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Have Questions or Need Expert Advice? Text, email, or call me below:
Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
email: kentuckyloan@gmail.com
Text/call: 502-905-3708
Fill out my form!
I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
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Have Questions or Need Expert Advice? Text, email, or call me below:
http://www.mylouisvillekentuckymortgage.com/
Analysis of Prospects for Continued Employment for a Kentucky VA Mortgage Loan
Cases involving recently discharged Kentucky Veterans often require the underwriter to exercise a great deal of judgment and flexibility in determining whether the employment income will continue in the foreseeable future. This is because some Veterans may have little or no employment experience other than their military occupation.
Continuity of employment is essential for a Kentucky Veteran with no retirement income, or insufficient retirement income, to support the loan obligation. If the duties the borrower performed in the military are similar or directly related to the duties of the present position, use this as one indicator that the employment is likely to continue.
Most cases fall somewhere between these extremes. Fully develop the facts of each case to make a determination
Borrowers Employed for Less than 12 Months for a Kentucky Mortgage Loan
Generally, employment less than 12 months is not considered stable and reliable. However, the lender may consider the employment stable and reliable if the facts and documentation warrant such a conclusion. Determine whether the borrower's past employment, training, and/or education equipped him or her with particular skills that relate directly to the duties of their current position. If the probability of continued employment is high based on these factors, then the lender may consider including the income in the total effective income.
An explanation of why income of less than 12 months duration was used must be documented on the VA 26-6393, Loan Analysis. If the probability of continued employment is good, but not well supported, the lender may utilize the income if the borrower has been employed at 12 months, to partially offset debts of 6 to 24 months duration.
An explanation of why income was used to offset debts must be documented on the VA 26-6393, Loan Analysis. A borrower may have a valid offer of employment which will begin at or after the anticipated date of closing which can be verified. All data pertinent to underwriting procedures should be considered. However, a paystub(s) may not be available.
https://www.hud.gov/press/press_releases_media_advisories/HUD_No_22_129
Your income, work history, credit score, money down and saving are key factors that lenders will consider during the mortgage process.
Self-employed individual requires two-year tax returns'.
Only borrowers who have an ownership interest of 25% or more in a business and are not W-2 employees are considered “self-employed.” However, there is an exception if the borrower can show a two-year history in a similar line of work, which includes having documentation that proves an equal or higher income in the new role compared to the W2 position.
The debt-to-income ratio is the percentage of your monthly gross income that goes toward paying debts. There are two types of DTI that lenders will consider during the mortgage process: front-end and back-end. The first consists only of your housing-related expenses, whereas the latter also includes all your minimum required monthly debts.
The lower your DTI, the better your chances of securing a home loan.
For example, FHA loans secured by the government have more lenient requirements — you can have a DTI of up to 57% and still get approved for an FHA home loan. USDA loans used to buy homes in rural areas have a lower maximum DTI of 45%.
The loan-to-value ratio (LTV) is a number lenders use to determine how risky a loan to a potential borrower might be. It measures the relationship between the loan amount and the market value of the property you want to buy, and it can also determine whether mortgage insurance will be required.
All mortgages have a maximum LTV to qualify. However, just like with DTI, the LTV varies depending on the loan. FHA loans, for example, have an LTV of 96.5% since they allow down payments of as little as 3.4%.
Going for an LTV of 80% or less is “ideal” because you get unique benefits as a buyer, but that requires a down payment of 20%. Ultimately, each buyer will need to figure out their own LTV based on how large a down payment they can afford.
Your credit history is one of the most important factors when it comes to getting a mortgage.
You don’t need a perfect credit score to buy a house, but those with outstanding scores are usually rewarded with lower interest rates and a greater variety of payment options. Buyers with very poor credit have the option of finding a co-signer who has better credit than them to help secure the loan.
Getting preapproved for a mortgage helps you shop for homes that you can afford and shows you are a serious buyer.
But a letter of preapproval is more than just a way to look good to sellers. It also helps you find the right mortgage lender and provides some flexibility in bargaining or negotiating for a better price range or specific costs, repairs, and improvements to a home.
Getting preapproved makes the entire closing process faster, too. It takes an average of 30 to 45 days to close on a house in Kentucky, and part of that period is due to the process of mortgage approval, title search, appraisal report, home inspections, verifying employment and bank account info along with taxes and w-2s and paystubs to validate the pre-approval.
A borrower will need to verify a two-year cumulative employment history. Less than two year may be
offset via school transcripts; if guaranteed hourly (40) or salaried in nature, the base income
will be allowable. Variable earnings will require at minimum 12 months receipt on current position;
OT, Bonus and commission are considered variable however, must reflect a cumulative two- year
history of receipt.
A minimum 12-month history of contract nursing work is required. Income documentation must
include copies of applicable contracts and WVOE’s for each position. The income will be averaged.
Standard two- year employment history required.
Yes! If the borrower has three scores, the middle score is to be used; two scores, the lower score
is to be used; one score, that score is to be used. If no score, only allowable with AUS A/E and
less than 50% of transactional income contributions. We do not average scores.
Yes! Conventional~ secondary employment will require a two- year history of receipt to use in
conjunction with the primary employment earnings. Multiple second jobs over this time frame are
allowable however the borrower may not have a job gap > one month in length. Part time employment
alone will be considered variable in nature and will require a minimum 12- month history; earnings
will be averaged. FHA~ will require an uninterrupted two- year history for utilization.
Conventional requires a start date within 90 days of the Note date. FHA requires a start date
within 60 days of note date. VA max 60 days of note date. Non contingent contract required for each
entity.
Foreign shell banks; medical marijuana dispensaries; any business or activity related to
recreational marijuana-use , growing, selling or supplying- even if permitted by state or local law.
Policy is not limited to owner of business.
DO maintain up-to-date records The mortgage application process is paperwork-heavy, and lenders could ask you to pull up records at a moment’s notice. To make things easier for yourself, make sure you have the following records readily available:
DO keep your credit score in mint condition. Continue to make payments on time. The lender might pull your credit report again, and any negative change to your score could jeopardize your approval.
DO understand that things change. The requirements to receive approval for a home loan are always changing, and underwriters require more documentation now than they have in the past. Even if requests seem silly, intrusive or unnecessary, keep in mind that if they didn’t need it, they wouldn’t ask for it.
DON’T apply for new credit. Changes in credit can cause delays, change the terms of your financing or even prevent you from closing on a home. If you must open a new account (or even borrow against retirement funds), be sure to consult your loan officer first.
DON’T change jobs midway through the process. Probationary periods and career or status changes — such as from a salaried to a commission-based position, leave of absence or new bonus structure — can be subject to strict rules.
DON’T make undocumented deposits. Large (and sometimes even small) deposits must be sourced unless they’re identified. Make copies of all checks and deposit slips, keep your deposits separate and small, and avoid depositing cash.
DON’T wait to liquidate funds from stock or retirement accounts. If you need to sell investments, do it now and document the transaction. Don’t take the risk of the market working against you, leaving you short on funds for closing.
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