Tag: rural development foreclosures

Can you get A Kentucky USDA Loan after  bankruptcy, foreclosure, or short sale?

Getting Approved for a Kentucky USDA Loan after bankruptcy, foreclosure, or short sale. 
Getting Approved for a Kentucky USDA Loan after bankruptcy, foreclosure, or short sale.


The Kentucky USDA Rural Loan program requires a minimum of three years from the date of a bankruptcy, foreclosure, or short sale to the borrower being eligible for a USDA Loan.  

For both Chapter 7 and Chapter 13 bankruptcies the borrower must allow three years from the discharge date prior to submitting a new loan request.

 If the bankruptcy included a property, whether a primary residence or investment property, the earliest a new loan can be obtained is based on USDA Loan short sale and foreclosure guidelines.

When the borrower experienced either a short sale, foreclosure, or surrenders the property through the bankruptcy process, there will be a three year waiting period between the date of property transfer from the borrower to a new entity, and the date the new loan application can be processed.  

The most conservative stance by a Kentucky USDA Loan Underwriter for defining the date of the negative occurrence is the legal recorded transfer date, which is the date the property has been transferred out of the borrowers name and either back to the bank that holds the mortgage note or a subsequent home buyer. From this date the borrower will not be eligible for a USDA Loan for a period of time no less than three years.

However, one of my investors will allow a Chapter 7 bankruptcy discharge date to be considered the date of foreclosure, provided the borrower didn’t re-affirm the mortgage liability.  This differs from when the property transfer date is recorded at the County Clerks Office. This is especially helpful in circumstances where the home owner legally removed their ownership rights to a property, through a Chapter 7 bankruptcy, but the mortgage lien holder was slow to transfer the mortgage back into the name of the bank or sell the property.

If the foreclosed property was secured by a government backed mortgage loan such as a FHA or VA Loan, the property transfer date is no longer considered relevant.  The date that now becomes important is the date when the mortgage lender that held the mortgage note received compensation for their mortgage insurance claim through either The Department of Housing and Urban Development for a FHA Loan or The Veterans Administration for a VA Loan.  

The date of the mortgage insurance claim is identified through a CAIVRS search, which is required on all Kentucky Rural Housing  USDA Loans.

If you have yet to apply for your Kentucky USDA Loan pre-qualification request, you can do so online by clicking here. If you have any Kentukcy USDA Loan or other loan specific questions please, email me at kentuckyloan@gmail.com or text/call 502-905-3708

USDA Rural Housing Lender for Kentucky

Foreclosure and Bankruptcy Guidelines for Kentucky Rural Housing Loans

 Foreclosure within 3 years:

 Including pre-foreclosure activity, such as a pre-foreclosure sale or short sale

in the previous 3 years (refer to Attachment 10-B for additional guidance);

 Bankruptcy within 3 years:

 Chapter 7 bankruptcy discharged in the previous 3 years;

 An elapsed period of less than 3 years, but not less than 12 months, may

be acceptable if the applicant meets the criteria of Section 10.8 of this

Chapter.

 Chapter 13 bankruptcy that has yet to complete repayment (repayment plan in

progress) or has completed payment in the most recent 12 months.

 Plans that are completed for 12 months or greater do not require a credit

exception in accordance with Section 10.8;

 Late mortgage payments if any mortgage trade line during the most recent 12

months shows 1 or more late payments of greater than 30 days

Collections Accounts for Rural Housing Loans in Kentucky

.

In an effort to minimize future risk of open collections left unpaid, the lender will

consider the following during the capacity analysis of the loan request, regardless of the

method utilized to underwrite:

1) Determine if the total outstanding balance of all collections accounts of all

applicants is equal to or greater than $2,000. Unless excluded by state law,

collection accounts of a non-purchasing spouse in a community property state are

included in the cumulative balance of all collections.

2) Remove all medical collections and all types of charge off accounts from the total

balance. Medical collections and charge off accounts must be clearly identifiable

on the credit report.

3) If the remaining outstanding balance of collection accounts are equal to or greater

than $2,000, any of the following actions will apply:

a. Payment in full of all collection accounts at or prior to closing.

b. Payment arrangements are made with each creditor for each collection

account remaining outstanding. A letter from the creditor or evidence on

the credit report is required to validate the payment arrangements. The

agreed upon monthly payment for each outstanding collection account

will be included in the borrower’s debt-to-income ratio.

c. In the absence of a payment arrangement, the lender will utilize in the

debt-to-income ratio a calculated monthly payment. For each collection
utilize 5% of the outstanding balance to represent the monthly payment.


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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). USDA Mortgage loans only offered in Kentucky.

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.

