Wednesday, March 22, 2017

Friday, March 3, 2017

Kentucky VA Home Loans Credit Scores Requirements Needed for Loan Approval Consideration in 2017

  • No down payment required for Kentucky VA Loans
  •  Kentucky VA Loan Limits for no money down is normally $417,000, however, VA does not have a maximum loan limit as long as the Veteran can come up with 25% of the VA guarantee if the Veteran goes beyond the $417,000 ceiling
  • There are closing costs on all home purchases and refinances, however, on purchases, VA allows the home seller to give the home buyer up to a 4.0% sellers concession towards the home buyer’s closing costs. If the home buyer is short on closing costs or if the home seller is not willing to give a sellers concession, the Veteran can get a lender’s credit to cover part or all of the closing costs
  • There is no monthly  mortgage insurance premium on Kentucky VA Loans
  • Here are VA Credit Requirements:
    • VA does not have a mandatory minimum credit score requirement
    • VA lets the lender to set the minimum credit score requirement. Most lenders will want a 620 credit score nowadays. 
    • VA does not have a maximum debt to income ratio requirement. If you loan pre-approval shows a refer eligible, the max debt to income ratios are usually limited to 41% for the new house payment and your current bills on the credit report of your gross income. For example, lets say you make $3000 a month, and you have $400 in monthly bills on the credit report. Then your max house payment would be $830.00
    • 2 year waiting period to qualify for a VA mortgage loan after a Chapter 7 Bankruptcy, short sale, and recorded dates of foreclosure and/or deed in lieu of foreclosure
    • If you have deferred student loans that are deferred for at least 12 or more months, it will be exempt from from debt to income ratio calculations

Joel Lobb
Senior  Loan Officer

text or call my phone: (502) 905-3708
email me at
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 approval, nor 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, ( 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. Manufactured and mobile homes are not eligible as collateral.

Wednesday, March 1, 2017

VA Student Loans

 VA Student Loans
Did you know that VA has a new policy for calculating student loan payments?
Considering the Payment:
  • If the student loan repayments are to begin within 12 months of closing, the debt will be considered.
  • If the student loan payment is being deferred for a period longer than 12 months after closing, the debt does not need to be considered.
Calculating the Payment:
  • Calculate each loan at a rate of 5% of the outstanding balance then divide that by 12 months.
            Example: $25,000 x 5% = $1,250 divided by 12 months is $104.17 per month.
  • If the student loan payment reported on the Borrower’s credit report is greater than the calculated payment, then the credit report payment will be used.
  • If the payment reported on the credit report is less than the calculated amount, the lender must require a statement (dated within 60 days of closing)  from the student loan servicer that reflects the actual terms and payment information for each student loan.
  • If the student loan payment is in an Income Based Repayment Plan and the current payment is documented to continue for at least 12 months after closing, the lender may use the IBR amount. If the payment is not expected to continue for at least 12 months after closing, a monthly statement is required. If a statement is not available, the calculation of 5% of the balance, divided by 12 will be used.
Documentation for payments and 12 months continuance will be required

For more Information see VA Circular 26.17.02 dated 1/23/17