STUDENT LOAN CLARIFICATION FOR ALL LOAN PROGRAMS

April 19, 2016
 
STUDENT LOAN CLARIFICATION FOR ALL LOAN PROGRAMS
PROGRAM
GUIDELINE
FNMA
For all student loans, whether deferred, in forbearance, or in repayment (not deferred), the lender must use the greater of the following to determine the monthly payment to be used as the borrower’s recurring monthly debt obligation:
  • 1% of the outstanding balance; or
  • The actual documented payment (documented in the credit report, in documentation obtained from the student loan lender, or in documentation supplied by the borrower).
If the payment currently being made cannot be documented or verified, 1% of the outstanding balance must be used.
Exception: If the actual documented payment is less than 1% of the outstanding balance and it will fully amortize the loan with no payment adjustments, the lender may use the lower, fully-amortizing monthly payment to qualify the borrower.
FHLMC
Use the following:
  • The payment on the credit report
  • 1% of the outstanding balance or
  • The actual documented fully amortizing payment.
FHA
Student loans:
Regardless of the payment status, the mortgagee must use:
  • The GREATER of:
    • 1% of the outstanding balance on the loan; or
    • The monthly payment reported on the credit report; or
  • The actual documented payment, provided the payment will fully amortize the loan over its term.
For example:
Student loan reporting on credit with a balance of $15,000 and a payment of $55.00. 1% of the balance is greater than the payment reporting, so you would use 1%.
If there is documentation showing a fully amortized payment of $125.00, you could use that payment instead of the 1%.
VA
May be excluded from the borrower’s total monthly obligations with evidence of a minimum of 12 months deferment from date of closing.
 
If there is no monthly payment reflected on the credit report, a copy of the borrower’s payment letter or promissory note should be used to determine what payment amount to use.
USDA
Fixed payment loans:  A fixed payment may be used in the debt ratio when the lender retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed.  There must be no future adjustments to the terms of the student loan payments.
Non-Fixed payment loans:  Payments for deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation.  One percent of the loan balance reflected on the credit report must be used as the monthly payment.  No additional documentation is required.
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Who is eligible for Kentucky VA loans?

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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
Current 30 year fixed rate of 3.75%
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

Joel Lobb
Senior Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
10602 Timberwood Circle, Suite 3
Louisville, KY 40223

phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

Posted by joel lobb at 12:46 PM
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Labels: 100% cash out refinance, Current VA Mortgage Rates Louisville KY, IRRRLs Versus Cash-Out Refinancing Loans, Kentucky VA Home Loans, Louisville Kentucky VA Home, streamline refinance, zero down va loans

What are the 2015 Kentucky VA Mortgage Approval Guidelines for a VA loan?

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2015 Kentucky VA Mortgages Qualifying Guidelines:

620 Minimum Credit Score with most mortgage investors, though some mortgage companies will go all way down to a 530 credit score in some cases.
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

 

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

 

 

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 IRRRL Refinance Mortgage Guidelines for 2015

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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