Tag: fha-loans

 Buying Your First House in Kentucky: Loan Programs and Requirements


 A Guide to Buying Your First House in Kentucky: Loan Programs and Requirements

Buying Your First House in Kentucky with the recommend mortgage loan programs below

A Guide to Buying Your First House in Kentucky: Loan Programs and Requirements
Buying your first home in Kentucky is an exciting milestone, but it can also feel overwhelming. Fortunately, there are several loan programs and resources available to make the process smoother. This guide will walk you through the most popular loan programs and their requirements, helping you take confident steps toward homeownership.

  1. FHA Loan: A Flexible Option for First-Time Buyers
    The Federal Housing Administration (FHA) loan is popular among first-time homebuyers due to its lenient requirements.
    Key Requirements:
    Credit Score: Minimum of 580 with 3.5% down payment. Scores between 500-579 require a 10% down payment.
    Down Payment: 3.5% minimum.
    Mortgage Insurance: Requires both an upfront premium and monthly mortgage insurance.
    Debt-to-Income (DTI) Ratio: Typically up to 43%.
    Benefits:
    Lower credit score requirements.
    Smaller down payment.
    Flexible income guidelines.
  2. VA Loan: No Money Down for Eligible Veterans
    The VA Loan is a fantastic option for Kentucky veterans, active-duty service members, and their spouses. It’s backed by the Department of Veterans Affairs.
    Key Requirements:
    Credit Score: No official minimum, but lenders often look for 580-620.
    Down Payment: $0 (no down payment required).
    Certificate of Eligibility (COE): Required to prove eligibility.
    Mortgage Insurance: None, but a VA funding fee applies.
    Benefits:
    No down payment.
    No private mortgage insurance (PMI).
    Competitive interest rates.
  3. USDA Loan: Ideal for Rural Homebuyers
    The USDA Rural Development Loan is perfect for buyers looking to live in rural or suburban areas in Kentucky.
    Key Requirements:
    Credit Score: Generally 620 or higher.
    Income Limits: Household income must not exceed the area’s median income.
    Location: The property must be in a USDA-eligible rural area.
    Debt-to-Income Ratio: Up to 41%.
    Benefits:
    $0 down payment.
    Affordable mortgage insurance.
    Competitive fixed interest rates.
  4. Kentucky Housing Corporation (KHC) Programs
    The Kentucky Housing Corporation offers down payment assistance and loan options to first-time buyers.
    KHC Loan Options:
    KHC FHA or Conventional Loans: Competitive rates and assistance programs.
    Down Payment Assistance: Up to $10,000 in assistance for qualifying borrowers.
    Key Requirements:
    Credit Score: Minimum 620 for most programs.
    Income Limits: Vary by program and household size.
    Property Type: Must be a primary residence.
  5. Conventional Loan: A Strong Option for Higher Credit Scores
    Conventional loans, offered through private lenders, are great for buyers with stronger credit profiles.
    Key Requirements:
    Credit Score: Minimum 660.
    Down Payment: As low as 3% with first-time buyer programs.
    Mortgage Insurance: Required if down payment is less than 20%.
    Benefits:
    Lower interest rates for strong credit scores.
    Option to cancel PMI once equity reaches 20%.
    Check Your Credit Score: Understand where you stand. If needed, work on improving your score before applying.
    Determine Your Budget: Get pre-approved for a mortgage to understand your price range.
    Explore Loan Options: Compare FHA, VA, USDA, KHC, and Conventional loans.
    Find Down Payment Assistance: Ask about programs like KHC’s assistance or grants.
    Work with a Trusted Mortgage Broker: Consider partnering with someone like Joel Lobb, a Kentucky-based mortgage expert specializing in first-time buyer programs.
    Conclusion
    Buying your first home in Kentucky doesn’t have to be intimidating. With programs like FHA, VA, USDA, and KHC, you can find a loan that fits your financial situation and homeownership goals.
    Take the first step today by getting pre-approved, exploring your options, and partnering with a knowledgeable mortgage expert.
    For more details or assistance, feel free to reach out to a trusted loan officer like Joel Lobb to guide you every step of the way.


