Thursday, December 12, 2013

Kentucky USDA and Rural Development Housing Guidelines for Bankruptcy, Foreclosure, Child Support, Judgements

Kentucky USDA and  Rural Development  Housing Guidelines for Bankruptcy, Foreclosure, Child Support, Judgements




 Chapter 7 Bankruptcy 
Bankruptcy must be discharge a minimum of 36 months from date of application


Chapter 13 Bankruptcy
Borrower must have 12 months history with paid as agreed and permission from the 
bankruptcy court is required.

Foreclosure
A foreclosure must be dismissed a minimum of 36 months from the application date.
Borrowers with a previous foreclosure on a Rural Development loan are ineligible.

Delinquent Child Support

Delinquent child support must be paid current or in a payment plan. On a case-by-case basis 
this requirement may be waived subject to underwriter review.

Judgments 

Open judgments, garnishments and all outstanding liens must be paid off prior to or at closing 
and documentation of sufficient funds to satisfy these obligations must be obtained.

Collections / Judgment
• Collection accounts require satisfactory arrangements for payment. 
• Accounts converted to collections within the previous 12 months indicate unacceptable 
credit risk. 
• Federal judgments require payment in full






Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell


bankruptcy, foreclosure, collections, child support, judgements and usda and rural housing kentucky loans in kentucky