KENTUCKY VA MORTGAGE QUALIFYING GUIDELINES

 

What are Kentucky VA Home Loans?

VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today's VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of homes current equity.

What are the eligibility requirements for a VA Loan in Kentucky?

Veterans Affairs loan guidelines use two methods of income qualification in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). 

Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 580 to 620 credit score for a VA Loan approval. Keep in mind, VA guidelines do not call for a credit score but most lenders institute minimum credit score overlay to protect from buybacks from VA loans if they have too many go into foreclosure

How much can I borrow?

The maximum Kentucky VA Mortgage amount is determined by:

Maximum VA Loan in Kentucky: The largest loan allowed for VA mortgages with zero down is now based on your VA loan entitlement in KY. Please refer to the Kentucky VA Loan Limit chart at the bottom of this page to see your area's limit.

Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value.

What will the down payment and closing costs be?

No down payment required and closing costs vary from lender to lender and usually is based upon the loan amount, credit score, time to close (lock period) and whether or not you get a par rate or a higher rate with a lender credit to pay some of your closing costs at closing.

What property types are allowed for VA Loans in Kentucky?

VA Loans may be used to purchase or refinance single-family residences and VA approved condo projects if the property is the veteran's primary residence.

Can I do a VA refinance in Kentucky?

Three kinds of VA Refinance programs are available for veterans in Kentucky.


Rate/Term VA Refinance

The Rate/Term VA Refinance can be used to refinance a conventional, FHA or subprime mortgage into a stable, fixed rate VA Loan.


VA Cash-Out Refinance

A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a home's current value and take cash out for any reason.


Streamline Refinance

The VA Streamline Refinance is designed to lower the interest rate on a current VA mortgage or convert a current VA adjustable-rate mortgage into a fixed rate. A VA Streamline Refinance Loan can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

How much can I refinance in Kentucky?

The maximum amount for an KY VA loan is determined by:


Maximum VA Loan in Kentucky: The largest loan allowed for a VA Mortgage varies from county to county. To see what the limit is in the county in which you're interested, visit the following page


👇👇

https://www.benefits.va.gov/HOMELOANS/purchaseco_loan_limits.asp.


This site lists U.S. territories as well as states.


Maximum Finance: In Kentucky, the maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 100% of the appraised value for a VA cash out refinance.

What factors determine if I am eligible for a VA Refinance Loan?

VA refinance loans use two methods for income qualification purposes in Kentucky. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt-to-income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 580-credit score for a VA Loan approval.

Why choose a VA Home Loan?

Kentucky VA Mortgages require no down payment.

There are no prepayment penalties for VA Home Loans.

A Kentucky VA Loan is fully assumable, provided the person assuming is qualified.

VA Mortgage Loans have no PMI premiums.

A VA Mortgage Loan is eligible for non-credit qualifying, Streamline Refinance or "IRRRL".

A VA Home Mortgage is available all areas of the country, provided a market exists for the property and the home meets VA's property standards.

A VA Home Loan may be used to purchase or refinance a new or existing home.

Kentucky VA Loans are offered at terms of 15 or 30 years.

Joel Lobb
Senior Loan Officer
(NMLS#57916

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.com
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). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

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

In circumstances not involving bankruptcy, satisfactory credit is generally considered to be reestablished after the veteran, or veteran and spouse, have made satisfactory payments for 12 months after the date of the last derogatory credit item(s).
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

In the area of credit, the lack of an established credit history should not be a deterrent to loan approval. As provided in the credit standards, a satisfactory payment history on items such as rent, utilities, phone bills, etc., may be used to establish a satisfactory credit history.

 

CHAPTER 7 BANKRUPTCY

The Kentucky VA guidelines state that a minimum of two years must elapse since the discharge date of the borrower and / or spouse’s Chapter 7 bankruptcy, not the filing date. A full explanation of the bankruptcy will be required. The borrower must also have re-established good credit, qualify financially and have good job stability.

 

CHAPTER 13 BANKRUPTCY

The Kentucky VA guidelines state that they will consider a borrower still paying on a Chapter 13 Bankruptcy if the payments to the court have been satisfactorily made and verified for a period of one year. In addition, the court trustee will need to give written approval to proceed. A full explanation of the bankruptcy will be required. The borrower must also have re-established good credit, qualify financially and have good job stability.

 

COLLECTIONS, JUDGEMENTS AND FEDERAL DEBTS

The Kentucky VA guidelines state that if a collection is minor in nature, it usually does not need to be paid off as a condition for loan approval. Judgments must be paid in full prior to closing. A borrower is not eligible for the loan if they are delinquent on any federal debt. This can include tax liens, student loans, etc. Payment arrangements that would bring the borrower up to date may be considered for loan approval.

 

FORECLOSURE

A borrower whose previous residence or other real property was foreclosed on or given a deed-in-lieu of foreclosure within the previous two years since the disposition date is generally not eligible for a VA insured mortgage. If the foreclosure was on a Kentucky VA loan, the applicant may not have full entitlement available for the new loan.

