VA Refinance: Interest Rate Reduction Refinance Loan

President Lincoln famously said: “Honor to the soldier and sailor everywhere, who bravely bears his country’s cause. Honor, also, to the citizen who cares for his brother in the field and serves, as he best can, the same cause.”

We can never fully repay our Veterans, however, one of the ways our country tries to show its appreciation is through VA loans. These loans are a specialized class of home loans backed by the Department of Veterans Affairs. Qualified Veterans have access to features that include eliminating mortgage insurance requirements, debt-to-income ratios similar to FHA Loans and reduced or no down payment options. 

 

Can You Refinance a VA Loan?

Yes, VA-backed loan products are available for refinancing. These loans can offer quicker turnarounds because they are not dependent on the open appraisal market. They are also ordered through the VA which may save time compared to a standard loan.

Let’s take a closer look at a few ways that we are helping many Veterans save money on their monthly payments or putting their mortgage to work by providing them access to cash.

 

What is a VA IRRRL (Interest Rate Reduction Refinance Loan)?

The VA IRRRL is a mortgage refinance option for qualified VA borrowers that have an existing VA loan. The IRRRL allows Veterans to refinance to a new VA loan with a lower interest rate or convert a VA loan from an adjustable to a fixed rate.

It's also known as a “VA Streamline” because there’s often less paperwork involved resulting in quicker turnaround times.

 

• VA Streamline Refinance (IRRRL) Requirements

The IRRL is not available to Veterans with non-VA loans. However, if you have a VA loan and can certify that you live in the home you may be eligible for a VA IRRRL.

Lenders may also have guidelines and requirements regarding how long you've had your current mortgage.

• Specific guidelines and policies on credit scores, appraisals, loan-to-value ratio, and loan payment history can vary by lender. Additionally, part of the application process involves verifying how many payments have already been made as well as timeframes on recovering the costs and fees associated with the new loan.

• VA Streamline Refinance (IRRRL) Benefits

There are several advantages to doing an IRRRL aka VA Streamline Refinance. These include little to no out-of-pocket costs and in most cases no VA appraisal. The VA funding fee is lower on IRRRLs than for typical VA purchase and cash-out loans, and some Veterans choose to exercise their option to avoid out-of-pocket costs by rolling the closing costs and fees into the loan balance.

Unlike VA home purchase loans where you need to intend to occupy the property as your primary residence, that is not the case with a VA Streamline Refinance.

 

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What is a VA Cash-Out Refinance?

The VA Cash-Out refinance loan replaces your existing mortgage. It gives qualified veterans the opportunity to refinance their conventional or VA loan at a lower rate while turning the equity in your home into cash. Equity is the difference between what you owe on your mortgage and your home's current value.

A VA cash-out refinance encompasses both a VA Rate and Term Refi as well as a Cash-out Refi.

 

• VA Cash-Out Requirements

As with a standard VA loan, borrowers must meet credit, income, and appraisal guidelines. Minimum credit scores are also required though vary based on the lender, the loan amount, and other factors. Additionally, you must certify that you intend to occupy the property being refinanced.

Homeowners can finance their closing costs or VA Funding Fee provided they meet lender loan-to-value guidelines

• Benefits of a VA Cash-Out Refinance

Many Veterans use the extra cash for eliminating debt, making home improvements, paying for college, or even investing. Homeowners often choose the VA cash-out refinance option because it offers the ability to repay the loan over a longer period.

Kentucky VA Mortgage Loans Financing up to 100%

 

Purchase, Type 1 Cash-Out Refinance, and Interest Rate Reduction Refinance Loans (IRRRL) 620 minimum credit scores** Standard and high-balance loan limit of $1,500,000 15, 20, and 30-year fixed-rate terms DU or LP findings accepted  Maximum 41% debt-to-income ratio (DTI)*** for AUS Refer/downgrades, unless residual income is exceeded by 20% and underwriting determines that there are other compensating factor

These are general credit guidelines for VA loans.  They do not represent the only requirements but 

do provide a general overview

Credit Report

Credit Scores

In order to verify your credit history, your lender will obtain a credit report containing 

information as reported by all 3 of the major credit bureaus: Trans Union, Equifax and Experian.

Most people will have 3 credit scores but it is possible that you may have only 1 or two scores if 

you have limited credit history.

This report will also include information on any public records such as bankruptcies, judgments and 

tax liens.