1 –  Email – kentuckyloan@gmail.com 2.   Call/Text – 502-905-3708

Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans


🌐 Website: www.mylouisvillekentuckymortgage.com
🏢 Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

How to buy a house in Kentucky with Zero Down Payment Mortgage Loan


How to buy a house in Kentucky with Zero Down Payment Mortgage Loan
How to buy a house in Kentucky with Zero Down Payment Mortgage Loan
byu/AblePost7537 inMortgageQuestionsKY

First-Time Home Buyer Loans in Kentucky

FHA Loans 

Kentucky FHA loans are one of the most popular options for first-time buyers due to their flexible requirements in regards to lower credit scores, previous bankrupticeo or foreclosures or high debt to income ratios:

  • Credit score needed: As low as 580 for 3.5% down; scores between 500-579 require a 10% down payment.
  • Down payment: 3.5% of the home’s purchase price. 10% down payment needed for scores between 500-579
  • Mortgage insurance: Required on all loans regardless of down payment or equity position. Can make the loan more expensive when compared to Conventional Loans 
  • Work history: 2 years of consistent employment or income.
  • Bankruptcy: You can qualify for an FHA loan 2 years after a Chapter 7 bankruptcy discharge, or 1 year after a Chapter 13 discharge, with court approval.
  • Debt to Income Ratios: Can be higher than Conventional loans. The max backed end ratio on AUS approval is 56.99% and 45% on the front end ratio. 

Kentucky VA Loans

If you’re a Kentucky veteran, active-duty service member of the Army, Airforce, Marines, Coast Guard, or qualifying spouse, VA loans offer a powerful path to homeownership:

  • Credit score needed: VA does not have a minimum score but most lenders typically like to see a 620 credit score or higher. I have closed some VA loans under 620 so it can be done but typically much better rates and fees on higher scores.  
  • Down payment: None required. Can put money down to lower the upfront mortgage insurance.
  • Mortgage insurance: No mortgage insurance, though there’s a one-time funding fee and it varies depending on usage and down payment and either a refinance or purchase. 
  • Work history: You must show stable income and employment, but the VA loan program is flexible with unique employment situations. If you are getting out of the military and getting a new job typically must be in line with your MOS. 
  • Bankruptcy: VA loans allow approval 2 years after Chapter 7 or 1 year after Chapter 13 bankruptcy.

Kentucky USDA loans

Designed for Kentucky Home Buyers in rural areas outside major metro areas of Kentucky , USDA loans offer another no-down-payment option:

  • Credit score needed: Typically 640 or higher. but can go down lower to 620 on a manual underwriter sometimes with lenders. Will need compensating factors such as a positive rental history for last 12 months, low debt to income ratio  (under 29% and 41% resopeivitley) and 1-2 months reserves and no payment shocik on the loan.
  • Down payment: None required.
  • Mortgage insurance: USDA loans have an upfront fee of 1% of the loan amount and an annual fee of 0.35%. Life of loan and does not vary based on down payment or term. USDA only does 30 year rate term loans. 
  • Work history: A stable income is required, with proof of 2 years’ work history.
  • Bankruptcy: USDA loans require a 3-year waiting period after a bankruptcy or foreclosure.

Kentucky Housing Corporation (KHC) Loans

KHC offers several programs to help first-time homebuyers:

  • Down payment assistance: Up to 10,000 in down payment and closing cost assistance for qualifying buyers. 10k is based on a second mortgage over 10 years at 3.75% rate. Not a true grant. Has to be paid back. 
  • Credit score needed: Minimum 620 for most programs.
  • Income limits: KHC programs are income-based, so you’ll need to meet certain household income limits.
  • Work history: Two years of consistent employment are typically required.
  • Debt Ratio: 50% max debt ratio on backend and front end. 
  • Rates and Terms: Since it is the State Housing Agency, every borrower gets the same set of rates and terms no matter which lender you use. 

Checklist of Documents Needed for a Kentucky First-Time Home Buyer Loan

  • Government-issued ID (driver’s license, passport)
  • Social Security number
  • Pay stubs for the last 30 days
  • W-2 forms for the last 2 years
  • Federal tax returns for the last 2 years
  • Bank statements for the last 2-3 months
  • Proof of any additional income (child support, alimony)
  • Employment verification
  • List of all debts and assets
  • Bankruptcy discharge papers (if applicable)
  • Gift letter (if using gift funds for your down payment)

Highly Rated Best Mortgage Company in Kentucky

Finding the right lender is crucial when purchasing your first home. One of the top-rated mortgage companies in Kentucky is Joel Lobb. Joel specializes in helping first-time homebuyers navigate FHA, VA, USDA, and KHC loan programs. With over 20 years of experience and a dedication to personal service, Joel has helped over 1,300 families secure their dream homes. His reputation for offering same-day approvals and free pre-qualifications makes him a trusted name in the industry.

