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

The Best Kentucky Mortgage Loan Options When Looking for your first house in Kentucky Kentucky First-time Home Buyer Programs👀💯👇‼

Kentucky Mortgage Requirements for FHA, VA, USDA and Fannie Mae

FHA loan in Kentucky you will be confronted with minimum credit score requirements set forth by FHA and the lender. Even though FHA will insure the mortgage loan at a certain credit score, you will see that lenders will create  “credit-overlays” to protect their risk and ask for a higher credit score.

So keep in mind when you are getting an FHA  lenders will have higher credit score minimums in addition to the FHA Mortgage Insurance program.

For a Kentucky Homebuyer wanting to purchase a home or refinance their existing FHA loan, FHA requires a 3.5% down payment and the borrower must have a 580 FICO Credit Score. If the score is below 580, then you would need 10% down and still qualify on a manual underwrite.

You must have a FICO score of at least 500 to be eligible for a Kentucky  FHA loan. If your FICO score is from 500 to 579, your down payment on the loan is 10 percent of the loan.

If your FICO score is 580 or higher, your down payment is only 3.5 percent. If your credit score is less than 580, it may be more cost-effective to take the necessary steps to improve your score before taking out the loan, rather than putting the money into a larger down payment.

How do they get the credit score:  There are three main credit bureaus in the US. Equifax, Experian, and Transunion. The three scores vary but should be relatively close as long as the same creditors are reporting to the same bureaus.

You will get a variation in the scores due to all creditors or collection companies don’t report to all three bureaus. This is why they take the mid score.  So if you have a 590 Experian, 680 Equifax, and 620 TransUnion, your qualifying credit score would be 620

Based on my experience with lenders that I deal with in Kentucky on FHA loans,  most lenders require 620 middle credit score for consideration for loan approval.

How do they get the score:  They take the mid score, so if you have a 590 Experian, 680 Equifax, and 620 TransUnion, your qualifying score would be 620.

Kentucky FHA Loans with less than 620 Score

If your score is below 620, a manual underwrite is where the AUS (Automated Underwriting System) refers your loan to a human being, and they look at the entire file to see if they can overturn and approve the mortgage loan because the Desktop Underwriting Automated Software could not approve you.

With scores below 620, they typically will want to verify your rent history, have no bankruptcies in the last two years, and no foreclosures in the last 3 years.

If you have had any lates since the bankruptcy this will probably result in a denial on a refer manual underwrite file.

Your max house payment will be set at 31% of your gross monthly income,  and your new house payment plus the bills you are paying on the credit report cannot be more than 43%.

Typically, on scores below 620 for FHA loans, they will also look at reserves or money you have saved up after the loan is made to try and qualify you. For example, if you have a 401k or savings account that has at least 4 months reserves (take your mortgage payment x 4) and this would equal your reserves. They look at this as a rainy day fund and could help you keep up on your bills if you were unemployed or could not work.

What credit score do you need to qualify for a Kentucky mortgage loan?

The first thing to keep in mind is that qualifying for a mortgage involves a lot more than just a credit score. While your FICO score is a very important ingredient, it is just one factor. Lenders also look at your income and level of debt, among other things.

As a rule of thumb, however, a credit score below 620 will make buying a home very difficult. A FICO score below 620 is considered sub-prime. In the past, there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.

A FICO score between 600 and 640  is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 620, recognizing that other factors weigh in the decision and that some banks may require a higher score.

What credit score do you need to get a low rate mortgage?

It uses to be that a score of about 720 would yield the lowest mortgage rates available. Today, the best rates kick in with a FICO score of 760. And interest rates go up significantly as your credit score drops. To give you an idea, the following table shows current rates by credit score and calculates a monthly principal and interest payment based on a $300,000 loan:

 
lenders will pull what they call a “tri-merge” credit report which will show three different fico scores from Transunion, Equifax, and Experian. The lenders will throw out the high and low scores and take the “middle score.” For example, if you had a 614, 610, and 629 score from the three main credit bureaus, your qualifying score would be 614.
 
 
So if you only have one score, you may not qualify. Lenders will have to pull their own credit report and scores so if you had it ran somewhere else or saw it on a website or credit card you may own, it will not matter to the lender, because they have to use their own credit report and scores.
 
Lastly, lenders will pull your credit report for free nowadays so this should not be a big deal as long as your scores are high enough.
 
 
offered by FHA, VA, USDA, Fannie Mae, and KHC all have their minimum fico score requirements and lenders will create overlays in addition to what the Government agencies will accept, so even if on paper FHA says they will go down to 580 or 500 in some cases on fico scores, 
 
If you have low fico scores it may make sense to check around with different lenders to see what their minimum fico scores are for loans.
The lenders I currently deal with have the following fico cutoffs for credit scores:
 
 
As you can see, different government-backed loan programs have different minimum score requirements with most lenders for an FHA, VA, or Fannie Mae loan, and 620  is required for the no down payment programs offered by USDA and KHC in Kentucky for First Time Home Buyers wanting to go no money down.
 
 
 

By paying down your credit card balances (credit utilization) and having a good pay history (payment history) ,this is the best way to raise your score. 

 The credit bureaus don’t update immediately, so I would not add to the balance or open any new bills or have any other lender do an inquiry on your credit report while we wait for the scores to hopefully go up in the next 30 days. Try to keep everything status quo and make your payments on time and keep your balances low or lower than what is now reporting on the credit report. 

