Tag: Mortgage loan

What are the Kentucky Credit Score Requirements for a Mortgage Loan Approval?


What are the Kentucky FHA Credit Score Requirements for Mortgage Loan Approvals?


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/

Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans


Here are action steps you can take right now to buy a home in Kentucky in 2025

Kentucky USDA Rural Housing Appraisal Requirements


As with all loan programs, the USDA Loan requires that an independent appraiser inspect the subject property in order to determine the property value. Specific to a USDA Loan, the appraisal report will be conducted by an FHA approved appraiser. The appraisal report must include verbiage or similar verbiage:

“The subject meets minimum standards as set under guidelines established by the U.S. Department of Housing and Urban Development and indicated in Handbooks 4000.1”

No different from a FHA or VA appraisal inspection, the appraiser is required to document all property deficiencies that preclude the appraiser from signing off on their report. A property deficiency is any defect to the house that the appraiser deems necessary to have repaired to ensure compliance to the loan program guidelines. Typical examples of property deficiencies include:

  • Chipped and peeling paint
  • Missing handrails on stairs and railing on decks
  • Lights not working properly and wires hanging out of the electrical box
  • Non-working heating and cooling systems and plumbing
  • Houses that do not have utilities turned on

If a property has deficiencies, the appraiser will determine the value of the property, but state that their report is subject to the property defects listed being corrected. After the property defects are repaired, the appraiser will re-inspect the property, and signoff if the required repairs have been completed.

Bottom line, the USDA Loan program is designed to finance homes that are in move-in condition, not fixer-uppers. However, on a subsequent email I will review an option to establish a repair escrow account to address certain property deficiencies. The repair escrow account is only available through one of my many USDA lenders, so it is imperative to inform me when making an offer a house if this option will be required.

Kentucky USDA appraisals

Kentucky USDA appraisals can take home buyers by surprise. That’s why we’ve put together some good-to-know info about the process. Feel free to use this to help educate your clients. 

The property must pass an FHA appraisal, so USDA and FHA have the same appraisal requirements, which determines the current market value and makes sure the house meets certain safety standards. Here is a list of items an FHA appraiser may look for:

General Health and Safety

  • Foundation or structural defects
  • Whether the utilities (water, sewage, heat, and electricity) all work
  • Chipped or peeling paint in homes built before 1978
  • Incomplete renovations
  • Water damage
  • If the property is accessible to vehicles, especially emergency vehicles
  • Exposed wiring and uncovered junction boxes
  • Whether the house is too close to outside hazards, such as a leaking oil tank or a waste dump
  • Excessive noise, such as being close to an airport
  • Missing handrails

Exterior

  • Leaky or defective roof and holes in the siding
  • Leaning or broken fencing 
  • Doors that don’t properly open or close
  • Condition of gutters, chimney, stairs, railings, and porches
  • If swimming pools are up to code 

Every Room

  • Whether each room has electricity
  • Whether each room has a window or door to the exterior to be used as a fire escape

Kitchen

  • Missing or broken appliances usually sold with a home, including stove and refrigerator
  • Broken or leaking sink

Bathrooms

  • Broken or leaking toilet, sink, or tub/shower
  • No ventilation (either an exhaust fan or window)

Crawl space or basement

  • Basement moisture
  • Evidence of past or present standing water

Heating and Plumbing

  • Inoperable HVAC
  • Major plumbing issues and leaks

These are some common items an FHA appraiser looks for, but other issues that might make a house unsafe could keep it from passing. An FHA appraisal is not the same as an independent home inspection. It’s still a good idea to get a separate home inspection to make sure you’re making a wise investment! 

USDA APPRAISAL REQUIREMENTS FOR KENTUCKY MORTGAGE LOANS

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

Posted by Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA  

Labels: Appraisal, appraisal issues, appraisal standards for USDA RHS, property eligibility, USDA APPRAISAL REQUIREMENTS

National Association of Realtors (NAR) recently reached a settlement that impacted real estate commissions for different mortgage loan types in Kentucky


On March 15th, 2024, the National Association of Realtors (NAR) agreed to pay $418 million in damages to settle some of their real estate commission lawsuits. The settlement prohibits NAR from requiring a seller’s agent to engage in cooperative compensation with a buyer’s agent.

