Tag: Credit history

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans FHA Streamline Refinance, Mortgage Insurance UFMIP, Refinance, Streamline

Kentucky FHA Streamline Refinance

Kentucky FHA Streamline Refinance: Lower Your FHA Payment With Less Hassle

If you already have an FHA mortgage in Kentucky and you’re searching online for a way to lower your house payment, an FHA Streamline Refinance may be the fastest path to a lower monthly payment. In many cases it requires less documentation than a standard refinance, and it often does not require a new appraisal.

This guide breaks down how an FHA Streamline Refinance works in Kentucky, what “mortgage insurance” (MI) changes mean for your payment, how streamline differs from a regular refinance, and what the closing costs typically look like. Then you’ll see a side-by-side payment example so you can quickly estimate how much you might save.

Call or text 502-905-3708 for a free FHA refinance review (Kentucky only).

Quick links

What is an FHA Streamline Refinance?

An FHA Streamline Refinance is a refinance option for homeowners who already have an FHA-insured mortgage. It’s called “streamline” because the process can be simpler than a standard refinance.

In many cases, a streamline can be used to:

  • Lower your interest rate and reduce your monthly principal-and-interest payment
  • Move from an adjustable-rate to a fixed-rate mortgage (or vice versa)
  • Shorten your term (for example, 30 years to 15 years) or adjust the term to fit your budget
  • Potentially improve long-term cost if your current FHA mortgage insurance is high

Important: FHA streamline refinances generally require a “net tangible benefit,” meaning the refinance must clearly improve your situation (most commonly a lower payment or more stable terms).

External authority link (FHA basics): HUD.gov

Streamline vs regular refinance in Kentucky

People often ask, “Is streamline the same as a normal refinance?” It’s not. Here’s the practical difference for Kentucky homeowners.

Category FHA Streamline Refinance Regular Refinance (full documentation)
Who it’s for Only borrowers with an existing FHA mortgage FHA, Conventional, VA, USDA refis (depending on eligibility)
Appraisal Often not required (depends on lender/transaction type) Typically required
Income/asset documentation Often reduced compared to a full refinance (lender overlays may apply) Full documentation is standard
Credit qualification Can be simplified (lender overlays may require a minimum score) Full credit underwriting is standard
Cash out Not a cash-out program Cash-out may be available (program rules apply)
Main goal Lower payment and/or improve terms with fewer steps Rate/term improvement, payoff liens, or cash-out depending on goals

If you want to pull equity out, you’re usually looking at a different product (such as an FHA cash-out refinance or another cash-out option). A streamline is built for payment improvement, not cash-out.

Internal link suggestions (add your own URLs):

Closing costs for a streamline: what you’ll actually pay

Even when a streamline is “simpler,” there are still real costs. Here are the common categories you’ll see on a Loan Estimate:

  • Lender fees (origination/underwriting/processing, if charged)
  • Title work and settlement fees
  • Recording and state/local charges
  • Prepaid interest, escrow setup (taxes/insurance), if applicable
  • Mortgage insurance items (depending on FHA rules for your specific case)

Many homeowners search for “no-cost FHA streamline.” What that usually means is the lender credit covers some or all closing costs. It does not mean the refinance is free. A lender credit typically comes with a slightly higher rate. The right choice depends on your break-even timeline and how long you plan to keep the home.

CTA: Call or text 502-905-3708 and I’ll run both options side-by-side: (1) lowest rate, (2) lowest out-of-pocket.

Payment example chart: interest rate vs mortgage insurance

Most borrowers focus only on interest rate. With FHA loans, mortgage insurance can also be a meaningful part of the monthly payment. Below is a simple example to help you compare.

