Tag: zero down kentucky home loan

5 Bad Credit Mortgage Options in Kentucky for Homebuyers


Bad Credit Mortgage Options in Kentucky for Homebuyers

5 Bad Credit Mortgage Options in Kentucky for Homebuyers

By Joel Lobb, Senior Loan Officer | NMLS #57916 | Louisville, KY

Bad Credit Mortgage Options in Kentucky | FHA, VA, USDA, and More

Discover 5 bad credit mortgage solutions in Kentucky. Learn about FHA, VA, USDA, Non-QM loans, and KHC Down Payment Assistance with Joel Lobb, Mortgage Loan Officer.

Can You Get a Mortgage with Bad Credit in Kentucky?

Absolutely. As a mortgage broker who has helped over 1,300 Kentucky families achieve homeownership, I can assure you that bad credit doesn’t have to be a deal-breaker. With the right loan program and personalized guidance, you can buy a home even with less-than-perfect credit.

Several government-backed and alternative loan programs are designed specifically for buyers facing credit challenges. Let’s dive into the top 5 options available in Kentucky today.

1. FHA Loan – Credit Scores from 500+

Best For: First-time homebuyers and low-credit borrowers

Key Features:

  • Minimum Credit Score: 500 (requires 10% down) or 580+ (requires 3.5% down)
  • Loan Type: HUD-backed
  • Down Payment: 3.5% for scores 580+, 10% for 500-579
  • Benefits: Flexible credit standards, low down payments
  • Considerations: Mortgage insurance premium (MIP) required

Other Requirements:

  • No bankruptcies in the past 2 years
  • No foreclosures in the past 3 years
  • Stable 2-year work history
  • 1-3 months’ reserves recommended

Bonus: Down payment assistance programs may be available for scores 580+

FHA loans are a great option if you’ve overcome past credit issues but have stable income and rental history.

2. VA Loan – For Veterans and Active-Duty Service Members

Best For: Veterans, active-duty personnel, and eligible surviving spouses

Key Features:

  • Minimum Credit Score: No VA-mandated minimum; most lenders prefer 620+
  • Down Payment: 0%
  • Loan Type: VA-backed
  • Benefits: No PMI, competitive rates, flexible DTI ratios

Other Requirements:

  • Must meet VA residual income requirements
  • Requires a Certificate of Eligibility (COE)
  • 2 years stable employment history
  • No bankruptcies or foreclosures within the past 2 years
  • Termite inspection required

As a veteran myself, I’ve closed over 300 VA loans across Kentucky. You’ve earned these benefits — let’s use them.

3. USDA Loan – Rural Housing with 100% Financing

Best For: Low- to moderate-income buyers in rural areas

Key Features:

  • Minimum Credit Score: 620-640 (varies by lender)
  • Down Payment: 0%
  • Loan Type: USDA-backed
  • Benefits: No money down, competitive rates, flexible underwriting

Other Requirements:

  • Income limits apply ($112,450 for 1-4 household members; $148,450 for 5+)
  • 3 years removed from bankruptcy/foreclosure
  • Primary residence only
  • Upfront mortgage insurance (1%) and monthly (0.35%) for life of loan

USDA loans are perfect for buyers in eligible Kentucky counties seeking affordable paths to homeownership.

[View USDA Eligible Areas and Income Limits Here]

4. Non-Qualified Mortgage (Non-QM)

Best For: Self-employed, investors, recent credit events

Key Features:

  • Flexible Income Documentation: Use bank statements, rental income (DSCR), or asset depletion
  • Waiting Period: As little as 1 year after bankruptcy or foreclosure
  • Down Payment: 10%-20% typically required
  • Benefits: Alternative income accepted, flexible underwriting
  • Considerations: Higher rates, not government-backed

If you’re a 1099 contractor, truck driver, gig worker, or recovering from a bankruptcy, Non-QM loans open new doors.

