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 

Privacy Policy

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%

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 

Privacy Policy

Credit Karma DOES NOT give you FICO scores! Which is what mortgage lenders use.

Great information to share with your clients that uses Credit Karma. A lot of people do not know that the Credit Karma app is a Vantage Score.

Credit Karma is NOT Free!

Credit Karma makes money off of the personal information you volunteered!

Credit Karma is NOT a credit monitoring site! - They collect your information from the credit agencies to create targeted campaigns based on your personal information which makes Credit Karma an affiliate marketing site!

Credit Karma DOES NOT give you FICO scores! Which is what mortgage lenders use.

Credit Karma provides you with Vantage scores (Not heavily used by lenders)

Credit Karma buys your information for pennies on the dollar, this is how they are able to provide you with updates every 7 days.

Why?... To get you to look at your scores and their AFFILIATE offers! You know, the offers for those credit cards that say you have a fair, good or very good chance of being approved for....

Have you noticed they never say, "You have a bad or poor chance”?

Apply, get denied and now you have an inquiry on your credit profile.

For those of you that are seeing you have a "chance" of getting approved for an American Express think again... You would be surprised to know, American Express only pulls from Experian for credit cards?

Credit Karma DOES NOT give you Experian credit report or scores

While it’s common knowledge that mortgage lenders use FICO scores, most people with a credit history have three FICO scores, one from each of the three national credit bureaus (Experian, Equifax, and TransUnion). 

• Which FICO Score is Used for Mortgages?

Most lenders determine a borrower’s creditworthiness based on FICO® scores, a Credit Score developed by Fair Isaac Corporation (FICO™). This score tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk. FICO scores have different names at each of the three major United States credit reporting companies. And there are different versions of the FICO formula. Here are the specific versions of the FICO formula used by mortgage lenders:

• Equifax Beacon 5.0
• Experian/Fair Isaac Risk Model v2
• TransUnion FICO Risk Score 04

Lenders have identified a strong correlation between Mortgage performance and FICO Bureau scores (FICO score). FICO scores range from 300 to 850. The lower the FICO score, the greater the risk of default.

Which Score Gets Used?

Since most people have three FICO scores, one from each credit bureau, how do lenders choose which one to use?

For a FICO score to be considered “usable”, it must be based on adequate, concrete information. If there is too little information, or if the information is inaccurate, the FICO score may be deemed unusable for the mortgage underwriting process. Once the underwriter has determined if a score is usable or not, here’s how they decide which score(s) to use for an individual borrower:

• If all three scores are different, they use the middle score
• If two of the scores are the same, they use that score, regardless of whether the two repeated scores are higher or lower than the third score

Lenders have identified a strong correlation between Mortgage performance and FICO Bureau scores (FICO score). FICO scores range from 300 to 850. The lower the FICO score, the greater the risk of default.

If it helps to visualize this information:

Identifying the Underwriting Score
Example	Score 1	Score 2	Score 3	Underwriting Score
Borrower 1	680	700	720	700

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/

 

 

 

—

 

NMLS Consumer Access

 Accessibility Statement

Privacy Policy

 

 

 

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

 

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). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation

 

How do collections and charge offs on the credit report affect a Kentucky VA Mortgage Loan Approval?

In order to get approved for a Kentucky VA loan with outstanding collections and charge offs listed on

the credit report, the VA underwriter will want to know the following about them:

Collections & Charge Offs are two different things.  Below is what VA saying about them:

 

Collection Accounts

Isolated collection accounts do not necessarily have to be paid off as a condition for loan approval. A credit report may show numerous satisfactory accounts and one or two unpaid medical (or other) collections. In such instances, while it would be preferable to have collections paid, it would not necessarily be a requirement for loan approval.

However, collection accounts must be considered part of the borrower's overall credit history and unpaid collection accounts should be considered open, recent credit.

Borrowers with a history of collection accounts should have re-established satisfactory credit in order to be considered a satisfactory credit risk.

While VA does not require that collection accounts be paid-off prior to closing if the borrower's overall credit is acceptable, an underwriter must address the existence of the collection account(s) with an explanation on VA Form 26-6393, Loan Analysis, for excluding the negative credit history they represent.

If the collection account is listed on the credit report with a minimum payment, then the debt should be recognized at the minimum payment amount.

Charged off Accounts

These accounts are typically collections in which the creditor is no longer pursuing collection of the account. The underwriter must address the circumstances regarding the negative credit history when reviewing the overall credit of the borrower(s).

 

 
2 different topics best if you can send me credit to review. 

 

·         Charged off accounts generally ignored

·         Collection accounts on Federal debt are a big issue so we careful there

·         Collections not required to be paid off unless they are extremely high

·         Manual Underwrite we do require an LOE from Veteran for collections

·         What happened, what they did to resolve, what are they doing in the future to either resolve or to prevent this from happening and finally if they are going to enter into a payment plan or not.  Ultimately on the resolution of the collection the UW does not care but VA requires that as part of LOE.

 

Hope this helps send me credit for full evaluation.

 

The VA underwriter will want to verify the Kentucky Mortgage Veteran has the ability to pay these items or will want to know how they were paid off before closing.

