Tag: va streamline

Kentucky VA Mortgage Loan Guide for Foreclosures, Bankruptcy, and short sales or deed in lieu.

Kentucky VA Mortgage Loan Guide for Foreclosures, Bankruptcy, and short sales or deed in lieu.

 

Foreclosure and Bankruptcy Guidelines For Kentucky VA Home Mortgage Loans in 2019 and 2020


Follows guidelines provided for bankruptcies filed under straight liquidation (Chapter 7)
The fact that a home loan foreclosure in Kentucky  (or deed-in-lieu or short sale in lieu of foreclosure) exists in a borrower(s) history does not in itself disqualify the VA borrower for a Kentucky VA  loan. Develop complete information on the facts and circumstances of the foreclosure
You may disregard a foreclosure finalized more than 2 years from the date of closing. If the foreclosure was finalized within the last 1 to 2 years from the date of closing, it is probably not possible to determine that the borrower(s) is a satisfactory credit risk unless both of the following requirements are met:The borrower (s) has obtained consumer items on credit subsequent to the foreclosure and has satisfactorily made the payments over a continued period, and the foreclosure was caused by circumstances beyond the control of the borrower (s) such as unemployment; prolonged strikes, medical bills not covered by insurance, and so on, and the circumstances are verified.

If a foreclosure, deed in lieu, or short sale process is in conjunction with a bankruptcy, use the latest date of either the discharge of the bankruptcy or transfer of title for the home to establish the beginning date of re-established credit. If there is a significant delay in the transfer of title, the lender should contact the RLC of jurisdiction for guidance.

For a deed in lieu or short sale, develop complete information on the facts and circumstances in which the borrowers) voluntarily surrendered the property. If the borrower’s payment history on the property was not affected before the short sale or deed in lieu and was voluntarily communicating with the servicer or holder, then a waiting period from the date transfer of the property may not be necessary.
If the foreclosure, deed and lieu or short sale was on a Kentucky VA-guaranteed loan, then a borrower may not have full entitlement available for the new Kentucky VA loan. Ensure that the borrower’s COE reflects sufficient entitlement to meet any secondary marketing requirements of the VA Mortgage Lender in Kentucky

 

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 Mortgage Pre-Approval Checklist

  • one full month’s worth of pay stubs
  • 2018 and 2017 W-2′s
  • 2018 and 2017 tax returns
  • Your  VA Certificate of Eligibility (we can help you get this if needed, just need your dd214) 
  • Last two months bank statements for all accounts
  •  
  • Link here to get your COE—–>>>>> https://www.benefits.va.gov/HOMELOANS/purchaseco_certificate.asp

Once I get the information above, I can usually get you pre-approved in one day, and get your loan closed in 30-45 days after you get an accepted offer on a home.

Your first house payment usually starts 30-60 days after you close.

Your loan pre-approval is usually good for 60 days.
I don’t need originals, copies are fine. You can fax or email  me the above documents,  or meet me face-to-face if you wish to make copies and go over your options.

Let me know your questions.

Thanks and look forward to helping you.

 

 

 

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

http://www.mylouisvillekentuckymortgage.com/

 

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Refinance Guidelines and Information for Kentucky VA Mortgage Loans.

va pic for blogh

 

 