5. Kentucky Housing Corporation (KHC) Down Payment Assistance (DAP)

Best For: Buyers needing help with down payment or closing costs

Key Features:

  • Loan Amount: Up to $10,000 assistance
  • Credit Score: Minimum 620 (FHA/VA/USDA); higher for conventional
  • Interest: 0% loan
  • Forgiveness: Potential after set time period

Other Requirements:

  • Primary residence only
  • Income and purchase price limits apply
  • Homebuyer education course completion
  • No recent bankruptcy or foreclosure

Combine KHC DAP with FHA, VA, or USDA loans for an even stronger path to affordable homeownership in Kentucky.

Who These Programs Help

  • First-time homebuyers
  • Low- to moderate-income families
  • Borrowers with prior collections or credit dings
  • Self-employed or gig workers
  • Veterans and rural buyers

What’s Next?

Don’t guess which loan fits you best. Let’s build a personalized mortgage plan based on your unique credit profile, income, and homeownership goals.

📞 Call or Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: www.mylouisvillekentuckymortgage.com

Joel Lobb — Mortgage Loan Officer
911 Barret Ave., Louisville, KY 40204
Evo Mortgage | Company NMLS# 1738461 | Personal NMLS# 57916

#BadCreditMortgage #KentuckyHomeLoans #FirstTimeHomebuyerKY #FHAloanKY #VALoanKY #USDALoanKY #KHC #MortgageHelpKY

USDA Rural Housing Loans in Kentucky


Kentucky USDA Loans: A Homeowner’s Guide

USDA Rural Housing Loans in Kentucky

Best for buyers in rural areas with moderate incomes.

  • Down Payment: 0%
  • Credit Score: 620 to 640+ preferred
  • Income Limits: Varies by household size and county
  • Location: Must be USDA-eligible rural area
  • Mortgage Insurance: Annual guarantee fee required

Pros:

  • No money down
  • Low monthly mortgage insurance

Cons:

  • Location and income limits apply
  • Slower processing due to USDA approval layer

If you have questions about qualifying as a first-time home buyer in Kentucky, please call, text, or email. You can also fill out a free prequalification below for your next mortgage loan pre-approval.

 

 

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

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).

kentucky usda mortgage lender bad credit no money down first time home buyer kentucky

Kentucky Mortgage After a Bankruptcy


Buying a Home after Bankruptcy

 

Chapter 13 Bankruptcy and Mortgage Loans: Buying a Home in Kentucky

Are you currently in or have recently completed a Chapter 13 bankruptcy and want to buy a home in Kentucky? Navigating the mortgage process after bankruptcy can feel overwhelming, but it’s entirely possible to qualify for a home loan with the right knowledge and preparation. Here’s what you need to know about how Chapter 13 bankruptcy impacts your ability to qualify for popular mortgage loan programs like FHA, VA, USDA, and Fannie Mae.

Chapter 13 bankruptcy can impact your ability to qualify for various mortgage loan programs like FHA, VA, USDA, and Fannie Mae. Here are the details for each program regarding waiting times, credit score requirements, down payment, and qualification criteria after a Chapter 13 bankruptcy:

  1. Kentucky FHA Loan after Chapter 13 Bankruptcy:

    • Waiting Time: Typically, you’ll need to wait at least two years after the discharge date of your Chapter 13 bankruptcy before applying for an FHA loan.
    • Credit Score: FHA loans are known for their flexibility with credit scores. While there’s no specific minimum score, a higher score (usually around 580 or above) can help you qualify for better terms.
    • Down Payment: The down payment requirement for an FHA loan after Chapter 13 bankruptcy is relatively low, usually starting at 3.5% of the purchase price.
    • Qualification with Chapter 13 Bankruptcy: To qualify, you must demonstrate that you’ve made all Chapter 13 payments on time for at least one year and receive approval from the bankruptcy court to take on new debt.

