Showing posts with label COE VA Loan. Show all posts
Showing posts with label COE VA Loan. Show all posts

Qualifying for A VA Home Loan in KY

Kentucky VA Mortgage Question and Answers for Qualifying for A VA Home Loan in KY?


  1. Does the Kentucky VA Home Loan benefit expire?   NO
  2. Can the Kentucky VA Home Loan Benefit be used more than once?  YES
  3. Can you have MORE than one active Kentucky VA loan at one time?  YES
  4. Is there a limit to the size of the Kentucky VA loan?  NO
  5. Are VA appraisals difficult?  NO
  6. Are VA loans expensive?  NO
  7. Do you need to be a combat veteran to be eligible?  NO
  8. Do National Guard or Reservists qualify?  YES
  9. Do VA loans take longer to close?  NO
  10. Can my service-connected disability reduce my VA loan costs?  YES
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Kentucky VA Mortgage Question and Answers for Qualifying for A VA Home Loan in KY?


















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Kentucky VA Home Loan Mortgage Lender: Understanding Your Kentucky VA Home Loan Benefits

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.






KENTUCKY VA MORTGAGE QUALIFYING GUIDELINES

 

What are Kentucky 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 home's 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


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https://www.benefits.va.gov/HOMELOANS/purchaseco_loan_limits.asp.


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 580-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.

A 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.





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

Joel Lobb
Senior Loan Officer
(NMLS#57916

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.com
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916,
 (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

How to apply for a Kentucky VA Home Loan?


  • Kentucky VA guaranteed home loans benefit veterans because they do not need to make a down payment and there is no upper limit or required cap on the income of the borrower.  Without a down payment as security against foreclosure, lenders receive a certificate of guaranty from VA. 
  •  In essence, as gratitude for honorable military service, the government is vouching for the veteran's trustworthiness to repay his/her debt.  
  • To determine eligibility, a military veteran, active duty person, or a member of the national guard or selected reserves, must submit a VA Form 26-1880 (2 pages) (Form is now in a FILLABLE format - but people with Adobe 5.0 seem to have trouble with it) along with proof of service (DD Form 214, a statement of active duty, or proof of participation in the national guard or reserves) to the VA Eligibility Center, P.O. Box 100034, Attn. COE (@^@), Decatur, GA 30331. 

  •  Based on the applicant's length and type of service, VA issues a certificate for each person determined eligible to apply for a VA guaranteed home loan.  Check the status after ten days by calling 1 (888) 768-2132, option 1, between 8:00 - 4:00 Eastern time.
  1. Viewing and Inspecting the Home
  • Kentucky Home buyers usually use the services of state-licensed real estate agents to: determine an affordable price range, suggest certain home features suitable for the buyer, schedule home tours, negotiate sales contacts and hold earnest money deposits.  
  • State-licensed real estate professional can explain the legal requirements for buyers and sellers, and can refer buyers to local lenders and certified home inspectors.  Buyers should accompany their preferred home inspector during the inspection of the property to ask questions about the home's systems.  
  1. Requesting the Loan
  • Kentucky Home buyers may want to contact a lender even before they sign a contract for a home, so that they can be pre-approved to determine their maximum mortgage amount.  Home buyers who wish to obtain a VA guaranteed loan should make sure that the sales contract includes a phrase, sometimes called a financing contingency, making the contract subject to approval for a Kentucky VA guaranteed loan.  
  • Lenders verify and review past and present job and credit history of home applicants and compare it with VA loan approval guidelines.  If the documents with the loan request cannot be approved, then additional written information must be presented to the lender or the Kentucky VA for further consideration.
  • VA recommends that buyers compare lending terms among several lenders in order to find the best combination of interest rates, discount points, and other negotiable costs for a Kentucky VA guaranteed loan.
  1. Appraising the Property
  • When an eligible veteran contacts a lender to request a Kentucky VA guaranteed loan, the lender obtains a VA number for the request via the Internet.  The lender uses the VA number to monitor progress of the appraisal and loan application.  The lender also sends a VA form to a state-licensed real estate appraiser who will visit the home to give the lender and VA an opinion of the market value of the property. 
  •  The appraisal tells the lender and VA whether the property is expected to be adequate collateral for the requested loan.  Neither the appraisal of the home nor the VA guaranty is a warranty from constructional defects and their resulting repair costs.  Builders and brokers can issue warranties for the condition of the home's structure and systems.
  1. Closing the Sale
  • If the loan and home are approved, the buyer needs to contact a state-licensed insurance agent who will provide homeowner coverage to protect the owner and lender from property damage and loss.  
  • Title to the home is usually examined and insured by a title insurance company that may also prepare closing documents and enter them into public records after the closing. After the home is purchased and the loan is originated, the lender usually sells the active loan to another company which will receive the loan payments and pay the real estate taxes and insurance premiums. 
  1. Closing Costs for Kentucky VA Home Loans
  • VA regulates the closing costs that a veteran can be charged when obtaining a VA home loan. The closing cost regulation is designed to keep lenders from charging veterans those closing costs that VA has determined as being beneficial to the lender and not necessarily beneficial to the veteran. For a list of allowable and unallowable closing costs, please follow the link below.


