What are the 2014 Kentucky VA Mortgage Approval Guidelines for a VA loan?

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Louisville Kentucky Mortgage:

 

2014 Kentucky VA Mortgages Qualifying Guidelines:

620 Minimum Credit Score
No Bankruptcies in the last 2 years
100% Financing, Zero Down payment
No monthly mortgage insurance
Termite report required with a clean report Any damage noted on termite report must be fixed before closing
Maximum debt to income rations are approved on AUS findings with a manual underwrite sticking at 41% on the dti.
Residual Income Requirements on all VA loans with most set around $1200 a month

Seller can pay up to 4% of the sales price toward Veteran’s closing costs and prepaids. The Veteran cannot pay for the termite report fee.
Kentucky VA Mortgage Funding Fee are as follows:

KY VA mortgages have an upfront fee. It is called a VA funding fee and it may be financed rather than paid at the time of closing. The funding fee for a home purchase currently ranges from 2.1% for first time use, and 3.30% depending on down payment and whether or not the borrower has used VA benefits in the past. Some VA Funding Fees are exempt if the Veteran is disabled and it shows zero on the VA Certificate of Entitlement.

For purchase and construction loans, members of the regular military fall into the category of first time user or subsequent user. For first time users, no down payment requires a 2.15% fee, up to 10% down payment requires a 1.5% fee, and 10% or more requires a 1.25% fee. For subsequent users, no down payment requires a 3.3% fee, up to 10% down payment requires a 1.50% fee, and 10% or more requires a 1.25% fee.

For the category of Reserves / National Guard, first time users with no down payment requires a 2.4% fee, up to 10% down payment requires a 1.75% fee, and 10% or more requires a 1.5% fee. For subsequent users, no down payment requires a 3.3% fee, up to 10% down payment requires a 1.75% fee, and 10% or more requires a 1.5% fee.

Cash-out refinancing loans for regular military requires a 2.15% fee for first time users and a 3.3% fee for subsequent users. For Reserves / National Guard, the requirement is a 2.4% fee for first time users and a 3.3% fee for subsequent users. On interest rate reduction loans, the VA funding fee is .50% and it is 1.0% on Manufactured Home Loans.

The following persons are exempt from paying the funding fee:

  • Veterans receiving VA compensation for service-connected disabilities.
  • Veterans who would be entitled to receive compensation for service-connected disabilities if they did not receive retirement pay.
  • Surviving spouses of veterans who died in service or from service-connected disabilities (whether or not such surviving spouses are veterans with their own entitlement and whether or not they are using their own entitlement on the loan).

Please note that the VA has the final say on who is exempt

100% VA Cash-Out Refinance | Mortgage Information// //

100% VA Cash-Out Refinance

Equal Housing Lender NMLS#57916

Does a 100% VA Cash-Out Refinance Make Sense?

Veterans with VA home loans can refinance the full amount of their mortgage. This allows homeowners the potential to reduce their interest rate while adding or consolidating debt.

 

100% VA Cash-Out Refinance

Adding debt to an existing first mortgage is considered a cash-out refinance. What kind of debt can you add?

  • Pay off high interest rate credit card balances.
  • Use equity to renovate and rehab your home.
  • Consolidate a 2nd mortgage or home equity line of credit.
  • Pay off high interest auto loans or recreational vehicles.
  • Take out cash to pay college tuition.

In order to get you pre-approved, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free.

Kentucky VA Loan Approval Checklist

The following is a list of documents that may be required to process your VA mortgage loan:
One full month’s worth of pay stubs
•Last 2 years W-2′s
• Last 2 years tax returns
•Copy of your DD214
•Your VA Certificate of Eligibility (we can help you get this if needed)
• Last two months bank statements for all accounts

I don’t need originals, copies are fine. You can fax, email, or drop off at my office below .

Let me know your questions.

Thanks and look forward to helping you

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

kentuckyloan@gmail.com

Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA

Kentucky VA Loan Approval Guidelines for 2014

Originally posted on Louisville Kentucky Mortgage Loans:

Louisville Kentucky Mortgage FHA, VA, KHC, USDA, Fannie Mae • just now Kentucky USDA Rural Housing Loans : KY USDA RURAL HOUSING LOAN PROGRAM GUIDELINES

Louisville Kentucky Mortgage FHA, VA, KHC, USDA, Fannie Mae • just now
Kentucky USDA Rural Housing Loans : KY USDA RURAL HOUSING LOAN PROGRAM GUIDELINES

Louisville Kentucky Mortgage Rates.

Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
(: (502) 905-3708 |7Fax: (502) 327-9119|

Company ID #1364 | MB73346

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Kentucky VA Mortgage Loan

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Kentucky VA Funding Fee Chart

PURCHASE LOANS

 

The funding fee for ALL subsequent use loans closed on or after October 1, 2006, and before October 1, 2007, is 3.35 percent. This applies to all purchase loans where no down payment of 5 percent or more is made as well as cash-out refinances where the fee would have been 3.3 percent. Effective October 1, 2007, the subsequent use fee reverts back to 3.3 percent.

 

Type of Veteran                Down Payment               %  for First Time Use                % for Subsequent Use

Regular                                None                                     2.15%                                     3.3%

Military                                5% or more (up to 10%)       1.50%                                     1.50%

10% or more                          1.25%                                     1.25%

 

Reserves/                            None                                       2.4%                                       3.3%

National Guard                    5% or more                            1.75%                                    1.75%

10% or more                          1.50%                                    1.50%

 

 

CASH OUT REFINANCE LOANS

 

Type of Veteran                                                    % for First Time Use                    % for Subsequent Use

Regular Military                                                            2.15%                                        3.3%

Reserves/National Guard                                            2.4%                                           3.3%

 

Note:  There are no reduced funding fees for regular refinances based on equity.

 

IRRRLs  & Other Loan Type

 

Type of Loan                                        % for Either Type of Veteran WHether First Time or Subsequent Use    

IRRRLs                                                                                                    .50%

Manufactured Home Loans (Not permanently attached)                 1.00%

Loan Assumptions                                                                                    .50%

 

Kentucky VA IRRRL Refinance Mortgage Guidelines for 2014

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Kentucky VA IRRRL Refinance Mortgage Guidelines for 2014

Kentucky VA Mortgage Lender

Kentucky VA Mortgage Lender

Kentucky VA IRRRL Program Highlights for a VA Refinance

  • No Appraisal.  (min 640 FICO)
  • 640 Min FICO to 100% LTV
  • Mortgage only VA IRRRL allowed
  • No Manufactured Homes (single or double-wide)

The maximum loan term is the original term of the VA loan being refinanced plus ten years, but not to exceed 30 years. The borrower cannot pay off liens other than the existing VA loan from IRRRL proceeds. Any second lien-holder would have to agree to subordinate. While the borrower may pay any reasonable amount of discount points in cash, only up to two discount points can be included in the loan amount. An IRRRL cannot be used to take equity out of the property or pay off debts, other than the VA loan being refinanced. Loan proceeds may only be applied to paying off the existing VA loan and to the costs of obtaining or closing the IRRRL. Therefore, the general rule is that the borrower cannot receive cash proceeds from the loan

Joel Lobb
Senior  Loan Officer

(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

Kentucky VA IRRL Streamline Refinance Kentucky

Kentucky VA IRRL Streamline Refinance Kentucky

Click here for today’s Rate Sheet.

Do you have to do an appraisal on a Kentucky VA Streamline Refinance IRRL?

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Kentucky VA IRRRL  offers Interest Rate Reduction Loans with or without an appraisal

Here are key features and benefits of a Ky VA Streamline Refinance:

No appraisal or 2055 required

  • Minimum 640 credit score
  • 1 unit primary residence only
  • LTV may be as high as 130% of the homes value.
  • Mortgage must be current.

For  Kentucky Veterans looking to refinance their existing Ky  VA loans, I can help! I’d be happy to go over our VANA feature, as well as our improved VA program.

Kentucky VA Streamline

Kentucky VA Streamline

Joel Lobb
Senior  Loan Officer

(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

What You Need To Know About A Mortgage… BEFORE You Get One!!!

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What You Need To Know About A Mortgage… BEFORE You Get One!!!.

via What You Need To Know About A Mortgage… BEFORE You Get One!!!.

Why You Can’t Get a Louisville Kentucky FHA, VA, KHC, USDA, Rural Housing and Fannie Mae Home Loan

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It appears that today’s government shutdown has had very little impact on most loan programs so far, with the exception of Kentucky Rural Housing Loans for USDA.The USDA website and GUS are currently unavailable. Their underwriters and the call centers are also not available.Therefore, until further notice, USDA loan applications that have not yet received a firm commitment from Rural Development and have yet to receive a clear to close will not be allowed to close.
Until further notice, we will not issue any commitments on USDA applications but will continue to accept USDA applications and will process them as best we can.This situation is very fluid. We will have more guidance as more information becomes available.

As always, we appreciate your business.

-

Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

Louisville Kentucky VA Refinance for Cashout, rate and term, and IRRL streamline VA refinance Mortgage

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Louisville Kentucky VA REFINANCE Mortgage Guidelines

 

RATE/TERM REFINANCE
  • Anything being paid off other than a first mortgage lien is considered cash out.
  • Buyout of spouse’s equity per divorce decree.
  • Borrower may not receive more than $500.00 cash at closing.
  • Total loan amount is limited to 90% LTV plus Funding Fee.
  • No refinances are allowed within 90 days of the property being listed for sale.
  • The loan may be eligible for refinance after 30 days of the property being listed with the following compensations:
    • Letter of explanation containing the reason the property was listed for sale; the reason the property was taken off of the market; and the borrower’s plans for the property over the next 12 months.
    • Application cannot be dated prior to 30 days after the property has been taken off of the market or the listing has expired.
    • 0x30 payment history required over the previous 12 months.
  • For limited cash out or rate/term refinances, any non‐mortgage debts, collections, judgments or liens that are to be paid off must be paid prior to closing in order for the transaction to be considered as a limited cash out or rate/term refinance.
INTEREST RATE REDUCTION REFINANCE LOAN (IRRRL)
  • Primary Residence refinances only; Non-owner occupied and second homes are not eligible.
  • Must be refinancing a current VA insured mortgage.
  • All borrowers on previous Note must be on new Note.
  • Maximum term is term of the original loan plus up to 10 years not to exceed 30 years.
  • The new interest rate must bear a lower interest rate than the loan it is refinancing (unless the loan is an adjustable rate mortgage)
  • Subordinate financing may remain at max 125% CLTV. Subordinate lender must agree to re-subordination.
  • A credit report and 620 minimum credit score is required but sections V, VI and a-k of VIII of the application are not required to be completed.
  • As of December 1, 2010, employment information for the borrower(s) is now required to be completed on the loan application (Section IV). No income amount or income information is required. Only a Verbal VOE will be completed.

Minimum 2055 conventional appraisal is required.

The total loan amount (base loan amount + VA funding fee = Total loan amount) must be supported by the value of the property. Appraised value must be equal to or greater than the total loan amount. Max LTV/CLTV is 100%.

  • Employment and Income documentation is not required.
  • Borrower may not receive more than $500.00 cash at closing.
  • No refinances are allowed within 6 months of the property being listed for sale.
  • 0x30 payment history required over the previous 12 months.
  • Borrower must have made a minimum of 6 payments on current mortgage with 0x30 pay history to be eligible for VA IRRRL.
  • Borrower must credit qualify if:
    • New P&I increases more than 20% over previous Note P&I when the mortgage term is reduced or when refinancing from an ARM to a Fixed rate.
    • New P&I increases more than 20% over previous Note P&I on a primary residence or when a borrower is removed from the Note.

 

 Louisville Kentucky VA Refinance for Cashout, 
  • Total loan amount is limited to 90% LTV plus Funding.
  • No refinances are allowed within 6 months of the property being listed for sale.
  • LTV is based on the lesser of the appraised value or acquisition cost on properties with less than 6 months ownership seasoning.
  • 0x30 payment history required over the previous 12 months.

Interest Rate Reduction Refinance Loan

The VA Interest Rate Reduction Refinance Loan (IRRRL) lowers your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

IRRRL Facts

  • No appraisal or credit underwriting package is required when applying for an IRRRL.
  • An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
  • When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
  • No lender is required to give you an IRRRL, however, any VA lender of your choosing may process your application for an IRRRL.
  • Veterans are strongly urged to contact several lenders because terms may vary.
  • You may NOT receive any cash from the loan proceeds.

Eligibility

An IRRRL can only be made to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement you originally used.

Additionally:

  • A Certificate of Eligibility (COE) is not required. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.
  • No loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.
  • You may have used your entitlement by obtaining a VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan.
  • The occupancy requirement for an IRRRL is different from other VA loans. For an IRRRL you need only certify that you previously occupied the home.

Application Process

A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or your lender may use our e-mail confirmation procedure in lieu of a certificate of eligibility.

Loan Limits

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location.

The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to four times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price. See Loan Limits for more information about the limits in your county.

VA Funding Fee

Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time. You do not have to pay the fee if you are a:

  • Veteran receiving VA compensation for a service-connected disability, OR
  • Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
  • Surviving spouse of a Veteran who died in service or from a service-connected disability.

The funding fee for second time users who do not make a down payment is slightly higher. Also, National Guard and Reserve Veterans pay a slightly higher funding fee percentage. See Loan Fees for more information about loan costs. Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you money in interest over the life of the loan, you may see a very large increase in your monthly payment if the reduction in the interest rate is not at least one percent (two percent is better).Beware: It could be a bigger increase than you can afford.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

Academy-Mortgage-Apply-Now

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VA Refinance Loans For Conventional, FHA, Sub-Prime and Existing VA Mortgages | VA Loan News Blog

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VA Refinance Loans For Conventional, FHA, Sub-Prime and Existing VA Mortgages | VA Loan News Blog.

VA Refinance Loans For Conventional, FHA, Sub-Prime and Existing VA Mortgages | VA Loan News Blog

But do you know which VA loan option works for you in your situation? Can a Fannie or Freddie loan be refinanced as a VA mortgage, or can a conventional loan qualify for VA streamline refinancing?

There are several options for VA refinance loans. Borrowers who want to get cash back on the refinancing deal, regardless of the type of mortgage being refinanced must explore their VA Cash-Out Refinancing loan options. These loans are appraisal required and also require credit underwriting, which means you’ll be required to submit a credit application much like your original home loan.

Cash out for VA refinancing is not available for VA Streamline Loans, and the VA home loan program does not offer personal loans–borrowers who want cash back should apply for VA Cash-Out and expect the amount of the cash back to be calculated once the original mortgage has been paid off, plus the amount of any included/financed fees or points. VA loan rules permit any type of mortgage loan to be refinanced with a VA Cash-Out Refinance loan.

VA Streamline Refinancing, on the other hand, is aimed specifically at those who have existing VA loans. This type of VA refinance loan is meant to lower the payment and/or interest rate on the mortgage–in fact, there’s a requirement that this happens in most cases. Borrowers who include extras into the Streamline Loan such as the VA Energy Efficient Mortgage (EEM) Option may find their payments higher on the new loan. This can be allowed under the right circumstances, but if your payments increase by more than 20% you will be required to submit a credit application.

These options may or may not be right for you depending on your financial goals and needs. The best way to determine what’s right for you may include a chat with a loan officer about the VA EEM and the inclusion of the VA loan funding fee into the loan amount where applicable.

The VA Certificate Of Eligibility

 

One of

VA Refinance Loans For Conventional, FHA, Sub-Prime and Existing VA Mortgages | VA Loan News Blog

the first requirements in the VA loan application process is that the borrower must show he or she is eligible for a VA guaranteed home loan. This is done by presenting the lender with a VA certificate of eligibility (COE), or asking the lender’s help in obtaining one.

Borrowers are free to request their own VA COE, which can be done online. The VA official site says the following about getting your COE online:

“To get your Certificate of Eligibility (COE) online, please go to the eBenefits portal. If you already have login credentials, click the Login box, and if you need login credentials, please click the Register box and follow the directions on the screen.  If you need any assistance please call the eBenefits Help Desk at 1-800-983-0937.  Their hours are Monday-Friday, 8am to 8pm EST.”

Borrowers may need to attach electronic copies of their DD Form 214 or evidence of their current military service status as part of the application form.

If you prefer to get your VA COE with the help of a lender, be ready to show required proof of military service including current military orders or a copy of your DD Form 214 report of discharge. You may also need to provide Social Security data or a copy of your Social Security card and other information.

You can also apply for a COE by mail–you’ll need to submit VA Form 26-1880, Request for Certificate of Eligibility  and any required additional paperwork to theDepartment of Veterans Affairs. Call them at 1-800-827-1000 to get the current mailing address for COE requests. Some applicants–surviving spouses of military members who died from a service-connected disability, for example–are required to apply by mail.

VA Refinance Loans For Conventional, FHA, Sub-Prime and Existing VA Mortgages | VA Loan News Blog

Kentucky VA Home Loans Guidelines

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502 905 3708

Kentucky VA loans

VA-GUARANTEED HOME
LOANS FOR VETERANS
FOREWORD
The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans. For VA housing loan purposes, the term “veteran” includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.
This pamphlet should help you to understand what VA can and cannot do for the home
purchaser. However, it is not a legal document and should not be interpreted as one. Nothing should be taken as a change of law or regulations. The pamphlet does not attempt to go into detail or into unusual problems. Information about VA loans is given in a narrative format followed by questions and answers in those areas of the greatest concern.
It is suggested that the pamphlet be read in its entirety. Please pay particular attention to the information about your responsibility to determine the condition of the property you purchase and to the information about assumption of your VA loan and obtaining a release of liability. Any questions you have which are not answered should be directed to your VA Regional Loan Center, or to your lender who will take them up with VA, if necessary. A list of VA offices with loan activities may be found in the back of this pamphlet.
For additional information about the VA Loan Guaranty Program, please visit our website at:
http://www.benefits.va.gov/homeloans

6 STEPS IN ARRANGING A VETERAN’S GUARANTEED LOAN
1. Find the property suitable for your needs.
2. Go to a lender and apply for the loan.
3. Present your discharge or separation papers relating to latest period of service and/or a
Certificate of Eligibility.
4. Property is appraised by approved appraiser.
5. Estimate of property’s reasonable value is determined.
6. If application is approved, you get the loan.

