Kentucky VA Home Loan Requirements for Approval

Minimum credit score

Qualifying for Veteran Home Loans

The Veteran Loan program is designed for veterans who meet the minimum number of days of completed service. Some of the other eligibility requirement for the VA loan program^[5] and some specific home loan benefits include the length of service or service commitment, duty status and character of service. The program does allow for benefits to Surviving Spouses.

The VA does not have a minimum credit score used for pre-qualifying for a mortgage loan, however, most Lenders require a minimum credit score of at least 620.^[6]

A Veteran who has used their entitlement to previously purchase a home, may have entitlement left to purchase another one. If you previously purchased a home using your VA Benefits then you might still have some of that “Entitlement” available to you for the purchase a new home. To Calculate Maximum Entitlement available, consider the following:

1. If your previous home was purchased using a VA Loan, and that loan was paid off by the new owners, the full entitlement may have been restored.
2. If you sold your home to someone, and allowed them to assume your VA Loan, then you might have the full entitlement restored, if one or more of the purchasers were also Veterans.
3. If you still own the home, and you are renting it out – you might be able to purchase a new home using your partial entitlement, but there are several restrictions.

Allowable Income Sources used to qualify for a VA Loan include: Retirement Income, Social Security Income, Child Support, Alimony and Separate Maintenance, BAH, BAS and Disability Income. Dependency and Indemnity Compensation (DIC) for a Surviving Spouse can also be included. In addition, stable, documented income from employers remains the best income source for VA loans.

Requirements

VA Loan application

The VA loan application is a standardized loan application form 1003 issued by Fannie Mae also known as Freddie Mac Form 65. It is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements on a VA loan application under the provisions of Title 18, United States Code, Section 1001, et seq.

You will need the following paperwork to apply:

• Copies of your W2 statements for the past two years, so your gross household income can be confirmed,
• Copies of your previous two pay stubs,
• Documentation of other assets (checking accounts, savings accounts, financial investments, trust funds, etc.),
• If self-employed, two years of consecutive tax returns will be required.
• The Veteran also needs to supply their DD 214 and Certificate of Eligibility (COE)

On June 25, 2019, the Blue Water Navy Vietnam Veterans Act of 2019 was signed into law temporarily increasing the VA funding fee for active duty service members and veterans starting January 1, 2020. The law removed VA county loan limits for homebuyers with full VA loan entitlement and made Purple Heart recipients exempt from paying the VA funding fee.^[3] Several members of Congress were displeased after the passing of the act, writing an open letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy asking that future bills not be paid for by increasing VA loan fees.^[4]

Funding fees

A funding fee must be paid to VA unless the veteran is exempt from such a fee because he or she receives a minimum of 10% VA disability compensation. If a veteran is awarded disability compensation after paying a funding fee, he/she can apply for a refund of this funding fee, so long as the beginning date of the disability is prior to the closing date of the home mortgage.

In August 2012, Congress passed a bill that allows a Veteran to receive the benefits of having Veteran Disability while it is still pending. The amount paid for the funding fee can be refunded back to the Veteran when a determination is made and the paperwork is received.

The VA Funding fee may be paid in cash or included in the loan amount. Closing costs such as VA appraisal, credit report, loan processing fee, title search, title insurance, recording fees, transfer taxes, survey charges, or hazard insurance may not be included in the loan. However, the seller may pay these on behalf of the VA borrower.

Purchase and construction loans

Due to the Blue Water Navy Vietnam Veterans Act of 2019, the VA funding fee is equalized for all branches of service starting January 1, 2020. For active duty military members and veterans, this means an increase in VA funding fee costs for a period of 2 years. If you have a service-connected disability that you are compensated for by the VA or if you are a surviving spouse of veteran who died in service or from service-connected disabilities, the funding fee is waived.

Type of Veteran	Down Payment	First Time Use	Subsequent Use
Regular Military, Reserves/National Guard	None 5%-9.99% 10% or more	2.3% 1.65% 1.4%	3.6%* 1.65% 1.4%

The VA funding fee can be financed directly into the maximum loan amount for the county in which the home is located. For subsequent use VA loans, if the sales price and the financed VA funding fee total more than maximum loan amount for that county, the borrower or seller must pay for the fee out of pocket. All VA loans require an impound account for property taxes and homeowners insurance which makes the monthly payment of VA loans calculated as a PITI payment.**

Cash-out refinancing loans

Type of Veterans	Percentage for First Time Use	Percentage for Subsequent Use
Regular Military, Reserves/National Guard	2.3%	3.6%*

• The higher subsequent use fee does not apply to these types of loans if the veteran’s only
  prior use of entitlement was for a manufactured home loan.

