I have successfully originated over 200 VA Home loans in Kentucky. Put my experience to work for you. Call or text me today at 502-905-3708 or email me at Kentuckyloan@gmail.com-This website is not affiliated with the VA or any other government agency. NMLS #57916 Equal Housing Lender. Same Day Approvals, Fast Closings, and a Local Veteran offering VA Home Loans in Kentucky. Free Credit Report and Pre-Approvals NMLS# 57916 Joel Lobb Loan Originator, Company NMLS ID 1738461 . Equal Housing Lender
Department of Veterans Affairs June 15, 2022 Washington, D.C. 20420
Pest Inspection Fees and Repair Costs
1. Purpose. This Circular addresses the Department of Veterans Affairs policies regarding wood destroying pest inspection fees and repair costs.
2. Background. Historically, VA has authorized, as a local variance, that Veterans may be charged for a wood destroying pest inspection report in a limited number of states and territories.1 Localities susceptible to termites and other wood destroying pests, however, are on the rise. Accordingly, VA requires, as a Minimum Property Requirement, a wood destroying pest inspection report for certain properties located in an area on the Termite Infestation Probability Map2 where the probability of termite infestation is “very heavy” or “moderate to heavy.”3 If applicable, the VA Notice of Value (NOV) will be conditioned for this requirement and MPR repairs identified on a wood destroying pest inspection report must be completed prior to guaranty.4
3. Action. Effective immediately, VA is authorizing in advance, as a local variance, that Veterans may be charged wood destroying pest inspection fees, where required by the NOV. Veterans may also pay for any repairs required to ensure compliance with MPRs. Veterans are encouraged to negotiate the cost of the wood destroying pest inspection and repairs with the seller.
a. Documentation for Audit Purposes. An itemized invoice identifying the Veteran and the property is required to verify the cost on the Closing Disclosure Statement (CD). Lenders should include the invoice(s) to support the cost of the inspection and any repairs in the loan file if the loan is selected for Full File Loan Review (FFLR).
4. Paperwork Reduction Act. The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. § 3501-3520) and assigned OMB control number 2900-0515. In accordance with the Paperwork Reduction Act, VA may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number
No down payment in most cases for purchase loans (up-front money toward your home purchase), and easier borrower credit requirements.
No monthly mortgage insurance premiums or private mortgage insurance (PMI).
Lower homebuyer closing costs, and limits to what borrowers can be charged.
The opportunity to roll your “VA funding fee” into your mortgage.
The ability to refinance a non-VA loan into the VA mortgage program.
The opportunity to: ask a home seller to contribute up to 4 percent of the mortgage amount to cover some of the closing costs; ask your lender to cover some of the closing costs; seek closing cost assistance through state homebuying programs created for veterans and first-time buyers.
The right to become a VA borrower for life. In most cases you can use VA mortgage programs forever, and sometimes you can have more than one VA loan.
Eligibility of financing for spouses of service-members who died in the line of duty or from a service-related disability.
You can review all types of Kentucky VA Home Loans here, including purchase mortgages, refinance mortgages (called Interest Rate Reduction Refinance Loans or IRRRLs), and cash-out refinance loans.
To qualify for a Kentucky VA Home Loan, usually a military veteran or service-member must have 90 consecutive days of active service during wartime, or 181 straight days of service during peacetime, or six years in the national guard or reserves of a particular military branch. You can find out if you’re eligible here.
Kentucky VA mortgage comes with an additional closing cost called a “VA funding fee” of between 1.4 to 3.6 percent on the amount borrowed (depending on your circumstance). This special fee that non-VA borrowers never have to pay helps partially fund the “government backed” part of the VA borrower program, and many VA borrowers can roll it into their mortgage.
VA Loan Quick Facts
0% Down
Minimum Down Payment
620 Credit
Minimum Credit Score
41% DTI
Max Debt-to-Income Ratio
What is a VA Loan?