 

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 estimated

mortgage 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

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

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

https://www.mylouisvillekentuckymortgage.com/

Fill out my form!

Kentucky FHA loans vs Kentucky USDA Loans for Kentucky Home buyers.

Criteria	Loan Type
	FHA	USDA
Down Payment	3.5%	0% – None
PMI	.85%	0.35%
Funding Fee *	1.75	1.0
Limits (loan)	Per County	None
Limits (income)	None	YES -per county,etc
Restricted location	None	YES
Credit score	580 down to 3.5% 500 score with 10% down payment	no minimum score

There are a few other points that put the Kentucky USDA loan at an advantage over the Kentucky FHA mortgage program such as the appraisal value. USDA appraisal value is normally higher than the selling price. If the appraisal value is more than the purchase price, this becomes an additional advantage for borrowers as the USDA will permit you to roll in closing costs.

Essentially the only issues that could be considered as drawbacks of the USDA loan are the restriction of location and the USDA RD income limits. The location must be in a designated rural area with a total population of 20,000. This can be a setback for those who do not want to drive farther to get to work in the city. But buyers should check their location in detail, please click here for the USDA housing map. Many populated locations just outside of the big cities are USDA rural housing approved - locations just outside of Louisville, Ky, Lexington Kentucky, and Northern Kentucky Counties..

Additionally, the USDA ‘s income limit imposed on would-be borrowers is currently set at 115% of the median or average income of the area where your home is to be situated. That means for those who have a higher income than the average in town would have to opt for mortgage loans under the FHA or through a conventional lender if they so decide to live in a rural area.

Regarding the rates as well as the guidelines in qualifying potential borrowers, the FHA and USDA are just about equally matched, and they are currently at historic low rates. However, the USDA, unlike the FHA, allows borrowers to finance the whole purchase price and include any closing expenses as well into the loan.

Lastly, all USDA guaranteed loans have a 30-year fixed rate term. This can be very advantageous mainly when the homeowner eventually starts earning more than the required 115% median, the rate is fixed and even after 10 years only, will practically be insignificant compared to other monthly expenses at this time.

The funding fee in both governments backed programs are incorporated (rolled into) into the overall loan.

Apply for FREE Below for your Kentucky FHA Mortgage loan or USDA Loan:

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax

http://mylouisvillekentuckymortgage.com 

Fill out my form!

Kentucky FHA Mortgage Guidelines

The credit score requirements for Kentucky FHA home loans:

FHA says on paper in their written guidelines that they will insure a FHA loan down to 500 - 579 with a 10% down payment or 580+ with a 3.5% down payment. However, in the real world of lending in the secondary market, most lenders will not adhere to these guidelines.
Most FHA investors will want a 620 middle credit score, but they're a few that will go by the written FHA guidelines above for credit scores, but very few. Your best bet is to get with a loan officer and get your scores up to at least 580 so you can have a better shot of getting approved and access to more FHA lenders.

Bankruptcy Requirements for Kentucky FHA Home Loans:

FHA states in their published guidelines that if you had a Chapter 7 Bankruptcy, you must wait 2 years from the discharge date to reapply for a FHA insured mortgage loan.


If you had a Chapter 13 Bankruptcy and have a 12 month on-time payment history with the courts, you can potentially get approved for a FHA loan if you get permission from the trustee and qualify with the Chapter 13 payment plan in your debt-to-income ratio. If you have been in the plan for over 12 months, and have a good pay history, you can submit your paperwork for FHA approval.


For example, let's say you have been in the Chapter 13 repayment plan for 3 years and you want to buy a home using FHA financing. You could go ahead and petition the Chapter 13 trustee for approval from the courts to get a home loan. The trustee of the Chapter 13 courts will want to know your new loan payment with the home loan, so make sure you know how much you want to borrow before you apply,.

Collections on Credit Report Requirements for Kentucky FHA Home Loans:

:
If the credit report shows a cumulative balance of $2,000 or more for collection accounts:
The debt(s) must be paid in full prior to or at closing, or
Payment arrangements must be made with the creditor and the monthly payment included in the DTI, or
A monthly payment of 5% of the outstanding balances of each collection must be included in the borrower’s DTI.
Collection accounts of non-borrowing spouses in a community property state must be included in the $2,000 cumulative balance and analyzed as part of the Borrower’s ability to pay all collection accounts. Community property states are Arizona, California, Texas, Washington, and Wisconsin

Short-sale or Foreclosure Guidelines for a Kentucky FHA Loan:

If you have experienced a short-sale or foreclosure, FHA states that you must wait 3 years from the date of the sale to obtain FHA financing again. And important note is this: The waiting period starts not when you were discharged from the home or bankruptcy, the waiting period starts when the home is sold and the deed transferred at the courthouse. This is important to remember because a lot of people think it starts when they vacate the home or when there bankruptcy is discharged if the mortgage was in the bankruptcy, but it does not!!! The date used to end the waiting period starts when the deed is transferred at the courthouse from the owner to back to bank or whomever buyus the home in the default.