Other types of loans

Type of Loan	Percentage for Either Type of Veteran Whether First Time or Subsequent Use
Interest Rate Reduction Refinancing Loans	.50%
Manufactured Home Loans	1.00%
Loan Assumptions	.50%

• Veterans who previously lived in a home they had to then rent out will typically qualify for a no appraisal Interest Rate Reduction Refinance. The Veteran's Administration also allows Veteran Homeowners to refinance from a Conventional loan to a VA mortgage Loan. This process, however, does require an appraisal.

0% DOWN PAYMENT

580 or Higher Credit Score with most lenders I work with even though VA does not have a minimum credit score. 

2.30% Upfront Mortgage Insurance Premium (First-Time Use)

Financed into Loan Amount

Will Vary Depending on Down Payment and Subsequent Use

No Mortgage Insurance Required

No  Maximum Loan Amount

Higher Loan Amounts Available with Down Payment

Great Option for Veterans or Active Military

Kentucky VA Loan Guidelines

VA Loan Credit Issues

VA will analyze a borrower’s past credit performance in determining the loan for approval. A borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. On the opposite side, a borrower who reflects continuous slow payments, judgments and delinquent accounts is not a good candidate for loan approval.
Below is a list of items concerning the borrower’s credit:

 

LATE MORTGAGE PAYMENTS

In circumstances not involving bankruptcy, satisfactory credit is generally considered to be reestablished after the veteran, or veteran and spouse, have made satisfactory payments for 12 months after the date of the last derogatory credit item(s).
When the underwriter analyzes the borrowers credit; it is the overall pattern of credit behavior that must be reviewed, rather than isolated cases of slow payments. A period of financial difficulty does not disqualify the borrower if a good payment pattern has been maintained since then.
Account balances reduced to judgment by a court must either be paid in full or subject to a repayment plan with a history of timely payments.

 

NO CREDIT HISTORY

In the area of credit, the lack of an established credit history should not be a deterrent to loan approval. As provided in the credit standards, a satisfactory payment history on items such as rent, utilities, phone bills, etc., may be used to establish a satisfactory credit history.

 

CHAPTER 7 BANKRUPTCY

The Kentucky VA guidelines state that a minimum of two years must elapse since the discharge date of the borrower and / or spouse’s Chapter 7 bankruptcy, not the filing date. A full explanation of the bankruptcy will be required. The borrower must also have re-established good credit, qualify financially and have good job stability.

 

CHAPTER 13 BANKRUPTCY

The Kentucky VA guidelines state that they will consider a borrower still paying on a Chapter 13 Bankruptcy if the payments to the court have been satisfactorily made and verified for a period of one year. In addition, the court trustee will need to give written approval to proceed. A full explanation of the bankruptcy will be required. The borrower must also have re-established good credit, qualify financially and have good job stability.

 

COLLECTIONS, JUDGEMENTS AND FEDERAL DEBTS

The Kentucky VA guidelines state that if a collection is minor in nature, it usually does not need to be paid off as a condition for loan approval. Judgments must be paid in full prior to closing. A borrower is not eligible for the loan if they are delinquent on any federal debt. This can include tax liens, student loans, etc. Payment arrangements that would bring the borrower up to date may be considered for loan approval.

 

FORECLOSURE

A borrower whose previous residence or other real property was foreclosed on or given a deed-in-lieu of foreclosure within the previous two years since the disposition date is generally not eligible for a VA insured mortgage. If the foreclosure was on a Kentucky VA loan, the applicant may not have full entitlement available for the new loan.

 

In order to verify your credit history, your lender will obtain a credit report containing 

information as reported by all 3 of the major credit bureaus: Trans Union, Equifax and Experian.

Most people will have 3 credit scores but it is possible that you may have only 1 or two scores if 

you have limited credit history.

This report will also include information on any public records such as bankruptcies,

judgments and tax liens.

Credit Scores

Though VA does not have a set minimum credit score requirements, lenders will have a minimum credit

score requirement.

Collection account may need to be paid off in order to close your loan

It is preferable that the most recent 12 months show satisfactory payments and no other derogatory 

information.

Credit History

If you experienced a major derogatory credit event, there will be waiting periods that will have to 

be observed before you can be eligible to qualify for a loan.

