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
Gaps in Employment and getting approved for a KY FHA and Conventional Mortgage Loan
A borrower who has no verifiable employment for 6 months or longer is deemed to have a gap in employment.
Fannie: Fannie does not address gaps in employment in their guidelines. We must ensure that DU’s income documentation can be met. This will typically require the borrower’s most recent paystub and a W-2 from the most recent year.
FHA: borrower must be employed at their current job for 6 months or more at the time of case number assignment and a 2 year work history prior to the gap can be documented.
Can income from employment that has not begun be considered effective income?
Expected income refers to income from cost-of-living adjustments, performance raises, a new job, or retirement that has not been, but will be received within 60 days of mortgage closing. The Mortgagee must verify and document the existence and amount of expected income with the employer in writing and that it is guaranteed to begin within 60 days of mortgage closing. Income is calculated in accordance with the standards for the type of income being received. The Mortgagee must also verify that the borrower will have sufficient income or cash reserves to support the mortgage payment and any other obligations between mortgage closing and the beginning of the receipt of the income. For additional information see Handbook 4000.1 II.A.4.c.xii.(L) or II.A.5.b.xii.(L) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
How does FHA view borrowers who change jobs frequently?
If the borrower has changed jobs more than three times in the previous 12-month period, or has changed lines of work, the Mortgagee must take additional steps to verify and document the stability of the borrower’s employment income. The Mortgagee must obtain: • transcripts of training and education demonstrating qualification for a new position; or • employment documentation evidencing continual increases in income and/or benefits. For additional information see Handbook 4000.1 II.A.4.c.xi.(A) or II.A.5.b.xi.(A) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
How does FHA view borrowers who change jobs frequently?
If the borrower has changed jobs more than three times in the previous 12-month period, or has changed lines of work, the Mortgagee must take additional steps to verify and document the stability of the borrower’s employment income. The Mortgagee must obtain: • transcripts of training and education demonstrating qualification for a new position; or • employment documentation evidencing continual increases in income and/or benefits. For additional information see Handbook 4000.1 II.A.4.c.xi.(A) or II.A.5.b.xi.(A) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
On September 19, 2024, a Proposed Rule was published in the Federal Register to amend the Single-Family Housing Guaranteed Loan Program (SFHGLP) regulation to implement changes related to the consideration of a previous USDA loss as significant derogatory credit and the seasoning and payment history requirements for refinance transactions. Specifically, this rule proposes to:
Establish a timeframe of seven-years following a previous Agency loan that resulted in a loss to the government for the loss to be considered significant derogatory credit.
Eliminate the seasoning requirement for borrowers to refinance their existing Rural Development Single-Family Housing mortgage using the streamlined and non-streamlined refinance Borrowers must have no delinquencies greater than 30 days on the mortgage account within 180 days prior to loan application (or since origination, if the account has not been open 180 days).
Establish a six-month seasoning period requirement for borrowers to refinance their existing Rural Development Single-Family Housing mortgage using the streamlined-assist refinance Borrowers must have no delinquencies greater than 30 days on the mortgage account within 180 days prior to loan application.
Rural Development invites the public to submit comments on all aspects on the proposed rule. Comments to the proposed rule may be submitted via the Federal e Rulemaking Portal located at www.regulations.gov. While the public comment period is open for 60 days, Rural Development encourages all interested parties to submit comments as soon as feasible. Comments must be submitted on or before November 18, 2024.
Mortgage Employment or Job History Requirements for a VA Loan Approval in Kentucky
Gaps in Employment
A borrower who has no verifiable employment for 6 months or longer is deemed to have a gap in employment.
VA: VA does not address gaps in employment and generally does not consider non military employment less than 12 months as stable and reliable. Any exceptions based on the loan as a whole is underwriter discretion.
Medical or Temporary Leave Income
The borrower has taken a temporary leave of absence from work typically for medical leave such as maternity, illness, surgery, or on the job injury. This leave is short term in nature and the borrower is still employed with their same employer prior to the leave of absence.
VA: Borrower’s on temporary leave are not eligible for a loan transaction.
Frequent Job Changes
Frequent job changes may indicate instability in a borrower’s income.
VA: the borrower must demonstrate the ability to maintain an income at a constant level over the recent 2-year period even if he or she has worked for a variety of employers.
Seasonal Employment
Seasonal Employment refers to employment that is not year round typically due to weather conditions. Seasonal Employment can be full time or part time.
