Showing posts with label Kentucky Mortgage VA loans. Show all posts
Showing posts with label Kentucky Mortgage VA loans. Show all posts

Can you use Foster Income for a Kentucky Mortgage Loan Approval?

 Foster Income for a Kentucky Mortgage 



Yes, if it can be documented that foster care income has been received for the last 2 years that income is likely to continue for at least 3 years from the date of the Note, then it can be used to qualify.  If it can be verified that income is not taxable, it can be grossed up per 4000.1 II.A.4.c.xii.(P) or II.A.5.b.xii.(P) by either borrower's actual tax rate or 115% whichever is lower.



Yes, we need to show 24 moths receipt of this income, possible exception if only received for 12 months, and we would need something from the agency showing this will continue for 3 years.

Foster-Care Income for a Mortgage Loan Approval


What are the guidelines?


Income received from a state- or county-sponsored organization for providing temporary care for one or more children may be considered acceptable stable income if the following requirements are met.
Verification of Foster-Care Income
Verify the foster-care income with letters of verification from the organizations providing the income.
Document that the borrower has a two-year history of providing foster-care services. If the borrower has not been receiving this type of income for two full years, the income may still be counted as stable income if
  • the borrower has at least a 12-month history of providing foster-care services, and
  • the income does not represent more than 30% of the total gross income that is used to qualify for the mortgage loan.







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


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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Louisville Kentucky VA Home Loan Mortgage Lender: Louisville Kentucky Mortgage Lender VA Home Loans

Louisville Kentucky VA Home Loan Mortgage Lender: Louisville Kentucky Mortgage Lender VA Home Loans: What are the eligibility requirements for a VA Loan in Kentucky? Veterans Affairs loan guidelines use two methods of income qualification i...


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Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...

Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...: Basic Understanding of a Kentucky VA Mortgage Loan Approval Process. The VA makes a guarantee to the lending institution (the insurance)-for...


Basic Understanding of a Kentucky VA Mortgage Loan Approval Process.

The VA makes a guarantee to the lending institution (the

insurance)-for 25% of the loan amount (from a lenders

perspective the effective LTV is 75%).

Because the risk to the bank is reduced, the bank can provide

more affordable loans to the Veteran:

• Eliminating the need for a down payment (100% Mortgage)

• Provides the Veterans favorable interest rates

• Eliminating Mortgage Insurance (NO PMI)

Crushing the Myths of the VA Loan

• VA Mortgage Benefits do not expire.

• You can use your VA benefits as many times as you wish.

• You can have more than 1 at a time. (See occupancy rules)

• There is no limit to the size of a VA loan. (There is a county

loan limit, but veterans can purchase above the county loan

limit with a 25% down payment)

• Credit and risk is reviewed differently by each bank

and lender.

• Even with a foreclosure or short sale, the veteran may still be

able to buy a house with a VA loan. (See burnt entitlement,

veteran might have reduced buying power, but can still

use the VA loan). The VA understands that bad things can

happen to good people.

• VA Appraisals are significantly different than they use to be.


What military documents would I need
to have in order to get a VA mortgage?

I don’t know if I still have my documents from when I

served. How can I retrieve them?

There are three websites that should be able to help you, they are:

vetrecs.archives.gov

archives.gov/veterans/military-service-records/

ebenefits.va.gov

*If you have difficulty retrieving information from any of these sites,

the local recruiting office for your branch would be able to assist.

I have my discharge paperwork, but would like help

obtaining my Certificate of Eligibility

Contact your lender.

I served, but it was a very long time ago. Do my VA
benefits for a mortgage expire?

No, VA Home Loan benefits never expire. You can use your

VA benefit as long as you’re alive.

I used my VA mortgage along time ago to buy a
home. That means I can’t use it again, right?

The VA Mortgage can be used several times over. If the previous

home was sold, your entitlement should be fully reinstated.

What is the minimum credit score to obtain
a VA mortgage?

The VA does not have a minimum credit score, but lenders will

have their own internal overlay. If your score is greater than 580,

you are likely a candidate for the VA mortgage.


Can I use the VA loan to buy a condo?

You can, with the same terms as buying a detached single family

residence. However, we do have to see if the condo association

is VA approved. Check this website:

vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch

I relocated here and have a home in my hometown. I

kept the home and it has a VA mortgage on it now.

Can I get another VA mortgage?

