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Kentucky VA Mortgage Guidelines for 2020

VA Loan Limits in Kentucky for 2020

How can I get a VA Mortgage loan in Kentucky in 2020?

Kentucky veterans and active duty service members are eligible. However, all veterans, active duty service members and National Guard members must meet certain requirements.

see below requirements for Kentucky VA Mortgage Loans:

  • Served 90 consecutive days during wartime
  • Served 181 days during peacetime
  • Have more than six years of service with the National Guard or Reserves

Also, Kentucky VA loans are available to the surviving spouses of military members who died in the line of duty.

How does a Kentucky VA Home Mortgage Loan Work?

The Veterans Administration guarantees the loan, but they do not make it.. VA sets forth the guidelines as far as credit, income, assets, property requirements and inspections, but the lenders use this to make a lending decision. Usually the credit, income and assets, i.e. bank statements, pay stubs and tax returns, along with credit report and credit score to get a pre-approval upfront. The appraisal report is done by VA assigned appraiser in the area and neither the lender, borrower, realtors, sellers, have no control as far as choosing the Kentucky VA appraiser. VA will typically give the VA approved appraiser 10 days to make contact, and usually get the appraisal report back within 7-10 days after inspections.

How much can I borrow with a Kentucky Mortgage VA loan?

There is no max income limit for VA loans beginning in 2020. 

 

VA Loan Limits in Kentucky for 2020

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 4 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.

VA county loan limit:

  • VA’s 2020 Loan Limits are the same as the Federal Housing Finance Agency’s limits – 2020 Loan Limits (Effective January 1, 2020)
    For purposes of determining the VA guaranty, lenders are instructed to reference only the One-Unit Limit column in the FHFA Table “Fannie Mae and Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar Year 2020 and Originated after 10/1/2011 or before 7/1/2007”.

What is the credit score or fico score required for a Kentucky VA Mortgage loan?

VA has issued guidelines that calls for no minimum credit score. However, most VA Kentucky  lenders will want to see a credit score of at least 620 before approving the mortgage. There are two lenders we work with currently that will do down to a 500 credit score, but it is very difficult to get them approved . The best thing to do is let someone pull your credit and see where you are at and go from there. A lot of lenders you will see will want a 620 credit score, with a few going down to 580. Again, this will vary greatly from lender to lender and be based upon our automated underwriting findings (AUS) from Desktop Underwriting.

Do VA Loans Require a Downpayment.

Kentuck VA home buyers do not require a down payment. It does not matter if you have a 500 credit score or 780 credit score, all VA loans offer a no down payment option to applicants. The only reason you would need a down payment is if you had to qualify for the home loan payment, or if  you were borrowing with a co-applicant, that is not married to the borrower. For example, if a veteran is legally married, and his wife is not a veteran, that is fine with VA and you would not need a down payment, However, let’s say the borrower and his friend or girlfriend wanted to buy a house together, and we needed the co-borrowers income and credit to make it work, then you would need to put down 12% on the home loan since the borrower and co-borrower are not legally married.

Mortgage insurance on A VA loan?

One of the great benefits of VA loans is that have no monthly mortgage insurance premium. When you compare this to FHA, USDA mortgage loans in Kentucky, you would need to pay monthly mortgage insurance.

There is an upfront funding fee from VA , but if you are disabled, you can get this waived sometimes. See chart below

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.

How long does it take to close a VA Mortgage loan in Kentucky?

There’s no set-in-stone time limit for how long the Kentucky VA loan process takes, but on average, you should be able to get it done within 30 days depending on the appraisal report and home inspections

VA mortgage loans is the only Government sponsored mortgage that requires a termite inspection., so keep that in mindo on your inspections when you are having them done after the accepted contract.

Can I only use a VA loan once in Kentucky?

This is a common myth with many VA eligible home buyers and homeowners. If you’re eligible for the VA loan, then you’re eligible for your entire life. Plenty of home buyers end up using the VA loan more than once, mostly because it’s arguably the best loan program out there.

Can I get a Kentucky VA Mortgage loan with a previous Bankruptcy or Foreclosure?

