Thursday, October 10, 2013

Kentucky VA Home Mortgage Lender Approval Process

Kentucky VA Home Mortgage Lender Approval Process

ELIGIBILITY 


The Veterans Administration will determine if a veteran is
eligible to participate in the program. A valid Certificate of
Eligibility must be submitted with each loan application.
General guidelines for eligibility can be found at this link…
Eligibility Information.

Although a Valid Certificate of Eligibility is required, it does
not guarantee loan approval. Each veteran must meet all VA
and Crescent requirements for the loan request.


To obtain a COE, obtain a VA Form 26-1880, Request for a
Certificate of Eligibility: It should be completed and signed by
the veteran. Certificates can be obtained from the Veterans’
Information Portal https://vip.vba.va.gov/portal/VBAH/Home
under the webLGY function. To obtain access to the website,
click the “User Registration” tab to the left and follow the
instructions. If the automated system does not issue a COE,
then follow the directions on the response and upload the
required information to VA for review.



 Minimum credit score is 620, unless otherwise indicated on 
the matrix. Three trade lines are required unless one is a major 
account, such as mortgage. 


 No Manufactured homes – No “on frame” modular homes 
RATIOS 

 Maximum debt ratio is 55% if credit score is =>640 and 
50% when credit score < 640. 

 ALL loans must score “approve/eligible” or 
“accept/accept” through AUS. We can no longer approve 
“refer” loans. 

KENTUCKY VA MORTGAGE LIMITS 

Loan amounts, including the funding fee, are limited to 
$417,000

PLEASE NOTE: Any borrower who has been late on
mortgage payments and/or who has a poor credit history could
be denied regardless of AU findings


REFINANCE OF A KENTUCKY VA MORTGAGE LOAN


VA recognizes only an Interest Rate Reduction (Streamline) Refinancing 
Loan and a Cash-Out transaction. Cash out transactions are limited to 90%. 
No late payments on housing payments in the last 12 months (all mortgages 
& rent payments). 
If cash-out – No Bankruptcy or Foreclosure within most recent 2 years (7 
years for high balance loans. 


ALLOWABLE CLOSING COSTS ON A KENTUCKY VA LOAN 


Maximum 1% origination fee 
Appraisal and compliance inspections 
Recording fees 
Credit report 
Prepaid items (taxes, assessments and similar items) 
Hazard insurance 
Flood determination 
Survey 
Title examination 
Title insurance 
Special mailing fees for refinancing loans 
Mortgage Electronic Registration System (MERS) fee 
Other fees authorized by VA 
If an origination fee is charged, lenders may NOT assess veterans any other 
fees, other than the allowable fees noted above. 
Please see VA circular 26-10-01 for additional detail on fees that may, and 
may not, be charged




-- 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*