KENTUCKY VA MORTGAGE LENDER APPROVAL REQUIREMENTS

Kentucky VA Mortgage Guidelines for Student Loan Payments

Clarification and New Policy for Student Loan Debts and Obligations

 1. Purpose. The purpose of this Circular is to clarify and explain new policy regarding
student loans for the underwriting of Department of Veterans Affairs (VA) guaranteed home
loans.

 2. Background. The policy in the Lender’s Handbook- VA Pamphlet 26-7, chapter 4, section 5,
paragraph G will now be titled Student Loans. The clarification will apply to deferred student
loans and the new policy will provide guidance for student loans in repayment or, to begin
repayment within 12 months of a VA loan closing. Student loans under certain repayment plan
types are described at studentaid.ed.gov. This policy applies to all student loan repayment types.

 3. How to Calculate a Student Loan Monthly Payment.

 a. If the Veteran or other borrower provides written evidence that the student loan debt will be
deferred at least 12 months beyond the date of closing, a monthly payment does not need to be
considered.
 b. If a student loan is in repayment or scheduled to begin within 12 months from the date of
VA loan closing, the lender must consider the anticipated monthly obligation in the loan
analysis and utilize the payment established in paragraph (1) or (2) below. Calculate each loan
at a rate of 5 percent of the outstanding balance divided by 12 months (example: $25,000
student loan balance x 5% = $1,250 divided by 12 months = $104.17 per month is the monthly
payment for debt ratio purposes).

 (1) The lender must use the payment(s) reported on the credit report for each student loan(s) if
the reported payment is greater than the threshold payment calculation above.
 (2) If the payment reported on the credit report is less than the threshold payment calculation
above, the loan file must contain a statement from the student loan servicer that reflects the
actual loan terms and payment information for each student loan(s). The statement(s) must be
dated within 60 days of VA loan closing and maybe an electronic copy from the student loan
servicer’s website or a printed statement provided by the student loan servicer. It is the
lender’s discretion as to whether the credit report should be supplemented with this information

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

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.

Veterans Administration (VA) Guaranteed Loans

 

Eligibility should  always be checked before counting on using a VA loan, as eligibility may depend

on length of service or duty status for specific home loan benefits. A VA loan is

desirable because it provides favorable terms such as:

• No down payment (but sales price can’t exceed the appraised value)

• VA rules limit the amount you can be charged for closing costs

• Closing costs may be paid by the seller

• There is no monthly mortgage insurance payment

It is important to note that Veterans may reuse the benefit, and don’t have to be

a first time buyer. 

VA loan borrowers may also qualify with credit blemishes or

lower credit scores. 

VA loans are even available to qualifying spouses of veterans,. Not all banks and mortgage lenders

offer VA insured loans, so they may not even tell you about them. Be sure to ask

any potential lender if they are licensed and approved to do VA loans.

In order to get you pre-approved for your max loan amount, I will need the following items from you. This is a free process and I will give you a copy of your credit report for free!

 

MORTGAGE PRE-APPROVAL CHECKLIST 

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·         Most recent 30 days of pay stub(s)

·         W-2s and 1099's if applicable  for most recent two years

·         1040 tax returns for last two years 

·         Most recent 60 days bank statements all pages

·         Most recent 401(k)/retirement statement if applicable

·          

Once I get the information above, I can usually get you pre-approved in one to two days, and get your loan closed in 30-45 days after you get an accepted offer on a home. Your first house payment usually starts 30-60 days after you close.

 Your loan pre-approval is usually good for 120 days.

 I don't need originals, copies are fine. You can fax or email  me the above documents,  or meet me face-to-face if you wish to make copies and go over your options.

 Let me know your questions. 

Thanks and look forward to helping you. 

 

 

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/

New Kentucky VA Loan Guidelines for 2021

New Kentucky VA Loan Guidelines for Entitlement 

•   As opposed to lending the money directly, the VA provides a financial guaranty on these loans
which are made by private companies. The guaranty is a type of insurance for  lenders (pledging to repay a percentage of the loan if the borrower defaults) which is typically
25% of the loan.
•   The guaranty is reflected in a dollar amount which is called “entitlement.” The borrower’s
amount of entitlement determines how much may be borrowed without a down payment.  This calculation  is determined during the origination process using a document called the Certificate of Eligibility
(COE).
•   There are two layers of entitlement:
$36,000 (basic entitlement) + $91,600 (secondary entitlement) = $127,600
(maximum entitlement in most of the country)
•   Since the VA guarantees 25% of the loan amount, borrowers can borrow up to 4 times their
entitlement which is now $510,400 in most of the country (1 unit).
•   In high cost areas of the country, qualified Veterans can take advantage of
even more entitlement (up to $765,600 for 1 unit).

