Collections and Rural Housing USDA Mortgage Loan Approvals.

Underwriting must follow (GUS) Guaranteed Underwriting System Automated Findings  to determine if a collection account must be paid. Typically GUS will require the following:

• If the credit report show a cumulative balance of $2,000 or more for collection accounts:

1. The debt(s) must be paid in full prior to or at closing, or
2. Payment arrangements must be made with the creditor and the monthly payment included in the DTI, or
3. A monthly payment of 5% of the outstanding balances of each collection must be included in the borrower’s DTI.

• While all collections required by GUS must be paid, RHS grants the lender/underwriter the authority to require any collection (whether GUS recommended or not) to be paid prior to or at close. 

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

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/

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

How to qualify for a mortgage loan while in a Chapter 13 Bankruptcy:

Here is a brief summary on getting a mortgage loan while in a Chapter 13 Bankruptcy:

 

You must have 12 payments paid into the Chapter 13 before you can apply for a mortgage loan.

 

The payments must be made on time for last 12 months or after 12 months if you have been in longer, so no late payments to the Chapter 13 while in it. 

 

You have to ask permission from the courts to seek a mortgage loan. They usually grants this. I have never not seen them grant it.

 

You have to qualify with the new house payment along with Chapter 13 payments and other debts listed on credit report. Debt to income ratios usually center around 31 and 43% respectively, meaning the new house payment should not be more than 31% of your gross monthly income and your total house payment and debts listed on credit report along with Chapter 13 payment should not be more than 43% of your total gross monthly income. 

 

Credit scores: Most FHA lenders I work with will want a 620 middle score. You have three fico scores from Experian, Equifax, and Transunion, and they throw out the high and low score and take middle score. For example, if you had a 598, 679, and 590 scores respectively for all three bureaus listed above, your qualifying score would be 598.

There are some FHA investors that I am set up with that will go down to 580, but I have seen in my past experiences 620 will get you a better deal and far greater chance of closing on your loan with FHA. 

 

Down payment: For FHA loans, you will need to have at least 3.5% down payment saved up. It is extremely hard to find a no money down loan program to get you approved for a mortgage while you are in a Chapter 13 plan. 

 

FHA and USDA are really the only two options that I know of that offer financing for a borrower with a current Chapter 13 Bankruptcy plan plan, so keep that in mind. 

 

Conventional loan program offered by Fannie Mae will not allow a mortgage loan for someone in a Chapter 13 Bankruptcy plan.

 

On USDA loans, it is possible to get 100% Financing after you have paid into the plan for 12 months with a good pay history. The credit scores needed for a USDA loan approval really need to be above 640 in my past experience in getting them approved. A lot of USDA lenders will say they will do down to 620, but it is very difficult getting them approved. Best to get your scores up to increase your changes in qualifying for a USDA loan. There is not much that difference in getting your scores up to that range if you are at a 620 score now. 

 

With USDA loans, they have income and property eligibility requirements that FHA does not have, so below is a rough run down of FHA vs USDA loan for you:

 

Typically, USDA-eligible properties are located in rural areas. It is a mistake, however, to think that you have to live far out in the country to qualify for a USDA loan. USDA-eligible properties are often located near urban areas.
A property’s eligibility is determined by its location with respect to USDA’s map of eligible locations. The USDA program also places limits on your household income based on median earnings in an area. If you exceed that limit, you can’t obtain a USDA loan.
The FHA, by contrast, does not place limits on household earnings. The FHA, however, does establish a maximum limit on the amount of money that can be borrowed through the program.

So if you were in a hurry to buy, after you have been in your Chapter 13 plan for 12 months, I can look at getting you approved to buy a home if you wish:

 

In order to get you pre-approved for your max loan amount, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free!

 

 

Mortgage Pre-Approval Checklist

 

1.  Last 30 days worth of pay stubs

2.  Last 2 years W-2′s

3.  Last 2 years tax returns

4.  Last two months bank statements for all accounts including 401 k or retirement account  if you have one

 

____________________________________________

 

 

Once I get the information above, I can usually get you pre-approved in one day, and get your loan closed in 30-45 days after you get an accepted offer on a home. 

 

Your first house payment usually starts 30-60 days after you close.

 

Your loan pre-approval is usually good for 90 days.

 

I don't need originals, copies are fine. You can fax or email  me the above documents,  or meet me face-to-face if you wish to make copies and go over your options.

 

Let me know your questions. 

 

Thanks and look forward to helping you. 

 

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

 

 

http://www.mylouisvillekentuckymortgage.com/

If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

Text or call phone: (502) 905-3708

email me at 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 views of my employer. Not all products or services mentioned on this site may fit all people

This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.
**Download Fair Housing Booklet – CLICK HERE
All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines


Remember, we are even available this weekend for pre-qualifications or questions.  Call our cell phone or email us.  If you miss us, leave a message and we WILL call you back 

Kentucky USDA Income Limits as of 06/13/2018

For Kentucky USDA Rural Housing Loans, the income limits have increased by about 5%. For a family of one to four people, USDA Rural Housing Kentucky County  income limits are around $82,700 depending on the county. For a family of over five people, income limits are around $109,150.

