Equifax, Experian and TransUnion will also no longer include medical collection debt under at least $500 on credit reports
20 MAR 2022~LOUISVILLE KENTUCKY MORTGAGE BROKER OFFERING FHA, VA, USDA, CONVENTIONAL, AND KHC ZERO DOWN PAYMENT HOME LOANS~ EDIT”EQUIFAX, EXPERIAN AND TRANSUNION WILL ALSO NO LONGER INCLUDE MEDICAL COLLECTION DEBT UNDER AT LEAST $500 ON CREDIT REPORTS”
1 Vote

Starting in July, Equifax, Experian and TransUnion will delay medical debt credit reporting for one year and limit the reported balance to $500 and above.
Most medical debt to be removed from credit reports starting in July

The three nationwide credit reporting agencies, Equifax, Experian and TransUnion, announced that effective July 1, 2022, they will no longer include medical debt that was paid after it was sent to collections on consumer credit reports.

The companies’ CEOs provided a joint statement on the decision to change their approach to medical collection debt reporting:

“Medical collection debt often arises from unforeseen medical circumstances. These changes are another step we’re taking together to help people across the United States focus on their financial and personal wellbeing,” said Mark W. Begor, CEO Equifax; Brian Cassin, CEO Experian; and Chris Cartwright, CEO TransUnion. “As an industry we remain committed to helping drive fair and affordable access to credit for all consumers.”

The time period before unpaid medical collection debt would appear on a consumer’s report will be increased from 6 months to one year, according to a press release, “giving consumers more time to work with insurance and/or healthcare providers to address their debt before it is reported on their credit file.”

In the first half of 2023, Equifax, Experian and TransUnion will also no longer include medical collection debt under at least $500 on credit reports.

The changes will remove nearly 70% of medical debt in collections accounts from consumer credit reports.

ATTENTION: KHC has announced changes to the Down Payment Assistance Programs! This is great news for buyers in Kentucky!

1. KHC is increasing the down payment assistance program amount from $6,000 to $7,500. This is for both Regular Down Payment and for Affordable Down Payment assistance programs
2. The interest rate on the repayment of the down payment assistance will go from 5.5% to 3.75%. (Affordable Down Payment assistance will remain at 1%)
Realtors: We are here to help you and your clients take advantage of these great opportunities.
Buyers: We are here to answer questions you have regarding this program and qualification requirements.
KHC is used for mostly applicants in Kentucky that don’t have access to money for a down payment on their home.

​​​​KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. Here are several loan programs to help.

Regular DAP
Purchase price up to $346,644 with Secondary Market.
Assistance in the form of a loan up to $7,500 in $100 increments.
Repayable over a 10-year term at 3.75 percent.
Available to all KHC first-mortgage loan recipients.
Affordable DAP
Purchase price up to $346,644​ with Secondary Market.
Assistance up to $7,500.
Repayable over a 10-year term at 1.00 percent.
Borrowers must meet Affordable D​AP income limits.
​MORE ABOUT DOWN PAYMENT AND CLOSING COSTS
No liquid asset review and no limit on borrower reserves.
Specific credit underwriting standards may apply to down payment programs.​
Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.

KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs.

The conventional loan requirements at KHC requires 660 credit score.

The max debt to income ratios are set at 40% an 50% respectively.

KHC ELIGIBILITY AND CREDIT STANDARDS OVERVIEW
(Not intended to be an all-inclusive list.)
Home Buyer Eligibility
• KHC can help both first time and repeat home buyers statewide.
• Must be a U.S. citizen or legal status to be in U.S.
• Applicant’s income ONLY through Secondary Market.
• Property must be the borrower’s principal residence.
• Any Borrower that meets both the income and purchase price limit can have access to Down Payment Assistance.
Kentucky Housing Credit Standards
• 620 minimum credit score required for FHA, VA, & RHS.
• 660 minimum credit score required for Conventional.
• Debt ratios: 40/50%
• Collections in most cases do not need to be paid-off in full.
• Bankruptcies and foreclosures must be discharged two to seven years.
• Non-taxable income can be grossed-up.
Property Eligibility
• Both new and existing property.
• Both new & existing Manufactured Housing.
• With RHS only new construction Manufactured housing is allowed.
• Purchase price limit of $346,644 for Secondary Market or $311,997 for Tax Credit.
• Full appraisal required on all KHC loans.
• With Existing Property, VA is the only loan product that requires a termite inspection.
• A termite soil treatment certificate is required on ALL new construction properties except on conventional loans.
.​

Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA

Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”

When you’re ready to purchase a home in Joel’s area, contact him at:
Phone: 502-905-3708
Email: Kentuckyloan@gmail.com
Website: http://www.mylouisvillekentuckymortgage.com

