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how to get approved for a Kentucky va mortgage loan


Looking to buy a home in Kentucky? VA loans could be your ticket to affordable homeownership. These loans are available to veterans, active-duty service members, and even some surviving spouses.

They’re especially popular because they offer perks like no down payment and competitive interest rates. Whether you’re eyeing a property in Louisville, Lexington, or near Fort Knox, a VA loan can make the process smoother. Plus, Kentucky’s got some great regional benefits for veterans that you might want to check out. Let’s dive into what makes Kentucky VA mortgage lenders a top choice for many.

Key Takeaways

  • VA loans in Kentucky offer no down payment options, making homeownership more accessible.
  • Veterans and active-duty members can benefit from competitive interest rates and flexible credit requirements.
  • Kentucky offers regional benefits for veterans, enhancing the appeal of VA loans in areas like Louisville and Lexington.
  • Understanding the eligibility criteria, including service and credit score requirements, is crucial for a successful application.
  • Working with a VA-approved lender simplifies the loan process, ensuring veterans get the most out of their benefits.

Understanding Kentucky VA Mortgage Lenders

Key Features of VA Loans in Kentucky

VA loans in Kentucky come with some pretty sweet perks. First off, there’s the zero down payment. You can get into a home without having to save up a big chunk of cash. Plus, you don’t have to worry about private mortgage insurance (PMI), which is a relief on your monthly bills. Interest rates are generally lower too, which is always a win. These loans are backed by the government, giving lenders more confidence to offer better terms.

How VA Loans Differ from Conventional Loans

VA loans differ from conventional loans in several ways. The most obvious is the no down payment requirement, which is a game-changer for many. Conventional loans usually need at least 3-5% down. VA loans also have more lenient credit score requirements, which means you might qualify even if your credit isn’t perfect. On the flip side, VA loans come with a funding fee. This fee helps keep the program running. However, there are exemptions for some veterans.

Benefits of Choosing a Kentucky VA Lender

Picking a Kentucky VA lender has its own set of benefits. Local lenders understand the state’s housing market, which can be a big help in finding the right home. They’re also familiar with any state-specific requirements or benefits, like tax exemptions for disabled veterans. When you work with someone who knows the local scene well, the whole process becomes smoother. It also becomes less stressful.

Kentucky VA lenders offer a unique blend of local expertise and specialized loan products that can make homeownership more accessible for veterans and their families.

Eligibility Criteria for VA Loans in Kentucky

Service Requirements for Veterans

To qualify for a VA loan in Kentucky, veterans and active-duty service members need to meet certain service requirements. Typically, this involves a minimum period of active duty service, which varies depending on when you served. For those who served during wartime, at least 90 consecutive days of active service is required. During peacetime, the requirement extends to 181 days. National Guard members and reservists must have completed six years of service. If they were called to active duty, the same active duty requirements apply.

Credit Score and Financial History

While the VA does not set a minimum credit score, lenders often have their own requirements. In Kentucky, many lenders look for a credit score of at least 620. However, some may require a higher score depending on other financial factors. It’s crucial to maintain a solid financial history, including timely bill payments and manageable debt levels. A strong credit profile can significantly enhance your loan approval chances.

Necessary Documentation for Application

When applying for a VA loan, you’ll need to gather several key documents. These include:

  • Certificate of Eligibility (COE): This is a must-have document that verifies your eligibility for a VA loan. You can obtain it through the VA or with the help of your lender.
  • Proof of Income: Lenders will need evidence of your income. You can show this through pay stubs, Last two years tax returns, and last two years W-2 forms.
  • Identification: A valid driver’s license or government-issued photo ID is necessary.

Preparing these documents ahead of time can streamline your application process, making it easier to secure your VA loan.

Remember, VA loans are specifically for primary residences, so they can’t be used for vacation homes or investment properties. Ensure all your paperwork is accurate and up-to-date to avoid any delays.

Exploring VA Loan Options in Kentucky

VA Purchase Loans for First-Time Buyers

If you’re a first-time homebuyer in Kentucky, the VA Purchase Loan might just be your ticket to homeownership. This loan is specifically designed for veterans and service members. It offers competitive rates. The big perk is no down payment. It’s a great way to get into a new home without the usual financial hurdles.