VA: Borrower must have worked the same job (or same line of seasonal work) for the past 2 years and the borrower’s employer must state there is a reasonable expectation that the borrower will be rehired for the next season. Tax returns will be required if unemployment compensation will be used to qualify the borrower.
*Income calculation will follow calculation guidelines. These guidelines are for employment history and profile only.
Are you a veteran or active-duty service member in Kentucky looking to buy a home? VA mortgage loans could be your key to homeownership. In this guide, we'll explore everything you need to know about VA loans in the Bluegrass State.
What Are VA Mortgage Loans?
VA loans are mortgage options backed by the U.S. Department of Veterans Affairs. These loans offer numerous benefits to eligible veterans, active-duty service members, and certain military spouses.
Benefits of VA Loans for Kentucky Veterans
No Down Payment: Unlike conventional loans, VA loans often require no down payment, making homeownership more accessible.
Competitive Interest Rates: VA loans typically offer lower interest rates compared to conventional mortgages.
No Private Mortgage Insurance (PMI): This can save you hundreds of dollars each month.
Flexible Credit Requirements: VA loans often have more lenient credit score requirements than conventional loans.
VA Loan Eligibility in Kentucky
To qualify for a VA loan in Kentucky, you must:
Be a veteran, active-duty service member, or eligible surviving spouse
Meet the VA's service requirements
Have a valid Certificate of Eligibility (COE)
Meet the lender's credit and income requirements
Key Requirements for VA Loans in Kentucky
Credit Score Requirements
While the VA doesn't set a minimum credit score, most lenders in Kentucky typically look for a score of at least 580. However, some may accept lower scores, especially if you have a strong overall financial profile.
Work History Requirements
Lenders generally prefer to see:
2 years of steady employment
If self-employed, 2 years of successful business operation
Recent college graduates or those recently discharged from military service may have more flexible requirements
VA Second Tier Entitlement Use
If you've used your VA loan benefit before, you may still be eligible for another VA loan through second-tier entitlement. This allows you to:
Purchase another home while keeping your current VA-financed property
Buy a more expensive home if you've already paid off a previous VA loan
Bankruptcy and Foreclosure Requirements
After a bankruptcy or foreclosure, waiting periods typically apply:
Chapter 7 Bankruptcy: 2-year waiting period
Chapter 13 Bankruptcy: 1 year of on-time payments in the bankruptcy
Foreclosure: 2-year waiting period
These periods may be shorter if you can prove extenuating circumstances.
Debt-to-Income (DTI) Ratio Requirements
The VA prefers a DTI of 41% or less or manually underwritten loans, but lenders may accept higher ratios with compensating factors such as excellent credit or substantial assets.
The Kentucky Housing Market and VA Loans
Kentucky's housing market offers great opportunities for VA loan users. With a mix of urban areas like Louisville and Lexington, and beautiful rural regions, there's something for everyone. The median home price in Kentucky is often below the national average, making it an attractive market for VA loan recipients.
Steps to Secure a VA Loan in Kentucky
Obtain Your Certificate of Eligibility (COE)
Find a VA-Approved Lender in Kentucky
Get Pre-Approved for Your Loan
House Hunting in Kentucky
VA Appraisal and Home Inspection
Closing on Your Kentucky Home
VA Loan Limits in Kentucky
As of 2024, there are no VA loan limits for borrowers with full entitlement. This means you can borrow as much as a lender is willing to lend without a down payment, subject to your income and credit qualifications.
Appraisal and Inspection Requirements
VA Appraisal
A VA-approved appraiser must assess the property to ensure it:
Meets the VA's Minimum Property Requirements (MPRs)
Is worth at least as much as you're paying for it
This typically takes 7-10 days.
Termite Inspection
In Kentucky, a termite inspection is required for all VA loans unless:
The seller usually pays for the termite inspection in Kentucky.
Time Frame to Close
The average time to close a VA loan in Kentucky is 30- 45days, slightly longer than conventional loans. This extra time accounts for the VA appraisal process and additional paperwork.
Potential Pitfalls in VA Loan Closing
Several issues can delay or prevent a VA loan from closing:
Property Condition Issues: The home must meet VA MPRs.
Low Appraisal: If the appraisal comes in lower than the purchase price, you may need to renegotiate or pay the difference.
Change in Employment: Losing your job or changing jobs during the process can jeopardize your loan approval.
New Debts: Taking on new debt during the process can affect your DTI ratio.
