Kentucky VA Home Loans for 2021

 

 

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•  No down payment in most cases for purchase loans (up-front money toward your home purchase), and easier borrower credit requirements.

•  No monthly mortgage insurance premiums or private mortgage insurance (PMI).

•  Lower homebuyer closing costs, and limits to what borrowers can be charged.

•  The opportunity to roll your “VA funding fee” into your mortgage.

• The ability to refinance a non-VA loan into the VA mortgage program.

•  The opportunity to: ask a home seller to contribute up to 4 percent of the mortgage amount to cover some of the closing costs; ask your lender to cover some of the closing costs; seek closing cost assistance through state homebuying programs created for veterans and first-time buyers.

• The right to become a VA borrower for life. In most cases you can use VA mortgage programs forever, and sometimes you can have more than one VA loan.

•  Eligibility of financing for spouses of service-members who died in the line of duty or from a service-related disability.

You can review all types of Kentucky VA Home Loans here, including purchase mortgages, refinance mortgages (called Interest Rate Reduction Refinance Loans or IRRRLs), and cash-out refinance loans.

To qualify for a Kentucky VA Home Loan, usually a military veteran or service-member must have 90 consecutive days of active service during wartime, or 181 straight days of service during peacetime, or six years in the national guard or reserves of a particular military branch. You can find out if you’re eligible here.

Kentucky  VA mortgage comes with an additional closing cost called a “VA funding fee” of between 1.4 to 3.6 percent on the amount borrowed (depending on your circumstance). This special fee that non-VA borrowers never have to pay helps partially fund the “government backed” part of the VA borrower program, and many VA borrowers can roll it into their mortgage.

 

VA Loan Quick Facts

0% Down

Minimum Down Payment

620 Credit

Minimum Credit Score

41% DTI

Max Debt-to-Income Ratio

 

 

What is a VA Loan?

VA Loans are designed to assist veterans purchase a home. Active duty military and veterans across the nation will enjoy the desirable loan terms and low interest rates that often come with a VA loan. Additional benefits like no down payment requirement help make home buying an affordable and cost-effective reality for those who have served and continue to serve our country.

What are the benefits of a VA Loan?

VA Loan benefits and features:

• Zero down payment
• Buyers may finance the funding fee into the loan
• Closing costs may be covered
• Buyers may use gifts and seller contributions to cover closing costs

Who may benefit from a VA Loan?

A VA Loan may the right fit for you if:

• You’re an eligible veteran or active-duty military
• You’re buying a first home or are a repeat homebuyer

No Down Payment Requirement on Kentucky VA Jumbo Loans!

Did You Know? No Down Payment Requirement on Kentucky VA Jumbo Loans!

What are Kentucky VA Loan Limits? VA loan limits follow FHFA county loan limits ($510,400 for conforming 1-unit properties in most parts of the country). High Cost county loan limits are now up to $765,600 (1-unit). To clarify, these “limits” are not a cap on how much your client can borrow – it simply has represented the loan amount that can be borrowed without a down payment. Veterans who can qualify for larger loans can exceed these county limits. Loan amounts exceeding the base conforming limit are considered Jumbo transactions. Prior to January 1st, all Veterans exceeding base or high cost loan limits were responsible for the additional loan amount in the form of a down payment (25% of the difference between the loan amount and the county loan limit). The Blue Water Navy Vietnam Veterans Act of 2019 expanded the maximum guaranty amounts for purchase and cash-out loans, enabling eligible* jumbo borrowers to exceed published county loan limits without a down payment requirement! The VA benefit enhancement now means eligible* Veteran jumbo borrowers may obtain no down payment VA-backed loans in all areas of the country for any home price. No jumbo credit overlays or loan limits! However, VA jumbo loan amounts exceeding $1,000,000 with 100% LTV will be subject to additional due diligence review before approval. *Subject to credit approval, requires full entitlement; for purchases and cash-out refinances only and not applicable for loan amounts <= $144,000. For IRRRLs, VA will continue to guarantee 25% of the loan amount without regard to the Veteran’s available entitlement and/or county loan limits.

 

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: A 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.

 

What Credit Score is Needed to Buy a Home in Kentucky Using Your VA Certificate of Eligibility?

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).

 

 

 

 

 

 

 

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

 

 

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.

 

 

Kentucky VA Mortgage Streamline Refinance Information

If you’re a veteran interested in refinancing your Kentucky VA home mortgage, you should look into a VA Streamline loan, also known as a VA to VA loan or Interest Rate Reduction Refinancing Loan (IRRRL). The key aspects of VA Streamline loans are:

 

• You must be a veteran to qualify.

• You must have already used your original VA benefit.

• No minimum credit score required, just a good pay history on the mortgage for last 12 months

• Refinancing should lower your interest rate or change an adjustable rate mortgage (ARM) to a VA Streamline.

• No appraisal is required, underwriting will want you to be current on your loan.

• An email from the VA can be used instead of your Certificate of Eligibility.You don’t need to use your current lender.

• Can be done with no money from you by wrapping fees into the loan.

• A VA funding fee of .5 percent must be paid in cash or included in the loan, unless you are exempt.

• You can’t receive cash back from the loan.

If you’re interested in and eligible for a Kentucky VA Streamline loan, be sure to shop around for the best rate. You’re under no obligation to stay with your current lender.

 

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.

How much can I refinance in Kentucky?

The maximum amount for an KY VA loan is determined by:

Maximum VA Loan in Kentucky: The largest loan allowed for a VA Mortgage varies from county to county. The highest maximum VA Mortgage right now is $1,094,625. The lowest maximum VA Mortgage amount available in any county is $484,500. To see what the limit is in the county in which you’re interested, visit the following page

https://www.benefits.va.gov/HOMELOANS/purchaseco_loan_limits.asp. This site lists U.S. territories as well as states.

Maximum Finance: In Kentucky, The maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 100% of the appraised value for a VA cash out refinance.

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  Kentucky 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 Kentucky VA-insured mortgage?

Kentucky 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 refinancing 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 Kentucky 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.