Though VA does not have a set minimum credit score requirements, lenders will have a minimum credit score requirement.

General Credit Score Requirements

Minimum Credit Score

620

In addition to the credit scores, your actual credit history is also analyzed. Collection account 

may need to be paid off in order to close your loan

It is preferable that the most recent 12 months show satisfactory payments and no other derogatory 

information.

If you experienced a major derogatory credit event, there will be waiting periods that will have to 

be observed before you can be eligible to qualify for a loan.

Bankruptcy Chapter 7

2 years from discharge date

Bankruptcy Chapter 13

Immediately after discharge or

After 12 months of payments**

Foreclosure*

2 years from completion date

Short Sale*

2 years from completion date

* If the foreclosure or short sale was on a VA loan, you may not have full entitlement available 

for the new loan

*** Must obtain written permission from the bankruptcy court/trustee and provide proof of 

satisfactory payment history

Income and Employment

Minimum History of Employment

A minimum of 2 year history in the same industry/line of work is required in most instances but 

it’s not a universal rule.

Recent graduates can satisfy the two year requirement by providing proof of schooling with a degree 

for the line of work you are now employed in.

Active duty members do not need a two year history as long as the minimum service requirement for 

eligibility has been met.

Self employed borrowers must always have a two year history of self employment and must show a two  year history of filed tax returns to meet the 24 month requirement.

Retirement, Disability, alimony and child support income does not require a 2 year history but 

verification that it will continue for at least 3 years is required in order for it to be included.

Income Calculations

If you are salaried, your base income will be used to qualify you for the loan.

However, if you are an hourly employee with varied hours, more than likely, your income will be 

averaged

over an extended period such as 18 or 24 months depending on the situation.

Overtime, bonuses, commission and part time employment must have a 24 history in order to be 

included in the qualifying income. The income will be averaged out over 24 months. Verification of 

likelihood to continue will also be required.

Non taxable income can be grossed up to account for the non-taxable status.

ASSETS

No down payment does not mean no cash needed

As mentioned in the closing cost section, there are fees that will need to be paid as part of your 

home

purchase or refinance.

You must have sufficient funds to cover any closing costs or fees not paid by the

seller or lender credit.

VA does not require additional cash to cover a certain number or mortgage payments or unplanned 

expenses (cash reserves), however, your ability to accumulate liquid assets and the amount of 

assets currently available is taken into consideration in the overall credit worthiness analysis.

Allowable source of funds

Funds for your down payment, closing costs and other expenses can come from:

•    Checking/savings accounts

•    Investment accounts

•    Retirement account

Gift funds from a relative are an allowed source of funds to cover down payment and or closing 

costs.

The gift will need to be verified and paper trailed via bank statements and a gift letter will need 

to be signed

by your and the gift donor .

Funds from unsecured loans (signature loans, credit card advances) or funds that can not be 

documented are not acceptable source of funds.

Federal regulations require that all deposits into your account be documented.

In the instance of payroll deposits, nothing will need to be done if the deposit shows as a Direct 

Deposit from your employer.

All other deposits will need to be explained and documented.

Debt to Income Ratios

A debt to income ratios is the percentage of your total debt obligation, including the new 

estimated mortgage payment, all debts shown on your credit report, as well as alimony, child 

support etc, as compared to your gross qualifying income

Deferred student loans

If student loan repayments are scheduled to begin within 12 months of the date of loan closing, the 

anticipated monthly payment will be included.

If you are able to provide evidence that the loan(s) will be deferred for a period outside that 

time frame, the payment will not be included.

Alimony/child support You will be expected to truthfully declare that you pay alimony or child

support. You will be asked to provide your divorce decree and/or child support order to verify the 

amounts.

Documentation Checklist

The following is a general list of documentation required for a home loan application.

Not all items will apply to your situation

CREDIT / IDENTIFICATION/ ELIGIBILITY

🏭 Copy of driver’s license or other photo I.D.

🏭 Copy of divorce decree

🏭 Copy of bankruptcy papers, including all schedules and discharge, and credit 

explanation letter for reason for bankruptcy.

