Category: 2022 Kentucky VA Mortgage Guide

Kentucky VA Home Loan Program


Affordable home financing options for Kentucky VA borrowers on active duty and retired military members.

Your veteran and active-duty clients can now take advantage of fixed and adjustable rate VA loan programs. We are determined to get them the best rate possible in the shortest turn time.

Kentucky VA Mortgage Loan Program’s Key Features:

100% financing with no mortgage insurance (purchase only)
no minimum score but most lenders will want a 580 score or higher
41% DTI (up to 60% may be accepted with compensating factors)No Income verification for IRRRLVA funding fee applies to most veterans

 You can do a VA IRRRL on a property that the veteran no longer lives in
• Payoff debts at closing with seller concessions. When writing the offer, this
information goes in the “under additional provisions or other terms” section
• No seasoning requirement for being added to the title (No flip rule)
“As we express our gratitude, we must
never forget that the highest appreciation is not
to utter words, but to live by them.”
• Only type of loan where an SAR Underwriter can adjust the value after a
secondary review in Tidewater with a request from the borrower. That gives us
two chances to increase the value if it comes in under.
• You can have more than one at the same time.
• If the DD-214 is a Dishonorable Discharge, the Veteran can re-apply and get their
benefits reinstated and then buy their home. (Apply to the BCMR to upgrade on
basis of clemency)
• No max loan amount & no max amount of closing costs a seller can pay.
“Our debt to the heroic men and valiant women in the service
of our country can never be repaid. They have
earned our undying gratitude.”
• Time of service requirements can be appealed if they are discharged due to a
service-related disability
• Student loans in deferred status that go by old guidelines can be omitted.
• Disputes do not need to be removed to qualify. This is a good trick if you need a
couple extra points. (Disputing collections)
• Time of service requirements can be appealed if they are discharged due to a
service-related disability.

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.

Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky


 Expands VA Home Loan Eligibility for Certain National Guard Members in Kentucky


VA announced they are expanding eligibility for Kentucky VA home loan benefits for certain members of the Kentucky Army and Air National Guard to include current and former National Guard members, regardless of service dates, who meet the requirements outlined below effective for COE applications received on or after 01/05/2021.

Because VA is retroactively expanding these eligibility requirements applicants who may have been previously denied VA home loan benefits and now meet the requirements below for eligibility are encouraged to reapply.

To be eligible the member must have performed not less than 90 cumulative dates of full-time National Guard duty, of which, at least 30 of those days must have been consecutive.

Full-time National Guard duty:

  • includes training or other duty in the member’s status as a member of the National Guard for which the member is entitled to pay from the United States or for which the member has waived pay from the United States.
  • does not include inactive duty, such as monthly drills. It also does not include basic or initial training.

Processing delays can be avoided when submitting a COE application (VA Form 26-1880) by listing in block 9c any active duty time served and by providing copies of one or more of the following documents as evidence of the active duty time served:

  • DD Form 214, Report of Separation: showing active duty dates, types of discharge, and the authority under which the applicant was called to serve.
  • DD Form 220, Report of Active Service: with an order for the same period.
  • For National Guard members still servicing on active duty: a current Statement of Service which identifies the National Guard member by name and social security number and provides:
    • the date of entry for the current active duty period, and
    • the duration of any time lost (or a statement noting there has been no lost time).
    • Note: the Statement of Service should also specify the authority under which the National Guard member was called to serve. Generally, this is a document written on military letterhead and signed by the Commanding Officer.
  • NGB 23 Form, National Guard Bureau Retirement Credits Record or a copy of the retirement points statement: showing one or more periods in which the National Guard member served on active duty.
  • Any other documents to support the activation may be submitted.