Kentucky VA Mortgage Loans Financing up to 100%

 


Kentucky VA Mortgage Loans Financing up to 100%
Purchase, Type 1 Cash-Out Refinance, and Interest Rate Reduction Refinance Loans (IRRRL)
  • 620 minimum credit scores**
  • Standard and high-balance loan limit of $1,500,000
  • 15, 20, and 30-year fixed-rate terms
  • DU or LP findings accepted 
  • Maximum 41% debt-to-income ratio (DTI)*** for AUS Refer/downgrades, unless residual income is exceeded by 20% and underwriting determines that there are other compensating factor
These are general credit guidelines for VA loans.  They do not represent the only requirements but 
do provide a general overview

Credit Report

Credit Scores



In order to verify your credit history, your lender will obtain a credit report containing 
information as reported by all 3 of the major credit bureaus: Trans Union, Equifax and Experian.

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

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

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

General Credit Score Requirements

Minimum Credit Score
620

In addition to the credit scores, your actual credit history is also analyzed. Collection account 
may need to be paid off in order to close your loan
It is preferable that the most recent 12 months show satisfactory payments and no other derogatory 
information.

If you experienced a major derogatory credit event, there will be waiting periods that will have to 
be observed before you can be eligible to qualify for a loan.


Bankruptcy Chapter 7

2 years from discharge date


Bankruptcy Chapter 13

Immediately after discharge or
After 12 months of payments**

Foreclosure*


2 years from completion date



Short Sale*


2 years from completion date


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

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


Income and Employment

Minimum History of Employment


A minimum of 2 year history in the same industry/line of work is required in most instances but 
it’s not a universal rule.

Recent graduates can satisfy the two year requirement by providing proof of schooling with a degree 
for the line of work you are now employed in.

Active duty members do not need a two year history as long as the minimum service requirement for 
eligibility has been met.

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

Retirement, Disability, alimony and child support income does not require a 2 year history but 
verification that it will continue for at least 3 years is required in order for it to be included.


Income Calculations


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

However, if you are an hourly employee with varied hours, more than likely, your income will be 
averaged
over an extended period such as 18 or 24 months depending on the situation.

Overtime, bonuses, commission and part time employment must have a 24 history in order to be 
included in the qualifying income. The income will be averaged out over 24 months. Verification of 
likelihood to continue will also be required.

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


ASSETS


No down payment does not mean no cash needed
As mentioned in the closing cost section, there are fees that will need to be paid as part of your 
home
purchase or refinance.

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

VA does not require additional cash to cover a certain number or mortgage payments or unplanned 
expenses (cash reserves), however, your ability to accumulate liquid assets and the amount of 
assets currently available is taken into consideration in the overall credit worthiness analysis.

Allowable source of funds
Funds for your down payment, closing costs and other expenses can come from:
•    Checking/savings accounts
•    Investment accounts
•    Retirement account

Gift funds from a relative are an allowed source of funds to cover down payment and or closing 
costs.
The gift will need to be verified and paper trailed via bank statements and a gift letter will need 
to be signed
by your and the gift donor .

Funds from unsecured loans (signature loans, credit card advances) or funds that can not be 
documented are not acceptable source of funds.

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

In the instance of payroll deposits, nothing will need to be done if the deposit shows as a Direct 
Deposit from your employer.

All other deposits will need to be explained and documented.


Debt to Income Ratios

A debt to income ratios is the percentage of your total debt obligation, including the new 
estimated mortgage payment, all debts shown on your credit report, as well as alimony, child 
support etc, as compared to your gross qualifying income


Deferred student loans

If student loan repayments are scheduled to begin within 12 months of the date of loan closing, the 
anticipated monthly payment will be included.
If you are able to provide evidence that the loan(s) will be deferred for a period outside that 
time frame, the payment will not be included.



Alimony/child support You will be expected to truthfully declare that you pay alimony or child
support. You will be asked to provide your divorce decree and/or child support order to verify the 
amounts.



Documentation Checklist


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

Not all items will apply to your situation

CREDIT / IDENTIFICATION/ ELIGIBILITY
🏭 Copy of driver’s license or other photo I.D.
🏭 Copy of divorce decree
🏭 Copy of bankruptcy papers, including all schedules and discharge, and credit 
explanation letter for reason for bankruptcy.
🏭 Letter of explanation on any late payments, collections, charge off’s or derogatory 
credit
🏭 Letter of explanation for all recent credit inquiries
🏭 DD214 if not active duty or Statement of service if active duty

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

ASSETS
🏭 Provide ALL pages of most recent 2 months’ statements for all accounts; including all 
checking, savings, stocks, IRA, 401k, etc. The statements must show your name, account number and 
the name of the banking institution. Any non-payroll deposits will have to be explained and 
documented.
🏭 If funds to close will come from a gift, complete the gift letter (will be provided to 
you) and the following:
🏭 From the donor - bank statements showing the funds in the donor's account and a copy 
of the check from the donor's account
🏭 From you - a copy of the deposit slip showing the gift check deposited into your 
account
🏭 If funds to close are from sale of home
🏭 Estimated closing statement showing anticipated proceeds
🏭 Copy of final closing statement and deposit slip showing proceeds deposited into bank 
account

PROPERTY
🏭 Select your insurance agent and provide agent's name, address, and phone number
🏭 If refinance, or if you will be retaining your current home or own other property
🏭 Current mortgage statement
🏭 Copy of insurance declaration page
🏭 If you’re currently renting, provide your Landlord’s name, phone number and address.
🏭 12 months canceled rent checks will be necessary for private landlords. If you live 
with a family member, letter stating you live rent-free will be required


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.


