How does consumer credit counseling effects things on a Kentucky FHA or USDA loan in Kentucky ?
KENTUCKY FHA GUIDELINES FOR CONSUEMR CREDIT COUNSELING
(J) Credit Counseling/Payment Plan (APPROVE/ELIGIBLE)Participating in a consumer credit counseling program does not require a downgrade to a manual underwriting.No explanation or other documentation is needed.
(K) Credit Counseling/Payment Plan (MANUAL UW) Participating in a consumer credit counseling program does not disqualify a Borrower from obtaining an FHA-insured Mortgage, provided the Mortgagee documents that:
one year of the payout period has elapsed under the plan;
the Borrower’s payment performance has been satisfactory and all required payments have been made on time; and
the Borrower has received written permission from the counseling agency to enter into the mortgage transaction.
KENTUCKY RURAL HOUSING USDA GUIDELINES FOR CONSUMER CREDIT COUNSELING
CONSUMER CREDIT COUNSELING - DEBT MANAGEMENT PLANS
Credit counseling provides guidance and support to consumers which may include assistance to negotiate with creditors on behalf of the borrower to reduce interest rates, late fees, and agree upon a repayment plan. The credit score will reflect the degradation of credit due to participation in this plan. Credit accounts that are included in the repayment plan may continue to report as delinquent or as late pays. This is typical and will not be considered as recent adverse credit. Lenders must retain docume
