Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: How to get approved for a Kentucky VA Mortgage Loan?

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: How to get approved for a Kentucky VA Mortgage Loan?: Kentucky VA Mortgage Loan Approval Tips  Kentucky VA Loan Analysis In order to calculate the residual in...

Kentucky VA Home Loans Info

Kentucky VA Home Loans Info: 100% Financing Available available for first time use and subsequent use.





 Can use your Kentucky VA loan more than once. Seller can pay up to 4% (of the purchase price) for your closing costs

Must be an Active or Prior Service member (this includes Reservists)

In most cases no Letter of explanation for credit issues and no Verified Rental history is required if it
makes sense to VA underwriters

2 years removed from bankruptcy No minimum score but lenders will create minimum credit overlays.

Current Covid 19 enforcement has caused a lot VA lenders in Kentucky to raise the score to 620   
                                                                                                                                                                                                             
 No max loan amounts anymore, but must qualify based on debt to income ratio, entitlement amount, residual income and area you are buying.

Loan is submitted through Desktop Underwriting first, and depending on the recommendation from

the AUS or Automated Underwriting System, it will dedicate your condition to close the loan.

COVID-19, Kentucky VA Home Loan Benefits

VA Announces Special Relief for those Potentially Impacted by COVID-19

VA issued Circular 26-20-7: Special Relief for those Potentially Impacted by COVID-19 (Circular). Per the Circular, loan holders are encouraged to extend forbearance to borrowers in distress as a result of COVID-19. Servicers should work with impacted borrowers who are unable to make their mortgage payments to ensure they are evaluated for VA Loss Mitigation options. In addition, servicers are encouraged to suspend credit bureau reporting and to adopt policies that waive late charges for affected loans.

Special Relief for those Potentially Impacted by COVID-19

1. Purpose. The Department of Veterans Affairs (VA) is working with other federal partners to assess next steps in response to recent reports of cases of Coronavirus Disease 2019 (COVID-19) in the United States. To keep Veterans and stakeholders safe while continuing the mission of VA Home Loan Program, VA is providing the following information. Please note, VA is continuing with normal program operations and information will be shared as updates are made available regarding the VA Home Loan program.

2. Veterans. If you have an in-person appointment scheduled with your lender, servicer, appraiser, or VA staff and answer “yes” to any of the following questions, please call the point of contact before your scheduled appointment.
a. Are you having flu-like symptoms, such as fever, cough, or shortness of breath?
b. In the last 14 days, have you traveled to a high-risk area for transmission of COVID-19?
c. Have you been in close contact with someone confirmed to have COVID-19 or who is being evaluated for COVID-19?

In lieu of conducting a face-to-face meeting, VA will make every effort to conduct meetings by telephone. However, VA may have to postpone the meeting or Veterans may request to have a meeting postponed based on circumstances.

3. Lenders and Servicers. Lenders should have continuity of operation plans in place to support ongoing ability to conduct business operations in the event of an interruption to business operations and processes. Servicers may employ the following relief for Veterans impacted by COVID-19:

a. Forbearance Request. VA encourages holders of guaranteed loans to extend forbearance to borrowers in distress as a result of COVID-19. We understand the impact may be temporary, but it is still a hardship.

 Servicers should work with impacted borrowers who are unable to make their mortgage payments to ensure they are evaluated for VA Loss Mitigation options outlined in Chapter 5 of the VA Servicer Handbook M26-4, https://www.benefits.va.gov/WARMS/M26_4.asp. VA encourages the proper use of authorities granted in VA regulations to provide assistance in appropriate cases.

For example, Title 38, Code of Federal Regulations (CFR), section 36.4311 allows the reapplication of prepayments to cure or prevent a default. Also, 38 CFR 36.4315 allows the terms of any guaranteed loan to be modified without the prior approval of VA, provided conditions in the regulation are satisfied.

Circular 26-20-7 March 16, 2020


b. Late Charge Waivers. VA believes that many servicers plan to waive late charges on affected loans and encourages all servicers to adopt such a policy for any loans that may have been affected.

c. Credit and VA Reporting. In order to avoid damaging credit records of Veteran borrowers, servicers are encouraged to suspend credit bureau reporting on affected loans. Please contact the appropriate Regional Loan Center (RLC) with any questions.

