Friday, May 31, 2019

Using Your Veterans Benefit to Buy a Home In Kentucky

Using Your Veterans Benefit to Buy a Home in Kentucky | 





Probably one of the most talked about GI benefits is the Kentucky VA Home Loan. You’ve probably heard of it, but have you ever thought of it using it? Learn what it is & how can it help you here.



Using Your Veterans Benefit To Buy A Home in Kentucky For Zero Down

May 31, 2019 06:00AM 
Kentucky VA Home Loan Guidelines
Those eligible for VA loans should at least look into taking advantage of this benefit
Probably one of the most talked about GI benefits is the VA Home Loan. You’ve probably heard of it, but have you ever thought of it using it? What is the benefit, how can it help you, and what’s the process?

Experience tells me that in our area, this is an under-utilized tool by many real estate agents and loan officers. Why? Because like anything having to do with the government, there are a few internal twists. But fear not—if you hire an experienced agent and have the right loan officer, you won’t even be aware of these.

What’s the Benefit? 
While there are other housing-related programs that will help assist in repairing, retaining, or adapting a personal home, we’re specifically referring to the VA home loan. This type of loan is available through private lenders to service members, veterans, and qualifying surviving spouses. In a nutshell, the VA stands behind the loan, guaranteeing a portion of it, and either eliminating the need for or in lieu of a 20% down payment, as well as costly private mortgage insurance. It can be used to buy, build, or refinance a primary residence.
    
How Can It Help You?

  • Limited or Zero Down payment for veterans
  • No Mortgage Insurance monthly  (there is a one-time funding fee)
  • Re-Usable & Assumable by other eligible VA Mortgage buyers  
  • No minimum credit score
  • Past Bankruptcies and Foreclosure over 2 years you can apply again
  • Can be used in any county of Kentucky with a max loan limit in 2019 of $484,500
  • No income limits on how much you can make 
  • can refinance up to 100% of the home's value if it passed the VA Net Tangible Worksheet  
  • Very low 30 year fixed rate loans when compared to conventional loans 
  • VA loans require termite inspection on all loans.
What’s the Process?
The first question to ask is, do you qualify? If the answer is yes:

  • Get financially pre-qualified by a lender that does VA backed loans, since not all banks do them, it is best to shop around and ask if the lender does a lot of VA loans in Kentucky 
  • Obtain your Certificate of Eligibility (COE). The lender can help you with this.
  • Find your home
  • Negotiate the terms of your transaction
  • Apply for your loan
  • Closing
Those eligible for Kentucky VA loans, should at least look into taking advantage of this benefit. 





http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

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/

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#57916 http://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.

--
Joel Lobb


 

Wednesday, May 15, 2019

Kentucky VA Home Loan Approval Requirements with Collections on Credit Report

Can you get Approved for a Kentucky VA Home Loan with Collections?
Kentucky VA Home Lenders with Bad Credit and Low Credit Scores





Collection accounts are accounts for a debt that have been submitted to a collection agency by the creditor generally due to nonpayment. Below are general tips and guidance on what DU will require when collection accounts are reporting on a borrower’s credit report.

Accounts that are reported as past due but not yet turned over to a collection agency must be brought current. These past due accounts are not considered collection accounts.

Kentucky Mortgage Requirements for Collections and VA Home Loan Approval 
  • Any collection account required by DU to be paid, must be paid prior to or at closing.
  • Isolated collection account do not necessarily have to be paid off for the loan approval.
  • Borrowers with a history of collection accounts should have reestablished satisfactory credit in order to be considered a satisfactory credit risk.
  • Lenders/underwriters should review the complete credit history and use sound judgment to determine if collection account pose a credit risk to the borrower’s ability to repay the loan.
  • If the collection account is listed on the credit report with a minimum payment, then the debt should be recognized at the minimum payment amount









 
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.