Kentucky Entitlement, VA Guaranty & VA Loan Amounts

As discussed, published county loan limits are no longer a factor for Veterans
seeking a jumbo loan with full entitlement. So, for Veterans with full entitlement, the
maximum amount of guaranty for a loan above $144,000 is 25% of the loan amount,
regardless of the county loan limit.
•
However, the county loan limits and possible down payment requirements continue to
apply for those who have more than one active VA loan, only partial entitlement
available or those who have defaulted on a previous loan.
•
If the Certificate of Eligibility (COE) shows any unrestored entitlement or the loan
amount is less than $144,000, the regular calculation will still be used to determine if
a down payment is needed, the loan amount needs to be lowered, or if the
entitlement should be restored to receive the 25% guaranty.
•
For Veterans who have previously used entitlement and such entitlement has not
been restored, the maximum amount of guaranty is the lesser of 25% of the loan
amount OR the maximum amount of guaranty entitlement available.

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.

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 there is no max VA loan anymore beginning in 2020
• 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. 

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

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.

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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.

Kentucky VA Streamline Refinances

Kentucky VA Streamline Refinances

NO Appraisal Required!

Lower your Rate and Monthly Payment Minimum Middle Credit Score: 580 NO late mortgage payments in the last 12 months Maximum Loan Amount: $484,350.00 Available Loan Terms: Fixed 15, 20, 25 and 30 Years NO Loan to Value, as NO Appraisal is required Primary Residence Only NO Qualifying Ratios Must be refinancing an existing VA loan Call for full details...

Eligibility

Regular Military (Active or Veteran) Reserves and National Guard Meet Tangible Net Benefit Rules Call us to obtain your COE VA Funding Fee .50%, unless exempt

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.

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.

--

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/

VA loan limits to be lifted in 2020 Including Kentucky

VA loan limits to be lifted in 2020:

Last month, President Donald Trump signed a bill into law that allows the Department of Veterans Affairs to back loans that exceed the conforming loan limit, enabling Kentucky VA home buyers to borrow above the $484,350 limit set for most counties, without any down payment. A VA spokesperson clarified the rule and outlined other changes that will go into effect as a result of the bill.

Last month, President Donald Trump signed a bill into law that allows the Department of Veterans Affairs to back loans that exceed the conforming loan limit.

The bill, H.R. 299, enables home buyers using a VA loan to borrow above the 2019 limit of $484,350 for most counties, without any down payment. 

A VA spokesperson told HousingWire that the loan limit will be lifted for loans that are guaranteed or appraised on or after January 1, 2020, and that guidance for lenders would be coming ahead of this date, published on the VA home loan circular page of its website.

The VA also clarified other changes that will go into effect as a result of the bill.

In addition to alleviating limits for veterans looking to purchase a home, H.R. 299 temporarily increase rates for certain loans by 0.15-0.30%, the VA said.

The slight bump in loan fees is intended to help finance health care costs for veterans who are suffering the effects of Agent Orange exposure as a result of their service.

Additional changes to the VA’s loan guaranty program include the elimination of funding fee differences for borrowers who are veterans versus those who are members of the Reserve.

It also removes the loan limit for the Native American Direct Loan Program, exempts Purple Heart recipients from paying loan fees, and authorizes VA-designated appraisers to rely on third parties for appraisal-related information.

The bill’s passage comes after years of lobbying on behalf of numerous trade groups, including the National Association of Realtors, which teamed with other housing industry trade groups to ensure veterans’ health care benefits would be extended without a significant increase to VA loan fees.

Now that the bill has passed, it is expected to “fast-track” disability compensation for as many as 90,000 affected former service members, according to military.com.

The VA said it does not have any formal projections as to how the changes brought on by the bill will its home loan guaranty program.

 Kentucky VA Home Purchase Loan Guidelines with lenders

• Option for no down payment, zero down home loan
• No monthly mortgage insurance premium
• No credit score minimum but VA lenders will institute credit overlays for minimum scores with most being 620 middle score of your three fico scores from experian, transunion, and equifax. Some VA lenders we work will go down to 580 middle score of yoru three fico scores. Very few if any will go below this even though on paper VA states "no minimum credit score"
• No bankruptcies or foreclosure in the last two years
• Rental History not required with an Approved Eligible thru DU
• You can use your Kentucky VA loan Certificate of Eligibility more than once and have two VA loans out at the same time in some cases. 
• Seller or lender may contribute to veteran’s closing costs
• Termite report required on all VA loans
• No closing costs option available
• Close in as little as 30 days
• Free Mortgage Approvals for Kentucky Veterans and Active Duty soldiers

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/