 VA
  • If the applicant has finished making all payments satisfactorily, the lender may conclude that the applicant has reestablished satisfactory credit
  • If the applicant is still in the repayment period, as long as 12 months’ worth of satisfactory payments have been made and the trustee or Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.
VA
  • 2 years from discharge date
  • Manual underwrites allowed
  •  If the bankruptcy was discharged within 1 to 2 years, it is probably not possible to determine that the applicant is a satisfactory credit risk unless both of the following requirements are met
  1. The applicant has obtained credit subsequent to the bankruptcy and has made satisfactory payments over a continued period of time, and
  2. The bankruptcy was caused by circumstances beyond the control of the applicant such as unemployment, prolonged strikes, medical bills not covered by insurance and the circumstances are verified.   Divorce is not viewed as a circumstance beyond the applicants control

 

 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708

kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
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Kentucky VA Loans Offer 100% Financing

Kentucky VA Loans Offer 100% Financing with no minimum credit score/ Subject to VA underwriting guidelines

Kentucky VA Loans are designated to offer long-term financing to eligible Kentucky veterans or their surviving spouses.  As a ex-army tanker (19 kilo) I  support our heroes with our VA financing options in all 120 counties of Kentucky. The intention of this program is to help Kentucky veterans purchase properties with no down payment and relaxed credit qualifying guidelines because a Kentucky  VA Loan is less restrictive when it comes to qualifying for a mortgage loan for VA .

 

Related image
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


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

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/

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Kentucky VA Loans: What to Know about Qualifying for a VA loan in 2020

What are the updated guidelines for qualifying for a Kentucky VA Mortgage in 2020

What is a Kentucky VA Mortgage loan?

A Kentucky VA loan is issued by a private lender in Kentucky and insured by the Department of Veterans Affairs or VA . for qualified U.S. veterans, active-duty military personnel and certain surviving spouses.

Who is eligible for a Kentucky Mortgage VA loan?

You are likely to be entitled to apply for a Kentucky VA mortgage if:

  • You are active-duty military.

  • You were separated from military service in a situation “other than dishonorable discharge.”

  • As a veteran or active military, you meet specific length-of-service requirements.

  • You are a reservist or a member of the National Guard.

  • You are a qualified surviving spouse of a deceased veteran.

In addition, there are these requirements:

  • The home must be your primary residence.

  • You must have a valid certificate of eligibility from the VA.

  • Although the VA has no minimum credit score requirement, most lenders do.

Kentucky VA Mortgage Loan Benefits.

A Kentucky VA loan begins with one important distinction: relaxed credit-qualifying standards in regards to credit scores, past bankruptcies and foreclosures

VA has no minimum credit score requirement, lenders often require scores of at least 580 A few lenders will approve loans with credit scores as low as 500 in some cases .2 year removed from bankruptcy and foreclosure is required too with a clear Cavirs number.

THE MAJOR BENEFITS of a Kentucky VA mortgage are as follows:

  • $0 down payment unless the purchase price is more than the appraised value of the property or it’s higher than the local VA loan limit.

  • Mortgage rates are typically lower than rates on conventional loans.

  • No mortgage insurance is required monthly, just upfront funding fees.

  • You can reuse your VA loan benefit.

  • You don’t have to be a first-time home buyer.

  • VA-backed loans can be assumable — this means they can be taken over by someone you sell the house to, even if that person isn’t a service member.

  • A bankruptcy discharged more than two years ago — and in some cases, within one to two years — will not preclude you from getting a VA loan.

Types of Kentucky Mortgage VA loans

Home purchase in Kentucky: A Kentucky VA loan can be used to buy an existing home or a condominium in a VA-approved development, or to build a home.

Cash-out refinance in Kentucky:VA cash-out refi replaces your mortgage with a new loan, while tapping some of your home’s value for things like paying off debt or making home improvements. It also can be used to replace a non-VA loan with a VA loan.

Interest rate reduction refinance loan or rate and term: A VA IRRRL (which is pronounced “Earl”) is also called a streamline refinance loan. You can replace an existing VA loan with a mortgage offering a lower interest rate, or move from an adjustable-rate loan to one with a fixed interest rate. Usually no appraisal or income documentation is needed for most IRRRL Refinances saving you a lot of money and qualifying headaches on a refinance

Kentucky VA loan fees for Funding Fees.

