Kentucky VA home loans ยท Cornerstone First Mortgage ยท NMLS #173855 Call Mike Certo ยท (480) 296-6513 · mcerto@cfmtg.com
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Program and regulatory figures verified October 10, 2026. Details change; confirm your scenario with us.

By Mike Certo, Cornerstone First Mortgage ยท NMLS #260555 ยท

Two federal numbers and two Kentucky questions decide a file here. One of the Kentucky questions is not about tax at all.

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How to reach us

Call or text Mike at (480) 296-6513. Email mcerto@cfmtg.com. You reach the person who originates the loan.

โ˜… What makes a Kentucky file answerable

  1. Your Certificate of Eligibility, or what you know about your entitlement: full, or partly used.
  2. โ˜…โ˜… Your rating level, not just whether you have one. In Kentucky the distinction decides everything: a compensable rating waives the funding fee, but only a total one reaches the state exemption.
  3. โ˜… The county. It decides which PVA handles your exemption and which clerk collects the transfer tax, though not the loan limit, which is $832,750 in all 120.
  4. โ˜…โ˜…โ˜… How long you expect to own the house. An unusual thing for a lender to ask, and in Kentucky this year it is the most consequential question on the list.

โ˜…โ˜…โ˜… Why we ask how long you are staying

13 of Kentucky's 20 metros fell in value over the year to August 2026, second worst in the nation. A VA borrower with full entitlement puts nothing down, so there is no equity to absorb a decline.

โ˜…โ˜…โ˜… If you may need to sell within two or three years, that combination can mean bringing money to closing in order to leave. We would rather raise it now than have you discover it later. โ˜…โ˜… It is not a reason to avoid the benefit, for a buyer staying five or ten years a soft market is the better side to buy on. It is a reason to answer the question honestly up front. The market.

โ˜…โ˜… And the tax conversation to have early

If you are expecting Kentucky to give you a disabled-veteran property tax break, tell us at the start, because in most cases it will not.

โ˜…โ˜…โ˜… Ky. Const. § 170 reaches an owner who is 65 or older or classified as totally disabled. There is no service limb. A veteran with a 50% rating under 65 gets nothing from the Commonwealth. The three tests.

โ˜…โ˜… If you are totally disabled and service-connected: claim the $49,100 exemption at your PVA, and know that you are in the one group the statute excuses from annual re-application. What that saves over twenty years.

โ˜… One more thing a brochure would not say

If you are putting a substantial deposit down and you are not exempt from the funding fee, conventional financing is often the better deal, and we will tell you so. The honest comparison.

โ˜…โ˜… And on a second VA purchase here, ask about the 5% threshold before deciding what to put down. It halves the fee from 3.3% to 1.5% and gives you the only cushion you will have. The table.

What we will not quote over email

Rates or payment figures. They depend on your file and on the day, and a number sent on Tuesday is wrong by Friday. Current terms against your actual position, on a call.

โ˜… Outside our lane

We are a private lender and we are not affiliated with the U.S. Department of Veterans Affairs, the Kentucky Department of Veterans Affairs, the Kentucky Department of Revenue or any government agency. The VA decides entitlement, ratings and fee exemptions. Your county PVA decides the homestead exemption. No tax advice, no legal advice, nothing about purchase-contract terms, and no forecast of Kentucky house prices.

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Mike Certo, NMLS #260555. Cornerstone First Mortgage, NMLS #173855. Equal Housing Lender. This is not a commitment to lend. Loans are subject to borrower, property and program qualification.

Frequently asked questions

How do I get a VA loan in Kentucky?

Contact the lender with four things: your Certificate of Eligibility or what you know about your entitlement, your VA rating level, the county you are buying in, and how long you expect to own the house. Mike Certo, NMLS #260555, at Cornerstone First Mortgage NMLS #173855 can be reached at (480) 296-6513 or mcerto@cfmtg.com.

Why does a lender ask how long I plan to stay in the house?

Because thirteen of Kentucky's twenty metros declined in value over the year to August 2026 and a VA borrower with full entitlement puts nothing down. With no equity cushion, a forced sale within two or three years can mean bringing money to closing. For a longer hold, a soft market is generally the better time to buy.

I have a VA disability rating. Does Kentucky give me a property tax break?

Only if the rating is total, or if you are sixty-five or older. Section 170 of the Kentucky Constitution has no service limb: it reaches owners who are sixty-five or older or classified as totally disabled. A compensable rating below total waives the VA funding fee but does not reach the state exemption.

Can you help with my Kentucky homestead exemption application?

No. It is administered by your county Property Valuation Administrator. We raise it because it changes the escrowed property tax in the payment we underwrite and feeds the VA residual-income calculation, but we cannot submit or decide an application.

Will you tell me if a conventional loan is better for me in Kentucky?

Yes. If you are putting a substantial deposit down and are not exempt from the VA funding fee, conventional financing is often the better deal, and for a short expected hold in a falling metro a deposit is protection rather than a cost. We write both.

Mike Certo ยท NMLS #260555 ยท Cornerstone First Mortgage NMLS #173855 ยท Equal Housing Lender. Educational content about VA home loan financing, not a loan commitment and not legal, tax or financial advice. Cornerstone First Mortgage is a private lender and is not affiliated with, endorsed by or acting on behalf of the U.S. Department of Veterans Affairs or any government agency. VA entitlement, funding-fee exemption and disability ratings are determined by the U.S. Department of Veterans Affairs. Kentucky's homestead exemption is established by section 170 of the Constitution of Kentucky and KRS 132.810 and is administered by county Property Valuation Administrators, not by Cornerstone; the amount is reset every two years by the Kentucky Department of Revenue and the tax effect depends on local rates. Housing market figures describe the twelve months to August 2026 and are not a forecast. Figures here carry the date we verified them against primary sources. All loans are subject to borrower, property and program qualification.