2022 Kentucky VA Loan Guide Updates – Page 18

Kentucky VA Lending Guide

Kentucky VA loans are typically the best solution for our honored veterans and service members. Contrary to popular belief, VA loans are fairly easy to process and tend to not be any more complicated than any other loan program that we offer.

Here are some of our favorite features of Kentucky VA loans:

No Down Payment – VA is a true 100% financing loan with no minimum investment required.
No Monthly Mortgage Insurance – VA loans do not require monthly mortgage insurance, providing significant cost savings to our Veterans. They do require an upfront Funding Fee of 0 to 3.6% that is paid directly to the VA. This funding fee is financed into the loan and may be waived for some buyers based on their scenario.
Credit scores – Interest rates and underwriting requirements are less credit score sensitive than other loan programs. In some scenarios, we are able to lend to buyers with scores in the mid-500s. Buyers without a credit score may be eligible with additional requirements.
Renovation loans – We can do purchase and refinance loans that roll the cost of minor and cosmetic repairs into the loan amount.
Property Types – VA Loans can be used on 1-4 unit properties, primary residence only. They can also be used on VA approved condominiums and qualifying manufactured homes.

VA Loans are issued by federally qualified lenders and are guaranteed by the United States Veterans Administration. VA Loans are available to military personnel and veterans, including Reservists and members of the National Guard. Surviving spouses may be eligible in specific circumstances.

VA Loan eligibility is determined using the Certificate of Eligibility (COE) document. We work directly with the VA on the buyer’s behalf to obtain this document. A buyer can take advantage of the VA loan program more than once!

No photo description available.

Kentucky VA Mortgage Loan Limits for 2021 for Kentucky Veterans

New Kentucky VA Mortgage Loan Limits for 2021 for Kentucky Veterans

VA loans no longer have a maximum loan amount.

Veterans, active-duty service members, National Guard members, and surviving spouses (those who qualify) will be able to get a VA home loan for any amount, with no required down payment.
Income guidelines are still in place.
With loan limits now gone you can borrow 100% of what you financially qualify for.
Loan limits will still be applied if you have one or more active VA loans or if you’ve defaulted on a previous VA loan.
Mortgage insurance is not needed..

Funding Fees for VA Loans Are Not Going Away

Even with the loan limits going away, there is still an upfront funding fee for all VA loans (unless you are getting a VA home loan as an active-duty service member who’s received a Purple Heart). 2020 brought changes to these funding fees.

Here’s the updated funding fee percentages for VA loans:

To explain further, the fee for first-time use went up from 2.15% in 2019 to 2.30% in 2020. The fee for subsequent use went up from 3.3% in 2019 to 3.6% of the loan in 2020. These fees will stay in place until 2022, and you can choose to pay the funding fee up front or just roll it into the total cost of the home loan.

Additional VA Loan Benefits:

You can reuse your VA mortgage benefits over and over
You don’t have to be a first-time home buyer
No pre-payment penalty so you’re free to consider future home purchases and refinancing options
Can be used to buy a house, condo, newly-built home, and other types of properties
Your eligibility never expires

How Do You Know If You’re Eligible for a VA Loan?

Eligibility is based on specific guidelines established through the U.S. Department of Federal Affairs. These guidelines are typically based on service and discharge requirements.