  1. Prequalifying Worksheet
  • The Prequalifying Worksheet will give you a general idea of what you can afford, and whether you are within VA underwriting guidelines for approval.  This Prequalifying Worksheet is not a commitment to lend, nor can it be used to determine whether a lender will approve the Kentucky VA loan.   Please note, the Prequalifying Worksheet is in Excel format.   Prequalifying Worksheet    


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/


NMLS Consumer Access for Joel Lobb 

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How to get approved for a Kentucky VA Mortgage Loan?

  • Kentucky VA Loan Analysis

  • In order to calculate the residual income, the Kentucky VA loan Analysis must be complete and accurate
  • Include the Square Footage of the property
  • Enter number of dependents (including spouse if applicable) correctly on the 1003 in order to correctly allocate dependents on the VA Loan Analysis
  • Select correct COE eligibility, exemption code, and whether borrower is active or reserves

Compensating Factors for a Kentucky  VA Mortgage Loan               
  • Are used to strengthen a manual underwrite
  • Are used when borrower does not meet 120% of the residual income guideline
  • Compensating factors include: excellent credit history, conservative use of consumer credit, minimal consumer debt, long term employment, significant liquid assets, sizable down payment, the existence of equity in refinancing loans, little or no increase in shelter expense, military benefits, satisfactory homeownership experience, high residual income, low DTI ratio, tax credit for child care, and tax benefits of home ownership

Kentucky VA Mortgage Loan Cash-Out Refinances
  • All refinances except IRRL’s are considered Cash Out Refinances
  • At least 6 monthly payments must have been made on the original loan being refinanced; AND
  • The first payment due date of the new loan must be at least 210 days after the first payment due date of the original loan being refinanced

VA Cash-Out Refinances greater than 90% LTV
  • Max LTV is 100%
  • The cash-out loan must be paying off a current mortgage loan (VA or otherwise), a second (seasoned or unseasoned) mortgage, and/or any other non-mortgage debt.
  • Minimum Fico 620
  • Have a DU approval Must have (no manual underwrites)




Kentucky VA Guaranteed Loan Requirements


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
Updated October 2018 2

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 www.ebenefits.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. However, VA does limit its guaranty. Veterans can borrow up to $484,350 without a down payment in most of the country. You can find out the limit in any county at www.benefits.va.gov/homeloans/purchaseco_loan_limits.asp.

• VA’s residual income guidelines ensure Veteran borrowers can afford the loan. These guidelines establish 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 loan without a down payment or mortgage insurance premiums. Veterans need to obtain a Certificate of Eligibility (COE) to prove entitlement. You can obtain the COE online through eBenefits

Updated October 2018 3 at www.ebenefits.va.gov. 

Lenders also have the ability to request the COE on your behalf.
You 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.