Example assumptions (for illustration only):

  • Base loan amount: $200,000
  • 30-year term
  • Principal and interest only (taxes and insurance not included)
  • Mortgage insurance shown as an estimated monthly MI amount
Scenario Interest rate Estimated monthly P&I Estimated monthly FHA MI Estimated total (P&I + MI) Estimated monthly savings
Current FHA loan (example) 7.00% $1,330 $170 $1,500 —
Streamline refinance (example) 5.75% $1,168 $135 $1,303 $197

How to read this:

  • The rate reduction lowers principal and interest.
  • Mortgage insurance may also change based on FHA rules for your specific FHA case number/endorsement date and the new loan structure.
  • Your real payment change depends on your current balance, remaining term, current MI factor, escrow, and pricing on the day you lock.

If you want, I can run your exact numbers and provide a clear “before vs after” worksheet.

How to apply for an FHA Streamline Refinance in Kentucky

Here’s the clean step-by-step path I use with Kentucky FHA homeowners:

  1. Quick review call (10 minutes): current FHA loan, payment, goals, occupancy, and timeframe.
  2. Case-specific eligibility check: confirm streamline eligibility and net tangible benefit.
  3. Pricing options: compare “lowest rate” vs “lender credit/no out-of-pocket” options.
  4. Disclosures and documentation: provide whatever your lender’s overlay requires (often reduced vs full refi).
  5. Title work and closing: finalize closing costs, escrows, and signing.

Primary CTA:

Call or text 502-905-3708 for a free Kentucky FHA Streamline Refinance review.
You’ll get a clear estimate of payment savings, costs, and break-even timeline.

External links for topical authority (add as needed):

FAQs: Kentucky FHA refinance questions

Will an FHA streamline refinance require an appraisal in Kentucky?

Often, no. Many streamline refinances are completed without a new appraisal, but lender overlays and transaction specifics can change the requirements.

Can I do an FHA Streamline if my home value is down?

Possibly. Since many streamlines do not require a new appraisal, value changes may not prevent approval. The final answer depends on the lender’s overlay and the exact streamline type.

Can I roll closing costs into the loan?

In many refinance structures, some costs may be financed or offset with lender credit. The right approach depends on your break-even timeline and monthly savings.

Is a streamline always the best refinance choice?

No. If you need cash-out, want to remove mortgage insurance via a different program, or need to restructure debt, a full refinance may be a better fit. The correct recommendation comes from a side-by-side comparison.

Free Kentucky FHA refinance review

Joel Lobb
Mortgage Broker
NMLS #57916
Licensed in Kentucky only
Company NMLS #1738461
Call or text: 502-905-3708
www.nmlsconsumeraccess.org

Not a commitment to lend. All loans subject to credit approval and underwriting. Program guidelines and lender overlays can change without notice. Not affiliated with any government agency, including FHA.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Bankruptcy, Collections Accounts, credit scores, Credit Scores/Credit Reports, deed-in-lieu, Disputed Accouts, FHA Guidelines, fico score, short sales

Kentucky FHA Loan Updates: What You Need to Know

 

Kentucky FHA Loan Guidelines for Credit, Down payment, income,

 

 

Kentucky FHA Loans: New Guidelines for Collections & Disputes 2026

Kentucky FHA Loans: New 2026 Guidelines

Collections, Disputes & Judgements Explained

If you’re a Kentucky first-time homebuyer with collections, disputes, or judgements on your credit report, you’re not alone—and you’re not disqualified from homeownership. The Federal Housing Administration (FHA) recently updated its lending guidelines to provide more flexibility and clarity around credit challenges.

Whether you’ve faced financial hardship, billing disputes, or collection accounts, understanding these new FHA rules could be the key to securing your Kentucky mortgage.

📋 Effective Date: All loans with case numbers assigned on or after September 9th, 2026

Understanding FHA Loans with Bad Credit, Disputes & Collections

What Are Disputed Accounts on Your Credit Report?

A disputed account appears on your credit report when you’ve officially challenged information you believe is inaccurate or incorrect. Many Kentucky borrowers don’t realize that disputed accounts can affect their ability to qualify for an FHA loan. The good news? FHA has clarified how these accounts will be evaluated going forward.

