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VA Updated Funding Fee Information


VA Updated Funding Fee Information – WebLGY Release
VA has announced that release 21.10, which was previously scheduled for release on 7/20/2021, has been postponed to 7/27/2021.

As previously announced, VA has issued a Circular providing additional details regarding the enhancement made to the COE and WebLGY providing more certainty regarding whether to collect the funding fee. A funding fee must not be collected from individuals who are by statue provided a waiver of the funding fee. Lenders are to ensure before loan closing, whether a borrower is exempt from having to pay a funding fee. The statutory waiver of funding fees applies to the following:

  • A veteran receiving disability 
  • A surviving spouse
  • A veteran who is eligible to receive compensation as a result of pre-discharge disability 
  • Purple Heart Member of the armed forces 

A COE is not necessary for IRRRLS. The enhancement to VA’s systems provides for more accurate funding fee exception information under the appraisal case initiated screen. Lenders can print this verification at any time throughout the loan origination process. This enhancement will expedite the loan origination process for IRRRL borrowers.Refer to VA Release 21.10 and Circular 26-21-11 for more details.

Kentucky FHA Mortgage Insurance Requirements and Down Payments


FHA Minimum Down Payment
Effective January 1, 2009, the minimum down payment required on an FHA loan is 3.5% of the purchase price.

Any deposit (usually called earnest money) that you are required to give to your realtor at the time of an accepted purchase contract will count towards your 3.5% down payment. The appraisal fee collected at the time of inspection will also count towards your 3.5% down payment.

If, for example, you are purchasing a $100,000 house, your minimum down payment required would be $3,500. If your seller/realtor required you to put down $500 in earnest money on top of the $300 for your appraisal, your down payment would be lowered to $2,700 ($3,500 – $500 – $300 = $2,700).

Down Payment As A Gift

If a borrower does not have 3.5% of his or her own money to put down towards the home purchase, FHA allows that amount to be in the form of a gift to the borrower. The gift must be from a qualified source, such as a family member, employer or significant other. The source of the gift must be able to provide proof that they have the money in an account registered in their name prior to transfer to the borrower.

In some areas, this gift may also be grant money from a state or local municipality, if such funds are available.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans's avatarLouisville Kentucky Mortgage Loans

FHA Minimum Down Payment

Effective January 1, 2009, the minimum down payment required on an FHA loan is 3.5% of the purchase price.

Any deposit (usually called earnest money) that you are required to give to your realtor at the time of an accepted purchase contract will count towards your 3.5% down payment. The appraisal fee collected at the time of inspection will also count towards your 3.5% down payment.

If, for example, you are purchasing a $100,000 house, your minimum down payment required would be $3,500.  If your seller/realtor required you to put down $500 in earnest money on top of the $300 for your appraisal, your down payment would be lowered to $2,700 ($3,500 – $500 – $300 = $2,700).

Down Payment As A Gift

If a borrower does not have 3.5% of his or her own money to put down towards the home purchase, FHA allows that amount to…

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VA Updated Guidance for Borrowers Affected Financially by COVID-19


VA Guidelines for Covid-19


Income Verification

Lenders may continue to use good judgement and flexibility when verifying a borrower’s income and determining whether that income is stable and reliable and will follow standard VA guidelines.
Third-party services may be used to provide employment and income verification (please note additional fees associated with these services cannot be charged to borrower).
Note: The VOE flexibilities previously announced by VA have not been extended and did expire 04/01/2021.

Income Analysis

VA’s guidelines generally require income to be stable and reliable for 2 years. However, borrowers’ income impacted by COVID-19 may continue to be reviewed as follows:
Any period in a borrower’s income (i.e. furlough, curtailment of income, etc.), should not be considered a break in employment or income provided they have returned or anticipated to return to work in the same capacity and income levels. In addition to standard verification documentation Borrower’s should provide furlough letters where applicable.
VA continues to encourage proactive measures in documenting and obtaining evidence of their analysis and justifications for all Borrower’s, especially borderline cases.
 This may proactively address questions that VA may otherwise ask and prevent a loan level audit of a loan.
Remote Online Notarization (RON)

Additionally, ensure that the VA-guaranteed home loan is secured by a first lien on the property being used as collateral.