WHAT VA CAN DO

VA loans offer the following important features:
Ensure that all veterans are given an equal opportunity to buy homes with VA assistance,
without regard to their race, color, religion, sex, handicap, familial status, or national origin;
No downpayment (unless required by the lender, the purchase price is more than the
reasonable value of the property as determined by VA, or the loan is made with graduated
payment features);
A freely negotiable fixed interest rate competitive with conventional mortgage interest rates;
The buyer is informed of the estimated reasonable value of the property; • Limitations on closing costs;
An assumable mortgage. However, for loans closed on or after March 1, 1988, the
assumption must be approved in advance by the lender or VA. Generally, this involves a
review of the creditworthiness of the purchaser (ability and willingness to make the mortgage payments). Be sure to see section entitled “Loan Repayment Terms”;
Long amortization (repayment) terms;

Right to prepay without penalty (lenders may require that any partial prepayments be in the amount of at least 1 monthly installment of principal or $100, whichever is less);
For houses inspected by VA during construction, a warranty from the builder and VA
assistance in trying to obtain the builder’s cooperation in correcting any justified construction complaint; and
Forbearance extended to VA homeowners experiencing temporary financial difficulty.

WHAT VA CANNOT DO

GUARANTEE THAT THE HOUSE YOU BUY, WHETHER IT IS NEW OR PREVIOUSLY
OCCUPIED, WILL BE FREE OF DEFECTS. The VA appraisal is NOT intended to be an
“inspection” of the property. It is in your best interest to seek expert advice BEFORE you
legally commit yourself in a purchase agreement, particularly if you have any doubts about
the condition of the house. Most sellers will permit you, at your expense, to arrange for an
inspection by a qualified residential inspection service and negotiate with you concerning
repairs to be included in the purchase agreement. Such action can prevent later problems,
disagreements and disappointments.
Remember, VA guarantees only the loan, NOT the condition of the property. It is your
responsibility to be an informed buyer and assure yourself that what you are buying is
satisfactory to you in all respects.
 If you have a home built, VA cannot compel the builder to correct construction defects or otherwise live up to the contract. VA authority is limited to suspension of the builder from
participation in the VA Loan Guaranty program.
VA cannot guarantee that you are making a good investment or that you can resell the house at the price you paid.
VA does not have the authority to provide you with legal services.

REQUIREMENTS FOR VA LOAN APPROVAL
To get a VA loan the law requires that:
You must be an eligible veteran who has available home loan entitlement (except in the case
of an interest rate reduction refinancing loan–see “Interest Rates” below.
The loan must be for an eligible purpose. The purchase price should not exceed the
appraised value. Otherwise, you will have to pay the difference from your own resources;
You must occupy or intend to occupy the property as your home within a reasonable period of time after closing the lon;
You must have enough income to meet the new mortgage payments on the loan, cover the costs of owning a home, take care of other obligations and expenses, and still have enough income left over for family support (a spouse’s income is considered in the same manner as the veteran’s); and
• You must have a good credit record.

THE GUARANTY

VA-guaranteed loans are made by private lenders such as banks, savings and loan associations, or mortgage companies. To get a loan, you apply to the lender. If the loan is approved, VA guarantees the loan when it is closed. The guaranty means the lender is protected against loss if you or a later owner fail to repay the loan

Questions and Answers below to your VA questions

. 1. How much is the guaranty?
VA will guarantee up to 50 percent of a home loan up to $45,000. For loans between $45,000 and $144,000, the minimum guaranty amount is $22,500, with a maximum guaranty, of up to 40 percent of the loan up to $36,000, subject to the amount of entitlement a veteran has available. For loans of more than $144,000 made for the purchase or construction of a home or to purchase a residential unit in a condominium or to refinance an existing VA-guaranteed loan for interest rate reduction, the maximum guaranty is the lesser of 25% or $104,250 which is 25% of the Freddie Mac conforming loan limit for a single family residence for 2007. This figure will change
yearly. (For information about entitlement see “Service Eligibility” below.)
2. Is $36,000 the biggest loan a veteran can get?
No. You may generally borrow up to the reasonable value of the property or the purchase price, whichever is less, plus the funding fee, if required. For certain refinancing loans, the maximum loan is limited to 90 percent of the value of the property, plus the funding fee, if required. To determine the reasonable value, VA requires an appraisal of the property. (Also see “Downpayment Requirements” below.
3. What is the maximum VA loan?
There is no maximum VA loan, except that the loan cannot exceed the lesser of the appraised value or purchase price, plus VA funding fee and energy efficient improvements, if applicable. However, lenders usually won’t make a no-downpayment loan larger than $417,000 ($625,500 in Alaska, Hawaii, Guam, and U.S. Virgin Islands) due to secondary market limitations.
4. Must the loan be repaid?
Yes. A VA guaranteed loan is not a gift. It must be repaid, just as you must repay any money you borrow. The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran. But if you fail to make the payments you agreed to make, you may lose your home through foreclosure, and you and your family would probably lose all the time and money you had invested in it. If the lender does take a loss, VA must pay the guaranty to the lender, and the amount paid by VA must be repaid by you. If your loan closed on or after January 1,1990, you will owe the Government in the event of a default only if there
was fraud, misrepresentation, or bad faith on your part.
5. Does VA make any loan directly to eligible veterans?
Yes, but only to Native Americans on trust land or to supplement a grant to get a specially
adapted home for certain eligible veterans who have a permanent and total service-connected
disability(ies). For information concerning direct loans to Native American Veterans see VA
Pamphlet 26-93-1, which can be found on the internet at: http://www.benefits.va.gov/homeloans/vap26-93-1.asp. See VA Pamphlet 26-69-1 for information concerning specially adapted housing
grants.
SERVICE ELIGIBILITY
You are eligible for VA financing if your service falls within any of the following categories:
Wartime Service. If you served any time during:
 World War II (September 16, 1940 to July 25, 1947),
 Korean Conflict (June 27, 1950 to January 31, 1955),
 Vietnam Era (August 5, 1964 to May 7, 1975), the Vietnam Era begins February 28,
1961 for individuals who served in the Republic of Vietnam.
 Persian Gulf War (August 2, 1990 to present (requires service for 2 years or the full
period for which called to active duty, except that exceptions applying to service
between September 7, 1980 and August 1, 1990 also apply to Persian Gulf War).)
See below.
You must have served at least 90 days on active duty and been discharged or released under
other than dishonorable conditions. If you served less than 90 days, you may be eligible if
discharged because of a service-connected disability.
Peacetime Service. If your service fell entirely within any one of the following periods:
 July 26, 1947 to June 26, 1950,
 February 1, 1955 to August 4, 1964, or
 May 8, 1975 to September 7, 1980 (if enlisted) or to October 16, 1981 (if officer, you
must have served at least 181 days of continuous active duty and been discharged or
released under conditions other than dishonorable). If you served less than 181 days,
you may be eligible if discharged because of a service-connected disability.
Service between September 7, 1980 (enlisted) or October 16, 1981 (officer) and
August 1, 1990.
If your entire period of service was between September 7, 1980 (October 16, 1981) and
August 1, 1990, you must have:
 Completed 24 months of continuous active duty or the full period (at least 181 days) for which
you were called or ordered to active duty, and been discharged or released under conditions
other than dishonorable.
You may also be determined eligible if you were discharged for a service-connected disability,
or you were discharged for the convenience of the Government after completing at least 20
months of a 2-year enlistment, or you completed 181 days of active duty and:
were discharged because of a hardship, or
were determined to have a service-connected compensable disability, or
were discharged or released from active duty for a medical condition which preexisted service
and has not been determined to be service-connected, or If the certificate cannot be issued by ACE, you can request it from VA, by completing VA Form
26-1880, “Request for A Certificate of Eligibility.” The form should be submitted along with either
• received an involuntary discharge or release from active duty for the convenience of the
Government as a result of a reduction in force, or
were discharged or released from active duty for a physical or mental condition not
characterized as a disability and not the result of misconduct, but which did interfere with your
performance of duty.
NOTE: During the Persian Gulf War, the foregoing exceptions to the 2-year requirement apply,
except that 90 days of active duty is sufficient in lieu of 181 days.
Active Duty Service Personnel. If you are now on active duty, eligibility can be established
after having served on continuous active duty for at least 90 days. Upon discharge or release
from active duty, eligibility must be reestablished.
Members of the Selected Reserve. Individuals who are not otherwise eligible and who have
completed at least 6 years in the Reserves or National Guard, or been discharged because of a
service-connected disability, and
 have been discharged with an honorable discharge, or
 have been placed on the retired list, or
 have been transferred to an element of the Ready reserve other than the
Selected Reserve, or
 continue to serve in the Selected Reserve are eligible for a GI loan.
Other Types of Service
Certain United States citizens who served in the armed forces of a government allied with the
United States in World War II.
Unmarried surviving spouses of the above-described eligible persons who died as the result
of service or service-connected injuries (Children of deceased veterans are not eligible).
NOTE: Also, a surviving spouse who remarried on or after attaining age 57, and on or after
December 16, 2003, may be eligible for the home loan benefit.
The spouse of any member of the Armed Forces serving on active duty who is listed as
missing in action, or is a prisoner of war and has been so listed for a total of more than 90
days.
 Individuals with service as members in certain other organizations, services, programs and
schools may also be eligible. Questions about whether this service qualifies for home loan
benefits should be referred to your VA Regional Loan Center.
Obtaining a Certificate of Eligibility
VA determines your eligibility and, if you are qualified, a Certificate of Eligibility will be issued.
ACE (automated certificate of eligibility): In some cases veterans can obtain the Certificate of
Eligibility from a lender. Most lenders have access to the ACE system. This Internet based
application can establish eligibility and issue an online Certificate of Eligibility in a matter of
seconds. Not all cases can be processed through ACE – only those for which VA has sufficient
data in our records. However, veterans are encouraged to ask their lenders about this method of
obtaining a certificate. the originals or legible copies of your most recent discharge or separation papers covering active
military duty since September 16, 1940, which show active duty dates and type of discharge.
This form may be obtained from VA or at http://www.va.gov/vaforms/. If you were separated after
January 1, 1950, you must submit DD Form 214, Certificate of Release or Discharge From Active
Duty.
In addition, if you are now on active duty and have not been previously discharged from active
duty service, you must submit a statement of service which includes the name of the issuing
authority (base or command), and is signed by or at the direction of an appropriate official. The
statement must include date of entry on active duty and the duration of any time lost.
Since there is no uniform document similar to the DD214 for proof of service in the Selected
Reserve, a number of different forms may be accepted as documentation of service in the
Selected Reserve. For those who served in the Army or Air National Guard and were discharged
after at least 6 years of such service, NGB Form 22 may be sufficient. Those who served in the
Army, Navy, Air Force, Marine Corps or Coast Guard Reserves may need to rely on any of a
variety of forms that document at least 6 years of honorable service. Often, it will be necessary to
submit a combination of documents such as an Honorable Discharge certificate together with a
retirement point’s statement. It is the reservist’s responsibility to obtain and submit
documentation of 6 years of honorable service.
The Request for Certificate of Eligibility, VA Form 26-1880, should be mailed to the Atlanta
Regional Loan Center, ATTN: COE (262), P.O. Box 100034, Decature, GA 30031. The Eligibility
Center also maintains a toll free number (888-768-2132) for persons seeking information on
eligibility.
Questions and Answers
1. Does active duty for training in the Guard and Reserves qualify a person for home loan
benefits?
No. Active duty for training in the Guard and Reserves does not qualify a person for home
loan benefits, unless the person completes a total of 6 years in the Guard and/or Reserves and
serves under title 10, U.S.C.
2. Does this kind of service provide entitlement to any other veterans’ home loan benefit?
Yes. Active-duty-for-training service may qualify you for a HUD/FHA veterans’ loan.
Under the National Housing Act loan program, the Federal Housing Administration of the
Department of Housing and Urban Development administers a loan program for veterans.
Financing under this program is available under slightly more favorable terms than those
available to nonveterans. VA’s only role in this program is to determine the eligibility of the
veteran and, if qualified, issue a Certificate of Veteran Status as evidence of entitlement to
HUD/FHA loan benefits for veterans.
You may get a Certificate of Veteran Status by completing VA Form 26-8261a, Request for
Certificate of Veteran Status, and submitting it with the attachments listed in the instructions to VA
for a determination of eligibility. This form may be obtained from VA or at

http://www.va.gov/vaforms/.

All veterans discharged under other than dishonorable conditions from at least 90 days of service
which began before September 8, 1980, are eligible. Veterans of enlisted service in a regular
component of the Armed Forces, which began after September 7, 1980, or officers or reservists
who entered on active duty after October 13, 1982, must have served at least 24 months of
service or the full period for which called to active duty or Active Duty for Training before being
discharged, unless the discharge was for hardship or disability. 3. What can a veteran do who has lost his or her original discharge papers and does not
have a legible copy?
The veteran should obtain a Certificate in Lieu of Lost or Destroyed Discharge. Any VA office will
assist the veteran in obtaining necessary proof of military service.
4. Does a veteran’s home loan entitlement expire?
No. Home loan entitlement is generally good until used. However, the eligibility of service
personnel is only available so long as they remain on active duty. If they are discharged or
released from active duty before using their entitlement, a new determination of their eligibility
must be made, based on the length of service and the type of discharge received.
5. How much entitlement does each veteran have?
Originally, the maximum entitlement available was $2,000; however, legislation enacted since
that time has provided veterans with increases in entitlement up to the present maximum of
$36,000 (or up to $ 89,912 for certain loans over $144,000). The $36,000 may, however, be
reduced if entitlement has been used before to get a VA loan. The amount of remaining
entitlement can be determined by subtracting the amount of entitlement used from the current
maximum available entitlement of $36,000. (See question 8 for information on using remaining
entitlement.)
6. Does VA home loan entitlement provide cash to the veteran?
No. The amount of entitlement relates only to the amount VA will guarantee the lender against
loss.
7. Can a veteran get used entitlement back to use again?
If you have used all or part of your entitlement, you can get that entitlement back to purchase
another home if the following conditions for “restoration” are met:
 The property has been sold and the loan has been paid in full, or
 A qualified veteran-transferee (buyer) must agree to assume the outstanding balance
on the loan and agree to “substitute” his or her entitlement for the same amount of
entitlement you originally used to get the loan. The buyer must also meet the occupancy
and income and credit requirements of the law.
 ONE TIME ONLY if you have repaid the prior VA loan in full, but have not disposed of the
property securing that loan, the entitlement you used in connection with that loan may be
restored.
Any loss suffered by VA as a result of guaranty of the loan (for example a claim paid to a
lender if a loan goes to foreclosure) must be repaid in full before the entitlement used on the
loan can be restored.
Restoration of entitlement is not automatic. You must apply for it by completing and returning VA
Form 26-1880, “Request for a Certificate of Eligibility” to the Eligibility Center. This form may be
obtained from any VA office or at http://www.va.gov/vaforms/.
8. If the requirements for restoration cannot be met, is there any other way a veteran
can obtain another VA loan?
Yes. Veterans who had a VA loan before may still have “remaining entitlement” to use for
another VA loan. The current amount of entitlement available to each eligible veteran is $36,000
($89,912 for certain loans over $144,000). This was much lower in years past and has been increased over time by changes in the law. For example, a veteran who obtained a $25,000 loan
in 1974 would have used $12,500 guaranty entitlement, the maximum then available. Even if that
loan is not paid off, the veteran could use the $23,500 difference between the $12,500
entitlement originally used and the current maximum of $36,000 to buy another home with VA
financing.
Most lenders require that a combination of the guaranty entitlement and any cash downpayment
must equal at least 25 percent of the reasonable value or sales price of the property, whichever is
less. Thus, in the example, the veteran’s $23,500 remaining entitlement would probably meet a lender’s minimum guaranty requirement for a no-downpayment loan to buy a property valued at, and selling for, $94,000. The veteran could also combine a downpayment with the remaining entitlement for a larger loan amount.
9. May several veterans use their entitlement to acquire property together?
Yes. The guaranty is based on each veteran’s interest in the property, but the guaranty on the loan may not exceed the lesser of 40 percent of the loan amount or $36,000 ($89,912 for certain loans over $144,000).
10. If both a husband and wife are eligible, may they acquire property jointly and so
increase the amount which may be guaranteed?
They may acquire property jointly, but the amount of guaranty on the loan may not exceed the lesser of 40 percent of the loan amount or $36,000 ($89,912 for certain loans over $144,000).
11. May a veteran join with a nonveteran in obtaining a VA loan?
Yes, but the guaranty is based only on the veteran’s portion of the loan. The guaranty cannot cover the nonveteran’s part of the loan. This does not apply to a loan to a veteran and spouse when the spouse is not a vteran. (Consult lenders to determine whether they would be willing to accept applications for joint loans of this type.)
12. Does the issuance of a certificate of eligibility guarantee approval of a VA loan?
No. The veteran must still be found to be qualified for the loan from an income and credit
standpoint.

