Kentucky FHA Guidelines for the following:
Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy. You may apply for a FHA insured loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy
Foreclosure – You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date.
Short Sale / Deed in Lieu – You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date. FHA treats short sale, deed in lieu and foreclosure as the same waiting periods.
Credit must be re-established no late payments in past 12-24 months, depending on hardship
Application Date must be after the above waiting period to be eligible for FHA financing after hardship.
Kentucky VA Mortgage Guidelines
Bankruptcy Ch 7 – You may apply for a VA guaranteed loan TWO (2) years after a chapter 7 Bankruptcy
Bankruptcy Ch 13 – If you have finished making all payments satisfactorily, the lender may conclude that you have reestablished satisfactory credit.
If you have satisfactorily made at least 12 months worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.
Foreclosure / Deed in Lieu – You may apply for a VA guaranteed loan TWO (2) years after the sale/deed transfer date.
Short Sale – VA does not recognize a short sale as a derogatory event. If you are able to credit qualify for a VA loan, a short sale would not prevent you from being eligible for VA financing.
Credit must be re-established with a minimum 580 credit score
Application Date must be after the above waiting period to be eligible for VA financing after hardship.
Kentucky Mortgage USDA Guidelines
Bankruptcy – You may apply for a USDA rural loan THREE (3) years after the discharge of a Chapter 7 or 13 Bankruptcy
Foreclosure – You may apply for a USDA rural loan THREE (3) years after the sale/deed transfer date.
Short Sale / Deed in Lieu of Foreclosure – If you had big issues the deed in lieu of foreclosure will be viewed as a foreclosure and you would want to wait no less than 3 years if the score is under 640. Over 640 your UW will make the call but typically not less than one year.
Mortgage debt included in Bankruptcy will go by BK discharge date, and and subsequent foreclosure will not count as an additional waiting period, as long as you are off title for any defaulted mortgages.
USDA Guideline – HB-1-3555 Attachment 10-B See Page 31 of 34
Date of Credit Approval must be after the above waiting period to be eligible for Kentucky USDA financing after hardship.
Kentucky Conventional (Fannie Mae) Guidelines
Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your Chapter 7 bankruptcy has been discharged for FOUR (4) years, TWO (2) years from the discharge of a Chapter 13
Foreclosure – You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,
Foreclosure / Short Sale / DIL included in Bankruptcy – You may apply for a Conventional, Fannie Mae loan after a minimum FOUR (4) years from the DISCHARGE of a Chapter 7 Bankruptcy, TWO (2) years from the DISCHARGE of a Chapter 13 Bankruptcy
Short Sale / Deed in Lieu of Foreclosure – UPDATED – Effective 7/29/2014: Short Sale or Deed in Lieu of Foreclosure not included in a Bankruptcy has a new Waiting Period of FOUR (4) years from date your name is removed from title.
Credit must be re-established with a minimum 620 credit score.
Kentucky Conventional (Freddie Mac) Guidelines
Bankruptcy (7,11,13) – You may apply for a Conventional, Freddie Mac loan after your Chapter 7 bankruptcy has been discharged for FOUR (4) years, or as determined by AUTOMATED UNDERWRITING THROUGH DESKTOP UNDERWRITER
Foreclosure – You may apply for a Conventional, Freddie Mac loan SEVEN (7) years after the sale date of your foreclosure or as determined by Loan Products Advisor (AUS)
Foreclosure / Short Sale / DIL included in Bankruptcy – You may apply for a Conventional, Freddie Mac loan after a minimum FOUR (4) yearsafter the sale date of your foreclosure or as determined by Loan Products Advisor (AUS)
Short Sale / Deed in Lieu of Foreclosure –
You may apply for a Conventional, Freddie Mac loan FOUR (4) years after the sale date of your foreclosure or as determined by Loan Products Advisor (AUS)
Credit must be re-established with a minimum 620 credit score.
Fannie Mae and Freddie Mac have reduced waiting periods in cases of extenuating circumstances
Date of Credit Report must be after the above waiting period to be eligible for Conventional financing after hardship.
NOTE: I do not yet have a success story for someone qualifying for the reduced time frames that Freddie Mac proposes to offer. That shouldn’t stop you from trying.
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/