The USDA Rural Development (RD) home loan program helps individuals achieve home ownership in small towns or rural areas. The program is open to home buyers whose annual income does not exceed the USDA’s income limits.

The best part of the USDA RD Loan? It doesn’t require a down payment! That’s right, this is a true 100% financing home loan.

With the recent increase in income limits, even more families will now be able to qualify for a USDA home loan.

Want to see if you qualify for a Kentucky USDA Home Loan? Apply today for a Rural Housing Loan in Kentucky for 2018!

Kentucky  USDA Income Limits as of 06/13/2018

USDA income limits increased TODAY in most counties in Kentucky
This program is awesome and allows for up to 100% financing. In addition, homes that Appraise for more than the purchase price will allow the buyer to roll the closing costs into the loan!

Most Kentucky  Area income limits are now $82,700 for households of 1 to 4 and $109,150 for households of 5 or more. Daycare or other child care expenses may allow higher incomes.

A Kentucky USDA Home Loan might not seem like the right fit for you and your real estate needs, but the program actually has fairly high income limits and the “rural” areas are often not as far out of town as you may think. If you feel you might have trouble coming up with a down payment, or simply want to explore all your loan options then here is a Guideline to the Kentucky USDA Home Loan Requirements.

                                                      

Get Pre-Qualified Today!

Some Highlights:

• Your household must make no more than 115% of the median income of the county you want to purchase in.
• USDA allows you to have lower credit scores than other programs but you will still need to have a score of 620 but exceptions can be made.
• The USDA Home Loan requires an appraiser to look over the house to make sure it meets the USDA Home Standards
• The house must be in a USDA eligible area, if you want to know if the area you want to purchase in is eligible please leave a comment or contact us here and we will answer any questions you have on eligibility or anything about the US

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

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/

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification

Kentucky Rural Development Home Mortgage Loans Guidelines for 2018 Updated

Terms/Product

  Fixed: 30 Yr. only

Underwriting 

  All loans are run through GUS (Guaranteed Underwriting System). Must be
located in an eligible location http://eligibility.sc.egov.usda.gov/eligibility/
Accept/Eligible and

 Manual underwriting allowed on an exception basis. Technically a manual
underwrite is considered an exception.

 USDA files cannot have multiple exceptions when a file has to receive a
manual underwrite.

 All USDA files will need 2 months bank statements regardless if funds are
needed or not needed for closing.

Credit Score

  600 - Lower of 2 or Middle of 3 repositories. (580-599 exception only)
 640 and below credit scores require a manual underwrite. (GUS will not
approve 640 and below)

Down Payment

 No minimum down payment required- but asset verification is still required

Seller Assist


 Maximum 6% of sales price

DAP Assistance

 Borrowers who choose to make a down payment may use a Government or
Municipal Down Payment Assistance Program (DAP).

Subordinate Financing

  Not Permitted.

Reserves 

 N/A No Reserves

Mortgage/Rent History

 If Credit score is > 640 then follow GUS Findings. If Credit Score is < 640 need
verification of rent (cancelled checks or 3rd party Institution)

Occupancy 

 Owner Occupied Primary residence only.

Debt to Income Ratio

  Must maintain Gus Accept Findings – typically maximum 43% DTI, Credit score
less than 640 – DTI must not exceed 29/41

Bankruptcy

  Minimum 2 Years discharged if a result of extenuating circumstances. Minimum 3
Years discharged if a result of financial mismanagement. Multiple Bankruptcies
are not permitted.

Foreclosure

  Minimum 3 Years completed. Delinquencies since Foreclosure discharge will be
scrutinized and may result in an ineligible loan.

Property Types

  Single Family Attached and Detached, Condo, PUD

Condominium 

 Condominium must be currently approved by HUD (FHA).

Mortgage Insurance

  1.00% Up front guarantee Fee as of 10/1/15, .35% Annual Fee

Cash out 

 Not applicable. Program is available on Purchases/ Rate and Term only.


Appraisal

  Full Appraisal is required. Appraisals must be ordered via Mortgage Machine or
approved AMC. Appraisal must meet HUD standards

Escrows

  Escrow of Tax, Insurance and MIP are required on all loans.

Property Flips 

 Flip transactions are eligible

Borrower may own additional property however the other property must be
deemed inadequate (increased family size, family needs, and safety hazards) or
other property must be more than 50 miles away from the subject



Must be an Arm’s Length transaction. Must prove the loan is not a bail out if a Non
Arm’s length transaction


--

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

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/

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.