If you are looking to refinance your mortgage loan, you’ll want to be prepared to meet your lender’s criteria and educate yourself about your FICO® Scores as they are the credit scores most commonly used in the mortgage refinancing process. As there are different versions of the FICO Score, it’s important that you focus on … Continue reading What are the Kentucky FHA Credit Score Requirements for 2020 Mortgage Loan Approvals?
No matter what you must provide a 2 year employment history. Conventional or Kentucky FHA Mortgage Loan. Conventional does not always need to be verified with a written work verification form
if you do not have a complete 2 year history you must explain any large gaps. Typically I have seen this to be greater than 30 days.
you must have a 2 year history prior to the gap as well. (two underwriters from two different lenders have recently told me the same thing)
also check your AUS-Automated Underwriting Findings because that can help when speaking with your potential borrower.
Exception to the 2 year history is college or HS graduation
need official college transcripts or they can be unofficial if you get them with the web URL just like bank activity.
good idea to snag their diploma as well.
you probably don’t even need to use this exception if the person was a student…
If you have public student loans in collections, you really have three options to resolve it so it is not a CAIVRS issue.
1. Pay it off in full – Not typically an option because very rarely do the clients have the funds to do so.
2. Consolidation – Only takes about 90 days to consolidate and resolve CAIVRS issues. However, you push forward the last activity dates, DLA, and also introduce a new credit trade line that dilutes the length of the credit history. So you will normally see a drop in credit score.
3. Rehabilitation – It is the slowest of all the options, but is the best thing for the clients’ credit scores. It is a 9 month commitment and once the client makes 9 consecutive payments, they will change the collection status to a good standing status. This will…
Kentucky USDA Income Limits 2020 Increases for all Kentucky Counties
USDA income limits 2020 increase allows more home buyers purchase a home with no down payment. Effective May 2020 through April 30, 2021, USDA guaranteed housing base income limits are as follows: $90,300 for 1 – 4 person households and a whopping $119,200 for 5 or more person households. Guys, that is not low income! So, we are talking about a majority of American households meeting this income limit. Therefore, first time buyers or repeat buyers have the ability to use an amazing product to purchase a home without down payment.
Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 