Kentucky FHA, VA, USDA Government Mortgage Updates for 2023

Kentucky FHA, VA, USDA Government Underwriting Guideline Updates

Effective immediately, for all loans, the FHA, VA, and USDA Underwriting Guides have been updated with the below information. USDA Updates to HB-1-3555 Delinquent Federal Debt All borrowers must be screened using HUD’s Credit Alert Interactive Voice Response System (CAIVRS) except those borrowers financing a Streamlined-Assist or Streamlined Refinance. CAIVRS will return the following results: A: Approved by CAIVRS (no issues exist) B: Multiple cases from one or more Federal agencies C: Claim filed D: Default on loan F: Foreclosure of loan J: Judgment filed The only acceptable result is A: Approved by CAIVRS (no issues exist). Borrowers with delinquent federal non-tax debt are not eligible for a USDA loan until the debt is paid in full or a release of liability is documented. Appraisal Validity The effective date of the appraisal report must not be more than 180 days of the Note date (previously 150 days). Credit Non-Federal Judgements Added that open and unpaid non-federal judgments are eligible when the borrower is not delinquent and has a payment arrangement with the creditor and has made regular and timely payments for the three (3) months prior to application date. This update clarifies that the borrower cannot be delinquent, not previously specified. Court-Ordered Child Support Below highlights the current and new guideline. Current Guideline New Guideline Delinquent court-ordered child support must meet one (1) of the following: Must have an approved repayment agreement with three (3) timely payments made prior to closing; The arrearage is paid in full; or A release of liability is documented. Delinquent court ordered child support, subject to the collection by an administrative offset (allows for federal payments in order to collect past due child support) must meet one (1) of the following: Must have brought payments current prior to closing; The debt is paid in full; or A release of liability is documented. Appraisal Requirements Multiple Parcel Requirements Clarified that when multiple parcels are not adjoined, the parcel without a residence must be non-buildable (such as waterfront properties where the parcel without the residence provides access to the water) and the entire property will contain only one (1) dwelling but may have non-residential, non-income producing buildings, such as a garage. Accessory Dwelling Unit (ADU) Clarified that an ADU should support household members and not create potential rental income. Individual Water Supply System (Well) Updated the requirement that a valid water test from the local health authority or a lab qualified to conduct water testing in the jurisdictional state or local authority must be obtained and that the water analysis report must be no greater than 150 days old as of the Note date. FHA and VA Underwriting Guideline Updates and Clarifications Maximum Number of Borrowers The FHA and VA Underwriting Guide has been updated with the maximum number of borrowers allowed for submission to DU or LPA. Up to four (4) borrowers may be on a loan application and submitted to DU. Up to five (5) borrowers may be on a loan application and submitted to LPA. If the number of borrowers exceeds four/five, the loan must be manually underwritten. Inquiries and Undisclosed Debt (FHA) Updated the FHA Underwriting Guide to require the following: When the credit report reveals a significant debt not listed on the application, a written explanation from the borrower addressing the omission is required. The absence of a written explanation from the borrower may render the loan ineligible. Future Income (VA) For Future Income, when a borrower’s employment will begin after the Note date, employment must begin within 90 days after the Note date (previously 60 days). Joel Lobb Mortgage Loan Officer Individual NMLS ID #57916 American Mortgage Solutions, Inc. 10602 Timberwood Circle Louisville, KY 40223 Company NMLS ID #1364 Text/call: 502-905-3708 fax: 502-327-9119 email: kentuckyloan@gmail.com http://www.mylouisvillekentuckymortgage.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).

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Can you use Foster Income for a Kentucky Mortgage ...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Can you use Foster Income for a Kentucky Mortgage ...:  Foster Income for a Kentucky Mortgage  Yes, if it can be documented that foster care income has been received for the last 2 years that...

Can you use Foster Income for a Kentucky Mortgage Loan Approval?

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...: 2023 Kentucky USDA Loan Income Limits for Kentucky Counties  Kentucky USDA loan income limits vary by location and household size wit...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Louisville Kentucky Mortgage Lender for FHA, VA, K...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Louisville Kentucky Mortgage Lender for FHA, VA, K...: Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: USDA Rural Housing Kentucky Loan Informatio...

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky FHA, VA and USDA 2023 Loan Limits

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky FHA, VA and USDA 2023 Loan Limits:   Kentucky Mortgage Government Updates: Kentucky FHA, VA and USDA 2023 Loan Limits   Review the table below for details of Kentucky FHA, VA ...

Kentucky FHA, VA and USDA 2023 Loan Limits

2023 Loan Limits for Kentucky VA and Kentucky FHA Loans

 

New 2023 Loan Limits for Kentucky VA and Kentucky FHA Loans

Kentucky VA loan limits received a massive increase for 2023. The standard Kentucky VA loan limit in 2023 is $726,200 for most U.S. counties, increasing from $647,200 in 2022. Kentucky VA loan limits also increased for high-cost counties to $1,089,300 for a single-family home.   Kentucky VA loan limits do not represent a cap or max loan amount. Veterans with their full entitlement can get as much as a lender is willing to give them without needing a down payment. However, Veterans with one or more active VA loans or who have defaulted on a previous VA loan will encounter the limits, which will in part determine their zero-down buying power.   For Kentucky FHA loan limits, please click here to consult this page on the Hud.gov website as Loan Limits for FHA loans vary by county in Kentucky each 120 counties.

Kentucky FHA Loans and Kentucky Fannie Mae Loans in 2023 and their Differences

 

New 2023 Loan Limits for VA and FHA Loans

VA loan limits received a massive increase for 2023. The standard VA loan limit in 2023 is $726,200 for most U.S. counties, increasing from $647,200 in 2022. VA loan limits also increased for high-cost counties to $1,089,300 for a single-family home.   VA loan limits do not represent a cap or max loan amount. Veterans with their full entitlement can get as much as a lender is willing to give them without needing a down payment. However, Veterans with one or more active VA loans or who have defaulted on a previous VA loan will encounter the limits, which will in part determine their zero-down buying power.   For FHA loan limits, please click here to consult this page on the Hud.gov website as Loan Limits for FHA loans vary by county.

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: Non occupying borrower is not the seller in the transaction Property is not a 2-4 unit property 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 Purchase is the principle residence of another Family Member 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 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. Joel Lobb Mortgage Loan Officer Individual NMLS ID #57916 American Mortgage Solutions, Inc. 10602 Timberwood Circle  Louisville, KY 40223 Company NMLS ID #1364 click here for directions to our office Text/call:      502-905-3708 fax:            502-327-9119 email:          kentuckyloan@gmail.com https://www.mylouisvillekentuckymortgage.com/

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky Fannie Mae Loans versus Kentucky FHA Loans

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky Fannie Mae Loans versus Kentucky FHA Loans: Kentucky Fannie Mae Loans versus Kentucky FHA Loans Non Occupant Co-Borrower for Fannie Mae ...