Tag: Credit score

Kentucky VA Mortgage Loan Guide:

Are you a Kentucky veteran or active-duty service member dreaming of owning your own home in the Bluegrass State? The VA loan program is a powerful tool designed specifically to help you achieve that dream. With benefits like no down payment and no private mortgage insurance, it’s an incredible opportunity. But navigating the qualification process can feel overwhelming. That’s where I come in.

As your dedicated mortgage guide, I’ll break down what it takes to qualify for a VA loan in Kentucky and explain why working with me—Joel Lobb, Senior Loan Officer—will simplify your path to homeownership.


VA Loans in Kentucky: A Veteran’s Path to Homeownership

If you’re a veteran, active-duty service member, or eligible surviving spouse looking to buy a home in Kentucky, the VA loan program is one of the most powerful mortgage options available. Backed by the U.S. Department of Veterans Affairs, VA loans allow zero down payment, no monthly mortgage insurance, and competitive interest rates.

Kentucky, the VA loan program

Who Is Eligible for a VA Mortgage Loan in Kentucky?

To qualify, you need a valid Certificate of Eligibility (COE). You may be eligible if:

  • You served 90 consecutive days during wartime,
  • 181 days during peacetime,
  • Or 6 years in the Reserves or National Guard
  • Surviving spouses of service members may also qualify.

Need help getting your COE? Click here to contact Joel Lobb.

Credit Score Requirements for Kentucky VA Loans

The VA does not have a minimum credit score requirement, but most Kentucky lenders typically look for a FICO score of 580–620+. That said, manual underwriting is available for scores as low as 500 with strong compensating factors.

Have bad credit, collections, or charge-offs? VA loans are more forgiving:

  • Medical collections are often excluded.
  • Charge-offs do not always need to be paid.
  • Student loans are handled differently than FHA or conventional.

👉 Learn more: Kentucky VA Loan for Bad Credit

Work History and Income Guidelines

Most lenders prefer a 2-year stable work history, but gaps or job changes are acceptable with a written explanation.

Residual Income Requirement:

VA loans use residual income instead of front-end housing ratios. You must have enough income left over after all monthly obligations to cover living expenses.

Debt-to-Income Ratio (DTI):

Down Payment, Rates & Funding Fee

  • Down Payment: $0 required
  • VA Funding Fee: Financed into the loan (waived for disabled vets)
  • Interest Rates: Competitive, typically lower than FHA or Conventional
  • Loan Terms: 15, 20, 25, and 30 years available
VA Funding FEE Kentucky Mortgage Loan

Appraisal & Termite Requirements in Kentucky

Kentucky va loan termite requirements

Collections, Charge-Offs, and Student Loans

Bankruptcy, Foreclosure & Manual Underwriting

You can still qualify for a VA loan in Kentucky after:

  1. Chapter 7 bankruptcy: 2 years after discharge
  2. Chapter 13 bankruptcy: 12 months of on-time payments with trustee approval
  3. Foreclosure or short sale: 2 years from the event

If you don’t qualify through DU or LP, manual underwriting is an option. This requires stronger documentation, compensating factors like low DTI or extra assets, and no major credit issues in the last 12 months.

Closing Costs & Seller Concessions

How to Apply for a VA Loan in Kentucky

  1. Submit financial documents: pay stubs, W-2s, tax returns, bank statements
  2. Get COE and credit report pulled
  3. Start home shopping with a Realtor familiar with VA guidelines
  4. Lock in your interest rate and complete the underwriting process
  5. Close and move into your new home!
Kentucky va mortgage guidelines

Why Work with Joel Lobb?

With over 20 years of mortgage experience and a Army Veteran and more than 1,300 families helped, Joel Lobb is a trusted mortgage advisor for Kentucky veterans. His team provides:

Free same-day pre-approvals
Personalized service — no call centers
Expertise with manual underwriting
Help with credit improvement
Access to VA, FHA, USDA, and KHC down payment assistance programs

Call/Text: (502) 905-3708
Email: kentuckyloan@gmail.com
Website: MyLouisvilleKentuckyMortgage.com

Additional Resources (Internal Links)

👉 Ready to get started? Apply Now for a Kentucky VA Loan

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | 
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).

how to get a free mortgage FICO score (FICO Score 2, 4, or 5 for mortgage loan approval?


how to get a free credit score for a mortgage loan approval?

Kentucky VA Mortgage Loan information

VA loans in Kentucky, Kentucky VA mortgage, and VA home loans for veterans in Kentucky.


Kentucky VA Mortgage Loan Guide for Home Buyers

You’ve come to the right place if you’re a Kentucky veteran or an active military member. You are searching for VA loan information in Kentucky. VA loans offer unique benefits and flexibility, but many myths and misconceptions surround them. Let’s debunk these myths now. We will give precise information to help you make informed decisions when applying for a Kentucky VA mortgage loan.

