Things to know about getting a VA Mortgage Loan in Kentucky in 2020
1. There isn’t a cap on the Kentucky VA loan amount someone could borrow.
2. Kentucky VA loans cannot be used to purchase vacation homes or second homes.
3. Some surviving spouses are eligible.
4. The VA doesn’t provide borrowers with the loan.
5. Borrowers must receive a Certificate of Eligibility.
Kentucky VA home loans don’t have a limit, are only available through lenders, must be used for primary residences and eligible to surviving spouses, and require a Certificate of Eligibility.Kentucky VA home loans don’t have a limit, are only available through lenders, must be used for primary residences and eligible to surviving spouses, and require a Certificate of Eligibility, certain credit score and income and residual income requirements.
Unlike many other mortgage loans, Kentucky VA loans don’t have a set cap on how much money a borrower could receive, according to the VA. This essentially means there isn’t a limit. However, the VA itself does, with it only assuming liability on a certain amount.
"The loan limits are the amount a qualified Kentucky Veteran with full entitlement may be able to borrow without making a down payment."
Specifically, “there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you," states the department. “The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location.”
These limits also tend to change from year to year, and can be viewed on the VA’s official website.
One of the stipulations of a VA home loan is that the property being purchased must be used as the borrower’s primary residence. This means any vacation homes, as well as properties buyers are interested in purchasing for investment purposes, do not qualify. However, buyers aren’t limited to only single-family homes. Multi-family homes, some condominiums, and manufactured homes, are also eligible—they just need to be approved by the VA beforehand. In some instance, you can have two VA loans outstanding in Kentucky
As aforementioned, VA home loans were developed to help veterans, active-duty service members and reservists afford a home. Still, there are some exceptions in which surviving spouses may be eligible, as well. Several conditions in which this could take place, as described by the VA, include:
A surviving spouse of a veteran who was killed in action or by a combat-related disability may qualify, for example, as long as he or she is not remarried. A spouse of an active-duty service member “missing in action or a prisoner of war” could obtain this type of loan, too.
Additionally, any surviving spouses who remarry on or after age 57, and on or after December 16, 2003, or who are married to a “certain totally disabled” veteran “whose disability may not have been the cause of death,” are also considered an eligible candidate.
The VA created the loan and guarantees it, but the agency doesn’t actually provide qualified borrowers with a VA loan. Applicants would need to be approved by a trusted mortgage lender and obtain the funds that way, instead. As a result, it’s important for home buyers to know what exactly to.
Although borrowers have to apply for a VA home loan via a lender, they must receive a Certificate of Eligibility (COE) by the VA to be approved, which they can do online, via mail, or through their lender. A COE simply proves that they are suitable candidates and meet the loan’s qualifications. Since different types of buyers could be eligible, the VA breaks down what each one would need to obtain a COE:
For instance, any veterans applying need a DD Form 214, and are “required to have a copy showing the character of service (item 24) and the narrative reason for separation (item 28).”
6. What credit score do I need to qualify for a VA Home Mortgage in Kentucky?
On paper, VA mortgage guidelines state that they don't have a minimum credit score. However, lenders will create overlays, meaning they can and will institute certain credit score requirements for a VA mortgage loan approval in Kentucky. This will vary from lender to lender. Most VA lenders will want a 620 middle credit score, but there are some VA lenders that will go down to the 500 credit score we work with, but be prepared to wait, because it could take a while or could end up getting turn-downed in the end.
It is best to get your credit scores up before applying for a VA mortgage loan if they are under 580 in my opinion. The VA pre-approval process uses the automated underwriting system or AUS (software) to pre-approve every veteran and depending on what the underwriting recommendation is, this could make or break your pre-approval and chances of getting approved for the VA loan.
Can I Kentucky a VA Mortgage loan after a Bankruptcy.
Yes you can. It depends on what type of bankruptcy you had. Kentucky VA Loans also allow Veterans and active military to bounce back faster after a bankruptcy, foreclosure or short sale. You can be eligible for a Kentucky VA Loan two years after a Chapter 7 bankruptcy discharge; one year after filing a Chapter 13 bankruptcy; and two years following a foreclosure. Some lenders have no required waiting period following a short sale.
What is residual income and how does it affect my VA loan Approval in Kentucky
VA is the only loan program out there when compared to FHA, USDA, Fannie Mae and Freddie Mac for Conventional loans that states you must have a certain income left over after you take your gross monthly income and subtract your monthly bills on the credit report along with new VA house payment along with taxes (federal, state, local, social security) along with child support or 401k loans along with utilities--
It is based on home size and where the property is located. For example, in Kentucky, which is located in the South region below, a qualifying VA mortgage applicant would need to have $1039 left over in residual income for family size of 5 to qualify for a mortgage loan
There are no exceptions on this.
Do you have questions about qualifying for a VA Mortgage loan in Kentucky .
Call, text, or email below your questions. I am a Veteran myself (19 kilo) former tanker, and I have originated over 100 VA loans in my mortgage lending career in Kentucky.
Joel Lobb (NMLS#57916)
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
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.