Although mortgage insurance isn’t charged on Kentucky VA loans, a “funding fee” serves the same purpose: to help lenders defray the expenses of foreclosing on borrowers who default. The fee ranges from 1.25% to 3.3% of the loan balance, depending on your down payment, branch of the military and whether or not it’s your first time getting a VA loan.

The VA funding fee can be rolled into your total loan package, but that will likely raise your interest rate and will absolutely raise your monthly payment.

Though a down payment is not generally required, putting 5% or more down will reduce your VA funding fee. And a down payment will lower your monthly payment, too.

 

Childcare Expenses

Did you know that VA considers childcare expenses a debt?

VA has given guidance that Borrowers with children age 12 and under must complete and sign a “Child Care Letter”. The lender must obtain the letter from the veteran documenting the childcare expense or detailing why no expense is incurred. Ensure that the current daycare provisions will remain logical based on the location of the new home. If applicable, the name and address of the childcare provider, should be obtained. This expense should be listed under section D, line 29, “Job Related Expense (e.g., child care)” on the VA Loan Analysis.

A “VA Child Care Expense Certification” form can be found on the Fairway website under “Forms & Documents” or by clicking here: VA Child Care Expense Certification

 

Kentucky VA Guidelines After Bankruptcy And Foreclosure On Waiting Period After Foreclosure

Kentucky VA Loans only have a two year mandatory waiting period after foreclosure, deed in lieu of foreclosure, or short sale for a Veteran to qualify for a Kentucky VA Loan.

 

Kentucky VA Guidelines After Bankruptcy And Foreclosure On Waiting Period After Chapter 7 and 13

  • There is a two year mandatory waiting period to qualify for a VA Loan after a Chapter 7 Bankruptcy discharged date and 1 year for A Chapter 13 Bankruptcy

 

Kentucky VA Loan Process

A list of items needed for underwriting is provided to the buyer based on the buyer’s scenario. Based on the borrower’s scenario, the process is explained which includes the items discussed below such as the VA certificate of eligibility (COE), DD-214, income verification, and more.

 

How to Get a VA Loan Certificate of Eligibility

 

How to Apply for a VA Home Loan Certificate of Eligibility (COE)

The first step in getting a VA direct or VA-backed home loan is to apply for a Certificate of Eligibility (COE). This confirms for your lender that you qualify for the VA home loan benefit. Find out how to apply for a COE. Then, choose your loan type and learn about the rest of the loan application process.

How do I prepare before starting my application?

Gather the information you’ll need to apply for your COE. Click on the description below that matches you best to find out what you’ll need:

 

  • Veteran
  • Servicemember
  • Current or former activated National Guard or Reserve member
  • Current member of the National Guard or Reserves who has never been activated
  • Discharged member of the National Guard who was never activated
  • Discharged member of the Reserves who was never activated
  • Surviving spouse of a Veteran who died on active duty or who had a service-connected disability

 

How do I apply for my COE?

You can apply online right now.

Go to eBenefits to Apply

You can also apply:

Through our Web LGY system

In some cases, you can get your COE through your lender using our Web LGY system. Ask your lender about this option.

By mail

To apply by mail, fill out a Request for a Certificate of Eligibility (VA Form 26-1880) and mail it to the address listed on the form. Please keep in mind that this may take longer than applying online or through our Web LGY system.
Download VA Form 26-1880.

 

Next steps for getting a VA direct or VA-backed home loan

Applying for your COE is only one part of the process for getting a VA direct or VA-backed home loan. Your next steps will depend on the type of loan you’re looking to get—and on your lender (for most loans, the lender will be a private bank or mortgage company; for the Native American Direct Loan, we’ll be your lender).

 

 

 

 

 

 

 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708

kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

 

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FREQUENTLY ASKED QUESTIONS FOR KENTUCKY VA MORTGAGE LOANS

Kentucky VA Mortgage Lender
502-905-3708

 

What Does Having Basic Entitlement of $36,000 Mean?
The $36,000 does not represent the maximum loan amount you can obtain through the VA Home Loan Program. The figure merely provides evidence to your lender that you have full VA entitlement.
With this entitlement and underwriter approval, you can obtain a loan in an amount up to $417,000; some high cost counties have even higher limits.
I Now Have My COE, What Do I Do Next?
 Contact any VA approved lender and start the loan process. Do note that the COE does not guarantee you a VA loan; you still must qualify based upon your income and credit.
 