VA Loans are designed to assist veterans purchase a home. Active duty military and veterans across the nation will enjoy the desirable loan terms and low interest rates that often come with a VA loan. Additional benefits like no down payment requirement help make home buying an affordable and cost-effective reality for those who have served and continue to serve our country.
What are the benefits of a VA Loan?
VA Loan benefits and features:
Zero down payment
Buyers may finance the funding fee into the loan
Closing costs may be covered
Buyers may use gifts and seller contributions to cover closing costs
Who may benefit from a VA Loan?
A VA Loan may the right fit for you if:
You’re an eligible veteran or active-duty military
You’re buying a first home or are a repeat homebuyer
No Down Payment Requirement on Kentucky VA Jumbo Loans!
What are Kentucky VA Loan Limits?
VA loan limits follow FHFA county loan limits ($510,400 for conforming 1-unit properties in most parts of the country). High Cost county loan limits are now up to $765,600 (1-unit).
To clarify, these “limits” are not a cap on how much your client can borrow – it simply has represented the loan amount that can be borrowed without a down payment. Veterans who can qualify for larger loans can exceed these county limits. Loan amounts exceeding the base conforming limit are considered Jumbo transactions.
Prior to January 1st, all Veterans exceeding base or high cost loan limits were responsible for the additional loan amount in the form of a down payment (25% of the difference between the loan amount and the county loan limit).
The Blue Water Navy Vietnam Veterans Act of 2019 expanded the maximum guaranty amounts for purchase and cash-out loans, enabling eligible* jumbo borrowers to exceed published county loan limits without a down payment requirement!
The VA benefit enhancement now means eligible* Veteran jumbo borrowers may obtain no down payment VA-backed loans in all areas of the country for any home price.
No jumbo credit overlays or loan limits! However, VA jumbo loan amounts exceeding $1,000,000 with 100% LTV will be subject to additional due diligence review before approval.
*Subject to credit approval, requires full entitlement; for purchases and cash-out refinances only and not applicable for loan amounts <= $144,000. For IRRRLs, VA will continue to guarantee 25% of the loan amount without regard to the Veteran’s available entitlement and/or county loan limits.
WHAT ARE THE UPDATED GUIDELINES FOR QUALIFYING FOR A KENTUCKY VA MORTGAGE IN 2020
A Kentucky VA loan is issued by a private lender in Kentucky and insured by the Department of Veterans Affairs or VA . for qualified U.S. veterans, active-duty military personnel and certain surviving spouses.
You were separated from military service in a situation “other than dishonorable discharge.”
As a veteran or active military, you meet specific length-of-service requirements.
You are a reservist or a member of the National Guard.
You are a qualified surviving spouse of a deceased veteran.
In addition, there are these requirements:
The home must be your primary residence.
You must have a valid certificate of eligibility from the VA.
Although the VA has no minimum credit score requirement, most lenders do.
Kentucky VA Mortgage Loan Benefits.
A Kentucky VA loan begins with one important distinction: relaxed credit-qualifying standards in regards to credit scores, past bankruptcies and foreclosures
VA has no minimum credit score requirement, lenders often require scores of at least 580 A few lenders will approve loans with credit scores as low as 500 in some cases .2 year removed from bankruptcy and foreclosure is required too with a clear Cavirs number.
THE MAJOR BENEFITS of a Kentucky VA mortgage are as follows:
$0 down payment unless the purchase price is more than the appraised value of the property or it’s higher than the local VA loan limit.
Mortgage rates are typically lower than rates on conventional loans.
No mortgage insurance is required monthly, just upfront funding fees.
You can reuse your VA loan benefit.
You don’t have to be a first-time home buyer.
VA-backed loans can be assumable — this means they can be taken over by someone you sell the house to, even if that person isn’t a service member.
A bankruptcy discharged more than two years ago — and in some cases, within one to two years — will not preclude you from getting a VA loan.
Types of Kentucky Mortgage VA loans
Home purchase in Kentucky: A Kentucky VA loan can be used to buy an existing home or a condominium in a VA-approved development, or to build a home.
