Tag: Real estate


2025 Kentucky USDA Loan Income Limits by County

Kentucky USDA loan income limits vary depending on location and household size, with specific base income thresholds for most counties. Below is an updated guide for the 2025 USDA income limits in Kentucky:

2024 USDA Income Limits for Most Kentucky Counties

General Income Limits for Most Counties (*)

  • Household Size 1-4: Up to $112,450
  • Household Size 5+: Up to $148,450

Jefferson County Louisville Metro Area () and Surrounding Counties**

The Jefferson County Metro Area, which includes Oldham, Bullitt, and Spencer counties, follows higher income limits:

  • Household Size 1-4: $112,450
  • Household Size 5+: $148,450

2025 Preview: Updated USDA Income Limits

For 2025, the USDA loan income limits will remain consistent:

  • General Counties: $112,450 (Household Size 1-4) | $148,450 (Household Size 5+)
  • Jefferson Metro Counties: Same limits apply as 2024.

Counties Ineligible or Partially Eligible for USDA Loans

While USDA loans provide 100% financing for many rural and suburban areas, certain counties or regions in Kentucky are ineligible due to population density or other factors:

Fully Ineligible Counties:

  • Jefferson County (Louisville Metro)
  • Fayette County (Lexington)

Partially Ineligible Areas:

Some cities or parts of counties are excluded:

  • Daviess County (Owensboro city limits)
  • McCracken County (Paducah city limits)
  • Warren County (Bowling Green city limits)
  • Hardin County (Fort Knox, Radcliff)
  • Christian County (Hopkinsville, Fort Campbell)
  • Boyd County (Ashland city limits)
  • Bullitt County (Hillview, Zoneton, Brooks)
  • Franklin County (Frankfort)
  • Henderson County (Henderson city limits)
  • Northern Kentucky (urban areas of Boone, Kenton, Campbell counties including Covington, Florence, and Hebron).

Northern Kentucky USDA Loan Income Limits (Higher Limits) (*):**

For Northern Kentucky counties, the USDA income limits are slightly higher:

Boone, Kenton, Campbell Counties

  • Household Size 1-4: $120,300
  • Household Size 5+: $159,150

Grant, Owen, Pendleton Counties

  • Household Size 1-4: $112,450
  • Household Size 5+: $148,450

USDA-Eligible Areas in Northern Kentucky

Eligible cities and areas in Northern Kentucky include:

  • Burlington
  • Hebron
  • Independence
  • Walton
  • Alexandria
  • Highland Heights
  • Cold Springs
  • Grant County
  • Owen County
  • Pendleton County

Why Choose a USDA Loan?

The USDA Rural Housing Loan Program is a no-money-down mortgage option designed to make homeownership more accessible. It’s not just for first-time buyers and offers many advantages:

  • No Down Payment Required
  • Competitive Interest Rates
  • Flexible Credit Guidelines

Apply for a USDA Home Loan in Kentucky

If you’re considering a USDA loan in Kentucky, I’m here to help! With over 20 years of experience, I specialize in guiding homebuyers through the USDA loan process.

Contact Information

Joel Lobb
Senior Loan Officer (NMLS# 57916)

Disclaimer: All loans are subject to credit approval, verification, and collateral evaluation. This information is intended for educational purposes only and does not guarantee loan approval. USDA loans are available only for eligible properties in Kentucky.

How to Qualify for a Kentucky USDA Loan in 2025


USDA loan in Kentucky in 2025

If you’re looking to buy a home in Kentucky, consider a USDA loan. It may be the perfect mortgage program if you want to live in a rural area. The USDA Rural Development Loan offers 100% financing with no down payment, making it an excellent option for low-to-moderate-income homebuyers. Here’s everything you need to know to qualify for a USDA loan in Kentucky in 2025.

Key Features of a Kentucky USDA Loan


Upfront Guarantee Fee:

A 1% upfront guarantee fee can be financed into the loan.
Annual fee: 0.35% of the average scheduled unpaid principal balance, paid monthly for the life of the loan.


Debt-to-Income (DTI) Ratio:

Standard ratio: 29/41% without compensating factors.
Ratio waivers may be approved if underwriting identifies strong compensating factors.


Credit Requirements:

Minimum credit score: 620 preferred but No minimum credit score requirement
Non-traditional credit is not eligible.
At least one applicant must have a 12-month credit history. This history should show no bankruptcies, foreclosures, tax liens, judgments, collections, or charge-offs in the last 36 months.


Income Restrictions:

Kentucky USDA Income limits apply based on family size, state, and county. see household income limits here click on link
All adult household income must be included to calculate total household income.


Employment Verification:

Wage Earners: Verbal or written verification of employment (VOE) is required. Pay stubs are needed. Provide 2 years of W-2s. 2 years of IRS tax transcripts are required.
Self-Employed: Verify 2 years of active business. Provide 2 years of personal and business tax returns. Include a year-to-date profit and loss (P&L) statement. Supply 2 years of IRS transcripts.


Eligible vs. Ineligible Properties


Eligible Properties:

Must be located in a designated rural area.
Includes single-family primary residences, modular homes, and detached or attached planned unit developments (PUDs).
Thermal standards must meet or exceed the International Energy Conservation Code (IECC).


Ineligible Properties:

Cooperatives.
Income-producing properties.
Manufactured or mobile homes.
Non-rural designated properties.
Non-owner-occupied homes.


How to Determine Eligibility


You need to confirm if a property is located in a designated rural area. Visit the USDA Property Eligibility Map by clicking this link 👇

Kentucky USDA Rural Housing Map for 2025 for Eligible Property Locations️

To check income limits for your county, use the

➡️ USDA Income Eligibility Tool.


Why Choose a Kentucky USDA Loan?


No Down Payment: 100% financing makes USDA loans affordable for first-time buyers.
Low Monthly Costs: With reduced mortgage insurance premiums and competitive interest rates, USDA loans help keep payments manageable.
Accessible Requirements: Even with moderate credit, you can qualify for a USDA loan if other requirements are met.

For personalized guidance and assistance with USDA loans in Kentucky, contact a mortgage professional today. Start your journey to owning your dream home.

Joel Lobb (NMLS#57916) Senior Loan Officer American Mortgage Solutions, Inc. 10602 Timberwood Circle Suite 3 Louisville, KY 40223 Company ID #1364 | MB73346 Text/call 502-905-3708 kentuckyloan@gmail.com

Joel Lobb (NMLS#57916)
Senior  Loan Officer

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

Call TOLL FREE to speak
with a USDA Loan Specialist
502-905-3708

 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).