Category: Funding Fee Chart

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).
 

Kentucky VA Mortgage Funding Fees Reduced for 2023

Kentucky VA Announces Reduced Funding Fees


Kentucky VA Announces Reduced Funding Fees
Effective with loans closing on and after 04/07/2023, VA has announced new lower loan fee rates for Purchase and Cash Out Refinance loans. There is no change to the funding fees for other Kentucky VA Home Loan Types. 

  • VA Purchase / Construction Loans
    • First Use
      • Down Payment Amount:
        • Less than 5%: Funding Fee 2.15%
        • 5% or more down payment: 1.5%
        • 10% or more down payment: 1.25%
    • Subsequent Use
      • Down Payment Amount:
        • Less than 5%: 3.3%
        • 5% or more down payment: 1.5%
        • 10% or more down payment: 1.25%
  • VA Cash-Out Refinance
    • First Use: 2.15%
    • Subsequent Use: 3.3%
  • Other VA Home Loan Types
    • Interest Rate Reduction Refinance Loan (IRRRLs): 0.5%
    • Loan Assumptions: 0.5%

Please note the following:

  • For standard purchase loans, the reduced funding fee is based on the sales price. 
  • For construction purchase loans, equity in the secured property may be used as a down payment for calculating the reduced funding fee.

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.