For more information, contact Joel Lobb:

Final Thoughts

Purchasing a home for the first time in Kentucky can be an exciting journey. With a variety of loan options available—like FHA, VA, USDA, and KHC loans—you can find a mortgage that fits your needs, even if you have a bad credit score or are dealing with bankruptcy. Be sure to compare interest rates, understand mortgage insurance requirements, and follow a clear checklist of documents to make the home-buying process as smooth as possible.

—

Joel Lobb  Mortgage Loan Officer Expert on Kentucky Mortgage Loans 

1 –  Email – kentuckyloan@gmail.com 2.   Call/Text – 502-905-3708

https://www.mylouisvillekentuckymortgage.com/

 A Guide to Buying Your First House in Kentucky Loan Programs


.

 A Guide to Buying Your First House in Kentucky: Loan Programs and Requirements


Kentucky First‑Time Homebuyer Loan Programs for FHA, VA, KHC and USDA Mortgage Loans in Kentucky

 A Guide to Buying Your First House in Kentucky: Loan Programs and Requirements

Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans -down payment, credit score, debt-to-income ratio, and work history requirements for Kentucky Mortgage loan approval for FHA, VA, USDA, Fannie Mae, and Down Payment Grants

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).

Credit Scores and Kentucky Mortgage Loans Answer to your questions


Credit Scores and Kentucky Mortgage Loans. Answer to your questions.

Credit Fico Score for a Kentucky Mortgage FHA VA KHC

 


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http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
Question:
What is the current minimum credit scores needed to qualify for a mortgage Loan in Kentucky?
Answer:
The minimum credit score needed to qualify for a Kentucky mortgage depends on the type of loan program you are looking to obtain, this could be the reason that you have received conflicting answers. The most common types of mortgage are Conventional, FHA, USDA, VA, and KHC mortgage loans in Kentucky. I’ll explain each briefly below and the minimum credit score needed to qualify for each loan program. Keep in mind these are continuously changing and can vary by lender do to credit overlays.
 
Kentucky Conventional or Fannie Mae  
Conventional loans make up the majority of mortgages in the US. They are also known as conforming loans, because they conform to specific guidelines set by Fannie Mae and Freddie Mac.
  • Minimum Credit Score is 620
  • You can use a conventional loan to buy a primary residence, second home, or rental property
  • Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer many loan terms usually from 10 to 30 years
  • Down payments as low as 3% and 5% depending on Home Ready or straight conventional loan.
  • No monthly mortgage insurance with a down payment of at least 20%
  • Max Debt to Income Ratio of 50%
 
KENTUCKY FHA MORTGAGE
 
An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.
  • Minimum Credit Score is 500 with at least 10% down
  • Minimum Credit Score is 580 if you put less than 10% down
  • Upfront and Monthly Mortgage Insurance is required regardless of the Loan to Value
  • FHA Loans are only available for financing primary residences
  • Maximum Debt to Income Ratio of 50% (unless mitigating factors justify allowing a higher DTI) up to 57% in some instances with strong compensating factors.
KENTUCKY USDA RURAL HOUSING LOAN 
    • 100% Financing
    • Cities and towns located outside metro areas-see link (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
    • Do NOT have to be a First Time Home Buyer and no max loan limit just debt ratio requirements
    • No Down Payment
    • 30 year low fixed rate loans
    • No Prepayment Penalty
    • Great Low FIXED Interest Rates
    • Possible to Roll Closing Costs into Loan if Appraises Higher
    • No Cash Reserves Required
    • UNLIMITED Seller Contribution toward Closing Costs
    • 100% Gifted Closing Costs allowed
    • Primary Residents only (no rentals/investment properties)
    • Debt to income ratios no more than 45% with GUS approval and 29 and 41% with a manual underwrite.
    • Only Need a 580 Credit Score to Apply*** Most USDA loans need a 620 or score higher to get approved through their automated underwriting system called GUS. 640 usually required for an automated approval upfront.
    • No bankruptcies (Chapter 7) last 3 years and no foreclosure last 3 years. If Chapter 13 bankruptcy possible to go on after 1 year
     