Insufficient Funds: Even with no down payment, you'll need funds for closing costs and reserves.
Title Issues: Problems with the property's title can delay or derail the process.
VA mortgage loans offer an excellent opportunity for Kentucky's veterans and active-duty service members to achieve homeownership. With benefits like no down payment, competitive rates, and no PMI, these loans can make your dream of owning a home in the Bluegrass State a reality. Understanding the requirements and potential pitfalls can help ensure a smooth loan process.
Take the Next Step with a Trusted VA Loan Expert
Are you ready to start your VA loan journey in Kentucky? Look no further than Joel Lobb, your local VA loan specialist.
Meet Joel Lobb: Your Kentucky VA Loan Expert
Joel Lobb brings a unique blend of military experience and mortgage expertise to serve Kentucky's veterans:
Army Veteran: Joel understands firsthand the challenges and needs of military service members.
20 Years of Mortgage Experience: With two decades in the industry, Joel has the knowledge to navigate even the most complex VA loan scenarios.
Dedicated to Serving Veterans: Joel's mission is to help fellow veterans achieve their dream of homeownership in Kentucky.
My wife and I have struggled most of our lives with poor choices in marriage or in what I will call lifestyle choices but the one thing that we had to do on our own, and that was to just pay my bills on time and believe it or not that wasn't as easy as one might think. I went through a lot of different banks and/or loan officers,or bank reps. Then thru my researching came across Joel,Jeana and I still believe that God the Father lead us to Joel. You see I'm on a fixed income and was barely able to get from month to month. W ith no money down and on a very short time limit Joel was to get us into home that more than met our needs. It met our wants as well needs and our is more than 2X the size of the house we were renting, And 4X the size of the outside of the house we were renting. And for only $160.oo more a month than what we were paying in rent. A lot of people said it couldn't be done even people in tha thefield . What I know is that Joel Lobb worked extra hard and longer hours to achieve my wife and I's dreams even though we had a lifetime of adverseties I don't think of myself as being special. I do however believe that Mr.Lobb worked as hard for me as he does for any of his other clients. He was always transparent and tanaitous in his work ethics. So in my experiences with people in general I think it would be a good idea to give Joel and the mortgage company he represents a serious try.
Joel did an outstanding job. I am a 100% disabled retired Army Soldier. My wife and I have never bought a house. Joel made this process seem so easy it was scary. We found our 23acre ranch and put a bid on it and Joel did the rest. He made this process easier than buying our truck. We were even out of state at the time of closing and it was still no problem for Joel. My wife and I both highly recommend Joel for your home buying, whether it is your first or retirement. Thank you Joel, we Love our first and retirement home. Dennis and Shannon Jackson
Joel is the best mortgage guru in town. My wife and I were first time homebuyers via VA loan moving from NY to KY. He made the process of buying a home smooth and streamlined. We had no worries and everything went flawless. Thank you Joel!
Absolutely Amazing!! I emailed Joel after I had just got a denial from a bank and just thought i would try to get some advice on what my next steps would be to get a house. I honestly didn't expect to even get a reply because my credit is not great. That was about a week and a half ago. I just signed a contract on a house last night. ONLY because of Joel Lobb. He even worked with us throughout the weekend, which shocked me. Best decision I have ever made. THANK YOU SO MUCH FOR WORKING WITH US THROUGHOUT THE ENTIRE PROCESS.
Contact Joel Lobb Today Army Veteran with 20 years Mortgage Loans in KY
Don't wait to start your journey to homeownership with a VA Mortgage. Contact Joel Lobb now:
Joel is ready to answer your questions, address your concerns, and guide you through the entire VA loan process. With his expertise, you can confidently take the next step towards owning your home in Kentucky.
Schedule your free VA loan consultation with Joel Lobb today and take the first step towards your new home!
VA mortgage loans Kentucky, Kentucky VA home loans, veteran homeownership Bluegrass State, no down payment mortgages Kentucky, VA loan benefits Kentucky, VA loan requirements, VA loan credit score, VA loan work history, VA second tier entitlement, VA loan debt ratio, VA loan appraisal Kentucky, Joel Lobb VA loan expert
Joel Lobb is a prominent figure in the Kentucky mortgage landscape, especially for those embarking on the journey of homeownership for the first time. With a focus on personalized service and a wealth of loan options, Lobb has become a go-to resource for many aspiring homeowners in the Bluegrass State.