You can get another VA Mortgage. Mortgage

will calculate your remaining entitlement to compute your

maximum loan amount with no money down and/or what

you would have to put down if you exceed the remaining

entitlement.

Can I build a home with a VA Home Loan?

Yes, but there are several clauses that may make this difficult

to accomplish. Many veterans use their VA Home Loan

Certificate of Eligibility to negotiate in good faith a private home

construction loan and then refinance the completed home using

VA Home Loans.

I heard the VA Mortgage was more expensive than
other mortgage types. Is that true?

There is a mandatory funding fee on all VA mortgages (unless

the borrowing veteran is receiving a VA related disability, then

the funding fee is waived). The funding fee is built over and

above the loan amount and the fees are as below.



It's Military May, and that means Permanent Change of Station (PCS) season for military families is upon us. However, some brokers will miss out on opportunities to help more Veterans due to a few commonly held misconceptions regarding Kentucky VA loans.

Separating fact from fiction can make all the difference this season for your business. Here are a few myths around Kentucky VA loans:

Myth: Kentucky VA Loans Are Credit Risks

Reality: Kentucky Veterans and military members tend to have higher credit scores and savings.

Myth: The Seller Pays the Closing Costs

Reality: In a well-structured Kentucky  VA loan, the benefits include no down payment and ideally no closing costs to the seller.

Myth: There Is a Maximum VA Loan Amount  

Reality: There has never been a maximum Kentucky  VA loan amount, though it's often confused with maximum VA loan guarantee.

Myth: VA Loans Are Complicated With Many Restrictions

Reality: The expertise of our Kentucky VA lending team makes the process simple so you can focus on your borrower.



Basic Understanding of a Kentucky VA Mortgage Loan Approval Process. The VA makes a guarantee to the lending institution (the  insurance)-for 25% of the loan amount (from a lenders  perspective the effective LTV is 75%).  Because the risk to the bank is reduced, the bank can provide  more affordable loans to the Veteran:  • Eliminating the need for a down payment (100% Mortgage)  • Provides the Veterans favorable interest rates  • Eliminating Mortgage Insurance (NO PMI)  Crushing the Myths of the VA Loan • VA Mortgage Benefits do not expire.  • You can use your VA benefits as many times as you wish.  • You can have more than 1 at a time. (See occupancy rules)  • There is no limit to the size of a VA loan. (There is a county  loan limit, but veterans can purchase above the county loan  limit with a 25% down payment)  • Credit and risk is reviewed differently by each bank  and lender.  • Even with a foreclosure or short sale, the veteran may still be  able to buy a house with a VA loan. (See burnt entitlement,  veteran might have reduced buying power, but can still  use the VA loan). The VA understands that bad things can  happen to good people.  • VA Appraisals are significantly different than they use to be.    What military documents would I need to have in order to get a VA mortgage? I don’t know if I still have my documents from when I  served. How can I retrieve them? There are three websites that should be able to help you, they are:  vetrecs.archives.gov  archives.gov/veterans/military-service-records/  ebenefits.va.gov  *If you have difficulty retrieving information from any of these sites,  the local recruiting office for your branch would be able to assist.  I have my discharge paperwork, but would like help  obtaining my Certificate of Eligibility  Contact your lender.  I served, but it was a very long time ago. Do my VA benefits for a mortgage expire? No, VA Home Loan benefits never expire. You can use your  VA benefit as long as you’re alive.  I used my VA mortgage along time ago to buy a home. That means I can’t use it again, right? The VA Mortgage can be used several times over. If the previous  home was sold, your entitlement should be fully reinstated.  What is the minimum credit score to obtain a VA mortgage? The VA does not have a minimum credit score, but lenders will  have their own internal overlay. If your score is greater than 580,  you are likely a candidate for the VA mortgage.    Can I use the VA loan to buy a condo? You can, with the same terms as buying a detached single family  residence. However, we do have to see if the condo association  is VA approved. Check this website:  vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch  I relocated here and have a home in my hometown. I  kept the home and it has a VA mortgage on it now.  Can I get another VA mortgage? You can get another VA Mortgage. Mortgage  will calculate your remaining entitlement to compute your  maximum loan amount with no money down and/or what  you would have to put down if you exceed the remaining  entitlement.  Can I build a home with a VA Home Loan? Yes, but there are several clauses that may make this difficult  to accomplish. Many veterans use their VA Home Loan  Certificate of Eligibility to negotiate in good faith a private home  construction loan and then refinance the completed home using  VA Home Loans.  I heard the VA Mortgage was more expensive than other mortgage types. Is that true? There is a mandatory funding fee on all VA mortgages (unless  the borrowing veteran is receiving a VA related disability, then  the funding fee is waived). The funding fee is built over and  above the loan amount and the fees are as below.      It's Military May, and that means Permanent Change of Station (PCS) season for military families is upon us. However, some brokers will miss out on opportunities to help more Veterans due to a few commonly held misconceptions regarding Kentucky VA loans.  Separating fact from fiction can make all the difference this season for your business. Here are a few myths around Kentucky VA loans:  Myth: Kentucky VA Loans Are Credit Risks  Reality: Kentucky Veterans and military members tend to have higher credit scores and savings.  Myth: The Seller Pays the Closing Costs  Reality: In a well-structured Kentucky  VA loan, the benefits include no down payment and ideally no closing costs to the seller.  Myth: There Is a Maximum VA Loan Amount    Reality: There has never been a maximum Kentucky  VA loan amount, though it's often confused with maximum VA loan guarantee.  Myth: VA Loans Are Complicated With Many Restrictions  Reality: The expertise of our Kentucky VA lending team makes the process simple so you can focus on your borrower.


Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...

Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...


Basic Understanding of a Kentucky VA Mortgage Loan Approval Process. The VA makes a guarantee to the lending institution (the insurance)-for...



Basic Understanding of a Kentucky VA Mortgage Loan Approval Process





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


๐Ÿ‘‡๐Ÿ‘‡

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.

Can you have 2 Kentucky VA Loans?

A Kentucky Veteran Can Have Multiple VA Loans

Did You Know
 A Kentucky Veteran Can Have Multiple VA Loans:
That’s right. VA will allow a Kentucky Veteran to have multiple Kentucky  VA loans provided they meet the required GNMA 25 percent guaranty. Are you unsure of how to calculate the maximum loan amount for a Veteran based on their used entitlement? I am Kentucky Veteran myself and have done over 50 VA loans for past customers in Kentucky. I am here to help with your Kentucky VA mortgage questions!
Click here and download an interactive, Kentucky Mortgage VA Entitlement and Loan Amount worksheet to help you determine their Kentucky VA Home loan maximum loan amount. This worksheet also works great to determine the maximum loan amount for a Veteran when they are buying a home over their county loan limit.




First let’s explain the difference between entitlement and maximum loan amount.
Each borrower using a VA Loan has a $36,000 entitlement that the VA guarantees to the lender in the unfortunate event that a borrower would default on the loan. The VA's formula dictates whether or not all that entitlement is used with the initial loan, and thus, additional entitlement can be available. And even if the entitlement is $0 after the purchase of the first house, then the Veteran or active duty member can still use their second-tier entitlement, but there will be a standard minimum and maximum loan limits on what the borrower can use to buy that second house.
Where does the $36,000 come from? This is 25% of 144,000, the "old" maximum loan amount for VA loans.
The VA now has County maximum loan limits as high as 768,750 in the DC Metro Area. With that loan amount, your 25% guarantee is 192,187.50 in entitlement.
"Second-Tier entitlement is nice because for those people using it, it means they don't have to sell their (first) property right off the bat when obtaining the second VA Loan. However, they still have to qualify for the VA Loan. While Second Tier Entitlement is not widely used because of its complexity and the fact that plenty of lenders are not well versed in calculating it, does not mean that interested borrowers should wave the white flag and look elsewhere for a different home loan.

An Example of calculating second-tier entitlement:
Veteran has used $104,250 of entitlement on a prior loan, which may not be restored because the loan is still active and is now a rental due to orders to transfer. The Veteran is now purchasing a home for $350,000 where the county loan limit is $768,750.
$768,750 (County Loan Limit) X 25% (your VA guaranty) = $192,187.50 Maximum Guaranty
$192,187.50 - $104,250 (entitlement already used for active VA loan) = $87,937.50 Entitlement Available
$87,937.50 X 4 = $351,750 Maximum Loan Amount with 25% Guaranty – Since the proposed purchased price is less than the max loan amount, no down payment would be required.
If the Veteran would like to purchase a home for 400,000 using the same numbers above, they would be required to bring $12,062.50 as a down payment to meet the 25% guaranty.
400,000 x 25% = 100,000 needed entitlement/guaranty – 87,937.50 available = 12,062.50 difference needed by Veteran to meet lender requirement.
For a list of county loan limits, please email me or go to http://benefits.va.gov/homeloans/do...limits.pdf
If you would like to discuss your options for second tier availability to you, please do not hesitate to contact me!