Collection Accounts & FHA Loan Qualification

Collection accounts are one of the biggest obstacles for Kentucky first-time homebuyers trying to get approved. Under the new 2026 FHA guidelines, the agency has provided specific underwriting rules that actually offer more opportunity than you might think.

Judgements on Credit Reports

If you have judgements on your credit report, FHA underwriters will evaluate them carefully, but they don’t automatically disqualify you. The new guidelines provide specific direction on how these accounts are assessed during the mortgage approval process.

New FHA Guidelines for Collections, Judgements & Disputes

Collection Account Rules: The $2,000 Threshold

Here’s how FHA Fannie Mae’s DU (Desktop Underwriter) system now handles collection accounts:

If your collection accounts total $2,000 or more cumulatively:

  1. Pay in Full — The collection debt(s) must be paid in full prior to or at closing, OR
  2. Payment Plan — You can establish a payment arrangement with the creditor, and the monthly payment is included in your debt-to-income ratio, OR
  3. 5% Payment Calculation — Include a monthly payment of 5% of the outstanding balances of each collection account in your debt-to-income ratio

If your collection accounts total less than $2,000: These may be treated more favorably during underwriting, though FHA DU will still require verification.

💡 Important for Kentucky Borrowers: If you’re married and in a community property state, collection accounts from your spouse are also counted toward this threshold—even if they’re a non-borrowing spouse.

Manual Underwriting Triggers

Certain credit situations require manual underwriting instead of automated approval. Your Kentucky FHA application will likely be manually reviewed if:

  • $1,000 or more in disputed derogatory credit accounts appears on your credit report
  • 20% or greater decline in self-employed income
  • Mortgage lates within the last 12 months

While manual underwriting takes longer, it doesn’t mean you’ll be denied. Many Kentucky borrowers with credit challenges are successfully approved through manual underwriting because a trained loan officer can explain your circumstances and compensating factors.

Payment History Requirements for FHA Approval

FHA has strict (but achievable) payment history standards:

  • All mortgage and installment loan payments must be on time within the last 12 months
  • No more than two 30-day late payments within the last 24 months
  • No derogatory credit on revolving accounts (credit cards, lines of credit) in the last 12 months
  • Collection accounts must be addressed per the guidelines above

Additional 2026 FHA Updates

New Well Water Testing Requirements

If you’re purchasing a Kentucky home with a private well, be aware of updated FHA requirements for well water testing:

Well water tests must now be:

  • Performed by a disinterested third party (not you, the seller, or anyone with a financial interest in the transaction)
  • Conducted using a method acceptable to your local health authority
  • Documented before approval

Well water testing is now required for:

  • Newly constructed properties and/or new wells
  • Properties with deficiencies in the well or water quality identified by an appraiser
  • Areas where water safety issues have been reported or are known
  • Properties near dumps, landfills, industrial sites, farms, or hazardous waste areas
  • Properties where the well and septic system are less than 100 feet apart

Overtime, Bonus & Tip Income: Simplified Calculations

Good news for Kentucky borrowers with variable income: FHA has clarified how overtime, bonuses, and tips are calculated for loan qualification.

Your overtime, bonus, or tip income will be calculated as the LESSER of:

  1. Average income earned over the previous 2 years (or the total time if earned less than 2 years), OR
  2. Average income earned over the previous year

Commission & Business Expense Requirements Removed

FHA has completely eliminated previous requirements regarding unreimbursed business expenses and commission income or automobile allowances. This aligns FHA guidelines with current IRS tax law, making it easier for self-employed borrowers and those with commission-based income to qualify.

Interested Party Contribution (IPC) Limits

Under the 2026 guidelines, mortgagees and third-party originators are now explicitly included in IPC limits. This means:

  • Lenders cannot contribute toward your down payment to artificially lower your upfront costs
  • Exception: Premium pricing credits don’t count against IPC limits—unless the lender is also acting as the seller, agent, builder, or developer

DTI Requirements & Qualification

31% Front-End / 43% Back-End FHA

31% of your gross monthly income can go toward housing costs. 43% of your gross monthly income can go toward all monthly debts.

