Kentucky VA Lender Mortgage Information The Department of Veterans Affairs (VA) offers financing for Veterans. The VA determines eligibility and will issue a certificate of eligibility to qualifying applicants. Must be a Veteran, Active Duty Military, or member of the Reserves. 100% Financing No Monthly Mortgage Insurance Closing costs can be gifted by immediate family or by seller contributions at a maximum 4% of the selling price. Available for Purchase and Refinance Transactions. Gift funds allowed and Seller Concessions at a maximum of 4% of selling price allowed. KENTUCKY VA MORTGAGE LOAN INFORMATION  COMMON KENTUCKY VA LOAN MYTHS FOR KENTUCKY VETERANS VA loans are difficult to qualify for. All VA loans require a down payment. VA loans require private mortgage insurance (PMI). You can’t refinance a VA loan. You can only have one VA loan. You can use a VA loan once. VA loans are not assumable. You can’t buy land with a VA loan. You can’t build a house with a VA loan. VA loans only apply to the home purchase itself. Is it hard to qualify for a VA loan? Myth #1: Kentucky VA loans are difficult to qualify for. Fact: VA loans have fewer credit restrictions compared to conventional loans. These reduced restrictions, like a higher debt-to-income (DTI) ratio and more leniency regarding credit scores, mean it can be easier to qualify. VA has no minimum credit score but lenders will have overlays with most being 620 and some going down to 580, with a few going all the way down to 500 but it is very difficult to get approved at this level — though each individual case and lender will vary. Do VA loans require a down payment? Myth #2: All Kentucky VA loans require a down payment. Fact: While conventional loans generally require down payment options that can reach up to 20%, no such thing is required with a VA home loan at or under the local conforming limit. Down payments are still an option, of course, but they are not a requirement. The VA allows you to purchase jumbo loans, but the down payment depends on your entitlement: Full entitlement – 100% LTV (loan-to-value) maximum Partial entitlement – Maximum loan must be calculated using 25% guarantee of 1 unit county loan limit. Max LTV is lesser of max allowed or LTV required to meet 25% guaranty Do VA loans have PMI? Myth #3: VA loans require private mortgage insurance (PMI). Fact: Private mortgage insurance is not required for VA loans. PMI typically adds 0.2%-0.9% of expenses to your monthly mortgage payments when you put less than 20% down. That’s a big additional expense you don’t have to worry about when you get a VA loan. Remember, VA loans do come with a funding fee. Can you refinance a VA loan? Myth #4: You can’t refinance a Kentucky VA loan. Fact: Thanks to VA streamline and cash-out loan programs, VA loans are actually easier to refinance than conventional mortgages. The streamline version lowers the mortgage rate of an already existing VA loan, usually for less than the current principal and interest. This means it doesn’t require a credit check or appraisal. The cash-out option involves a credit check and appraisal, since the home’s value represents the maximum loan amount and the new loan will be larger than the existing loan. How many VA loans can you have? Myth #5: You can only have one Kentucky VA loan. Fact: There is no limit to the number of VA loans you can have. While it is possible to have multiple VA loans at once, this depends on VA loan entitlement. VA loan entitlement refers to the amount that the VA will pay your lender if you default on your loan. There is a limit on your VA entitlement. It can be split across multiple loans but the limit remains the same. For full entitlement, the VA covers: Up to $36,000 for loans < $144,000 Up to 25% for loans > $144,000 If, however, you’ve used a portion of your entitlement in one loan that you’re still actively paying off (or defaulted on), the amount of entitlement you have on any new loan is reduced. This means that you may need to put money down yourself instead of having the usual benefit of a zero down payment for VA loans. To learn about VA loan limits and entitlement, visit us here. How many times can you use a VA loan? Myth #6: You can only use a Kentucky VA loan once. Fact: There is no limit on the number of times you can use the VA loan