4. Appraisers. Appraisers should continue to conduct business as outlined in Chapter 10 of the M26-
7, Lender’s Handbook, https://www.benefits.va.gov/WARMS/pam26_7.asp.

If you have an appointment scheduled and answer “yes” to any of the following questions, please contact the RLC of jurisdiction or the point of contact for the scheduled appointment to determine whether the appointment needs to be rescheduled or whether the assignment should be reassigned.

a. Are you having flu-like symptoms, such as fever, cough, or shortness of breath?
b. In the last 14 days, have you traveled to a high-risk area for transmission of COVID-19?
c. Have you been in close contact with someone confirmed to have COVID-19 or who is being evaluated for COVID-19?

The Centers for Disease Control and Prevention has advised the best way to prevent illness is to take preventative measures. When onsite, appraisers are encouraged to observe the following measures to help prevent the spread of respiratory diseases including the novel COVID-19:

a. Before and after exiting the home, use an alcohol-based hand sanitizer with at least 60 percent alcohol.
b. Avoid close contact with individuals who may be present in the home which includes no handshakes or fist bumps.
c. Avoid touching your eyes, nose, and mouth.
d. Cover your cough or sneeze with a tissue, then throw the tissue in the trash and immediately clean your hands with a hand sanitizer that contains at least 60 percent alcohol.

Please contact the RLC of jurisdiction if you have been impacted by COVID-19 and are unable to complete your appraisal assignments. The email addresses for each of the RLCs are available at: https://www.benefits.va.gov/HOMELOANS/contact_rlc_info.asp.

Benefits at a Glance at Kentucky VA Mortgage Loan

Kentucky VA Mortgage Loan 

Created to help more veterans buy their first homes at an affordable cost, the VA loan packs a lot of bang for the buck. From its flexible and generous lending requirements to its low interest rates and closing costs, VA loans are one of the most popular choices among first-time homebuyers with a military background. 

Perhaps the biggest advantages to a VA loan are the 100 percent financing (no down payment necessary) and no mortgage insurance requirement. Both of these benefits can save you big bucks now and hundreds of dollars over the life of the loan.

Benefits at a Glance at Kentucky VA Mortgage Loan

No down payment required – 100% financing
Flexible credit and qualifying guidelines – you don’t need to have perfect credit to qualify
Lower interest rates – typically well below most conventional loan options
No monthly mortgage insurance
Finance the funding fee – ability to roll the funding fee into your loan
Seller can pay up to 4% closing costs
Gift money can be used for closing costs and pre-paid items
No pre-payment penalty - sell or refinance anytime without paying a penalty
100% cash-out refinance, including the funding fee: Use your home’s value and pull cash out to pay off debt, make repairs to your home, remodel or spend otherwise.

What are the Qualifications for a Kentucky VA Home Loan?

10 facts about the Kentucky VA Home Loan program

1. No down payment, no mortgage insurance

These are perhaps the biggest advantages to a VA loan. You don’t need a down payment. None whatsoever. Most mortgage programs, such as FHA and conventional loans, require at least 3.5 percent to five percent down.That’s up to $12,500 on a $250,000 home purchase.
With a VA loan, you can buy immediately, rather than years of saving for a down payment. With a VA loan, you also avoid steep mortgage insurance fees. At 5 percent down, private mortgage insurance (PMI) costs $150 per month on a $250,000 home, according to PMI provider MGIC.
With a VA loan, this buyer could afford a home worth $30,000 more with the same monthly payment, simply be eliminating PMI. Using a VA loan saves you money upfront, and tremendously increases your buying power.

2. Use your benefit again and again

Your VA home loan benefit is not one-and-done. You can use it as many times as you want. Here’s how.
Assume you purchased a home with a VA loan. But now, you’ve outgrown the home and need something bigger. When you sell the home and pay off the VA loan completely, you can re-use your benefit to buy another home. Your entitlement is restored in full.
But that’s not the only way to re-use your benefit.
Eligible Veterans and Service persons can receive a one-time restoration when they pay off the VA loan, but keep the home. This scenario comes into play if you purchased the home long ago, and have paid off the loan. It also applies if you have refinanced the VA mortgage with a non-VA loan.
In these cases, you can keep the home, and enjoy the benefits of VA home buying one more time.

