Active and/or retired members of the United States Armed Services and eligible surviving spouses of eligible veterans in Kentucky can qualify for VA loans Kentucky with no money down, credit scores down to 500 FICO, less than perfect credit, and prior credit issues. VA loans are hands down the best home loan program in the nation. 100% financing means zero down payment. If you structure the loan right with a savvy loan officer and real estate agent, you can cover your closing costs with seller concession and/or lender credit or with a combination of both.

What Is a VA Loan?

There are three different government-backed home mortgage programs: VA, USDA, and FHA loans. VA loans are for eligible active and/or retired members of the U.S. Armed Services with a certificate of eligibility (COE) and/or surviving unmarried spouses of eligible veterans. Eligible borrowers can finance a home with 100% financing with no down payment with no mortgage insurance at competitive rates. VA loans are for owner-occupant homes only. You cannot purchase a second home or an investment property with VA loans.

What Is The Maximum I Can Borrow on a VA Loan in Kentucky

There is no maximum loan limit on VA loans. The bottom line is you can purchase a home with zero money out of pocket. There is no maximum loan limit on VA loans. Any VA loan that has a higher than the conforming loan limit is considered high-balance VA loans or Jumbo VA loans. For example, if a borrower has a $1,000,000 home purchase, this would be considered a VA Jumbo loan. The lending guidelines on standard and Jumbo VA loans are the same. The only reason they classify it as a high-balance Jumbo VA loan is due to the loan size and pricing.

Mortgage Rates on VA Loans

Pricing on VA loans is very competitive. Lenders base mortgage rates on VA loans on the borrower’s credit scores. Mortgage rates on Jumbo VA loans are higher than standard VA loans. Mortgage rates on VA loans are competitive. Oftentimes, rates on VA loans are lower than conventional loans. VA loans are not for everyone. Only members of the U.S. Military or spouses of eligible veterans with a valid VA Certificate of Eligibility (COE) are eligible to qualify for VA loans Kentucky.

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VA Home Loans For Bad Credit in Kentucky

Kentucky is one of the best states to live in and call home. Tens of thousands of new residents are migrating to Kentucky. With the great climate, landscape, stellar economy, great job opportunities, low taxes, affordable housing, low costs of living, and low property taxes. The whole state has a great landscape. Countless places to visit throughout the state.

VA Guidelines on Relocating From Out of State With a Job Offer Letter?

Kentucky is attracting thousands of taxpayers and businesses. Included in the mass migration to the state are active and retired members of the U.S. Armed Services. Home prices in Kentucky have been skyrocketing for the past couple of years. Even with increased home prices, the Kentucky housing market is still affordable versus other states. You still can get a lot of house for your money. Many people are migrating to Kentucky from high-taxed states. Veterans can qualify for a VA loan in Kentucky if they can present a written offer letter of employment from their employer. Most lenders prefer for the veteran to have started the job and give the lender 30 days of paycheck stubs. However, that is not necessary. A written offer of employment is sufficient for a homebuyer to get VA loan approval in Kentucky.

Buying First Home in Kentucky With VA Loans

Kentucky is one of the top states with a large population of active and retired members of the United States Military. With the beautiful landscape throughout the state, great economy, strong job market, low state taxes, and affordable housing, tens of thousands of people are relocating to Kentucky. Home prices have surged statewide but the median housing price remains under the national median average. Kentucky is commonly referred to as the” Bluegrass State”. This is because the Bluegrass is found in the soil. The two largest cities are Louisville and Lexington based on population.

Will The VA Give You a VA Loan With Bad Credit?

We have many potential homebuyers with bad credit who contact us thinking of migrating to Kentucky due to the strong economy, job opportunities, and affordable home prices. One of the first questions they ask is if they can qualify for a VA loan in Kentucky with bad credit and low credit scores. Gustan Cho Associates are experts in helping borrowers get approved for VA loans with credit scores down to 500 FICO and prior bad credit. Many reasons besides the economy why Kentucky is attracting so many veterans is due to the beautiful landscape. The state of Kentucky has some very cool landmarks such as the following:

• World’s Longest Cave
• Mammoth Cave National Park

There are also many streams and waterways throughout the state. There are many beautiful sights to see in many parts of the state. Kentucky is one of four states in the United States that is constituted as a Commonwealth. The state of Kentucky was originally part of Virginia. In 1972 Kentucky became the 15th state to join the Union. In this article, we will discuss and cover VA Loans Kentucky With No Mortgage Lender Overlays.