Joel Lobb
Senior Loan Officer
(NMLS#57916)


phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com

VA Mortgages for Kentucky Veterans




Kentucky VA Mortgage Pre-Approvals for 580 Fico Scores and up!


In the most basic of terms, VA Second-Tier Entitlement gives a qualified military person the ability to have two KY VA mortgages out simultaneously.


Fill out my form!

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/


NMLS Consumer Access for Joel Lobb 

Accessibility for Website 

Privacy Policy

Louisville Kentucky VA Home Loan Mortgage Lender: Tips on getting a Kentucky VA Mortgage Guidelines ...

Louisville Kentucky VA Home Loan Mortgage Lender: Tips on getting a Kentucky VA Mortgage Guidelines ...: Getting  your Louisville  Kentucky VA  Loan  Approval Run a 25-year loan if you are not getting an approval with a 30-year. Even with higher...



Run a 25-year loan if you are not getting an approval with a 30-year. Even with
higher ratios, 25-year loans are considered lower risk and can be key to getting
an Approve Eligible
• You can do a VA IRRRL on a property that the veteran no longer lives in
• Payoff debts at closing with seller concessions. When writing the offer, this
information goes in the “under additional provisions or other terms” section
• No seasoning requirement for being added to the title (No flip rule)
• Only type of loan where an SAR Underwriter can adjust the value after a
secondary review in Tidewater with a request from the borrower. That gives us
two chances to increase the value if it comes in under.
• You can have more than one at the same time.
• If the DD-214 is a Dishonorable Discharge, the Veteran can re-apply and get their
benefits reinstated and then buy their home. (Apply to the BCMR to upgrade on
basis of clemency)
• No max loan amount & no max amount of closing costs a seller can pay.
• Time of service requirements can be appealed if they are discharged due to a
service-related disability
• Student loans in deferred status that go by old guidelines can be omitted.
• Disputes do not need to be removed to qualify. This is a good trick if you need a
couple extra points. (Disputing collections)
• Time of service requirements can be appealed if they are discharged due to a
service-related disability.
• LP is generally nicer to VA Loans that have derogatory trade lines




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 

Accessibility for Website 

Privacy Policy

Bankruptcy, Foreclosure, Short-sale for Kentucky Conventional, FHA, VA, Mortgage Loan Guidelines





Mortgage Loans In Kentucky for Conventional, FHA, and VA Mortgages for 2020

Mortgage Loans In Kentucky 
Kentucky Conventional Mortgages – These mortgages are not insured by the government, but they do conform to the government standards known as Freddie Mac and Fannie Mae. One thing to note about a conventional mortgage is that they require mortgage insurance unless you can put down at least 20%; once the loan’s principal balance drops below 78% of the home’s value, you no longer have to pay mortgage insurance.
  • Qualifying credit: 620-740
  • Loan terms: 15 or 30 years
  • 3% Down Payment minimum
Kentucky FHA Loans – An FHA loan is insured by the Federal Housing Administration, who guarantees a portion of the loan should the borrower default. This minimizes the lender’s risk and allows them to expand their borrowing parameters to the benefit of first-time homebuyers who might not have large savings or strong credit. Keep in mind that closing costs will be much higher for this type of mortgage and the home must meet rigorous appraisal standards.
  • Qualifying credit: 500 minimum with 10% down payment and 580 score higher 3.5% down payment 
Kentucky VA Loans If you are an active duty military personnel (or veteran in California and Hawaii), you may be eligible for this mortgage plan backed by the Dept. of Veteran Affairs. Income and credit requirements are significantly lower than other loans, making the approval process much easier, but be prepared to face longer closing periods than you would experience through a private lender.
  • Qualifying credit: No minimum Credit score for va loans
  • Outstanding debt---debt ratios usually around 45% on the backend 
  • Credit background-----looking at last 2-4 years mostly in regards to bankruptcies, foreclosures, short-sales,
  • Employment history--2 year work history not really the same job but same line of work and pay being consistent. 

2020 Kentucky VA Mortgage Guidelines


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.


D​o 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


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/