13. Can a veteran or active duty servicemember who is eligible for a Specially Adapted
Housing (SAH) grant apply for a GI home loan from a private lender to cover the
difference between the total cost of the house and the SAH grant?
Yes. A veteran or active duty servicemember who is eligible for a Specially Adapted Housing (SAH) grant can apply for a GI home loan from a private lender to cover the difference between the total cost of the house and the SAH grant. SAH program eligibility requirements and points of
contact information are available at http://www.benefits.va.gov/homeloans/sah.asp.
14. If private financing is not available, can VA make the veteran or active duty
servicemember a direct loan to cover the difference between the total cost of the house
and a Specially Adapted Housing (SAH) grant?
Yes, provided the veteran or active duty servicemember has GI home loan entitlement and
qualifies from a credit standpoint. The maximum direct loan is currently $33,000.
ELIGIBLE LOAN PURPOSES
You may use VA-guaranteed financing:
• To buy a home. • To buy a townhouse or condominium unit in a project that has been approved by VA.
 To build a home.
 To repair, alter, or improve a home.
 To simultaneously purchase and improve a home.
.
To improve a home through installment of a solar heating and/or cooling system or other
energy efficient improvements.
To buy a manufactured (mobile) home and/or lot.
To buy and improve a lot on which to place a manufactured home which you already
own and occupy.
To refinance a manufactured home loan in order to acquire a lot. (See VA Pamphlet 26-
71-1, which is available on the internet at: http://www.benefits.va.gov/homeloans/vap26-71-
1.asp, for more information about manufactured home loans.)
Questions and Answers
1. Can a veteran get a VA loan to pay off the mortgage or other liens of record on his or
her home?
Yes. The following refinancing loans are available under the VA-guaranteed home loan program:
 To pay off the mortgage and/or other liens of record on the home. In most cases, the
loan may not exceed 90 percent of the reasonable value of the property as determined by
an appraisal, plus the funding fee, if required. The loan may include funds for any
purpose which is acceptable to the lender, plus closing costs, including a reasonable
number of discount points. A veteran must have available home loan entitlement. An
existing loan on a manufactured home (except as noted below) may not be refinanced
with a VA-guaranteed loan.
 To refinance an existing VA loan to obtain a lower interest rate. Use of additional loan
entitlement is not required. The loan amount is limited to the balance of the old loan plus
the closing costs, discount points, funding fee, and up to $6,000 in energy efficient
improvements. An existing VA loan on a manufactured home may be refinanced to
obtain a lower interest rate.
2. Can a veteran get a VA business loan?
No, but business loans may be obtained through the SBA (Small Business Administration). The
SBA gives preference to veterans wishing to obtain small business assistance. For more
information on this financing, consult your telephone directory for the SBA office nearest you or
visit http://www.vetbiz.gov for general information on veterans in business.
3. Can a veteran get a VA farm loan?
No, except for a farm on which there is a farm residence which will be personally occupied by the
veteran as a home. The veteran may or may not conduct farming operations. If farming
operations are to be the primary source of the borrower’s income, then it must be established that the venture has a reasonable likelihood for success. If the borrower plans to use the residence, but has a source of income other than the farm which will be the primary source of income, then the farming operations need not be considered. Other types of farm financing may be obtained through the Farmers Home Administration which gives preference to veteran applicants.
Additional information can be obtained by contacting a local office of that agency, the address and telephone number of which can be found in your telephone directory.
4. Can a veteran get a VA loan to buy or construct a residential property containing
more than one family unit?
Yes, but the total number of separate units cannot be more than four if one veteran is buying. If more than one veteran i buying, then one additional family unit may be added to the basic four for each veteran participting; thus, one veteran could buy four units; two veterans, six units; three veterans, seven units, etc.
In addition, if the veteran must depend on rental income from the property to qualify for the loan, the veteran must (a) show that he or she has the background or qualifications to be successful as a landlord, and (b) have enough cash reserves to make the loan payments for at least 6 months without help from the rental income.
5. Can a veteran get a VA loan to purchase a cooperatively-owned apartment?
VA is authorized to approve loans made to purchase a unit in a cooperative (co-op); however, only a limited number of lenders have shown an interest in this type of loan.
6. Can a veteran obtain a VA loan for the purchase of property in a foreign country?
No. The property must be located in the United States, its territories, or possessions. The
territories and possessions are Puerto Rico, Guam, Virgin Islands, American Samoa, and
Northern Mariana Islands.
7. Can a veteran obtain a loan from a private lender in one State for the purchase of
property in another State?
Yes. However, many lenders limit their lending operations to certain areas.
8. May a lender require security from the veteran in addition to the property being
purchased? Yes. This is a matter between the veteran and the lender. While VA does not require that additional security be taken, it does not object if the veteran is willing.
APPLYING FOR THE LOAN
VA-guaranteed loans are obtained by making an application to private lending institutions.
Lenders may be found by asking in the community in which you live what firms in the area make
home loans. This information may be obtained from the local chamber of commerce, by looking
in the telephone directory under “Mortgages,” or by inquiring at banks, savings and loan
associations, mortgage companies, real estate brokers’ offices, and other public and private
lending agencies.
Most mortgage lenders will have the forms and other necessary papers to apply for a certificate of
eligibility and for the loan and will help you fill them out. Any lender who does not have the forms
may obtain them from VA.
If you have a certificate of eligibility, you should present it to your lender when making your loan
application, because the lender will want assurance that you are eligible before accepting the
application. However, a lender will undoubtedly discuss the possibility of making a VA loan to
you without seeing the certificate. In fact, many lenders will assist you in applying for a certificate It is most important that you not make any commitments based on an expected approval of your
loan. You should not, for example, give notice to your landlord until the loan is actually approved
of eligibility. So, even if you have not obtained a certificate, you should not delay making an
application to a lender for a loan just for this reason.
To reduce delays in the processing of the loan, you should be prepared to give the lender the
complete names and addresses and your employee identification numbers for present and past
employers covering a 2-year period. You should also have available the location and account
numbers for savings and checking accounts and all open and recently closed debts and
obligations.
Questions and Answers
1. If a lender is unwilling to accept a veteran’s application for a loan, what should the
veteran do?
The veteran should see another lender. The fact that one lender is not interested in making the
loan the veteran wants does not mean that other lenders will not make the loan.
2. How are VA loans processed? There are two ways a lender may process VA
home loans: “prior approval” or “automatic.”
When the loan is processed on a prior approval basis, the lender takes your application, requests
VA to appraise the property, and verifies your income and credit record. All this information is put
together in a loan package and sent to VA for review. If VA approves the loan, a commitment by
VA to guarantee the loan is sent to the lender. The lender then closes the loan and sends a
report of the closing to VA. If the loan complies with VA requirements, VA issues the lender a
certificate of guaranty.
In automatic processing, the lender still orders an appraisal from VA, but has the authority to
make the credit decision on the loan without VA’s approval. The biggest difference between prior
approval and automatic processing is the time saved by avoiding the need to await VA’s approval
before loan closing.
All lenders do not have the authority to process loans on the automatic basis. Banks, savings
and loan associations, and certain other lenders such as mortgage companies which are
approved by VA, have the privilege of processing VA-guaranteed loans using the automatic
procedure.
Lenders approved to participate in VA’s Lender Appraisal Processing Program (LAPP) are
generally able to expedite the processing of VA appraisals.
3. What should a veteran do while waiting for loan approval?
Sometimes it may take longer than you might expect for the lender or VA to process your loan
application. For instance, your current or former employer may be slow in returning an
employment verification form, or it may take some time to obtain a credit rating from out-of-State
creditors.
Occasionally, the application VA receives from the lender is incomplete in some important aspect
and requires that VA ask the lender to furnish additional information before a final decision can be
made. Ordinarily, you should plan on an average of 4 to 6 weeks to obtain a decision on your
application.
In any case, information on the progress of your application should be obtained from the lender,
who will be most aware of developments as they occur. by VA (or by your lender if the automatic processing procedure is used). Generally, it is not
advisable to move into the home before the loan is approved. If for some reason the loan is not
obtained, you could be faced with additional expense and inconvenience.
4. What is pre-purchase counseling and why would it be helpful?
Pre-purchase counseling is especially helpful to a first time homebuyer. It gives a person useful
information on (1) the process of buying a home, (2) the key players in the home buying process
and (3) debt management. The goal is to create a more well informed homebuyer. While VA
does not require such counseling, we strongly recommend it. There is usually no charge for the
housing counseling. To locate a housing counseling office, call (800) 569-4287. This is a
Department of Housing and Urban Development (HUD) maintained number and referral service.
LOAN REPAYMENT TERMS
The maximum VA home loan term is 30 years and 32 days; however, the term may never be for
more than the remaining economic life of the property as determined by the appraisal.
Questions and Answers
1. May a veteran pay off a VA loan before it becomes due?
Yes. A VA loan may be partially or fully paid at any time without penalty. Partial payments may
not be less than 1 monthly installment or $100, whichever is less. (Consult your lender.)
2. May the maturity on a VA loan be extended to reduce the monthly payments?
Yes, provided the veteran and the lender want to extend it and the extension provides for
complete repayment of the loan within the maximum period permitted for loans of its type.
3. If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance
of the loan?
No. The surviving spouse or other coborrower must continue to make the payments. If there is
no coborrower, the loan becomes the obligation of the veteran’s estate. Protection against this
may be obtained through mortgage life insurance, which must be purchased from private
insurance sources.
4. Will the veteran’s payments always be paid to the same company?
No. It is common practice in the mortgage lending industry to sell mortgages, often before the
first payment is even due. If your loan is sold, you may find that you sent your first payment to
the wrong place and the new holder of your loan may send you an overdue notice. Even though
you know you made the payment, and it is up to the two lenders to get it straightened out, do not
ignore the notice. (Most lenders will notify the veteran if the loan is sold and help straighten out
any problems.)
5. Does having a VA loan limit a veteran’s right or ability to sell the property?
No. A veteran may sell the property to a veteran or nonveteran at any time. However, if the loan
was approved on or after March 1, 1988, and it will be assumed, the qualifications of the assumer
must be reviewed and approved by the lender or VA.
6. When a veteran sells the property to someone who will assume the existing VA loan,
is the veteran released automatically from personal liability for repayment of the loan?
No. If the loan was approved on or after March 1, 1988, the lender or VA must be notified and It is most important that you not make any commitments based on an expected approval of your
loan. You should not, for example, give notice to your landlord until the loan is actually approved
requested to approve the assumer and grant the veteran release from liability. If the loan was approved prior to March 1, 1988, the loan may be assumed without approval from VA or the
lender. However, the veteran is strongly urged to request a release of liability from VA.
7. If a loan closed prior to March 1, 1988 can be assumed without VA’s approval, why
should a veteran be concerned about requesting and obtaining a release from
personal liability?
If a veteran does not obtain a release of liability, and VA suffers a loss on account of a default by
the assumer or some future assumer, a debt may be established against the veteran. Also,
strenuous collection efforts will be made against the veteran if a debt is established.
8. How may a veteran obtain a release of liability from VA?
By having the buyer assume all of the veteran’s liabilities on the VA loan, and by having VA or the
loan holder approve the buyer and the assumption agreement. If the VA loan was approved prior
to March 1,1988, the application forms for a release of liability must be requested from the VA
Regional Loan Center of Jurisdiction. In most cases, if the VA loan was approved on or after
March 1, 1988, the application forms must be requested from the lender to whom the payments
are made.
9. If a veteran obtains a release of liability, is restoration of entitlement automatic?
No. Restoration requirements may be found in the above information.
REPAYMENT PLANS
VA will guarantee loans to purchase homes made with the following repayment plans:
 Traditional Fixed-Payment Mortgage
This type of mortgage loan calls for equal monthly payments for the life or term of the
loan. Each monthly payment reduces a certain portion of the principal owed on the loan
and pays interest accrued to date.
 GPM (Graduated Payment Mortgage)
This repayment plan provides for smaller-than-normal monthly payments for the first few
years (usually 5 years), which gradually increase each year, and then level off after the
end of the “graduation period” to larger-than-normal payments for the remaining term of
the loan. The reduction in the monthly payment in the early years of the loan is
accomplished by delaying a portion of the interest due on the loan each month and by
adding that interest to the principal balance.
 Buydowns
The builder of a new home or seller of an existing home may “buy down” the veteran’s
mortgage payments by making a large lump-sum payment up front at closing that will be
used to supplement the monthly payments for a certain period, usually 1 to 3 years.
 GEM (Growing Equity Mortgage)
This repayment plan provides for a gradual annual increase in the monthly payments with
all of the increase applied to the principal balance. The annual increases in the monthly
payment may be fixed (for example, 3 percent per year) or tied to an appropriate index.
The increases to the monthly payment result in an early payoff of the loan in about 11 to
16 years for a typical 30 year mortgage.
 ARM (Adjustable Rate Mortgages) FUNDING FEE
ARM loans are typically made at an initial interest rate lower than market rate; however
the interest rate can be adjusted – up or down – during the life of the loan. A one year
ARM allows for annual adjustments of no more than 1percent and a lifetime cap of 5
percent. Hybrid ARM loans allow for an initial fixed rate for a period of at least 3 years,
followed by annual adjustments. Depending on the length of the fixed rate period, the
initial adjustment can be up to 2 percent and the lifetime cap is either 5 percent or 6
percent.
DOWNPAYMENT REQUIREMENTS
 Traditional Fixed-Payment Mortgage, Buydown Loans, and Growing Equity Mortgage
VA does not require a downpayment if the purchase price or cost is not more than the
reasonable value of the property as determined by VA, but the lender may require one. If
the purchase price or cost is more than the reasonable value, the difference must be paid
in cash from your own resources.
 Graduated Payment Mortgage
The maximum loan amount may not be for more than the reasonable value of the property
or the purchase price, whichever is less. Because the loan balance will be increasing
during the first years of the loan, a downpayment is required to keep the loan balance
from going over the reasonable value or the purchase price.
INTEREST RATES
The interest rate on VA loans can be negotiated based on prevailing rates in the mortgage
market. Once a loan is made, the interest rate set in the note will stay the same for the life of the
loan.
However, if interest rates go down, and you still own and occupy (or previously occupied) the
property securing a previous VA loan, you may apply for a new VA loan to refinance the previous
loan at a lower interest rate without using any additional entitlement.
CLOSING COSTS
The cost of obtaining any mortgage can be quite a lot. VA regulates those closing costs that a
veteran may be charged in connection with closing a VA loan. No commission or brokerage fees
may be charged to you for obtaining a VA loan. However, you may pay reasonable closing costs
to the lender in connection with a VA-guaranteed loan.
Although some additional costs are unique to certain localities, the closing costs generally include
VA appraisal, credit report, survey, title evidence, recording fees, a 1 percent loan origination fee,
and discount points. The closing costs and origination charge may not be included in the loan,
except in VA refinancing loans.
In addition to negotiating the interest rate with the lender, veterans may negotiate the payment of
discount points and other closing costs with the seller.
Often, sellers will consider paying some or all of the discount points required by the lender in
order to complete the sale. This can have a big impact on the amount of cash you must pay out
of pocket in order to complete the purchase. If the seller will not consider paying points, the
veteran may be able to negotiate an interest rate with the lender which is sufficient to avoid the
need to include any discount points in the transaction. Therefore, if you are seeking to use your entitlement to buy a home, you may be assured that VA
will protect your civil rights and equal housing opportunity.
Veterans must also pay a VA funding fee at the time of loan closing. The fee may be included in
the loan and paid from loan proceeds. The fee is not required from veterans in receipt of serviceconnected compensation, or who would be but for receipt of military retired pay, or surviving
spouses of veterans who died in service or from service-connected causes.
EQUAL HOUSING OPPORTUNITY
Discrimination in the sale of housing because of race, color, religion, sex, handicap, familial
status, or national origin is prohibited by Federal laws. In November 1962, Executive Order
11063 banned discrimination in all federally assisted housing. The “Fair Housing Law,” Title VIII
of the Civil Rights Act of 1968, followed by amending legislation, required positive action be taken
by Federal agencies to prevent discrimination in all housing. Further, Title VIII protects you from
the following acts when they are based on discrimination on account of race, color, religion, sex,
handicap, familial status or national origin:
Refusal to deal,
Discrimination in terms of sale,
Discriminatory advertising,
False representations that a dwelling is not available,
Blockbusting,
Discrimination in financing, and
Discrimination in real estate services.
These laws provide every person an equal opportunity to choose suitable housing. The
Department of Veterans Affairs affirmatively administers the VA housing program by assuring that
all veterans are given an equal opportunity to buy homes with VA assistance. All VA program
participants–builders, brokers and lenders offering housing for sale with VA financing–must
comply with Executive Order 11063 and the Civil Rights Act of 1968, as amended.
Builders must sell newly constructed homes with VA financing to eligible veterans without regard
to the race, color, religion, sex, handicap, familial status or national origin of the veteran.
Brokers participating in the VA home loan program must not discriminate against a person on the
basis of race, color, religion, sex, handicap, familial status or national origin by refusing to show
or sell a property; by discriminating in the terms of the sale; or by representing that property as
not available for inspection.
Lenders participating in the VA loan program are required by the Civil Rights Act of 1968, as
amended, to act on applications for VA home loans without regard to the race, color, religion, sex,
handicap, familial status or national origin of the veteran. In addition, the Equal Credit
Opportunity Act prohibits a lender from discriminating against an applicant on the basis of the
foregoing, or on the basis of age or marital status; because an applicant’s income derives from
any public assistance program; or because the applicant has exercised any right under the
Consumer Credit Protection Act. Lenders are also prohibited from discouraging applications on these grounds. To ensure that each applicant is fully aware of his or her rights under the Equal Credit Opportunity Act, a lender must provide each applicant with the Equal Credit Opportunity Act Notice and a written statement of reasons when credit is denied. The following actions, when based on discrimination because of race, color, religion, sex, handicap, familial status or national origin, are recognized violations of the Federal fair housing law:
 Refusal to negotiate to sell property.
 Discrimination in terms or conditions of sale of real property.
 Advertising indicating any racial, religious, ethnic or gender preference.
 False representations that real property is not available for inspection or sale.
 Blockbusting or inducing owners to sell real property by representations regarding entry into the neighborhood of persons of a particular race, color, religion, sex, handicap, familial status or national origin for profit.
 Discrimination in financing, terms or conditions of a loan, or denying a loan.
If you experience or suspect discrimination by a builder, broker, or lender, VA will investigate. To start a VA investigation, submit a written complaint directly to your VA Regional Loan Center. Your complaint must describe the discriminatory action, including the date it occurred, names, addresses and telephone numbers of all parties involved in the action, and the address of the property involved. VA has a form for this purpose (VA Form 26-8827, Housing Discrimination
Complaint) which you may request from VA.
You should note that in many localities, fair housing associations have been organized to assist you in locating and purchasing a house of your choosing. There may be such an organization in your area.
When the discrimination concerns HUD/FHA (Department of Housing and Urban
Development/Federal Housing Administration) home loans and other housing, complaint letters should be sent to the Department of Housing and Urban Development, Assistant Secretary for Fair Housing and Equal Opportunity, Washington, D.C. 20410.
If you are unable to find new homes available for sale with VA financing in your area, or if you are unable to determine whether particular homes being built are available for sale with VA financing, we suggest you contact your VA Regional Loan Center. In addition, in many areas VA has repossessed homes which it will sell to qualified buyers. Inquiry as to the availability of any VA repossessed homes for sale in the area in which you are interested may be made by contacting
local real estate brokers. Another area to be explored is the existence of State benefits. Many States offer housing programs which are independent from federal programs. The programs and benefits, as well as the qualifying criteria, may differ from one State to the next. Information on State programs may be obtained from State officials or from VA.
VA Offices With Loan Activities

Louisville Kentucky Mortgage Rates

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Louisville Kentucky VA Home Mortgage for 2013

Kentucky VA Loan Guidelines

Kentucky VA Loan Guidelines

VA Loan Credit Issues

VA will analyze a borrower’s past credit performance in determining the loan for approval. A borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. On the opposite side, a borrower who reflects continuous slow payments, judgments and delinquent accounts is not a good candidate for loan approval.
Below is a list of items concerning the borrower’s credit:

LATE MORTGAGE PAYMENTS

In circumstances not involving bankruptcy, satisfactory credit is generally considered to be reestablished after the veteran, or veteran and spouse, have made satisfactory payments for 12 months after the date of the last derogatory credit item(s).
When the underwriter analyzes the borrowers credit; it is the overall pattern of credit behavior that must be reviewed, rather than isolated cases of slow payments. A period of financial difficulty does not disqualify the borrower if a good payment pattern has been maintained since then.
Account balances reduced to judgment by a court must either be paid in full or subject to a repayment plan with a history of timely payments.