No compensating factors required to meet these ratios, making FHA one of the most accessible loan programs for Kentucky borrowers.

Documentation You’ll Need for Underwriting

If your Kentucky FHA application requires manual underwriting due to credit challenges, be prepared to provide:

Employment & Income Documentation

  • Verbal Verification of Employment (VOE)
  • Paystubs covering the most recent 30-day period
  • W2s for the past 2 years
  • 2-year employment history

Housing & Credit History

  • Verification of Rent (VOR) or 12 months of cancelled checks if credit report doesn’t show last 12 months of housing payment history
  • Letter of Explanation (LOX) for any derogatory credit or late payments within the last 24 months

Cash Reserves

  • At least 1 month in reserves from your own funds (cannot be a gift)
  • 3 months required if purchasing a 3-4 unit property

Ready to Get Approved for a Kentucky FHA Loan?

With over 20 years of experience helping Kentucky families overcome credit challenges to achieve homeownership, I specialize in FHA loans for borrowers with collections, disputes, judgements, late payments, and more.

📧 kentuckyloan@gmail.com

📞 502-905-3708 (Call or Text)

I offer free FHA mortgage applications with same-day approvals. Let’s discuss your options today.

About Joel Lobb – Kentucky Mortgage Loan Officer

With over 20 years of mortgage industry experience, I’ve helped more than 1,300 Kentucky families secure homeownership through FHA, VA, USDA, KHC, and Fannie Mae programs.

Licensing & Credentials

  • License Type: Kentucky Mortgage Loan Only
  • NMLS Personal ID: 57916
  • Company NMLS ID: 1738461
  • Verify License: www.nmlsconsumeraccess.org

Kentucky FHA Loan Programs Available

  • ✓ Collections & Disputed Accounts
  • ✓ Judgements
  • ✓ Bad Credit & Low Credit Scores
  • ✓ Late Payments (within 24 months)
  • ✓ Self-Employed & Variable Income
  • ✓ Down Payment Assistance (KHC Programs)
  • ✓ First-Time Homebuyer Programs

Equal Housing Lender

This website is not endorsed by the FHA, VA, USDA, or any government agency. It is an independent educational platform created to assist Kentucky homebuyers with expert advice and accessible loan tools.

Last Updated: January 2026

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FHA Loans & Collections

Your Guide to Disputed Accounts & Collections 2026

💰 Collection Accounts: The $2,000 Threshold

Step 1: Check Total

Add up all collection accounts on your credit report

Step 2: Compare

$2,000?

Is your total more or less?

Step 3: Choose Path

Select your payment strategy

1

Pay in Full

Pay before or at closing

2

Payment Plan

Monthly payment included in DTI

3

5% Calculation

5% of balance added to DTI

❓ Disputed Accounts

What Triggers Manual Underwriting?

If you have $1,000 or more in disputed derogatory accounts, your application will be reviewed by a human underwriter instead of automated approval. This isn’t bad news—it means your circumstances can be explained!

⚠️

$1,000+ Disputes

Disputed derogatory accounts trigger manual review

📉

Self-Employment Drop

20% or greater income decline

⏰

Recent Mortgage Lates

Late payments in the last 12 months

✅

Good News

Manual review = opportunity to explain!

✓ Payment History Requirements

What FHA Requires

✓

All mortgage & installment payments on time in the last 12 months

✓

No more than 2 late payments (30 days) within the last 24 months

✓

No derogatory credit on revolving accounts (credit cards) in the last 12 months

✓

Collections must be addressed per the $2,000 threshold rules

📊 FHA Debt-to-Income Ratios

Your Maximum DTI Limits

Front-End Ratio
31%

Housing costs only

Back-End Ratio
43%

All monthly debts

No compensating factors required to meet these ratios

💡 Bad credit ≠ No approval. Collections and disputes can be managed with the right strategy!