How Do I Apply For a Loan?
VA does not do any direct lending, and as such VA does not accept loan applications from veterans. You must contact a VA approved lender in order to apply for a VA loan. For more information about VA loans, visit www.benefits.va.gov/homeloans/.
 
What is the VA Interest Rate?
VA does not establish interest rates or closing costs for VA loans. Rates are negotiable between you and your lender. It is advisable to obtain quotes from at least three different lenders.
What is the Minimum Credit Score Required for a VA loan?
VA has no minimum credit score requirement. However, the lender you choose to do business with may have such a requirement.
 
What Types of Property Does My COE Cover?
The VA Home Loan program guarantees loans for real property that is to be used by the veteran as a primary residence. The program does not cover vacation homes, vacant land, multiplexes in excess of four units, motor-homes, small business loans, or commercial buildings.
 
Can I Use My VA Entitlement to Refinance?
Yes. You can refinance any type of loan on your property using your VA entitlement.
 
 
Why Does My COE Reflect a Paid-in-Full Loan With No Restoration of Entitlement?
In order for entitlement to be restored, the prior VA loan must be paid in full and the property disposed of. If you no longer own the property, please state as such on your application form 26- 1880 and resubmit. Do note that you can obtain a restoration of entitlement without disposing of the property when the loan is paid in full on a one time basis

 

 

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2020 Kentucky VA LOAN LIMITS

The changes are part of the Blue Water Navy Vietnam Veterans Act of 2019, which became effective Jan. 1, 2020.  Besides extending disability benefits to more Vietnam War veterans exposed to Agent Orange, the new law eliminates VA loan limits for borrowers with full entitlement to VA loans. It also increases the VA funding fee for most borrowers. (The fee decreases slightly for National Guard and Reserve members.)

VA home loans are a benefit for current and veteran service members. They have competitive interest rates and usually no down payment requirement, among other advantages. VA loan limits are the maximum loan amount the Department of Veterans Affairs can guarantee without borrowers making a down payment. VA funding fees are one-time fees borrowers pay in lieu of mortgage insurance to help cover the government’s costs for backing the loans. If a borrower defaults, the VA repays the lender a portion of the loan.

No VA home loan limits in 2020

“Removing the loan limits is huge for veteran and military buyers across the country, and it comes on the heels of another big year in VA lending,” says Chris Birk, director of education at Veterans United Home Loans. The VA guaranteed 624,544 loans in fiscal year 2019, a 2% increase over the prior fiscal year, according to data from the Department of Veterans Affairs.

“Veterans living or stationed in costlier real estate markets can stretch the zero-down buying power of their benefit in a way they never have before,” Birk says.

The removal of loan limits doesn’t mean unlimited borrowing power without a down payment. You’ll still need to have sufficient income and meet a lender’s credit requirements to qualify for the loan amount.

Loan limits will still apply in 2020 to veterans who have one or more active VA loans or have defaulted on a previous loan, Birk says.

Those VA loan limits are the same as the ones set by the Federal Housing Finance Agency on conforming loans. The limit in 2020 is $510,400 in a typical U.S. county and higher in expensive housing markets, such as San Francisco County.

If you’re subject to VA loan limits, the lender will require a down payment if the purchase price is above the loan limit. The exact down payment you will pay is determined by a formula that takes into account your entitlement and home price.

VA funding fee to increase

The VA funding fee you pay in 2020 will depend on your down payment amount and whether you’ve ever had a VA-backed loan before. If you haven’t, it’s a “first use” loan, and if you have, it’s a “subsequent use” loan. You can pay the fee upfront or roll the cost into the loan.

The fee for first-use, zero-down loans is 2.3% of the loan amount in 2020, up from 2.15% for active-duty military and veterans in 2019. The fee for subsequent use loans will be 3.6% of the loan amount, up from 3.3%. These fees will stay in place for two years, return to 2019 levels from 2022 through Sept. 30, 2029, and then drop further after that.

The funding fee increase is lower and lasts for a shorter period than earlier proposals, Birk says. “It’s critical that the VA loan remains affordable.”