Here’s what makes the VA Purchase Loan stand out:

  • No Down Payment Required: This is a major advantage, making homeownership more accessible.
  • Competitive Interest Rates: VA loans often have lower rates compared to conventional loans.
  • Limited Closing Costs: This keeps the upfront costs much lower.

Streamline Refinance Options

The Streamline Refinance is a fantastic option for those already with a VA loan. Known as IRRRL, it stands for Interest Rate Reduction Refinance Loan. It’s all about reducing your interest rate and monthly payments with minimal hassle.

Benefits of the Streamline Refinance include:

  • No Appraisal Required: This speeds up the process significantly.
  • No Income Verification: Makes it easier to qualify.
  • Little to No Out-of-Pocket Costs: You can often roll the costs into the loan.

Cash-Out Refinance Opportunities

The VA Cash-Out Refinance is perfect if you need to tap into your home’s equity. This loan allows you to refinance your mortgage. You can use it for home improvements, paying off debts, or unexpected expenses. It helps you access cash when needed.

Key features of the Cash-Out Refinance:

  • Up to 100% of Your Home’s Value: This allows more flexibility in how much cash you can access.
  • Refinance Any Existing Loan: Not just limited to VA loans.
  • Great for Home Improvements: Use the funds to increase your home’s value or tackle necessary repairs.
  • Considering a VA loan option? If you’re facing challenges with your home loan payments, reach out to a VA loan technician. They can assist you in finding the best path forward. They’re just a call away at 50-905-3708.

Navigating the Kentucky VA Loan Process

Steps to Secure a VA Loan

Getting a VA loan in Kentucky isn’t as complicated as it might seem. Here’s a quick rundown of the steps you’ll need to take:

  1. Get Your Certificate of Eligibility (COE): This is your golden ticket. You’ll need to grab this from the VA to prove you’re eligible. You can apply online, through your lender, or by mail.
  2. Find the Right Lender: Not all lenders are created equal. Make sure you pick one that’s VA-approved and has experience with VA loans.
  3. Pre-Qualification: Sit down with your lender and figure out how much you can borrow. This will help you narrow down your home search.
  4. House Hunting: With your pre-qualification in hand, start looking for your new Kentucky home. A real estate agent can be a big help here.
  5. Appraisal and Underwriting: The lender will order a VA appraisal to ensure the property is worth the purchase price. Then, they’ll underwrite your loan to check everything is in order.
  6. Closing the Deal: Once everything checks out, you’ll close on your loan and get the keys to your new home.

Working with a VA-Approved Lender

Choosing a lender who knows the ins and outs of VA loans is crucial. They’ll guide you through the process and help avoid any potential hiccups. Guidance through the VA loan process is key to a smooth experience, especially for first-timers.

Understanding the Appraisal Process

The VA appraisal is not just a formality. It ensures the house is safe, sound, and worth the money you’re borrowing. An appraiser, assigned by the VA, will check the property’s value and condition. If issues arise, you might need to renegotiate with the seller or find another property.

The VA loan process, while detailed, offers a structured path to homeownership for veterans and active-duty members in Kentucky. With zero-down payment options and competitive rates, it’s a fantastic route to owning a home.

Regional Insights: VA Loans Across Kentucky

VA Loan Opportunities in Louisville and Lexington

In the bustling cities of Louisville and Lexington, veterans have access to a variety of VA loan opportunities. These areas boast a vibrant housing market with a range of options from historic homes to modern condos. VA loans are particularly beneficial here due to their no-down-payment requirement, making homeownership more accessible. Veterans seeking to settle in these urban hubs can enjoy the cultural amenities and economic opportunities these cities offer.

Fort Knox and Fort Campbell Housing Options

VA loans offer a practical solution for those stationed at or near Fort Knox. They also assist those near Fort Campbell in finding suitable housing. These military installations are surrounded by communities that understand the unique needs of military families. Housing options range from on-base facilities to nearby suburban neighborhoods. A VA loan can simplify the transition for military personnel. It ensures they have a stable and supportive environment for their families.

