Kentucky First Time Home Buyer Programs For Home Mortgage Loans

Employment History Required for a Kentucky Mortgage Loan Approval Kentucky Conventional Mortgage Two year is standard but shorter employment histories may be permitted for applicants with stable jobs and incomes or other positive factors Explainable employment gaps of six months or more are also permitted as long as the applicant has been back to work for at least six months and has a two year employment history prior to the work gap Self-employed borrowers are typically required to demonstrate a two year job history A self-employed job history of between one and two years is permitted if the applicant was previously employed in a similar field and earns a similar or greater income as evidenced by the borrower's tax returns Self-employed applicants are also required to provide business tax returns for two years unless the business is at least five years old A continuous two year history of part-time employment is typically required although part-time work history of one-to-two year...

Here are three basic factors for qualifying for a Kentucky home loan: Income and Job History -  If you have a job or steady source of income, you're off to a great start. 2 year work history, does not have to be same employer, but what they are looking for is a stable employment history with a consistent income.  Gross income is used not net income off monthly income.  Down Payment -   Many programs will work with 5%, 3.5%, and in some cases, even 0% down. Sometimes, closing costs can be paid for you as well. Some zero down home loan programs in Kentucky are: USDA, VA, Kentucky Housing Down Payment Assistance Programs Chenoa Down Payment Assistance, and the Welcome Home Grant. Credit –   If you have a middle credit score over 620, you will be ahead of most borrowers. If your score is below 620, then you will be looking at an FHA loan with 3.5% down payment.  No bankruptcies in the last 2-4 years for most secondary market  ...

EMPLOYMENT PROFILE TIPS (FANNIE AND FHA) FHA requires you to establish that the income is in fact stable. I am covering Time on Job, Part Time Income, Seasonal Income and Job Gaps below. Time on Job There is not a minimum length of time a borrower must have held a position for the income to be eligible. However, the application must identify the most recent 2 years of employment. If the borrower’s employment history indicates that they were in school or in the military, then the borrower must provide evidence supporting this such as college transcripts or discharge papers. The current type of employment has to be supported by the college transcripts or discharge papers showing that he borrower’s training enabled them to gain employment in their field of training. Part Time Income  Part-time and second job income can be used to qualify if documentation is obtained to prove that the borrower has worked the part-time job uninterrupted for the past two years...

Typical  LOX's  or letter of explanations for mortgage loan approvals in Kentucky are as follows: 1) Rent free Letter of Explanation - since the mortgage application does not offer this as a choice under the 2 year residence history, we will condition for clarification on a rent free status. This letter must be signed by the borrower 2) 100% Access Letter of Explanation  - any time that a borrower is applying for a loan and there is another person on his/her bank account, we will need a letter from the other listed person to show that our borrower has 100% access to all funds in the joint checking and savings account listed on the bank statements. 3) Derogatory Credit Letter of Explanation - - this letter is always requested for Kentucky FHA, Kentucky VA & KY Rural Housing USDA loans.  It is crucial that the information identifies all the derogatory credit on the credit report. It does not have to be lengthy, but does need t...