🏭 Letter of explanation on any late payments, collections, charge off’s or derogatory 

credit

🏭 Letter of explanation for all recent credit inquiries

🏭 DD214 if not active duty or Statement of service if active duty

EMPLOYMENT/INCOME

🏭 Pay stubs (LES) for the most recent 30 days available

🏭 W-2's for the previous two years

🏭 Federal tax returns for the previous two years. All pages and schedules must be 

included

🏭 If self-employed, provide all pages and schedules of last two years’ business tax 

returns and corporate K-1's

🏭 Award letter for Social Security benefits, disability or Pension

🏭 Proof of receipt of child support,  alimony or any other non-employment source of 

income

ASSETS

🏭 Provide ALL pages of most recent 2 months’ statements for all accounts; including all 

checking, savings, stocks, IRA, 401k, etc. The statements must show your name, account number and 

the name of the banking institution. Any non-payroll deposits will have to be explained and 

documented.

🏭 If funds to close will come from a gift, complete the gift letter (will be provided to 

you) and the following:

🏭 From the donor - bank statements showing the funds in the donor's account and a copy 

of the check from the donor's account

🏭 From you - a copy of the deposit slip showing the gift check deposited into your 

account

🏭 If funds to close are from sale of home

🏭 Estimated closing statement showing anticipated proceeds

🏭 Copy of final closing statement and deposit slip showing proceeds deposited into bank 

account

PROPERTY

🏭 Select your insurance agent and provide agent's name, address, and phone number

🏭 If refinance, or if you will be retaining your current home or own other property

🏭 Current mortgage statement

🏭 Copy of insurance declaration page

🏭 If you’re currently renting, provide your Landlord’s name, phone number and address.

🏭 12 months canceled rent checks will be necessary for private landlords. If you live 

with a family member, letter stating you live rent-free will be required

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 --  Joel Lobb Mortgage Loan Officer Individual NMLS ID #57916 American Mortgage Solutions, Inc. 10602 Timberwood Circle  Louisville, KY 40223 Company NMLS ID #1364 click here for directions to our office Text/call:      502-905-3708 fax:            502-327-9119 email:          kentuckyloan@gmail.com https://www.mylouisvillekentuckymortgage.com/ Joel Lobb Mortgage Loan Officer Individual NMLS ID #57916