Delinquent Federal Debt (Taxes, Student Loans) Kentucky FHA Loan Requirements:

If you have a delinquency with the Federal Government, this could hurt your chances of getting approved for a FHA backed Mortgage Loan. Here is why:


All FHA participants are ran through the CAVIRS Alert System administered by HUD to check to see if the mortgage applicant is delinquent to the Federal Government. This usually arises from an IRS income tax lien, overpayment on a social security claim, or lastly, a defaulted student loan.
A lot of the times FHA borrower don't realize that if they don't pay there Federal backed student loans, they go into default and this will hold you up from getting a FHA loan or possibly they will hold your tax refund.
If you have been delinquent on your student loans, you have to call and get on a 9 month repayment plan with them and they will clear you of your CAVIRS Alert. The payment plan can be as little as 5 or $10 a month, but the important thing is to get started so this will improve your credit rating too along with releasing the liens against you for other federal assistance like tax refunds, social security payments and benefits to name just a few.


I have done many FHA loans in Kentucky where they have rehabbed their student loans if they are backed by Federal government and got them loan after 9 months.
If you happen to have an agreement already worked-out with the IRS or student loan creditors, sometimes we can take that arrangement and get you approved sometime with FHA depending on the lender.

Child Support Obligations Kentucky FHA Loan Requirements:

If the credit report shows a delinquent child support agreement, the FHA Government Underwriter will want to see the current child support agreement and what the monthly payment is so as to make sure they have your debt-to-income ratio figured correctly. You can have a delinquency report of child support on your credit report and still get an FHA loan.


It is okay to be paying child support, a lot of times it shows on a borrower's paystubs, and if so, we simply use that child support obligation to use for debt-to-income ratio qualifying.






Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916


American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

click here for directions to our office

Text/call: 502-905-3708

email: kentuckyloan@gmail.com


https://www.mylouisvillekentuckymortgage.com/

How do I get a copy of my credit report? — consumerfinance.gov

The Mortgage Process to Close a Mortgage Loan in Kentucky

Start your Application – Your Personal Mortgage Advisor will

collect your documents for income and asset validations along with 2 year work history, pull your credit and go over the report and submit your loan for a mortgage pre-approval letter. Usually can be done less than 1 day as long as you have all income and assets documents (paystubs last 30 days, 2 years taxes, 2 years w-2's, 2 year work history, copies of last two months bank statements and most recent quarterly statement for retirement accounts. 

Home Search – Your Realtor will show you the homes you qualify

for and keep you up-to-date with new listings

Making an offer – Your realtor will write up a purchase contract.

You will need to put down a small deposit, then negotiations

begin.

Contract Negotiations and Contract to Sale – Your Realtor will

negotiate with listing agent and seller. Once the contract is fully

executed your attorney will review the contract.

Scheduling A Home Inspection – This is when you find out if

there is any issues with your home. You and your realtor can be

there.

Acknowledgement of Loan Application – At this point you will

sign your mortgage application and submit any additional documents

requested like paystubs, w-2's, bank statements, updated income and assets 

Appraisal of Property – Your loan officer will schedule with the

appraisal management company to determine the property’s

value.

Title search on Property to verify liens and ownership record and legal description of deed done by closing attorney or title company 

Underwriting – Your loan goes for official review, approval, and

the loan is committed to. The underwriter will review all documents to include appraisal, title work, income and assets documents, credit report, and issue a conditional approval.

Closing Disclosure – Your closing disclosure will come out 3 days

prior to your closing settlement date, which will need to be

signed.

Schedule your Closing Date – Your closing and title work will

be scheduled with your settlement agent

Items for Closing – You will need your certified check.

Closing/Settlement – All mortgage Documents will be signed.

Both your settlement agent and Personal Mortgage Advisor will

review with you.

Moving Time – You receive your keys, enjoy your new home!

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Mortgage Checklist Documents for Approval

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Mortgage Checklist Documents for Approval: Required for all Borrowers Pre-Approval Required Documents W-2’s (2 years) Drivers License Tax Returns (2 years) Bank Statements (2 months- ...

Kentucky VA Mortgage Checklist Documents for Approval

Required for all Borrowers

Pre-Approval Required Documents W-2’s (2 years)

Drivers License

Tax Returns (2 years)

Bank Statements (2 months- all accounts)

Employed Borrowers (with a W-2) Paystubs (totally one month) Retirement Statement (most recent)

*SSI Disability Requirement - SSI Reward Letter

Self-Employed Borrowers

(1099/Schedule C/Schedule S, etc.)

Tax Returns (2 years; Personal and business with statements and schedules)

Retirement Statement (most recent)

*SSI Disability Requirement - SSI Reward Letter

Veteran (VA) Borrowers

Pension Reward letter

Social Security Reward Letter Social Security Card

Retired Borrowers

Social Security Reward Letter & 1099 2 years W-2’s (where applicable) Social Security Card

Retirement Statement (most recent 2 months)

Social Security Income Borrower

VA Benefits Award Letter Social Security Card

Retirement Statement (most recent 2 months)

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.