Benefits for Veterans in Northern Kentucky

Northern Kentucky offers a quieter lifestyle with the benefit of proximity to Cincinnati, Ohio. Veterans in this region can use the VA loan program. They can purchase homes in areas known for their scenic beauty. These areas also have a lower cost of living. The community support for veterans in Northern Kentucky is strong, with various programs aimed at easing the home buying process. Navigating the VA loan process in this area can be straightforward with the right guidance. This allows veterans to enjoy both financial and community benefits.

Kentucky’s diverse regions offer unique opportunities for veterans considering a VA loan. The lively city life in Louisville provides excitement. The peaceful suburbs near Fort Knox offer tranquility. There’s a place for every veteran to call home.

Financial Considerations for Kentucky VA Loans

Cozy Kentucky home with lush green landscapes.

Understanding VA Loan Limits and Entitlements

In Kentucky, VA loan limits aren’t really limits anymore if you’ve got your full entitlement. This means you can borrow as much as your lender thinks you can handle without needing a down payment. But if you don’t have your full entitlement, those limits still matter. As of now, the limit is $806,500 for all counties in Kentucky. So, if you’re buying a home and lack full entitlement, you must cover the gap with a down payment.

Impact of Property Taxes on VA Loans

Property taxes can be a big deal for VA loan holders in Kentucky. If you’re a veteran who’s totally disabled, you might get a property tax exemption up to $39,399 on your main home. Veterans over 65 years old also qualify for this exemption. That’s a nice chunk of change saved. But if you’re not exempt, property taxes will be part of your monthly mortgage payment, and that can add up.

Funding Fees and Exemptions for Veterans

Most veterans will have to pay a funding fee in Kentucky, but there are some exceptions. If you’re a veteran receiving compensation for a service-related disability, you might be off the hook for this fee. It’s a good idea to check with your loan officer to see what applies to you. This fee helps keep the VA loan program going, but it’s definitely something to factor into your budget.

For veterans, understanding the financial ins and outs of a VA loan in Kentucky can make homebuying a smoother ride. Knowing about loan limits, property taxes, and funding fees can help you plan better and avoid surprises.

Also, when lenders look at your financial profile, they don’t just zero in on your credit score. They consider your whole financial picture, including your debt-to-income ratio and credit history. This can be a real advantage if traditional financing has been a challenge.

Support and Resources for Kentucky Veterans

Kentucky veteran family in front of their new home.

State Benefits for Veterans and Active Duty

Kentucky offers a wide range of benefits for veterans and active-duty service members. From financial assistance to housing benefits, the state ensures that those who have served are well-supported. Veterans can access benefits counseling to understand what they’re eligible for and how to apply. Additionally, Kentucky provides tax exemptions for disabled veterans, helping ease the financial burden.

Housing Assistance Programs

Finding a home can be challenging, but Kentucky has several programs to assist veterans in securing housing. The state offers skilled long-term care at veterans centers, ensuring that those who need it have access to quality care. Furthermore, veterans can benefit from programs that help with home loans and property tax exemptions, making homeownership more accessible.

Educational and Employment Resources

Education and employment are crucial for veterans transitioning to civilian life. Kentucky offers educational benefits, including tuition assistance and scholarships for veterans and their families. Employment resources are also available, providing job training and placement services to help veterans find meaningful work. These resources aim to support veterans in building a stable and fulfilling post-military career.

Kentucky is committed to honoring its veterans by providing comprehensive support and resources. Whether it’s through housing assistance, educational opportunities, or employment services, the state strives to ensure that veterans can thrive in their communities.

Veterans can contact the Kentucky Department of Veterans and Military Affairs. They can gain more information on benefits counseling and skilled long-term care this way.

Wrapping It Up

So, there you have it. If you’re a veteran or active-duty service member in Kentucky, a VA loan could be your ticket to homeownership. With no down payment and flexible credit requirements, it’s a pretty sweet deal. Just make sure you have your paperwork in order, like your Certificate of Eligibility and proof of income. Remember, the process might seem a bit daunting at first. However, many resources and lenders are ready to help you. Homeownership is a big step, but with the right support, it’s totally doable. Good luck on your journey to finding that perfect Kentucky home!