NO CREDIT HISTORY

In the area of credit, the lack of an established credit history should not be a deterrent to loan approval. As provided in the credit standards, a satisfactory payment history on items such as rent, utilities, phone bills, etc., may be used to establish a satisfactory credit history.

CHAPTER 7 BANKRUPTCY

The Kentucky VA guidelines state that a minimum of two years must elapse since the discharge date of the borrower and / or spouse’s Chapter 7 bankruptcy, not the filing date. A full explanation of the bankruptcy will be required. The borrower must also have re-established good credit, qualify financially and have good job stability.

CHAPTER 13 BANKRUPTCY

The Kentucky VA guidelines state that they will consider a borrower still paying on a Chapter 13 Bankruptcy if the payments to the court have been satisfactorily made and verified for a period of one year. In addition, the court trustee will need to give written approval to proceed. A full explanation of the bankruptcy will be required. The borrower must also have re-established good credit, qualify financially and have good job stability.

COLLECTIONS, JUDGEMENTS AND FEDERAL DEBTS

The Kentucky VA guidelines state that if a collection is minor in nature, it usually does not need to be paid off as a condition for loan approval. Judgments must be paid in full prior to closing. A borrower is not eligible for the loan if they are delinquent on any federal debt. This can include tax liens, student loans, etc. Payment arrangements that would bring the borrower up to date may be considered for loan approval.

FORECLOSURE

A borrower whose previous residence or other real property was foreclosed on or given a deed-in-lieu of foreclosure within the previous two years since the disposition date is generally not eligible for a VA insured mortgage. If the foreclosure was on a Kentucky VA loan, the applicant may not have full entitlement available for the new loan.

CONSUMER CREDIT COUNSELING PLAN

If a veteran, or veteran and spouse, have prior adverse credit and are participating in a Consumer Credit Counseling Plan, they may be determined to be a satisfactory credit risk if they demonstrate 12 months’ satisfactory payments and the counseling agency approves the new credit

Louisville Kentucky Mortgage Rates

Louisville Kentucky Mortgage Rates.

via Louisville Kentucky Mortgage Rates.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

Kentucky VA Homes for Sale

Featured

Photo City State ZipCode Beds Baths Sq. Ft. Price
Photo
BEREA KY 40403 3.0 2.0 2100 $70,000.00
Photo
BERRY KY 41003 3.0 2.0 2130 $68,000.00
Photo
BOWLING GREEN KY 42101 4.0 1.0 1680 $64,900.00
Photo
BRANDENBURG KY 40108 4.0 3.0 1550 $114,000.00
Photo
BRANDENBURG KY 40108 3.0 4.0 1400 $89,900.00
Photo
CAMPBELLSVILLE KY 42718 3.0 2.0 1456 $34,900.00
Photo
CECILIA KY 42724 3.0 2.0 2128 $102,900.00
Photo
CRITTENDEN KY 41030 3.0 2.5 1120 $60,000.00
Photo
CYNTHIANA KY 41031 5.0 2.0 2128 $42,900.00
Photo
FRANKFORT KY 40601 3.0 2.0 1294 $98,950.00

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33 properties found

preapproved

Kentucky VA Loan Overview for 2013

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As a licensed Kentucky Mortgage loan officer, I have originated over 300 VA Home loans in Kentucky and I know how great they are for Kentucky Families; a home loan with zero down, at a very low 30 year fixed rate with no monthly mortgage insurance. I consider myself a VA Home loan expert from Louisville Kentucky and I would like to assist you in your next VA home loan in Kentucky. I have created a Kentucky VA home mortgage website for information and insights to the VA Home Loan NMLS #57916

502-905-3708 or email kentuckyloabn@gmail,.com  NMLS#57916

Deal with someone locally on your VA loan instead of a person behind a 1-800 number. Honest, straight-forward service right here in Kentucky.

 

 

Louisville Kentucky VA Refinance Loans

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Louisville Kentucky VA Refinance Loans

VA Refinancing for Kentucky VA Mortgages
Can the VA Loan help me lower my monthly bills?
The VA has two major refinance programs. One, the Interest Rate Reduction Refinance Loan, better known as a VA Streamline, helps homeowners get into a lower-rate mortgage to reduce their monthly payment. VA Streamlines come with minimal hassle and paperwork. The VA does not require appraisals or credit checks on Streamlines, but some lenders have recently made them mandatory. We are still able to process some Streamlines without an appraisal, which is a tremendous benefit given the decline in home values across the country. Homeowners have to pay closing costs on a VA Streamline. But these can be rolled into the overall loan amount, along with up to $6,000 in energy efficiency improvements.
Can I refinance my home if I don’t currently have a Kentucky VA Loan?
Kentucky Veterans and active duty homeowners who qualify can refinance into a KEntucky VA loan using the program’s cash-out refinance program. The process for obtaining a Cash-Out Refinance is similar to the process borrowers go through for a VA purchase loan, from the income verification and debt-to-income ratio to a home appraisal. Qualified homeowners with conventional or FHA mortgages do not have to take out cash when they refinance into a VA loan. But they are ineligible for the simpler VA Streamline program.

502-905-3708 or click on link to apply for your free VA refinance loan in Ky. Same day loan approval

Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky

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Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky.

via Specializing in Kentucky FHA/VA, USDA, KHC, Conventional mortgage loans (Fannie Mae )in Ky.

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Joel Lobb (NMLS#57916) Senior Loan Officer 502-905-3708 cell 502-813-2795 fax jlobb@keyfinllc.com Key Financial Mortgage Co. (NMLS #1800)* 107 South Hurstbourne Parkway* Louisville, KY 40222* http://mylouisvillekentuckymortgage.com

 

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Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

Compensating factors may affect the loan decision for a Kentucky VA Mortgage Denial.

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Compensating Factors to over turn a Kentucky VA Loan Mortgage Denial

Compensating factors may affect the loan decision for a Kentucky VA Mortgage.  These factors are especially important when reviewing loans which are marginal with respect to residual income or debt-to-income ratio.  They cannot be used to compensate for unsatisfactory credit.
Valid compensating factors to over turn a Kentucky VA Mortgage loandenial should represent unusual strengths rather than mere satisfaction of basic program requirements.  For example, the fact that an applicant has sufficient assets for closing purposes, or meets the residual income guideline, is not a compensating factor.
Valid compensating factors should logically be able to compensate (to some extent) for the identified weakness in the loan.  For example, significant liquid assets may compensate for a residual income shortfall whereas long-term employment would not.

Compensating factors include, but are not limited to the following:

 

·   excellent credit history,

·   conservative use of consumer credit,

·   minimal consumer debt,

·   long-term employment,

·   significant liquid assets,

·   sizable downpayment,

·   the existence of equity in refinancing loans,

·   little or no increase in shelter expense,

·   military benefits,

·   satisfactory homeownership experience,

·   high residual income,

·   low debt-to-income ratio,

·   tax credits for child care, and

·   tax benefits of home ownership.

If you looking to get approved for a Kentucky VA Mortgage, give us a call today. We can go down to 640 credit scores for VA loans in Kentucky, and the maximum debt to income ratio on some cases can go as high as 50% with the above compensating factors.

 

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

2013 Kentucky VA Loan Limits for counties

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imagescawskepf1

2013 Kentucky VA Loan Limits for counties


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County Name Single Family Home

($0 DOWN AND UP TO)
Max Guaranty
ADAIR $417,000.00 $1,000,000
ALLEN $417,000.00 $1,000,000
ANDERSON $417,000.00 $1,000,000
BALLARD $417,000.00 $1,000,000
BARREN $417,000.00 $1,000,000
BATH $417,000.00 $1,000,000
BELL $417,000.00 $1,000,000
BOONE $417,000.00 $1,000,000
BOURBON $417,000.00 $1,000,000
BOYD $417,000.00 $1,000,000
BOYLE $417,000.00 $1,000,000
BRACKEN $417,000.00 $1,000,000
BREATHITT $417,000.00 $1,000,000
BRECKINRIDGE $417,000.00 $1,000,000
BULLITT $417,000.00 $1,000,000
BUTLER $417,000.00 $1,000,000
CALDWELL $417,000.00 $1,000,000
CALLOWAY $417,000.00 $1,000,000
CAMPBELL $417,000.00 $1,000,000
CARLISLE $417,000.00 $1,000,000
CARROLL $417,000.00 $1,000,000
CARTER $417,000.00 $1,000,000
CASEY $417,000.00 $1,000,000
CHRISTIAN $417,000.00 $1,000,000
CLARK $417,000.00 $1,000,000
CLAY $417,000.00 $1,000,000
CLINTON $417,000.00 $1,000,000
CRITTENDEN $417,000.00 $1,000,000
CUMBERLAND $417,000.00 $1,000,000
DAVIESS $417,000.00 $1,000,000
EDMONSON $417,000.00 $1,000,000
ELLIOTT $417,000.00 $1,000,000
ESTILL $417,000.00 $1,000,000
FAYETTE $417,000.00 $1,000,000
FLEMING $417,000.00 $1,000,000
FLOYD $417,000.00 $1,000,000
FRANKLIN $417,000.00 $1,000,000
FULTON $417,000.00 $1,000,000
GALLATIN $417,000.00 $1,000,000
GARRARD $417,000.00 $1,000,000
GRANT $417,000.00 $1,000,000
GRAVES $417,000.00 $1,000,000
GRAYSON $417,000.00 $1,000,000
GREEN $417,000.00 $1,000,000
GREENUP $417,000.00 $1,000,000
HANCOCK $417,000.00 $1,000,000
HARDIN $417,000.00 $1,000,000
HARLAN $417,000.00 $1,000,000
HARRISON $417,000.00 $1,000,000
HART $417,000.00 $1,000,000
HENDERSON $417,000.00 $1,000,000
HENRY $417,000.00 $1,000,000
HICKMAN $417,000.00 $1,000,000
HOPKINS $417,000.00 $1,000,000
JACKSON $417,000.00 $1,000,000
JEFFERSON $417,000.00 $1,000,000
JESSAMINE $417,000.00 $1,000,000
JOHNSON $417,000.00 $1,000,000
KENTON $417,000.00 $1,000,000
KNOTT $417,000.00 $1,000,000
KNOX $417,000.00 $1,000,000
LARUE $417,000.00 $1,000,000
LAUREL $417,000.00 $1,000,000
LAWRENCE $417,000.00 $1,000,000
LEE $417,000.00 $1,000,000
LESLIE $417,000.00 $1,000,000
LETCHER $417,000.00 $1,000,000
LEWIS $417,000.00 $1,000,000
LINCOLN $417,000.00 $1,000,000
LIVINGSTON $417,000.00 $1,000,000
LOGAN $417,000.00 $1,000,000
LYON $417,000.00 $1,000,000
MCCRACKEN $417,000.00 $1,000,000
MCCREARY $417,000.00 $1,000,000
MCLEAN $417,000.00 $1,000,000
MADISON $417,000.00 $1,000,000
MAGOFFIN $417,000.00 $1,000,000
MARION $417,000.00 $1,000,000
MARSHALL $417,000.00 $1,000,000
MARTIN $417,000.00 $1,000,000
MASON $417,000.00 $1,000,000
MEADE $417,000.00 $1,000,000
MENIFEE $417,000.00 $1,000,000
MERCER $417,000.00 $1,000,000
METCALFE $417,000.00 $1,000,000
MONROE $417,000.00 $1,000,000
MONTGOMERY $417,000.00 $1,000,000
MORGAN $417,000.00 $1,000,000
MUHLENBERG $417,000.00 $1,000,000
NELSON $417,000.00 $1,000,000
NICHOLAS $417,000.00 $1,000,000
OHIO $417,000.00 $1,000,000
OLDHAM $417,000.00 $1,000,000
OWEN $417,000.00 $1,000,000
OWSLEY $417,000.00 $1,000,000
PENDLETON $417,000.00 $1,000,000
PERRY $417,000.00 $1,000,000
PIKE $417,000.00 $1,000,000
POWELL $417,000.00 $1,000,000
PULASKI $417,000.00 $1,000,000
ROBERTSON $417,000.00 $1,000,000
ROCKCASTLE $417,000.00 $1,000,000
ROWAN $417,000.00 $1,000,000
RUSSELL $417,000.00 $1,000,000
SCOTT $417,000.00 $1,000,000
SHELBY $417,000.00 $1,000,000
SIMPSON $417,000.00 $1,000,000
SPENCER $417,000.00 $1,000,000
TAYLOR $417,000.00 $1,000,000
TODD $417,000.00 $1,000,000
TRIGG $417,000.00 $1,000,000
TRIMBLE $417,000.00 $1,000,000
UNION $417,000.00 $1,000,000
WARREN $417,000.00 $1,000,000
WASHINGTON $417,000.00 $1,000,000
WAYNE $417,000.00 $1,000,000
WEBSTER $417,000.00 $1,000,000
WHITLEY $417,000.00 $1,000,000
WOLFE $417,000.00 $1,000,000
WOODFORD $417,000.00 $1,000,000
Joel Lobb (NMLS#57916) Senior Loan Officer 502-905-3708 cell 502-813-2795 fax jlobb@keyfinllc.com Key Financial Mortgage Co. (NMLS #1800)* 107 South Hurstbourne Parkway* Louisville, KY 40222* http://mylouisvillekentuckymortgage.com
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

applynow

Louisville Kentucky Mortgage Rates

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Louisville Kentucky Mortgage Rates.

via Louisville Kentucky Mortgage Rates.

Kentucky Mortgage  Rates

Kentucky Mortgage Current Interest Rates
Fixed Rate Programs
    Lock
days
 iQualifying
Ratios
Program Calculator Rate Points APR
Conforming 30 year FRM 3.375 0.000 3.574 30 28 / 41Prequalify
Kentucky Mortgage Only- Rates Change w/o notice
Conforming 20 year FRM 3.250 0.000 3.412 30 40 / 41Prequalify
kentucky mortgage rates only- change w/o notice
Conforming 15 year FRM 2.750 0.500 2.974 30 28 / 41Prequalify
kentucky mortgage rates only- change w/o notice
FHA 30 year FRM 2.875 0.500 4.187 30 35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
FHA 15 year FRM 2.750 0.000 3.389 30 35 / 50Prequalify
kentucky mortgage rates only- change w/o notice
Jumbo 30 year FRM 3.875 1.000 4.385 30 28 / 36Prequalify
kentucky mortgage rates only- change w/o notice
VA 30 Year FRM 3.000 0.000 4.114 30 41 / 41Prequalify
kentucky mortgage rates only- change w/o notice




Kentucky Mortgage  Rates are subject to qualifying criteria and Mortgage Rates can change without notice.
Assumptions include a 640 or higher credit score for FHA, USDA, KHC,  and 620 credit scores for a VA loan. A loan amount of $100,000.00 is assumed and a 30 day lock required for a Kentucky Mortgage Only.

A 720 credit score or higher is assumed for a Kentucky Conventional Rate Mortgage loan rates and a loan amount of $100,000.00. The loan to value for Kentucky Conventional loans are assumed at 80% ltv or less.

  • The displayed Annual Percentage Rates (APRs) reflect the interest rates, total points, and additional estimated pre-paid finance charges for the loan products shown for Kentucky Mortgage Rates, but do not include other closing costs.
  • The approximate cost of prepaid finance charges does not constitute and is not a substitute for the Good Faith Estimate of Closing Costs (GFE) that you will receive once you apply for a Kentucky Mortgage  loan. This is not a Kentucky mortgage loan approval or commitment to lend. The actual fees, costs and monthly payment on your specific loan transaction may vary and may include additional fees and costs.
  • For loans with less than 20% down payment borrower-paid mortgage insurance may apply.
  • These Kentucky  mortgage rates are based on a variety of assumptions and conditions which include a consumer credit score which may be higher or lower than your individual credit score. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit profile up to the time of closing.
  • FHA

    • Kentucky FHA loans require both an upfront and an annual mortgage insurance premium. The premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling, and other factors. All Kentucky FHA loans require a minimum credit score of 640
  • Jumbo

    • Kentucky Jumbo Mortgage  rates are higher for borrowers who do not meet the criteria for Conventional Mortgage Loans. All Jumbo loans require a 680 or higher score and a maximum loan to value of 80% 
  •   VA Loans
                Kentucky VA loans require a funding fee upfront paid to VA in the form of mortgage insurance .he premium varies based on the loan characteristics, your credit score, whether you’ve received loan counseling   factors. Kentucky VA loans require a minimum credit score of 620
  • USDA Loans
                         Kentucky  USDA loans require a funding fee upfront and a monthly mortgage insurance premium paid to RHS/USDA. The premium varies based on the loan characteristics, your credit score,    and other factors. Kentucky USDA loans require a 640 minimum credit score. 


Free Credit Report and Pre qualifications available anytime. 


                                                                

.  Joel Lobb (NMLS#57916) is a licensed mortgage loan officer in the state of Kentucky.



This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. 


Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage (NMLS #1800) 107 South Hurstbourne Parkway*
Louisville, KY 40222*

Kentucky 2012 VA County Income Limits

Featured

This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. 

Kentucky VA Loan Limits

(includes VA limits in Fort Thomas, Erlanger, Florence, Ashland, Frankfort, Lexington, Richmond, Somerset, Middlesborough, Elizabethtown, Louisville, Owensboro, Hopkinsville, Fort Campbell North, Mayfield, Paducah, Madisonville, Henderson

2011 Kentucky VA County Loan Limits

The Department of Veterans Affairs Loan Guaranty program does not

impose a maximum amount that an eligible veteran may borrow using a VAguaranteed

loan. However, the following county “limits” must be used to

calculate VA’s maximum guaranty amount for a particular county.

These limits

apply to all loans closed January 1, 2011 through September 30, 2011

.

Fiscal Year 2012 county loan limits will be made available as soon as possible.