  2. Kentucky VA Loan after Chapter 13 Bankruptcy:

    • Waiting Time: The waiting time for a VA loan after Chapter 13 bankruptcy is generally two years from the discharge date.
    • Credit Score: VA loans also have flexible credit score requirements, with many lenders looking for scores around 620 or higher.
    • Down Payment: VA loans are known for offering zero-down financing, but eligibility depends on your military service record and whether you’ve used your VA loan benefits before.
    • Qualification with Chapter 13 Bankruptcy: Similar to FHA, you’ll need to demonstrate a consistent payment history under your Chapter 13 plan and receive approval from the bankruptcy court.

  3. Kentucky USDA Loan after Chapter 13 Bankruptcy:

    • Waiting Time: USDA loans typically require a waiting period of three years from the discharge date of your Chapter 13 bankruptcy.
    • Credit Score: While there’s no official minimum credit score, most lenders look for scores of 640 or higher for USDA loans.
    • Down Payment: USDA loans offer low to no down payment options, making them attractive for eligible borrowers in rural areas.
    • Qualification with Chapter 13 Bankruptcy: You’ll need to show that you’ve been making timely payments under your Chapter 13 plan for at least one year and obtain approval from the bankruptcy court.

  4. Kentucky Fannie Mae Loan after Chapter 13 Bankruptcy:

    • Waiting Time: Fannie Mae typically requires a waiting period of two years from the discharge date of your Chapter 13 bankruptcy.
    • Credit Score: Fannie Mae loans often have stricter credit score requirements compared to FHA, VA, and USDA loans. A score of around 620 or higher is generally needed.
    • Down Payment: Down payment requirements vary based on the type of Fannie Mae loan you apply for, but they can range from 3% to 20%.
    • Qualification with Chapter 13 Bankruptcy: You’ll need to demonstrate responsible financial management after bankruptcy, including rebuilding your credit and showing a stable income.

In all cases, it’s essential to work with a knowledgeable mortgage broker like Joel Lobb, who can guide you through the specific requirements and help you navigate the loan application process after a Chapter 13 bankruptcy.

Chapter 13 Bankruptcy and Mortgage Loans: Buying a Home in Kentucky Are you currently in or have recently completed a Chapter 13 bankruptcy and want to buy a home in Kentucky? Navigating the mortgage process after bankruptcy can feel overwhelming, but it’s entirely possible to qualify for a home loan with the right knowledge and preparation. Here’s what you need to know about how Chapter 13 bankruptcy impacts your ability to qualify for popular mortgage loan programs like FHA, VA, USDA, and Fannie Mae.

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.

Kentucky First-Time Home Buyer Mortgage Guide


Loan Program Comparison

Kentucky First-Time Homebuyer Loan Comparison (Quick View)

ProgramDown PmtMin Credit*DTI LimitMI/PMITermiteAUS
FHA3.5%580+31/43%+YesOptionalDU
VA0%580–62041% + ResidualNoRequiredDU
USDA0%640+29/41%+YesOptionalGUS
KHC DPA0%†620+ gov
660+ conv		≤ 50%Based on primaryOptionalDU/GUS

† When used with FHA, VA, or USDA
*Lender overlays may apply

Credit Score Requirements

. Minimum scores vary significantly by program:

  1. Conventional Loans: Require a minimum credit score of 620, with higher scores (660+) needed for Kentucky Housing Corporation (KHC) assistance programs
  2. FHA Loans: Permit scores as low as 500 with a 10% down payment or 580 with 3.5% down, though lenders often impose stricter floors (580–620) due to risk assessments.
  3. USDA Loans: Typically mandate 640+ scores for automated underwriting. However, manual reviews may accept 620–640 with compensating factors like stable employment
  4. VA Loans: While the U.S. Department of Veterans Affairs does not set a minimum, most lenders require 580–620 for favorable terms

Income Limits

Income restrictions apply primarily to state-assisted programs:

