Kentucky VA Mortgage Requirements 2013


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Kentucky VA loans are designed specifically to provide home loans for eligible United States military veterans. In general,

Kentucky VA loans are available to almost all honorably discharged service members and active duty members.

Benefits of Kentucky VA Loans

For those that qualify,  Kentucky VA loans provide the opportunity to minimize costs and maximize benefits for veterans. Borrowers are able to save time and money, making the loan process easier than ever. Here are some of the advantages of Kentucky VA loans:

  • Requires no money down: With no up-front expenses, this is the most attractive advantage of Kentucky  VA loans. It is nearly impossible to find another lending option that provides borrowers with 100% financing.
  • No private mortgage insurance: The VA is responsible for guaranteeing VA loans; therefore no additional insurance is needed.
  • VA limits amount of closing costs: The seller is allowed to pay all of your closing costs and concessions up to 6% of the loan amount.
  • No Pre-Pay penalties: You have the option to refinance or sell your home at any time without having to pay a fee.
  • Assumable mortgage
Eligibility For Kentucky  VA Loans

Veterans are not automatically qualified to receive a VA Loan. In order to become eligible to receive a VA loan you must first apply for a Certificate of Eligibility (VA Form 26-1880). This can be obtained by applying online at the Department of Veterans Affairs website (http://vip.vba.va.gov) or through your lender.

There are further guidelines used to determine eligibility. If you fall under one of the following requirements you are eligible for a VA loan:

  • Active-Duty veterans who served a minimum of 90 consecutive days in wartime
  • Active-Duty veterans who were discharged during or after WWII, without “dishonorable” status
  • Peacetime veterans who served 181 consecutive days
  • Enlisted veterans with service dates after 1980, or officers with service dates after 1981, who have served at least 2 years
  • Served 6 years in the Selected Reserves or National Guard
  • Spouse of a deceased veteran (with a service-related death) and has not remarried, or a spouse of a serviceperson missing in action or prisoner of war

Eligibility may also be established for citizens who:

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Uses For VA Loans  in Kentucky

VA loans can be used to purchase a home, townhouse or condominium, build a home, make energy efficient home improvements, purchase land/lot for a manufactured home, or refinance a previous home loan.

VA Jumbo Home Loan

The VA guarantees a maximum of 25% of your home loan with a standard loan limit of $417,000. What if the house you want costs more than the limit?

For veterans who qualify, the VA offers a VA Jumbo Home Loan. The maximum guaranty amount depends on the location of the property. The potential loan maximum for all locations in the U.S. other than Alaska, Hawaii, Guam, and the U.S. Virgin Islands is $1,094, 625. In Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the potential loan maximum is $1,641,937.50. VA Jumbo Home Loans offer the same benefits as standard VA loans; however, the qualifying standards for VA Jumbo Home Loans are generally stricter. Unlike standard VA loans, VA Jumbo Home loans have credit score restrictions and require a down payment. Borrowers are also required to pay the funding fee upfront without the option of having it rolled into the loan.

Unmarried Survivng Spouses

In order for the spouse to be eligible, the veteran must have died due to being in active duty or later from service-connected causes. If the surviving spouse gets remarried on or after age 57 they are still eligible for the benefits. Also, if the veteran is a POW or MIA the spouse can be eligible but it is a one-time only use. If the spouse qualifies, there is a form attached that needs to be mailed or faxed into the VA to obtain the certificate of eligibility. We cannot obtain the certificate of eligibility for the spouse. Please have them call 888-244-6711 for details on how to submit the form to the VA.

Entitlement

Loan $144,000 or less entitlement is $36,000.
For loans in excess of $144,000 additional entitlement may be available. For loans greater than $144,000 but less than $417,000 the max entitlement is $104,250 but even though the veteran may have this additional entitlement the COE will never reflect the extra entitlement. There will be an asterisk by the word “available” and that is how you tell the extra entitlement.


 

 
Joel Lobb
Senior  Loan Officer

(NMLS#57916)
 
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

 

 

Locking In Rates


 

Locking In Rates

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When is it appropriate to ‘lock in’ our interest rate?

 

May 17, 2004

Good question. And, as with the answer to so many things, it depends. Some say:

1. It is considered a fool’s game to try to time the bottom of the market.
2. If you can’t afford to lose, you can’t afford to gamble.
3. Interest rates can, and do, go up…as much as 3/4% or more in one week.

Although we certainly have not seen evidence of it lately, interest rates can rise and fall often and rapidly. The Wall Streetmoney market” is manipulated by so many factors, it is extremely difficult to predict. Everyone is guessing what might happen, but no one really knows. If you want to be safe, you lock in as soon as your lender will allow it.

Sometimes you need a tough hide to “float” and ride along with the market fluctuations. If you do this, you believe interest rates will fall during the period of your mortgage processing, and you must be prepared to take the consequences if they do not.

Before you decide which way to go, be sure you understand your lender’s rules. Some allow you to lock in at the time of application, generally without cost for 15 to 30 days; some only let you lock in after you are approved for the loan and, in a busy environment, this can take a few weeks. Some will let you lock in for extended periods of time for a fee, often payable upfront and nonrefundable. Some will allow you a “float down” option that provides you with a lower rate if rates go down, typically for a cost.

As you can tell by some of my comments, I would suggest you lock in your rate as soon as you can…then forget about it. You will sleep better. There are not many people who can stand the uncertainty of gambling with this big commitment.

Discuss the options with your loan officer, be sure you understand whether you are getting a “lock” with the lender making the loan and what period it covers. I have heard horror stories of “locks” made for short periods when everyone is so busy, and the timeline for closing is just about impossible. That’s a promise that is useless. Be sure you understand what kind of company you are dealing with, whether you have a true commitment on your rate and fee, one that really be trusted and accomplished.

Good luck.