The maximum guaranty amount (available for loans over $144,000) is 25

percent of the 2011 VA limit shown below. Therefore, a veteran with full

entitlement available may borrow up to the 2011 VA limit shown below and VA

will guarantee 25 percent of the loan amount. If a veteran has previously used

entitlement that has not been restored, the maximum guaranty amount available

to that veteran must be reduced accordingly. Lenders should check their own

investor requirements regarding guaranty amounts and downpayments.

Questions about VA loans in a particular county may be directed to the VA

Regional Loan Center listed for that county.

VA Loans for KENTUCKY Counties

FREE FOR YOUR WEBSITE:– KENTUCKY VA Limits Calculator

Although VA guaranteed loans do not have a maximum dollar amount, lenders who sell their VA loans in the secondary market must limit the size of those loans to the maximums prescribed by GNMA (Ginnie Mae) which are listed below.

More info: VA Jumbo Loans


County Name Single Family Home

($0 DOWN AND UP TO)
Max Guaranty
ADAIR $417,000.00 $1,000,000
ALLEN $417,000.00 $1,000,000
ANDERSON $417,000.00 $1,000,000
BALLARD $417,000.00 $1,000,000
BARREN $417,000.00 $1,000,000
BATH $417,000.00 $1,000,000
BELL $417,000.00 $1,000,000
BOONE $417,000.00 $1,000,000
BOURBON $417,000.00 $1,000,000
BOYD $417,000.00 $1,000,000
BOYLE $417,000.00 $1,000,000
BRACKEN $417,000.00 $1,000,000
BREATHITT $417,000.00 $1,000,000
BRECKINRIDGE $417,000.00 $1,000,000
BULLITT $417,000.00 $1,000,000
BUTLER $417,000.00 $1,000,000
CALDWELL $417,000.00 $1,000,000
CALLOWAY $417,000.00 $1,000,000
CAMPBELL $417,000.00 $1,000,000
CARLISLE $417,000.00 $1,000,000
CARROLL $417,000.00 $1,000,000
CARTER $417,000.00 $1,000,000
CASEY $417,000.00 $1,000,000
CHRISTIAN $417,000.00 $1,000,000
CLARK $417,000.00 $1,000,000
CLAY $417,000.00 $1,000,000
CLINTON $417,000.00 $1,000,000
CRITTENDEN $417,000.00 $1,000,000
CUMBERLAND $417,000.00 $1,000,000
DAVIESS $417,000.00 $1,000,000
EDMONSON $417,000.00 $1,000,000
ELLIOTT $417,000.00 $1,000,000
ESTILL $417,000.00 $1,000,000
FAYETTE $417,000.00 $1,000,000
FLEMING $417,000.00 $1,000,000
FLOYD $417,000.00 $1,000,000
FRANKLIN $417,000.00 $1,000,000
FULTON $417,000.00 $1,000,000
GALLATIN $417,000.00 $1,000,000
GARRARD $417,000.00 $1,000,000
GRANT $417,000.00 $1,000,000
GRAVES $417,000.00 $1,000,000
GRAYSON $417,000.00 $1,000,000
GREEN $417,000.00 $1,000,000
GREENUP $417,000.00 $1,000,000
HANCOCK $417,000.00 $1,000,000
HARDIN $417,000.00 $1,000,000
HARLAN $417,000.00 $1,000,000
HARRISON $417,000.00 $1,000,000
HART $417,000.00 $1,000,000
HENDERSON $417,000.00 $1,000,000
HENRY $417,000.00 $1,000,000
HICKMAN $417,000.00 $1,000,000
HOPKINS $417,000.00 $1,000,000
JACKSON $417,000.00 $1,000,000
JEFFERSON $417,000.00 $1,000,000
JESSAMINE $417,000.00 $1,000,000
JOHNSON $417,000.00 $1,000,000
KENTON $417,000.00 $1,000,000
KNOTT $417,000.00 $1,000,000
KNOX $417,000.00 $1,000,000
LARUE $417,000.00 $1,000,000
LAUREL $417,000.00 $1,000,000
LAWRENCE $417,000.00 $1,000,000
LEE $417,000.00 $1,000,000
LESLIE $417,000.00 $1,000,000
LETCHER $417,000.00 $1,000,000
LEWIS $417,000.00 $1,000,000
LINCOLN $417,000.00 $1,000,000
LIVINGSTON $417,000.00 $1,000,000
LOGAN $417,000.00 $1,000,000
LYON $417,000.00 $1,000,000
MADISON $417,000.00 $1,000,000
MAGOFFIN $417,000.00 $1,000,000
MARION $417,000.00 $1,000,000
MARSHALL $417,000.00 $1,000,000
MARTIN $417,000.00 $1,000,000
MASON $417,000.00 $1,000,000
MCCRACKEN $417,000.00 $1,000,000
MCCREARY $417,000.00 $1,000,000
MCLEAN $417,000.00 $1,000,000
MEADE $417,000.00 $1,000,000
MENIFEE $417,000.00 $1,000,000
MERCER $417,000.00 $1,000,000
METCALFE $417,000.00 $1,000,000
MONROE $417,000.00 $1,000,000
MONTGOMERY $417,000.00 $1,000,000
MORGAN $417,000.00 $1,000,000
MUHLENBERG $417,000.00 $1,000,000
NELSON $417,000.00 $1,000,000
NICHOLAS $417,000.00 $1,000,000
OHIO $417,000.00 $1,000,000
OLDHAM $417,000.00 $1,000,000
OWEN $417,000.00 $1,000,000
OWSLEY $417,000.00 $1,000,000
PENDLETON $417,000.00 $1,000,000
PERRY $417,000.00 $1,000,000
PIKE $417,000.00 $1,000,000
POWELL $417,000.00 $1,000,000
PULASKI $417,000.00 $1,000,000
ROBERTSON $417,000.00 $1,000,000
ROCKCASTLE $417,000.00 $1,000,000
ROWAN $417,000.00 $1,000,000
RUSSELL $417,000.00 $1,000,000
SCOTT $417,000.00 $1,000,000
SHELBY $417,000.00 $1,000,000
SIMPSON $417,000.00 $1,000,000
SPENCER $417,000.00 $1,000,000
TAYLOR $417,000.00 $1,000,000
TODD $417,000.00 $1,000,000
TRIGG $417,000.00 $1,000,000
TRIMBLE $417,000.00 $1,000,000
UNION $417,000.00 $1,000,000
WARREN $417,000.00 $1,000,000
WASHINGTON $417,000.00 $1,000,000
WAYNE $417,000.00 $1,000,000
WEBSTER $417,000.00 $1,000,000
WHITLEY $417,000.00 $1,000,000
WOLFE $417,000.00 $1,000,000

NOTE: For all counties other than those listed below, the 2011 limit is $417,000.

Louisville Kentucky VA Home Loan Info

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Basic Elements of a Louisville Kentukcy VA-Guaranteed Loan

Change Date
April 10, 2009, Change 9

  • This section has been updated to correct hyperlinks and make minor grammatical edits.
  • Subsection a has redefined the amount of guaranty.
a. General rules
The following table provides general rules and information critical to understanding a VA loan guaranty.  Exceptions and detailed explanations have been omitted.  Instead, a reference to the section in this handbook that addresses each subject is provided.
Subject Explanation Section
Maximum Loan Amount VA has no specified dollar amount(s) for the “maximum loan.”  The maximum loan amount depends upon:

  • the reasonable value of the property indicated on the Notice of Value (NOV), and
  • the lenders needs in terms of secondary market requirements.
3 of this chapter
Downpayment No downpayment is required by VA unless the purchase price exceeds the reasonable value of the property, or the loan is a Graduated Payment Mortgage (GPM).  The lender may require a downpayment if necessary to meet secondary market requirements. 3 of this chapter
Amount of Guaranty Guaranty is the amount VA may pay a lender in the event of loss due to foreclosure. 4 of this chapter
Occupancy The veteran must certify that he or she intends to personally occupy the property as his or her home. 5 of this chapter

Continued on next page

 

1.  Basic Elements of a VA-Guaranteed Loan, Continued

a. General rules (continued)
Subject Explanation Section
Interest Rate and Points Interest rate and points are negotiated between the lender and veteran.

  • The veteran and seller may negotiate for the seller to pay all or some of the points.
  • Points must be reasonable.
  • Points may not be financed in the loan except with Interest Rate Reduction Refinancing Loans (IRRRLs).
6 and 7 of this chapter
Purpose of Guaranty To encourage lenders to make VA loans by protecting lenders/loan holders against loss, up to the amount of guaranty, in the event of foreclosure. 11 of this chapter
Underwriting Flexible standards.  The veteran must have:

  • satisfactory credit, and
  • satisfactory repayment ability

-   stable income

-   residual income (net effective income minus monthly shelter expense) in accordance with regional tables, and

-   acceptable ratio of total monthly debt payments to gross

monthly income (A ratio in excess of 41% requires closer

scrutiny and compensating factors.).

chapter 4
IRRRLs (Streamline Refinancing Loans) Used to refinance an existing VA loan at a lower interest rate.

  • No appraisal or underwriting is required.
  • Closing costs may be financed in the loan.
  • Any reasonable discount points can be charged, but only two discount points can be financed in the loan.
  • No cash to the borrower.

Note:  A fixed rate loan to refinance a VA Adjustable Rate Mortgage (ARM) may be at a higher interest rate.

1 and 2 of chapter 6

Continued on next page

 

1.  Basic Elements of a VA-Guaranteed Loan, Continued

a. General rules (continued)
Subject Explanation Section
Funding Fee The veteran must pay a funding fee to help defray costs of the VA home loan program.

  • Find the percentage appropriate to the veteran’s particular circumstances on the funding fee table.
  • Apply this percentage to the loan amount to arrive at the funding fee.
  • The funding fee may always be financed in the loan.
8 of Chapter 8

 

Closing costs Those payable by the veteran are limited by regulation to a specific list of items plus a one percent flat charge by the lender.

  • Any other party, including the seller, can pay any costs on behalf of the veteran.
  • Closing costs cannot be financed in the loan except on certain refinancing loans.  (See chapter 8.)
2, 4, and 7 of chapter 8
Security Instruments The lender may use any note or mortgage forms they wish as long as they contain certain VA-required clauses, samples of which may be found at: http://www.homeloans.va.gov/lenderssampdocs.htm. 1 of chapter 9

Louisville Kentucky VA Mortgage

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This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. 

 

Louisville Kentucky VA home mortgage loans offer many benefits to qualified veterans.  Did you know that since 1944, when home loan guarantees were part of the original GI Bill, the Veterans Administration has guaranteed over 18 million home loans totaling more than $911 Billion?  Loans are available for purchasing or refinancing a home.  Here are a few of the Louisville Kentucky VA mortgages being offered to qualified veterans today.

Benefits of Louisville Kentucky VA Home Mortgage Loans

VA Home Purchase Loans – Zero Down Payment

This Louisville Kentucky VA Home Loan program allows veterans with qualifying income and credit to purchase a primary residence with zero money down towards the sale price of the home, providing the sale price does not exceed the appraised value of the home. Closing costs can be negotiated and paid by the seller. Other benefits to the Louisville Kentucky VA home purchase loan are: Loans are assumable; closing costs are limited by the Veterans Administration, making sure the costs are fair; the VA is behind you with additional assistance if you ever have a problem making your loan payments; veterans can prepay their home loan without a penalty; the VA benefit is not limited to first time veteran homebuyers, veterans may reuse his or her benefit again; and private mortgage insurance is not required on the loan.

Louisville Kentucky VA Refinance Loans Available

Louisville Kentucky Conventional loan to Louisville Kentucky VA refinanceIf you qualify for a Louisville Kentucky VA loan but do not currently have one, you can now refinance your current existing mortgage to a VA home mortgage loan. The fee for refinancing your conventional mortgage to a VA mortgage is currently 2.51% for veterans who are first-time users.  You can benefit by a possibly lower interest rate than what you currently have, and there is no monthly mortgage insurance or out of pocket closing costs on the new Louisville Kentucky VA loan. Many lenders offer Louisville Kentucky VA home mortgage loans and rates will vary, so shop the rate with several lenders to see if the current low rates being offered on these loans today can benefit you.

VA Streamline Refinance – This loan is for current veterans who have an existing VA loan and wish to lower their interest rate. These loans are sometimes referred to as “Interest Rate Reduction Refinancing”.  Being one of the most popular VA loans, veterans often choose this loan program because Louisville Kentucky  mortgage rates are low for those who want to streamline a Louisville Kentucky mortgage refinance.  It’s called a streamline refinance due to having no out of pocket costs, no required appraisal and no income or credit check is needed to qualify.  Reason being, veteran borrowers have already qualified when obtaining their current mortgage that they now wish to refinance, which make these loans close faster due to less documentation.

Louisville Kentucky VA Cash Out Refinance – Veterans in need of utilizing the equity in their homes to gain cash proceeds for any number of reasons can qualify for the VA cash out refinance loan.  This loan allows for an amount up to 90% of the home’s value.  No out of pocket closing costs and no monthly mortgage insurance is required.

VA Home Mortgage Loans: Help for Borrowers in Delinquency

VA home mortgage loans offer help and advice for borrowers that have become delinquent in their VA mortgages.  The Department of Veterans Affairs announced recently some general guidance for borrowers who may be encountering difficulties.

Advice from the US Department of Veterans Affairs

The DVA announced in February 2011 that “They are urging all veterans who may be encountering problems with making their mortgage payments to speak with their servicers as soon as possible to explore options to avoid foreclosure.  Contrary to popular belief, servicers really do not want to foreclose on the loans, due to foreclosure actions being highly costly.”

Possible Options from VA Loan Servicers

Depending on the veteran’s specific situation, servicers may offer any of the following options to avoid foreclosure for VA borrowers in default on their loans:

Repayment Plan – The borrower makes regular installment payments each month plus part of the missed installment payment(s).

Special Forbearance – When the servicer agrees not to initiate foreclosure actions allowing time for borrowers to repay the missed loan installments. For example: when a borrower is waiting for a tax refund that enables them to make up the missed payments, and commits to bringing the loan current upon receiving the tax refund.

Loan Modification – This provides the borrower a fresh start, adding the delinquency amount to the home mortgage loans balance and establishing a new payment schedule.

Additional time to arrange a private sale – The servicer agrees to delay foreclosure, to allow time for a sale on the home to close and paying the loan off with sale proceeds.

Short Sale – When the servicer agrees to allow a borrower to sell his/her home for a predetermined lesser amount than what is currently required to pay off the loan.

Deed-in-Lieu of ForeclosureBorrower(s) voluntarily agrees to deed the property to the servicer instead of going through a lengthy and costly foreclosure process.

Service Members Civil Relief Act (SCRA)

Pursuant to the SCRA veteran borrowers may be able to request relief.  The intention of SCRA is to ease the economic and legal burdens on military personnel during their active service.  To qualify for certain protections available under the act, veteran borrowers must request protection under the Act; and the loan must have originated prior to the current period of active military service.  SCRA may provide borrowers lower interest mortgage rates; prevent foreclosure or eviction up to nine months from the period of military service.

Assistance for Veterans with VA Guaranteed Home Loans

If a VA guaranteed home loan becomes delinquent, VA can help by providing supplemental servicing assistance to help resolve the default. Loan servicers have the primary responsibility of servicing the loan to cure the default. However, in cases where the loan servicer is unable to help the veteran borrower, Loan Guaranty has loan technicians in 8 Regional Loan Centers and 2 special servicing centers who will take an active role in interceding with the original loan servicer in exploring all options to avoid foreclosure.

The US Department of Veterans Affairs also offers assistance to those veterans with non-VA Guaranteed Home Loans, and for homeless veterans.   For veteran borrowers that VA is not able to help, the HOPE NOW Alliance may be of assistance; this is a joint alliance of servicers, counselors and investors who all have the same goal, to assist distressed borrowers in retaining their homes and avoid foreclosure.

For Borrowers who have delinquent Louisville Kentucky VA home mortgage loans and need assistance, the DVA can be good source for help.

There are considerable advantages to the VA loan programs available to qualified veterans today.  We’re mortgage.org and we help assist veterans every day in finding the right home mortgage loansthat work for them, and we can help you too.  Contact us today!

Kentucky VA Funding Fee Information for National Guard, Reserves, Regular Military, Retired, Active Duty in Kentucky for 2012

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Active-duty double amputee inspires troops in Europe (Photo credit: heraldpost)

Kentucky VA Funding Fee Information

In order for VA to guarantee the home loan, there is a closing cost assessed by the VA to originate the loan called a funding fee. This fee will vary, depending upon the type of Kentucky  VA loan, whether this is your first time to use your entitlement, if you are a disabled veteran, the down payment and if you served active duty or in the National Guard/Reserves.

Current Funding Fee Charts for Kentucky VA Guaranteed Loans:

First Time Use, Purchase & Construction Loans

Down Payment Amount Veteran/Active Duty Reservist/National Guard
Less than 5%* 2.15% 2.40%
5% to 9.99% 1.50% 1.75%
10% or more 1.25% 1.50%

*Includes “Cash-out” Refinancing Loans

Second Time Use, Purchase & Construction Loans

Down Payment Amount Veteran/Active Duty Reservist/National Guard
Less than 5%* 3.30% 3.30%
5% to 9.99% 1.50% 1.75%
10% or more 1.25% 1.50%

*Includes “Cash-out” Refinancing Loans

Streamline Refinance / Interest Rate Reduction Loan (IRRL)

VA Backed Usage Veteran/Active Duty Reservist/National Guard
First time use 0.50% 0.50%
Second time use 0.50% 0.50%
Assumptions 0.50% 0.50%
Service-connected Veterans 0.00% N/A

Read more: http://mylouisvillekentuckymortgage.com

A Funding Fee Changes Effective October 1, 2011
Vets and Reserves/National Guard will get a significant benefit October 1st. Check the chart below to see how much they’ll save in fees. We hope this helps you help our military folks become homeowners!
If you have any questions about this or a specific situation, please don’t hesitate to email or call.
VA Funding Fee Charts

Kentucky VA Guidelines for Cash Out Refinance Loans

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Kentucky VA Guidelines for Cash Out Refinance Loans

The VA guidelines still enable borrowers to refinance and get cash out with only 10% equity left in the home after the new loan. Maintaining the investment within a home may mean making some problematic decisions at certain times. When a home is in need of repair or renovation, it can be difficult to come up with the available for funds to make these improvements. Many people look for mortgage refinancingoptions that will provide additional cash to undertake these endeavors. VA guidelines for cash out refinance loans stipulate that the home owner must already have some equity within their home. The loan may not exceed 90% of the value of the property. This will allow the lending company to maintain some sort of collator on the loan while providing the home owner some value out of the equity in the property.