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What Type of Homes Can A VA Loan Be Used For?

Over the years the Gustan Cho Associates have had many inquiries for VA loans Kentucky in the state of Kentucky. Kentucky has a large population of active, retired, and reserve members of the United States Armed Forces. Due to the large population of both active and retired members of our military, Kentucky has one of the largest home buyers with VA Loans. Eligible homebuyers can use their VA loan to buy owner-occupant homes. These can be single-family homes, townhomes, condos, manufactured homes, and two to four-unit multi-unit homes.

VA Lender That Works With Bad Credit In Kentucky

Gustan Cho Associates are mortgage brokers licensed in 48 states. The team at Gustan Cho Associates does a lot of business in Kentucky. We are experts on VA loans Kentucky with no lender overlays. The team at Gustan Cho Associates are experts on VA loans Kentucky. A large percentage of our clients are folks who have credit scores down to 500 FICO and bad credit. We originate mortgages throughout the entire State. One of the most popular loan programs for our readers is VA loans Kentucky. VA loans are an amazing benefit offered to those who served our country. Gustan Cho Associates is licensed in multiple states including Kentucky and offers VA loans without any lender overlays throughout parts of the nation and is expanding to more states!

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VA Loan Eligibility Requirements in Kentucky

VA Mortgages are hands down the best home loan program in the Country. Lenders love to originate and fund VA Home Loans. Lenders offer 100% financing, closing cost credits, and no mortgage insurance required. The best benefit of all is lenders can offer lower mortgage rates on VA loans than on conventional loans. What is the catch for lenders?

VA Loans Kentucky Lenders For Low Credit Scores

Lenders are more than willing to originate VA loans with 100% financing with no mortgage insurance premium at low mortgage rates due to the government guarantee on VA loans. The government guarantee against losses in the event borrowers defaults and foreclose. VA agency guidelines have very lenient mortgage guidelines. There are no minimum credit score requirements on VA loans. There is no maximum debt to income ratio caps on VA mortgages. The catch for borrowers is that to qualify for VA Loans, they need to be veterans of our military with a valid Certificate Of Eligibility (COE).

Qualify For A VA Loan With A Lender With No Lender Overlays

What Type of Credit Score Do You Need For a VA Loan?

What are some benefits of a VA loan? The largest benefit of a VA loan is the ability to receive 100% financing:

• Meaning no down payment is required
• VA loans do not have Mortgage Insurance or PMI
• VA loans are also assumable
• There is no maximum loan limit on VA loans
• There are no minimum credit score requirements

Gustan Cho Associates has originated and closed many VA loans with 500 FICO and over 60% debt-to-income ratio.

VA Loans in Kentucky With Unpaid Collection Accounts

You do not have to pay outstanding collection accounts to qualify for VA loans in Kentucky. It does not matter how much the outstanding unpaid balance is. Not all mortgage lenders in Kentucky will allow outstanding collection accounts to qualify because they can have lender overlays. All mortgage lenders need to make sure all borrowers meet VA agency guidelines but they can have their own lending requirements that are above and beyond VA guidelines called lender overlays. If you are buying a home in Kentucky, it is best to choose the best Kentucky Mortgage Lender with no lender overlays on collection accounts.

VA Loans in Kentucky With Charged-Off Accounts?

Borrowers do not have to pay outstanding charged-off accounts for VA loans in Kentucky. It does not matter how large the unpaid charged-off account is. Not all VA lenders in Kentucky will allow charged-off accounts to qualify because they can have lender overlays. All mortgage lenders need to make sure all borrowers meet VA agency guidelines but they can have their own lending requirements that are above and beyond VA guidelines called overlays. If you are buying a home in Kentucky, it is best to choose the best Kentucky Mortgage Lender with no lender charged-off accounts.

Debt-to-Income Ratio Guidelines on VA Loans in Kentucky

There is no maximum debt to income ratio cap on VA loans as long as you can get an approve/eligible per automated underwriting system (AUS). As long as you have strong residual income, you can easily get an approve/eligible per AUS with debt to income ratios surpassing 60% DTI. VA and FHA loans are two mortgage loan programs that allow for manual underwriting.

VA Manual Underwriting Guidelines on Debt-To-Income Ratio

Debt to income ratio requirements on manual underwriting are the following:

• 31% front-end and 43% back-end debt to income ratio with zero compensating factor
• 37% front-end and 47% back-end with one compensating factor
• 40% front-end and 50% back-end with two compensating factors.