Kentucky VA Mortgage Refinance Guidelines

  • Borrow up to 100% of the home’s value. Unlike other programs that only allow 80% or 85% of the home’s value.
  • No Income or Asset verification is required. We don’t need your paystubs, w-2’s tax info, or bank statements. Much easier qualifying.
  • No Appraisal is required (unless Discount is being charged to borrower – see below)—-VA does not require a new appraisal. So even if your home has not equity or went down in value, we can go off on old value when doing a rate and term with no cash back.
  • No Credit Qualifying. Meaning we don’t have to repull credit again and check your fico scores. Just verify your last 12 months mortgage history is on time.
  • VA Funding Fee is .50%, much less than the 2 or 3% you pay when you buy the home, If disabled, you will not have to pay the funding fee.
  • Can refinance an investment property as long as you can document it was formerly the borrower’s primary residence
  • At least 6 monthly payments must have been made on the original loan being refinanced; AND
  • The first payment due date of the new loan must be at least 210 days after the first payment due date of the original loan being refinanced
  • A copy of the Note from the previous loan being refinanced must be provided
  • An IRRRL refinancing a Fixed Rate Mortgage into another Fixed Rate Mortgage must result in a rate reduction of at least 0.5%
  • An IRRRL refinancing a Fixed Rate Mortgage into an Adjustable Rate Mortgage must result in a rate reduction of at least 2.0%
  • IRRRLs in which a Discount is being charged to the borrower will now require an Exterior-Only Appraisal to be ordered
  1. If the Discount being charged is 1% or less, the loan will be limited to 100% LTV based on the value of the Exterior-Only Appraisal
  2. If the Discount being charged is more than 1%, the loan will be limited to 90% LTV based on the value of the Exterior-Only Appraisal
  • Loan must current be guaranteed by VA and must be current
  • Closing costs must be recouped within 36 months
  • Proposed P&I payment must be less than current payment unless:
  1. Veteran refinancing ARM to Fixed
  2. Term of IRRL is shorter than existing loan as long as payment does not increase over 20%
  3. Energy efficiency improvements are included in the IRRL

 

Refinancing a Kentucky VA Loan

Kentucky VA loans may be used to replace an existing mortgage, called “refinancing.” A KY VA refinance may be used to reduce an existing interest rate, change loan terms or a combination of both. The most common reason to refinance is to lower the monthly payment. A borrower may take out a KY VA loan then later see that interest rates have fallen and are lower than an existing rate. By refinancing, the borrower can replace the old loan with a new one to obtain the lower rate and subsequent lower mortgage payment.

A refinance can also make sense when changing loan terms such as switching from an adjustable rate mortgage to a fixed rate or adjusting the term of the loan to save on interest charges.
The Streamline

The Interest Rate Reduction Refinance Loan, or IRRRL is commonly referred to as the Kentucky Mortgage Refinance VA “streamline” refinance program. This is a special VA loan to VA loan refinance that requires very little documentation to obtain an approval. Some of the features of the VA streamline are:

• No appraisal needed

• Income or employment is not verified

• No credit review

• Closing costs may be rolled into the loan amount

As long as you’re reducing your current mortgage payment, not taking any cash out or switching from an adjustable rate mortgage to a fixed rate loan, you may qualify for this unique program and you don’t have to use your existing Kentucky VA lender in order to benefit from the Kentucky VA streamline mortgage.
Cash Out VA loan Refinance

Cash out refinance loans allow the borrower to pull out equity in the home in the form of cash during the course of a refinance. While the VA doesn’t establish a maximum loan amount, most VA lenders do place limits on the loan based upon the current value of the property and the final loan amount. Lenders may limit any cash out loan to 80 or 90 percent of the property’s current value. If taking cash out of your home is needed and you have sufficient equity in your home, it may be better to obtain a home equity loan or refinance into a conventional mortgage.





http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
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

http://www.nmlsconsumeraccess.org/
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#57916 http://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.

Fill out my form!

 

KENTUCKY VA REFINANCE LOAN
QUESTIONS ABOUT A KENTUCKY VA MORTGAGE REFINANCE. CALL OR TEXT ME TODAY. I HAVE DONE OVER 200 VA LOANS IN MY CAREER AND A FORMER ARMY TANKER THAT HAS USED A VA LOAN FOR MY OWN FAMILY.