Frequently Asked Questions

What is the VA loan limit in Kentucky?

In Kentucky, there is no set VA loan limit for veterans with full entitlement. However, if you have partial entitlement, limits apply based on the county, with most counties capped at $For 2025, the standard limit is $806,500 for a one-unit property in most counties

Do I need private mortgage insurance with a Kentucky VA loan?

No, VA loans are backed by the U.S. government, so private mortgage insurance (PMI) is not required.

Is Kentucky a veteran-friendly state?

Yes, Kentucky offers many benefits for veterans, including housing assistance, financial aid programs, and educational opportunities.

Do veterans have to pay a funding fee in Kentucky?

Most veterans need to pay a VA funding fee, but there are exceptions. It’s best to check with your loan officer for specific details.

Does Kentucky offer VA loans to surviving spouses?

Yes, surviving spouses who meet certain qualifications can apply for VA loans in Kentucky.

Is it hard to get approved for a VA loan in Kentucky?

VA loans are designed to be accessible for eligible veterans and their families. They often have more flexible credit requirements and no down payment, making approval easier than some other loans.

1 – 📅 Email – kentuckyloan@gmail.com

  1. 📞 Call/Text – 502-905-3708

Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans

🌐 Website: http://www.mylouisvillekentuckymortgage.com
🏢 Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky VA Mortgage Loan Questions.

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

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).

 

Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA

How to Apply for a Kentucky VA Loan

Kentucky VA loans provide veterans with an opportunity to secure a mortgage with minimal “red tape.” These loans often require no down payment and offer lower interest rates than other loan options, making homeownership more accessible for veterans. The application process for a Kentucky VA loan is similar to that of other mortgage loans, with the additional benefit of faster processing time. Kentucky VA loans offer numerous advantages, including no down payment requirement, flexibility in interest rate negotiation, and no monthly mortgage insurance premiums. Veterans who meet specific service criteria are eligible, and those with remaining entitlement or restored entitlement can benefit from these loans for home purchases or refinancing options.


Kentucky Veteran looking to secure a VA mortgage loan?

How to Apply for a Kentucky VA Loan

Why A Kentucky VA Loan?

The more you know about our home loan program, the more you will realize how little “red tape” there really is in getting a Kentucky  VA loan. These loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Aside from the veteran’s certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. If the lender is approved for automatic processing, as more and more lenders are now, a buyer’s loan can be processed and closed by the lender without waiting for VA’s approval of the credit application.

Additionally, if the lender is approved under VA’s Lender Appraisal Processing Program (LAPP), the lender may review the appraisal completed by a VA-assigned appraiser and close the loan on the basis of that review. The LAPP process can further speed the time to loan closing.

5 Easy Steps To A Kentucky VA Loan

Apply for a Certificate of Eligibility.

A veteran who doesn’t have a certificate can obtain one easily by making application on VA Form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement, to the local VA office.

Decide on a home you want to buy and sign a purchase agreement.

Order an appraisal from VA. (Usually this is done by the lender).

Most VA regional offices offer a “speed-up” telephone appraisal system. Call the regional VA office for details. See also How To Get a VA Loan.

Apply to a mortgage lender for the loan.

While the appraisal is being done, the lender (mortgage company, savings and loan, bank, etc.) can be gathering credit and income information. If the lender is authorized by VA to do automatic processing, upon receipt of the VA or LAPP appraised value determination, the loan can be approved and closed without waiting for VA’s review of the credit application. For loans that must first be approved by VA, the lender will send the application to the local VA office, which will notify the lender of its decision.

Close the loan and move in.

Kentucky VA Financing – A Good Deal For Kentucky Veterans

More than 29 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of Kentucky VA home loans:

Most important consideration, no down payment is required in most cases.

Loan maximum may be up to 100 percent of the VA-established reasonable value of the property.

Flexibility of negotiating interest rates with the lender

No monthly mortgage insurance premium to pay.

limitation on buyer’s closing costs.

An appraisal which informs the buyer of property value.

