Showing posts with label va loan. Show all posts
Showing posts with label va loan. Show all posts

Kentucky VA Home Loans: No Down Payment Mortgages for Military Families in 2025

VA Loans in Kentucky: How to Buy a Home with No Down Payment in 2025

Last updated: August 4, 2025 • Author: Joel Lobb, Senior Loan Officer, EVO Mortgage (NMLS 57916 | Company ID 1738461)

Are you a veteran, active-duty service member, or surviving spouse in Kentucky looking to buy a home? A **VA loan** is one of the most powerful benefits available to you, allowing you to purchase a home with **no down payment** and exceptional terms.

What Is a VA Loan and Who Is Eligible in Kentucky?

A VA loan is a government-backed mortgage designed by the Department of Veterans Affairs (VA) to help service members and their families achieve homeownership. Unlike conventional mortgages, the VA guarantees a portion of the loan, which allows lenders to offer incredible benefits like 100% financing and no private mortgage insurance (PMI).

To be eligible, you must meet service requirements set by the VA. This includes:

  • Veterans and active-duty service members.
  • National Guard and Reserve members.
  • Surviving spouses of veterans who died from service-related causes.

The first step is to get your **Certificate of Eligibility (COE)**, which proves to lenders that you've met the service requirements. While you can request this directly from the VA.gov website, a local VA mortgage specialist can often pull it for you electronically in minutes.

Find out more about eligibility in our detailed Kentucky VA Loan Eligibility Guide.

VA Loan Benefits for Kentucky Military Families

When you choose a VA loan, you're tapping into a suite of benefits that are hard to beat. These are some of the key reasons why so many military families in Kentucky choose this financing option:

  • **100% Financing:** The most significant benefit is the ability to buy a home with **zero down payment**. This is a game-changer, especially in a competitive market.
  • **No PMI:** Unlike FHA or conventional loans with less than 20% down, VA loans don't require costly monthly private mortgage insurance.
  • **Competitive Rates:** VA loans often come with some of the lowest interest rates on the market, potentially saving you tens of thousands of dollars over the life of the loan.
  • **No Prepayment Penalties:** You can pay off your loan early without any fees.
  • **Seller Concessions:** The VA allows sellers to pay up to 4% of the home's value in concessions, which can be used to cover your closing costs.

VA Loan Requirements in Kentucky for 2025

While the VA guarantees the loan, the lender you work with will have specific underwriting guidelines to approve you. Here’s a breakdown of the key requirements you'll need to meet.

Get the full details on requirements in our guide to Kentucky Mortgage Requirements by Program.

Minimum Credit Score for VA Loans in KY

The VA itself doesn't set a minimum credit score, but lenders do. Most lenders have an "overlay" to mitigate risk. Here are the typical guidelines:

Credit Score Outlook Notes
580–619 Possible Often requires manual underwriting and compensating factors.
620+ Strong Best chance for automated approval and optimal rates.

Work History Requirements

Lenders prefer to see a stable work history, typically **two years** of consistent employment. Don't worry if you have a gap; a simple letter of explanation can often clear things up.

Income & DTI Guidelines

Lenders evaluate your income and debt-to-income ratio (**DTI**). While a DTI under 41% is ideal, the VA also uses a "residual income" calculation—the money left over each month after all your bills are paid—to determine your ability to afford the mortgage. This is a unique VA guideline that can sometimes allow for higher DTI ratios than other loan programs.

Second-Tier VA Loan Entitlement Explained

A common misconception is that you can only use your VA loan benefit once. This isn't true! Thanks to your **second-tier VA loan entitlement**, you can buy another home using a VA loan, even if you still have an existing VA-financed property. This is a powerful tool for military families who need to relocate (PCS) but don't want to sell their current home.

The amount of your second-tier entitlement depends on your loan size and location. A specialist can help you calculate your remaining entitlement and determine if a down payment is required for the second home.

Dive deeper into this topic in our dedicated guide on VA Second-Tier Entitlement in Kentucky.

Kentucky VA Loan Property Requirements

The VA loan is designed to help you buy a primary residence—it cannot be used for investment properties or vacation homes. All homes purchased with a VA loan must meet the VA's **Minimum Property Requirements (MPRs)**, which are evaluated by a VA-assigned appraiser.

  • The home must be safe, sanitary, and structurally sound.
  • In most Kentucky counties, a **termite inspection** is required.
  • The property must be your primary residence.
  • Condos must be on the VA-approved list.

