Kentucky First Time Home Buyer Programs For Home Mortgage Loans

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Fannie Mae HomeReady Mortgage Loan 3% Down Payment... :  __________ 

Conventional Mortgage Loans by Fannie Mae Mortgage credit history for any mortgage which the borrower is obligated as borrower, co-borrower, or co-signer may be considered acceptable if it meets one of the following:  The borrower has made all payments due on time, prior to subject loan Note date, even though the loan was in forbearance, or  The borrower has not made one or more payments due, and the late payments or forbearance has been resolved per one of these acceptable resolution plans: Resolution Plans* Eligibility Requirements Reinstatement ▪ Any missed payments must be made ▪ Funds to reinstate after application must be documented from eligible source ▪ Funds from the current transaction may not be used to reinstate mortgage Repayment Plan ▪ Must have made 3 timely** payments under the repayment plan, or ▪ Repayment plan has been completed ▪ Funds from the current transaction may satisfy the existing mortgage in full Payment Deferral ▪ Must have made 3 timely** payments after...

Here are action steps you can take right now to buy a home in Kentucky 1. Focus on your credit score FICO credit scores are among the most frequently used credit scores, and range from 350-800  (the higher, the better). A consumer with a credit score of 750 or higher is considered to have excellent credit,  while a consumer with a  credit score below 620  is considered to have poor credit. To qualify for a mortgage and get a low mortgage rate, your credit score matters. Each credit bureau collects information on your credit history and develops a credit score that lenders use  to assess your riskiness as a borrower. If you find an error, you should report it to the credit bureau immediately  so that it can be corrected. 2. Manage your debt-to-income ratio Many lenders evaluate your debt-to-income ratio when making credit decisions, which could impact the  interest rate you receive. A debt-to-income ratio is...

1. Income You need income. You need to be able to afford the home. But what is acceptable income? Let’s just say that there are two ratios mortgage underwriters look at to qualify you for mortgage payment: First Ratio – The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe. Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards, ...

The waiting period is determined by the nature of the financial hardship and the type of mortgage your are applying for. 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 m...

. Income You need income. You need to be able to afford the home.  But what is acceptable income? Let’s just say that there are two ratios mortgage underwriters look at to qualify you for mortgage payment: First Ratio  – The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe. Second Ratio-  The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards...

Alimony Income Guidelines Below For Different Mortgage Loan Programs             Conventional Loan Final Divorce Decree, Separation Agreement, Court Decree, or any other type of written legal agreement recorded with the courts. Receipt of most recent 6 months of total court ordered amount & scheduled timely payments as per the terms of the court order/written legal agreement. Court order/Written legal Agreement stipulates that alimony will be paid for at least 3 years after the date of the Note/Closing.    FHA Allows Some Flexibility      If the borrower has a: Final divorce decree, Legal separation agreement, or Court order Receipt of recent 3 months of total court ordered amount & scheduled timely payments as per the terms of the court order. 3 Legal documents noted above stipulate that alimony will be paid at least 3 years after the date of the date of the Note/Closing. If the borrower has a: V...