Kentucky Refinance Streamline Guidelines for an IRRL

Kentucky VA Streamline
Kentucky VA Streamline

 Kentucky VA IRRRL Refinance benefits:
No Income, No Assets, No Appraisal

Allowed on 2nd homes and Non-owner occupied proof veteran occupied the property at one time required Refinance of Existing VA loan up to $417,000 (loan amounts are based on VA worksheet)
No Appraisal, no income, and no asset documentation – including funds to close Existing Loan Term can be extended up to 30 years
Minimum 620 credit score required Reduced guarantee fee of .5%
No additional pricing adjustment for VA IRRRL transactions Term reduction allowed on VA IRRRL (payment cannot increase by more than 20%)

 
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

 CONFIDENT

Kentucky VA Loan Cash Out Refinance Guidelines for 2014

Kentucky VA Loan Cash Out Refinance Guidelines for 2014

Kentucky VA Cash Out Refinance:

  • Now up to 100% of the home’s value or LTV – Plus VA Funding Fee Financed
  • Minimum Credit Score of 680 Required –
  • Approve/Eligible DU AUS Findings
  • Max DTI 45.00% –
  • Must Meet Minimum VA Guarantee Requirements

Kentucky VA Loan Overview

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I have originated over 300 VA Home loans in Kentucky and I know how great they are for Kentucky Families; a home loan with zero down, at a very low 30 year fixed rate with no monthly mortgage insurance. I consider myself a VA Home loan expert from Louisville Kentucky and I would like to assist you in your next VA home loan in Kentucky. I have created a Kentucky VA home mortgage website for information and insights to the VA Home Loan NMLS #57916

502-905-3708 or email kentuckyloabn@gmail,.com  NMLS#57916
Deal with someone locally on your VA loan instead of a person behind a 1-800 number. Honest, straight-forward service right here in Kentucky.
Maximum LTV

Purchase: 100/100 Max LTV/CLTV

Refinance: 100/100 Max LTV/CLTV (VA Cash-Outs greater than 90% have additional guideline requirements)

FICO/Credit Score

A minimum of 1 credit score is required. A standard Tri-Merge Credit Report is generally required; however a Mortgage Only Credit Report will also be accepted for IRRRLs ONLY so long as it includes valid FICO scores.

Minimum Credit scores for VA loans (including IRRRLs) are:

  • Automated Approval: 580
  • Manual Underwriting: 560
DTI Ratio

Automated Approval: No maximum DTI

Manual Underwriting: Maximum 43% backend DTI

Appraisal

An NOV (Notice of Value) from VA is required.

Maximum Loan Amount

Individual county loan limits may differ. You can find the link to determine loan limits for the subject property county here.

The maximum potential loan amount for a purchase transaction with full entitlement is $1,094,625. Loan amounts up to $1,500,000 are allowed as long as the VA guaranty plus the veteran’s down payment and/or equity equal 25% of the lesser of the sales price or Notice of Value (NOV).

Under certain conditions (see below), Non-IRRRL refinance transactions are allowed up to 100/100 LTV/CLTV. Refinances not meeting these conditions are limited to a maximum 90/90 LTV/CLTV of the property value shown on the CRV or NOV plus the cost of any energy efficient improvements (up to $6,000) plus the VA Funding Fee.

For IRRRLs, Maximum loan amount is the existing VA loan balance plus the following

  • Allowable fees and charges, plus
  • The cost of energy efficiency improvements, and
  • The VA funding fee = .50.
Cash-Out Refinance Loans greater than 90% LTV

VA Cash-Out Refinance loans will now be offered with LTV/CLTV up to 100%. If the LTV or CLTV greater than 90%, the following additional requirements will apply

  • The cash-out loan may be paying off a current mortgage loan (VA or otherwise), a second (seasoned or unseasoned), and/or another non-mortgage debt.
  • Maximum cash in hand after all payoffs cannot be greater than $50,000
  • Minimum FICO 660
  • An additional adjustment of -0.5
  • The loan must have a DU Approve/Eligible (No manual underwrites allowed)
Entitlement

A minimum of 25% of the loan amount must consist of available guaranty. If less than 25% guaranty is indicated on the Loan Guaranty Certificate (LGC), a calculation worksheet must be enclosed indicating the calculations used to determine the full 25% guaranty.