Cash-out refinance in Kentucky: A VA cash-out refi replaces your mortgage with a new loan, while tapping some of your home’s value for things like paying off debt or making home improvements. It also can be used to replace a non-VA loan with a VA loan.
Interest rate reduction refinance loan or rate and term: A VA IRRRL (which is pronounced “Earl”) is also called a streamline refinance loan. You can replace an existing VA loan with a mortgage offering a lower interest rate, or move from an adjustable-rate loan to one with a fixed interest rate. Usually no appraisal or income documentation is needed for most IRRRL Refinances saving you a lot of money and qualifying headaches on a refinance
Although mortgage insurance isn’t charged on Kentucky VA loans, a “funding fee” serves the same purpose: to help lenders defray the expenses of foreclosing on borrowers who default. The fee ranges from 1.25% to 3.3% of the loan balance, depending on your down payment, branch of the military and whether or not it’s your first time getting a VA loan.
The VA funding fee can be rolled into your total loan package, but that will likely raise your interest rate and will absolutely raise your monthly payment.
Though a down payment is not generally required, putting 5% or more down will reduce your VA funding fee. And a down payment will lower your monthly payment, too.
Childcare Expenses
Did you know that VA considers childcare expenses a debt?
VA has given guidance that Borrowers with children age 12 and under must complete and sign a “Child Care Letter”. The lender must obtain the letter from the veteran documenting the childcare expense or detailing why no expense is incurred. Ensure that the current daycare provisions will remain logical based on the location of the new home. If applicable, the name and address of the childcare provider, should be obtained. This expense should be listed under section D, line 29, “Job Related Expense (e.g., child care)” on the VA Loan Analysis.
A “VA Child Care Expense Certification” form can be found on the Fairway website under “Forms & Documents” or by clicking here: VA Child Care Expense Certification
Kentucky VA Guidelines After Bankruptcy And Foreclosure On Waiting Period After Foreclosure
Kentucky VA Loans only have a two year mandatory waiting period after foreclosure, deed in lieu of foreclosure, or short sale for a Veteran to qualify for a Kentucky VA Loan.
Kentucky VA Guidelines After Bankruptcy And Foreclosure On Waiting Period After Chapter 7 and 13
There is a two year mandatory waiting period to qualify for a VA Loan after a Chapter 7 Bankruptcy discharged date and 1 year for A Chapter 13 Bankruptcy
Kentucky VA Loan Process
A list of items needed for underwriting is provided to the buyer based on the buyer’s scenario. Based on the borrower’s scenario, the process is explained which includes the items discussed below such as the VA certificate of eligibility (COE), DD-214, income verification, and more.
How to Apply for a VA Home Loan Certificate of Eligibility (COE)
The first step in getting a VA direct or VA-backed home loan is to apply for a Certificate of Eligibility (COE). This confirms for your lender that you qualify for the VA home loan benefit. Find out how to apply for a COE. Then, choose your loan type and learn about the rest of the loan application process.
How do I prepare before starting my application?
Gather the information you’ll need to apply for your COE. Click on the description below that matches you best to find out what you’ll need:
Veteran
Servicemember
Current or former activated National Guard or Reserve member
Current member of the National Guard or Reserves who has never been activated
Discharged member of the National Guard who was never activated
Discharged member of the Reserves who was never activated
Surviving spouse of a Veteran who died on active duty or who had a service-connected disability
In some cases, you can get your COE through your lender using our Web LGY system. Ask your lender about this option.
By mail
To apply by mail, fill out a Request for a Certificate of Eligibility (VA Form 26-1880) and mail it to the address listed on the form. Please keep in mind that this may take longer than applying online or through our Web LGY system. Download VA Form 26-1880.
Next steps for getting a VA direct or VA-backed home loan
Applying for your COE is only one part of the process for getting a VA direct or VA-backed home loan. Your next steps will depend on the type of loan you’re looking to get—and on your lender (for most loans, the lender will be a private bank or mortgage company; for the Native American Direct Loan, we’ll be your lender).
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/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.
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