Compensating Factors to over turn a Kentucky VA Loan Mortgage Denial
Compensating factors may affect the loan decision for a Kentucky VA Mortgage. These factors are especially important when reviewing loans which are marginal with respect to residual income or debt-to-income ratio. They cannot be used to compensate for unsatisfactory credit.
Valid compensating factors to over turn a Kentucky VA Mortgage loandenial should represent unusual strengths rather than mere satisfaction of basic program requirements. For example, the fact that an applicant has sufficient assets for closing purposes, or meets the residual income guideline, is not a compensating factor.
Valid compensating factors should logically be able to compensate (to some extent) for the identified weakness in the loan. For example, significant liquid assets may compensate for a residual income shortfall whereas long-term employment would not.
Compensating factors include, but are not limited to the following:
· excellent credit history,
· conservative use of consumer credit,
· minimal consumer debt,
· long-term employment,
· significant liquid assets,
· sizable downpayment,
· the existence of equity in refinancing loans,
· little or no increase in shelter expense,
· military benefits,
· satisfactory homeownership experience,
· high residual income,
· low debt-to-income ratio,
· tax credits for child care, and
· tax benefits of home ownership.
If you looking to get approved for a Kentucky VA Mortgage, give us a call today. We can go down to 640 credit scores for VA loans in Kentucky, and the maximum debt to income ratio on some cases can go as high as 50% with the above compensating factors.
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- Louisville Kentucky VA Refinance Loans (kentuckyvaloan.com)
- Debt To Income Ratios for a Louisville Kentucky VA Mortgage Loan(louisvillekentuckyvamortgage.blogspot.com)
- Compensating Factors to over turn a Kentucky VA Loan Mortgage Denial(louisvillekentuckyvamortgage.blogspot.com)
- FHA Changes for Mortgage Loans in Kentucky for 2013(kentuckyfirsttimehomebuyer.com)
- Mortgages and Credit Scores (louisvillemortgageguide.com)
- Kentucky Mortgage Underwriting Guidelines updated for 2013(kentuckyfirsttimehomebuyer.com)
- Kentucky Housing first mortgage loans guidelines for 2013(louisvillemortgageguide.com)
- Kentucky FHA Mortgage Guideline Changes April, 2013(louisvillemortgageguide.com)
- 2013 Kentucky FHA Mortgage Changes to Mortgage Insurance(louisvillekymortgage.net)
- Kentucky Residual Income Requirements for A VA Mortgage Loan In KY(louisvillekentuckyvamortgage.blogspot.com)
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