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/



Understanding Your Kentucky VA Home Loan Benefits

Kentucky VA Cash-Out Refinances

Kentucky VA Cash-Out Refinances


Kentucky VA Cash-Out Refinances
Net Tangible Benefit (NTB)

  • NTB standards apply to all cash-out refinancing loans.
  • The NTB consists of the NTB Test, Loan Comparison Disclosure, and the Home Equity Disclosure

NTB Test for Cash-Outs

All cash-out refinancing loans must pass the NTB test. The requirement is met if the refinancing loan satisfies one of the following:
  • The new loan eliminates monthly mortgage insurance; or
  • The loan term of the new loan is less than the loan term of the loan being refinanced; or
  • The interest rate of the new loan is less than the interest rate of the loan being refinanced; or
  • The monthly (principal and interest) payment of the new loan is less than the monthly payment of the loan being refinanced; or
  • The monthly residual income is higher as a result of the new loan; or
  • The new loan is used to payoff the interim construction loan; or
  • The new loan LTV is equal to or less than 90 percent of the reasonable value of the home; or
  • Refinance of an adjustable-rate mortgage to a fixed rate mortgage

Loan Comparison Disclosure

  • The lender must disclose to the borrower a comparison of the new loan to the existing loan being refinanced.
  • VA requires lenders to generate two loan comparison disclosures
  • One within three (3) business days of the initial loan application
  • One at closing
  • The borrower must certify receipt of both disclosures
  • The Initial 3-Day Disclosure requires lenders to provide a reasonably accurate estimate within three (3) business days of the application
  • The Final Loan Closing Disclosure “shall be accurate with respect to the new loan info, while the initial loan info may be a ‘generally accurate representation’ of the existing loan.”
  • Contents of the Initial 3-Day and Closing Disclosures include: refinancing loan amount v. payoff amount of refinanced loan; interest rate of each loan; mortgage loan type of each loan; term of each loan;total payments on each loan; and LTV of new loan v. loan payoff to current value of loan being refinanced

Home Equity Disclosure

  • Discloses the amount of equity being withdrawn, with explanation how removal of equity may affect the sale or refinance of the home in the future.
  • For initial equity disclosure, the lender may use estimated loan payoff or unpaid principal balance and estimated current property value to determine equity being removed.
  • For final disclosure at closing, lender must use final payoff amount and reasonable value shown on the Notice of Value.

Net Tangible Benefit for IRRRL’s

  • INTEREST RATES
  • If the loan is fixed rate to fixed rate then the new loan rate must be at least 50 basis points better than the loan being refinanced.
  • If it is a fixed rate to ARM then the new rate must be at least 200 basis points better than the loan being refinanced.
  • DISCOUNT POINTS
  • The lower interest rate cannot be produced solely from discount points unless: Points are paid at closing;
- VA IRRRL’s with discount points require an exterior only appraisal to establish the LTV



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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




Kentucky VA Home Lender

Top 5 Benefits of the VA Home Loan Program in Kentucky

https://www.facebook.com/480689029160686/videos/511281519616706/



Top 5 Benefits of the VA Home Loan Program in Kentucky



Kentucky VA Mortgage Lender Guidelines for 2019










Kentucky VA Mortgage Lender Guide



1. WHAT KIND OF CREDIT SCORE DO YOU NEED TO GET APPROVED FOR A VA MORTGAGE LOAN IN KENTUCKY?

Most VA mortgage lenders in Kentucky are looking for at least a 620 credit score for a VA loan approval.  However, VA in their official published guidelines for credit scores says they don’t have a minimum credit.  What happens with VA Lenders they will create credit overlays to push out lower credit score borrowers because if they do too many VA loans that default, then they run the risk of getting shut out from VA from them insuring their loans.
FICO credit scores range from 300 to 850. Most borrowers are in the 600 to 700 ranges with very few in the 300 to 400 range and few limited 800 scores.
It pays to shop around with different VA lenders in Kentucky to see what their minimum credit score requirements are.

2. Who is eligible for a VA Mortgage loan in Kentucky?

Kentucky Veterans, active duty servicemembers, reservists, National Guard members, surviving spouses, and other individuals can earn eligibility for home loan benefits. You may qualify if you are:
  • Military veteran
  • Active duty servicemember
  • Reservist or National Guard member
  • Surviving spouse who did not remarry
  • Academy cadet or midshipman
  • National Oceanic and Atmospheric Administration (NOAA) officer
  • Public Health Service (PHS) Officer
In order to obtain a Kentucky VA loan, you’ll need a Certificate of Eligibility, which you can apply for online or we can get for you with your info. Usually comes back instantly, no waiting around like it use to be for it to come in the mail.

