Kentucky Mortgage VA Loan

 

Kentucky Mortgage VA Loan Approval Tips

Understand your eligibility: Familiarize yourself with the eligibility requirements for a Kentucky VA loan. Ensure you meet the service requirements and obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs (VA) before applying for a loan.

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Check your credit score: Although the VA doesn't have a minimum credit score requirement, most lenders do with that threshold being 620, with some going down to 580. Ensure your credit score is in good shape before applying for a Kentucky VA loan. Review your credit report, dispute any errors, and take steps to improve your score if necessary.

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Save for a down payment if possible: Kentucky VA loans typically do not require a down payment, but having some savings set aside can be helpful. It can be used for closing costs or as a buffer for unexpected expenses during the home buying process.

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Gather necessary documents: Be prepared to provide documentation such as pay stubs, tax returns, bank statements, and other financial records. Start gathering these documents early to expedite the loan application process.

Get preapproved: Getting preapproved for a Kentucky VA loan can give you a clearer understanding of your budget and help you in the home search process. It also demonstrates to sellers that you are a serious buyer.

Shop around for the best rates: While VA loans generally have competitive interest rates, it's still important to shop around and compare offers from different lenders. This can help you secure the best rate and terms for your loan.

Be mindful of the property requirements: VA loans have specific property requirements, including a VA appraisal to ensure the property meets VA guidelines. Be aware of these requirements to avoid potential issues during the loan process.

Understand the funding fee: Kentucky VA loans require a funding fee, unless your are exempt due to disability rating from VA, which helps offset the cost of the loan program to taxpayers. Be aware of the funding fee percentage based on your specific situation and factor it into your budget.

Work with a knowledgeable Kentucky VA Mortgage real estate agent: Partnering with a real estate agent who understands the Kentucky VA loan process can be beneficial. They can guide you through the home-buying process and help you find properties that meet Kentucky  VA loan requirements. 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 57916  | Company NMLS #1364/MB73346135166/MBR1574 Get Approved Now Click Here 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).

Up to 100% Cash Out with our Kentucky VA Home Loan Program

 

Kentucky VA Home loan Program Highlights

DTI as approved by AUS to a max of 60% Manual underwriting allowed for tough Kentucky VA Mortgages No FICO Allowed, Manual Underwrite Only - Max DTI 45% for VA  Kentucky VA mortgages down to 580 credit score  Chapter 7 Bankruptcy discharged 2 years okay for VA Loans

Kentucky VA Home Loan Mortgage Lender: Understanding Your Kentucky VA Home Loan Benefits

Louisville Kentucky VA Home Loan Mortgage Lender: Understanding Your Kentucky VA Home Loan Benefits

Kentucky VA Home Loan Mortgage Lender:

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Is your credit score high enough for a  Kentucky VA Home Loan Approval?

Usually, 620 or Higher is better for 2 reasons lower rate and less
stipulations from the underwriter

Do you have sufficient credit depth for a Kentucky VA Home Loan Approval?

Generally, all on-time payments in the last 12 months. They like to see two-three paid on time  for the last 12 months


Do you make enough money to cover all your debts, including the new
Kentucky VA mortgage?

Debts divided by your gross monthly income is lower than 50%. I have
seen many exceptions to this with compensating factors. I have seen as high as 78% debt ratio get approved through the AUS if you have high credit scores (720 or higher, good residual income, a lot of assets, ie money in the bank, retirement, etc.

-Do you have a high probability of continuing to make that same income?

Two years of stable job history is the best. If you were off work sometimes a good letter of explanation will suffice for a job gap. i.e. hurt, medical, etc.


What is a credit score required for a Kentucky VA Home Loan? 

There is no minimum credit score in the VA guidelines.
But, the lender may have a minimum score. It is called credit "overlays".
Most Kentucky VA Home lenders will require a 620 middle credit score.
You have three fico scores from Experian, Equifax, and Transunion.
They will use the middle score of the three. For example, if you have a 675,689,619,
your qualifying fico score to be used would be 675. you can possibly get a VA home
loan approval with a lower score, but you will
have to provide a lot of other information to get that approval

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 What does Debt to income mean for a Kentucky VA Home Loan Approval?

Your ratio of total monthly debt payments on the credit report divided by your gross
monthly income. They do not include, utilities, car insurance, cell phone bills,
only credit reporting items. Typically on a VA home loan, they like to see that number around 43% on the back-end ratio for loan approval. You can go above this with high credit scores, good residual income, assets in the bank, etc. Conversely, if you have a low fico score, no money in the bank, going up in house payment from your current housing payment, or low va residual income. then you will need to be under this.

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...

Louisville Kentucky VA Income Guidelines

Louisville Kentucky VA Residual Income Guidelines

Residual Income

VA residual income is one of the major underwriting guidelines required to qualify for a Louisville Ky VA mortgage. Residual income is calculated by determining the gross monthly income of the veteran and spouse. Then, ... deduct from that total gross monthly income the following monthly expenses:

0



State Taxes

Social Security

Federal Taxes

Proposed new monthly house payment (PITI: principle, interest, taxes and insurance)

Estimated Maintenance and Utilities

Monthly Child Care Expense

Alimony or Child Support

Monthly consumer debt payments: installment and revolving credit cards

The balance remaining is "residual income" and will determine whether the borrower qualifies based on the table below.