Kentucky USDA Single Family Housing Foreclosed Homes For Sale 2018

 unnamed (33)
State Days Old Counties
KY 365 ADAIR, ALLEN, ANDERSON, BALLARD, BARREN, BATH, BELL, BOONE, BOURBON, BOYD, BOYLE, BRACKEN, BREATHITT, BRECKINRIDGE, BULLITT, BUTLER, CALDWELL, CALLOWAY, CAMPBELL, CARLISLE, CARROLL, CARTER, CASEY, CHRISTIAN, CLARK, CLAY, CLINTON, CRITTENDEN, CUMBERLAND, DAVIESS, EDMONSON, ELLIOTT, ESTILL, FAYETTE, FLEMING, FLOYD, FRANKLIN, FULTON, GALLATIN, GARRARD, GRANT, GRAVES, GRAYSON, GREEN, GREENUP, HANCOCK, HARDIN, HARLAN, HARRISON, HART, HENDERSON, HENRY, HICKMAN, HOPKINS, JACKSON, JEFFERSON, JESSAMINE, JOHNSON, KENTON, KNOTT, KNOX, LARUE, LAUREL, LAWRENCE, LEE, LESLIE, LETCHER, LEWIS, LINCOLN, LIVINGSTON, LOGAN, LYON, MADISON, MAGOFFIN, MARION, MARSHALL, MARTIN, MASON, MCCRACKEN, MCCREARY, MCLEAN, MEADE, MENIFEE, MERCER, METCALFE, MONROE, MONTGOMERY, MORGAN, MUHLENBERG, NELSON, NICHOLAS, OHIO, OLDHAM, OWEN, OWSLEY, PENDLETON, PERRY, PIKE, POWELL, PULASKI, ROBERTSON, ROCKCASTLE, ROWAN, RUSSELL, SCOTT, SHELBY, SIMPSON, SPENCER, TAYLOR, TODD, TRIGG, TRIMBLE, UNION, WARREN, WASHINGTON, WAYNE, WEBSTER, WHITLEY, WOLFE, WOODFORD, WOODFORD
Address Bed/Bath Price
118 Brooks Street 3/1.5 $43,755.00 – GovtBid
Cynthiana, KY 41031 Foreclosure Sale
41 Lori Lane 3/1 $49,580.00 – GovtBid
Garrison, KY 41141 Foreclosure Sale
1718 Amos Ridge Rd 3/1 $53,190.00 – GovtBid
Frenchburg, KY 40322 Foreclosure Sale
777 KY Highway 801 S 3/3 $50,920.00 – GovtBid
Morehead, KY 40351 Foreclosure Sale
14 Catalina Dr. 2/1 $30,150.00 – GovtBid
Walton, KY 41094 Foreclosure Sale
224 Back St. 3/1.5 $11,390.00 – GovtBid
Campton, KY 41301 Foreclosure Sale
375B Freedom School Road 3/2 $34,840.00 – GovtBid
Mt. Vernon, KY 40456 Foreclosure Sale
125 Green Valley Road 3/1.5 $112,836.00 – GovtBid
Williamsburg, KY 40769 Foreclosure Sale
121 Blue Bird Rd. 3/1 $20,502.00 – GovtBid
West Liberty, KY 41472 Foreclosure Sale
14 Short St 3/1 $54,520.00 – GovtBid
Scottsville, KY 42164 Foreclosure Sale
4276 Browning Rd 3/1.5 $50,250.00 – GovtBid
Rockfield, KY 42274 Foreclosure Sale
3710 Aarons Run Rd 3/1 $48,175.00 – GovtBid
Mount Sterling, KY 40353 Foreclosure Sale
53 Elkins St. 3/1 $15,410.00 – GovtBid
Vanceburg, KY 411798022 Foreclosure Sale
33 Earnest Sparks Rd 3/2 $65,480.00 – GovtBid
Columbia, KY 42728 Foreclosure Sale
49 Nipper Dr 4/1 $19,899.00 – GovtBid
Ezel, KY 41425 Foreclosure Sale
120 Frederick Rd. 3/2 $85,305.00 – GovtBid
Nicholasville, KY 40356 Foreclosure Sale
74 Kaden 3/1 $20,370.00 – GovtBid
Ezel, KY 41425 Foreclosure Sale
200 Wilkerson 3/2 $31,490.00 – GovtBid
Scottsville, KY 42164 Foreclosure Sale
19 Bon Jan Lane 3/1 $36,850.00 – GovtBid
Highland Heights, KY 41076 Foreclosure Sale
132 Grace Court 3/2 $91,810.00 – GovtBid
Harrodsburg, KY 40330 Foreclosure Sale
180 Chase Way 3/2.5 $23,130.00 – GovtBid
Glasgow, KY 42141 Foreclosure Sale
5821 Greenvale Lane 3/1 $30,150.00 – GovtBid
Paducah, KY 42033 Foreclosure Sale
661 Cottonwood Dr 3/1 $26,800.00 – GovtBid
Richmond, KY 40475 Foreclosure Sale
1260 Carolina Ave 3/1 $20,100.00 – GovtBid