benefit. You can use the benefit an unlimited number of times throughout your life, as long as you still qualify. To qualify, you need to meet certain requirements, which you’ll already be aware of if you’ve taken out a VA loan in the past. For those who haven’t taken out a VA loan prior, you can learn how to qualify here. Are VA loans assumable? Myth #7: Kentucky VA loans are not assumable. Fact: Federally insured and guaranteed loans are usually assumable. This includes VA loans. What does it mean if a loan is assumable? An assumable mortgage is when the lender allows you, the buyer, to take over the current mortgage that the seller has. This can save a lot of money if the interest rates are lower on the existing mortgage than they would be to take out a new mortgage. Assumable mortgages allow buyers, who otherwise wouldn’t qualify for a VA loan, to take over a VA mortgage. This means that you would get most, if not all, of the benefits that come with VA loan eligibility. In order to assume a VA mortgage, you will need to meet certain requirements, such as: acceptable credit history and  credit score debt-to-income ratio to meet guidelines No Bankruptcies or foreclosures in last 2 years ( Chapter 7) –Chapter 13 is possible within one year in the plan. acceptable work history for last two years residual income requirements property passing VA standards You will also be required to pay the VA funding fee that comes with VA loans. This equates to 0.5% of the total loan amount. This may be waived if you’re an eligible military borrower who qualifies for an exemption. Other fees may be required as well. For sellers, if a non-military borrower assumes your mortgage, your VA entitlement won’t be restored until the loan is paid in full. You will want to request that the lender releases you from liability on the loan to avoid dips in your credit reports if the buyer defaults or makes a late payment. Can you buy land with a VA loan? Myth #8: You can’t buy land with a Kentucky VA loan. Fact: The VA doesn’t authorize buyers to singularly purchase land with a VA loan. However, you can purchase land and build a home on it. This is partially because VA loans are granted with a required occupancy period — you must use the property as your primary residence for at least one year. If there is already a home on the land, this is acceptable. Another acceptable scenario is if you plan to immediately build a home on the land after purchase. This may require a purchase/construction loan. You can also purchase land with a conventional loan or certain other types of loans. Then you can build a home on the land using a VA construction loan. Upon completion, military borrowers can refinance VA construction loans into permanent VA loans. Builders must be VA-approved. Finally, you can purchase land and build a property using a non-VA purchase/construction loan. Then you can refinance the loan upon completion of the build into a permanent VA loan (as long as the property meets the VA’s requirements). Can you use a VA loan to build a house? Myth #9: You can’t build a house with a Kentucky VA loan. Fact: VA construction loans do exist, as mentioned above, and under the right circumstances, they can be refinanced into permanent VA loans. Ask your lender about VA purchase/construction loan options. Can you use a VA loan for home improvement? Myth #10: Kentucky VA loans only apply to the home purchase itself. Fact: The VA allows for increases to purchase loans for the purpose of making renovations. The VA’s Energy Efficiency Mortgage program, for instance, lets borrowers add up to $6,000 to their home loan amount to install solar heating, insulation and storm windows, among other features. In conclusion Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. — Joel Lobb Mortgage Loan Officer Individual NMLS ID #57916   American Mortgage Solutions, Inc. 10602 Timberwood Circle  Louisville, KY 40223 Company NMLS ID #1364   click here for directions to our office Text/call:      502-905-3708 fax:            502-327-9119 email:          kentuckyloan@gmail.com https://www.mylouisvillekentuckymortgage.com/     Email ThisBlogThis!Share to TwitterShare to FacebookShare to Pinterest Labels: 2 va loans, bankruptcy va mortgage, fort knox va mortgage, Kentucky VA Loans, VA, va loan, VA Mortgage Loan Checklist

