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I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
Showing posts with label VA Loan- A step by step guide. Show all posts
Showing posts with label VA Loan- A step by step guide. Show all posts
Kentucky Mortgage VA Loan
.jpg "Kentucky Mortgage VA Loan")
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Why Might You Consider A Kentucky VA Loan Over A Kentucky Conventional Mortgage?
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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 ID# 57916, (www.nmlsconsumeraccess.org).
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...
Louisville Kentucky VA Home Loan Mortgage Lender: How to Get Approved for a Kentucky VA Home Mortgag...:
Basic Understanding of a Kentucky VA Mortgage Loan Approval Process. The VA makes a guarantee to the lending institution (the insurance)-for...
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Kentucky VA Home Loan Requirements for Approval
Minimum credit score
Qualifying for Veteran Home Loans
The Veteran Loan program is designed for veterans who meet the minimum number of days of completed service. Some of the other eligibility requirement for the VA loan program[5] and some specific home loan benefits include the length of service or service commitment, duty status and character of service. The program does allow for benefits to Surviving Spouses.
The VA does not have a minimum credit score used for pre-qualifying for a mortgage loan, however, most Lenders require a minimum credit score of at least 620.[6]
A Veteran who has used their entitlement to previously purchase a home, may have entitlement left to purchase another one. If you previously purchased a home using your VA Benefits then you might still have some of that “Entitlement” available to you for the purchase a new home. To Calculate Maximum Entitlement available, consider the following:
- If your previous home was purchased using a VA Loan, and that loan was paid off by the new owners, the full entitlement may have been restored.
- If you sold your home to someone, and allowed them to assume your VA Loan, then you might have the full entitlement restored, if one or more of the purchasers were also Veterans.
- If you still own the home, and you are renting it out – you might be able to purchase a new home using your partial entitlement, but there are several restrictions.
Allowable Income Sources used to qualify for a VA Loan include: Retirement Income, Social Security Income, Child Support, Alimony and Separate Maintenance, BAH, BAS and Disability Income. Dependency and Indemnity Compensation (DIC) for a Surviving Spouse can also be included. In addition, stable, documented income from employers remains the best income source for VA loans.
Requirements
VA Loan application
The VA loan application is a standardized loan application form 1003 issued by Fannie Mae also known as Freddie Mac Form 65. It is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements on a VA loan application under the provisions of Title 18, United States Code, Section 1001, et seq.
You will need the following paperwork to apply:
- Copies of your W2 statements for the past two years, so your gross household income can be confirmed,
- Copies of your previous two pay stubs,
- Documentation of other assets (checking accounts, savings accounts, financial investments, trust funds, etc.),
- If self-employed, two years of consecutive tax returns will be required.
- The Veteran also needs to supply their DD 214 and Certificate of Eligibility (COE)
On June 25, 2019, the Blue Water Navy Vietnam Veterans Act of 2019 was signed into law temporarily increasing the VA funding fee for active duty service members and veterans starting January 1, 2020. The law removed VA county loan limits for homebuyers with full VA loan entitlement and made Purple Heart recipients exempt from paying the VA funding fee.[3] Several members of Congress were displeased after the passing of the act, writing an open letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy asking that future bills not be paid for by increasing VA loan fees.[4]
Funding fees
A funding fee must be paid to VA unless the veteran is exempt from such a fee because he or she receives a minimum of 10% VA disability compensation. If a veteran is awarded disability compensation after paying a funding fee, he/she can apply for a refund of this funding fee, so long as the beginning date of the disability is prior to the closing date of the home mortgage.
In August 2012, Congress passed a bill that allows a Veteran to receive the benefits of having Veteran Disability while it is still pending. The amount paid for the funding fee can be refunded back to the Veteran when a determination is made and the paperwork is received.
The VA Funding fee may be paid in cash or included in the loan amount. Closing costs such as VA appraisal, credit report, loan processing fee, title search, title insurance, recording fees, transfer taxes, survey charges, or hazard insurance may not be included in the loan. However, the seller may pay these on behalf of the VA borrower.