Kentucky

Cash refinancing is not as easy with conventional lenders, so consider the

Kentucky

VA loan for cash out transactions.

Cash Out with VA Refinancing up to 90% Loan to Value

These cash out limitations on

Kentucky

VA loans are meant to protect both the investor and the home owner. While it may appear to be restrictive, the 90% loan to value limitation will prevent the property owner from becoming underwater in their obligation toward the home. With many properties losing value and people facing foreclosure, this is a real threat. Although the cash will be used to increase the value of the building, it can still be a somewhat risky project in the current market. The additional funds will provide the needed finances for the materials to begin the refurbishing project while leaving 10% of equity within the building.



Because individuals need 10% home equity to quality for cash out refinance under the VA guidelines, the homeowner may need to make some special arrangements. The amount of funds available may be less than anticipated. If this is the case, finding ways to lower the cost of materials and labor can help get the most value out of the effort. If approached in an appropriate matter, the refinance option can also allow cash out for bill consolidation. This will allow the family to gain better financial ground while building up a nest egg for the future. VA rates for cash out loans should not be any higher, but your check with your loan officer for current pricing.

VA Refinancing Allows Cash Out for Bill Consolidation, Home Improvements and More

Using existing equity within a piece of property is a viable option to take on a home remodeling effort. The possibility of significantly increasing the value of a piece of property from the refurbishing project is a gamble worth considering. This can be a smart move toward the overall approach of making investments for the future well-being of family members. The ability to refinance an existing VA mortgage while remaining to retain 10% of equity within the building is a smart financial move to provide the funds to make needed repairs. After the project is complete, the family can enjoy their new surroundings with the secure knowledge of a solid mortgage.

2012 VA Loan Limits for Kentucky Counties

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2012 VA Loan Limits for Kentucky Counties

 

County VA Limit
Adair $417,000
Allen $417,000
Anderson $417,000
Ballard $417,000
Barren $417,000
Bath $417,000
Bell $417,000
Boone $417,000
Bourbon $417,000
Boyd $417,000
Boyle $417,000
Bracken $417,000
Breathitt $417,000
Breckinridge $417,000
Bullitt $417,000
Butler $417,000
Caldwell $417,000
Calloway $417,000
Campbell $417,000
Carlisle $417,000
Carroll $417,000
Carter $417,000
Casey $417,000
Christian $417,000
Clark $417,000
Clay $417,000
Clinton $417,000
Crittenden $417,000
Cumberland $417,000
Daviess $417,000
Edmonson $417,000
Elliott $417,000
Estill $417,000
Fayette $417,000
Fleming $417,000
Floyd $417,000
Franklin $417,000
Fulton $417,000
Gallatin $417,000
Garrard $417,000
Grant $417,000
Graves $417,000
Grayson $417,000
Green $417,000
Greenup $417,000
Hancock $417,000
Hardin $417,000
Harlan $417,000
Harrison $417,000
Hart $417,000
Henderson $417,000
Henry $417,000
Hickman $417,000
Hopkins $417,000
Jackson $417,000
Jefferson $417,000
Jessamine $417,000
Johnson $417,000
Kenton $417,000
Knott $417,000
Knox $417,000
LaRue $417,000
Laurel $417,000
Lawrence $417,000
Lee $417,000
Leslie $417,000
Letcher $417,000
Lewis $417,000
Lincoln $417,000
Livingston $417,000
Logan $417,000
Lyon $417,000
Madison $417,000
Magoffin $417,000
Marion $417,000
Marshall $417,000
Martin $417,000
Mason $417,000
McCracken $417,000
McCreary $417,000
McLean $417,000
Meade $417,000
Menifee $417,000
Mercer $417,000
Metcalfe $417,000
Monroe $417,000
Montgomery $417,000
Morgan $417,000
Muhlenberg $417,000
Nelson $417,000
Nicholas $417,000
Ohio $417,000
Oldham $417,000
Owen $417,000
Owsley $417,000
Pendleton $417,000
Perry $417,000
Pike $417,000
Powell $417,000
Pulaski $417,000
Robertson $417,000
Rockcastle $417,000
Rowan $417,000
Russell $417,000
Scott $417,000
Shelby $417,000
Simpson $417,000
Spencer $417,000
Taylor $417,000
Todd $417,000
Trigg $417,000
Trimble $417,000
Union $417,000
Warren $417,000
Washington $417,000
Wayne $417,000
Webster $417,000
Whitley $417,000
Wolfe $417,000
Woodford $417,000

Louisville Kentucky VA mortgage refinancing

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The Louisville, Kentucky VA mortgage refinancing programs offer attractive benefits of eligible VA veterans and active duty personnel. The rate and term program is designed to refinance an existing qualified mortgage (regardless of type) into a Louisville Kentucky VA loan product. So the existing loan could be a conventional, FHA, Sub-Prime, or other product. So long as the new loan amount and property qualify under current Louisville Kentucky VA program guidelines.

The second financing options involves Louisville Kentucky cash-out refinancing. As an eligible VA borrower, you can take advantage of the equity in your home for a multitude of reasons. Pay off a second mortgage, take cash-out for a motor home, pay for college tuition, etc. The guidelines for borrowing under the VA cash-out loan program vary, so give us a call to find out what options are available for you.

The third Louisville Kentucky refinance option is for those who have a Louisville Kentucky VA loan and are just looking to improve their interest rate. If this is you, you should know that the Louisville Kentucky VA offers an attractive Streamline Louisville Kentucky Refinance option (called the VA to VA or IRRRL Loan Product). One of our Louisville Kentucky VA loan specialist can take a quick look to see if today’s rates work for your streamline fixed rate loan or Louisville Kentucky ARM refinance.

The VA has established two basic critical guidelines for qualifying for a Louisville Kentucky VA streamline refinance loan:

  • Except when Louisville Kentucky refinancing an existing Louisville Kentucky VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate
  • And, when Louisville Kentucky refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.

The best part is, that in many instances, no appraisal or credit underwriting package is even required by VA. In fact, your certificate of eligibility is also not required. We’ll simply use the VA’s e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.

IRRRL Loans

An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the loan origination specialist to pay the costs. One more thing to remember–the interest rate on the new loan must be lower than the rate on the old loan, unless you refinance an ARM to a fixed rate mortgage.

An Louisville Kentucky  IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance. It must be a Louisville Kentucky VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a Louisville Kentucky VA loan when you bought your house, or by substituting your eligibility for that of the seller if you assumed the loan. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.

The occupancy requirement for an IRRRL is different from other VA loans. When you originally got your Louisville Kentucky VA loan, you certified that you occupied or intended to occupy the home. For an IRRRL, you only need to certify that you previously occupied the home.

VA To VA Refinance

The loan may not exceed the sum of the outstanding balance on the existing Louisville Kentucky VA loan, plus allowable fees and closing costs, including the funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan.

Adding all of these items into your loan may result in a situation in which you owe more than the fair market value of the house and will reduce the benefit of refinancing since your payment will not be lowered as much as it could be. Also, you could have difficulty selling the house for enough to pay off your loan balance. Your loan origination Specialist will gladly let you know when they believe it makes no sense for this loan program.

Finally, no loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.

While all of this sounds rather complicated, it’s important to know that we’re here to take care of all of the hassle for you and explain the process to you in plain English. Just give us a call today and we’ll be happy to assist!

 

2012 Louisville, Ky BAH Rates Basic Allowance for Housing in Kentucky

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2012 Louisville, Ky BAH Rates Basic Allowance for Housing: MHA: KY109 – LOUISVILLE Make your financial plans carefully when factoring in BAH as a contributing source of income for your house payment. Remember, BAH is calculated on local rents. Mortgage amounts are not used to compute Basic Allowance for Housing. You may be able to offset some or all of your monthly mortgage payments using BAH, but it’s not designed to do so.

Grade
With Dependents
Without Dependents
E1
$1020.00
$786.00
E2
$1020.00
$786.00
E3
$1020.00
$786.00
E4
$1020.00
$786.00
E5
$1110.00
$882.00
E6
$1287.00
$966.00
E7
$1416.00
$1062.00
E8
$1560.00
$1170.00
E9
$1722.00
$1290.00
W1
$1290.00
$987.00
W2
$1476.00
$1143.00
W3
$1650.00
$1293.00
W4
$1749.00
$1329.00
W5
$1866.00
$1449.00
O1E
$1446.00
$1110.00
O2E
$1626.00
$1218.00
O3E
$1767.00
$1326.00
O1
$1128.00
$930.00
O2
$1281.00
$1080.00
O3
$1644.00
$1296.00
O4
$1908.00
$1431.00
O5
$2097.00
$1572.00
O6
$2118.00
$1650.00
O7
$2139.00
$1683.00

Call 502-905-3708 for your free mortgage VA application-Same Day loan Approval or Click on picture below for free mortgage prequailication sameday

Frequently Asked Questions on Kentucky VA loans

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Frequently Asked Questions on Kentucky VA loans

 
We’ve helped thousands of veterans and military families capitalize on the home loan benefits earned by their service. Along the way, we’ve also answered more than a few questions about the Kentucky  VA Loan — and we’re always happy to help. For your convenience, we’ve compiled the answers to some of the more common questions.

If you have more questions, don’t hesitate to contact us. Give us a call at 502-905-3708 or complete our online questionnaire to find out more. kentuckyloan@gmail.com

 

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VA Loan Eligibility
What is the VA Loan entitlement?
Veterans, service members and others who qualify have what is called an entitlement, which is basically a promise from the Department of Veterans Affairs to provide a financial guaranty on a mortgage issued by one of its approved lenders. The VA doesn’t issue home loans. Instead, it guarantees a portion of each. That guaranty is important to lenders and helps borrowers who might otherwise struggle to secure financing. Having a VA entitlement means you have a financial guaranty from the Department of Veterans Affairs.
Am I eligible as a spouse of a deceased veteran?
VA loans are available to some non-military personnel, including both unmarried and remarried spouses. An unmarried spouse whose veteran died on active duty or because of a disability connected to his or her service is eligible for VA home loan benefits.

Surviving spouses who obtained a VA loan with the veteran before his or her death can also obtain a VA Interest Rate Reduction Refinance Loan, better known as a VA Streamline refinance. Surviving spouses who remarried upon or after turning age 57 and on or after December 16, 2003, may be eligible for a VA home loan. Surviving spouses who remarried before that date are no longer eligible to participate.

The spouse of an active duty member who is listed as missing in action (MIA) or a prisoner of war (POW) for at least 90 days is eligible for one-time use of the VA home loan benefit.

How can I get my Certificate of Eligibility?
The Certificate of Eligibility is a formal VA document that certifies what entitlement, if any, a military member has for a VA home loan. Obtaining the Certificate of Eligibility is a crucial step in the process. This is the only verifiable way to determine a veteran’s eligibility and entitlement. Without a Certificate of Eligibility, prospective borrowers cannot complete the lending process. Veterans can obtain their Certificate of Eligibility directly from the VA, which typically takes a few weeks. Veterans United Home Loans uses an automated system to get your Certificate of Eligibility in minutes.
Who is eligible for the VA Loan?
There are basic eligibility requirements for veterans and service members, along with members of the Reserves, the National Guard and surviving spouses.

You May Be Eligible for a VA Loan If Any One of the Following are True:
• You served 181 days during peacetime (Active Duty)
• You served 90 days during war time (Active Duty)
• You served 6 years in the Reserves or National Guard
• You are the spouse of a service member who died in the line of duty or because of a service-connected disability.

The only way to verify a veteran’s eligibility for a VA loan is to obtain a Certificate of Eligibility. Veterans can obtain their Certificate of Eligibility directly from the VA, which typically takes a few weeks. Veterans United Home Loans uses an automated system to get your Certificate of Eligibility in minutes.

It’s important to remember that not everyone eligible for a VA loan ultimately secures one. Prospective borrowers still have to satisfy credit and underwriting standards set by both the VA and the lender.

What is the difference between eligibility and prequalification?
Not everyone eligible for a VA loan ultimately secures one. Prospective borrowers still have to satisfy credit and underwriting standards set by both the VA and the lender. Getting prequalified for a loan is a basic step that borrowers can complete online or over the phone. This step gives veterans a sense of their purchasing power and lays the foundation for the credit and underwriting process. But it is only a first step. Veterans with sufficient credit scores will move toward loan preapproval, which is a more formal stage desired by home sellers and real estate agents.
How do basic and bonus entitlements work?
Basic Allowance for Housing, formerly known as Basic Allowance for Quarters, is a key asset that can help service members qualify for and afford a VA mortgage. This monthly housing allowance can be counted as income provided it’s stable and likely to continue. The same is true for other military allowances and forms of bonus pay. Lenders have to make sure the payments are reliable and consistent. Qualified borrowers can use BAH to cover some or all of their monthly mortgage payment.
How do I restore my entitlement once I pay off my previous VA Loan?
Veterans who want to fully restore their entitlement after paying off their VA loan can seek a full restoration of their entitlement. The most common example is when a borrower sells their home and uses the sale proceeds to pay off their original mortgage. At that point, the veteran’s previously used entitlement is no longer tied up in the original home. Veterans then have to fill out a VA form and submit documentation to the agency.
What is 2nd Tier Entitlement?
Qualified borrowers have two layers of entitlement. Together, the first tier and the second tier combine to create the VA guaranty. The second, additional layer of entitlement can help borrowers who have experienced foreclosures or other major problems with VA loans. Thanks to second-tier entitlement, even a veteran who defaults on a VA loan can still purchase again. It’s important to note that on a second-tier entitlement purchase, there’s a minimum loan amount of $144,000.
Can I use the VA Loan for a second home or rental properties?
No. The VA Loan is designed only for primary residences that are occupied by the owners of the properties.
VA Loan Qualification
Who sets the VA Loan guidelines, the VA or my lender?
The VA sets broad requirements and guidelines for military borrowers. There are no income requirements or credit requirements to participate in the VA Loan Guaranty program. The VA simply requires that borrowers represent a satisfactory credit risk. But VA lenders ultimately issue the loans, and they have their own unique requirements, especially when it comes to credit scores. So prospective borrowers have to satisfy both the VA and the agency’s approved lenders in order to secure home financing.
If I have bad credit, can I still get a VA Loan?
In today’s economic climate, VA lenders are looking for solid credit scores. Lenders will determine at the outset whether your credit score meets its benchmark. But veterans whose score falls short shouldn’t lose hope. We have an entire department dedicated to helping people raise their credit scores and prequalify for the loan they deserve. Our Department of Secondary Approval works one-on-one with veterans, providing simple and concrete steps to boosting their financial health. Best of all, it’s absolutely free.
Can someone else sign on the loan with me?
Veterans and service members can have someone sign on the loan with them, although there are certain restrictions. For a VA loan, that other person, known as a co-borrower, must be either a spouse or another veteran. Parents, friends and significant others who don’t fall under one of those two headings cannot be a co-borrower on a VA loan. Married veterans can obtain a VA loan on their own, but if they live in a community property state, their spouse’s active debt and income will be factored into the loan application.
What income can I use to qualify for a VA Loan?
VA-approved lenders have to make sure prospective borrowers have enough steady income to meet their monthly expenses, including a new mortgage payment. Lenders are generally looking for at least two years of stable employment and income from the same employer and job type. Reliable, documented income can be included from a host of sources, including:
• Base pay & allowances
• Non-military employment
• Retirement income
• Self-Employment
• Commissions
• Rental income
• A spouse’s income
• Alimony/child care

To count income from overtime work, part-time jobs, second jobs and bonuses, veterans need to show that same two-year period of stability. Veterans who are self-employed or who make a living in the building trades, doing seasonal work or working mostly on commission have some additional paperwork hurdles to face. Tax returns for the previous two years will be essential in verifying income.

