Tag Archives: kentucky va loan

List of Government Foreclosed Homes in Kentucky to include VA, FHA, HUD, Fannie Mae and USDA

 
 

Several federal agencies have properties to sell. In fact, HUD sells both single family homes and multifamily properties. Check them out- one might be just what you’re looking for!

Single Family Homes for Sale

Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky

 Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky


VA announced they are expanding eligibility for Kentucky VA home loan benefits for certain members of the Kentucky Army and Air National Guard to include current and former National Guard members, regardless of service dates, who meet the requirements outlined below effective for COE applications received on or after 01/05/2021.

Because VA is retroactively expanding these eligibility requirements applicants who may have been previously denied VA home loan benefits and now meet the requirements below for eligibility are encouraged to reapply.

To be eligible the member must have performed not less than 90 cumulative dates of full-time National Guard duty, of which, at least 30 of those days must have been consecutive.

Full-time National Guard duty:

  • includes training or other duty in the member’s status as a member of the National Guard for which the member is entitled to pay from the United States or for which the member has waived pay from the United States.
  • does not include inactive duty, such as monthly drills. It also does not include basic or initial training.

Processing delays can be avoided when submitting a COE application (VA Form 26-1880) by listing in block 9c any active duty time served and by providing copies of one or more of the following documents as evidence of the active duty time served:

  • DD Form 214, Report of Separation: showing active duty dates, types of discharge, and the authority under which the applicant was called to serve.
  • DD Form 220, Report of Active Service: with an order for the same period.
  • For National Guard members still servicing on active duty: a current Statement of Service which identifies the National Guard member by name and social security number and provides:
    • the date of entry for the current active duty period, and
    • the duration of any time lost (or a statement noting there has been no lost time).
    • Note: the Statement of Service should also specify the authority under which the National Guard member was called to serve. Generally, this is a document written on military letterhead and signed by the Commanding Officer.
  • NGB 23 Form, National Guard Bureau Retirement Credits Record or a copy of the retirement points statement: showing one or more periods in which the National Guard member served on active duty.
  • Any other documents to support the activation may be submitted.

How To Qualify For An Kentucky VA Loan

VA loans help active duty, reserves, and veterans buy a house with no down payment and no mortgage insurance monthly making it one of the best loans out there while getting a low 30 year fixed rate loan based on market trends.

 

VA loans help you buy a home with limited credit or no credit if you can provide alternative trade lines
The VA loan program makes it possible to purchase a home with as little as 0 percent down and with a lower credit score than required by traditional mortgages.

 

VA loans are not just for first-time home buyers, and they’re not restricted to low-income applicants. Here are the requirements you’ll need to meet to qualify for an VA loan

1. Consistent income and work history for last two years to support mortgage payment

In general, lenders want to see that you’ve worked for a year or two in the same field (if not the same employer). Consistent two year history needed, does not have to be same employer.

2. Debt to income ratio for VA loans. 

The biggest factor in qualifying for an VA loan is whether you can afford the payment. As a rough guideline:

  • your mortgage payment must not be more than 1/3 of your income (before taxes) and
  • your mortgage payment PLUS other monthly debt payments (car loan, credit cards) must not be more than 43 percent of your income for a manual underwrite, or can go higher on the debt ratios if you get an automated approval through Desktop Underwriting AUS system.
  •  Car insurance, cell phone bills, utility bills are not included in the debt to income ratio just the monthly payments on the credit report and child support .

3. Zero Down Payment

There is no minimum credit score for VA loans, but in reality most lenders will wants a 620 score. However, we deal with some lenders that will go down to a 560 credit score but be prepared to get a lot of documentation to support your lower credit score.

 

When Can I Get a VA Loan After Foreclosure, Bankruptcy, or Short Sale?

Every once in a while, bad things happen to good people. Whether credit issues result from financial mismanagement or other circumstances, VA home loan guidelines are very forgiving. So, how long after a foreclosure, short sale, or bankruptcy can you get a VA loan?

  • Foreclosure seasoning = 2 years, 1 year if proven out of borrower’s control
  • Short sale seasoning = Same as foreclosure, but if not lates prior to short sale then no seasoning required
  • Bankruptcy waiting period = Chapter 7 seasoning is 2 years from discharge date. Chapter 13 seasoning is at least 12 months from filing

A key VA home loan requirement after major credit events like these is re-established credit. Therefore, showing on-time rent and other credit references may show recovery from a foreclosure, short sale, or bankruptcy.

Rent Verification for VA Loans With Low Scores

For lower credit scores on VA or any other type of mortgage loan, rent or mortgage history is very important.  A previous housing history is a good indicator of how someone will pay a new house payment.  So lenders take rent very seriously.  The most weight is given to a rent history proven by cancelled checks.  Then a buyer proving on time payment history through checks shows the buyer is the one who actually made the payments.  Plus it shows they were made on time and there is no disputing this.  Next, rent payments verified through a rental company is good.  The weakest would be rental payments made to an individual.  In cases where payments are made to individuals, additional documentation may be required.  For instance, cancelled checks or proof of withdrawal from a bank account for 12 months would help.

Keep in mind, using alternative credit is not a way to ignore a bad credit report or score.  Alternative credit is a way of proving a more solid or in depth payment history than the credit report shows.

VA Mortgage Loan Checklist

  1. Signed and dated Statement of Service Letter (Ask us if we need it though)
  2. DD214 (if no longer in the military)
  3. Current LES
  4. Most recent W2 and Tax Return
  5. Most recent bank statement (all pages of actual monthly statement)
  6. Photo identification
  7. Military transfer orders – if transferring to a new base

We will request your COE, status report, complete your application, and discuss your mortgage options.  Our goal is to have educated, confident, and approved buyers!