Kentucky VA Mortgage Guidelines for Approval



The Department of Veteran Affairs does not set a minimum credit requirement for a VA home loan. However, there may be credit requirements established by the lender who funds it.
As a benefit of military service, a VA home loan helps U.S. veterans and their spouses become homeowners without having to make a down payment and regardless of having less than fair credit scores. Lenders all over the country offer these loans, which the United States Department of Veterans Affairs (VA) insures. Aside from having no obligation to make a down payment, there are other significant benefits of a VA mortgage:

No Minimum Credit Score Required


Each VA home loan gets insured by the VA, and they do not need veterans to have any particular credit score. However, the loans offered by private lenders may have the requirement for a minimum score, which usually ranges from 580 to 620. Veterans need to be eligible for a credit. That is determined when lenders analyze their credit profile. Typically, lenders pull reports from the three primary agencies for credit-reporting: TransUnion, Experian, and Equifax. For qualification, the median or middle rating gets used as your credit score.
Since the VA is not funding the loan, it is the lender who sets a specific benchmark for the credit score. Not all vendors use the same parameter, but reports indicate the average credit score requirement is a FICO score of 620.
Credit scores aren’t the only things checked within the qualifying credit profile. Also, your past patterns with credit get used in the establishment of your repay willingness. If for at least 12 months, a veteran has made payments on time, he or she shows a readiness to repay any credit obligations to come.
Contrarily, a borrowing veteran who has a history of making payments late, delinquent accounts, or judgments, lenders may not consider him or her a satisfactory applicant to receive a loan.

Good Credit Means Better Mortgage Rates Today


While having a low credit score does not completely disqualify you from getting a VA home loan, but having a higher score is helpful. You can get better loan terms and better mortgage rates today than you would with less than fair credit. It is at the discretion of the lender to decide the percentage offered to each borrower. In general, those individuals with the excellent credit get offered the best rates. However, many homeowners and homebuyers are taking advantage of the current mortgage rates trend which shows the rates retreating.

Other Factors Affecting Approval of VA Loans


There are other financial considerations lenders make to help them determine if you can repay a VA home loan. They consider various factors, such as current income and employment record. Additionally, there are veteran requirements that need to be met, like the character of service, duty status, and length of service. Having a VA Certificate of Eligibility (COE) is an essential component of your loan application. To qualify for a VA loan, you must meet at least one of these conditions:
  • You are the spouse of a service member who is no longer alive because of a service-related disability or died while in active duty.
  • During wartime, you have served in active service for 90 consecutive days.
  • You have over six years of Reserves or National Guard service.
  • During peacetime, you have served in active service for 181 days.

There are six items which could negatively affect your ability to obtain a VA loan and impact your credit profile:

Foreclosure


If a borrower’s past residence or real property got foreclosed on or you were given a deed-in-lieu of foreclosure in the last two years after the date of disposition, a person would generally not be eligible to receive a VA loan. FHA loan defaults can lead to waiting of three years for a VA loan. If it was a VA loan foreclosure, full entitlement for a new mortgage might not be available.

Late Payments on Mortgage


In cases unrelated to bankruptcy, a Veteran or spouse and Veteran can have reestablishment to satisfactory credit if for 12 months after the derogatory credit item there were adequate payments made. Having more than one 30-day late payments may be acceptable by some lenders. The policies regarding late payments are different for each vendor. If the court has made a judgment on account balances, it is subject to a plan with timely repayments or it must be paid in its entirety. Judgment policies can vary from lender to lender


Chapter 7 Bankruptcy

According to VA guidelines, at least two years must pass by after the date of discharge for the borrower or spouse’s Chapter Seven bankruptcy. It is not the date it got filed. The borrower would need to provide a detailed explanation of the bankruptcy. Also, he or she must have a stable income, be eligible for the loan financially and have re-established decent credit.

Chapter 13 Bankruptcy

Under the VA guidelines, a borrower is still paying on a Chapter 13 bankruptcy if it’s verifiable that satisfactory payments got made to the court for one year. To proceed, the court trustee must provide written approval to do so. There needs to be a complete explanation of the bankruptcy, and the borrower must have secure employment, re-established good credit, and financially qualify.

No Credit to Report

Lenders do not find a lack of established credit history favorable. If a borrower has only one credit score, it must meet the lender’s in-house benchmark for some to see it as permissible. Without a credit score, borrowers will have to spend a lot of time building a credit profile before getting the ability to secure a VA home loan. Consideration of a borrower’s non-traditional credit tradelines may have guidelines that vary by lender.



American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com
http://www.nmlsconsumeraccess.org/
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/
-- 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.


Read more: https://usa.inquirer.net/19880/do-va-home-loans-require-a-minimum-credit-score#ixzz5gvZnc8MI




Benefits of a Kentucky VA Home Loan