3. Your benefit never expires

Once you have earned eligibility for the VA home loan, it never goes away. Those who served 20, 30, even 50 years ago often wonder whether they can still buy a home today if they never used their benefit. If eligibility can be established, the answer is yes.
Eligibility is based on the length of time served, and the period in which you served. For instance, a U.S. Army Veteran with at least 90 days in service during the Vietnam era is likely eligible.
To check eligibility, first obtain your DD Form 214. With that document, a VA-approved lender can request your VA Certificate of Eligibility for you, or you can request it directly from VA’s eBenefits website. You may be eligible to buy a home using a VA home loan, even if you served long ago.

4. Surviving spouses may be eligible

More than 3,000 surviving spouses purchased a home with their fallen partner’s VA benefit in 2015. Un-remarried husbands and wives of Service-persons who were killed in action can buy a home with zero down payment and no mortgage insurance. Plus, the VA funding fee is waived.
There’s no way to repay the spouse of a fallen hero, but this benefit surely helps them move forward after tragedy.

5. VA Loan Rates Are Lower

According to loan software company Ellie Mae, VA loan rates are typically about 0.25% lower than those of conventional loans. The VA backs the mortgages, making them a lower risk for lenders. Those savings are passed on to Veterans.
Additionally, VA loans come with some of the lowest foreclosure rates of any loan type, further reducing risk for lenders. No surprise here, but Veterans and Service persons take home ownership seriously. These factors add up to lower rates and affordable payments for those who choose a VA loan.

6. VA loans are available from local lenders

The VA home loan is unlike most other VA benefits. This benefit is available from private companies, not the government itself. The Department of Veterans Affairs does not take applications, approve the loans, or issue funds. Private banks, credit unions, and mortgage companies do that.
The VA provides insurance to lenders. It’s officially called the VA guaranty. The VA assures the lender that it will be repaid if the Veteran can no longer make payments. In turn, lenders issue loans at superior terms. In short, a VA loan gives you the best of both worlds. You enjoy your benefit, but have the convenience and speed of working with your chosen lender.

7. Buy, refinance or tap into home equity

The VA home loan benefit is not just for buying homes. Sure, it provides unmatched home buying advantages, but you can also use it to refinance your existing mortgage, whether it’s a VA loan or not.
Homeowners with a VA loan can use the Interest Rate Reduction Refinancing Loan, or IRRRL, to easily drop their rate and payment without an appraisal, or even paystubs, W2s or bank statements. The VA streamline refinance, as it is commonly known, gives VA loan holders a faster, cheaper way to access lower refinance rates when rates fall.
Even homeowners without a VA loan can use a VA refinance. The VA cash-out loan is available to eligible Veterans who don’t have a VA loan currently. As its name suggests, a VA cash-out refinance can be used to turn your home’s equity into cash. You simply take out a bigger loan than what you currently owe. The difference is issued to you at closing.
The VA cash-out loan amount can be up to 100 percent of your home’s value in many cases. Use the proceeds for any purpose – home improvements, college tuition, or even a new car.Many homeowners today are dropping their rate and taking cash out simultaneously, accomplishing two goals at once.
But you don’t have to take out cash to use this VA loan option. You can also use it to pay off a non-VA loan. Eligible homeowners who pay mortgage insurance or are dealing with other undesirable loan characteristics should look into refinancing with a VA loan. It can eliminate PMI, get you into a stable fixed-rate loan, pay off a second mortgage, or simply reduce your rate to make homeownership more affordable.

8. Lenient guidelines for lower credit scores, bankruptcy, foreclosure

Unlike many loan programs, a lower credit score, bankruptcy or foreclosure does not disqualify you from a VA home loan.
Shop around at various lenders, because each will have its own stance on past credit issues. However, VA guidelines do not state a minimum credit score to qualify. This gives lenders leniency to approve loans with lower scores. In addition, VA considers your credit re-established when you have established two years of clean credit following a foreclosure or bankruptcy.
Many homeowners across the U.S., military and civilian, experience bankruptcies and foreclosures due to a loss of income, medical emergency or unforeseen event. Fortunately, these financial setbacks don’t permanently bar VA-eligible home buyers from ever owning again.
The exception, though, is a foreclosure involving a VA home loan. In this case, you may need to pay back the amount owed on the foreclosed VA loan to regain eligibility. But for most home buyers with past credit issues, a VA home loan could be their ticket to home ownership.