Purchase and construction loans
Due to the Blue Water Navy Vietnam Veterans Act of 2019, the VA funding fee is equalized for all branches of service starting January 1, 2020. For active duty military members and veterans, this means an increase in VA funding fee costs for a period of 2 years. If you have a service-connected disability that you are compensated for by the VA or if you are a surviving spouse of veteran who died in service or from service-connected disabilities, the funding fee is waived.
| Type of Veteran | Down Payment | First Time Use | Subsequent Use |
|---|---|---|---|
| Regular Military, Reserves/National Guard | None 5%-9.99% 10% or more | 2.3% 1.65% 1.4% | 3.6%* 1.65% 1.4% |
The VA funding fee can be financed directly into the maximum loan amount for the county in which the home is located. For subsequent use VA loans, if the sales price and the financed VA funding fee total more than maximum loan amount for that county, the borrower or seller must pay for the fee out of pocket. All VA loans require an impound account for property taxes and homeowners insurance which makes the monthly payment of VA loans calculated as a PITI payment.**
Cash-out refinancing loans
| Type of Veterans | Percentage for First Time Use | Percentage for Subsequent Use |
|---|---|---|
| Regular Military, Reserves/National Guard | 2.3% | 3.6%* |
- The higher subsequent use fee does not apply to these types of loans if the veteran’s only
prior use of entitlement was for a manufactured home loan.
Other types of loans
| Type of Loan | Percentage for Either Type of Veteran Whether First Time or Subsequent Use |
|---|---|
| Interest Rate Reduction Refinancing Loans | .50% |
| Manufactured Home Loans | 1.00% |
| Loan Assumptions | .50% |
- Veterans who previously lived in a home they had to then rent out will typically qualify for a no appraisal Interest Rate Reduction Refinance. The Veteran's Administration also allows Veteran Homeowners to refinance from a Conventional loan to a VA mortgage Loan. This process, however, does require an appraisal.
0% DOWN PAYMENT
580 or Higher Credit Score with most lenders I work with even though VA does not have a minimum credit score.
2.30% Upfront Mortgage Insurance Premium (First-Time Use)
Financed into Loan Amount
Will Vary Depending on Down Payment and Subsequent Use
No Mortgage Insurance Required
No Maximum Loan Amount
Higher Loan Amounts Available with Down Payment
Great Option for Veterans or Active Military
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Kentucky VA Loan Guidelines
VA Loan Credit Issues
VA will analyze a borrower’s past credit performance in determining the loan for approval. A borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. On the opposite side, a borrower who reflects continuous slow payments, judgments and delinquent accounts is not a good candidate for loan approval.Below is a list of items concerning the borrower’s credit:
LATE MORTGAGE PAYMENTS
When the underwriter analyzes the borrowers credit; it is the overall pattern of credit behavior that must be reviewed, rather than isolated cases of slow payments. A period of financial difficulty does not disqualify the borrower if a good payment pattern has been maintained since then.
Account balances reduced to judgment by a court must either be paid in full or subject to a repayment plan with a history of timely payments.
NO CREDIT HISTORY
CHAPTER 7 BANKRUPTCY
CHAPTER 13 BANKRUPTCY
COLLECTIONS, JUDGEMENTS AND FEDERAL DEBTS
FORECLOSURE
In order to verify your credit history, your lender will obtain a credit report containing
information as reported by all 3 of the major credit bureaus: Trans Union, Equifax and Experian.
Most people will have 3 credit scores but it is possible that you may have only 1 or two scores if
you have limited credit history.
This report will also include information on any public records such as bankruptcies,
judgments and tax liens.
Credit Scores
Though VA does not have a set minimum credit score requirements, lenders will have a minimum credit
score requirement.
Collection account may need to be paid off in order to close your loan
It is preferable that the most recent 12 months show satisfactory payments and no other derogatory
information.
Credit History
If you experienced a major derogatory credit event, there will be waiting periods that will have to
be observed before you can be eligible to qualify for a loan.
Bankruptcy Chapter 7
2 years from discharge date
Bankruptcy Chapter 13
Immediately after discharge or
After 12 months of payments***
Foreclosure*
2 years from completion date
* If the foreclosure or short sale was on a VA loan, you may not have full entitlement available
for the new loan
*** Must obtain written permission from the bankruptcy court/trustee and provide proof of
satisfactory payment history
Income and Employment
Minimum History of Employment
A minimum of 2 year history in the same industry/line of work is required in most instances but
it’s not a universal rule.
Recent graduates can satisfy the two year requirement by providing proof of schooling with a degree
for the line of work you are now
employed in.
Active duty members do not need a two year history as long as the minimum service requirement for
eligibility has been met.
Self employed borrowers must always have a two year history of self employment and must show a two year history of filed tax returns to meet the 24 month requirement.
