VA Loans in Louisville Kentucky | Ky Va home loans info
What are 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 a 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 620 credit score for a VA Loan approval.
How much can I borrow?
The maximum VA Mortgage amount is determined by:
Maximum VA Loan in Kentucky: The largest loan allowed for VA mortgages with zero down is $417,000 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?
Kentucky VA loans have zero money down up to $417,000 in most counties.
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 homes current value and take cash out for any reason.
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. The highest maximum VA Mortgage right now is $1,094,625. The lowest maximum VA Mortgage amount available in any county is $417,000. To see what the limit is in the county in which you’re interested, visit the following page http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf. 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 90% 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 620 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.
An 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.
VA Refinance Questions & Answers
1. What are the guidelines for a VA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 90% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be 100% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.
2. Why should I consider refinancing into a VA-insured mortgage?
VA refinance mortgages do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.
3. What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new VA mortgage, then you should ask your current lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.
4. Does it matter that the value of my home is now less than what I still owe?
Not to VA, but the current mortgage lender considering the refinance would have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.
5. I have already obtained one VA loan. Can I get another one?
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.
6. Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.
7. Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, please contact us.
VA Mortgage Loan Checklist
The following is a list of documents that may be required to process your VA mortgage loan:
- One full month’s worth of pay stubs
- Last 2 years W-2’s
- If self employed: Last 2 years tax returns with all schedules (if you are using commission, dividend or rental income to qualify then you will also need to provide your tax returns)
- Address and phone number of all employers for the last two years.
- Address and phone number for all landlords for the last two years.
- Copy of your DD214
- Your Original VA Certificate of Eligibility (we can help you get this if needed)
- Copies of social security, pension, and/or retirement award letters (if applicable)
- Last two months bank statements for all accounts
- Documentation to support your funds to close
- Explanation for any derogatory credit (if applicable)
- Bankruptcy and discharge paperwork (if applicable)
- Divorce decree and settlement paperwork (if applicable)
Kentucky VA Loan Limits
Area County Name Maximum Single Family Mortgage
(No Money Down) Maximum VA Jumbo
(0$ Down to 417k, 25% Down Above)
NON-METRO ADAIR 417,000 1,094,625
NON-METRO ALLEN 417,000 1,094,625
FRANKFORT, KY (MICRO) ANDERSON 417,000 1,094,625
PADUCAH, KY-IL (MICRO) BALLARD 417,000 1,094,625
GLASGOW, KY (MICRO) BARREN 417,000 1,094,625
MOUNT STERLING, KY (MICRO) BATH 417,000 1,094,625
MIDDLESBOROUGH, KY (MICRO) BELL 417,000 1,094,625
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) BOONE 417,000 1,094,625
LEXINGTON-FAYETTE, KY (MSA) BOURBON 417,000 1,094,625
HUNTINGTON-ASHLAND, WV-KY-OH (MSA) BOYD 417,000 1,094,625
DANVILLE, KY (MICRO) BOYLE 417,000 1,094,625
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) BRACKEN 417,000 1,094,625
NON-METRO BREATHITT 417,000 1,094,625
NON-METRO BRECKINRIDGE 417,000 1,094,625
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA) BULLITT 417,000 1,094,625
NON-METRO BUTLER 417,000 1,094,625
NON-METRO CALDWELL 417,000 1,094,625
MURRAY, KY (MICRO) CALLOWAY 417,000 1,094,625
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) CAMPBELL 417,000 1,094,625
NON-METRO CARLISLE 417,000 1,094,625
NON-METRO CARROLL 417,000 1,094,625
NON-METRO CARTER 417,000 1,094,625
NON-METRO CASEY 417,000 1,094,625
CLARKSVILLE, TN-KY (MSA) CHRISTIAN 417,000 1,094,625
LEXINGTON-FAYETTE, KY (MSA) CLARK 417,000 1,094,625
NON-METRO CLAY 417,000 1,094,625
NON-METRO CLINTON 417,000 1,094,625
NON-METRO CRITTENDEN 417,000 1,094,625
NON-METRO CUMBERLAND 417,000 1,094,625
OWENSBORO, KY (MSA) DAVIESS 417,000 1,094,625
BOWLING GREEN, KY (MSA) EDMONSON 417,000 1,094,625
NON-METRO ELLIOTT 417,000 1,094,625
NON-METRO ESTILL 417,000 1,094,625
LEXINGTON-FAYETTE, KY (MSA) FAYETTE 417,000 1,094,625
NON-METRO FLEMING 417,000 1,094,625
NON-METRO FLOYD 417,000 1,094,625
FRANKFORT, KY (MICRO) FRANKLIN 417,000 1,094,625
UNION CITY, TN-KY (MICRO) FULTON 417,000 1,094,625
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) GALLATIN 417,000 1,094,625
NON-METRO GARRARD 417,000 1,094,625
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA) GRANT 417,000 1,094,625
LEXINGTON-FAYETTE, KY (MSA) WOODFORD 417,000 1,094,625
We lend in all of Kentucky’s top cities:
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Senior Loan Officer
phone: (502) 905-3708
- Louisville Kentucky mortgage rates (kentuckyusdaloan.com)
- Overview of the Kentucky VA Home Loan Program (louisvillekymortgage.net)
- Kentucky VA Funding Fee Information for National Guard, Reserves, Regular Military, Retired, Active Duty in Kentucky for 2012 (kentuckyvaloan.com)
- Louisville Kentucky mortgage rates (kentuckyvaloan.com)
- Louisville Kentucky FHA Loans (louisvillemortgageguide.com)
- VA Loan vs Conventional Loan – Learning the Differences (militaryvaloan.com)
- The History Behind VA Guaranteed Home Loans (veteranstoday.com)
- The History Behind VA Guaranteed Home Loans | Veterans Today (gunnyg.wordpress.com)
- VA Loan Application Redesign Set To Speed Up Approval Process (prweb.com)
- Closing Costs When Buying or Refinancing a Home for A Louisville Ky Home Mortgage (mylouisvillekentuckymortgage.com)
- VA Loan Frequently Asked Questions – Military VA Loan Information – MilitaryVALoan.com (militaryvaloan.com)
- Louisville Ky Mortgage Lender FHA VA KHC Kentucky Mortgage: Louisville FHA and VA Home Loans (trulia.com)
- Veteran Guide to Buying a New Home MilitaryVALoan.com (militaryvaloan.com)
- Steps to a Louisville Kentucky VA Loan (mylouisvillekentuckymortgage.com)
- VA Loan Benefits – VA Home Loan Benefits – MilitaryVALoan.com (militaryvaloan.com)
- VA Loan Processing Times Still Slow (prweb.com)
- Louisville, Ky FHA and VA Loans (trulia.com)