3. Can you get a Kentucky VA Mortgage loan more than once?

If you are deemed eligible for a Kentucky VA loan, the benefit is yours for life, and in some cases, it can be used multiple times at once. Many veterans use it repeatedly for their home financing needs. Use it for a starter home, then use it again when you’re ready for more space. THEN you can use it again to refinance your loan for a lower rate or get cash out of your home’s equity. It’s completely up to you.
When you use your VA COE again to buy another home, there is an increase in the funding fee from 2.15% to 3.3% for regular veteran and active duty if not on VA disability have a waiver of the VA funding fee.
You can have two active VA loans out at the same time. Call or email me and I can explain to you. Very detailed and complex but can be done if meets the test for VA guidelines for having two VA loans at once. 

KENTUCKY VETERANS ARE GUARANTEED VA MORTGAGE LOAN

 No one is guaranteed a loan. Even veterans with VA entitlement.

The word “guaranty” comes up a lot when talking about Kentucky VA loans. Well, I’m here to tell you that a “guaranty” and a “guarantee” are not the same thing. Many people assume when they see “VA loan guaranty” that they’re guaranteed a VA loan, and that’s simply not the case.
The VA loan guaranty refers to the amount of each VA loan that is backed by the government (usually 25%). If the loan defaults, the amount under guaranty is refunded to the lender by the government. So just because you see guaranty, doesn’t mean your loan is guaranteed to be approved.

HOW LONG DOES  VA APPRAISAL PROCESS?

Fact: The VA appraisal process can be rough if you’re pursuing a home that’s in rough shape. Otherwise, the VA appraisal process isn’t much different from the average Conventional appraisal.
VA loan appraisers use the VA’s “Minimum Property Requirement” guidelines to determine if a home is safe, structurally sound, and sanitary. If the home doesn’t meet their standards, the process can take a while. That’s why it’s important to choose your home wisely. A few of the MPRs include:
  • Plumbing and electrical systems must be safe and in good condition
  • Heating must be adequate
  • Roofing must be adequate
  • No leaks, excessive dampness, defective construction, or decay
  • No termites, destructive insects, fungus growth, or dry rot
Kentucky VA loans aren’t designed to fund fixer-uppers. The VA wants veterans and servicemembers to buy solid, move-in ready homes, not projects.  Also, since most VA borrowers are putting no money down, they don’t want to take the risk of borrower walking away with no equity in the home.

Kentucky VA Mortgage Lender Guidelines for 2019
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/
— 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.


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Kentucky VA Mortgage Requirements for Bankruptcy, Foreclosure, Collections and Student loans.


Requirements for a  Kentucky VA Home Loan





Bankruptcy VA Mortgage Loan Requirements

Chapter 7 : 2 years from discharge date

•Chapter 13: No seasoning required if discharged. If open requires court approval and 0x30 last 12 months to trustee.


Borrower must demonstrate re-established credit since dismissal from Bankruptcy.

Judgments VA Mortgage Loan Requirements


•Judgments must be paid or in a repayment plan for 12 months with a most recent 0x30x12 timely payments.

Student Loans VA Mortgage Loan Requirements

•Monthly payment does not need to be considered if the Veteran or borrower provides written evidence that the student loan debt will be deferred at least 12 months beyond the date of closing

•Use payment shown on credit report (unless credit report reflects $0 or no payment amount).
Use Balance x 5% / 12 for payment

Foreclosure and VA Mortgage Loan Requirements

•Foreclosure - 2 years removed from sale date of home


Collection Accounts and VA Mortgage Loan Requirements

•Collection and charge-offs are generally not required to be paid off, however follow Desktop Underwriting Findings through Fannie Mae  DU or Freddie Mac LP Findings automated underwriting systems if payoff is required.

•A letter of explanation is required for all collection/charge-off/judgment accounts.

•Collections and charge offs must be included in DTI at the amount on credit or 5% of balance if no payment shown.

•Borrowers with a history of collection/charge-off accounts should have re-established a 12 month satisfactory credit history.




 
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/
-- 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.