Effective for all loans with case numbers assigned on or after September 9, 2026

Need help with your Kentucky FHA loan? Contact Joel Lobb • 502-905-3708 • kentuckyloan@gmail.com

This infographic is not endorsed by the FHA or any government agency

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, bad credit fha loans Kentucky, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, MINIMUM CREDIT SCORES REQUIRED FOR KENTUCKY FHA, VA, USDA MORTGAGE LOANS

MINIMUM CREDIT SCORES REQUIRED FOR KENTUCKY FHA, VA, USDA MORTGAGE LOANS

MINIMUM CREDIT SCORES REQUIRED FOR KENTUCKY FHA, VA, USDA MORTGAGE LOANS

  1. Kentucky FHA Loans: Kentucky FHA loans are known for their lenient credit score requirements, making them accessible to borrowers with lower credit scores. However, a minimum score of 500 to 580 is typically required, depending on the down payment.

  2. Kentucky VA Loans: VA loans offer flexible credit score requirements, while on paper VA states they don’t require a minimum score to insure the mortgage loan,  most lenders preferring a FICO score of 620 or higher. Veterans, active-duty service members, and eligible spouses can benefit from VA loan options.

  3. Kentucky USDA Loans: USDA loans are designed for rural homebuyers and require no minimum FICO score , but most lenders will want a credit score of 640 or higher. These loans offer zero down payment options for eligible properties.

  4. KHC Mortgage Loans: Kentucky Housing Corporation (KHC) mortgage loans may vary in credit score requirements depending on the lender. It’s essential to work with a knowledgeable mortgage broker like Joel Lobb to understand specific lender guidelines. KHC requires a minimum 620 credit score for FHA, VA, USDA and 660 for Conventional loan programs 

 

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 580 credit score FHA, 620 credit score FHA loan, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, Fannie Mae Homepath, fico score, fico score used for mortgages, fico scores FHA loan, Homeownership Assistance Programs: Kentucky, HomePath

Credit scores required for A Kentucky Mortgage Loan Approval for FHA, VA, USDA and Conventional Fannie Mae

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What credit score is needed to buy a house in Kentucky?

Ultimately, there is no singular credit score that can guarantee you a mortgage approval. Each lender is free to set their own credit score requirements.

But many loan types are insured by government organizations. And lenders cannot accept borrowers with credit scores below the minimum these organizations set. The four most popular home loan types are:

Conventional: Not backed by any government agency, but must meet the Fannie Mae and Freddie Mac underwriting guidelines
FHA: Loans backed by the Federal Housing Administration
VA: Loans backed by the US Department of Veterans Affairs (for military members)
USDA: Loans backed by the US Department of Agriculture (for low- to moderate-income families who buy homes in rural areas)

And here are the minimum credit score requirements for each of these loan types:

Conventional: 
620 SCORE NEEDED. BUT TO GET APPROVED FOR A FANNIE MAE LOAN MOSTLY LIKE YOU WILL NEED A 720 SCORE OR HIGHER IF YOU HAVE LESS THAN 20% EQUITY POSITION OR LESS THAN 20% DOWN PAYMENT DUE TO PRIVATE MORTGAGE INSURANCE
FHA: 
580 for a 3.5% down payment
500 for down payments of at least 10%
**MOST FHA LENDERS WILL WANT A 580 to 620  CREDIT SCORE NOWADAYS

VA: 
No minimum BUT MOST VA LENDERS WILL WANT A 580 to 620 CREDIT SCORE
USDA: 
No minimum, but with a credit score of at least 620 to 640 you could qualify for streamlined credit analysis and chances of approval goes way down if score is below 640…

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Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, fico score, fico scores FHA loan, KY FHA LOANS

CREDIT SCORE REQUIREMENTS FOR KENTUCKY FHA FINANCING

CREDIT REQUIREMENTS FOR KENTUCKY FHA FINANCING

What credit score do I need to qualify for a Kentucky FHA loan is one of the most common questions I hear from Kentucky homebuyers?

