Kentucky VA Appraisal Changes for 2023 VA Mortgage Loans

Roanoke VA Regional Loan Center Fee and Timeliness Schedule Effective September 1, 2023


Fees and Timeliness for Origination Appraisals Effective for all Kentucky VA Origination appraisals, repair inspections, and compliance inspection assignments,


please see the following table

Most VA Appraisal done in Kentucky now will costs $600 and VA will require the appraiser a 10 day turn time on completing the VA appraisal report.

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

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: 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 Mortgage Guidelines For Approval

Kentucky Mortgage VA Underwriting

Major changes are as follows, but the documents have been revised throughout so it is recommended that everyone review them

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.

Kentucky VA Mortgage Guidance for Covid-19 in regards to Appraisals and Income.

Reference:
VA Circular 26-20-10, Lender Guidance for Borrowers Affected by COVID-19

VA Circular 26-20-11, Valuation Practices during COVID-19

Kentucky Mortgages for VA published guidance for lenders during the current market environment.:

Appraisal Guidance

VA’s temporary appraisal flexibilities announced in Circular 26-20-11. If appraisal flexibility is needed, when placing the appraisal order, the originator (broker or other) must make a public note in WebLGY and send an email to the appraiser once assigned that states that a Desktop Appraisal will be accepted by the lender. Originators should review and become familiar with the specific criteria to take advantage of the flexibilities.

Income Guidance

VA loans to take advantage of the alternative reverification forms as stated below only.

• Email from the employer’s work email address that identifies the name and title of the verifier and the borrower’s name and current employment status in lieu of the verbal OR
• YTD paystub from the pay period that immediately precedes the Note date OR
• Payroll deposit on the bank statement evidencing the payroll deposit from the pay period that immediately precedes the Note date