Bankruptcy Chapter 7

2 years from discharge date

Bankruptcy Chapter 13

Immediately after discharge or

After 12 months of payments***

Foreclosure*

2 years from completion date

* If the foreclosure or short sale was on a VA loan, you may not have full entitlement available 

for the new loan

*** Must obtain written permission from the bankruptcy court/trustee and provide proof of 

satisfactory payment history

Income and Employment

Minimum History of Employment

A minimum of 2 year history in the same industry/line of work is required in most instances but 

it’s not a universal rule.

Recent graduates can satisfy the two year requirement by providing proof of schooling with a degree 

for the line of work you are now

employed in.

Active duty members do not need a two year history as long as the minimum service requirement for 

eligibility has been met.

Self employed borrowers must always have a two year history of self employment and must show a two  year history of filed tax returns to meet the 24 month requirement.

Income Calculations

If you are salaried, your base income will be used to qualify you for the loan.

However, if you are an hourly employee with varied hours, more than likely, your income will be 

averaged over an extended period such as 18 or 24 months depending on the situation.

Overtime, bonuses, commission and part time employment must have a 24 history in order to be 

included in the qualifying income. 

The income will be averaged out over 24 months. Verification of 

likelihood to continue will also be required.

Non taxable income can be grossed up to account for the non-taxable status.

Retirement, Disability, alimony and child support income does not require a 2 year history but 

verification that it will continue for at least 3 years is required in order for it to be included.

ASSETS

No down payment does not mean no cash needed

VA does not require additional cash to cover a certain number or mortgage payments or unplanned 

expenses (cash reserves), however, your ability to accumulate liquid assets and the amount of 

assets currently available is taken into consideration in the overall credit worthiness analysis.

Allowable source of funds

Funds for your down payment, closing costs and other expenses can come from:

•    Checking/savings accounts

•    Investment accounts

•    Retirement account

Gift funds from a relative are an allowed source of funds to cover down payment and or closing 

costs.

The gift will need to be verified and paper trailed via bank statements and a gift letter will need 

to be signed

by your and the gift donor .

Funds from unsecured loans (signature loans, credit card advances) or funds that can not be 

documented are not acceptable source of funds.

Federal regulations require that all deposits into your account be documented.

In the instance of payroll deposits, nothing will need to be done if the deposit shows as a Direct 

Deposit from your employer.

All other deposits will need to be explained and documented.

A debt to income ratios

-A debt to income ratios is the percentage of your total debt obligation, including the new estimated

mortgage payment, all debts shown on your credit report, as well as alimony, child support etc, as

compared to your gross qualifying income.

EXAMPLE

The rule of thumb is that your debt to income ratio should not exceed 50% of the usable, gross monthly

income. However, higher percentages can be approved.

In addition to the debt to income ratio requirements, VA also has residual income requirements. VA residual

income looks at how much income is available after all monthly liabilities, including tax withholdings,

utilities and child care, are accounted for.

Residual Income By Region

For loan amounts of $80,000 and above

Family

Size

Northeast Midwest South West

1 $450 $441 $441 $491

2 $755 $738 $738 $823

3 $909 $889 $889 $990

4 $1025 $1033 $1033 $1117

5 $1062 $1039 $1039 $1158

over 5 Add $80 for each additional member up to a family of

seven

2400/5000= 48%

Deferred student loans

If student loan repayments are scheduled to

begin within 12 months of the date of loan

closing, the anticipated monthly payment will

be included.

If you are able to provide evidence that the

loan(s) will be deferred for a period outside

that time frame, the payment will not be

included.

Qualifying income: $5000

New mortgage payment: $2000

All other obligations: $400

Monthly debt payments

The payments shown on

your credit report will be

used to qualify you. If the

payments are incorrect,

you will be asked to

provide proof of the correct

payment.

Co-signed loans

If you co-signed for someone on a loan and

that loan is showing on your credit report, the

payment will be included in the ratios unless

you are able to provide evidence that the other

person on that loan has been making the

monthly payments from an account that you

are NOT a co-owner on.

Alimony/child support

You will be expected to

truthfully declare that

you pay alimony or child

support. You will be asked

to provide your divorce

decree and/or child support

order to verify the amounts.

Non-purchasing spouse

You should be aware that if you purchasing a home

in a community property state such as California

and are married, your spouse’s credit report will be

required. His/her debts will be included in the ratio

calculations even if he/she is not going to be on the

purchase or loan.

Home

Documentation Checklist

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

Fill out my form!

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Mortgage Checklist Documents for Approval

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Mortgage Checklist Documents for Approval: Required for all Borrowers Pre-Approval Required Documents W-2’s (2 years) Drivers License Tax Returns (2 years) Bank Statements (2 months- ...