Kentucky USDA Mortgage Lender for Rural Housing Loans

Kentucky mortgage loan approval for First Time Homebuyer

Kentucky USDA loans, backed by the U.S. Department of Agriculture, are designed to help low to moderate-income borrowers in Kentucky rural areas achieve homeownership

If you’re considering buying a home in Kentucky and looking for a mortgage loan with favorable terms, a Kentucky USDA loan could be a great option. Kentucky USDA loans, backed by the U.S. Department of Agriculture, are designed to help low to moderate-income borrowers in Kentucky rural areas achieve homeownership. Here’s a comprehensive guide on how to get approved for a USDA mortgage loan in Kentucky in regards to credit score, income, work history, debt to income ratios, bankruptcy and foreclosure :

1. Kentucky USDA loans Credit Score Requirements:
   • While Kentucky USDA loans are known for their lenient credit score requirements compared to conventional loans, having a good credit score can still improve your chances of approval. Aim for a credit score of 640 or higher for smoother processing. On paper USDA says there is no minimum score, but it is very difficult to get approved with lenders with no score.
2. Kentucky USDA loans Income Eligibility:
   • USDA loans have income eligibility criteria based on the area’s median income. To qualify, your household income should fall within the USDA’s income limits for the specific county or area in Kentucky where you plan to buy a home.
3. Kentucky USDA loans Work History:
   • Lenders typically look for a stable work history, preferably with at least two years of consistent employment in the same field or industry. This demonstrates your ability to repay the loan.
4. Kentucky USDA loans Property Location (Counties 120 in Kentucky):
   • USDA loans are specifically designed for properties located in eligible rural areas or designated suburban areas. Before applying, ensure that the property you’re interested in is within a USDA-eligible location in Kentucky.
5. Kentucky USDA loans Income Ratio:
   • Your debt-to-income (DTI) ratio is an important factor in loan approval. Generally, USDA loans require a DTI ratio of 41% or lower, although some lenders may allow higher ratios with compensating factors.
6. Kentucky USDA loans Income Limits:
   • USDA loans have income limits based on family size and county location. These limits vary by area, so check the current income limits set by USDA for the county where you plan to purchase your home.
7. Kentucky USDA loans Property Type:
   • USDA loans are intended for primary residences, including single-family homes, townhouses, and eligible condominiums. Investment properties and vacation homes are not eligible.
8. Kentucky USDA loans Bankruptcy and Foreclosure Requirements:
   • Having a bankruptcy or foreclosure in your financial history doesn’t necessarily disqualify you from a USDA loan. However, there are waiting periods after these events before you can apply:
     • Chapter 7 bankruptcy: 3 years from the discharge date.
     • Chapter 13 bankruptcy: 1 year of on-time payments and court approval.
     • Foreclosure: 3 years from the sale date.
9. Kentucky USDA loans Closing Time:
   • USDA loans typically take around 30 to 45 days to close, although this timeline can vary based on factors such as application volume and the efficiency of document processing.
10. Kentucky USDA loans Appraisal Requirements:
    • A professional appraisal is required for USDA loans to determine the fair market value of the property. The appraisal ensures that the property meets USDA standards and is worth the loan amount.
11. Kentucky USDA loans Termite Inspections:
    • USDA loans may require a termite inspection, especially in areas where termite infestations are common. The inspection aims to identify and address any termite-related issues in the property.
12. Kentucky USDA loans GUS (Guaranteed Underwriting System):
    • GUS is a tool used by lenders to process USDA loan applications. It evaluates the borrower’s credit, income, and other factors to determine eligibility and streamline the underwriting process.
13. Kentucky USDA loans Manual Underwriting:
    • In some cases, USDA loans may undergo manual underwriting, especially if the borrower’s application doesn’t meet automated approval criteria. Manual underwriting involves a more thorough review of the borrower’s financial situation by the lender.

Kentucky USDA loan

To get a Kentucky USDA loan, potential Kentucky rural housing borrowers must follow this sequence of steps:

1. Determine eligibility by consulting online USDA maps.
2. Decide whether you want a guaranteed or direct loan. Guaranteed loans will have higher income limits, which you’ll work out with the lending institution.
3. Submit all applicable paperwork, including income, debts, and credit reports.
4. After pre-approval, begin searching for new homes (or launch renovations on your current home).

Keep in mind that you’ll have fees associated with your loan. Guaranteed loans require an upfront 1% fee and annual fees of 0.35% for as long as the mortgage is active.

USDA program for properties located outside urban areas of Kentucky areas where you can secure a no money down loan at a  fixed rate of on 30 years.

The max household income limits usually are between  $110,500 to $146,000 for most rural area counties depending on household family size.

 This changes every year so make sure you are using updated USDA Income Limits for this year 

A 620-640 middle credit score is needed for loan approval on this program. They’re no max loan limits on USDA loans. You just need to qualify based on your debt to income ratio (see below under income section)—–USDA will go down to 580 on scores but it has to pass  USDA Manual Underwriting guidelines

Need to be 3 years removed from a Chapter 7 Bankruptcy and 3 years from a foreclosure

Joel Lobb  Mortgage Loan Officer

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

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

Comparing Kentucky VA loans to Kentucky USDA, FHA, and Fannie Mae loans in Kentucky

Kentucky VA loans Compared to Kentucky USDA, FHA, and Fannie Mae loans in Kentucky

When comparing Kentucky VA loans to Kentucky USDA, FHA, and Fannie Mae loans in Kentucky, several factors come into play, including credit score requirements, income considerations, work history, debt ratios, and how each loan type treats bankruptcy and foreclosure. Let’s delve into the benefits and differences of each loan type:

Kentucky Mortgage Credit Score Requirements:

• Kentucky VA Loan: VA loans typically have more flexible credit score requirements compared to conventional loans. While there’s no specific minimum score set by VA , most Kentucky VA lenders often look for a credit score of 620 or higher. I can do VA loans down to a 580 credit score.
• Kentucky USDA Loan: USDA loans also offer flexibility, with no minimum score required per USDA guidelines, but most Kentucky USDA lenders will want a 640 score or higher. I Can do Kentucky USDA loans down to a 580 credit score on a manual underwrite.
• Kentucky FHA Loan: FHA loans are known for accommodating borrowers with lower credit scores, often accepting scores as low as 500 with a 10% down payment or 580 with a 3.5% down payment.
• Kentucky Fannie Mae Loan: Fannie Mae loans usually require a minimum credit score of 620 or higher, although some lenders may have slightly different requirements.

