Showing posts with label Residual Income. Show all posts
Showing posts with label Residual Income. Show all posts

Louisville Kentucky VA Income Guidelines

Louisville Kentucky VA Residual Income Guidelines



Residual Income

VA residual income is one of the major underwriting guidelines required to qualify for a Louisville Ky VA mortgage. Residual income is calculated by determining the gross monthly income of the veteran and spouse. Then, ... deduct from that total gross monthly income the following monthly expenses:


0Louisville Kentucky VA Residual Income Guidelines"

VA Home Mortgage Residual Chart for Income for areas of United States for loan amounts over $80,000

State Taxes

Social Security

Federal Taxes

Proposed new monthly house payment (PITI: principle, interest, taxes and insurance)

Estimated Maintenance and Utilities

Monthly Child Care Expense

Alimony or Child Support

Monthly consumer debt payments: installment and revolving credit cards

The balance remaining is "residual income" and will determine whether the borrower qualifies based on the table below.



Louisville Ky VA's minimum residual incomes (balance available for family support) are a guide. They should not automatically trigger approval or rejection of a loan. Instead consider residual income in conjunction with all other credit factors.



An obviously inadequate residual income alone can be a basis for disapproving a loan.



If residual income is marginal, look to other indicators such as the applicant's credit history, and in particular, whether and how the applicant has previously handled similar housing expense.



Consider whether the purchase price of the property may affect family expense levels. For example: A family purchasing in a higher priced neighborhood may feel a need to incur higher-than-average expenses to support a lifestyle comparable to that in their environment. Whereas a substantially lower priced home purchase may not compel such expenditures.



Also consider the ages of the applicant's dependents in determining the adequacy of residual income. Count all members of the household (without regard to the nature of the relationship) when determining "family size," including:



An applicant's spouse who is not joining in title or on the note, and

Any other individuals who depend on the applicant for support. For example, children from a spouse's prior marriage who are not the applicant's legal dependents.

Exception: The lender may omit any individuals from "family size" who are fully supported from a source of verified income which, for whatever reason, is not included in effective income in the loan analysis.



For example: A spouse not obligated on the note who has stable and reliable income sufficient to support his or her living expenses, or a child for whom sufficient foster care payments or child support is received regularly.



Reduce the residual income figure (from the following tables) by a minimum of 5% if the applicant or spouse is an active-duty or retired serviceperson, and there is a clear indication that he or she will continue to receive the benefits resulting from use of military-based facilities located near the property.



Use 5% unless the Louisville Ky VA office of jurisdiction has established a higher percentage, in which case, apply the specified percentage for that jurisdiction.




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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