Tuesday, January 28, 2014

Short Sales and Kentucky FHA Mortgage Loans for Kentucky FHA Back to Work Program

Kentucky FHA Back to Work ProgramShort Sales and Kentucky FHA Mortgage Loans

Kentucky FHA Mortgage Guidelines for Previous short sale or foreclosure
Kentucky FHA Back to Work Program

• FHA permits loans to Kentucky Home-buyers  whose credit history indicates a short sale within the
most recent three years prior to loan application, provided all of the following
conditions are met:

- The borrower must have made all mortgage payments within the month due for 
the 12 months prior to the short sale 

• Borrowers who executed a short sale after completing a permanent 
modification are eligible for Kentucky FHA financing, provided the borrower made at 
least 12 payments on the permanent modification and all payments on the 
permanent modification were made within the month due for the 12 months 
prior to the short sale 

• Borrowers who completed a short sale on a loan that was under a temporary 
modification plan at the time of the short sale are ineligible for Kentucky FHA financing 
for three years after the short sale 

- The short sale must serve as payment in full on the existing liens, and the
existing mortgage servicer may not require repayment of the difference between
the mortgage balance and the short payoff

- Borrowers in default on their mortgages at the time of a short sale are ineligible 
for Kentucky  FHA financing for three years after the date of the short sale unless the 
borrower experienced significant extenuating circumstances 


- For additional information, refer to FHA Mortgagee Letter 2009-52 – Short Sales 






Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346