Tuesday, March 26, 2019

Kentucky VA Mortgage Refinance


Kentucky VA Mortgage Refinance Guidelines

  • At least 6 monthly payments must have been made on the original loan being refinanced; AND
  • The first payment due date of the new loan must be at least 210 days after the first payment due date of the original loan being refinanced
  • A copy of the Note from the previous loan being refinanced must be provided
  • An IRRRL refinancing a Fixed Rate Mortgage into another Fixed Rate Mortgage must result in a rate IRRL is also know as Interest Rate Reduction Loan in VA terms.
  • reduction of at least 0.5%
  • An IRRRL refinancing a Fixed Rate Mortgage into an Adjustable Rate Mortgage must result in a rate 
  • reduction of at least 2.0%
  • IRRRLs in which a Discount is being charged to the borrower will now require an Exterior-Only Appraisal to be ordered
  1. If the Discount being charged is 1% or less, the loan will be limited to 100% LTV based on the value of the Exterior-Only Appraisal
  2. If the Discount being charged is more than 1%, the loan will be limited to 90% LTV based on the value of the Exterior-Only Appraisal
  • Loan must current be guaranteed by VA and must be current
  • Closing costs must be recouped within 36 months
  • Proposed P&I payment must be less than current payment unless:
  1. Veteran refinancing ARM to Fixed
  2. Term of IRRRL is shorter than existing loan as long as payment does not increase over 20%
  3. Energy efficiency improvements are included in the IRRRL

Kentucky VA Mortgage Refinance Guidelines
VA Guaranteed by the Veterans Administration for qualified military veterans. No down payment if the property appraises for the sale price or greater. Credit underwriting is flexible. No Minimum credit score for VA loans, but lenders will create overlays to protect their selling ability to VA for delinquent mortgage loans sold to VA. A lot of VA lenders want a 620 credit score, with some going down to 580, and a few will do down below that but very difficult to get approved with a VA lender. No monthly mortgage insurance payments are required, however they're upfront funding fees that range anywhere from 2.1% to 3.3% based on previous use or first time use of VA eligibility to buy a home, or if you are disabled, you may have not to pay this at all.

Credit Requirements for a VA Mortgage Loan Approval in Kentucky






The VA Certificate of Eligibility will show if you have to pay a funding fee to VA or if you are exempt.

Kentucky VA Funding Fee for 2019 VA Mortgage Loans

Wednesday, March 20, 2019

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Latest FHA shift to mitigate risks may shut out so...

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Latest FHA shift to mitigate risks may shut out so...: Latest FHA shift to mitigate risks may shut out some homebuyers : Last week, the  Federal Housing Administration  took steps to mitigate...

Apply for a home loan by clicking the link below:



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Or call us at 502-905-3708 for your free application over the phone

Thursday, March 14, 2019

Kentucky VA Mortgage Guidelines For Approval in 2019

Kentucky Mortgage VA Underwriting Changes for 2019

Kentucky VA Mortgage Lending Guidelines

Kentucky VA has just revised Chapter 4 - Credit Underwriting and Chapter 11 - Appraisal Requirements (now named Appraisal Reports) of their underwriting guidelines. These changes will take effect for all Kentucky VA loans beginning May 23rd, 2019. 

Major changes are as follows, but the documents have been revised throughout so it is recommended that everyone review them HERE.
  • Borrowers using rental income from a non-subject property to qualify need to document a minimum 2 year rental history and 3 months reserves PITI for each rental property (excluding property being vacated and turned into a rental). When no mortgage exists on a rental property, 3 months reserves must still be provided that cover taxes, insurance, HOA dues, and any other fees documented for the property. These reserves cannot come from equity, gift funds, or any loan proceeds.
  • Rental income from boarders can now be used as qualifying income provided
    • A 2 year history of tax returns can be provided showing boarder income generated by the property; AND
    • The use of the property for boarder rental cannot impair the residential nature of the property and cannot exceed 25% of the property's total floor area
  • Alimony, child support, and maintenance require at least 3 years continuance to be considered effective income.
  • For payment plans after a judgment, VA will generally require 12 months of timely payments before credit is considered reestablished. A shorter repayment history may be considered if it can be determined that the borrower addressed the judgment responsibly and began a repayment plan immediately after it was filed. If borrower has missed payments within the last 12 months, they will be ineligible for financing even if the debt is paid in full.
  • For voluntary short sales or deeds-in-lieu where the borrower was current on their payments at the time the property was surrendered, no minimum derogatory credit waiting period will be required.
  • VA's list of required Appraisal Report Contents has been updated and now includes specific photographs required on the appraisal (refer to VA Chapter 11: Topic 3: Appraisal Report Contents for full list).
  • VA Chapter 11: Topic 4: Gross Living Area has been added to provide direction in determining the Gross Living Area of the property.
  • Other sections have been updated to include guideline changes from previous VA Circulars.

