Wednesday, September 30, 2015

What are the benefits of a Kentucky VA mortgage loan?

Kentucky VA Mortgage Guidelines 

What are the benefits of a Kentucky VA mortgage loan?

  • Equal opportunity for all qualified Kentucky Veterans to obtain a VA loan
  • No down payment required*
  • No mortgage insurance**
  • One time VA funding fee can be included in the loan
  • Veterans receiving VA disability compensation are exempt from the VA funding fee
  • VA limits certain closing costs a Veteran can pay
  • Can be assumed by qualified persons
  • Minimum property requirements to help ensure the property is safe, sanitary & sound
  • VA staff dedicated to assisting Veterans who become delinquent on their loan

Who is eligible for a Kentucky  VA mortgage loan?

Generally, the following people are eligible:
  • Veterans who meet length of service requirements
  • Service members on active duty who have served a minimum period
  • Certain Reservists and National Guard members
  • Certain surviving spouses of deceased Veterans
Note: There are other groups of individuals who may be eligible. To determine your eligibility, check eBenefits at www.ebenefits.va.gov, or contact VA Eligibility Center at 1-888-768-2132.
Disabilities determined by VA to be related to your military service can lead to monthly non-taxable compensation, enrollment in the VA health care system, a 10-point hiring preference for federal employment and other important benefits. Ask your VA representative or Veterans Service Organization representative about Disability Compensation, Pension, Health Care, Caregiver Program, Career Services, Educational Assistance, Home Loan Guaranty, Insurance and/or Dependents and Survivors’ Benefits.

What are the key underwriting criterias for A Kentucky VA Mortgage Loan?

No maximum debt ratio; however lender must provide compensating factors if total debt ratio over 41%. Residual income may serve as a compensating factor to allow for a higher DTI.
No maximum loan amount; however, VA does limit its guaranty; Veterans can borrow up to $417,000 without a down payment in most of the country. Find out the limit in any county by visiting:www.benefits.va.gov/homeloans/.

Published residual income guidelines to ensure Veterans have the capacity to repay their obligations while accounting for all living expenses.
Complete VA credit guidelines are published at www.benefits.va.gov/warms/pam26_7.asp .

How do I get started on the a Kentucky VA mortgage loan 

VA provides policy, guidelines and oversight of the program. Lenders provide financing for eligible Veterans. The guaranty allows Veterans to obtain a competitive loan without a down payment. Lenders need a Certificate of Eligibility (COE) to prove your entitlement. Most Veterans can obtain the COE online through eBenefits (www.ebenefits.va.gov). Lenders also have the ability to request the COE on your behalf.

VA encourages prospective buyers to talk to several lenders to find one that fits their needs, knows the VA loan program, and offers competitive rates and terms.
Note: The VA appraisal is not intended to be an “inspection” of the property.
A Veteran should get expert advice from a qualified residential inspection service before legally committing to a purchase agreement. Veterans are also encouraged to have radon testing performed.

Can VA help if I’m having trouble paying my existing mortgage?

VA Loan Technicians are trained to help Veteran borrowers retain their homes and avoid foreclosure. Please call toll-free 1-877-827-3702 to speak to a VA Loan Technician.
For More Information, visit Our Web Site at www.benefits.va.gov/homeloans/.
Contact VA: www.va.gov or 1-800-827-1000

*No down payment unless required by the lender or the purchase price is more than the reasonable value of the property. Also, does not cover cash to close items. Not all borrowers will qualify
**Ask your mortgage consultant about monthly mortgage insurance alternatives.



Louisville Kentucky VA Home Loans

Louisville Kentucky VA Home Loans

Eligibility Frequently Asked Questions
Questions about who is eligible for a VA loan and reuse of eligibility for another VA loan.
PDF Documents - To read PDF documents, you need a PDF viewer. Links to viewer software can be found at this link.

Louisville Kentucky VA Home Loans
Q: How do I apply for a VA guaranteed loan?

A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.

Q: How do I get a Certificate of Eligibility?

A: Complete a
 VA Form 26-1880,  Request for a Certificate of Eligibility: You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it's best to provide such evidence.

Q: Can my lender get my Certificate of Eligibility for me?

A: Yes, it's called Web LGY. Most lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.

Q: What is acceptable proof of military service?

A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from regular active duty after January 1, 1950, a copy of DD Form 214, Certificate of Release or Discharge From Active Duty should be included with your VA Form 26-1880. If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included. A PHOTOCOPY OF DD214 WILL SUFFICE.....DO NOT SUBMIT AN ORIGINAL DOCUMENT.
Louisville Kentucky VA Home Loans


If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force National Guard, you may submit NGB Form 22, Report of Separation and Record of Service, or NGB Form 23, Retirement Points Accounting, or it’s equivalent. If you were discharged from the Selected Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used by the Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service.

If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing the length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.

Q: How can I obtain proof of military service?

A: Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.

Q: I have already obtained one VA loan. Can I get another one?

A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send a completed
 VA Form 26-1880 to our Winston-Salem Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.

Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?

A: In this case the veteran’s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.

Q: My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn’t my fault and waived the debt. Now I need a new VA loan but I am told that my used eligibility can not be restored. Why?

Or,

Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?

A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.

Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?

A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.

Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?

A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, contact our Winston-Salem Eligibility Center. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan. For more information, contact our Winston-Salem Eligibility Center.

[NOTE: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.]

Q: Are the children of a living or deceased veteran eligible for the home loan benefit?

A: No, the children of an eligible veteran are not eligible for the home loan benefit.


Louisville Kentucky VA Home Loans

Monday, September 28, 2015

Louisville home buyers have fewest choices in a - WDRB 41 Louisville News



In Louisville, the price gains have been distributed fairly evenly across neighborhoods, according to association data for the first six months of the year, compared to the same period in 2014.
Shelby County (median price $175,000), the Iroquois Park / Auburndale / Fairdale area ($105,900) and the portion of Oldham County south of I-71 ($249,500) saw the biggest price gains in that six-month period:
Still, it might take several more years of rising prices for people who bought before the downturn to feel they can sell for enough to be “made whole,” Parks said. She noted that the Louisville market didn’t turn around until the end of 2011.
Stapleton, the buyer of the Hikes Point house, owned a home years ago in eastern Kentucky and was a little “gun shy” about once again taking on the responsibility – lawn mowing, maintenance – that comes with owning.
But with the apartment market tightening, the rent on her two-bedroom unit near Oxmoor Center had “steadily gone up and up” to about $1,200 a month – whereas she expects her mortgage to be about $780 a month even with a low down-payment of 3.5 percent.
Not all renters can easily make that same transition back to owning.
Brian Bates, senior vice president at local mortgage lender Wilson & Muir Bank, said new regulations from federally backed mortgage buyer Fannie Mae, for example, generally require that borrowers be at least four years removed from “adverse credit” events like a foreclosure or bankruptcy to get a conventional loan.
“Those people aren’t ones to jump back in right away,” he said.








EDITION | Louisville home buyers have fewest choices in a - WDRB 41 Louisville News