Louisville Ky VA's minimum residual incomes (balance available for family support) are a guide. They should not automatically trigger approval or rejection of a loan. Instead consider residual income in conjunction with all other credit factors.



An obviously inadequate residual income alone can be a basis for disapproving a loan.



If residual income is marginal, look to other indicators such as the applicant's credit history, and in particular, whether and how the applicant has previously handled similar housing expense.



Consider whether the purchase price of the property may affect family expense levels. For example: A family purchasing in a higher priced neighborhood may feel a need to incur higher-than-average expenses to support a lifestyle comparable to that in their environment. Whereas a substantially lower priced home purchase may not compel such expenditures.



Also consider the ages of the applicant's dependents in determining the adequacy of residual income. 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.

Exception: The lender may omit any individuals from "family size" who are fully supported from a source of verified income which, for whatever reason, is not included in effective income in the loan analysis.



For example: A spouse not obligated on the note who has stable and reliable income sufficient to support his or her living expenses, or a child for whom sufficient foster care payments or child support is received regularly.



Reduce the residual income figure (from the following tables) by a minimum of 5% 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% unless the Louisville Ky VA office of jurisdiction has established a higher percentage, in which case, apply the specified percentage for that jurisdiction.

Louisville Kentucky VA Residual Income Guidelines

One of the most important — and often overlooked — requirements for a VA home loan in Louisville and across Kentucky is residual income. This rule ensures veterans and their families have enough money left over each month to cover daily living expenses after paying the mortgage, taxes, and other obligations.

What Is Residual Income?

Residual income is the amount of money you keep after paying:

• Federal, state, and Social Security taxes
• Your new house payment (PITI: principal, interest, taxes, insurance)
• Utilities and estimated home maintenance
• Child care, alimony, or child support
• Consumer debts like car loans and credit cards

The VA requires a minimum residual income based on family size and region. Louisville and all of Kentucky fall into the South Region.

VA Residual Income Chart for Kentucky (Loans Over $80,000)

Family Size	Minimum Residual Income
1	$441
2	$738
3	$889
4	$1,003
5	$1,039

Add $80 for each additional family member beyond five.

Why It Matters

Residual income helps prevent veterans from becoming “house poor.” Even if your debt-to-income ratio looks good, the VA double-checks that you’ll still have enough left over each month to take care of your family.

If you’re slightly below the guideline, other strengths like good credit history or savings may help, but falling far short of the requirement can be a deal breaker.

FAQ: Louisville VA Residual Income

Q: Who counts toward family size?
A: Everyone in the household — including a spouse not on the loan and dependents — unless they are fully supported by outside verified income.

Q: Can I still be approved if my residual income is short?
A: NO

Q: How does this differ from debt-to-income ratio?
A: DTI looks only at income versus debt. Residual income measures the cash left over for everyday living after those debts are paid.

Kentucky VA Residual Income Guidelines Slides Graphs

A Kentucky Veteran's Guide to VA Residual Income

Introduction: What Kentucky Veterans Need to Know

As a Kentucky veteran, you have access to one of the most powerful home loan programs available: the VA home loan. One of the key requirements for this loan is meeting the VA's residual income guidelines. This guide is designed to help you understand what residual income is, how it's calculated, and what the specific requirements are for veterans living in Kentucky.

Kentucky is part of the VA's South region, which has its own set of residual income requirements. Understanding these requirements will help you prepare for the home loan process and increase your chances of getting approved for a VA loan.

Residual Income Requirements for Kentucky

As a resident of Kentucky, you fall under the VA's South region for residual income calculations. The amount of residual income you'll need depends on the size of your family and the amount of your loan. Here's a table that breaks down the requirements for the South region:

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	$1,025	$1,003	$1,003	$1,117
5	$1,062	$1,039	$1,039	$1,158

For families larger than 5, add $80 for each additional member up to a family of seven.

It's important to remember that these are the minimum requirements. If your debt-to-income ratio is higher than 41%, your lender will likely require your residual income to be at least 20% higher than the amounts listed in the table.

Local Resources for Kentucky Veterans

If you have questions about your VA loan benefits or need assistance with the home loan process, there are several resources available to you in Kentucky:

•Kentucky Department of Veterans Affairs (KDVA): The KDVA is your primary advocate for all veterans benefits in Kentucky. They can provide you with information and assistance on a wide range of topics, including VA home loans. You can visit their website at veterans.ky.gov.

•VA Regional Loan Center: The VA Regional Loan Center for Kentucky is located in St. Paul, Minnesota. However, you can find a list of VA-approved lenders in Kentucky on the VA website.

•Local Veteran Service Organizations: Organizations like the Veterans of Foreign Wars (VFW) and the American Legion have posts throughout Kentucky and can provide you with support and guidance.

By understanding the VA residual income requirements and utilizing the resources available to you, you can make your dream of homeownership a reality.

Want to See If You Qualify?

I’ll run your residual income numbers and give you a free VA loan pre-qualification for Louisville or anywhere in Kentucky.

📞 Call/Text Joel Lobb at (502) 905-3708

Apply Online Now

EVO Mortgage | NMLS #1738461 | Joel Lobb NMLS #57916 | Equal Housing Lender

 Call/Text - 502-905-3708

 www.mylouisvillekentuckymortgage.com
 911 Barret Ave., Louisville, KY 40204

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