Why Use a Local Kentucky VA Mortgage Specialist

While any lender can technically do a VA loan, working with a local specialist makes a huge difference. I am a Kentucky-based VA loan expert who understands the unique market and homebuying landscape here. This means:

  • **Faster Closings:** My local relationships with appraisers, title companies, and real estate agents can help streamline the process.
  • **Personalized Service:** I can provide hands-on help with the underwriting process, ensuring your file is structured correctly to meet VA and lender requirements.
  • **Local Expertise:** I understand property specifics in Kentucky, including the specific requirements for things like termite inspections.

Learn more about my experience and approach to helping veterans in Kentucky.

Get Pre-Approved for a VA Loan in Kentucky Today

Ready to get started? The first step is a free, no-obligation pre-approval. This simple process gives you a clear picture of what you can afford, and it shows sellers that you're a serious buyer.

As your Kentucky VA mortgage specialist, I'll walk you through the process from pre-approval to closing—fast, clear, and local. I'm available 7 days a week to answer your questions and get your application started.

Start Your VA Pre-Approval Today Call/Text Joel at (502) 905-3708 Email Joel

EVO Mortgage • NMLS 1738461 • Joel Lobb NMLS 57916. Equal Housing Lender. Programs and overlays subject to change; underwriting approval required.

Frequently Asked Questions About VA Loans in Kentucky

Can I buy a home with no money down using a VA loan in Kentucky?

Yes. Eligible veterans and service members can finance 100% of the purchase price with a VA loan, meaning you don't need a down payment, subject to loan limits and underwriting approval.

Does a VA loan require mortgage insurance?

No. A major benefit of a VA loan is that it does not require monthly private mortgage insurance (PMI) like conventional or FHA loans. Instead, there is a one-time VA Funding Fee, which can often be financed into the loan. Certain veterans are exempt from this fee.

How long does a VA loan take to close in Kentucky?

Typical VA loan closing timelines range from 30 to 45 days. However, a complete application file and strong communication between all parties can often shorten this process.

What if my credit score is under 620?

While most lenders prefer a 620+ score for automated approval, a lower score (such as 580) can still be approved through manual underwriting. This process relies on strong compensating factors, like a low DTI or high residual income.

What is second-tier entitlement?

Second-tier entitlement is a portion of your VA benefit that allows you to use your VA loan again, even if you currently have a VA-financed property. This is particularly useful for military families who need to relocate and want to turn their current home into a rental property.

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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Why Might You Consider A Kentucky VA Loan Over A K...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Why Might You Consider A Kentucky VA Loan Over A K...:   


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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.




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.
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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky VA Mortgage Loan Information

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky VA Mortgage Loan Information: Kentucky VA Mortgage Loans What are VA Home Loans? VA Loans provide military veterans and current service members a distinct advan...
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VA Guaranteed Loan What Is a VA Guaranteed Loan?

 VA Guaranteed  Loan What Is  a  VA Guaranteed Loan? 


A VA-guaranteed loan can be  used to: 
•  Buy a home as a  primary residence  (This  can be  either existing  or  new construction.)
 •  Refinance an existing loan Benefits  of  a  VA  Guaranteed Loan
 •  No down payment,  unless: o  It is  required by  the  lender 
•  The purchase price  is  more  than the  reasonable  value  of  the property 
•  No mortgage insurance
 • Reusable
 One-time VA funding  fee  (can be  included in  the loan) o  If you receive  VA  disability compensation,  you are  exempt  from  the  VA funding fee 
•  Minimum property requirements o  Ensure  the property  is safe,  sanitary  and sound 
•  VA staff  assistance if  you become  delinquent  on your loan
 •  Can be  assumed by  qualified persons
 •  Equal opportunity for all  qualified Veterans Who Is Eligible? In  general,  the  following  people  are  eligible:
 •  Veterans who meet service length requirements 
•  Service members on  active  duty  who  have  served a  minimum period 
•  Certain Reservists and National Guard members 
•  Certain surviving  spouses  of  deceased Veterans Apply  at  va.gov to  determine your eligibility  or call 877-827-3702 for more information. Key Underwriting Criteria 
•  There is  no  maximum debt  ratio.  However,  the  lender must  provide compensating factors if  the  total  debt ratio  is more  than 41  percent.
 •  There is  no  maximum loan amount.
   •  VA’s residual  income  guidelines  ensure  Veteran borrowers  can afford the  loan and determine how  much  money a  Veteran must  have  left  over after  all  debts  and living  expenses  are  considered. 
•  There is  no  minimum  credit score  requirement. Instead,  VA requires  a  lender to review the  entire loan profile. 

