Kentucky VA Loan Guidelines and Compensating Factors for VA Loan Approval.

Kentucky VA Quick Tips for Purchase and Cash-Out Refinance Loan Approvals

Compensating Factors                 Are used to strengthen a manual underwrite Are used when borrower does not meet 120% of the residual income guideline Compensating factors include: excellent credit history, conservative use of consumer credit, minimal consumer debt, long term employment, significant liquid assets, sizable down payment, the existence of equity in refinancing loans, little or no increase in shelter expense, military benefits, satisfactory homeownership experience, high residual income, low DTI ratio, tax credit for child care, and tax benefits of home ownership

LESS-THAN-PERFECT CREDIT? WE GET IT.  FHA* & VA financing now allow for credit scores as low as 580 for purchase and refinance. Help more Veterans qualify with our Non-Traditional Credit Program! Share the highlights: Purchase Only up to 100% with conforming limits Available to Borrowers with No Credit Score or 1 Credit Score (Non-Traditional credit required) Max DTI 41% - higher ratios may be considered with compensating factors Residual Income and gift funds allowed Gift funds allowed (excluding reserves)