around Kentucky VA loans:

Myth: Kentucky VA Loans Are Credit Risks

Reality: Kentucky Veterans and military members tend to have higher credit scores and savings.

Myth: The Seller Pays the Closing Costs

Reality: In a well-structured Kentucky  VA loan, the benefits include no down payment and ideally no closing costs to the seller.

Myth: There Is a Maximum VA Loan Amount  

Reality: There has never been a maximum Kentucky  VA loan amount, though it's often confused with maximum VA loan guarantee.

Myth: VA Loans Are Complicated With Many Restrictions

Reality: The expertise of our Kentucky VA lending team makes the process simple so you can focus on your borrower.



Basic Understanding of a Kentucky VA Mortgage Loan Approval Process. The VA makes a guarantee to the lending institution (the  insurance)-for 25% of the loan amount (from a lenders  perspective the effective LTV is 75%).  Because the risk to the bank is reduced, the bank can provide  more affordable loans to the Veteran:  • Eliminating the need for a down payment (100% Mortgage)  • Provides the Veterans favorable interest rates  • Eliminating Mortgage Insurance (NO PMI)  Crushing the Myths of the VA Loan • VA Mortgage Benefits do not expire.  • You can use your VA benefits as many times as you wish.  • You can have more than 1 at a time. (See occupancy rules)  • There is no limit to the size of a VA loan. (There is a county  loan limit, but veterans can purchase above the county loan  limit with a 25% down payment)  • Credit and risk is reviewed differently by each bank  and lender.  • Even with a foreclosure or short sale, the veteran may still be  able to buy a house with a VA loan. (See burnt entitlement,  veteran might have reduced buying power, but can still  use the VA loan). The VA understands that bad things can  happen to good people.  • VA Appraisals are significantly different than they use to be.    What military documents would I need to have in order to get a VA mortgage? I don’t know if I still have my documents from when I  served. How can I retrieve them? There are three websites that should be able to help you, they are:  vetrecs.archives.gov  archives.gov/veterans/military-service-records/  ebenefits.va.gov  *If you have difficulty retrieving information from any of these sites,  the local recruiting office for your branch would be able to assist.  I have my discharge paperwork, but would like help  obtaining my Certificate of Eligibility  Contact your lender.  I served, but it was a very long time ago. Do my VA benefits for a mortgage expire? No, VA Home Loan benefits never expire. You can use your  VA benefit as long as you’re alive.  I used my VA mortgage along time ago to buy a home. That means I can’t use it again, right? The VA Mortgage can be used several times over. If the previous  home was sold, your entitlement should be fully reinstated.  What is the minimum credit score to obtain a VA mortgage? The VA does not have a minimum credit score, but lenders will  have their own internal overlay. If your score is greater than 580,  you are likely a candidate for the VA mortgage.    Can I use the VA loan to buy a condo? You can, with the same terms as buying a detached single family  residence. However, we do have to see if the condo association  is VA approved. Check this website:  vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch  I relocated here and have a home in my hometown. I  kept the home and it has a VA mortgage on it now.  Can I get another VA mortgage? You can get another VA Mortgage. Mortgage  will calculate your remaining entitlement to compute your  maximum loan amount with no money down and/or what  you would have to put down if you exceed the remaining  entitlement.  Can I build a home with a VA Home Loan? Yes, but there are several clauses that may make this difficult  to accomplish. Many veterans use their VA Home Loan  Certificate of Eligibility to negotiate in good faith a private home  construction loan and then refinance the completed home using  VA Home Loans.  I heard the VA Mortgage was more expensive than other mortgage types. Is that true? There is a mandatory funding fee on all VA mortgages (unless  the borrowing veteran is receiving a VA related disability, then  the funding fee is waived). The funding fee is built over and  above the loan amount and the fees are as below.      It's Military May, and that means Permanent Change of Station (PCS) season for military families is upon us. However, some brokers will miss out on opportunities to help more Veterans due to a few commonly held misconceptions regarding Kentucky VA loans.  Separating fact from fiction can make all the difference this season for your business. Here are a few myths around Kentucky VA loans:  Myth: Kentucky VA Loans Are Credit Risks  Reality: Kentucky Veterans and military members tend to have higher credit scores and savings.  Myth: The Seller Pays the Closing Costs  Reality: In a well-structured Kentucky  VA loan, the benefits include no down payment and ideally no closing costs to the seller.  Myth: There Is a Maximum VA Loan Amount    Reality: There has never been a maximum Kentucky  VA loan amount, though it's often confused with maximum VA loan guarantee.  Myth: VA Loans Are Complicated With Many Restrictions  Reality: The expertise of our Kentucky VA lending team makes the process simple so you can focus on your borrower.