The maximum guaranty is the lesser of the veteran’s available entitlement or the maximum potential guaranty amount detailed below:

Up to $45,000 50% of the loan amount
$45,001 – $56,250 $22,500
$56,251 – $144,000 40% of the loan amount with a maximum of $36,000
$144,001 – $417,000 25% of the loan amount with a maximum of $104,250
$417,001 – $1,500,000 25% of the loan amount with a maximum of $273,656

Note: the maximum guaranty for loan amounts > $417,000 varies depending upon the location of the property.

VA Funding Fees

All IRRRLs have a funding fee of 0.50. For other loans, see the table below

Purchase and Construction Loans
Type of Veteran Down Payment Percentage for First-Time Use Percentage for Subsequent Use
Regular Military 0 – 4.99%
5 – 9.99%
10% or more
2.15%
1.50%
1.25%
3.30%
1.50%
1.25%
Reserves/National Guard 0 – 4.99%
5 – 9.99%
10% or more
2.40%
1.75%
1.50%
3.30%
1.75%
1.50%
Refinance Loans
Type of Veteran Percentage for First-Time Use Percentage for Subsequent Use
Regular Military 2.15% 3.30%
Reserves/National Guard 2.40% 3.30%
Funding Fee Exemption

A veteran must establish any claim for exemption from the fee with documentation included in the loan file. The following are the only exceptions allowed:

  • 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 (regardless of whether such surviving spouses are veterans with their own entitlements and whether they are suing their own entitlements on the loan)
  • Veterans who are rated by the VA as eligible to receive compensation as a result of pre-discharge disability examination and rating.
VA Student Loans
  • Student Loans deferred at least 12 months may still be excluded
  • When repayment will begin within the next 12 months, calculate a 5% yearly payment. Then divide that by 12 to get the monthly payment.
    • If the reported payment on the credit report is higher than the above calculated payment, the payment on the credit report must be used.
    • A lower payment reported on the credit report can only be used if corroborated with an official statement from the student loan servicer(s) confirming the loan terms and payment information. This statement can be no more than 60 days old at the time of VA loan closing.
Credit Report and AUS Fee Requirement
  • The combined total of Credit Report Fees and AUS charges cannot exceed $100.
  • The only time a Veteran can be charged with both Credit Report Fees and AUS charges is on AUS “Refer” cases.
VA Short Sales

A borrower with a previous Short Sale will now be eligible without the standard waiting period if they meet all of the following

  • Borrower was current on all mortgage payments for the prior mortgage during the 12 months prior to the Short Sale
  • No 30 day lates on any installment loans during the 12 months prior to the Short Sale.
  • No late payments at all within the last 24 months
  • 660 FICO
  • Loan must receive DU approval
IRRRL QM Requirements

VA IRRRLs must meet the following requirements:

  • The loan being refinanced was originated at least 6 months prior to the IRRRL closing date,
  • At least 6 payments must have been made on the original loan,
  • The borrower has not been more than 30 days late on a payment in the past six months,
  • The recoupment period for all allowable fees and charges financed as part of the loan or paid at closing does not exceed 36 months,
  • The refinance does not increase the principal balance outstanding on the prior loan, except to the extent of fees and charges allowed by the VA,
  • Points and fees do not exceed 3% ,
  • regardless of loan amount—this applies even to lower-balance loans,
  • Loan must also comply with VA limitations on fees and charges,
  • The interest rate on the IRRRL is lower than the interest rate on the loan being refinanced (unless the borrower is refinancing from an adjustable rate loan to a fixed rate loan under VA guidelines),
  • The refinance is fully amortizing and there is no balloon payment,
  • The loan being refinanced is a loan that VA has already guaranteed, and
  • Both the loan being refinanced and the IRRRL meet all other VA requirements.

 

 

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
Company NMLS ID #1364
Text/call:      502-905-3708
fax:            502-327-9119
email:
          kentuckyloan@gmail.com
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

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 approvalnor 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).