For Kentucky first-time home buyers, the path to purchasing a home can seem labyrinthine. Joel Lobb simplifies this process by offering a variety of loan options tailored to individual needs. His expertise covers:
- FHA Loans: Ideal for buyers with lower credit scores or smaller down payments. - VA Loans: Providing excellent terms for veterans and active military personnel. - USDA Loans: Catering to buyers in rural areas with 100% financing options. - KHC Loans: Partnering with the Kentucky Housing Corporation to offer down payment assistance.
Personalized Approach
Lobb's approach is highly personalized. He understands that buying a home is one of the most significant financial decisions in a person's life and treats each client with the respect and attention they deserve. His commitment to personal service ensures that clients are not just numbers but valued individuals throughout the entire mortgage process.
Advantages Over Big Banks
One of Lobb's key advantages is his ability to broker loans through various mortgage companies, ensuring clients receive the best deal possible. Unlike larger banks that may offer a limited set of loan products, Lobb's access to a broader range of options means he can accommodate unique financial situations and find the right fit for each buyer.
Educational Resources
Education is a cornerstone of Lobb's service. He provides resources to help first-time buyers understand the complexities of mortgages and homeownership. This includes guidance on:
- Credit score requirements. - Down payment sources. - Loan types and their benefits. - Steps to pre-qualification and approval.
Community Impact
Lobb's impact extends beyond individual homebuyers to the community at large. By assisting new homeowners, he contributes to the economic vitality and stability of neighborhoods across Kentucky.
Conclusion
For those looking to navigate the world of mortgages in Kentucky, Joel Lobb offers a guiding hand. His expertise, personalized service, and commitment to education make him a valuable ally for first-time home buyers aiming to lay down roots in Kentucky²³⁴.
---
This article is for informational purposes only and does not constitute financial advice. For personalized guidance, it's recommended to consult directly with a mortgage professional like Joel Lobb.
In the most basic of terms, VA Second-Tier Entitlement gives a qualified military person the ability to have two KY VA mortgages out simultaneously.
VA will allow a Kentucky Veteran to have multiple Kentucky VA loans provided they meet the required GNMA 25 percent guaranty. Are you unsure of how to calculate the maximum loan amount for a Veteran based on their used entitlement? I am Kentucky Veteran myself and have done over 50 VA loans for past customers in Kentucky. I am here to help with your Kentucky VA mortgage questions!
First let’s explain the difference between entitlement and maximum loan amount.
Each borrower using a VA Loan has a $36,000 entitlement that the VA guarantees to the lender in the unfortunate event that a borrower would default on the loan. The VA's formula dictates whether or not all that entitlement is used with the initial loan, and thus, additional entitlement can be available. And even if the entitlement is $0 after the purchase of the first house, then the Veteran or active duty member can still use their second-tier entitlement, but there will be a standard minimum and maximum loan limits on what the borrower can use to buy that second house.
Where does the $36,000 come from? This is 25% of 144,000, the "old" maximum loan amount for VA loans.
The VA now has County maximum loan limits as high as 768,750 in the DC Metro Area. With that loan amount, your 25% guarantee is 192,187.50 in entitlement.
"Second-Tier entitlement is nice because for those people using it, it means they don't have to sell their (first) property right off the bat when obtaining the second VA Loan. However, they still have to qualify for the VA Loan. While Second Tier Entitlement is not widely used because of its complexity and the fact that plenty of lenders are not well versed in calculating it, does not mean that interested borrowers should wave the white flag and look elsewhere for a different home loan.
An Example of calculating second-tier entitlement:
Veteran has used $104,250 of entitlement on a prior loan, which may not be restored because the loan is still active and is now a rental due to orders to transfer. The Veteran is now purchasing a home for $350,000 where the county loan limit is $768,750.
$768,750 (County Loan Limit) X 25% (your VA guaranty) = $192,187.50 Maximum Guaranty
$192,187.50 - $104,250 (entitlement already used for active VA loan) = $87,937.50 Entitlement Available
$87,937.50 X 4 = $351,750 Maximum Loan Amount with 25% Guaranty – Since the proposed purchased price is less than the max loan amount, no down payment would be required.
If the Veteran would like to purchase a home for 400,000 using the same numbers above, they would be required to bring $12,062.50 as a down payment to meet the 25% guaranty.
400,000 x 25% = 100,000 needed entitlement/guaranty – 87,937.50 available = 12,062.50 difference needed by Veteran to meet lender requirement.
Email -
Call/Text - 
.jpg)