Common Myths About Kentucky VA Loans

Myth #1: VA Loans Are Hard to Qualify For

Fact: VA loans have more flexible credit and income requirements than conventional loans. They allow higher debt-to-income (DTI) ratios and lenient credit score thresholds.

  • No Minimum Credit Score: The VA does not set a minimum score, but most lenders require 620. Some go as low as 580, though approvals for lower scores can be more challenging.

Myth #2: VA Loans Need a Down Payment

Fact: VA loans do not require a down payment for loans at or below the local conforming limit.

  1. Jumbo Loans: For higher loan amounts, down payment requirements depend on your VA entitlement:
    • Full Entitlement: No down payment required.
    • Partial Entitlement: Down payment needed to meet the 25% guarantee.

Myth #3: VA Loans Require PMI (Private Mortgage Insurance)

Fact: Unlike conventional loans, VA loans do not require PMI.

  1. This means you save monthly on your house payment which would otherwise be added to your mortgage payment.
  2. Note: Kentucky VA loans do have a funding fee, which can be waived for eligible disabled veterans.

Kentucky VA Loan Refinancing Options

Myth #4: You Can’t Refinance a VA Loan

Fact: VA loans are easier to refinance compared to conventional loans, thanks to programs like:

  1. VA IRRRL (Streamline Refinance): Reduces your interest rate with minimal paperwork. No credit check or appraisal required.
  2. VA Cash-Out Refinance: Allows you to access your home’s equity, subject to an appraisal and credit check.

VA Loan Entitlement & Multiple VA Loans

Myth #5: You Can Only Have One VA Loan

Fact: You can have multiple VA loans as long as you have remaining entitlement.

  • Entitlement Coverage:
    • Loans under $144,000: VA guarantees up to $36,000.
    • Loans over $144,000: VA guarantees up to 25% of the loan amount.
  • Note: If you’ve used a part of your entitlement for another loan, you may need to make a down payment. This applies to extra loans.

Myth #6: You Can Only Use a VA Loan Once

Fact: You can use your VA loan benefits unlimited times throughout your life.

  • To reuse the benefit, you must either:
    • Pay off your current VA loan, or if enough entitlement is left on your COE, and you qualify with both house payments on the dti and residual income test, you may be able to have two va loans active at the same time
    • Sell the property and restore your entitlement.

Assumability and Other Uses of VA Loans

Myth #7: VA Loans Are Not Assumable

Fact: VA loans are assumable, meaning another buyer can take over your VA loan.

  1. Benefits: This is especially valuable in a low-interest-rate environment.
  2. Requirements for Buyers:

Myth #8: You Can’t Buy Land with a VA Loan

Fact: While VA loans don’t cover land purchases alone, they allow you to:

  1. Buy land and immediately build a home on it with a VA construction loan.
  2. Use a conventional loan to buy land, then refinance into a VA loan after building your home.

Myth #9: You Can’t Build a House with a VA Loan

Fact: VA construction loans allow you to build a home, as long as the builder is VA-approved. Upon completion, you can refinance the loan into a permanent VA mortgage.

Myth #10: VA Loans Are Only for Home Purchases

Fact: VA loans can also be used for home improvement projects.

Benefits of Kentucky VA Loans

  1. 100% Financing: No down payment required.
  2. No PMI: Reduces your monthly mortgage payment.
  3. Low Closing Costs: Sellers can pay closing costs and prepaid, up to 4% and even payoff borrower’s debts to qualify for a mortgage loan above the 4% threshold for seller concessions
  4. Flexible Credit Guidelines: Perfect for veterans with past credit issues. No minimum credit score but wight most heavily the last two years on credit report. No foreclosure, Chapter 7 bankruptcies the last two years
  5. Assumability: Allows buyers to take over existing VA loans.

Get Started with Your Kentucky VA Loan Today!

As a mortgage loan officer, I have over 20 years of experience. I’ve helped more than 1,300 Kentucky families buy or refinance their homes. Whether you’re buying your first home, upgrading, or refinancing, I’m here to make the process smooth and stress-free.

Contact Information:
📞 Text/Call: 502-905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: www.mylouisvillekentuckymortgage.com

Joel Lobb
Mortgage Loan Officer – Specialist in Kentucky VA, FHA, USDA, and KHC Loans

  • NMLS ID: 57916
  • Address: 10602 Timberwood Circle, Louisville, KY 40223

Let’s make your homeownership dreams a reality! Reach out today to learn more about VA loan options in Kentucky.

“VA loans in Kentucky,” “Kentucky VA mortgage,” and “VA home loans for veterans in Kentucky.”