Kentucky VA Loans

Griffin Funding proudly serves our veterans and service members throughout the entire state of Kentucky. So whether you’re looking for your first VA home loan in Louisville or seeking to secure a cash-out refinance in Knoxville, we have you covered. Here are just some of the cities we serve:

• Louisville
• Lexington
• Bowling Green
• Owensboro
• Covington
• Richmond
• Georgetown
• Florence
• Hopkinsville
• Frankfort

Kentucky VA loans work by providing active-duty service members, veterans, and eligible spouses with mortgage financing that is partially guaranteed by the U.S. Department of Veterans of Affairs (VA). Because of this backing, risk is greatly reduced for the lender; thus, Griffin Funding can offer a VA purchase loan with highly competitive rates and no required down payment. The program makes it easy for service members to purchase a home or refinance their current mortgage, and often with better terms than with conventional financing.

First-time VA loan borrowers, or those who have completely paid off and sold a previous VA loan home, will receive a “full entitlement.” This typically grants the borrower with zero-down payment financing that is backed by the VA, regardless of total home loan amount or typical VA loan limits.

For those who are either still paying off an existing VA home loan, still own the home that a VA loan was used for, or who have defaulted on a VA loan previously, they may still receive a “partial entitlement.” These loans share the same competitive rates and will cover the purchase price up to the VA loan limit set for the home’s county. However, a down payment may be necessary to bridge any amount over this limit.

Traditionally, VA loan limits applied to each VA home loan in Kentucky. These limits were set by the Federal Housing and Finance Agency (FHFA) and took into account the median home price in each county. However, since 2020, VA home loan limits do not apply when receiving a full entitlement.

However, partial entitlement loans do not receive a bonus entitlement and are subject to VA loan limits. Currently, the VA home loan limit for a single-family home in Kentucky is $766,550 for most counties, with some higher-priced counties capped to $1,149,825.

When utilizing a partial entitlement, there is no limit on the price of the home you’re purchasing, provided your credit qualifies; you will just need to cover any difference over the Kentucky VA loan limit, typically with a down payment.

Because VA home loans in Kentucky are backed by the U.S. Department of Veterans Affairs (VA), Griffin Funding can offer VA loans that boast very competitive rates, no down payment requirements, and very flexible qualifying criteria when compared to conventional mortgage loans. Here are a few of the best benefits:

• Highly competitive rates
• FICO scores as low as 550 can qualify
• Limited closing costs
• No prepayment penalties
• No down payment required
• Private mortgage insurance (PMI) not required
• Cashout for up to 100% of the home’s value

If you’re looking to apply for a VA loan in Kentucky, consider downloading the Griffin Gold app to manage your financial wellbeing, monitor your credit, or begin creating an action plan for homeownership. If you’re interested in real estate investing, Griffin Funding also offers Kentucky DSCR loans and other non-QM mortgage types for investors.

Griffin Funding offers the following VA loan programs in Kentucky:

• VA Purchase Loan: The go-to financing option for first-time home buyers of our military, this loan offers qualified service members and veterans a mortgage loan with competitive rates, no down payment requirements, and limited closing costs.
• VA Streamline Refinance: These interest rate reduction refinance loans (IRRRL) are a popular option for Kentucky homeowners looking to refinance to a lower interest rate. These loans, tailored specifically for existing VA loan holders, offer several advantages over traditional financing, including no required appraisal, no pest inspection, no income qualification, little to zero out-of-pocket costs, and no need to present another Certificate of Eligibility (COE).
• VA Cash-Out Refinance: The VA cash-out refinance loan allows qualified veterans and service members to extract cash from their home’s equity while refinancing their existing mortgage or VA loan with a lower rate. This loan can be approved for up to 100% of the home’s value, and effectively replaces the current loan. The extra cash allows homeowners to pay off an old mortgage, perform home repairs or upgrades, and cover surprise expenses.

In Kentucky, VA home loans enjoy flexible credit qualification criteria and an easy application process. However, to get the best chances at approval you should have a high FICO score, low debt-to-income ratio (DTI), and sufficient verified income. Here are some of the items you’ll need to gather before applying:

• Identification: Valid driver’s license or government-issued photo ID.
• Proof of income: Lenders want to ensure that you have sufficient income to pay back your mortgage. You will typically provide proof of income via pay stubs, tax returns, and W-2 forms.
• Certificate of Eligibility (COE): A COE must be obtained directly from the VA. It proves that you meet the necessary service requirements to be considered for a VA loan. It is advisable to obtain your COE as soon as possible to prevent application delays.
• Credit score: Borrowers can qualify for a VA loan in Kentucky with a FICO score as low as 550.

Securing a VA home loan remains one of the easiest, most cost-effective ways to attain homeownership for our nation’s service members and veterans. VA home loans in Kentucky offer competitive interest rates, zero-down payment options, and flexible credit criteria for those looking to buy a new home, refinance their home, or cash-out an existing mortgage.

Griffin Funding has a wealth of experience when it comes to funding VA loans in Kentucky. Our knowledgeable agents are standing by to help guide you down the exciting path towards homeownership today. Fill out an application to get started!