Kentucky VA Mortgage Checklist Documents for Approval

Required for all Borrowers

Pre-Approval Required Documents W-2’s (2 years)

Drivers License

Tax Returns (2 years)

Bank Statements (2 months- all accounts)

Employed Borrowers (with a W-2) Paystubs (totally one month) Retirement Statement (most recent)

*SSI Disability Requirement - SSI Reward Letter

Self-Employed Borrowers

(1099/Schedule C/Schedule S, etc.)

Tax Returns (2 years; Personal and business with statements and schedules)

Retirement Statement (most recent)

*SSI Disability Requirement - SSI Reward Letter

Veteran (VA) Borrowers

Pension Reward letter

Social Security Reward Letter Social Security Card

Retired Borrowers

Social Security Reward Letter & 1099 2 years W-2’s (where applicable) Social Security Card

Retirement Statement (most recent 2 months)

Social Security Income Borrower

VA Benefits Award Letter Social Security Card

Retirement Statement (most recent 2 months)

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.

2. 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.  

3. 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.

• Kentucky VA Lender Appraisal Processing Program (LAPP) lenders can process loans faster than other lenders. Kentucky VA LAPP lenders do not need to send any paperwork to VA until after the home sale is closed. VA's long-standing policy is not to recommend any specific lender.

• 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.

4. 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.

5. 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. 

6. 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.

• 
  

• A List of Allowable and Unallowable VA Closing Costs.    

7. 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  👇

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







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 

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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/

Kentucky VA Mortgage Loan FAQ

Kentucky VA Mortgage Loan FAQ


Frequently asked questions about Kentucky VA loans for purchases

Are you associated with the VA?

No. Key Financial Mortgage is not a part of, nor are we affiliated with, the VA. The Veteran's Administration is a government agency, not a lender. The VA simply insures the mortgage; they do not loan the money. Key Financial Mortgage is a licensed loan mortgage broker in the State of Kentucky (NMLS#1800). I am a licensed loan officer, Joel Lobb, in the state of Kentucky NMLS#57916


What is a VA mortgage?

A VA mortgage is a guaranteed loan made by banks, savings and loans, or mortgage companies to eligible veterans for the use of purchasing a home. The guaranty means the lender is protected against loss if you fail to repay the loan as the VA will pay the lending institution. The guaranty also allows you to purchase the home without a down payment.



Does my VA entitlement guarantee that I will get approved for a home loan?

No, it does not. Each lender has their own set of policies in regards to loan approval. But each lender must comply with VA income and credit standards.



When I purchase a home with a VA mortgage, how much do I need to put down?

You can purchase your home using VA status with $0 down.



How much can I borrow?

You can finance 100% of the home's value up to $417,000. Remember, your mortgage company must approve the total amount borrowed.



Is getting a Kentucky VA loan easier than a conventional mortgage for first time homebuyers?

Credit and income standards are not as strict with VA loans, making the approval process easier. But if you don't have established credit, getting approved for a loan can sometimes be more difficult then those with established credit.



If I don't put 20% down, will I have to pay Private Mortgage Insurance (PMI)?

No. Because the loan is backed by the government, you are not charged PMI.






How come not every mortgage company or bank offers VA loans?

The Department of Veteran Affairs requires companies who offer VA loans to go through a thorough approval process.


How do I qualify for a VA mortgage loan?

The first step is to obtain a Certificate of Eligibility.



How do I get a Certificate of Eligibility?

Complete a Request for a Certificate of Eligibility Form (VA Form 26-1880). Then, submit the completed form to the Winston-Salem Eligibility Center along with proof of military service. It is sometimes possible for the VA to establish eligibility without proof of service; however, to avoid delays, it is best to provide the information.



What is the address of the Winston-Salem Eligibility Center?

VA Loan Eligibility Center

PO Box 20729

Winston-Salem, NC 27120



For overnight delivery:

VA Loan Eligibility Center

251 N. Main Street

Winston-Salem, NC 27155



Can you, as my lender, help me with my Certificate of Eligibility?

Yes. We have access to the portal and can establish eligibility and issue a Certificate of Eligibility online very quickly.



Is there a fee to get pre-qualified for a loan from a lender?

No. Pre-qualification is free.



Is the surviving spouse of a deceased veteran eligible for the home loan benefit?

The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability, is eligible for the home loan.



Are the children of a living or deceased veteran eligible for the home loan benefit?

No. Children are not eligible to use VA status for a home mortgage.



Is a guaranteed loan considered a gift from the VA?

