Showing posts with label VA Loan Funding Fees. Show all posts
Showing posts with label VA Loan Funding Fees. Show all posts

KENTUCKY VA MORTGAGE QUALIFYING GUIDELINES





 




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

 








Benefits and Drawbacks of Kentucky VA Mortgage Loans

Kentucky VA Mortgage  Loans

Kentucky VA Mortgage Loan Qualifying Requirements



Why VA Loans?

First and foremost, VA loans put homeownership within reach of a wider population.
That’s because, while they’re issued and administered through a wide range of lending institutions, all VA mortgages are federally guaranteed.

Lenders consider them lower risk than other loans. That means that people with average or even below-average credit scores are more likely to be approved for a VA loan than a traditional loan.

If you have a high debt-to-income ratio or you’ve fallen behind on your credit card payments in the past, you may be eligible for a VA loan, even if you’ve been turned down for a private mortgage in the past.

What’s more, vets and active-duty soldiers can often purchase a loan with no down payment.

Military wages aren’t the most generous. In 2020, new service members earned as little as $19,000 per year, while the median salary in the US is nearly $50,000 per year.

Particularly for people who are just starting out in their military careers, it can be tough to amass enough savings to match the down payment requirements associated with traditional loans.

If you take out a private loan and put down less than 20% of your home purchase price, you’ll be required to pay for Private Mortgage Insurance (PMI) until you’ve established 20% equity in your home. That can add $100 or more to your monthly homeownership expenses.

The government stipulates that VA loan borrowers don’t have to take out PMI.
Finally, VA loan interest rates typically track below market averages. Again, that’s because lenders consider them less risky.

What can that mean in savings for you?

Here’s just one example. A 0.5% interest rate reduction on a $200,000 30-year mortgage can save you more than $19,000 in lifetime loan costs.

And that’s before you factor in PMI payments. The more you borrow, the more you benefit from a low interest rate.

The median purchase price of a US home in 2021 is over $400,000. So chances are, you could wind up saving more with a VA loan.

(Although there are many benefits, there are some disadvantages to a VA loan too. That’s why we partnered with Chris Birk of Veterans United to explain some added drawbacks that are associated with a VA loan. Courtesy of Realtor .com and YouTube. Posted on Sep 27, 2019.)


Avoid The Most Common VA Loan Mistakes

As a home buyer, the most serious mistake you can make, of course, is not investigating VA mortgages before taking out a loan.
You earned this important benefit with your service and you deserve to access it. In fact, you can access it again and again.
There is no limit on the number of VA loans you can take out in your lifetime.
So if you find you need to upsize or downsize your home or pull up stakes every couple of years—a common experience among active service members—you can take advantage of your VA loan benefit every time you buy a home.
For current homeowners who took out a traditional mortgage, not exploring the option of refinancing under the VA loan program can be another costly misstep.
Even if you took out a VA loan a few years ago, it’s smart to look into refinancing right now because mortgage interest rates have reached a near-historic low right now.
The VA makes it easy to refinance into a lower interest loan through its VA Interest Rate Reduction Loan (IRRRL) program.

How to Secure Your Best VA Loan Deal

While VA loan interest rates can be substantially lower than traditional mortgage rates, lenders offer their best interest rates to the most qualified buyers.
That’s true of any kind of loan. Before seeking a VA mortgage, do your best to make yourself as creditworthy as possible.
Lenders judge your creditworthiness largely on your credit score.

Before you begin shopping for a mortgage, download a free copy of your credit report and if your score is lower than 620, take a look at what you can do to bring it up.

Bring all of your credit accounts up to date as a first measure, but understand that late payments will affect your score for quite a few months, or even years.

You may be able to secure a lower interest rate if you keep your accounts current for a significant period before applying for a loan.

Some homebuyers have low credit scores simply because they haven’t amassed a long or varied enough credit history.

If that’s the case, you can likely raise your score by a few points by judiciously applying for small amounts of credit, such as you might be offered by Amazon, a retail store in your neighborhood, or a traditional VISA card or Mastercard.

Make small purchases and pay them off at the end of every billing cycle to establish the pattern of consistent debt repayment lenders look for.

Although the option of applying for a no-down payment loan is available through the VA program, you can also make yourself more creditworthy by putting down as large a down payment as you can afford.
Lenders prefer when they’re not the only ones invested in your home.

Be a Smart Shopper

Even among VA lenders, mortgage rates vary. It pays to shop around. If you belong to a credit union, you might start your comparison shopping there.

You may even want to join a credit union because, as not-for-profit institutions, they’re in business to serve their members and often offer lower interest rates than their commercial counterparts.
If you have an established relationship with a bank, see what kind of deal you can get there. Banks want as much of your business as they can get.

In addition, many online lenders source mortgages with multiple institutions and can be a great resource for researching the lowest rates.




New Kentucky VA Mortgage Funding Fee Percentages for 2020


Kentucky VA Funding Changes for 2020

Effective on all Kentucky VA Mortgage  loans closed on or after January 1, 2020
The VA Home Mortgage program has amended funding fee percentages for all Kentucky Veterans (including Regular Military, Reserves, and National Guard) for loans closed on or after January 1, 2020 and before January 1, 2022.
2020 Kentucky VA Funding Fee Table For Mortgage Loans
As indicated above, the funding fee will no longer be determined by Regular Military, Reserves or National Guard status. Therefore, based on the Kentucky Veteran’s individual scenario, the funding fee may increase or decrease on or after January 1, 2020.


The Kentucky VA funding fee you pay in 2020 will depend on your down payment amount and whether you’ve ever had a VA-backed loan before. If you haven’t, it’s a “first use” loan, and if you have, it’s a “subsequent use” loan. You can pay the fee upfront or roll the cost into the loan.
The fee for first-use, zero-down loans will be 2.3% of the loan amount in 2020, up from 2.15% for regular military in 2019. The fee for subsequent use loans will be 3.6% of the loan amount, up from the current 3.3%. These fees will stay in place for two years, return to current levels from 2022 to October 2029 and drop further after that.


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   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/ 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/
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/