  • KENTUCKY VA Mortgage
  • 100% Financing Available 
  • Must be eligible veteran with Certificate of Eligibility. We can help get this for veterans or active duty personnel.
  • No Down Payment Required
  • Seller Can Pay ALL Your Closing Costs
  • No Monthly Mortgage Insurance
  • Minimum 580 Credit Score to Apply–VA does not have a minimum credit score but lenders will create credit overlays to protect their interest.
  • Active Duty, Reserves, National Guard, & Retired Veterans Can Apply
  • No bankruptcies or foreclosures in last 2 years and a clear CAVIRS
  • Debt to income ratios vary, but usually 55% back-end ratio with a fico score over 620 will get it done on qualifying income and if it is a manual underwrite, 29% and 41% respectively
  • Can use your VA loan guaranty more than once, and in some cases, can have two existing va loans out at they sametime. Call or email for more info on this scenario.
  • Cost of VA loan appraisal in Kentucky now costs a  minimum $475 with a termite report needed on all purchase and refinance transactions unless a condo.
  • 2 year work history needed on VA loans unless you can show a legitimate excuse, ie. off work due to injury, schooling, education etc.
  • You cannot use your GI Bill for income qualifying for the mortgage payment.
KENTUCKY HOUSING DOWN PAYMENT ASSISTANCE 100 FINANCING 
 

How the Down Payment Assistance Program (DAP) Works

 Down payment assistance loans are available up to $10,000 and is paid back over a period of ten years at a current rate of 3.75%.

Regular DAP

  • Purchase price up to $481,176 with Secondary Market​ or Mortgage Revenue Bond (MRB) income limits.
  • Assistance in the form of a loan up to $10,000 in $100 increments.
  • Repayable over a 10-year term at 3.75 percent.
  • Available to all KHC first-mortgage loan recipients
 
If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.
 

. KHC Loan (Kentucky Housing Loan with Down Payment Assistance)

 

The  no money-down home  loan program offered by Kentucky Housing and other lenders in the state of Kentucky currently offers up to $10,000-or a 5% grant of the sales price offered by other national lenders that does not have to be repaid

 
 
 
 
 
 
 
 
 
 
 
 
 

—

Joel Lobb
Mortgage Loan Officer
 
Individual NMLS ID #57916
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
 
Company NMLS ID #1364
 
 

Text/call:      502-905-3708
email:          kentuckyloan@gmail.com

 
 

 

Fannie Mae According to the “Washington Post,” Fannie Mae raised its minimum credit score for conventional loans in 2009 from 580 to 620. Even if you have a 20-percent down payment, you…

Source: Credit Fico Score for a Kentucky Mortgage FHA VA KHC

USDA loan in Kentucky


Qualifications for a USDA Loan to Buy a Home in Kentucky

Purchasing a home in Kentucky can be made more accessible through the United States Department of Agriculture (USDA) Loan Program. This program is designed to help low-to-moderate-income individuals and families achieve the dream of homeownership in eligible rural areas. Here are the key qualifications for obtaining a USDA loan in Kentucky:

 Income Limits
To qualify for a USDA loan, applicants must not have an annual adjusted income greater than **115%** of the median household income for the area¹.

 Employment

Applicants are expected to provide proof of stable income and employment for at least two years¹.

 Credit Requirements

While there is no minimum credit score required, applicants must meet USDA’s guaranteed underwriting credit requirements. A fair consideration of the credit background is essential⁴.

Property Location

The property must be situated in an eligible rural area as defined by the USDA¹.
Property Standards
The home must be safe, sanitary, and structurally sound to qualify for a USDA loan¹.

Occupancy

Borrowers must agree to occupy the property as their primary residence³.

 Legal Capacity

Applicants must have the legal capacity to incur a loan obligation³.

 Citizenship

Applicants must meet citizenship or eligible noncitizen requirements³.

 Debt-to-Income Ratio

Your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must not exceed **29%** of your gross monthly income⁴.

 Loan Limits

The USDA does not set specific maximum loan amounts for guaranteed mortgages. Instead, local limits are determined by a combination of the area USDA maximum income limit and the borrower’s debt-to-income ratios⁴.

The USDA loan program is a fantastic opportunity for those looking to buy a home in Kentucky’s rural areas. With no down payment required and flexible qualification criteria, it opens the door to homeownership for many who may not qualify for conventional loans.

For more detailed information or to apply for a USDA loan, it’s recommended to contact a local mortgage lender or visit the USDA Rural Development website.

This article provides a concise overview of the qualifications needed for a USDA loan in Kentucky. Prospective homebuyers should consult with a mortgage professional to understand the full application process and to determine their eligibility.

¹: [Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA](https://www.mylouisvillekentuckymortgage.com/p/a-kentucky-usda-home-loan-is-zero.html)
³: [Single Family Housing Direct Home Loans in Kentucky](https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans/ky)
⁴: [Kentucky USDA Loan Limits – Loans101.com](https://www.loans101.com/usda-loans/usda-loan-limits/kentucky-usda-loan-limits-guaranteed-loans/)

(1) Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA …. https://www.mylouisvillekentuckymortgage.com/p/a-kentucky-usda-home-loan-is-zero.html.

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/