Louisville Kentucky VA Approved Condos for Jefferson County KY 2013

Louisville Kentucky VA Approved Condos for Jefferson County KY 2012
 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* http://mylouisvillekentuckymortgage.com
Your search returned 87 records.
A   B   C   D   E   F   G   H   I   L   M   P   R   S   T   V   W   Y 
 
Condo Name ID Record Type
ANDERSON PARK CONDOMINIUM 000004 Condo
ARBOR CREEK CONDOMINIUMS H00212 Condo
ARBOR CREEK CONDOS II H00306 Condo
AUTUMN TRACE CONDOMINIUM H00282 Condo
BAXTER PLACE CONDOMINIUMS H00309 Condo
BRADFORD COMMONS CONDO H00319 Condo
BRADFORD COMMONS CONDOS 000001 Condo
BRITTANY POINTE CONDOMINI 005775 Condo
BROWNSBORO VILLAGE COURT H00398 Condo
CARRINGTON GREENE COURTYARD 000012 Condo
CHAMBERLAIN SQUARE CONDO H00614 Condo
COPPERSHIRE CONDOMINIUM 005613 Condo
COTTONWOOD CONDOMINIUM H00053 Condo
CREEKWOOD TERRACE H00095 Condo
CRESCENT CONDOS VAC028 Condo
CROSSINGS @ COOPER CHAPEL H00155 Condo
DARNELL MANOR CONDOMINIUM H00368 Condo
DONARD PARK CONDOMINIUMS 000003 Condo
DORSEY HILLS CONDOMINIUM H00199 Condo
DORSEY VILLAGE 005601 Condo
EAST HAMPTON H00693 Condo
EVERETT PLACE CONDOMINIUM 005724 Condo
EVERGREEN POINT CONDO H00637 Condo
FOREST PARK CONDOS H00096 Condo
FOX HOLLOW CONDOMINIUM H00634 Condo
GARDENS AT BAY RUN CONDO H00639 Condo
GLENVIEW EAST 005674 Condo
GRAYSTONE MANOR H00070 Condo
HARRODS LANDING CONDOMINI H00464 Condo
HAWTHORNE POINTE CONDOS H00134 Condo
HIGHWOOD H00211 Condo
HIKES PARK TOWNHOMES H00066 Condo
HITE AVENUE GARDENS 005801 Condo
INDIAN RIDGE CONDOMINIUMS H00358 Condo
LAKEVIEW VAC010 Condo
MAGNOLIA PLACE 005597 Condo
MANNER POINTE 000013 Condo
MERCANTILE GALLERY LOFTS 000015 Condo
MOSS CREEK CONDOMINIUM H00294 Condo
PARK CENTRAL VAC101 Condo
PARK LANE CONDOMINIUM H00179 Condo
PINNACLE GARDENS H00111 Condo
REGENCY THREE CONDOMINIUM 005892 Condo
RIVER POINTE PATIO HOMES CONDO 000017 Condo
SALEM SQUARE CONDOMINIUM H00067 Condo
SHELBY CROSSING CONDOMINI H00344 Condo
SHELBY CROSSING CONDOMINIUMS 000006 Condo
SOUTH HALL CONDOMINIUMS 005723 Condo
SPRING DRIVE CONDO 005656 Condo
SPRINGS OF GLENMARY H00217 Condo
SPRINGS OF GLENMARY VLLGE 005612 Condo
ST ANTHONY’S LANDING H00194 Condo
STONEHENGE CONDO 005602 Condo
SWAN POINTE CONDOMINIUMS H00586 Condo
THE CLIFF VIEW TERRACE CO H00587 Condo
THE COTTAGES @ MEADOWVIEW H00182 Condo
THE FOUNTAINS CONDOMINIUM H00171 Condo
THE GARDENS OF GLENMARY H00272 Condo
THE GARDENS OF MONTICELLO H00609 Condo
THE PARKVIEW CONDOMINIUMS H00258 Condo
THE VILLAGE @ WILDWOOD H00088 Condo
THE VILLAGE @INDIAN FALLS H00143 Condo
THE VILLAGE OF WHITE OAKS H00531 Condo
THE VILLAS OF STONY FARM H00288 Condo
THE WOODS OF CRESCENT HIL H00031 Condo
THE WOODS OF CRESCENT HIL H00030 Condo
TIMBERWOOD II 000005 Condo
TREIS CONDOMINIUMS H00058 Condo
VALHALLA VISTA CONDOMINIUMS 000024 Condo
VALLEY FARMS PATIO HOMES 000021 Condo
VILLAGE AT PRESTON CROSSI H00504 Condo
VILLAGE AT WILDWOOD H00125 Condo
WEMBERLY HILL GARDEN HOME VAC143 Condo
WESTPORT GARDENS 000008 Condo
WESTPORT RIDGE CONDO H00629 Condo
WINDSOR GATE CONDOMINIUM H00262 Condo
WISTERIA LANDING CONDO H00535 Condo
WOODMONT H00156 Condo
WOODRIDGE LAKE PATIO HMS H00092 Condo
WOODRIDGE LAKE TOWNHOMES H00093 Condo
WOODS OF ST. ANDREWS H00139 Condo
WOODSPOINTE VAC074 Condo
WORTHINGTON GLEN CONDOS H00162 Condo
WYNDEMERE H00213 Condo
WYSTERIA LANDING CONDOMIN H00351 Condo
YORKWOOD CONDO I VAC013 Condo
YORKWOOD CONDO II VAC016 Condo
 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.comKey Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

