Louisville Kentucky VA Home Loan Mortgage Lender: Understanding Your Kentucky VA Home Loan Benefits
Kentucky VA Home Loan Mortgage Lender:
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Is your credit score high enough for a Kentucky VA Home Loan Approval?
Usually, 620 or Higher is better for 2 reasons lower rate and less
stipulations from the underwriter
Do you have sufficient credit depth for a Kentucky VA Home Loan Approval?
Generally, all on-time payments in the last 12 months. They like to see two-three paid on time for the last 12 months
Do you make enough money to cover all your debts, including the new
Kentucky VA mortgage?
Debts divided by your gross monthly income is lower than 50%. I have
seen many exceptions to this with compensating factors. I have seen as high as 78% debt ratio get approved through the AUS if you have high credit scores (720 or higher, good residual income, a lot of assets, ie money in the bank, retirement, etc.
-Do you have a high probability of continuing to make that same income?
Two years of stable job history is the best. If you were off work sometimes a good letter of explanation will suffice for a job gap. i.e. hurt, medical, etc.
What is a credit score required for a Kentucky VA Home Loan?
There is no minimum credit score in the VA guidelines.
But, the lender may have a minimum score. It is called credit "overlays".
Most Kentucky VA Home lenders will require a 620 middle credit score.
You have three fico scores from Experian, Equifax, and Transunion.
They will use the middle score of the three. For example, if you have a 675,689,619,
your qualifying fico score to be used would be 675. you can possibly get a VA home
loan approval with a lower score, but you will
have to provide a lot of other information to get that approval
.
What does Debt to income mean for a Kentucky VA Home Loan Approval?
Your ratio of total monthly debt payments on the credit report divided by your gross
monthly income. They do not include, utilities, car insurance, cell phone bills,
only credit reporting items. Typically on a VA home loan, they like to see that number around 43% on the back-end ratio for loan approval. You can go above this with high credit scores, good residual income, assets in the bank, etc. Conversely, if you have a low fico score, no money in the bank, going up in house payment from your current housing payment, or low va residual income. then you will need to be under this.