The key details are:

  • Date: March 15th, 2024
  • Payment: NAR agreed to pay $418 million in damages
  • Settlement terms: NAR prohibited from requiring seller’s agent to cooperate with buyer’s agent on commissions

This settlement is significant because the new terms will likely have ripple effects that both consumers and industry stakeholders will experience:

Consumers:

  • Potentially lower real estate commission fees as a result of increased competition between agents
  • More flexibility and control for sellers in how they compensate buyer’s agents
  • Possibility of buyers having to pay their agent’s fees directly rather than them being bundled into the home price

Industry Stakeholders:

  • Real estate brokerages and agents may need to adjust their business models and commission structures
  • Reduced influence of NAR in setting industry standards and practices around commissions
  • Potential for new business models and pricing approaches to emerge in the real estate market

Overall, this settlement represents a shift in the power dynamics of the real estate industry that could lead to more competition and consumer-friendly changes in the way real estate transactions are conducted. Let me know if you have any other questions!

 Real Estate Commissions and Loan Types in Kentucky

The National Association of Realtors (NAR) recently reached a settlement that impacted real estate commissions for different mortgage loan types in Kentucky and across the United States. Here’s a breakdown of how commissions can vary:

Conventional Loans

  • For conventional mortgage loans, the typical real estate commission is 3-6% of the home’s sale price.
  • This commission is usually split evenly between the buyer’s agent and the seller’s agent.
  • Buyer may pay their Agent’s reasonable commissions or have the seller or agent contribute to the commission of the buyer agents’ commission.  Typical fees paid by the seller are not subject to the IPC limits.  (interested party contribution)

FHA Loans

  • For FHA (Federal Housing Administration) loans, the real estate commission is typically slightly lower, around 3-6% of the sale price.
  • This lower commission is due to the additional requirements and paperwork involved with FHA loans.
  • FHA Loans-FHA allows buyer to pay commissions of their agents, or negotiate the seller’s or agent contribution to commission to the buyer’s agent. – If the State and Local law or custom permits this, and if the commissions and fees are reasonable in amount, the existing policy would not treat it as an IPC. (interested party contribution)

VA Loans

  • For VA (Veterans Affairs) loans, the real estate commission is usually the lowest, around 3-6% of the sale price.
  • VA loans have strict guidelines, and the lower commission helps offset some of the additional costs associated with these loans.
  • VA Loans-Buyer may pay their agent’s commission or negotiate the seller or  agents contribution to commission to the buyer’s agent.  (interested party contribution) IPC is not mentioned. A temporary variance is permitted for the Veteran buyer to pay Buyer Broker Fees.

USDA Loans

  • USDA (United States Department of Agriculture) loans, which are designed for low-income homebuyers in rural areas, also typically have a real estate commission of 3-6%.
  • The lower commission helps make these loans more affordable for the homebuyers.
  • USDA loans-Buyer may pay their agents commission or negotiate the seller’s or agent’s contribute to the commission of the buyer’s agent. Real Estate Commission Fees are excluded from the 6% cap for IPC concessions

—How the NAR Settlement Is Changing Kentuckyconcessions,commissions,NAR Settlement,National Association of Realtors (NAR),fha loan,usda loan,seller paid buy down,va loan,real estate agents, seller concessions, buyers agent, interested party contributions Homebuyers Options for Mortgage Loan Approval

s.
Reach out to me anytime on my cell —  Always happy to help!

 

Joel Lobb  Mortgage Loan Officer NMLS 57916

EVO Mortgage
911 Barret Ave, Louisville, KY 40204
Company NMLS ID # 173846

Text/call: 502-905-3708

email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

—

—

Joel Lobb  Mortgage Loan Officer NMLS 57916

EVO Mortgage
911 Barret Ave, Louisville, KY 40204
Company NMLS ID # 173846

Text/call: 502-905-3708

email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/

NMLS 57916  | Company NMLS #173846
The 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).