Thirty year loans with a choice of repayment plans:

traditional fixed payment (constant principal and interest; increases or decreases may be expected in property taxes and homeowner’s insurance coverage);

An assumable mortgage, subject to VA approval of the assumer’s credit.

Right to prepay loan without penalty.

VA performs personal loan servicing and offers financial counseling to help veterans avoid losing their homes during temporary financial difficulties.

What Is A Kentucky VA-Guaranteed Loan?

These loans are made by a lender, such as a mortgage company, savings and loan, credit union or bank. VA’s guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms. The amount of guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guaranty, a veteran who hasn’t previously used the benefit may be able to obtain a Kentucky VA loan up to $484,500 depending on the borrower’s income level and the appraised value of the property. The local VA office can provide more details on guaranty and entitlement amounts.

What Can A Kentucky VA Loan Be Used For?

To buy a home, including townhouse or condominium unit in a VA-approved project.

To build a home.

To simultaneously purchase and improve a home.

To improve a home by installing energy-related features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA. These features may be added with the purchase of an existing dwelling or by refinancing a home owned and occupied by the veteran. A loan can be increased up to $3,000 based on documented costs or up to $6,000 if the increase in the mortgage payment is offset by the expected reduction in utility costs. A refinancing loan may not exceed 90 percent of the appraised value plus the costs of the improvements. Check with a lender or VA for details.

To refinance an existing home loan up to 90 percent of the VA-established reasonable value or to refinance an existing VA loan to reduce the interest rate.

To buy a manufactured home and/or lot.

VA Loans – Who Is Eligible?

Veterans with active duty service, that was not dishonorable, during World War II and later periods are eligible for VA loan benefits. World War II (September 16, 1940 to July 25, 1947), Korean conflict (June 27, 1950 to January 31, 1955), and Vietnam era (August 5, 1964 to May 7, 1975) Veterans must have at least 90 days’ service. Veterans with service only during peacetime periods and active duty military personnel must have had more than 180 days’ active service. Veterans of enlisted service which began after September 7, 1980, or officers with service beginning after October 16,1981, must in most cases have served at least 2 years.

Persian Gulf Conflict

Basically, reservists and National Guard members who were activated on or after August 2, 1990, served at least 90 days and were discharged honorably are eligible. VA regional office personnel may assist with eligibility questions.

Selected Reserve

Members of the Selected Reserve, including National Guard, who are not otherwise eligible and who have completed 6 years of service and have been honorably discharged or have completed 6 years of service and are still serving may be eligible. The expanded eligibility for Reserves and National Guard individuals will expire October 28, 1999. Contact the local VA office to find out what is needed to establish eligibility. Reservists will pay a slightly higher funding fee than regular veterans. (See paragraph entitled “Costs of Obtaining a VA Loan” in How to Get a VA Loan).

Had A VA Loan Before?

Remaining Entitlement

Veterans who had a VA loan before may still have “remaining entitlement” to use for another VA loan. The current amount of entitlement available to each eligible veteran is $36,000. This was much lower in years past and has been increased over time by changes in the law. For example, a veteran who obtained a $25,000 loan in 1974 would have used $12,500 guaranty entitlement, the maximum then available. Even if that loan is not paid off, the veteran could use the $23,500 difference between the $12,500 entitlement originally used and the current maximum of $36,000 to buy another home with VA financing. An additional $14,750, up to a maximum entitlement of $50,750 is available for loans above $144,000 to purchase or construct a home.

Most lenders require that a combination of the guaranty entitlement and any cash down payment must equal at least 25 percent of the reasonable value or sales price of the property, whichever is less. Thus, in the example, the veteran’s $23,500 remaining entitlement would probably meet a lender’s minimum guaranty requirement for a no down payment loan to buy a property valued at and selling for $94,000. The veteran could also combine a down payment with the remaining entitlement for a larger loan amount.