Maysville, KY 41056 Foreclosure Sale
675 Cottonwood Dr. 3/1 $30,150.00 – GovtBid
Richmond, KY 40475 Foreclosure Sale
 Kentucky USDA Single Family Housing Homes for sale 02/22/2018
Address Bed/Bath Price
535 Hillview st 3/1 $35,510.00 – GovtBid
Grayson, KY 411431462 Foreclosure Sale
213 State Route 716 3/2 $50,710.00 – GovtBid
Ashland, KY 41102 Foreclosure Sale
1069 Raccoon Rd 3/2 $102,475.00 – GovtBid
Raccoon, KY 41557 Foreclosure Sale
217 Brooks Street 3/1.5 $43,755.00 – GovtBid
Cynthiana, KY 41031 Foreclosure Sale
12171 River Rd. 3/2 $67,525.00 – GovtBid
Campbellsburg, KY 40011 Foreclosure Sale
1718 Amos Ridge Rd 3/1 $53,190.00 – GovtBid
Frenchburg, KY 40322 Foreclosure Sale
121 Jellico Drive 3/2 $105,765.00 – GovtBid
Coxs Creek, KY 40013 Foreclosure Sale
1553 Harrodsburg Road 3/1 $33,500.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
777 KY Highway 801 S 3/3 $50,920.00 – GovtBid
Morehead, KY 40351 Foreclosure Sale
114 Mary Street 2/2 $75,345.00 – GovtBid
Winchester, KY 40391 Foreclosure Sale
2185 State Highway 1661 3/2 $53,600.00 – GovtBid
grayson, KY 411436823 Foreclosure Sale
240 hugh St 3/2 $24,790.00 – GovtBid
Grayson, KY 411431911 Foreclosure Sale
5526 Stinson Fork 3/1 $24,120.00 – GovtBid
Rush, KY 41168 Foreclosure Sale
121 Blue Bird Rd. 3/1 $20,502.00 – GovtBid
West Liberty, KY 41472 Foreclosure Sale
3311 Castle HWY 3/1 $69,475.00 – GovtBid
Pleasureville, KY 40057 Foreclosure Sale
1744 E. Gap Hill Rd. 3/2 $30,150.00 – GovtBid
Cub Run, KY 42729 Foreclosure Sale
212 Dogwood Trail 3/2 $52,930.00 – GovtBid
Shepherdsville, KY 40165 Foreclosure Sale
602 Greenhill Rd. 3/1 $40,000.00 – GovtBid
Ashland, KY 41102 Foreclosure Sale
120 Hoffman Ln 3/2 $78,795.00 – GovtBid
LaGrange, KY 40031 Foreclosure Sale
164 Parkway Dr. 2/1 $36,110.00 – GovtBid
Scottsville, KY 42164 Foreclosure Sale
203 Fuller Branch 3/2 $50,250.00 – GovtBid
Vanceburg, KY 41179 Foreclosure Sale
832 Daniels Drive 3/1 $28,140.00 – GovtBid
Worthington, KY 41183 Foreclosure Sale
175 Blue Jay Circle 4/2 $53,600.00 – GovtBid
Falmouth, KY 41040 Foreclosure Sale
113 Alexandria Cir 3/1 $47,245.00 – GovtBid
Nicholasville, KY 40356 Foreclosure Sale
514 Jamie Ridge Dr. 3/2 $56,465.00 – GovtBid
Mt Sterling, KY 40353 Foreclosure Sale
1303 Asbury St 3/1 $32,160.00 – GovtBid
Leitchfield, KY 42754 Foreclosure Sale
2300 West KY 8 3/1 $41,540.00 – GovtBid
Vanceburg, KY 41179 Foreclosure Sale
117 Dove Drive 3/1 $34,840.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale
302 E. St 3/1 $37,455.00 – GovtBid
Mt. Sterling, KY 40353 Foreclosure Sale
72 Cedar Brook Court 3/1 $35,510.00 – GovtBid
Cynthiana, KY 41301 Foreclosure Sale
3487 Wallingford Rd. 3/2 $63,205.00 – GovtBid
Flemingsburg, KY 41041 Foreclosure Sale
186 Fairview Avenue 3/1 $53,600.00 – GovtBid
Lawrenceburg, KY 40342 Foreclosure Sale

 



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Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
Company NMLS ID #1364

Text/call:      502-905-3708
email:          kentuckyloan@gmail.com

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