The short answer is you must have a minimum credit score of 500 to be eligible for an FHA loan in Kentucky.  Anything lower than 500 disqualifies you from consideration for an FHA loan.

There are two sets of credit score requirements for a Kentucky FHA Loan

One important thing to understand is that the Federal Housing Administration (FHA) does not lend money directly to home buyers. You will fill out an application with a regular lender just as you would if you were applying for any other type of mortgage. What the FHA does is ensure your loan to help protect the lender in case you default.

You will be required not only to meet the FHA guidelines to qualify for a loan but also meet any additional qualifications required by the lender. This means there are two sets of requirements you have to meet with your credit score.

1. The first set of requirements comes from the Department of Housing and Urban Development (HUD). HUD oversees the FHA and determines what a borrower’s minimum eligibility requirements will be to obtain an FHA loan.

2. The second set of requirements comes from the mortgage lender. The mortgage lender has the right to add its requirements to those mandated by HUD.

What HUD requires of borrowers to be eligible for an FHA loan

The HUD Handbook 4000.1 includes the official guidelines when it comes to the FHA mortgage insurance program.

It states that in 2020 the Kentucky FHA borrowers with credit scores of 580 or higher are eligible for a 96.5% loan with 3.5% down.

Borrowers with credit scores from 500 to 579 are eligible for a 90% loan with 10% down.

Individuals with credit scores below 500 are not eligible for the FHA program.

What lenders may require of borrowers to be eligible for an Kentucky FHA loan

Lenders have the right to add requirements over and above the minimum requirements of HUD. These additional requirements are called overlays. Your lender may or may not require them.

This is not something that should come as a surprise to you, however. Requiring a credit score of 580 to 620 is not unusual. In addition to your credit score, you must have a manageable debt level that lenders are comfortable with and enough income to repay your loan.

What credit score do I need to qualify for FHA loan?

Each month Ellie Mae, the software company processing more than ⅓ of America’s mortgage loans, publishes an insight report for mortgage trends and standards. One of the things they track is average credit scores. The following is their report for November 2019 which shows what percentage of successful borrowers fall into what credit score ranges.

500 – 549    2.14%
550 – 599    5.20%
600 – 649    23.01%
650 – 699    34.74%
700 – 749    21.88%
750 – 799    10.87%
800+     1.89%

These percentages show that the majority of borrowers who successfully qualify for FHA loans fall into the 600 to 799 range. While it is true that some successfully qualify in the low range of 500 to 599, you have a much better chance of being approved for a loan with good terms and a low down payment if you fall into the higher range.

 

 

 

For your free credit report and analysis call us today at 502-905-3708 or email us at kentuckyloan@gmail.com

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

 

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

 

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#57916http://www.nmlsconsumeraccess.org/

 

 

 

 

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, FHA Guidelines, fico scores FHA loan, KY FHA LOANS

FHA says as many as 50,000 mortgages will be affected by new lending rules

Two weeks ago, the FHA took steps to limit risk to its single-family portfolio, announcing that it will flag some loans for manual underwriting. FHA’s Chief Risk Officer Keith Becker told the WSJ just how many loans the agency thinks will be affected, adding that the FHA felt that it was appropriate to take some steps to mitigate the risks we’re seeing.

FHA Loan Changes for Kentucky Home Buyers in 2019

 

Two weeks ago, the Federal Housing Administration took steps to mitigate risks to its single-family portfolio, announcing updates to its TOTAL Mortgage Scorecard that will flag some loans for manual underwriting.

The move upset a number of lenders who feared that some of their borrowers would be shut out of FHA financing and that borrowers who began the process but no longer qualified under new guidelines would be angry.

Turns out, their fears have some merit.

An FHA official told The Wall Street Journal that approximately 40,000 to 50,000 loans a year will likely be affected, which amounts to about 4-5% to all the mortgages the FHA insures on an annual basis.

“We have continued to endorse loans with more and more credit risk,” said FHA’s Chief Risk Officer Keith Becker. “We felt that it was appropriate to take some steps to mitigate the risks we’re seeing.”