VA Loans In Kentucky Can Be Assumable

VA loans are assumable to a different borrower. By VA loans being assumable means you can sell the house to somebody and they can take over your current mortgage note at the present principal balance. VA loans will NEVER have a prepayment penalty. Sellers can pay up to 4% of the purchase price to help with closing costs. Veterans may use their VA loan as many times as they would like. The rule of thumb is you can only have one VA loan at a time. There are circumstances where you may obtain more than one VA loan.

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Getting VA Loans Kentucky Approved With The Best Low Credit VA Mortgage Lenders

Not all VA Lenders have the same VA Guidelines. The Department of Veterans Affairs does not require minimum credit score requirements or debt to income ratio requirements on VA Loans. However, many of our viewers become our borrowers because other lenders will require a 620 to 640 credit score or have a debt to income ratio cap of 45%. Gustan Cho Associates has ZERO OVERLAYS on VA Loans. We just follow VA Mortgage Guidelines and do not have any overlays. We have closed VA loans with under 600 credit scores and debt to income ratios over 60% at Gustan Cho Associates. Over 75% of our borrowers are folks who are either stressing during the mortgage process or have gotten a last-minute mortgage denial. We take over and will close on your VA Home Loan.

We Are Available 7 Days A Week To Take Your Application

Documents Required To Start VA Loan Mortgage Process

What items do I need to start a VA loan?

• Last 60 Days Bank Statements – to source money for escrows
• Last 30 Days Pay Stubs
• Last Two Years W2’S
• Last Two Years’ Tax Returns
• Driver’s License
• Certificate of Eligibility (please see COE Instructions Blog if you need to obtain your COE)
• Name of contact to verify rental payments

Loan Limits On VA Loans Kentucky

The state of Kentucky has no maximum loan limit on VA mortgages. Homebuyers can purchase a home for more than $647,200. Borrowers do not need a down payment. Any VA loans Kentucky with higher than the 2022 conforming loan limit of $647,200 are called high-balance VA Jumbo loans. There is no difference between regular and high-balance VA jumbo loans except pricing on rates. VA jumbo loans have higher rates due to loan-level pricing adjustments due to layered risk. If buying a home for more than counties loan limit, buyers used to be responsible for 25% of the difference between the county loan limit and the purchase price. However, the VA no longer has a maximum loan limit starting in 2020.

We Can Help Borrowers With Credit Scores Down To 500 FICO

Case Scenario of Buying Higher Priced Home With VA Loans

Let’s go over a quick example of how VA loans Kentucky used to work. We will use an older case scenario when the VA still had maximum loan limits on VA loans. VA loans no longer have a maximum loan limit:

• The purchase price is $500.000 for a home in Louisville (the largest city based on population in the state of Kentucky)
• County Loan limit = $453,100
• $50,000 – $453,100 = $46,900
• 25% of $46,900 = $11,725

To purchase a home for $600,000 in the state of Kentucky with a VA loan you do not need a down payment. There will be closing costs on top of this number but keep in mind the seller can pay up to 4% of $500,000 for those costs. However, VA loans Kentucky no longer have a maximum loan limit. If you need help calculating how much down payment you will need, you can always contact Mike Gracz from Gustan Cho Associates at (800) 900-8569 or send an email to gcho@gustancho.com.

First Step in VA Loan Process 

We are experts in helping borrowers get qualified and approved for VA loans. Gustan Cho Associates has no lender overlays on VA loans Kentucky. Besides VA loans Kentucky purchase loans, we can help homeowners with VA streamline refinance with no appraisal and no income docs, VA loans Kentucky one-time close construction loans, and FHA 203k loans in Kentucky. We pride ourselves on being up to date on all guidelines for VA loans Kentucky. We are also experts in manual underwriting VA mortgages. Many companies no longer participate in manual underwriting, that is part of the reason we are able to help more borrowers than most lenders.

Getting VA Loan Approval After Denial in Kentucky

Even if you’ve been issued a last-second denial please reach out to my team for assistance. If for any reason you do not qualify today, we will put you on a plan to qualify as soon as possible. We work with many families over 12 months before we are able to get them into the home of their dreams. We are available 7 days a week so do not hesitate to call us anytime. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays. We have helped thousands of veterans qualify for VA loans Kentucky. Some of our borrowers closed on their VA loans Kentucky with credit scores down to 500 FICO and over 60% debt to income ratio.

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This article on VA loans Kentucky was updated on May 29th, 2022