Restoration of Entitlement

Veterans can have previously-used entitlement “restored” to purchase another home with a VA loan if:

The property purchased with the prior VA loan has been sold and the loan paid in full, or

A qualified veteran-transferee (buyer) agrees to assume the VA loan and substitute his or her entitlement for the same amount of entitlement originally used by the veteran seller. The entitlement may also be restored one time only if the veteran has repaid the prior VA loan in full but has not disposed of the property purchased with the prior VA loan. Remaining entitlement and restoration of entitlement can be requested through the nearest VA office by completing VA Form 26-1880.

How To Get A Kentucky VA Loan

VA Appraisal – Certificate of Reasonable Value

The CRV (Certificate of Reasonable Value) is based on an appraiser’s estimate of the value of the property to be purchased. Because the loan amount may not exceed the CRV, the first step in getting a VA loan is usually to request an appraisal. Anyone (buyer, seller, real estate personnel or lender) can request a VA appraisal by completing VA Form 26-1805, Request for Determination of Reasonable Value. After completing the form, it can either be mailed to the Loan Guaranty Division at the nearest VA office for processing or an appraisal can be requested by telephoning the Loan Guaranty Division for assignment of an appraiser. The local VA office may be contacted for information concerning its assignment procedures. The appraiser will send a bill for his or her services to the requester according to a fee schedule approved by VA. To simplify things, VA and HUD/FHA (Department of Housing and Urban Development/Federal Housing Administration) use the same appraisal forms. Also, if the property was recently appraised under the HUD procedure, under certain limited circumstances, the HUD conditional commitment can be converted to a VA CRV. The local VA office can explain how this is done.

It is important to recognize that while the VA appraisal estimates the value of the property, it is not an inspection and does not guarantee that the house is free of defects. Homebuyers should be encouraged to carefully inspect the property themselves, or to hire a reputable inspection firm to help in this area. VA guarantees the loan, not the condition of the property.

Application

The application process for VA financing is no different from any other type of loan. In fact, the VA application form is the same as that used for HUD/FHA and Conventional loans. The mortgage lender verifies the applicant’s income and assets, and obtains a credit report to see that other obligations are being paid on time. If all is well and the appraised value of the property is enough to cover the loan needed, the lender, in most instances, can then close the loan under VA’s automatic procedure. Only about 5 percent of VA loan applications have to be submitted to a VA office for approval before closing.

Requirements For Loan Approval

To obtain a VA loan, the law requires that:

The applicant must be an eligible veteran who has available entitlement.

The loan must be for an eligible purpose.

The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after closing the loan.

The veteran must be a satisfactory credit risk.

The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the costs of owning a home, take care of other obligations and expenses, and have enough left over for family support.

An experienced mortgage lender will be able to discuss specific income and other qualifying requirements.

Costs Of Obtaining A VA Loan

Funding Fee

VA Funding Fee Chart

The Funding Fee is calculated by looking at 5 different factors: Loan amount, loan type (Purchase or Refinance), type of service, down payment (if any) and prior VA loan use. Take a look at the charts below to see how the va funding fee varies based on these factors.

FUNDING FEES AFTER 1/1/2020

The VA funding fee is calculated as a percentage of the total loan amount. It must be paid or rolled into the loan at closing time. VA strongly recommends that you verify with your lender that the funding fee matches your military service.

In Public Law 116-23, Congress has established rates for loans closed on or after January 1, 2020, and before January 1, 2022 at the levels listed below:

The following do NOT pay the VA funding fee:

  • Veteran receiving VA compensation for a service-connected disability;
  • Veteran entitled to receive VA compensation for a service-connected disability, but receives retirement pay or active service pay;
  • Surviving spouse of a Veteran who died in active service or from a service-connected disability;
  • Servicemember on Active Duty who provides, on or before date of loan closing, evidence of having been awarded the Purple Heart.

Other Closing Costs

Reasonable closing costs may be charged by the lender. These costs may not be included in the loan. The following items may be paid by the veteran purchaser, the seller, or shared. Closing costs may vary among lenders and also throughout the nation because of differing local laws and customs.

VA Appraisal

Credit Report

Loan Origination Fee (usually 1 percent of the loan)

Discount Points

Title Search and Title Insurance

Recording Fees

State and/or Local transfer Taxes, if applicable

Survey

No commissions, brokerage fees or “buyer broker” fees may be charged to the veteran buyer.