9. Funding fee waivers

VA typically charges a funding fee to defray the cost of the program and make home buying sustainable for future Veterans. The fee is between 0.50 percent and 3.3 percent of the loan amount, depending on service history and the loan type.
However, not everyone pays the VA funding fee. Disabled Veterans who are receiving compensation for a service-connected disability are exempt. Likewise, Veterans who are eligible for disability compensation, but are receiving retirement or active duty pay instead, are also exempt from the fee.

10. Buy a condo with a VA loan

You can buy many types of properties with a VA loan, including a single-family (free-standing) home, a home of up to four units, and even manufactured homes. But condominiums are commonly overlooked by VA home buyers.

Condominiums are ideal starter homes. Their price point is often lower than that of single-family homes. And, condos are often the only affordable option in many cities.
The VA maintains a list of approved condominium communities. Veterans can search by city, state, or even condominium name on VA’s condo search tool. It’s not a short list. For example, there are more than 2,400 approved condo communities in Washington State, about 1,000 in Texas, and a staggering 9,000 in California.
As a Veteran or Service-member, consider the array of home types when shopping for a home.

How to Get Your DD214 Form For A Kentucky VA Mortgage Loan?

Follow the steps below to submit a military records request.

From your signed-in homepage, click or tap on Correspondence/ Documentation. Then select Defense Personnel Records Information (DPRIS) from the drop-down menu.
Choose the Personnel File tab.
Select Request My Personnel File.
Fill out the form. In the Document Index section, check the boxes next to the document(s) you'd like to request.
Click or tap on the Create and Send Request button.

What types of records can I request with this tool?


You can request documents from your Official Military Personnel File to view and download.


You can request your:
DD214
DD215
Report of Separation
Other release papers


You can also request documents with information about your service, such as your:
Orders and endorsements
Performance reports
Awards and decorations (commendatory items)
Qualifications, licenses, and certificates
Security clearance

What happens after I request my military records?


You’ll receive an email letting you know we’re processing your request. You’ll receive a second email when your request is complete and your files are ready for you to view and download.


You can also check the status of your military records request by signing in to milConnect and going to the Personnel File tab within the Defense Personnel Records Information (DPRIS) section. This is also where you’ll view and download your files once they’re ready.

Are there other ways to get my military records?


Yes.


You can request your military records in any of these ways:
Mail or fax a Request Pertaining to Military Records (Standard Form SF 180) to the National Personnel Records Center (NPRC).
Download Form SF 180 (PDF)
Write a letter to the NPRC. Send it to:



1 Archives Drive

St. Louis, Missouri 63138
Visit the NPRC in person
Contact your state or county Veterans agency
Hire an independent researcher

How do I request someone else’s military records?

If you’re a family member planning a burial for a Veteran in a VA national cemetery


Call our National Cemetery Scheduling Office at 800-535-1117. We can help you get the Veteran’s DD214 or other discharge documents you may need.

Get more information about planning a buria
If you’re the next of kin of a Veteran who has passed away


You can request a copy of the Veteran’s military records in any of these ways:
Mail or fax a Request Pertaining to Military Records (Standard Form SF 180) to the National Personnel Records Center (NPRC).
Download Form SF 180 (PDF)
Write a letter to the NPRC. Send it to:



1 Archives Drive

St. Louis, Missouri 63138
Visit the NPRC in person
Contact your state or county Veterans agency
Hire an independent researcher


You may be considered the next of kin if you’re related to the Veteran in any of these ways:
Surviving spouse who hasn't remarried, or
Parent, or
Child, or
Sibling
If you’re not the Veteran’s next of kin


If the Veteran was discharged more than 62 years ago, you can order a copy of their military records. The National Archives opens all records to the public 62 years after discharge.

Learn how to access archived records


If the Veteran was discharged less than 62 years ago, you may be able to request limited information from their Military Personnel File.

Find out about general public access to military records



https://www.va.gov/records/get-military-service-records/

VA Home Loan Program: Eligibility

Fill out my form!

Kentucky VA Home Loan Frequently Asked Questions for Qualifying for a VA Mortgage loan?

Does a manufactured home qualify for a 30-year loan?