The WSJ points out that the move is a complete reversal of the agency’s 2016 decision to loosen underwriting standards, nixing an old rule that required manual underwriting for loans with credit scores below 620 and a debt-to-income ratio above 43%.

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But the agency’s annual report to Congress released in November revealed risk trends that threatened to drain the program, among them a significant increase in cash-out refinances, a drop in average borrower credit score, and a jump in borrowers with high DTIs.

Requiring manual underwriting for riskier loans is intended to curb these risks, and there’s a good chance a number of borrowers will no longer qualify.

According to Becker, it’s likely that many of the loans flagged for manual underwriting won’t end up passing muster.

 

 

Source: FHA says as many as 50,000 mortgages will be affected by new lending rules

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First Time Home Buyer Programs Louisville Kentucky

First Time Home Buyer Programs Louisville Kentucky.

via First Time Home Buyer Programs Louisville Kentucky.

 

 

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans credit scores, Credit Scores/Credit Reports, FHA, FHA Guidelines, fico score, Kentucky FHA HUD Homes for $100 Down, Kentucky FHA Important Links

Kentucky FHA Credit Score Requirements for 2014, Based on Lender Feedback

 

FHA Minimum FICO

 

 

 

FICO 620-639 will be allowed as long as the borrower has an Approve through DU . Manually underwritten loans will still be capped at a minimum FICO of 640.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joel Lobb is a Licensed Mortgage Originator: NMLS #57916. Key Financial Mortgage NMLS # 1800 is a licensed Mortgage Broker Company in the State of Kentucky

Legal Disclaimer
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This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.

**Download Fair Housing Booklet – CLICK HERE

All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines. 

The Good Neighbor Next Door Sales Program

 

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans KY FHA LOANS

FHA-backed mortgages will be halted in a shutdown | Money – WYFF Home

FHA-backed mortgages will be halted in a shutdown | Money – WYFF Home.

 

The good news is that most government-backed home loans – those purchased and securitized by Fannie Mae and Freddie Mac – will be unaffected by a shutdown. Those companies pay for their operations out of the fees that they charge lenders.

The bad news is that loans guaranteed by the Federal Housing Administration, the Veteran’s Administration and the rural development loans of the United States Department of Agriculture, won’t be processed. If an application for an FHA-insured loan has not been approved by the time of the shutdown, it will have to wait until after the shutdown ends.

FHA-backed loans accounted for 45% of all mortgages used to purchase homes issued in 2012, according to the Federal Reserve. The FHA alone insures about 60,000 loans a month.

 

 

Read more: http://www.wyff4.com/news/money/FHA-backed-mortgages-will-be-halted-in-a-shutdown/-/9323996/22157598/-/fkmhqwz/-/index.html#ixzz2gWiF9kf7

 

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

 

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans KY FHA LOANS

FHA Mortgages

FHA Mortgages.

via FHA Mortgages.

Related Articles
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Good Neighbor Next Door Sales Program

The Good Neighbor Next Door Sales Program

The Good Neighbor Next Door Sales Program was established December 1, 2006. This program as many others are revised and/or clarified periodically by a HUD mortgagee letter. Mortgagee Letter 2013 – 20, dated June 12, 2013 was issued to further clarify the program.

via The Good Neighbor Next Door Sales Program.

“Low Rates and Fast Closings!- Honest, Friendly local advice.”
Mortgage Broker or Lender at Key Financial Mortgage of Kentucky NMLS #1800
Louisville, KY
License: NMLS #57916
(502) 905-3708
Contact Me
 
http://louisvillemortgageguide.com

Joel Lobb is a Licensed Mortgage Originator: NMLS #57916. Key Financial Mortgage NMLS # 1800 is a licensed Mortgage Broker Company in the State of Kentucky 


Legal Disclaimer 
* 


This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans. 

**Download Fair Housing Booklet – CLICK HERE 


All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines.

The Good Neighbor Next Door Sales Program

Related Articles