Kentucky VA Loans – Need More Information?

Veterans seeking more detailed information concerning the VA home loan program may request VA Pamphlet 26-4, VA-Guaranteed Home Loans for Veterans, or VA Pamphlet 26-6, To the Home-Buying Veteran, from the nearest VA office. Loan Guaranty personnel at that office will also be pleased to answer specific questions and provide any other assistance they can.

Remember, VA-guaranteed financing is a benefit which Congress intended eligible veterans should have. If you are a veteran homebuyer or know of one, it makes sense to look into the VA loan program as a good way to finance a home purchase.

Related Articles

If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free pre-qualification below for your next mortgage loan pre-approval.

 
 
 

The Department of Veterans Affairs offers 100% financing with no monthly mortgage insurance, allowing for gifted closing costs. VA loans are easier to qualify for, do not require a down payment, and do not require PMI. There is no limit on the number of VA loans, and VA loans are assumable. Land purchase and home building are allowed with VA loans. VA loans can also cover home improvements.


Kentucky VA Lender Mortgage Information

The Department of Veterans Affairs (VA) offers financing for Veterans. The VA determines eligibility and will issue a certificate of eligibility to qualifying applicants.

Must be a Veteran, Active Duty Military, or member of the Reserves.

  • 100% Financing
  • No Monthly Mortgage Insurance
  • Closing costs can be gifted by immediate family or by seller contributions at a maximum 4% of the selling price.
  • Available for Purchase and Refinance Transactions.
  • Gift funds allowed and Seller Concessions at a maximum of 4% of selling price allowed.

KENTUCKY VA MORTGAGE LOAN INFORMATION

 COMMON KENTUCKY VA LOAN MYTHS FOR KENTUCKY VETERANS

  1. VA loans are difficult to qualify for.
  2. All VA loans require a down payment.
  3. VA loans require private mortgage insurance (PMI).
  4. You can’t refinance a VA loan.
  5. You can only have one VA loan.
  6. You can use a VA loan once.
  7. VA loans are not assumable.
  8. You can’t buy land with a VA loan.
  9. You can’t build a house with a VA loan.
  10. VA loans only apply to the home purchase itself.

Is it hard to qualify for a VA loan?

Myth #1: Kentucky VA loans are difficult to qualify for.

Fact: VA loans have fewer credit restrictions compared to conventional loans. These reduced restrictions, like a higher debt-to-income (DTI) ratio and more leniency regarding credit scores, mean it can be easier to qualify. VA has no minimum credit score but lenders will have overlays with most being 620 and some going down to 580, with a few going all the way down to 500 but it is very difficult to get approved at this level — though each individual case and lender will vary.

Do VA loans require a down payment?

Myth #2: All Kentucky VA loans require a down payment.

Fact: While conventional loans generally require down payment options that can reach up to 20%, no such thing is required with a VA home loan at or under the local conforming limit. Down payments are still an option, of course, but they are not a requirement.

The VA allows you to purchase jumbo loans, but the down payment depends on your entitlement:

  • Full entitlement – 100% LTV (loan-to-value) maximum
  • Partial entitlement – Maximum loan must be calculated using 25% guarantee of 1 unit county loan limit. Max LTV is lesser of max allowed or LTV required to meet 25% guaranty

Do VA loans have PMI?

Myth #3: VA loans require private mortgage insurance (PMI).

Fact: Private mortgage insurance is not required for VA loans. PMI typically adds 0.2%-0.9% of expenses to your monthly mortgage payments when you put less than 20% down. That’s a big additional expense you don’t have to worry about when you get a VA loan. Remember, VA loans do come with a funding fee.

Can you refinance a VA loan?

Myth #4: You can’t refinance a Kentucky VA loan.

Fact: Thanks to VA streamline and cash-out loan programs, VA loans are actually easier to refinance than conventional mortgages. The streamline version lowers the mortgage rate of an already existing VA loan, usually for less than the current principal and interest. This means it doesn’t require a credit check or appraisal. The cash-out option involves a credit check and appraisal, since the home’s value represents the maximum loan amount and the new loan will be larger than the existing loan.

