Showing posts with label VA Mortgage Streamline (IRRRL). Show all posts
Showing posts with label VA Mortgage Streamline (IRRRL). Show all posts

What are the residual income requirements for a Kentucky VA Home Loan Approval?




Residual Income for a Kentucky VA Loan Approval
Residual income is the amount of income remaining after housing expenses, income taxes, long-term obligations and other expenses have been deducted from the borrower’s total gross pay. VA requires a specific amount of monthly residual income be available for the borrower’s use. This amount is based on the family size, location of the property and loan amount.
  • Federal, state and local taxes must be entered in DU or LP. Taxes should be calculated using the most recently published tax charts by the IRS and state or local taxing authorities. Click here for Tax tables.
  • Maintenance and utility costs may be estimated at 14 cents per square foot.
Minimum Residual Income with DTI <=41% 

residual income requirements for a Kentucky VA Home Loan Approval




Mortgage Application Checklist of Documents Needed below  ๐Ÿ‘‡

W-2 forms (previous 2 years)
Paycheck stubs (last 30 days - most current)
Employer name and address (2 year history including any gaps)
Bank accounts statement (recent 2 months – all pages
Statements for 401(k)s, stocks and other investments (most recent)
federal tax returns (previous 2 years)
Residency history (2 year history)
Photo identification for applicant and co-applicant (valid Driver’s License





click on link for mortgage pre-approval


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/


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Employment Guidelines for VA Loans

Employment Guidelines for VA Loans


VA loans are hands-down the preferred choice for those who qualify searching for a competitive loan program with no money down. VA lending guidelines are similar to those with other loan types and are approved and documented in much the same fashion as conventional loans. However, VA loans do have specific requirements that make the program unique and do have additional requirements. Here is a list of some common questions.


Since the VA guarantees my loan, does that mean I’m guaranteed a VA loan?

No, the VA guaranty is to the lender approving your VA loan. As long as the lender approves your loan using established VA guidelines, should the loan ever go into default, the lender can receive compensation of 25 percent of your loan amount. Lenders will still review your income and credit amount other requirements before issuing an approval.

What are “non-allowable” closing costs?

The VA restricts certain closing costs that may be charged to and paid for by the veteran. Your VA lender can provide you with a list of these restricted fees along with other charges that you may be responsible for.

What credit score does the VA require?

Credit scores, a 3-digit number reflecting your current credit profile, are not required by the VA. However, most VA lenders do require a minimum credit score with lenders asking for a score to be at or above 640.


How do I know if I qualify for a VA loan?

VA lenders must review your certificate of eligibility to determine whether or not you’re eligible for a VA loan. However, basic requirements ask that you have more than 180 days of active duty service, an honorably discharged veteran, served six years in the National Guard or Reserves or the spouse of a service member who died as a result of a service-related injury.

What types of loans does the VA offer?

All VA lenders provide loan choices in both fixed rate and adjustable rate loans. Most lenders offer fixed rate terms of 10, 15, 20, 25 and 30 years. Adjustable rate mortgages are typically issued as hybrids, where the initial rate is fixed for a predetermined period before changing into a loan that can adjust annually.

What is a funding fee?

The funding fee is an insurance premium that finances the VA guarantee on your loan and is expressed as a percentage of the amount borrowed. This percentage can vary based upon loan type, equity and other loan characteristics but the funding fee for a first time purchase with no money down is 2.3 percent of the loan. The funding fee may be rolled into the loan amount in lieu of paying out of pocket. Most borrowers choose to roll the fee into the loan.

Do all lenders offer VA loans?

VA loans are typically offered by most lenders but it’s important to work with a lender that is an approved VA lender. An approved VA lender is authorized to process, underwrite and fund a VA loan. It’s important that you work with a lender with extensive VA experience to help you navigate your way through the VA approval process.

Can I use a VA loan more than once?

Yes, you can use a VA loan more than once as long as your original entitlement is restored. Your entitlement is restored when you sell your house and pay off the existing VA home loan.

What is my entitlement?

The entitlement issued today is $36,000 and the VA will guarantee a loan up to four times that amount, or $144,000. For loans above that, the VA guarantee will be 25 percent of the loan amount up to $417,000. In certain “high cost” areas, the guarantee and maximum loan amounts are g

Louisville Ky VA Mortgage Streamline IRRRL Facts

Louisville Ky VA Mortgage Streamline (IRRRL)


IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a "Streamline" or a "VA to VA." Except when refinancing an existing  Louisville VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate. When refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.



No appraisal or credit underwriting package is required by VA. You should be aware, however, that lenders may require an appraisal and credit report anyway.



A certificate of eligibility is not required. Your lender may use our e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.



An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs. (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage).



No lender is required to make you an IRRRL, however, any lender of your choice may process your application for an IRRRL. While it might be the best place to start shopping for an IRRRL, you do not have to go to the lender you make your payments to now or to the lender from whom you originally obtained your VA Loan.



Some lenders may say that VA requires certain closing costs to be charged and included in the loan. Remember - The only cost required by VA is a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan.



You must NOT receive any cash from the loan proceeds.