How long do I have to wait after bankruptcy to get a VA Loan?
A bankruptcy or foreclosure doesn’t automatically disqualify you from getting a VA loan. But a lot of it depends on when the event occurred. In most cases, veterans will not be able to secure VA financing for two years after a bankruptcy or foreclosure. The VA has some exceptions that allow military members to participate in the program before that two-year mark. But, remember that VA-approved lenders, and not the VA, ultimately issue the loan. Lenders have more stringent standards that rise above the VA’s requirements. And that means there’s almost no way for a borrower to secure financing for at least two years.
Do I need my tax returns to apply for a VA Loan?
Lenders will file paperwork with the IRS to obtain tax records for prospective borrowers. This information plays a crucial role in determining a veteran’s financial health and ability to handle the fiscal responsibilities associated with homeownership. Veterans can help speed through the process by having that information on hand, but it isn’t necessary.
Rates and Loan Costs
What fees should I expect to pay for my VA Loan?
The VA has cap on the fees that veterans can pay to obtain a VA loan. Generally, VA lenders are allowed to charge a 1 percent origination fee, plus another percent to cover administrative and other costs. On a VA loan, sellers can pay up to 6 percent of the loan amount in closing costs and concessions. The one charge most VA borrowers can’t escape is the VA Funding Fee, a mandatory cost that helps keep the home loan program running. Borrowers with service-connected disabilities can receive an exemption from the VA Funding Fee.
What is the VA Funding Fee, and how do I calculate it?
The VA Funding Fee is a mandatory fee applied to both purchase and refinance loans. It helps keep the home loan program running. The fee is a percentage of the loan amount, and it changes depending on several factors, including whether it’s a purchase or a refinance, how many VA loans you’ve had in the past and the type of military service. You can see the full breakdown and even calculate your exact fee by visiting VAFundingFee.com.
How are rates for VA Loans determined?
Mortgage rates are shaped by a host of economic factors. Lenders set their rates based on what’s happening in the bond market and in the greater financial landscape. Interest rates change constantly, often multiple times per day, which is why it’s important to talk with your loan officer about when to lock in your rate. As with other lending products, military members with excellent credit can secure better interest rates and loan terms than those with less sterling credit. But, in general, VA loans have consistently lower rates than conventional loans.
Does the VA Loan offer adjustable rates?
Veterans can explore adjustable rate mortgage options with a VA loan. Today, the most common ARM for VA borrowers is either a 3/1 or 5/1 Hybrid, where the borrower gets a fixed interest rate for the first three or five years of the loan term. A low interest rate during those first few years can make a huge difference for veterans who might need cash to pay off other debts or obligations. ARMs are also a potential option for service members who only plan to stay in their homes for three to five years. Not every VA-approved lender offers ARMs. Many states require lenders to have additional compliance disclosures and counseling initiatives in order to satisfy government requirements.
Does my credit score affect my VA Loan rate?
Your credit score plays an important role in determining your mortgage rate. Prospective borrowers with solid credit can expect lower rates and better terms than those with fair to middling scores. The VA requires borrowers to be a satisfactory credit risk in order to qualify for a government-backed loan. VA lenders have their own additional requirements and, in the current lending climate, will pay close attention to an applicant’s score. It’s more important than ever to get a handle on your credit profile, get caught up on any outstanding debts and responsibly use credit. Put yourself in the best position possible when it comes time to start the home-buying process.
VA Loan Guidelines
Can I borrow more than the value of my home with a VA loan?
On a VA purchase loan, veterans can borrow up to the appraised value of the home, plus some costs and fees associated with the loan. Homebuyers interested in making their home more energy efficient can add up to $6,000 in improvements through an Energy Efficient Mortgage. On a VA Cash-Out Refinance, we can help homeowners refinance up to 100 percent of their home’s value. Homeowners can use that cash to pay bills, renovate their home and other key uses.
Can I have more than one VA loan at a time?
Your VA entitlement isn’t a one-time benefit. Borrowers who qualify can utilize their VA home loan benefits over and over. Most veterans will only ever have one VA-backed mortgage at a time. But there are unique situations where veterans can have more than one VA loan at one time. Most of those circumstances are related to relocation needs, including deployments and jobs. But it’s important to remember that VA loans are for primary residences. You can’t use your home loan benefits to purchase investment properties or businesses.
How complicated is VA financing?
As the nation’s leading dedicated VA lender, we’ve worked hard to make the VA loan process as simple and streamlined as possible. VA loans have less stringent requirements than other lending programs, and that’s one of the key benefits for veterans and active duty personnel. Prospective borrowers have to meet basic financial and credit-related benchmarks to satisfy both the VA and the lender. Veterans receive a financial guaranty from the VA, and that guaranty gives lenders the confidence to issue no-down payment loans with great rates and terms.
When purchasing a home, does the VA Loan allow for cash back options?
The VA has two major refinance programs. One of them, the Cash-Out Refinance, helps homeowners extract cash from their home’s equity while obtaining a lower interest rate. We can help veterans refinance up to 100 percent of their home’s appraised value. Most lenders are currently capped at 90 percent. The process for obtaining a Cash-Out Refinance is similar to the process borrowers go through for a VA purchase loan. Veterans with a conventional or FHA mortgage can refinance into a VA loan using the Cash-Out program.
What is the maximum VA Home Loan?
Contrary to what you might have read or heard, there isn’t a maximum loan amount on a VA loan. But there is a maximum amount the VA will guaranty without the borrower having some manner of down payment. That’s what industry people are referring to when they talk about VA loan limits. In today’s market, qualified borrowers can purchase a home worth up to $417,000 with no money down across most of the country. In some high-cost areas, that limit can rise to more than $725,000.
Can I borrow extra money to make home improvements?
VA borrowers can add up to $6,000 to their loan to make energy efficiency improvements to their home. Known as an energy efficiency mortgage, or EEM, these unique loan products allow homeowners to make select upgrades and repairs to the property in order to maximize energy efficiencies. Spending money at the outset on energy improvements can ultimately lower heating, cooling and other related energy costs for years to come. That monthly savings can be funneled into additional payments to the mortgage principal or dozens of other household necessities. Veterans interested in an EEM should consult with their lender and be sure to arrange for a home energy audit from a professional firm.
VA Loan Basics
Who is Veterans United and VA Mortgage Center.com?
Veterans United is a financial services firm and parent company of VA Mortgage Center.com, the nation’s leading dedicated VA lender. In the last year alone, we’ve made available more than $1.6 billion in VA financing. Headquartered in Columbia, Missouri, we employ more than 700 people in nearly two dozen states and have maintained an A+ rating with the Better Business Bureau for five straight years. Our mission is to help veterans and active duty personnel take advantage of the benefits earned by their service. We are here to proudly serve those who have served.
How is Veterans United involved in the community?
We are committed to enhancing lives and strengthening communities across the country. Veterans United and its employees donated more than $550,000 to military charities and community groups in 2010 alone. We’re proud to support military organizations such as Fisher Housing Foundation, Hire Heroes USA, Homes for Our Troops, Fisher House Foundation, Paralyzed Veterans of America and the National Coalition for Homeless Veterans. Our employees contribute thousands of hours to volunteer projects, from Boys & Girls Club to building a house each year for a veteran in need. To further our philanthropic goals, we recently launched the Veterans United Foundation. Learn more about our new foundation at EnhanceLives.com.
Why choose the VA Loan program?
The number one reason veterans and active duty borrowers chose the VA loan program is simple: The ability to purchase a home with no money down. That incredible benefit opens the doors of homeownership to thousands of people who might otherwise struggle to secure financing. VA loans also feature no private mortgage insurance, flexible credit and income requirements and consistently lower rates than other loan products. Your VA loan entitlement is a hard-earned benefit. This program provides qualified borrowers with unmatched buying power and flexibility. For the vast majority of veterans, service members and military families, the VA loan program represents the simplest and most powerful path to homeownership.
How do I get prequalified and what happens afterward?
The best way to start the application process is to speak to one of our VA loan specialists today. Our team can prequalify borrowers over the phone in a matter of minutes. We will gather some of your basic financial information and take a look at your credit score. You’ll then receive our loan application packet and get on the path to preapproval, which is a more involved process that requires a more detailed look at your finances and your ability to handle a mortgage and its associated costs.
What if I don’t have copies of my discharge paperwork?
VA lenders have to obtain all kinds of official paperwork in order to process a loan, from the borrower’s Certificate of Eligibility to tax returns and other crucial documents. It’s easy for paperwork to get lost over time, so borrowers shouldn’t worry if they can’t locate their discharge documents or other important pieces of paper. We can obtain fresh copies of your most important documents with no hassle. Borrowers can also contact the VA and other entities to secure the paperwork themselves. The lack of this paperwork won’t necessarily derail the loan process, but it’s best to work with the lender as quickly as possible to take care of document needs.
Can I pay off a VA Loan early?
VA loans do not have any kind of prepayment policies. That means borrowers can pay off their loans early without penalty. That’s a significant benefit for homeowners who want to cut down on their interest costs over time. Paying an additional $50 or $100 a month toward your premium can shave off years and tens of thousands of dollars from your 30-year fixed-rate mortgage.
I see that VA Loans are assumable, what does that mean?
With most loan products, when a home is sold the existing mortgage must be paid off. But there are instances when a homebuyer can take over the loan balance, interest rate and terms of the existing mortgage. This is referred to as “assuming” the loan. VA loans are one of the only fixed-rate mortgages that are assumable. This key difference gives homeowners increased flexibility when the time comes to sell their home.
When is the VA Loan not my best option?
For the vast majority of veterans, active duty service members and military families, the VA loan represents the most flexible and powerful loan program on the market. Qualified borrowers can purchase a home worth up to $417,000 and more without a down payment or out-of-pocket spending. But there are some cases when a VA loan may not represent the best fit. Veterans with significant cash reserves who can cover a 20-percent down payment may want to consider conventional financing. But that isn’t the typical financial situation for most military borrowers. For everyone else, VA loans often make the most financial sense and allow veterans to get the biggest bang for their buck.
VA Refinancing
Can the VA Loan help me lower my monthly bills?
The VA has two major refinance programs. One, the Interest Rate Reduction Refinance Loan, better known as a VA Streamline, helps homeowners get into a lower-rate mortgage to reduce their monthly payment. VA Streamlines come with minimal hassle and paperwork. The VA does not require appraisals or credit checks on Streamlines, but some lenders have recently made them mandatory. We are still able to process some Streamlines without an appraisal, which is a tremendous benefit given the decline in home values across the country. Homeowners have to pay closing costs on a VA Streamline. But these can be rolled into the overall loan amount, along with up to $6,000 in energy efficiency improvements.
Can I refinance my home if I don’t currently have a VA Loan?
Veterans and active duty homeowners who qualify can refinance into a VA loan using the program’s cash-out refinance program. The process for obtaining a Cash-Out Refinance is similar to the process borrowers go through for a VA purchase loan, from the income verification and debt-to-income ratio to a home appraisal. Qualified homeowners with conventional or FHA mortgages do not have to take out cash when they refinance into a VA loan. But they are ineligible for the simpler VA Streamline program.
House Hunting
What is the Veterans United Realty referral program?
VA loans are specialized tools that require specialized knowledge. That’s why Veterans United has developed a unique partnership with Veterans United Realty, a network of more than 1,400 real estate agents who specialize in helping veterans and active duty personnel purchase homes. These agents understand the requirements and advantages of VA loans and can make a huge difference on behalf of their clients. homebuyers who close on a home using a Veterans United Realty agent receive up to $500 after closing.
What types of homes can I buy with a VA Loan?
The vast majority of military buyers use their VA loan to purchase or refinance an existing single-family home. But veterans interested in purchasing a condo or building a home from the ground up can also utilize a VA loan. You can use a VA loan:

• To purchase a residence that’s owned and occupied by the veteran.
• To refinance an existing VA-guaranteed or direct loan in order to lower the current interest rate.
• To refinance in order to take out cash.
• To repair, alter or improve a residence owned by a veteran.
• To simultaneously purchase and improve a home
• To make energy-efficiency improvements in conjunction with a VA purchase or refinance loan.
• To purchase up to four one-family residential units in a condo development approved by the VA. One of those four units must be used as the borrower’s primary residence.
• To purchase a farm residence to be owned and occupied by the veteran. The property cannot be a working farm or an income-producing property.

You cannot use a VA loan to purchase vacation homes or income properties

Louisville Kentucky VA Home loans

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VA Loans Louisville Kentucky

VA Loans in Louisville Kentucky | Ky Va home loans info

Kentucky VA Loans

What are VA Home Loans?

VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today’s VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of a homes current equity.

What are the eligibility requirements for a VA Loan in Kentucky?

Veterans Affairs loan guidelines use two methods of income qualification in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran’s total debt should not exceed 41% of the veteran’s total income. Most lenders will require at least a 620 credit score for a VA Loan approval.

How much can I borrow?

The maximum VA Mortgage amount is determined by:

Maximum VA Loan in Kentucky: The largest loan allowed for VA mortgages with zero down is $417,000 in KY. Please refer to the Kentucky VA Loan Limit chart at the bottom of this page to see your area’s limit.
Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value.

What will the down payment and closing costs be?
Kentucky VA loans have zero money down up to $417,000 in most counties.

What property types are allowed for VA Loans in Kentucky?
VA Loans may be used to purchase or refinance single family residences and VA approved condo projects if the property is the veteran’s primary residence.

Can I do a VA refinance in Kentucky?
Three kinds of VA Refinance programs are available for veterans in Kentucky.

Rate/Term VA Refinance
The Rate/Term VA Refinance can be used to refinance a conventional, FHA or subprime mortgage into a stable, fixed rate VA Loan.
VA Cash-Out Refinance

A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a homes current value and take cash out for any reason.
Streamline Refinance

The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable rate mortgage into a fixed rate. A VA Streamline Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

How much can I refinance in Kentucky?
The maximum amount for an KY VA loan is determined by:

Maximum VA Loan in Kentucky: The largest loan allowed for a VA Mortgage varies from county to county. The highest maximum VA Mortgage right now is $1,094,625. The lowest maximum VA Mortgage amount available in any county is $417,000. To see what the limit is in the county in which you’re interested, visit the following page http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf. This site lists U.S. territories as well as states.

Maximum Finance: In Kentucky, The maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 90% of the appraised value for a VA cash out refinance.

What factors determine if I am eligible for a VA Refinance Loan?
VA refinance loans use two methods for income qualification purposes in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran’s total debt should not exceed 41% of the veteran’s total income. Most lenders will require at least a 620 credit score for a VA Loan approval.

Why choose a VA Home Loan?

Kentucky VA Mortgages require no down payment.
There are no prepayment penalties for VA Home Loans.
An Kentucky VA Loan is fully assumable, provided the person assuming is qualified.
VA Mortgage Loans have no PMI premiums.
A VA Mortgage Loan is eligible for non-credit qualifying, Streamline Refinance or “IRRRL”.
A VA Home Mortgage is available all areas of the country, provided a market exists for the property and the home meets VA’s property standards.
A VA Home Loan may be used to purchase or refinance a new or existing home.
Kentucky VA Loans are offered at terms of 15 or 30 years.

VA Refinance Questions & Answers
1. What are the guidelines for a VA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 90% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be 100% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.
2. Why should I consider refinancing into a VA-insured mortgage?
VA refinance mortgages do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.
3. What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new VA mortgage, then you should ask your current lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.
4. Does it matter that the value of my home is now less than what I still owe?
Not to VA, but the current mortgage lender considering the refinance would have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.
5. I have already obtained one VA loan. Can I get another one?
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.
6. Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.
7. Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, please contact us.

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Louisville Ky VA Loans

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Louisville Ky VA Loans
Why a VA Loan?

The more you know about our home loan program, the more you will realize how little “red tape” there really is in getting a VA loan. These loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran’s certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing, as more and more lenders are now, a buyer’s loan can be processed and closed by the lender without waiting for VA’s approval of the credit application.

Additionally, if the lender is approved under VA’s Lender Appraisal Processing Program (LAPP), the lender may review the appraisal completed by a VA-assigned appraiser and close the loan on the basis of that review. The LAPP process can further speed the time to loan closing.

What is a VA Guarenteed Loan?

These loans are made by a lender, such as a mortgage company, savings and loan or bank. VA’s guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms. The amount of guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guaranty, a veteran who hasn’t previously used the benefit may be able to obtain a VA loan up to $240,000 depending on the borrower’s income level and the appraised value of the property. The local VA office can provide more details on guaranty and entitlement amounts.

Who is Eligible?

Veterans who served on active duty and were discharged under conditions other than dishonorable, during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) veterans must have at least 90 days’ service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days’ active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16, 1981, must in most cases have served at least 2 years. VA regional office personnel may assist with additional eligibility questions

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VA Loan Applications

The application process for VA financing is no different from any other type of loan. In fact, the VA application form is the same as that used for HUD/FHA and conventional loans. The mortgage lender verifies the applicant’s income and assets, and obtains a credit report to see that other obligations are being paid on time. If all is well and the appraised value of the property is enough to cover the loan needed, the lender, in most instances, can then close the loan under VA’s automatic procedure. Only about 10 percent of VA loan applications have to be submitted to a VA office for approval before closing.

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VA Loan Uses

You may use VA-guaranteed financing:

  1. To buy a home.
  2. To buy a townhouse or condominium unit in a project that has been approved by VA.
  3. To build a home.
  4. To repair, alter, or improve a home.
  5. To simultaneously purchase and improve a home.
  6. To improve a home through installment of a solar heating and/or cooling system or other energy efficient improvements.
  7. To refinance an existing home loan.
  8. To refinance an existing VA loan to reduce the interest rate and add energy efficiency improvements.
  9. To buy a manufactured (mobile) home and/or lot.
  10. To buy and improve a lot on which to place a manufactured home which you already own and occupy.
  11. To refinance a manufactured home loan in order to acquire a lot.
VA Loan Costs

A basic funding fee of 2.0 percent must be paid to VA by all but certain exempt veterans. A down payment of 5 percent or more will reduce the fee to 1.5 percent and a 10 percent down payment will reduce it to 1.25 percent.

A funding fee of 2.75 percent must be paid by all eligible Reserve/National Guard individuals. A down payment of 5 percent or more will reduce the fee to 2.25 percent and a 10 percent down payment will reduce it to 2.0 percent.

The funding fee for loans to refinance an existing VA home loan with a new VA home loan to lower the existing interest rate is 0.5 percent.

Veterans who are using entitlement for a second or subsequent time who do not make a down payment of at least 5 percent are charged a funding fee of 3 percent.

Louisville FHA and VA Home Loans

Louisville FHA and Louisville VA home loans. Louisville FHA home loans can help Louisville borrowers obtain a Louisville mortgage more easily. Louisville VA home loans can help Louisville Veterans secure Louisville home loans to purchase their dream home. Lending for help with your Louisville FHA and VA home loans.

Louisville VA Streamline Refinance

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Louisville VA Streamline Refinance

Louisville VA Guidelines- IRRRL

Interest Rate Reduction Refinancing Loans

An IRRRL is a Louisville VA-guaranteed loan made to refinance an existing Louisville VA-guaranteed loan, generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing Louisville VA loan.

The principal and interest payment on an IRRRL must be less than the principal and interest payment on the loan being refinanced unless one of the following exceptions applies:

o

The IRRRL is refinancing an ARM
o

Term of the IRRRRL is shorter than the term of the loan being refinanced unless, OR
o

Energy efficiency improvements are included in the IRRRL. Improvements must be completed within 90 days immediately preceding the date of the loan closing.
A significant increase in the veteran’s monthly payment may occur with any of the above exceptions, especially if combined with one of more of the following:

o

Financing of closing costs
o

Financing of up to two discount points
o

Financing of the funding fee and/or
o

Higher interest rate when an ARM is being refinanced.
It is the underwriter’s discretion to determine whether or not the increase in monthly PITI is acceptable.

General Guidelines for IRRRL

:
• Minimum credit score of 640

• Maximum loan amount is the existing VA loan balance plus the following: o Allowable fees and charges, plus

o

The cost of energy efficiency improvements, and
o

The VA funding fee = .50.
• The maximum loan term is the original term of the VA loan being refinanced plus ten years, but not to exceed 30 years.

• The borrower cannot pay off liens other than the existing VA loan from IRRRL proceeds. Any second lien-holder would have to agree to subordinate.

• All IRRRLs must contain either a conforming appraisal or a 2055 exterior (at minimum). The loan amount + funding fee must be supported by the value.

• Not eligible in the state of Illinois.

• IRRRLs must be current and have no 30-day or greater mortgage lates in the most recent 12 months. The following documentation is required to be in the loan file:

o Evidence the existing loan is current
o

If the loan is seasoned 12 months or more, evidence that the existing loan has not had any 30-day or greater mortgage lates in the past 12 months
o

If the loan is seasoned less than 12 months, evidence:  The existing loan has no 30-day or greater mortgage lates since the inception of the loan and

No 30-day or greater mortgage lates for any other first mortgage loans associated with the property and borrower(s) in the most recent 12 months.

•While the borrower may pay any reasonable amount of discount points in cash, only up to two discount points can be included in the loan amount.