Income Calculations
If you are salaried, your base income will be used to qualify you for the loan.
However, if you are an hourly employee with varied hours, more than likely, your income will be
averaged over an extended period such as 18 or 24 months depending on the situation.
Overtime, bonuses, commission and part time employment must have a 24 history in order to be
included in the qualifying income.
The income will be averaged out over 24 months. Verification of
likelihood to continue will also be required.
Non taxable income can be grossed up to account for the non-taxable status.
Retirement, Disability, alimony and child support income does not require a 2 year history but
verification that it will continue for at least 3 years is required in order for it to be included.
ASSETS
No down payment does not mean no cash needed
VA does not require additional cash to cover a certain number or mortgage payments or unplanned
expenses (cash reserves), however, your ability to accumulate liquid assets and the amount of
assets currently available is taken into consideration in the overall credit worthiness analysis.
Allowable source of funds
Funds for your down payment, closing costs and other expenses can come from:
• Checking/savings accounts
• Investment accounts
• Retirement account
Gift funds from a relative are an allowed source of funds to cover down payment and or closing
costs.
The gift will need to be verified and paper trailed via bank statements and a gift letter will need
to be signed
by your and the gift donor .
Funds from unsecured loans (signature loans, credit card advances) or funds that can not be
documented are not acceptable source of funds.
Federal regulations require that all deposits into your account be documented.
In the instance of payroll deposits, nothing will need to be done if the deposit shows as a Direct
Deposit from your employer.
All other deposits will need to be explained and documented.
A debt to income ratios
-A debt to income ratios is the percentage of your total debt obligation, including the new estimatedmortgage payment, all debts shown on your credit report, as well as alimony, child support etc, as
compared to your gross qualifying income.
EXAMPLE
The rule of thumb is that your debt to income ratio should not exceed 50% of the usable, gross monthly
income. However, higher percentages can be approved.
In addition to the debt to income ratio requirements, VA also has residual income requirements. VA residual
income looks at how much income is available after all monthly liabilities, including tax withholdings,
utilities and child care, are accounted for.
Residual Income By Region
For loan amounts of $80,000 and above
Family
Size
Northeast Midwest South West
1 $450 $441 $441 $491
2 $755 $738 $738 $823
3 $909 $889 $889 $990
4 $1025 $1033 $1033 $1117
5 $1062 $1039 $1039 $1158
over 5 Add $80 for each additional member up to a family of
seven
2400/5000= 48%
Deferred student loans
If student loan repayments are scheduled to
begin within 12 months of the date of loan
closing, the anticipated monthly payment will
be included.
If you are able to provide evidence that the
loan(s) will be deferred for a period outside
that time frame, the payment will not be
included.
Qualifying income: $5000
New mortgage payment: $2000
All other obligations: $400
Monthly debt payments
The payments shown on
your credit report will be
used to qualify you. If the
payments are incorrect,
you will be asked to
provide proof of the correct
payment.
Co-signed loans
If you co-signed for someone on a loan and
that loan is showing on your credit report, the
payment will be included in the ratios unless
you are able to provide evidence that the other
person on that loan has been making the
monthly payments from an account that you
are NOT a co-owner on.
Alimony/child support
You will be expected to
truthfully declare that
you pay alimony or child
support. You will be asked
to provide your divorce
decree and/or child support
order to verify the amounts.
Non-purchasing spouse
You should be aware that if you purchasing a home
in a community property state such as California
and are married, your spouse’s credit report will be
required. His/her debts will be included in the ratio
calculations even if he/she is not going to be on the
purchase or loan.
Home
Documentation Checklist
Joel Lobb
Mortgage Loan Officer
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
fax: 502-327-9119
email: kentuckyloan@gmail.com
email: kentuckyloan@gmail.com
Fill out my form!
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Getting your Louisville Kentucky VA Loan Approval.
Getting your Louisville Kentucky VA Loan Approval
Step 1: Determine If You Are Eligible
We will cover the Proof of Eligibility Process below but in general, the following people are eligible for a VA-Backed Home Loan:
* Veterans
* Active duty personnel
* Reservists/National Guard members
* Some surviving spouses
We will cover the Proof of Eligibility Process below but in general, the following people are eligible for a VA-Backed Home Loan:
* Veterans
* Active duty personnel
* Reservists/National Guard members
* Some surviving spouses
Get The Proof You Need To Show You Are Eligible For The VA Loan Program
You’ll need a Certificate of Eligibility before you can get a VA-backed loan. This section shows how you can apply for one.