For more information,  see the complete VA credit guidelines  at www.benefits.va.gov/warms/pam26_7.asp. 

How Can You Start  the  Process? 

VA provides policy,  guidelines  and oversight  of  the  program.  Lenders  provide  financing for eligible  Veterans.    

The  guaranty  allows Veterans to  obtain a  without  down payments or  mortgage  insurance  premiums.  
 Veterans need to  obtain a  Certificate of  Eligibility  (COE) to  prove  entitlement.  You can obtain the  COE  online  through va.gov.  
 Lenders  also have  the  ability  to  request  the  COE on your  behalf. April 20 20 Updated 2You should  talk  to  several  lenders  to  find  the  one  that  fits  your  needs.  
They  should know the  VA  loan program. 

 They should also  offer  competitive  rates  and terms. Note:  The  VA appraisal  is  not  intended  to  be  an “inspection”  of  the  property. 

Before  committing to  a  purchase  agreement,  you should get  expert  advice. 

 Talk  to  a qualified residential  inspection service.

  You should also  have  radon testing  performed. 

Can VA  Help If  You’re Having Trouble  Making Payments? 

VA  loan technicians  may  be  able  to  help  you  retain your  home  and  avoid foreclosure. Call 877-827-3702 to  speak to  a  VA loan technician. 

 For more  information,  visit www.benefits.va.gov/homeloans/resources_payments.asp.


Uses for VA Home Loans?

VA Loans are intended to be used for the financing of a primary residences ONLY.
Occupancy by the spouse or dependent child satisfies the occupancy requirement if the
applicant is on active duty and not able to personally occupy the property.

Eligible Loan Purposes

• Purchase an existing or new construction single family detached home
• Purchase an existing or new construction condominium in a VA approved project
• Purchase an existing or new construction multi unit property (up to 4 units) ONLY if the applicant will be
occupying one of the properties
• Refinance an existing VA loan to lower the interest rate
• Refinance an existing mortgage or other debt secured by the property. The applicant must be occupying
the property.
• Cash out refinance to access the equity in a home occupied by the applicant.

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.

Credit Scores
Credit Report

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

General Credit Score Requirements

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.
Credit History

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

5 years from
discharge date

Bankruptcy
Chapter 13
Immediately after
discharge or
After 12 months of
payments***
5 years from
discharge date

Foreclosure*
2 years from
completion date

5 years from
completion date

Short Sale*
2 years from
completion date

5 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
These

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.

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.


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.
EXAMPLE

The rule of thumb is that your debt to income ratio should not exceed 50% of the usable, gross monthly
income. However, higher percentages can be approved.
In addition to the debt to income ratio requirements, VA also has residual income requirements. VA residual
income looks at how much income is available after all monthly liabilities, including tax withholdings,
utilities and child care, are accounted for.

Residual Income By Region
For loan amounts of $80,000 and above
Family
Size

Northeast Midwest South West
1 $450 $441 $441 $491
2 $755 $738 $738 $823
3 $909 $889 $889 $990
4 $1025 $1033 $1033 $1117
5 $1062 $1039 $1039 $1158
over 5 Add $80 for each additional member up to a family of

seven
2400/5000= 48%

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.
Qualifying income: $5000
New mortgage payment: $2000
All other obligations: $400

Monthly debt payments
The payments shown on
your credit report will be
used to qualify you. If the
payments are incorrect,
you will be asked to
provide proof of the correct
payment.

Co-signed loans
If you co-signed for someone on a loan and
that loan is showing on your credit report, the
payment will be included in the ratios unless
you are able to provide evidence that the other
person on that loan has been making the
monthly payments from an account that you
are NOT a co-owner on.

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.

Non-purchasing spouse
You should be aware that if you purchasing a home
in a community property state such as California
and are married, your spouse’s credit report will be
required. His/her debts will be included in the ratio
calculations even if he/she is not going to be on the
purchase or loan.