•An IRRRL cannot be used to take equity out of the property or pay off debts, other than the VA loan being refinanced. Loan proceeds may only be applied to paying off the existing VA loan and to the costs of obtaining or closing the IRRRL. Therefore, the general rule is that the borrower cannot receive cash proceeds from the loan.

502-905-3708 or email us at kentuckyloan@gmail.com

Kentucky Louisville Mortgage VA Rates

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Kentucky VA Funding Fee Chart

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Kentucky VA Funding Fee Explained

The Kentucky VA Funding Fee is paid directly to the Department of Veteran’s Affairs and is the reason they can guarantee this no-money-down loan program. This fee is paid so that VA eligibile borrowers can enjoy loan benefits such as $0 down financing and no PMI payments.

Kentucky VA Funding Fee Chart

The Kentucky Funding Fee is calculated by looking at 5 different factors: Loan amount, loan type (Purchase or Refinance), type of service, down payment (if any) and prior Kentucky VA loan use. Take a look at the charts below to see how the va funding fee varies based on these factors.

  Purchase – First Time Use
Down Payment Active Duty/Retired Guard/Reserve
$0 Down 2.15% 2.40%
5-10% Down 1.50% 1.75%
10% or More 1.25% 1.50%
  Purchase – Additional Use
Down Payment Active Duty/Retired Guard/Reserve
$0 Down 3.30% 3.30%
5-10% Down 1.50% 1.75%
10% or More 1.25% 1.50%
  Cashout Refinance
VA Usage Active Duty/Retired Guard/Reserve
1st Time Use 2.15% 2.40%
Additional Use 3.30% 3.30%
  IRRL (Interest Rate Reduction Loan)
VA Usage Active Duty/Retired Guard/Reserve
1st Time Use 0.5% 0.5%
Additional Use 0.5% 0.5%

How the Funding Fee is Paid

The Kentucky VAfunding fee doesn’t need to be ‘paid’ separately and is typically rolled into the loan. This is a big benefit to borrowers looking to take advantage of the $0 down benefit of the VA loan. Not only do borrowers not need to put anything down, but they can also finance the VA funding fee as well.

Kentucky VA Funding Fee Exemption

Borrowers are exempt from paying the funding fee if they receive any disability payments from the Kentucky VA or are considered at least 10% disabled.

Kentucky VA Mortgage Calculator

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Kentucky VA Home Loans Approval Criteria

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What Criteria Does the VA Use to Approve a Kentucky  VA Mortgage Loans?

What does the VA use to approve Kentucky VA mortgage loans?

If you’re a first-time buyer, VA loans may strike you as confusing and may even be a little daunting. This is because there are a lot of misconceptions about VA mortgage loans, not least of which is the concern on who issues the loan.

It is important to keep in mind that VA guarantees the loan but it does not insure it. Once you are aware of it, you will be able to understand the role that VA plays in the lending process.

Who approves my loan?

According to the VA, many, if not all, VA home loans are approved by the lender using the lending guidelines and criteria which are drafted by the VA. While still in the process of servicing a VA loan, there are several people who usually discuss what the VA will likely approve or decline – in fact, numerous articles with topics revolving VA loans even state it in terms of a particular agency approving an individual loan.

In many situations, the discussions really refers to the rules that are under government regulations. When the VA is required to take care of an individual case, more often than not it means that the situation isn’t properly addressed by existing rules or that the lender still needs additional details.

What is required for my loan to be approved?

Simply put, there are two basic methods set in the VA mortgage guidelines that will determine if an applicant is qualified for a loan. The first thing that will be considered is your income. This is what is referred to as the residual income method.

You will have to ask yourself: can you actually afford to pay the daily costs of the VA home loan? Are your debts too big that you won’t be able to handle an additional monthly mortgage anymore?

You will also need to take into consideration things like your car payment and credit card payments. The second qualification to consider is a more definite examination of the said issues, based on a formula commonly referred to as debt-to-income ratio.

VA Income Requirement Guidelines are similar to other programs.  This is not an inclusive list of items needed.  Documentation may be more of less perLender requirements or through the use of automated underwriting engines such as DO/DU(FNMA) or LP(FHLMC)

Employment verification general requirement

  • Verify a minimum of 2 years employment.
  • If not employed by the present employer less than 2 years:
    Verify prior employment plus present employment covering a total of 2 years;
  • Gaps of employment great than 30 days may need explanation
  • Current paystubs for 1 months time period.  Paystub must contain YTD information.
  • W-2 forms for the past 2 years

or

  • Provide an explanation of why 2 years employment could not be verified.

Borrowers that are self employed will need to provide the following:

VA’s debt-to-income ratio is a ratio of total monthly debt payments (housing expense, installment debts, etc.) to gross monthly income is generally 41%:

Though Debt Ratios may exceed the 41%, if not approved through and automated underwriting engine such as DO/DU(FNMA) or LP(FHLMC) then and underwriter will be looking to make sure that there are some compensating factors. 

In addition, underwriter need to review and verify that there is sufficient residualincome for family support available for the Veteran after making the loan.

COMPENSATING FACTORS 

 

Compensating factors may affect the loan decision. These factors are especially important when reviewing loans which are marginal with respect to residual income or debt-to-income ratio.They cannot be used to compensate for unsatisfactory credit.

Valid compensating factors should logically be able to compensate (to some extent) for the identified weakness in the loan. For example, significant liquid assets may compensate for a residual income shortfall whereas long-term employment would not.

Compensating factors include, but are not limited to the following:

Excellent credit history
Conservative use of consumer credit
Minimal consumer debt
Long-term employment
Significant liquid assets
Sizable downpayment
The existence of equity in refinancing loans
Little or no increase in shelter expense
Military benefits
Satisfactory homeownership experience
High residual income
Low debt-to-income ratio
Tax credits for child care, and
Tax benefits of homeownership.

Frequently Asked Questions

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Pre-Loan Frequently Asked Questions

General questions about VA loans that may arise BEFORE you get one


Q: What is a VA Guaranteed Home Loan?

A: VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

Q: What is pre-purchase counseling and why is it helpful?

A: Pre-purchase counseling gives a person information on (1) the process of buying a home, (2) the key players in the home buying process, and (3) debt management. The goal is to create a better informed homebuyer. While VA does not require such counseling, we strongly recommend it. There is usually no charge for the housing counseling. An excellent online source of information for first time homebuyers is provided by Ginnie Mae.

To locate a housing counseling office call (800) 569-4287 or visit HUDs website. The Department of Housing and Urban Development (HUD) maintains both the phone number and website.

Q: Does my entitlement guarantee that I will get a home loan?

A: No, VA cannot compel a lender to make a loan that would violate their lender policies. Lenders must also comply with VA income and credit standards. If a lender is unwilling to make a loan to you, we can only suggest that you try other lenders.

Q: How much is my entitlement?

A: Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the VA county loan limit for a single family home may be available. VA county loan limits, which can change yearly, are available at this link. The loan limits are the amount a qualified veteran with full entitlement may be able to borrow without making a downpayment.

Q: How do I get a Certificate of Eligibility?

A: Web LGY:  It may be possible to obtain a Certificate of Eligibility from your lender. Most lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY – only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.

You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility , to the Winston-Salem Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it’s best to provide such evidence.

Q: How do I obtain a VA Home Loan?

A: Here are the steps:

  • Select a home and discuss the purchase with the seller or selling agent. Sign a purchase contract conditioned on approval of your VA home loan.
  • Select a lender, present them with your Certificate of Eligibility if available, and complete a loan application.  The lender can also obtain a Certificate of Eligibility on your behalf.
  • The lender will develop all credit and income information. They will also request VA to assign a licensed appraiser to determine the reasonable value for the property. A Certificate of Reasonable Value will be issued. Note: You may be required to pay for the credit report and appraisal unless the seller agrees to pay.
  • The lender will let you know the decision on the loan. You should be approved if the established value and your credit and income are acceptable.
  • You (and spouse) attend the loan closing. The lender or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments. Sign the note, mortgage, and other related papers.

Q: What are the benefits of a VA home loan?

A: There are many benefits of a VA Home loan:

  • Equal opportunity.
  • No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
  • Buyer informed of reasonable value.
  • Negotiable interest rate.
  • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
  • Closing costs are comparable with other financing types (and may be lower).
  • No mortgage insurance premiums.
  • An assumable mortgage.
  • Right to prepay without penalty.
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
  • VA assistance to veteran borrowers in default due to temporary financial difficulty.

Q: What can VA not do?

A: Guarantee that a home is free of defects. VA guarantees only the loan. It is your responsibility to assure that you are satisfied with the property being purchased. The VA appraisal is not intended to be an “inspection” of the property. You should seek expert advice (a qualified residential inspection service), as necessary, BEFORE legally committing to a purchase agreement.

If you have a home built, VA cannot compel the builder to correct construction defects although VA does have the authority to suspend a builder from further participation in the home loan program.

VA cannot guarantee that you are making a good investment.  VA cannot provide you with legal services.

Q: Is a guaranteed loan a gift?

A: No, it must be repaid, just as you must repay any money you borrow. If you fail to make the payments you agreed to make, you may lose your home through foreclosure.

Q: Can I get a loan for a home outside of the United States?

A: Unfortunately, the law only allows VA to guarantee loans on property in the United States, its territories, or possessions.

Q: Can I get a VA loan if I have had a bankruptcy in the last few years?

A: The fact you and/or your spouse have been adjudicated bankrupt does not in itself disqualify you for a VA home loan. The following rules apply:

  • If the bankruptcy was discharged more than 2 years ago, it may be disregarded
  • If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you and/or your spouse are a satisfactory credit risk unless both of the following requirements are met:
    • you and/or your spouse have reestablished satisfactory credit, and
    • the bankruptcy was caused by circumstances beyond your and/or your spouses control (such as unemployment, medical bills, etc.)
  • If the bankruptcy was discharged within the past 12 months, it will not generally be possible to determine that you and/or your spouse are satisfactory credit risks.

Q: Why do I have to pay a fee for a VA home loan? Since I paid a fee for my first loan, why is there a larger fee for my second loan?

A: The VA funding fee is required by law. The fee is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is slightly higher. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment. First and second time users who make a down payment of at least 5 percent pay a reduced funding fee of 1.5 percent, the same as first time users making the same down payment. For a 10 percent down payment, the fee drops to 1.25 percent. The effect of the funding fee on a veteran’s financial situation is minimized since the fee may be financed in the loan. National Guard and Reservist veterans pay a slightly higher funding fee percentage. To determine the exact funding fee percentage, please review the funding fee table.

Q: I want to buy a house with a VA loan. Do I need to occupy the property?

A: The law requires that you certify that you intend to occupy the property as your home. This requirement is considered satisfied if you actually intend to occupy the property as your home and in fact so occupy it when the loan is closed or within a reasonable time afterward.

Q: I am a single veteran stationed overseas and want to buy a home in my home town. My friends who are married can do this with their spouses occupying the property in their place, but VA says I can’t do this with my parents or other relatives occupying on my behalf. Isn’t this discrimination against single veterans?

A: The law specifically provides that occupancy by the veteran’s spouse satisfies the personal occupancy requirement. The law makes no provision for occupancy by any other relatives as a substitute for personal occupancy by the veteran.

Q: May a veteran join with a non veteran who is not his or her spouse in obtaining a VA loan?

A: Yes, but the guaranty is based only on the veteran’s portion of the loan. The guaranty cannot cover the nonveteran’s part of the loan. Consult lenders to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran’s portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made.

Both incomes can be used to qualify for the loan. However, the veteran’s income must be sufficient to repay at least that portion of the loan related to the veteran’s interest in (portion of) the property and the nonveteran’s income must be adequate to cover the rest.

Q: If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan?

A: No. The surviving spouse or other co-borrower must continue to make the payments. If there is no CO-borrower, the loan becomes the obligation of the veteran’s estate. Mortgage life insurance is available but must be purchased from private insurance sources.


Louisville Ky VA Mortgage

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Free credit report and Free pre-approvals within 1 hour
 
Free credit report and Free pre-approvals within 1 hour
Louisville Kentucky Mortgage
107 South Husrtbourne Parkway, Louisville, KY | (502) 905-3708
 
Louisville coupon from http://www.topix.com
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More about Louisville Kentucky Mortgage

I specialize in Kentucky FHA/VA ,USDA, KHC, Conventional mortgage loans (Fannie Mae)in Ky. I am based out of Louisville Kentucky. I have helped over 589 Kentucky families buy their first home and refinance their current mortgage for a lower rate; For the first time buyer with little money, Kentucky Housing/KHC offers(zero-down)loans with downpayment assistance. Free credit report and Free pre-approvals within 1 hour..Call me today at 502-905-3708 or email me at kentuckyloan@gmail.com NMLS#57916

Louisville, Kentucky, United States
I have helped over 589 families buy or refinance their home over the last 13 years. You can trust me for your next mortgage loan. I deliver on what I say and I will give you honest, up-front personal attention you deserve for your home loan. I have several advantages over the big- mega banks in town. First, I can shop your loan thru different mortgage companies across the country to get you the best deal out there; whereas most banks will offer offer you their one and only deal. I have access to over 15 different mortgage companies to broker your loan thru. My rates and fees are usually better than local banks and you will not get lost in the shuffle like most borrowers do at the mega banks; your just not a number at our company, you are a person and we will treat you like one throughout the entire process. Free pre-approvals within 2 hours and get your loan closed within 15 days. Give us a try or let us compare what you have now. It’s free- Call locally at 502-905-3708; all times. Free credit reports and approvals. Stop by and see my at 107 South Husrtbourne Pkwy Louisville Ky 40222- or email me at kentuckyloan@gmail.com nmls 57916

 
 

VA Home Loans information page

MAXIMUM ENTITLEMENT
The minimum VA guaranty required is 25% of the loan amount.
VA will provide 25% of the maximum county limits.
A Certificate of Eligibility must be requested from  Veterans Information Portal website.
Veterans receiving VA pension for non-service connected disability will require VA prior approval

Streamline Refinance (IRRRL) to 100% LTV/CLTV
o Maximum $1,000,000 including funding fee, 640 credit score
o The loan being refinanced was originated and have made at least 6 payments before the new loan’s closing date.
Non-IRRRL Refinance / VA Cash Out, maximum 100% LTV/CLTV
o Maximum $1,000,000 including funding fee, 640 credit score
o Refer to VA handbook in cases where the Veteran does not have eligibility to ensure a 25% guaranty.
o Payoff of ANY non VA loan is considered cash out refinance
o 90.01-100%LTV/CLTV/HCLTV: 1 unit, fixed rate only; Max $5K cash to borrower for loan amount > conforming limit.

VA WEBSITE LINKS
o VA Home Loans information page, go here for FAQ’s, forms,
announcements and general information regarding VA loans:
www.benefits.va.gov/HOMELOANS
o Direct link to VA Handbook:
http://www.warms.vba.va.gov/pam26_7.html
o Loan Limits: http://www.benefits.va.gov/HOMELOANS/
purchaseco_loan_limits.asp

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 CONFIDENT

Kentucky Refinance Streamline Guidelines for an IRRL

Kentucky VA Streamline

Kentucky VA Streamline

 Kentucky VA IRRRL Refinance benefits:
No Income, No Assets, No Appraisal

Allowed on 2nd homes and Non-owner occupied proof veteran occupied the property at one time required Refinance of Existing VA loan up to $417,000 (loan amounts are based on VA worksheet)
No Appraisal, no income, and no asset documentation – including funds to close Existing Loan Term can be extended up to 30 years
Minimum 620 credit score required Reduced guarantee fee of .5%
No additional pricing adjustment for VA IRRRL transactions Term reduction allowed on VA IRRRL (payment cannot increase by more than 20%)

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 CONFIDENT

Documents Needed for a Mortgage Loan Approval

Documents Needed for a Mortgage Loan Approval.

via Documents Needed for a Mortgage Loan Approval.

via Documents Needed for a Mortgage Loan Approval.

Kentucky USDA Mortgage Upfront Guarantee Fee and the monthly mortgage insurance Annual fee

Louisville Kentucky Mortgage:

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
kentuckyloan@gmail.com

Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

Originally posted on Kentucky USDA Rural Housing Mortgage Loans:

August 1, 2012

Kentucky USDA Mortgage Upfront Guarantee Fee and the monthly mortgage insurance Annual fee 

Effective on October 1, 2012, the start of Fiscal Year (FY) 2013, Rural Development will revise the Up-Front Guarantee Fee and the monthly mortgage insurance fee structure as follows on a Kentucky USDA Mortgage loans in Kentucky for the Guaranteed Loan RHS :

Up-Front Guarantee Fee

FY 2012

Through

9/30/2012

FY 2013 Effective

10/01/ 2012

Purchase Transactions (no change)

2%

2%

Refinance Transactions

1.5%

2%

Annual Fee

FY 2012

Through

9/30/2012

FY 2013

Effective 10/01/2012

Purchase Transactions

.30%

.40%

Refinance Transactions

.30%

.40%

The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, “Conditional Commitment for Single Family Housing Loan Guarantee”) issued by Rural Development on or after October 1, 2012.  Loan guarantee requests submitted to Rural Development by September 30, 2012, in which…

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Kentucky VA Home Loans, Zero Down

Kentucky VA Home Loans, Zero Down.

via Kentucky VA Home Loans, Zero Down.

Kentucky VA Loan Cash Out Refinance Guidelines for 2014

Kentucky VA Loan Cash Out Refinance Guidelines for 2014

Kentucky VA Cash Out Refinance:

  • Now up to 100% of the home’s value or LTV – Plus VA Funding Fee Financed
  • Minimum Credit Score of 680 Required -
  • Approve/Eligible DU AUS Findings
  • Max DTI 45.00% -
  • Must Meet Minimum VA Guarantee Requirements

Kentucky VA Loan Requirements after a bankruptcy, foreclosure, short sale

Kentucky VA Loan Requirements after a bankruptcy, foreclosure, short sale below:

Kentucky VA Mortgage Lender

Kentucky VA Mortgage Lender

  • Foreclosure: 2 years from foreclosure completion date and date transferred back to the lender
  • Deed in Lieu: 1-2 years with re-established credit and acceptable extenuating circumstances; 3 years without
  • Short Sale: 2 years from previous sale closed date and new owner transfer date
  • Bankruptcy Chapter 7: 2 years
  • Bankruptcy Chapter 13: 1 year with bankruptcy court approval for mortgage process; 2 years from discharge

171e9-freequote_black

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346