Kentucky VA Loan Questions and Answers

Kentucky VA Loan Questions and Answers

Can I get a Kentucky VA loan if I have had a bankruptcy in the last few years? Kentucky VA credit standards state that a veteran with a bankruptcy less than 3 years ago would generally not be considered a satisfactory credit risk unless: the veteran or spouse has obtained items on credit since the bankruptcy and has paid the obligations in a satisfactory manner for a continued period; and the bankruptcy was caused by circumstances beyond the control of the borrower, which would have to be verified. A bankruptcy discharged 3 to 5 years ago must be given some consideration in the underwriting of the loan. A bankruptcy discharged more than 5 years ago may be disregarded. These are the minimum standards that mortgage companies must follow when making a VA loan. In 95% of the cases, companies make the decision to approve a loan without VA's prior approval. Keep in mind that mortgage companies also have money at risk in giving you a VA loan, so they may have stricter credit standards than those mandated by VA. How large of a loan can I get? If my guaranty entitlement is $36,000, does this mean I am limited to a $36,000 loan? Kentucky VA guaranteed loans are made by private lenders, such as banks, savings & loans. or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. To get a loan, a veteran must apply to a lender. If the loan is approved, KY  VA will guarantee a portion of it to the lender. This guaranty protects the lender against loss up to the amount guaranteed and allows a veteran to obtain favorable financing terms. There is no maximum KY VA loan but lenders will generally limit VA loans to $424,100. This is because lenders sell VA loans in the secondary market, which currently places a $424,100 limit on the loans. For loans up to this amount, it is usually possible for qualified veterans to obtain no down payment financing. A veteran's basic entitlement is $36,000 (or up to $89,912 for certain loans over $144,000). Lenders will generally loan up to 4 times a veteran's available entitlement without a down payment, provided the veteran is income and credit qualified and the property appraises for the asking price. Why do I have to pay a fee for a Kentucky VA home loan? Since I paid a fee for my first loan, why is there a larger fee for my second loan? The VA funding fee is required by law. The fee, currently 2.15 percent on no down payment loans, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is 3.30 percent. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment. The effect of the funding fee on a veteran's financial situation is minimized since the fee may be financed in the loan. May a veteran join with a non veteran who is not his or her spouse in obtaining a Kentucky VA loan? Yes, but the guaranty is based only on the Kentucky  veteran's portion of the loan. The guaranty cannot cover the non veteran's part of the loan. Consult mortgage companies to determine whether they would be willing to accept applications for joint loans of this type. Mortgage companies that are willing to make these types of loans will likely require a down payment to cover risk on the non guaranteed, non veteran's portion of the loan. Unlike other loans, the mortgage company must submit joint loans to VA for approval before they are made. Both incomes can be used to qualify for the loan. However, the veteran's income must be sufficient to repay at least that portion of the loan related to the veteran's interest in (portion of) the property and the non veteran's income adequate to cover the rest. How do I apply for a Kentucky VA guaranteed mortgage loan in Kentucky? You can apply for a Kentucky VA loan at any mortgage company that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the mortgage company that you are eligible for a VA loan. How do I get a Certificate of Eligibility for a KY VA Home Loan? A copy of the form can be obtained by calling your local VA office. Send your paperwork to any VA Regional Office. You must include a copy of your certificate of release or discharge from active duty with the proper forms. If you are on active duty, you must submit a statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing date of entry on your current active duty period and the duration of any time lost. I have already received one Kentucky  VA loan. Can I get another one? Yes, depending on the circumstances. If you have paid off your prior VA loan and disposed of the property, you can have your entitlement restored for additional use. To obtain restoration of entitlement, you must contact your local VA office and submit the proper form, along with evidence that the property has been disposed of and the loan repaid in full. This evidence can be in the form of a payoff statement from the former mortgage company, or a copy of the HUD-1 settlement statement completed in connection with the sale of the property. The application can be presented to any VA Regional Office. A veteran can also obtain restoration of entitlement, on a one time basis, if the prior VA loan has been paid in full but the property has not been sold. I have sold the property I obtained with my prior VA loan on an assumption. Why can't I get my entitlement restored to purchase a new home? In this case your entitlement can be restored only if the assumer is also an eligible veteran who is willing to substitute his or her entitlement for that of your original entitlement. Otherwise, you cannot have entitlement restored until the assumer has paid off the VA loan. My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the mortgage company. VA said it wasn't my fault and waived the debt. Now I need a new VA loan but am told that I am not eligible. Why not? or My prior loan was foreclosed on, or I gave a Deed in Lieu of Foreclosure, or VA paid a compromise claim. I was released from liability on the loan and/or the debt was waived. Can I get another VA loan? Although your debt was waived by VA, the government has still suffered a loss on the loan. The law does not permit your entitlement to be restored until the loss has been repaid in full. Do Kentucky  VA Loans Require a Minimum Credit Score? While it’s true that the VA does not require a minimum score Lenders typically impose their own minimums to ensure default rates aren’t high That means in the real world you might need a 620 or 640 FICO score Though some brave lenders will accept credit scores down to 500 Aside from not needing a down payment, there isn’t a minimum credit score requirement for VA loans. However, this doesn’t mean you can get a VA loan with a 400 FICO score. Or even a 500 FICO score in most cases. Many lenders that originate VA loans still impose their own minimum credit score, such as 620, 640, or higher. So it can be somewhat misleading to say they don’t have a minimum requirement. The VA is happy to say approve any loan you want credit score-wise, but will penalize lenders that exhibit high default rates. As such, VA lenders will take steps to ensure credit quality is in line with industry norms. That means you probably won’t be able to get a VA loan with a score below 620 in most cases, though there are some lenders will go into the mid-500s or sometimes 500. However, you should still do your best to stay on top of your credit if you want the lowest mortgage rate possible, regardless of which loan program you choose and whether you can get approved with a lower score. Sure, you might be approved, but it could cost you big over the years in significantly higher interest costs. Why not take the time to address your credit before applying for a home loan? Benefits and Advantages of Kentucky VA Loans No down payment required Low closing costs Low mortgage rates High loan limits Low credit score requirements No mortgage insurance VA loans come with a number of benefits and advantages that can make them a solid choice above conventional options.  Let’s take a look at some common Q&A. Do VA loans require a down payment? No. Perhaps the biggest advantage is the lack of a down payment requirement, which was previously mentioned. You can get VA mortgages for 100% LTV. Do VA loans require private mortgage insurance? Finally, VA loans do not require you to pay mortgage insurance, private or otherwise, which can obviously increase the cost of the monthly mortgage payments and the overall cost of your mortgage. However, the VA does collect a funding fee (unless you’re exempt), which insures your loan against default and protects the originating lender. So in a sense you’re still paying insurance for the loan. The good news is it can be paid at closing or rolled into the loan amount. Do VA loans allow co-signers? Yes, but it depends on the situation. If the co-signer is your spouse or a veteran, there are no special requirements. But if the co-borrower is not your spouse or a member of the military, a down payment of 12.5% may be needed (this is calculated by using half of the 25% VA guaranty). Do VA loans cover manufactured homes? This always seems to be a popular mortgage question, regardless of loan type. The short answer is yes, you can use a VA loan to buy a manufactured home and/or lot.  However, the trick is finding a lender out there willing to provide VA financing for a manufactured home. So it’s a yes according to VA eligibility, but a maybe in terms of finding a lender willing to extend the loan. In short, it might require a bit more legwork to track down someone willing to offer the financing. Do VA loans require an appraisal? If purchasing a home with a VA loan, an appraisal will be required. This is for your protection too to ensure the home is worth what you’ve agreed to pay for it. An appraisal is also required if you’re attempting to pull cash out of your home. Conversely, if you’re simply looking to reduce your mortgage rate via an IRRRL, no appraisal is required. Do VA loans require an escrow account? The VA does not require lenders to maintain escrow accounts, though most impose them to ensure borrowers have the necessary funds to pay hazard insurance and property taxes in a timely manner. In other words, the VA doesn’t explicitly require escrow accounts, but the lender you ultimately work with probably will, so there’s not much way around it. Additionally, there is typically a fee to waive escrows, so it might be cheaper just to escrow. Do VA loans require reserves? No, VA loans do not require reserves, which is another plus.  However, if the property being financed is a multi-unit property and you’re using rental income to qualify, six months PITI will be required for reserves. Additionally, those with non-traditional or insufficient credit may be required to provide reserves. Do VA loans have prepayment penalties? No again. So you don’t have to worry about being penalized for paying off your loan early or refinancing it away from the VA. In summary, if you feel you meet the eligibility requirements for a VA loan, be sure to include this loan in your mortgage search. You may find that another type of home loan is more beneficial, but you should compare all options to be absolutely certain. 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 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.