Louisville Kentucky VA Mortgage Lender

Wednesday, March 6, 2019

Kentucky VA loans skyrocket in popularity for first-time homebuyers

VA loans skyrocket in popularity for Kentucky first-time homebuyers: Servicemembers are far more likely to opt for a Department of Veterans Affairs mortgage than any other type of loan when buying their first home, a new report from the Consumer Financial Protection Bureau shows. Here's a look at how much more popular VA loans have become for servicemembers in the last decade.







Servicemembers are far more likely to opt for a Department of Veterans Affairs mortgage than any other type of loan when buying their first home, a new report from the Consumer Financial Protection Bureau shows.
The CFPB report, the first of its kind, looks at mortgages for first-time homebuying servicemembers, shows that in 2007, servicemembers buying their first home used VA loans approximately 30% of the time. By 2016, that figure had risen to 78%, meaning more than three out of four servicemembers bought their first home using a VA loan.
Conversely, with servicemembers increasingly preferring VA loans, their share of conventional mortgages fell precipitously (as seen in the graph below).
Home loan share among Kentucky VA borrowers
(Image courtesy of the CFPB. Click to enlarge.)








“The greater share of VA loans among servicemembers was part of a larger shift away from conventional to government-guaranteed mortgages between 2006 and 2009 for both servicemembers and non-servicemembers,” the CFPB noted in its report.
According to the CFPB, conventional mortgages made up approximately 60% of all loans among first-time homebuying servicemembers in 2006 and 2007, but this share fell all the way to 13% by 2016.
As for why the shift has taken place, the CFPB said that the features of the VA loan, namely “allowing a purchase with no down payment and without mortgage insurance and providing stronger loan-servicing protections than many other mortgages,” make the loan far more attractive than other options among first-time buyers.
Beyond the frequency at which servicemembers are buying their first houses with a VA loan, the median loan amount on those loans is also rising.
According to the CFPB report, the median servicemember first-time homebuyer VA loan amount increased in nominal dollars from $156,000 in 2006 to $212,000 in 2016, which closely tracks with the median value of conventional home loans taken out by non-servicemembers during that same time.
Additionally, early delinquency rates (the share of loans 60 days or more delinquent within one year of origination) have fallen for both prime and non-prime first-time homebuyers using VA loans.
As the CFPB notes, among non-prime borrowers, VA loan delinquency rates for servicemembers peaked in 2007 at approximately 7% before falling to just over 3% in 2016.
Delinquency rates for prime borrowers using VA loans also fell from 2006 through 2016 as the market improved.
To read the CFPB’s full report, click here.


This report uses the term “servicemember” as those who are training for, serving in, or have previously served in the uniformed services, as defined in 10 U.S.C. § 101(a)(5).

2 “[N]early 90% of VA-backed loans are made with no down payment.” U.S. Department of Veterans Affairs (2018). Available at https://www.va.gov/housing-assistance/home-loans/.

3 These protections range from VA-provided loan counseling and assistance working with loan servicers, to VA’s authority to force a loan servicing transfer or servicing the loan in-house.

4 The funding fee ranges from 1.25 to 3.3 percent for home purchase loans, depending on veteran status, down-payment size, and first or subsequent use of VA loan benefits. The fee is waived for applicants with a service-connected disability. Other details on VA home loan benefits, costs, and eligibility requirements are available at https://www.va.gov/housing-assistance/home-loans/.



5 This report defines “first-time homebuyer” as individuals who open a new home loan anytime between 2006 and 2016, and do not have a prior home loan tradeline on their credit report as of the first quarter of 2006. This is stricter than the definition used by many first-time homebuyer assistance programs, which include anyone who has not owned a home in the previous three years.



6 These observations are based on Home Mortgage Disclosure Act (HMDA) data. “Data Point: 2017 Mortgage Market Activity and Trends”, Consumer Financial Protection Bureau (HMDA Report, 2018), Figure 2. Available at https://www.consumerfinance.gov/data-research/research-reports/cfpb-data-point-mortgage-market-activity-and-trends/.