Kentucky USDA Rural Housing Mortgage Lender: KENTUCKY USDA MORTGAGE LOANS

Kentucky USDA Rural Housing Mortgage Lender: KENTUCKY USDA MORTGAGE LOANS:


 KENTUCKY USDA MORTGAGE LOANS KENTUCKY USDA Loans are issued by qualified lenders and are guaranteed by the United States Departme...



KENTUCKY USDA Loans are issued by qualified lenders and are guaranteed by the United States Department of Agriculture. These are not farm loans! They are intended to encourage home ownership in rural areas as defined by the USDA in Kentucky.

Here’s a quick overview of KENTUCKY MORTGAGE USDA loans:
  • No down payment - a true 100% LTV Loan
  • Minimum credit score of NONE . Just investors will create overlays and institute a higher minimum credit score-Be aware of this!~!!
  • The following slides will highlight a few key credit requirements.
  • • Credit requirements may vary for loans underwritten with the assistance of the GUS compared
  • to those that are manually underwritten.
  • • Lenders and investors may impose overlays. A common overlay is credit score requirements.
  • Rural Development does not have a minimum published credit score, but many lenders do.
  • • It is the lender’s responsibility to determine the creditworthiness of their applicant. In some
  • cases of adverse credit, the lender’s underwriter can grant credit exceptions.
  • • There are a few instances of adverse credit that a lender cannot waive which include delinquent
  • non‐tax Federal debt, delinquent child support, previous USDA losses, and a CAIVRS claim
  • indicating the applicant is delinquent on federal debt.


  • Borrowers that do not have a credit score may be eligible with additional requirements.
  • Kentucky USDA Rural Housing has a Household income limits apply.
  • The base USDA income limits are for most Kentucky counties below:

    Kentucky USDA Mortgage Limits for Households with 1-4 members have different limits as households with 5-8. Similarly, applicants living in high-cost counties will have a higher income limit than those living in counties with a more average cost of living.

    The base USDA income limits are formostKentucky counties below:

    Kentucky Rural Housing ​USDA ​Loan Program for 2022 ​ust recently increased their income limits Families of 4 or less people can now have a maximum annual income of $103,500 (used to be $90,000) in most counties and 5 or more people in the household income can now be a maximum of $136,600  What does that mean? It means if before you were told you make too much to qualify for a ​Kentucky ​USDA loan, you might qualify now

    New Income limits for most counties (*) in Kentucky are $103,500 for a household family of four and household families of five or more can make up to $136,600 with the new changes for

    2022 Kentucky USDA Income limits, the Jefferson County Louisville, KY Metro area (**) saw an increase of$103,500for a family of four and up to $136,600 for a family of five or more. The metro area surrounding counties of Jefferson County includes Oldham, Bullitt, Spencer are included in these higher income limits for USDA loans.

    Remember, the entire Jefferson County and Fayette County Kentucky counties are not eligible for USDA loans. Along with parts of the following counties Daviess (Owensboro), Mccracken (Paducah), Madison County, (Richmond), Clark County (Winchester), Warren (Bowling Green), Hardin (Fort Knox and Radcliff), Bullitt(Hillview, Maryville, Zoneton, Fairdale, Brooks), Franklin, (Frankfort), Henderson (Henderson City Limits)…

  • Generally easier to qualify for than a Conventional mortgage and much cheaper mortgage insurance than FHA loans in Kentucky!
  • Property must be located in an eligible rural area as designated by map below 
  • No maximum loan amount unlike FHA and Conventional loans.
  • Eligible Property Types:
    • 1 unit properties only and must meet HUD FHA minimum standards
    • HUD Approved Condos
    • New Manufactured Homes (*There is currently a pilot program in KENTUCKY only that allows for existing homes built after Jan. 2006)


Credit Accounts and Adverse Credit

• Authorized user accounts do not require a monthly payment be included in the debt ratio.
However, lenders may include a payment at their discretion.
Chapter 7 Bankruptcy
• A Chapter 7 bankruptcy that is discharged or dismissed more than 36 months at the time of loan
application is not considered adverse credit.
• If the bankruptcy is less than 36 months, a credit exception is required if the GUS underwriting
recommendation is a “Refer” or “Refer with Caution” or the file is a manually underwritten file.
• If the bankruptcy included a mortgage, the lender must include any debt that the applicant may still be liable for such as real estate taxes and home owners insurance.