Kentucky VA Home Loan Guidelines
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. 


Kentucky VA Mortgage Guidelines



http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu

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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KENTUCKY VA MORTGAGE QUALIFYING GUIDELINES



What are VA Home Loans?



VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today's VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of homes current equity.



What are the eligibility requirements for a VA Loan in Kentucky?


Veterans Affairs loan guidelines use two methods of income qualification in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 580 to 620 credit score for a VA Loan approval. Keep in mind, VA guidelines do not call for a credit score but most lenders institute  minimum credit score overlay to protect from  buybacks from VA loans if they have too many go into foreclosure




How much can I borrow?



The maximum Kentucky VA Mortgage amount is determined by:

Maximum VA Loan in Kentucky: The largest loan allowed for VA mortgages with zero down is now based on your VA loan entitlement  in KY. Please refer to the Kentucky VA Loan Limit chart at the bottom of this page to see your area's limit.

Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value.




What will the down payment and closing costs be?



no down payment required and closing costs vary from lender to lender and usually is based upon the loan amount, credit score, time to close (lock period) and whether or not you get a par rate or a higher rate with a lender credit to pay some of your closing costs at closing.



What property types are allowed for VA Loans in Kentucky?

VA Loans may be used to purchase or refinance single-family residences and VA approved condo projects if the property is the veteran's primary residence.

Can I do a VA refinance in Kentucky?

Three kinds of VA Refinance programs are available for veterans in Kentucky.


Rate/Term VA Refinance

The Rate/Term VA Refinance can be used to refinance a conventional, FHA or subprime mortgage into a stable, fixed rate VA Loan.


VA Cash-Out Refinance

A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a homes current value and take cash out for any reason.


Streamline Refinance

The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable rate mortgage into a fixed rate. A VA Streamline Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.



How much can I refinance in Kentucky?

The maximum amount for an KY VA loan is determined by:


Maximum VA Loan in Kentucky: The largest loan allowed for a VA Mortgage varies from county to county. To see what the limit is in the county in which you're interested, visit the following page


This site lists U.S. territories as well as states.


Maximum Finance: In Kentucky, The maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 100% of the appraised value for a VA cash out refinance.

What factors determine if I am eligible for a VA Refinance Loan?

VA refinance loans use two methods for income qualification purposes in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 620 credit score for a VA Loan approval.

Why choose a VA Home Loan?

Kentucky VA Mortgages require no down payment.

There are no prepayment penalties for VA Home Loans.

An Kentucky VA Loan is fully assumable, provided the person assuming is qualified.

VA Mortgage Loans have no PMI premiums.

A VA Mortgage Loan is eligible for non-credit qualifying, Streamline Refinance or "IRRRL".

A VA Home Mortgage is available all areas of the country, provided a market exists for the property and the home meets VA's property standards.

A VA Home Loan may be used to purchase or refinance a new or existing home.

Kentucky VA Loans are offered at terms of 15 or 30 years.

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10 Tips for Mortgage  Loan Applicants Not to After Pre-Approval for a KY Mortgage
 

1. Don’t change jobs or become self-employed. 

2. Don’t buy a car, truck, van, boat or motorhome unless you plan to live in it. 

3. Don’t use your credit cards or let your payments fall behind. 

4. Don’t spend the money you have saved for your down payment. 

5. Don’t buy furniture before you buy your house. 

6. Don’t originate any new inquiries on your credit report. 

7. Don’t make any LARGE or CASH deposits into your bank account. 

8. Don’t change bank accounts. 

9. Don’t co-sign for anyone. 

10. Don’t purchase anything until after the closing. 


Kentucky Mortgage Pre-Approval Checklist of Items Needed for Approval Letter

  1. Bank Statements - Last 2 Months – All bank statements for all accounts from the last 2 months. Include all numbered pages of all bank statements!
  2. Driver's License – Legible state-issued driver's license
  3. Evidence of Insurance – For all properties owned
  4. Federal Tax Returns - Last 2 Years – Last 2 years of federal tax returns to prove income, include all schedules
  5. HOA statement (if applicable) – Most current statement
  6. Loan Application (1003) – Please complete all fields
  7. Mortgage Statement(s) – Most recent for all properties owned
  8. Pay Stubs - Received in Last 30 Days – Last 30 days of pay stubs to prove income
  9. Social Security Card – Legible social security card to prove social security number
  10. W-2s - Last 2 Years – Last 2 years of W-2s to prove income

--

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