No. Your VA home loan must be repaid the same as you would repay any other loan. If you do not make your house payments, you could lose your home to foreclosure.



Are VA loans available for a home outside of the United States?

No. Unfortunately, the current law only allows the VA to guarantee loans on property located in the United States.



If I've had a bankruptcy in the last few years, can I qualify for a Kentucky VA mortgage?

Declaring bankruptcy does not disqualify you from a VA home loan.



Does one's credit score effect the interest rate?

Although your credit score can affect your interest rate with a conventional loan, it has no bearing on the rate for a VA loan.



Do I have to pay a fee for a Kentucky VA home loan?

Yes. The VA funding fee is required by law. The fee was established as a way for the veteran who obtains the VA home loan to contribute toward the cost of the benefit to decrease the cost to taxpayers. The funding fee will be slightly higher for second time users based on the idea that these borrowers have already had a chance to use the benefit once. In addition, prior users have had time to accumulate equity or save money.



Can I reduce my funding fee?

A first or second time user who makes a down payment of at least 5% will pay a reduced funding fee of 1.5%.



Do I still pay a VA funding fee if I'm a disabled veteran?

If you are rated as being 10% disabled, or higher, you will be exempt from paying the VA funding fee. If you qualify, be sure to inform your lender when starting the loan process.



Does everyone pay a VA funding fee?

No. If you are rated as being 10% disabled, or higher, you will be exempt from paying the VA funding fee. In addition, a surviving spouse of someone killed in the line of duty or someone that died from an injury sustained in the line of duty is not required to pay the fee either.



If I use my VA status to purchase a house, do I have to occupy the premises?

Yes. You must certify that you intend to occupy the property as your home based on current law. This requirement is fulfilled if you actually move in to the house when the loan is closed or within a reasonable time afterward.



If I'm currently on active duty and deployed, can I still qualify for a VA loan?

Yes, if the house is your spouse's primary residence.



Can a veteran join with a non-veteran who is not a spouse in obtaining a Kentucky VA loan?

Yes, this can be done, but the guaranty is based only on the veteran’s portion of the loan. The guaranty cannot cover the non-veteran's part of the loan. Ask your loan officer if they accept applications for this type of joint venture.



What happens to the mortgage loan if the veteran dies before it is paid off?

If the home loan is not paid in full in the case of death, the surviving spouse or any other co-borrower must continue to make the payments. If there is no co-borrower, the loan becomes the obligation of the veteran's estate.



Does my veteran home loan entitlement have an expiration date?

No. Your loan entitlement is a lifetime benefit you are provided for serving your country.



Is it possible to have two VA loans at once?

Generally, no it is not possible. That being said, there are some unusual circumstances where it may be a possibility. Ask your lender.



Will I pay closing costs with a Kentucky Mortgage VA loan?

Yes. All VA loans have closing costs. You may be able to obtain a loan where you do not pay lender fees, but you will still have to pay all third party fees and title expenses.



What is the difference between closing costs and pre-paid items?

Closing costs are costs related to underwriting, attorney fees, title insurance, and any other item associated with setting up your loan. Pre-paid items, though, are costs associated with maintaining your loan. These fees include setting up escrow for taxes and insurance. In addition, any interest your loan will accrue from closing up until the first day of the following month is included in the pre-paid items.



Is there a pre-payment penalty on a Kentucky
Mortgage VA loan?

No. You can pay off the loan partially or in its entirety prior to its term payoff date without a penalty.



Frequently asked questions about VA loans for refinance


What is a stream line refinance?


A streamline refinance is a mortgage refinancing option strictly for those that used their VA status when obtaining their original mortgage. With a streamline refinance, you can refinance your original mortgage to a lower interest rate with minimal effort and very little or no out-of-pocket expense.



Can I take cash-out with a VA streamline refinance?

No. A VA refinance does not allow you to receive any cash at closing, but you can roll in any costs involved with refinancing your loan.



Is the surviving spouse of a deceased veteran eligible for the interest rate reduction refinance loan?

Yes. A surviving spouse who obtained a VA home loan with the veteran prior to his/her death, regardless of the cause of death, may obtain a VA guaranteed interest rate reduction refinance loan.



How much can I borrow with a streamline refinance?

You can borrow the amount you currently owe on your home without needing to go through an underwriting analysis or get a new appraisal.



Do I need my certificate of eligibility for a streamlined refinance?

No. Since you had your certificate of eligibility when you received your original VA home loan, then you do not need to provide it again when your refinance.





Fill out my free mortgage prequalification form by clicking here for a VA Loan in Ky!