Chapter 12 or 13 Bankruptcy

• When there is a Chapter 12 or 13 Bankruptcy plan in progress and the GUS loan receives an “Accept” recommendation, the lender must confirm all payments are included on the Assets and Liabilities application page.

• Neither a GUS downgrade nor a credit exception are required.
• If the loan receives a “Refer” or “Refer with Caution” underwriting recommendation or is a
manually underwritten loan, the lender must retain the bulleted list of items shown on this slide.
• If the plan has been completed for 12 months prior to loan application, nothing further is
required regardless of underwriting recommendation.


Charge‐Offs

• If there are charge‐offs, the lender’s underwriter must determine if the credit risk is acceptable.
• Charge‐offs are not required to be paid; however, if there is a repayment plan in place, the
payment must be included.
Collections
• The lender’s underwriter must review all collection accounts and determine if it is an acceptable
credit risk regardless of the GUS underwriting recommendation.
• If the cumulative total of all non‐medical collections exceeds $2000, the lender must:
1. Require payment in full of these accounts prior to closing
2. Use an existing repayment agreement amount OR
3. Include five percent of the outstanding balance.

• All open collections must be listed on the Asset and Liabilities GUS page and noted and marked

• A credit exception is not required for collection accounts regardless of the GUS underwriting
recommendation.


Consumer Credit Counseling Debt Management Plans

• Lenders must include the monthly payment amount in the monthly liabilities and must retain the bulleted list of items shown on this slide.

Delinquent Court Ordered Child Support

• Applicants currently delinquent on court ordered child support are ineligible unless they have an approved repayment agreement and have made 3 timely, consecutive payments.
Delinquent Federal Non‐Tax Debt
• Applicants with delinquent Federal non‐tax debt are ineligible until the debt is paid in full or a
release of liability is documented.


Federal Taxes

• Applicants currently delinquent on federal tax debt are ineligible for a guaranteed loan unless
they have a repayment plan approved by the IRS or pay the total delinquent amount in full prior to closing.
• A minimum of 3 timely, consecutive payments must have been made and the applicant
cannot prepay a lump sum at one time to equal 3 monthly payments.
• An IRS approved extension to file a tax return does not grant the applicant additional time to pay their taxes that are due.
• Applicants must pay their estimated income taxes due by the filing date or they are considered delinquent. 


Deed‐in‐Lieu, Foreclosures, and Short Sales

• Lenders must ensure the Declarations in the GUS are completed accurately.
• A deed‐in‐lieu recorded, foreclosure discharged, or short sale closed 36 months prior to the date of loan application is not adverse credit.
• If the loan receives a GUS “Accept” underwriting recommendation, neither a GUS downgrade nor a credit exception is required.
• A credit exception is required if a deed‐in‐lieu, foreclosure, or short sale occurred within the
past 36 months and the GUS underwriting recommendation is a “Refer” or “Refer with
Caution”.

• A deed‐in‐lieu, foreclosure, or short sale that occurred post divorce or legal separation and the home was awarded to the other party will not count adversely against the applicant if
documentation evidences the debt was current at the time the home was awarded to the other


Previous USDA Loss

• A lender cannot waive adverse credit for an applicant whose previous Rural Development Direct or Guaranteed home loan resulted in a loss to the agency. Only a Rural Development official may grant this exception.
• Rural Development will perform its review after the lender’s underwriter has approved the loan and has processed the final GUS submission.
• The applicant and lender must provide a letter of explanation and supporting documentation as required


Rent/Mortgage Payment History

• An applicant’s current rent or mortgage payment history is a good indicator of the probability of their future mortgage payments.
• A GUS “Accept” file does not require a verification of rent or mortgage.
• A GUS “Refer”, “Refer with Caution”, or manually underwritten loan may require a verification of rent or mortgage. The lender will refer to their GUS Underwriting Findings Report to determine if it is required.
• If a full 12 month verification is not available, the lender may utilize the time period that is
available.
• One rent or mortgage payment that was 30 or more days late in the past 12 months is significant derogatory credit and will require a credit exception from the lender’s underwriter.
25


Contact us for an overview of the property eligibility boundaries specific to your area, or look up the eligibility of a specific address here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

Want to learn more about KENTUCKY USDA loans? Let us know, we are here to help!


Kentucky USDA Mortgage Lender for Rural Housing Loans

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Basic Understanding of a Kentucky VA Mortgage Loan Approval Process. The VA makes a guarantee to the lending institution (the insurance)-for...



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