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

Not all items will apply to your situation

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

EMPLOYMENT/INCOME

F Pay stubs (LES) for the most recent 30 days available
F W-2's for the previous two years
F Federal tax returns for the previous two years. All pages and schedules must be included
F If self-employed, provide all pages and schedules of last two years’ business tax returns and
corporate K-1's
F Award letter for Social Security benefits, disability or Pension
F Proof of receipt of child support, alimony or any other non-employment source of income

ASSETS

F 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.
F If funds to close will come from a gift, complete the gift letter (will be provided to you) and the following:
F From the donor - bank statements showing the funds in the donor's account and a copy of the check
from the donor's account
F From you - a copy of the deposit slip showing the gift check deposited into your account
F If funds to close are from sale of home
F Estimated closing statement showing anticipated proceeds
F Copy of final closing statement and deposit slip showing proceeds deposited into bank account

PROPERTY
F Select your insurance agent and provide agent's name, address, and phone number
F If refinance, or if you will be retaining your current home or own other property
F Current mortgage statement
F Copy of insurance declaration page
F If you’re currently renting, provide your Landlord’s name, phone number and address.
F 12 months canceled rent checks will be necessary
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Benefits and Drawbacks of Kentucky VA Mortgage Loans

Kentucky VA Mortgage  Loans

Kentucky VA Mortgage Loan Qualifying Requirements



Why VA Loans?

First and foremost, VA loans put homeownership within reach of a wider population.
That’s because, while they’re issued and administered through a wide range of lending institutions, all VA mortgages are federally guaranteed.

Lenders consider them lower risk than other loans. That means that people with average or even below-average credit scores are more likely to be approved for a VA loan than a traditional loan.

If you have a high debt-to-income ratio or you’ve fallen behind on your credit card payments in the past, you may be eligible for a VA loan, even if you’ve been turned down for a private mortgage in the past.

What’s more, vets and active-duty soldiers can often purchase a loan with no down payment.

Military wages aren’t the most generous. In 2020, new service members earned as little as $19,000 per year, while the median salary in the US is nearly $50,000 per year.

Particularly for people who are just starting out in their military careers, it can be tough to amass enough savings to match the down payment requirements associated with traditional loans.

If you take out a private loan and put down less than 20% of your home purchase price, you’ll be required to pay for Private Mortgage Insurance (PMI) until you’ve established 20% equity in your home. That can add $100 or more to your monthly homeownership expenses.

The government stipulates that VA loan borrowers don’t have to take out PMI.
Finally, VA loan interest rates typically track below market averages. Again, that’s because lenders consider them less risky.

What can that mean in savings for you?

Here’s just one example. A 0.5% interest rate reduction on a $200,000 30-year mortgage can save you more than $19,000 in lifetime loan costs.

And that’s before you factor in PMI payments. The more you borrow, the more you benefit from a low interest rate.

The median purchase price of a US home in 2021 is over $400,000. So chances are, you could wind up saving more with a VA loan.

(Although there are many benefits, there are some disadvantages to a VA loan too. That’s why we partnered with Chris Birk of Veterans United to explain some added drawbacks that are associated with a VA loan. Courtesy of Realtor .com and YouTube. Posted on Sep 27, 2019.)


Avoid The Most Common VA Loan Mistakes

As a home buyer, the most serious mistake you can make, of course, is not investigating VA mortgages before taking out a loan.
You earned this important benefit with your service and you deserve to access it. In fact, you can access it again and again.
There is no limit on the number of VA loans you can take out in your lifetime.
So if you find you need to upsize or downsize your home or pull up stakes every couple of years—a common experience among active service members—you can take advantage of your VA loan benefit every time you buy a home.
For current homeowners who took out a traditional mortgage, not exploring the option of refinancing under the VA loan program can be another costly misstep.
Even if you took out a VA loan a few years ago, it’s smart to look into refinancing right now because mortgage interest rates have reached a near-historic low right now.
The VA makes it easy to refinance into a lower interest loan through its VA Interest Rate Reduction Loan (IRRRL) program.

How to Secure Your Best VA Loan Deal

While VA loan interest rates can be substantially lower than traditional mortgage rates, lenders offer their best interest rates to the most qualified buyers.
That’s true of any kind of loan. Before seeking a VA mortgage, do your best to make yourself as creditworthy as possible.
Lenders judge your creditworthiness largely on your credit score.

Before you begin shopping for a mortgage, download a free copy of your credit report and if your score is lower than 620, take a look at what you can do to bring it up.