Any collection or charge off showing as a judgement or lien on the VA mortgage applicant's credit report, must be paid before closing. These affect the title and must be paid before the mortgage is recorded.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

This website is not affiliated with any government agencies, including the VA. NMLS ID #57916 (www.nmlsconsumeraccess.org)

Kentucky Mortgage Guidelines for VA, FHA, USDA and Conventional Mortgage Loans

Kentucky VA Mortgage Loans

   • VA IRRRLS NO FICO 

   • Minimum FICO 550 on full files OR true NO FICO

   • Manual underwrite to a 580 FICO

   • Cash out to 100% LTV

   • Manufactured homes allowed, double wide or bigger

   • VA IRRRL NO LTV cap

   • VA IRRRL, unlimited late payments (loan must be current and last 6 payments on time)

   • VA IRRRL, allow odd terms on fixed loans

   • VA purchase up to 100% LTV

   • VA escrow holdbacks allowed

Kentucky FHA Mortgage Loans

   • FHA streamlines NO FICO

   • Minimum FICO 550 on full files 

   • Manufactured homes allowed, double wide or bigger

   • FHA streamlines, NOO allowed. NO Appraisals or AVMs

   • FHA 203(k) & (h) allowed

   • FHA escrow holdbacks allowed

Kentucky USDA Mortgage Loans

   • USDA Streamlines NO FICO

   • Minimum FICO 580 on full files OR true NO FICO

   • Manufactured homes allowed, double wide or bigger

   •  Streamlined assist 

   •  USDA escrow holdbacks allowed

Kentucky Conventional Mortgage Loans

   • Minimum FICO 580

   • Manufactured homes allowed, double wide or bigger

   • Up to 97% LTV (allow for the 3% to be gifted)

   • LPMI up to 97% LTV

   • LPMI and Regular MI allowed on investment properties

   • Unlimited financed properties (follow Fannie Mae guidelines)

   • HARP DU Refi Plus (allow for MI to be transferred) Fannie

   • HARP Open Access Relief loan (allow for MI to be transferred) Freddie

   • Home One, HomeReady, Home Possible

   • 80/10/10 Program with HELOC 2nd

I hope this gives you some useful input to help guide your decision making. Give me a call if you have more specific questions! Thanks so much 

 

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/

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky First-Time Home Buyer Programs of 2022

Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky First-Time Home Buyer Programs of 2022: Kentucky First-Time Home Buyer Programs  There are basically 4 mortgage programs for first time home buyers in Kentucky to consider: 1....

100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: Credit Scores Required for Kentucky Mortgage Loan ...

100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: Credit Scores Required for Kentucky Mortgage Loan ...:

Gift Funds & Gift of Equity for Kentucky FHA Mortgage Loan Approval Requirements

 Kentucky FHA Gift of Equity and Gift Funds for Down Payment Requirements

Gifts may be provided by:

•  Borrower's family member*;
•  the borrower's employer or labor union;
•  a close friend with a clearly defined and documented interest in the borrower;
•  a charitable organization;
•  a governmental agency or public entity that has a program providing homeownership assistance to:
•      low or moderate income families; or
•      first-time homebuyers.

*Family member defined as:
•  child, foster child, parent, or grandparent; spouse or domestic partner;
•  legally adopted son or daughter, including a child who is placed with the borrower by an
authorized agency for legal adoption;
•  brother, stepbrother, sister, stepsister;
•  uncle or aunt
•  son-in-law, daughter-in­ law, father-in-law, mother­ in-law, brother-in-law, or sister-in-law of
the borrower.

Guidelines -  Personal Gift Funds

•      Primary residence 1-4 unit only
•     Funds may not be used to fulfill mandatory reserve requirements for manually underwritten
files.
•      No borrower funds are required for down payment.
•      Cash on hand is not an acceptable source of donor funds.

Documentation  - Personal Gift Funds

•      Gift letter - See Requirements in "Notable Agency Differences" Above
•      If the gift funds have been verified in the borrower's account, obtain the donor's bank
statement showing the withdrawal and evidence of the deposit into the borrower's account.
•      If the gift funds are not verified in the borrower's account, obtain the certified check or
money order or cashier's check or wire transfer or other official check, and a bank statement
showing the withdrawal from the donor's account.
•      If the gift funds are paid directly to the settlement agent, verify that the settlement
agent received the funds from the donor for the amount of the gift, and that the funds were from an
acceptable source.
•      If the gift funds are being borrowed by the donor and documentation  from the bank or other
savings account is not available, have the donor provide written evidence that the funds were
borrowed from an acceptable source, not from a party to the transaction.
Regardless  of when gift funds are made available to a borrower, the lender must be able to make a
reasonable determination that the gift funds were not provided by an unacceptable source.  This
usually requires a copy of the donor's bank statement.

Guidelines -  Gift of Equity

•     Family member is ONLY eligible donor for gifts of equity
•      Limited to 85% LTV unless:
o      residence is currently selling-family member's primary residence or
purchasing family member has been renting residence 6 months prior to sales contract date.

Documentation -  Gift of Equity

Gift Letter -  See Requirements in "Notable Agency Differences" Above