Among categories A, B, and C below, find the one that matches your situation.
| Category A: Veterans, Active Duty, and Reservists/National Guard Members Who Have Served on Active Duty You can get a Certificate of Eligibility in any of three ways: 1. Apply online. Go to the Veterans Information Portal (http://vip.vba.va.gov) and click on User Registration. Click Here for user instructions for applying online. 2. Apply through us. In many cases, we can obtain a Certificate online in minutes. Check the table below entitled, “Evidence Needed for the Certificate of Eligibility.” 3. Apply by mail. Use VA Form 26-1880. Return it to the address shown on the form. If you can’t print the form, just call 1-888-244-6711 and follow the prompts for Eligibility. Evidence Needed for the Certificate of Eligibility: | |
| If you are: | You need to submit: |
| Veteran (Includes a member or former member of the National Guard or Reserves who was once activated for Federal Service) | DD Form 214; We are required to have a copy showing the character of service (item 24) and the narrative reason for separation (item 28). |
| Active Duty Servicemember | A current statement of service signed by (or by the direction of): the adjutant, personnel office, or commander of the unit or higher headquarters showing: Your full name Social Security Number Date of birth Entry date on active duty The duration of any lost time The name of the command providing the information |
11) Not Active: Please include copy of DD214 if not currently active
Active: Copy of Current “Service Statement” (obtained from base personnel or online) and PCS Orders to Michigan
12) Copy of VA Certificate of Eligibility (or fill out VA form 26-1880) and fax to me.
Certificate of Eligibility, DD214, Kentucky VA Home Loans, Louisville VA Lenders, VA Loan- A step by step guide, debt ratio va loan, Kentucky VA Loan Approval, Louisville VA Lenders, VA Funding Fee Chart, VA Mortgage Loan Checklist, VA Mortgage Streamline (IRRRL), VA loan limits KY 2014,
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Louisville Kentucky VA Mortgage Requirements for income and debt to income ratios:
Louisville Kentucky VA Mortgage Requirements for income and debt to income ratios:
Kentucky VA lenders use debt ratios to help determine affordability. The VA Underwriting uses a debt ratio of 41% when approving a Kentucky VA home loan application. That simply means if someone makes $4000 per month, before withholdings, VA loans require mortgage payments plus other revolving and installment debt payments be no greater than $6,000 X .41 = $1640 a month.
Sometimes VA lenders will allow for you to have a debt to income ratio over 41%, but that usually entails you have a credit score of 680 or higher, with at least 6 months reserves.
With most Kentucky VA mortgage Lending tied to the automated underwriting thru Desktop Originator, most Kentucky VA home buyers will get a refer if the score is below 680.
If happen to get a refer eligible on your Kentucky VA loan approval thru DU, then you must make sure your debt to income ratio is not over 41%, and you will have to prove a good payment history on your last 12 months of housing history.
Significant Increases or Decreases in Income
Increase: When a borrower has experienced a significant increase in income, the higher income may not be used to qualify the borrower, unless there is sufficient documentation to determine that the increase is stable and likely to continue at the level used for qualifying (e.g. that the income in not a one-time incentive payment).
Decrease: When the borrower has experienced a significant decrease in income, the income cannot be averaged using a previous higher level unless there is documentation of a one-time occurrence (e.g., injury) that prevented the borrower from working or earning full income for a period of time and proof that the borrower is back to the income amount that they previously earned. The underwriter must focus the analysis on the most recent earnings and the income that is most likely to be received at the level used for qualifying.
Residual Income for A Kentucky VA Loan
Residual income is the amount of net income remaining (after deduction of debts and obligations and monthly shelter expenses) to cover family living expenses such as food, health care, clothing and gasoline. See tables below for residual income requirements.
Count all members of the household (without regard to the nature of the relationship) when determining "family size," including:
An applicant's spouse who is not joining in title or on the note, and
Any other individuals who depend on the applicant for support. For example, children from a spouse's prior marriage who are not the applicant's legal dependents.
Reduce the residual income figure (from the following tables) by a minimum of 5 percent if:
The applicant or spouse is an active-duty or retired serviceperson, and
There is a clear indication that he or she will continue to receive the benefits resulting from use of military-based facilities located near the property.
Use 5 percent unless the VA office of jurisdiction has established a higher percentage, in which case, apply the specified percentage for that jurisdiction.
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
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