Category: Guide to Kentucky VA Loans

VA Mortgage Refinance Kentucky


 

VA Loan Requirements for Kentucky

The Louisville, Kentucky VA mortgage refinancing programs offer attractive benefits of eligible VA veterans and active-duty personnel. The rate and term program is designed to refinance an existing qualified mortgage (regardless of type) into a Louisville Kentucky VA loan product. So the existing loan could be a conventional, FHA, Sub-Prime, or other product. So long as the new loan amount and property qualify under current Louisville Kentucky VA program guidelines.

The second financing option involves Louisville Kentucky’s cash-out refinancing. As an eligible VA borrower, you can take advantage of the equity in your home for a multitude of reasons. Pay off a second mortgage, take cash-out for a motor home, pay for college tuition, etc. The guidelines for borrowing under the VA cash-out loan program vary, so give us a call to find out what options are available for you.

The third Louisville Kentucky refinances option is for those who have a Louisville Kentucky VA loan and are just looking to improve their interest rate. If this is you, you should know that the Louisville Kentucky VA offers an attractive Streamline Louisville Kentucky Refinance option (called the VA to VA or IRRRL Loan Product). One of our Louisville Kentucky VA loan specialists can take a quick look to see if today’s rates work for your streamline fixed-rate loan or Louisville Kentucky ARM refinance.

The VA has established two basic critical guidelines for qualifying for a Louisville Kentucky VA streamline refinance loan:

  • Except when Louisville Kentucky refinancing an existing Louisville Kentucky VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate
  • And, when Louisville Kentucky refinancing from an existing VA ARM loan to a fixed rate, the interest rate may increase.

The best part is, that in many instances, no appraisal or credit underwriting package is even required by VA. In fact, your certificate of eligibility is also not required. We’ll simply use the VA’s e-mail confirmation procedure for interest rate reduction refinance in lieu of a certificate of eligibility.

IRRRL Loans

An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the loan origination specialist to pay the costs. One more thing to remember–the interest rate on the new loan must be lower than the rate on the old loan, unless you refinance an ARM to a fixed rate mortgage.

An Louisville Kentucky  IRRRL can be done only if you have already used your eligibility for a VA loan on the property you intend to refinance. It must be a Louisville Kentucky VA to VA refinance, and it will reuse the entitlement you originally used. You may have used your entitlement by obtaining a Louisville Kentucky VA loan when you bought your house, or by substituting your eligibility for that of the seller if you assumed the loan. If you have your Certificate of Eligibility, take it to the lender to show the prior use of your entitlement.

The occupancy requirement for an IRRRL is different from other VA loans. When you originally got your Louisville Kentucky VA loan, you certified that you occupied or intended to occupy the home. For an IRRRL, you only need to certify that you previously occupied the home.

VA To VA Refinance

The loan may not exceed the sum of the outstanding balance on the existing Louisville Kentucky VA loan, plus allowable fees and closing costs, including the funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan.

Adding all of these items into your loan may result in a situation in which you owe more than the fair market value of the house and will reduce the benefit of refinancing since your payment will not be lowered as much as it could be. Also, you could have difficulty selling the house for enough to pay off your loan balance. Your loan origination Specialist will gladly let you know when they believe it makes no sense for this loan program.

Finally, no loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be the first mortgage.

While all of this sounds rather complicated, it’s important to know that we’re here to take care of all of the hassles for you and explain the process to you in plain English. Just give us a call today and we’ll be happy to assist!

Kentucky VA Home Loan Guide

 

Related articles

 

For your free credit report and analysis call us today at 502.

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

 

 

Kentucky VA Loans


Kentucky VA Loans.

via Kentucky VA Loans.

Louisville Kentucky VA Home loans


VA Loans Louisville Kentucky

VA Loans in Louisville Kentucky | Ky Va home loans info

What are VA Home Loans?

VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today’s VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of a homes current equity.

What are the eligibility requirements for a VA Loan in Kentucky?

Veterans Affairs loan guidelines use two methods of income qualification in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran’s total debt should not exceed 41% of the veteran’s total income. Most lenders will require at least a 620 credit score for a VA Loan approval.

How much can I borrow?

The maximum VA Mortgage amount is determined by:

Beginning in 2020, there is no Maximum VA Loan in Kentucky:
Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value.

What will the down payment and closing costs be?

Kentucky VA loans have zero money down up to $417,000 in most counties.

What property types are allowed for VA Loans in Kentucky?

VA Loans may be used to purchase or refinance single family residences and VA approved condo projects if the property is the veteran’s primary residence.

Can I do a VA refinance in Kentucky?

Three kinds of VA Refinance programs are available for veterans in Kentucky.

Rate/Term VA Refinance

The Rate/Term VA Refinance can be used to refinance a conventional, FHA or subprime mortgage into a stable, fixed rate VA Loan.

VA Cash-Out Refinance

A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a homes current value and take cash out for any reason.

Streamline Refinance

The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable rate mortgage into a fixed rate. A VA Streamline Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

 

What factors determine if I am eligible for a VA Refinance Loan?

VA refinance loans use two methods for income qualification purposes in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran’s total debt should not exceed 41% of the veteran’s total income. Most lenders will require at least a 620 credit score for a VA Loan approval.

Why choose a VA Home Loan?

Kentucky VA Mortgages require no down payment.There are no prepayment penalties for VA Home Loans.An Kentucky VA Loan is fully assumable, provided the person assuming is qualified.
VA Mortgage Loans have no PMI premiums.
A VA Mortgage Loan is eligible for non-credit qualifying, Streamline Refinance or “IRRRL”.
A VA Home Mortgage is available all areas of the country, provided a market exists for the property and the home meets VA’s property standards.
A VA Home Loan may be used to purchase or refinance a new or existing home.
Kentucky VA Loans are offered at terms of 15 or 30 years.

VA Refinance Questions & Answers

1. What are the guidelines for a VA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 90% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be 100% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.
2. Why should I consider refinancing into a VA-insured mortgage?
VA refinance mortgages do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.
3. What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other financing costs into your new VA mortgage, then you should ask your current lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.
4. Does it matter that the value of my home is now less than what I still owe?
Not to VA, but the current mortgage lender considering the refinance would have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.
5. I have already obtained one VA loan. Can I get another one?
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.
6. Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.
7. Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, please contact us.