Kentucky VA Mortgage Loans

Why VA Loans?
First and foremost, VA loans put homeownership within reach of a wider population.
That’s because, while they’re issued and administered through a wide range of lending institutions, all VA mortgages are federally guaranteed.
Lenders consider them lower risk than other loans. That means that people with average or even below-average credit scores are more likely to be approved for a VA loan than a traditional loan.
If you have a highdebt-to-income ratioor you’ve fallen behind on your credit card payments in the past, you may be eligible for a VA loan, even if you’ve been turned down for a private mortgage in the past.
What’s more, vets and active-duty soldiers can often purchase a loan with no down payment.
Military wagesaren’t the most generous. In 2020, new service members earned as little as $19,000 per year, while themedian…

USDA Advance Copy Notice HB-1-3555 Chapter 11
USDA has announced that Chapter 11 of the HB-1-3555 will be updated and an advanced copy has been provided.  Changes will become effective after USDA issues a Special Procedure Notice.

• Clarification was addedthat revolving accounts with no outstanding balance are not required to be closed.
• USDA eliminated guidelines provided that a retained property that has been rented for 24 months or longer may be omitted from the DTI, and
• Added guidance that the income received from rents may only be included in the repayment calculation if the property has been rented for 24 mo. or more.
• Guidelines were added that monthly payment for borrowers in debt management plans must be included in the DTI.
• The calculation guidelines for Non-Fixed Student Loan Payments were updated removing the requirement for the greater of calculation to be used and added guidance for when the payment amount…

FHA mortgage insurance, typically referred to as MIP, is the one closing cost that is unique to FHA mortgage programs.

**Every FHA mortgage must have mortgage insurance regardless

of the amount of the down payment.**

There are two types of mortgage insurance for FHA insured loans – Up-front Mortgage Insurance Premiums and Monthly Mortgage Insurance Premiums.

Up-front Mortgage Insurance Premium (UFMIP)

UFMIP is calculated at 1.75% of the base loan amount on all loans, regardless of the down payment amount. This insurance protects the lender against losses in the event that the borrower defaults on the loan.

**The entire amount of the UFMIP can be financed into the loan amount!**

For example:

• If the FHA loan amount is $100,000 (base loan amount)
• The mortgage insurance premium would be $1,750 ($100,000 x 1.75%)
• The mortgage amount including MIP would be $101,750 ($100,000 + $1,750)

What really happens during an FHA mortgage…

VA Guidelines for Covid-19

Income Verification

Lenders may continue to use good judgement and flexibility when verifying a borrower’s income and determining whether that income is stable and reliable and will follow standard VA guidelines.
Third-party services may be used to provide employment and income verification (please note additional fees associated with these services cannot be charged to borrower).
Note: The VOE flexibilities previously announced by VA have not been extended and did expire 04/01/2021.

Income Analysis

VA’s guidelines generally require income to be stable and reliable for 2 years. However, borrowers’ income impacted by COVID-19 may continue to be reviewed as follows:
Any period in a borrower’s income (i.e. furlough, curtailment of income, etc.), should not be considered a break in employment or income provided they have returned or anticipated to return to work in the same capacity and income levels. In addition to standard verification documentation Borrower’s should…