Category: Frequently Asked Questions

Qualifying for a Kentucky VA Mortgage Loan

A VA mortgage loan in Kentucky offers benefits like zero-down payment and competitive interest rates for eligible veterans and service members. Meeting criteria related to income, work history, debt ratio, military service, and property standards is essential. Working with an experienced mortgage professional can help secure the best terms for a VA loan.


A VA mortgage loan can be a fantastic option for eligible veterans and active-duty service members looking to purchase or refinance a home in Kentucky. Understanding the qualifying criteria is crucial to navigating the process smoothly and securing the benefits offered by VA loans.

Qualifying Criteria Overview: Here’s a breakdown of the key qualifying criteria for a Kentucky VA mortgage loan:

The qualifying criteria for a Kentucky VA mortgage loan in regards to income, work history, debt ratio, bankruptcy, foreclosure, time in service, loan limits, upfront funding fees, refinance, purchase, cash out refinance, down payments, property requirements in a chart or organizational chart, interest rates

CriteriaDetails
Income Stable income that supports the ability to repay the loan. VA loans typically have more flexible income requirements.
Work HistoryA consistent 2 year work history, though exceptions can be made for veterans transitioning to civilian employment.
Debt RatioVA loans generally allow for higher debt-to-income (DTI) ratios compared to conventional loans, typically up to 41%, but can be much higher with strong credit scores, residual income, and assets
BankruptcyGenerally, veterans must wait two years after a Chapter 7 bankruptcy discharge before being eligible for a VA loan.
ForeclosureVeterans may be eligible for a VA loan two years after a foreclosure.
Time in ServiceMinimum service requirements vary based on when and where the veteran served. Typically, 90 consecutive days during wartime or 181 days during peacetime are required.
Loan LimitsVA loan limits in Kentucky follow the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
Upfront Funding FeesVA loans often come with an upfront funding fee, which can vary based on factors like down payment amount, military category, and if it’s a first-time or subsequent use of the VA loan benefit.
Refinance OptionsVA loans offer several refinancing options, including Interest Rate Reduction Refinance Loans (IRRRL) and Cash-Out Refinance loans.
Down PaymentsVA loans are known for their zero-down payment option, making homeownership more accessible for veterans.
Property RequirementsVA-approved properties must meet certain standards, including being safe, sanitary, and structurally sound.
Interest RatesVA loans often have competitive interest rates, which can vary based on market conditions and individual factors.

Qualifying for a Kentucky VA mortgage loan involves meeting various criteria related to income, work history, debt ratio, military service, and more. Veterans and active-duty service members can benefit from the zero-down payment option, competitive interest rates, and flexible requirements offered by VA loans. Working with a knowledgeable mortgage professional like Joel Lobb can help navigate the VA loan process smoothly and secure the best terms possible.

Hope your day is full of sunshine😊

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

 

 

 

 
NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

 
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).
 

FREQUENTLY ASKED QUESTIONS FOR KENTUCKY VA MORTGAGE LOANS

KENTUCKY VA MORTGAGE LOANS


Kentucky VA Mortgage Lender
502-905-3708

What Does Having Basic Entitlement of $36,000 Mean?
The $36,000 does not represent the maximum loan amount you can obtain through the VA Home Loan Program. The figure merely provides evidence to your lender that you have full VA entitlement.
With this entitlement and underwriter approval, you can obtain a loan,
I Now Have My COE, What Do I Do Next?
 Contact any VA approved lender and start the loan process. Do note that the COE does not guarantee you a VA loan; you still must qualify based upon your income and credit.
 
How Do I Apply For a Loan?
VA does not do any direct lending, and as such VA does not accept loan applications from veterans. You must contact a VA approved lender in order to apply for a VA loan. For more information about VA loans, visit www.benefits.va.gov/homeloans/.
 
 
What is the VA Interest Rate?
VA does not establish interest rates or closing costs for VA loans. Rates are negotiable between you and your lender. It is advisable to obtain quotes from at least three different lenders.
What is the Minimum Credit Score Required for a VA loan?
VA has no minimum credit score requirement. However, the lender you choose to do business with may have such a requirement.
 
What Types of Property Does My COE Cover?
The VA Home Loan program guarantees loans for real property that is to be used by the veteran as a primary residence. The program does not cover vacation homes, vacant land, multiplexes in excess of four units, motor-homes, small business loans, or commercial buildings.
 
Can I Use My VA Entitlement to Refinance?
Yes. You can refinance any type of loan on your property using your VA entitlement.
 
 
Why Does My COE Reflect a Paid-in-Full Loan With No Restoration of Entitlement?
In order for entitlement to be restored, the prior VA loan must be paid in full and the property disposed of. If you no longer own the property, please state as such on your application form 26- 1880 and resubmit. Do note that you can obtain a restoration of entitlement without disposing of the property when the loan is paid in full on a one time basis
Joel Lobb
Senior  Loan Officer
(NMLS#57916)
text or call my phone: (502) 905-3708
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). Mortgage loans only offered in Kentucky.
l.

I have originated over 125 Kentucky VA Mortgage loans in my career. As a former Army Tanker, put my experience to work for you. I offer free VA Home loan approvals & local service. I hope you find this website informative and hope it can give you more confidence as you shop for your next Kentucky VA loan. I can be reached locally in Louisville Kentucky Text/call 502-905-3708 NMLS 57916 Equal Housing Lender. Not affiliated with VA or any other government agency

 
 

 

Kentucky VA Mortgage Sales Concessions – How Well Do You Understand This Guideline?

Kentucky VA Mortgage Sales Concessions – How Well Do You Understand This Guideline?


Kentucky VA Sales Concessions – How Well Do You Understand This Guideline?

Knowing these tips can help you save a loan!

VA limits Sales Concessions to 4%, but there is more to it than that!

What is a Sales Concession that is applied to the 4% limit?

• Buyer’s funding fee

• Prepaid taxes and insurance

• Gifts such as a television or microwave

• Permanent interest rate buy-down points

• Temporary buy-down funds

• Payoff of Credit Balances or Judgments [Yes, you read that correctly]!

HOWEVER……….

Not included in this limit are the following:

•Amounts paid on behalf of the Veteran by the lender or real estate agent.

•Or amounts paid by the seller towards the closing costs.

These amounts can be paid in addition to the Seller Concessions.

Example:

$200,000 loan amount x 4% = $8000 maximum seller concession.

The seller pays $4000 in closing costs [NOT included as part of the seller concession].

The lender pays $1500 in prepaid items [NOT included as part of the seller concession].

The Seller pays off a judgment for the borrower of $5500 [YES, this IS included as part of the seller concession].

The Agent pays $400 for the home inspection [NOT included as part of the seller concession].

So, the Veteran received $11,400 from a combination of the seller, lender, and Agent.

The seller contributed $9500, but only $5500 is considered part of the 4% seller concession limit. The other $4000 is closing costs, which are not included in the seller concession limit.

Therefore, the total seller concession was $5500, which is less than the maximum seller concession of $8000.

The key to VA sales concessions is understanding what IS and IS NOT included in the sales concession limit. Mastering this guideline will help you save a lot of loans!