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?

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.

 

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).

 

 

 

 

 

 

 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
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 Lending Guide

Kentucky VA loans are typically the best solution for our honored veterans and service members. Contrary to popular belief, VA loans are fairly easy to process and tend to not be any more complicated than any other loan program that we offer.

Here are some of our favorite features of Kentucky VA loans:

  1. No Down Payment – VA is a true 100% financing loan with no minimum investment required.
  2. No Monthly Mortgage Insurance – VA loans do not require monthly mortgage insurance, providing significant cost savings to our Veterans. They do require an upfront Funding Fee of 0 to 3.6% that is paid directly to the VA. This funding fee is financed into the loan and may be waived for some buyers based on their scenario.
  3. Credit scores – Interest rates and underwriting requirements are less credit score sensitive than other loan programs. In some scenarios, we are able to lend to buyers with scores in the mid-500s. Buyers without a credit score may be eligible with additional requirements.
  4. Renovation loans – We can do purchase and refinance loans that roll the cost of minor and cosmetic repairs into the loan amount.
  5. Property Types – VA Loans can be used on 1-4 unit properties, primary residence only. They can also be used on VA approved condominiums and qualifying manufactured homes.

VA Loans are issued by federally qualified lenders and are guaranteed by the United States Veterans Administration.  VA Loans are available to military personnel and veterans, including Reservists and members of the National Guard. Surviving spouses may be eligible in specific circumstances.

VA Loan eligibility is determined using the Certificate of Eligibility (COE) document. We work directly with the VA on the buyer’s behalf to obtain this document. A buyer can take advantage of the VA loan program more than once!

 

Kentucky VA Mortgage Loan Guidelines for 2020

Complete List of VA Loan Benefits for Kentucky Veterans

• Eligible homebuyers are not required to have a down payment in most cases – typically cited as the greatest VA loan benefit. Conventional loans generally require a 5 percent down payment, and FHA loans require 3.5 percent.
No monthly mortgage insurance premiums or PMI to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.


• Limitation on buyer’s closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.


• Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types.


• No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.


Two refinance options. The VA loan program allows homeowners with existing VA loans the option to lower their monthly payment with a new interest rate. Eligible homeowners who financed their property
with a loan other than a VA loan can refinance into the VA loan program.

Second tier entitlement. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.


• An assumable mortgage, typically subject to VA and/or lender approval. You may be able to have someone take over your mortgage payment, which can be a big benefit in an environment of rising interest rates.


Foreclosure avoidance advocacy from the VA loan program. The VA has staff members who advocate on behalf of homeowners to find alternatives to foreclosure.


Contact us today for loan approval and let our 25 years of experience go to work for you. Credit scores down to 580. Call /text 502-905-3708 or click the link below to apply.

 

Kentucky VA Home Loan Guide
Kentucky VA Home Loan Guide

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
 

Text/call:      502-905-3708

fax:            502-327-9119
email:
          kentuckyloan@gmail.com