Text/call 502-905-3708
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

http://www.nmlsconsumeraccess.org/

Documents Needed For All Mortgage Loan Applications for FHA, VA, USDAS, Fannie Mae Loans in Kentucky

ALL BORROWERS:
Copies of W-2’s for the last two years;
Copies of paycheck stubs for the last 30 days (most current);
Copies of checking and saving account statements for last three months (all pages);
Copies of quarterly or semi-annual statements for checking, savings, IRA’s, CD’s, money market fund, stock, 401k, profit sharing, etc.;
Copy of sales contract when ratified;
Employment history for the last two years (address any gaps of employment);
Residency history over the last two years, with name, phone number, address and account number of Land or Mortgage Company. Rental property copies of leases plus mortgage information.
Canceled earnest money check when it clears or corresponding bank statement, if applicable;
Commissioned or bonus income — if 25% or more of base, must have tax returns;
Check for the expense of appraisal & credit report;
Refinance Copy of Note, Deed of Trust, Settlement Statement, Survey, and Insurance information;
Any assets used for down payment, closing cost, and cash reserves must be documented by a paper trail;
If paid off mortgage in the last 2 years, need copies of HUD1;
Copy of drivers license for applicant and co-applicant.
SELF-EMPLOYED BORROWERS:
Copies of most recent 2 years tax returns (with all schedules including k-I’s if applicable);
Copy of current profit & loss statement and balance sheet;
Copy of corporate/partnership tax returns for most recent 2 year period if owning 25% or more of company — copies of W-2’s and/or 1099 forms.
DOCUMENTS WHICH MAY BE REQUIRED:
Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits;
Previous bankruptcy, need copies of petition for bankruptcy and discharge, including supporting schedules;
Divorce Decree if applicable;
Documentation supporting moneys received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, evidence income will continue.
DOCUMENTS NEEDED FOR FHA/VA LOANS:
FHA: Copy of social security card and drivers license for each applicant and co-applicants;
VA: Original Certificate of Eligibility and copy of DD214 Discharge Paper;
VA: Name and address of nearest living relative

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

Joel Lobb
Senior Loan Officer
NMLS#57916

text or call my phone: (502) 905-3708

email me at

kentuckyloan@gmail.com

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org).
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

Email This
BlogThis!
Share to Twitter
Share to Facebook
Share to Pinterest

FHA loans vs. conventional mortgages
CONVENTIONAL LOAN FHA LOAN
Credit score minimum 620 500
Down payment 3% to 20% 3.5% for credit scores of 580+; 10% for credit scores of 500-579
Loan terms 8- to 30-year terms 15- or 30-year terms
Mortgage insurance premiums PMI (if less than 20% down): 0.58% to 1.86% of loan amount Upfront premium: 1.75% of loan amount; annual premium: 0.45% to 1.05%
Interest type Fixed-rate or adjustable-rate Fixed-rate
Pros and cons of FHA loans
Pros
You can have a lower credit score: If you haven’t established much of a credit history or you’ve encountered some issues in the past with making on-time payments, a 620 credit score — the typical magic number for consideration of a conventional mortgage — might seem out of reach. If your credit score is 580, you’re in good standing with most FHA-approved lenders.
You can make a lower down payment: FHA loans also give the option for a smaller down payment. With a credit score of at least 580, you can make a down payment of as little as 3.5 percent. If your credit score is between 500 and 579, you may still be able to qualify for an FHA-backed loan, but you will need to make a 10 percent down payment.
You can stop renting earlier: Since FHA loans make buying a home easier, you can start building equity sooner. Instead of continuing to rent while trying to save more money or improve your credit score, FHA loans make the dream of being a homeowner possible sooner.
Cons
You won’t be able to avoid mortgage insurance: Since your credit score is lower, you’re a bigger risk of default. To protect the lender, you have to pay mortgage insurance. You can roll the upfront insurance premium into your closing costs, but your annual premiums will be divided into 12 installments and show up on every mortgage bill. If you put down less than 10 percent, you have to pay those annual premiums for the entire life of the loan. There’s no escaping them. That’s a big difference from conventional loans: Once you build up 20 percent equity, you no longer have to pay for private mortgage insurance.
You’ll have to meet property requirements: If you’re applying for an FHA loan, the property has to meet some eligibility requirements. The most important is the price: FHA-backed mortgages are not allowed to exceed certain amounts, which vary based on location. You have to live in the property, too. FHA loans for new purchases are not designed for second homes or investment properties.
You could pay more: When you compare mortgage rates between FHA and conventional loans, you might notice the interest rates on FHA loans are lower. The APR, though, is the better comparison point because it represents the total cost of borrowing. On FHA loans, the APR can sometimes be higher than conventional loans.
Some sellers might shy away: In the ultra-competitive pandemic housing market, sellers weighing multiple offers often viewed FHA borrowers less favorably.

Debt-to-Income Ratio for Kentucky Mortgage Loans