Kentucky VA Mortgage Guidelines for Student Loans

Kentucky VA Mortgage Guidelines for Student Loans
If student loan repayments are scheduled to begin within 12 months of the date of  the Kentucky VA loan closing, lenders should consider the anticipated monthly obligation in the loan analysis. If the borrower is able to provide evidence that the debt may be deferred for a period outside that time frame, the debt need not be considered in the analysis.
Guide Reference – Lenders Handbook Chapter 4, Section 5, Debts and Obligations

 

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Kentucky VA Mortgage Changes for Student Loans Guidelines 2017

 
Kentucky VA Mortgage Student Loan Policy  Guideline Changes
VA loans in Kentucky has issued Circular 26-17-02 regarding student loans.  This policy will be effective immediately for all Kentucky VA loans.
How to Calculate a Student Loan Monthly Payment:
If the Veteran or other borrower provides written evidence that the student loan debt will be deferred at least 12 months beyond the date of closing, a monthly payment does not need to be considered.
If a student loan is in repayment or scheduled to begin within 12 months from the date of closing, the lender must consider the anticipated monthly obligation in the loan analysis and utilize the payment established in one of the options below.  Calculate each loan at a rate of 5%of the outstanding balance divided by 12 months.
 (Example: $25,000 student loan balance x 5% = $1,250 divided by 12 months = $104.17 per month is the monthly payment for debt ratio purposes).
  • The lender must use the payment reported on the credit report for each student loan if the reported payment is greater than the threshold payment calculation above, OR
  • If the payment reported on the credit report is less than the threshold payment calculation above, the loan file must contain a statement from the student loan servicer that reflects the actual loan terms and payment information for each student loan.  The statement must be dated within 60 days of the loan closing and may be an electronic copy from the student loan servicer’s website or a printed statement provided by the student loan servicer.  It is the lender’s discretion as to whether the credit report should be supplemented with this information.
1. What are the most popular mortgages you offer?
Why are they so popular?
2. Which type of mortgage plan do you think would
be best for me? Why?
3. Will I have to buy private mortgage insurance?
If so, how much will it cost, and how long will it
be required. (NOTE: Private mortgage insurance
is usually required if your down payment is less than
20%. However, most lenders will let you discontinue
PMI when you’ve acquired a certain amount of equity
by paying down the loan.)
4. Are your rates, terms, and closing costs negotiable?
5. Who will service the loan – your bank or another?
6. What escrow requirements do you have?
7. How long will this loan be in a lock-in period
(in other words, the time that the quoted interest
rate will be honored)? Will I be able to obtain a
lower rate if it drops during this time period?
8. How long will the loan approval process take?
9. How long will it take to close the loan?
10. Are there any charges or penalties
for prepaying the loan?
KHC Hardest Hit Funds Just announced for Louisville Kentucky 2017!
This specific program is for new loan reservation on or after January 11, 2017. KY Housing has $4 Million Dollars set aside for this program and is utilized on a first-come, first-served basis.
  • The funds are for eligible first time home buyers or for those who have not owned a home in the previous 3 years
  • The program is a 2nd mortgage down payment assistance loan up to $10,000, 0% interest rate, forgivable second mortgage loan with a five-year term
  • There is no monthly payment on the down payment assistance loan and 1/5th of the loan is forgiven for 5 years and at that point the loan is fully forgiven
  • The property must remain as your primary residence for those 5 years
  • The down payment assistance loan can be used to cover your closing costs and down payment
  • Max purchase price $283,900
  • Max income for person or persons on the loan in Jefferson County is $117,250
  • The down payment assistance loan must be used in conjunction with KY Housing first mortgage program (conventional or FHA)
  • Minimum 640 credit score to be eligible but we can generally provide advice how to improve your score to that level if needed
  • The property (new or existing) must be located in one of these four counties:
    • Jefferson
    • Christian
    • Hardin
    • Kenton
    • Other counties are not eligible for this specific program but there is a down payment assistance loan for other counties
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

Equal Housing Lender
NMLS No. 57916.
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.

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

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

Kentucky VA Mortgage Lender

Kentucky VA Mortgage Lender

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

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Joel Lobb
Senior  Loan Officer

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

What 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
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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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VA Loans Louisville Kentucky

VA Loans Louisville Kentucky.

via VA Loans Louisville Kentucky.

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

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Compensating Factors to over turn a Kentucky VA Loan Mortgage Denial

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

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

 

·   excellent credit history,

·   conservative use of consumer credit,

·   minimal consumer debt,

·   long-term employment,

·   significant liquid assets,

·   sizable downpayment,

·   the existence of equity in refinancing loans,

·   little or no increase in shelter expense,

·   military benefits,

·   satisfactory homeownership experience,

·   high residual income,

·   low debt-to-income ratio,

·   tax credits for child care, and

·   tax benefits of home ownership.

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

 

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

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