Other VA funding fee changes

The Blue Water Navy Vietnam Veterans Act of 2019 made a couple of other funding-fee changes. Starting in 2020, the fees will be the same for the main branches, National Guard and reservists. Currently, National Guard and Reserve members pay slightly higher fees.

In addition, active-duty service members who have received a Purple Heart are now exempt from the funding fee.

Shopping for a VA loan

Not all lenders offer VA loans, and among those that do, some have more experience working with military service members and veterans than others.

“There is a huge variation, depending on which lender you go with,” says Anthony Powell, chief operating officer for AAFMAA Mortgage Services LLC in Fayetteville, North Carolina. “Going to the first bank you think of may not be the best option.”

Requirements for borrowers and mortgage rates vary among lenders. For example, the U.S. Department of Veterans Affairs does not require a minimum credit score for VA loans, but lenders can set their own thresholds.

Aim to get quotes from at least three lenders, and look for one that provides the information and help you need to understand and move as smoothly as possible through the mortgage process.

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Who is eligible for Kentucky VA loans?

Kentucky VA loans are available to veterans of the United States Armed Forces, including those who are on active duty or reserve, as well as widows or widowers of veterans. There are also special circumstances under which spouses of veterans can also apply for eligibility.
Keep in mind, you’ll need to provide a Certificate of Eligibility (COE) in order to prove you are entitled to receive VA financing. Visit the U.S. Department of Veteran Affairs website to learn how to obtain a COE. Your lender can also help you obtain a COE based on your unique circumstances.

What benefits do Kentucky VA Loans offer veterans?

Kentucky VA loan program comes with special advantages other mortgage loan products don’t have. Here are just a few benefits of Kentucky VA loans:
Flexible qualifying and credit requirements
Lower interest rates
Zero down payment
No private monthly mortgage insurance (PMI)
Property tax exemptions
There are even grants that allow disabled veterans to make modifications to their home. Another important benefit to point out includes the ability to finance a substantial portion of the closing costs associated with purchasing a home.

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.

VA Loan 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 or email me the above documents.

Let me know your questions.

Thanks and look forward to helping you

VA Home Purchase Benefits

Option for no down payment, zero down home loan
No monthly mortgage insurance premium
Seller or lender may contribute to veteran’s closing costs
Termite report required on all VA loans
No closing costs option available
Close in as little as 30 days
Free Mortgage Approvals

 

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Refinance VA Mortgage Loan in Louisville Kentucky

Louisville Kentucky VA Refinance
Louisville Kentucky VA Refinance

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

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
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


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

http://www.nmlsconsumeraccess.org/

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

 

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender.

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

.

 

 

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Kentucky VA Loan Guidelines

Kentucky VA Loan Guidelnes

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

 

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Louisville Kentucky VA Refinance Loans

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

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

 

VA Loan Requirements for Kentucky

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 option involves Louisville Kentucky’s 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 refinances 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 specialists 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 the 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 hassles for you and explain the process to you in plain English. Just give us a call today and we’ll be happy to assist!

Kentucky VA Home Loan Guide

 

 

For your free credit report and analysis call us today at 502.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708

kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

 

 

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Frequently Asked Questions on Kentucky VA loans

Who is eligible for the VA Loan?

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.

 


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 careTo 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.

VA Funding Fee Explained

The 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 eligible borrowers can enjoy loan benefits such as $0 down financing and no PMI payments.

VA Funding Fee Chart

The 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 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 2.30% 2.30%
5-10% Down 1.65% 1.65%
10% or More 1.4% 1.4%
Purchase – Additional Use
Down Payment Active Duty/Retired Guard/Reserve
$0 Down 3.60% 3.60%
5-10% Down 1.65% 1.65%
10% or More 1.40% 1.40%
Cashout Refinance
VA Usage Active Duty/Retired Guard/Reserve
1st Time Use 2.30% 2.30%
Additional Use 3.60% 3.60%
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 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?

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 downpayment. 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 4 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.

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.

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. . 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 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

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Louisville Kentucky VA Home loans

VA Loans Louisville Kentucky

VA Loans in Louisville Kentucky | Ky Va home loans info

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:

Beginning in 2020, there is no Maximum VA Loan in Kentucky:
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.