Louisville VA Streamline Refinance

Louisville VA Streamline Refinance

Louisville VA Guidelines– IRRRL

Interest Rate Reduction Refinancing Loans

An IRRRL is a Louisville VA-guaranteed loan made to refinance an existing Louisville VA-guaranteed loan, generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing Louisville VA loan.

The principal and interest payment on an IRRRL must be less than the principal and interest payment on the loan being refinanced unless one of the following exceptions applies:

o

The IRRRL is refinancing an ARM
o

Term of the IRRRRL is shorter than the term of the loan being refinanced unless, OR
o

Energy efficiency improvements are included in the IRRRL. Improvements must be completed within 90 days immediately preceding the date of the loan closing.
A significant increase in the veteran’s monthly payment may occur with any of the above exceptions, especially if combined with one of more of the following:

o

Financing of closing costs
o

Financing of up to two discount points
o

Financing of the funding fee and/or
o

Higher interest rate when an ARM is being refinanced.
It is the underwriter’s discretion to determine whether or not the increase in monthly PITI is acceptable.

General Guidelines for IRRRL

:
• Minimum credit score of 640

• Maximum loan amount is the existing VA loan balance plus the following: o Allowable fees and charges, plus

o

The cost of energy efficiency improvements, and
o

The VA funding fee = .50.
• The maximum loan term is the original term of the VA loan being refinanced plus ten years, but not to exceed 30 years.

• The borrower cannot pay off liens other than the existing VA loan from IRRRL proceeds. Any second lien-holder would have to agree to subordinate.

• All IRRRLs must contain either a conforming appraisal or a 2055 exterior (at minimum). The loan amount + funding fee must be supported by the value.

• Not eligible in the state of Illinois.

• IRRRLs must be current and have no 30-day or greater mortgage lates in the most recent 12 months. The following documentation is required to be in the loan file:

o Evidence the existing loan is current
o

If the loan is seasoned 12 months or more, evidence that the existing loan has not had any 30-day or greater mortgage lates in the past 12 months
o

If the loan is seasoned less than 12 months, evidence:  The existing loan has no 30-day or greater mortgage lates since the inception of the loan and

No 30-day or greater mortgage lates for any other first mortgage loans associated with the property and borrower(s) in the most recent 12 months.

•While the borrower may pay any reasonable amount of discount points in cash, only up to two discount points can be included in the loan amount.

•An IRRRL cannot be used to take equity out of the property or pay off debts, other than the VA loan being refinanced. Loan proceeds may only be applied to paying off the existing VA loan and to the costs of obtaining or closing the IRRRL. Therefore, the general rule is that the borrower cannot receive cash proceeds from the loan.

502-905-3708 or email us at kentuckyloan@gmail.com