Bring all of your credit accounts up to date as a first measure, but understand that late payments will affect your score for quite a few months, or even years.

You may be able to secure a lower interest rate if you keep your accounts current for a significant period before applying for a loan.

Some homebuyers have low credit scores simply because they haven’t amassed a long or varied enough credit history.

If that’s the case, you can likely raise your score by a few points by judiciously applying for small amounts of credit, such as you might be offered by Amazon, a retail store in your neighborhood, or a traditional VISA card or Mastercard.

Make small purchases and pay them off at the end of every billing cycle to establish the pattern of consistent debt repayment lenders look for.

Although the option of applying for a no-down payment loan is available through the VA program, you can also make yourself more creditworthy by putting down as large a down payment as you can afford.
Lenders prefer when they’re not the only ones invested in your home.

Be a Smart Shopper

Even among VA lenders, mortgage rates vary. It pays to shop around. If you belong to a credit union, you might start your comparison shopping there.

You may even want to join a credit union because, as not-for-profit institutions, they’re in business to serve their members and often offer lower interest rates than their commercial counterparts.
If you have an established relationship with a bank, see what kind of deal you can get there. Banks want as much of your business as they can get.

In addition, many online lenders source mortgages with multiple institutions and can be a great resource for researching the lowest rates.




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100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: Kentucky VA Home Loan Guidelines



.

Kentucky VA Home Loan Guidelines


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.


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.
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.


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.
EXAMPLE

The rule of thumb is that your debt to income ratio should not exceed 50% of the usable, gross monthly
income. However, higher percentages can be approved.
In addition to the debt to income ratio requirements, VA also has residual income requirements. VA residual
income looks at how much income is available after all monthly liabilities, including tax withholdings,
utilities and child care, are accounted for.


Residual Income By Region

For loan amounts of $80,000 and above
Family
Size

Northeast Midwest South West
1 $450 $441 $441 $491
2 $755 $738 $738 $823
3 $909 $889 $889 $990
4 $1025 $1033 $1033 $1117
5 $1062 $1039 $1039 $1158
over 5 Add $80 for each additional member up to a family of

seven
2400/5000= 48%

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.
Qualifying income: $5000
New mortgage payment: $2000
All other obligations: $400

Monthly debt payments
The payments shown on
your credit report will be
used to qualify you. If the
payments are incorrect,
you will be asked to
provide proof of the correct
payment.

Co-signed loans

If you co-signed for someone on a loan and
that loan is showing on your credit report, the
payment will be included in the ratios unless
you are able to provide evidence that the other
person on that loan has been making the
monthly payments from an account that you
are NOT a co-owner on.

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.


Non-purchasing spouse

You should be aware that if you purchasing a home
in a community property state such as California
and are married, your spouse’s credit report will be
required. His/her debts will be included in the ratio
calculations even if he/she is not going to be on the
purchase or loan.


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
F Copy of driver’s license or other photo I.D.
F Copy of divorce decree
F Copy of bankruptcy papers, including all schedules and discharge, and credit explanation letter for
reason for bankruptcy.
F Letter of explanation on any late payments, collections, charge off’s or derogatory credit
F Letter of explanation for all recent credit inquiries
F DD214 if not active duty or Statement of service if active duty
EMPLOYMENT/INCOME
F Pay stubs (LES) for the most recent 30 days available
F W-2's for the previous two years
F Federal tax returns for the previous two years. All pages and schedules must be included
F If self-employed, provide all pages and schedules of last two years’ business tax returns and
corporate K-1's
F Award letter for Social Security benefits, disability or Pension
F Proof of receipt of child support, alimony or any other non-employment source of income
ASSETS
F 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.
F If funds to close will come from a gift, complete the gift letter (will be provided to you) and the following:
F From the donor - bank statements showing the funds in the donor's account and a copy of the check
from the donor's account
F From you - a copy of the deposit slip showing the gift check deposited into your account
F If funds to close are from sale of home
F Estimated closing statement showing anticipated proceeds
F Copy of final closing statement and deposit slip showing proceeds deposited into bank account
PROPERTY
F Select your insurance agent and provide agent's name, address, and phone number
F If refinance, or if you will be retaining your current home or own other property
F Current mortgage statement
F Copy of insurance declaration page
F If you’re currently renting, provide your Landlord’s name, phone number and address.
F 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


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Veterans Administration (VA) Guaranteed Loans

Kentucky VA Home 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.

 

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

 

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