An IRRRL can be done only if you have already used your eligibility for a Louisville VA loan on the property you intend to refinance. It must be a VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a Louisville VA loan when you bought your house, or by substituting your eligibility for that of the seller, if you assumed the loan. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.



The occupancy requirement for an IRRRL is different from other Louiville VA loans. When you originally got your Louisville VA loan, you certified that you occupied or intended to occupy the home. For an IRRRL you need only certify that you previously occupied it.



The loan may not exceed the sum of the outstanding balance on the existing Louisville KY VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan.



NOTE: Adding all of these items into your loan may result in a situation in which you owe more than the fair market value of the house, and will reduce the benefit of refinancing since your payment will not be lowered as much as it could be. Also, you could have difficulty selling the house for enough to pay off your loan balance.



Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you a lot of money in interest over the life of the loan, if the reduction in the interest rate is not at least one percent (two percent is better) and lots of new loan costs are rolled into the new loan, you may see a very large increase in your monthly payment.



Beware: It could be a bigger increase than you can afford



No loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new Louisville KY VA loan will be a first mortgage.


This website is not an Government Agency, and does not officially represent the HUD, VA, USDA or FHA







Fill out my form now by clicking here for your free mortgage prequalification on a VA Streamline!

Louisville VA Streamline Refinance IRRRL



What are the qualification for a Kentucky VA Home Loan?

CONSISTENT JOB AND INCOME STABILITY

  • For a currently serving service member, your service will immediately qualify as a stable job.
  • For Kentucky veterans no longer on active duty, you’ll want to have at least 12 months at your current job or be in a similar line of work to your most recent work. Two years or more with an employer is the ideal job history for a mortgage.
  • If you started a new job recently, you may be able to reference your previous work history, work in the service, or educational background to support the stability of your new job. In addition to standard paperwork, if it’s a brand new job, we’ll also be looking for an offer letter.
  • Some types of jobs are inherently less stable than others. If you’re receiving a salary, your income is guaranteed short of job loss. If you’re receiving an hourly pay, then there is a good idea of what you’ll likely be making. But if you’re working any type of commission related job, your income is volatile. It could be high one month and zero the next month. For commission jobs, you’ll want to have at least two years of history reported to your tax returns. We’ll then be able to use a two-year average to determine what we can use as your monthly income.

GOOD CREDIT SCORES AND CREDIT HISTORY

  •          There is no minimum credit score for VA, but most Kentucky VA lenders that I            work with  will want a 580 to 620 minimum with no foreclosure or                                bankruptcies in the last 2 years
  • You should have zero late payments on either your rent or mortgage within the last 12 months – preferably having zero late payments. If this isn’t possible, focus on keeping all current accounts paid on time. Your new history will eventually bury the old late payments.
  • If you have no credit score, we can use alternative trade lines like rent, utility  bill and car insurance. 

DEBT TO INCOME RATIOS UNDER 41% FOR LOWER CREDIT SCORE, OR HIGHER THAN 41% FOR GOOD CREDIT SCORES

  • DTI will be referenced commonly throughout the loan process. This determines how much house you can afford as it’s your monthly debts considered against the gross monthly income (GMI) we’re able to use for your mortgage.
  • Ideally, your total DTI will be below 41% of your gross monthly income. This means someone who makes $5,000 monthly would want all of their collective credit related debts + new mortgage to be below $2,050 for the month. For example, According to CNBC, the average car loan is $523 a month. If you add in another $27 for a credit card, that would be $550 in credit debts + housing. So, your mortgage payment would want to be under $1,500. You can potentially be approved for more, but this would be the ideal number to aim for.
  • Residual Income requirements of $1000 or more a month for most veteran borrowers in Kentucky 
  • Your veteran status.
  • You must have at least 90 days of active duty service.
  • For Reserves, at least six years of service.
  • For veterans, you must have a discharge other than dishonorable.

HOW YOU APPLY FOR A VA HOME LOAN IN KENTUCKY




COE and DD Form 214 for A Kentucky VA Mortgage Loan


The first step is to get  your  (COE and DD Form 214 for A Kentucky VA Mortgage Loan) in order as well as reviewing your information to make sure you qualify. If you don’t, we can get you on the right track.
 Determiner your eligibility and the maximum purchase price is the first step you’ll need to take for your ​Kentucky ​VA Loan. VA Loans don’t technically have a maximum mortgage/loan limit, but they do have a maximum amount they’ll 100% finance. On the other hand, FHA does have a maximum mortgage. This is an actual limit on the amount you can borrow.
Using a VA Loan allows you to finance up to 103.3% of the purchase price, with 100% going towards the purchase and the remaining 3.3% eligible to go towards your closing costs. Determining your eligibility will involve reviewing your veteran status, Certificate of Eligibility (COE), county limits, income, credit, and job stability. These factors will all contribute to your VA maximum mortgage.
The first thing you’ll need to do is to make sure you’re an eligible veteran and confirm your Certificate of Eligibility is ready for your VA Loan. If you’ve already got that sorted out, then you’re ready to start shopping for how much you’ll qualify for
Text/call:      502-905-370
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