(KHC) has $3 million available in MRB, Special Funding, for active or non-active duty veterans at a 2 percent interest rate, fixed for 30 years.

Kentucky Housing Corporation (KHC) has $3 million available in MRB, Special Funding, for active or non-active duty veterans at a 2 percent interest rate, fixed for 30 years. This special funding program is available on a first-come, first-served basis.

This program is targeted to:

• Households whose gross annual income does not exceed $40,000.
• An existing or new construction property (purchase price limit $130,000).
• 620 minimum credit score.
• FHA, VA, or RHS first mortgage options.
• Households that include active / non-active duty veterans or other persons receiving VA benefits.
  
  Documentation may include but not limited to:
• Leave and Earnings Statement (LES)
• DD214 - Discharge from Active Duty
• VA Award Letter

• Must meet insuring agency guidelines.
• Available statewide.
• Both Regular and Affordable DAP are available.

As of Wednesday, September 20, 2017, KHC still has $184,500 available in Affordable Closing Costs Funds.

Only Homebuyers obtaining a KHC first mortgage are eligible for DAP. All DAPS take a lien

position & require input into LP/DU as subordinate financing. DAP funds can never be used to

pay for repairs. Once you have determined the loan type it’s time to see which of the following

KHC Down payment Assistance Programs (DAP) your borrower is eligible for. Follow the easy

steps below….

1. Check to see the applicant(s) income falls below the Affordable DAP Limits:

If yes then the borrower qualifies for the Affordable DAP up to $4,500. Affordable DAP

is amortized over 10 years at 1%. Borrower must qualify with second mortgage payment.

In addition, if the borrower is financing their first mortgage through a conventional loan,

the borrower qualifies for a $1,500 Affordable Closing Cost Grant. There is no lien or

monthly repayment since it is a grant. If borrower is not under the Affordable DAP

income limits, then proceed to Regular DAP.

2. Check to see if the applicant(s) income falls below the Secondary Market Limits.

If yes the borrower is eligible for Regular DAP up to $6,000. Regular DAP is amortized

over 10 years at 5.50%. Borrower must qualify with second mortgage payment

if you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

Text or call phone: (502) 905-3708

email me at kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

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 views of my employer. Not all products or services mentioned on this site may fit all people

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Posted By Blogger to Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage at 5/01/2017 08:02:00 AM