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.

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:

  1. No Down Payment – VA is a true 100% financing loan with no minimum investment required.
  2. 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.
  3. 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.
  4. Renovation loans – We can do purchase and refinance loans that roll the cost of minor and cosmetic repairs into the loan amount.
  5. 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!

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