Yes. However, the manufactured home will have to be permanently installed on a foundation.
This includes removal of the tongue and wheels, and anchoring the manufactured home to a
masonry perimeter foundation wall with interior masonry mortared piers on concrete footings.
The home will also have to be taxed as real estate in the county in which it is set up.

Can a veteran build a home and finance it VA?

Yes. The veteran can hire a builder or act as his/her own general contractor.

Can a VA loan on a house in a Condominium or Planned Unit Development (PUD) be
obtained?

Yes. However, if there is a mandatory homeowner’s association fee to cover the amenities,
certain legal documents establishing the condominium association will have to be submitted to
VA for approval prior to guaranty. If HUD has already approved the condominium development,
then VA will accept HUD’s approval.
PUDs are no longer reviewed and approved by VA. This task is the lender’s responsibility.

Are lenders required to ask for “green cards” when one or both applicants may be noncitizens?

Presently, VA has no requirement for lenders to establish legal residency of a party who may not
be a citizen.

What documentation is needed when considering potential employment (for example, an
active duty person due to be released and planning to start employment)?

In cases where a person is relying on potential employment, the lender must obtain verification of
a valid offer of employment. All data pertinent to sound underwriting (procedures, date
employment will begin, earnings, etc.) must be included.

Can a lender grant a borrower some or all of the closing costs?

Yes. Some lenders have programs targeted at low to moderate-income borrowers that grant
closing costs to borrowers to enable the transaction to be completed. This is not considered a
seller’s concession and VA has no objections to this type of program



What is VA’s position on “trailing spouses”?

Trailing spouse issues should be treated on a case by case basis. For example, if the spouse of an
active duty member who gets transferred is a physician, it is reasonable to assume she or he will
be able to quickly generate employment income at the new location. However, most cases will
not be as obvious as this and will need to be looked at on their own merits.

If a reservist fails to complete six years in the Selected Reserves, but is later determined to
have incurred a service-connected disability, is home loan eligibility established?

No. Unless the individual is specifically discharged due to a service-connected disability,
eligibility is not established.

Is a veteran exempt from the funding fee if his/her compensation is being withheld to pay a
debt (overpayment, etc.)?

Yes. In cases like this, the veteran is considered to be in receipt of compensation. It is merely
being redirected temporarily to liquidate a receivable.

Is a veteran still exempt from the funding fee if recalled to active duty?

No. The veteran stops receiving disability compensation when called back to active duty. The
requirement for exemption from the funding fee is that the veteran is “in receipt” of disability
compensation. After discharged from the call-up, the veteran will again have to apply for
disability compensation.

Is a “General” discharge acceptable for a person establishing eligibility based on six years’
service in the Reserves/National Guard?

No. The law states the person must have received an “Honorable” discharge. This is different
from service in the “regular” military where a discharge or release only has to be under other than
dishonorable conditions.

In joint loan cases where the parties are not married and one wishes to convey his/her
interest to the other party, does the lender or VA process the assumption?

The lender, if they have automatic authority, must process these cases. If the parties had been
married and title was being transferred as a result of dissolution of marriage (i.e. divorce), lender
processing would not be allowed. In those cases, the parties have the option of applying directly
to VA for any desired release of liability.

Does VA still use maintenance and utility charts for each state?

No. The calculation for maintenance and utilities is now 14 cents a square foot, all inclusive,
nationwide.

Can a “Cash-Out” refinance loan, with a subordinated second mortgage exceed VA’s 90
percent loan limit?

Yes, as long as the VA “first” mortgage does not exceed 90 percent and the second lien holder
agrees to subordinate.

When can the borrower receive cash at a closing from an Interest Rate Reduction Refinance
Loan?

An IRRRL cannot be used to take equity out of the property or pay off debts, other than the VA
loan being refinanced. The general rule is that the borrower cannot receive cash proceeds from
the loan. However, the veteran may be reimbursed for energy efficient modifications made to the
home within 90 days of closing the IRRRL.

Is a new loan number required for an IRRRL?

Yes. Do not use the old VA case number. When ordering a number in TAS, select "requester"
then "assignment" then "loan number only". Make sure the new VA case number is higher than
the old VA case number.

Is a CAIVRS screening required for an IRRRL?

Yes. A CAIVRS screening is required for all VA guaranteed loans.

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

Text/call:      502-905-3708
email:          kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

Text/call 502-905-3708 kentuckyloan@gmail.com

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.

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)