 

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 financing 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.

Kentucky VA Mortgage Lender Guidelines

Who is eligible for a VA Mortgage loan in Kentucky?

 

1. WHAT KIND OF CREDIT SCORE DO YOU NEED TO GET APPROVED FOR A VA MORTGAGE LOAN IN KENTUCKY?

Most VA mortgage lenders in Kentucky are looking for at least a 620 credit score for a VA loan approval.  However, VA in their official published guidelines for credit scores says they don’t have a minimum credit.  What happens with VA Lenders they will create credit overlays to push out lower credit score borrowers because if they do too many VA loans that default, then they run the risk of getting shut out from VA from them insuring their loans.

FICO credit scores range from 300 to 850. Most borrowers are in the 600 to 700 ranges with very few in the 300 to 400 range and few limited 800 scores.

It pays to shop around with different VA lenders in Kentucky to see what their minimum credit score requirements are.

 

2. Who is eligible for a VA Mortgage loan in Kentucky?

Kentucky Veterans, active duty servicemembers, reservists, National Guard members, surviving spouses, and other individuals can earn eligibility for home loan benefits. You may qualify if you are:

  • Military veteran
  • Active duty servicemember
  • Reservist or National Guard member
  • Surviving spouse who did not remarry
  • Academy cadet or midshipman
  • National Oceanic and Atmospheric Administration (NOAA) officer
  • Public Health Service (PHS) Officer

In order to obtain a Kentucky VA loan, you’ll need a Certificate of Eligibility, which you can apply for online or we can get for you with your info. Usually comes back instantly, no waiting around like it use to be for it to come in the mail.

3. Can you get a Kentucky VA Mortgage loan more than once?

If you are deemed eligible for a Kentucky VA loan, the benefit is yours for life, and in some cases, it can be used multiple times at once. Many veterans use it repeatedly for their home financing needs. Use it for a starter home, then use it again when you’re ready for more space. THEN you can use it again to refinance your loan for a lower rate or get cash out of your home’s equity. It’s completely up to you.

When you use your VA COE again to buy another home, there is an increase in the funding fee from 2.15% to 3.3% for regular veteran and active duty if not on VA disability have a waiver of the VA funding fee.

You can have two active VA loans out at the same time. Call or email me and I can explain to you. Very detailed and complex but can be done if meets the test for VA guidelines for having two VA loans at once. 

KENTUCKY VETERANS ARE GUARANTEED VA MORTGAGE LOAN

 No one is guaranteed a loan. Even veterans with VA entitlement.

The word “guaranty” comes up a lot when talking about Kentucky VA loans. Well, I’m here to tell you that a “guaranty” and a “guarantee” are not the same thing. Many people assume when they see “VA loan guaranty that they’re guaranteed a VA loan, and that’s simply not the case.
The VA loan guaranty refers to the amount of each VA loan that is backed by the government (usually 25%). If the loan defaults, the amount under guaranty is refunded to the lender by the government. So just because you see guaranty, doesn’t mean your loan is guaranteed to be approved.

HOW LONG DOES  VA APPRAISAL PROCESS?

Fact: The VA appraisal process can be rough if you’re pursuing a home that’s in rough shape. Otherwise, the VA appraisal process isn’t much different from the average Conventional appraisal.

VA loan appraisers use the VA’s “Minimum Property Requirementguidelines to determine if a home is safe, structurally sound, and sanitary. If the home doesn’t meet their standards, the process can take a while. That’s why it’s important to choose your home wisely. A few of the MPRs include:

  • Plumbing and electrical systems must be safe and in good condition
  • Heating must be adequate
  • Roofing must be adequate
  • No leaks, excessive dampness, defective construction, or decay
  • No termites, destructive insects, fungus growth, or dry rot

Kentucky VA loans aren’t designed to fund fixer-uppers. The VA wants veterans and servicemembers to buy solid, move-in ready homes, not projects.  Also, since most VA borrowers are putting no money down, they don’t want to take the risk of borrower walking away with no equity in the home.

 

Kentucky VA Mortgage Lender Guidelines for 2019

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


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

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Equal Opportunity Lender. NMLS#57916  http://www.nmlsconsumeraccess.org/