Kentucky Mortgage Income and Work History:

• Kentucky VA Loan: VA loans consider your stable income and employment history but may be more lenient if you have a history of military service or steady employment. 2 years of employment needed for loan application-minimal job gaps
• Kentucky USDA Loan: USDA loans often have income limits based on the area’s median income, and you need a stable income source. 2 years of employment needed for loan application-minimal job gaps
• Kentucky FHA Loan: FHA loans consider your income stability and work history, with guidelines that vary by lender. 2 years of employment needed for loan application-minimal job gaps
• Kentucky Fannie Mae Loan: Fannie Mae loans typically require a stable income and employment history, similar to conventional loans. 2 years of employment needed for loan application-minimal job gaps

Kentucky Mortgage Debt Ratio Requirements:

• Kentucky VA Loan: VA loans generally have more lenient debt-to-income (DTI) ratio requirements, often allowing for a higher DTI compared to conventional loans. VA loans can get approved on much higher debt to income ratios vs FHA, USDA and Fannie Mae loans. 65% or higher in some situations but if manual underwrite, will want the ratios closer to 41% with good residual income for VA loan. VA loans are the only type of loans that require a residual income…FHA, Fannie Mae, USDA does not have residual income requirements
• Kentucky USDA Loan: USDA loans have very strict DTI ratio limits, typically around 41% to 45% max on the backend ratio and 33% or less on the front end. By far the most restrictive on debt ratios vs FHA, VA, and Fannie Mae loans
• Kentucky FHA Loan: FHA loans also have relatively flexible DTI ratio limits (56% back end ratio possible on a AUS approval), making them accessible to borrowers with moderate levels of debt. Front end ratio max 45%
• Fannie Mae Loan: Fannie Mae loans follow standard DTI ratio guidelines similar to conventional loans. TYpically the second most restrictive on debt ratios right behind USDA loans on tighter debt to income ratio requirements, with the max back-end ratio no more than 50% –Front end ratio max 45%

Kentucky Mortgage Bankruptcy and Foreclosure Requirements:

• Kentucky VA Loan: VA loans are more forgiving of past bankruptcy or foreclosure, often requiring a waiting period of 2 years for Chapter 7 bankruptcy and 1-2 years for foreclosure.
• Kentucky USDA Loan: USDA loans have specific waiting periods after bankruptcy (3 years for Chapter 7) and foreclosure (3 years).
• Kentucky FHA Loan: FHA loans have shorter waiting periods after bankruptcy (2 years for Chapter 7) and foreclosure (3 years).
• Kentucky Fannie Mae Loan: Fannie Mae loans typically require longer waiting periods after bankruptcy (4-7 years) and foreclosure (7 years).

Advantages and Disadvantages of Kentucky VA loans, USDA, Fannie Mae and FHA:

• Kentucky VA Loan Advantages: Zero down payment, competitive interest rates, no private mortgage insurance (PMI) requirement, lenient credit and DTI ratios, and flexible eligibility criteria for veterans and active-duty service members.
• Kentucky VA Loan Disadvantages: Funding fee (although it can be rolled into the loan), limited to eligible veterans, service members, and some spouses.
• Kentucky USDA Loan Advantages: Zero down payment, lower interest rates, flexible credit requirements, and available in eligible rural areas.
• Kentucky USDA Loan Disadvantages: Limited to rural properties, income limits, and property eligibility criteria.
• Kentucky FHA Loan Advantages: Low down payment (3.5%), flexible credit requirements, competitive interest rates, and accessible to first-time homebuyers.
• Kentucky FHA Loan Disadvantages: Mortgage insurance premiums (MIP), stricter property standards, and limits on loan amounts.
• Kentucky Fannie Mae Loan Advantages: Available for a wide range of properties, competitive interest rates, and options for low down payments.
• Kentucky Fannie Mae Loan Disadvantages: Stricter credit and DTI requirements, potential for private mortgage insurance (PMI), and limited flexibility for borrowers with past financial challenges.

In summary, choosing the right loan type depends on your specific financial situation, eligibility criteria, and property location. VA loans offer excellent benefits for eligible veterans and service members, while USDA, FHA, and Fannie Mae loans provide alternatives with their own advantages and considerations.

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

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).