How many VA loans can you have?

Myth #5: You can only have one Kentucky VA loan.

Fact: There is no limit to the number of VA loans you can have. While it is possible to have multiple VA loans at once, this depends on VA loan entitlement. VA loan entitlement refers to the amount that the VA will pay your lender if you default on your loan. There is a limit on your VA entitlement. It can be split across multiple loans but the limit remains the same. For full entitlement, the VA covers:

  • Up to $36,000 for loans < $144,000
  • Up to 25% for loans > $144,000

If, however, you’ve used a portion of your entitlement in one loan that you’re still actively paying off (or defaulted on), the amount of entitlement you have on any new loan is reduced. This means that you may need to put money down yourself instead of having the usual benefit of a zero down payment for VA loans. To learn about VA loan limits and entitlement, visit us here.

How many times can you use a VA loan?

Myth #6: You can only use a Kentucky VA loan once.

Fact: There is no limit on the number of times you can use the VA loan benefit. You can use the benefit an unlimited number of times throughout your life, as long as you still qualify. To qualify, you need to meet certain requirements, which you’ll already be aware of if you’ve taken out a VA loan in the past. For those who haven’t taken out a VA loan prior, you can learn how to qualify here.

Are VA loans assumable?

Myth #7: Kentucky VA loans are not assumable.

Fact: Federally insured and guaranteed loans are usually assumable. This includes VA loans. What does it mean if a loan is assumable? An assumable mortgage is when the lender allows you, the buyer, to take over the current mortgage that the seller has. This can save a lot of money if the interest rates are lower on the existing mortgage than they would be to take out a new mortgage. Assumable mortgages allow buyers, who otherwise wouldn’t qualify for a VA loan, to take over a VA mortgage. This means that you would get most, if not all, of the benefits that come with VA loan eligibility. In order to assume a VA mortgage, you will need to meet certain requirements, such as:

  • acceptable credit history and  credit score
  • debt-to-income ratio to meet guidelines
  • No Bankruptcies or foreclosures in last 2 years ( Chapter 7) –Chapter 13 is possible within one year in the plan.
  • acceptable work history for last two years
  • residual income requirements
  • property passing VA standards

You will also be required to pay the VA funding fee that comes with VA loans. This equates to 0.5% of the total loan amount. This may be waived if you’re an eligible military borrower who qualifies for an exemption. Other fees may be required as well.

For sellers, if a non-military borrower assumes your mortgage, your VA entitlement won’t be restored until the loan is paid in full. You will want to request that the lender releases you from liability on the loan to avoid dips in your credit reports if the buyer defaults or makes a late payment.

Can you buy land with a VA loan?

Myth #8: You can’t buy land with a Kentucky VA loan.

Fact: The VA doesn’t authorize buyers to singularly purchase land with a VA loan. However, you can purchase land and build a home on it. This is partially because VA loans are granted with a required occupancy period — you must use the property as your primary residence for at least one year. If there is already a home on the land, this is acceptable. Another acceptable scenario is if you plan to immediately build a home on the land after purchase. This may require a purchase/construction loan.

You can also purchase land with a conventional loan or certain other types of loans. Then you can build a home on the land using a VA construction loan. Upon completion, military borrowers can refinance VA construction loans into permanent VA loans. Builders must be VA-approved.

Finally, you can purchase land and build a property using a non-VA purchase/construction loan. Then you can refinance the loan upon completion of the build into a permanent VA loan (as long as the property meets the VA’s requirements).

Can you use a VA loan to build a house?

Myth #9: You can’t build a house with a Kentucky VA loan.

Fact: VA construction loans do exist, as mentioned above, and under the right circumstances, they can be refinanced into permanent VA loans. Ask your lender about VA purchase/construction loan options.

Can you use a VA loan for home improvement?

Myth #10: Kentucky VA loans only apply to the home purchase itself.

Fact: The VA allows for increases to purchase loans for the purpose of making renovations. The VA’s Energy Efficiency Mortgage program, for instance, lets borrowers add up to $6,000 to their home loan amount to install solar heating, insulation and storm windows, among other features.

In conclusion

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free.

—

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

 

 

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