  • KHC Programs: Income caps
  • USDA Loans: Target low-to-moderate income households, with limits adjusted by county and household size

Debt-to-Income (DTI) Ratios

Lenders evaluate borrowers’ ability to manage monthly payments relative to income:

  • Conventional Loans: Maximum DTI of 43%, though KHC programs extend this to 50% with strong credit profiles
  • FHA Loans: Allow DTIs up to 57% if justified by Automated Underwriting System (AUS) approvals
  • VA Loans: Cap DTI at 41%, supplemented by residual income requirements

Property Requirements

  • Primary Residence: All programs mandate occupancy within 60 days of closing
  • Purchase Price Limits: KHC-imposed ceilings of $510,939 for single-family homes, adjusted periodically for inflation
  • Geographic Restrictions: USDA loans apply only to properties in rural areas, as defined by the U.S. Department of Agriculture

Kentucky Housing Corporation (KHC) Programs

Conventional Preferred and Plus 80

These flagship programs offer 30-year fixed-rate mortgages with reduced mortgage insurance premiums:

  1. Down Payment: Minimum 3%, sourced from personal savings, gifts, or KHC assistance
  2. Credit Score: 660+ for Conventional Preferred; slightly lower scores may qualify for Plus 80 with higher income thresholds
  3. Income Limits: Up to 80% of AMI for Conventional Preferred; Plus 80 accommodates incomes up to $183,400 in designated counties
  4. Education: Completion of a HUD-approved homebuyer education course is mandatory for conventional loans

Mortgage Revenue Bond Program

This initiative provides below-market interest rates for government-backed loans:

  • Eligibility: First-time buyers in non-targeted areas; repeat buyers permitted in targeted zones
  • Combined Assistance: This may be paired with KHC’s Down Payment Assistance (DPA). It offers up to $10,000 as a second mortgage at 3.75% interest over 10 years

Down Payment Assistance (DPA)

  • Structure: Second mortgage with 10-year term, forgivable if the borrower retains the property for the duration
  • Usage: Funds applicable to down payments, closing costs, and prepaid expenses
  • Cannot be used to fix up house or buy stuff for home

Loan Programs

FHA Loans

Insured by the Federal Housing Administration, these loans cater to borrowers with imperfect credit:

  • Down Payment: 3.5% with a 580+ credit score; 10% for scores between 500–579
  • Mortgage Insurance: Upfront premium of 1.75% plus annual premiums of 0.45–1.05%
  • Flexibility: Higher DTIs permitted with compensating factors like significant cash reserves
USDA Loans

Designed for rural homebuyers, USDA loans offer 100% financing:

  • Income Limits: 115% of AMI for most counties, adjusted for household size
  • Credit Requirements: 640+ for automated approval; manual underwriting required for scores 620–640
  • Property Eligibility: Must be located in USDA-designated rural zones,
VA Loans

Exclusive to veterans, active-duty personnel, and eligible spouses:

  • Down Payment: 0% required, with no private mortgage insurance (PMI)
  • Funding Fee: 1.25–3.3% of the loan amount, varying by service category and down payment
  • Credit Standards: Most lenders require 580–620 scores, though the VA itself imposes no minimum

Income and Purchase Price Limitations

  1. KHC Programs: Income limits fluctuate by county;
  2. USDA Income limits fluctuate by county;
  3. VA has no income limits
  4. FHA had no income limits

Employment Verification

  • Stability: Most programs require two years of steady employment, with exceptions for graduates entering the workforce
  • Self-Employment: Requires two years of tax returns to verify income consistency


 kentuckyloan@gmail.com 

  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.

Kentucky Local Home Loan Lender Services

 First-Time Home Buyers Welcome
 FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans
 Conventional Loan Options Available
Fast Local Decision-Making
 Experienced Guidance Through the Home Buying Process

Mortgage Loans and Tips for Kentucky first time home buyers


Kentucky First-Time Home Buyer’s mortgage Guide