Kentucky First Time Home Buyer Programs For Home Mortgage Loans

There are two different types of Bankruptcies for most consumers.   1. Chapter 7 Bankruptcy in Kentucky Chapter 7 bankruptcy involves selling off your assets to pay back your outstanding debts. If you have significant equity in your home, it may be sold. It's possible to keep the property during bankruptcy, but the lender retains a lien on it, meaning you have to keep making payments on the loan or the lender could foreclose on it. Usually done by borrowers you don't have any assets and is filing on unsecured debts like, medical bills, collections, credit cards, personal loans etc. 2. Chapter 13 Bankruptcy in Kentucky Chapter 13 bankruptcy Instead of using assets to pay off their debt, borrowers can keep their property and enter into a repayment plan. That means you're likely to keep your home if you file for Chapter 13 bankruptcy protection. Usually people with assets do this loan program. i.e. equity in home, and substantial savings account of money that is not t...

Bankruptcy Guidelines for Kentucky Home Loans Conventional Loan Bankruptcy Guidelines  Chapter 7 Bankruptcy A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action until the application date. Chapter 13 Bankruptcy two years from the discharge date to the application date, or four years from the dismissal date to the application date. The shorter waiting period based on the discharge date recognizes that borrowers have already met a portion of the waiting period within the time needed for the successful completion of a Chapter 13 plan and subsequent discharge. A borrower who was unable to complete the Chapter 13 plan and received a dismissal will be held to a four-year waiting period. Exceptions for Extenuating Circumstances A two-year waiting period is permitted after a Chapter 13 dismissal, if extenuating circumstances can be documented. There are no exceptions permitted to the two-year waiting period after ...

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...

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...

Many debtors fear that a bankruptcy will close off any chance of getting a mortgage. But that’s simply not true, with a little time and proper planning you can get a mortgage with good interest rates. Rebuild Your Credit If you want to get a mortgage after bankruptcy, you’ll need to get busy rebuilding your credit right away. If you make sure your credit report accurately reflects your bankruptcy, all zero balance credit accounts are closed at the time of your discharge, and pay your credit bills on time you will begin to see some improvement in your credit score within 12 months of your discharge. Here are some key tasks in rebuilding your credit: Get a secured credit card right after your bankruptcy discharge. Get installment loans (for example an auto-loan) six to twelve months after your bankruptcy discharge. Use your credit lines and make timely payments. Remove any inaccurate information from your credit report. Make payment arrangements for any debts that were no...