FICO-Score-usage-by-industry@2x.png

How to improve your credit score!

Pay Every Single Bill on Time, or Early, Every Month

Please understand one thing; paying your bills on time each month is the single most important thing you can do to increase your credit scores.

Depending on the credit bureau, there are 4 or 5 main items that determine everyone’s credit score. Of those items, your history of paying bills makes up about 35% of the score. THIS IS HUGE!

Paying your bills on time shows lenders that you are responsible. It will also spare you from paying late fees whether it is a charge from a credit card or an added fee from your landlord.

Use a calendar, or a phone app, or some other organized system to make sure that you pay your bills on time every single month.

MAIN TIP: Do not pay ANY bill late!

Credit Cards: Lower Balances Are Always Better 

 

( If you don’t have a credit card, I suggest getting a secured credit card through Capital one Secured  Card Or Open Sky Credit card...click this link here 

 

Another big factor in calculating a credit score is the amount of credit card debt. Credit bureaus look at two things when analyzing your credit cards.

First, they look at your available credit limit. Second, they look at the existing balance on each card. From these two figures an available ratio is developed. As the ratio goes higher, so too will your credit score increase.

Here is one simple example. Suppose a person has the following credit cards, corresponding balances, and credit limits

Credit Card Current Balance Credit Limit
Chase Visa $105 $1,000
MarterCard from local bank $236 $1,500
BP MasterCard $87 $500
Totals $428 $3,000

From these numbers, we get the following calculation

$428/$3,000 = 14%

In other words, the person is using 14% of their available credit and they have 86% available credit. The closer that ratio is to 100%, the better the credit score will be.


MAIN TIP: Keep all credit card balances as low as possible.In this particular example, if they had a problem with their car, or needed medical attention or some other emergency, the person would have the money necessary to handle the situation without incurring new debt. This is wise on the consumer’s part and lenders like to see this kind of money management.

Credit Cards Part 2: 1 or 2 is Better Than a Wallet Full

The previous example showed a person that utilized just three credit cards. This is much better than someone who has 5+ credit cards, all with available balances. Why? Lenders do not like to see someone that has the potential to get too far in debt in a short amount of time.

Some people have 5, 10 or more credit cards and they use many of them. This shows a lack of restraint and control. It is much better, and neater, to have only 2 or 3 cards with low rates that handle all of your transactions. A lower number of cards are easier to manage and it does not give a person the temptation to go on a huge shopping spree that could take years to payoff.

MAIN TIP: Try to limit yourself to no more than 2-3 credit cards.

Keep the Good Stuff Right Where it is

Too many people make the mistake of paying off old debts, such as old credit cards, and then closing the account. This is actually a bad idea.

A small part of the credit score is based on the length of time a person has had credit. If you have a couple of credit cards with a long track history of making payments on time and keeping the balance at a manageable level, it is a bad idea to close out the card.

Similarly, if you have been paying on a car or motorcycle for a long time, do not be in a hurry to pay off the balance. Continue to make the payments like clockwork each month.

An account that has a good record will help your scores. An account that has a good record and multiple years of use will have an even better impact on your score.

MAIN TIP: Keep old accounts open if you have a good payment history with them.

Stop Filling Out Credit Applications

Multiple credit inquiries in a short amount of time can really hurt your credit scores. Lenders view the various inquiries as someone that is desperate and possibly on the verge of making a bad financial choice.Too many people make the mistake of getting more credit after they are approved for a loan. For example, if someone is approved for a new credit card, they feel good about their finances and decide to apply for credit with a local furniture store. If they get approved for the new furniture, they may decide to upgrade their car. This requires yet another loan. They are surprised to learn that their credit score has dropped and the interest rate on the new car loan will be much higher. What happened?

If you currently have 2 or 3 credit cards along with either a car loan or a student loan, don’t apply for any more debt. Make sure the payments on your current debt are all up to date and focus on paying them all down.

In a few months of making timely payments your scores should noticeably go up.

MAIN TIP: Limit your new loans as much as possible

Which credit scores do mortgage lenders use to qualify people for a mortgage?

While it’s common knowledge that mortgage lenders use FICO scores, most people with a credit history have three FICO scores, one from each of the three national credit bureaus (Experian, Equifax, and TransUnion). 

  • Which FICO Score is Used for Mortgages

Most lenders determine a borrower’s creditworthiness based on FICO® scores, a Credit Score developed by Fair Isaac Corporation (FICO™). This score tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk. FICO scores have different names at each of the three major United States credit reporting companies. And there are different versions of the FICO formula. Here are the specific versions of the FICO formula used by mortgage lenders:

  • Equifax Beacon 5.0
  • Experian/Fair Isaac Risk Model v2
  • TransUnion FICO Risk Score 04

Lenders have identified a strong correlation between Mortgage performance and FICO Bureau scores (FICO score). FICO scores range from 300 to 850. The lower the FICO score, the greater the risk of default.

Which Score Gets Used?

Since most people have three FICO scores, one from each credit bureau, how do lenders choose which one to use?

For a FICO score to be considered “usable”, it must be based on adequate, concrete information. If there is too little information, or if the information is inaccurate, the FICO score may be deemed unusable for the mortgage underwriting process. Once the underwriter has determined if a score is usable or not, here’s how they decide which score(s) to use for an individual borrower:

  • If all three scores are different, they use the middle score
  • If two of the scores are the same, they use that score, regardless of whether the two repeated scores are higher or lower than the third score

Lenders have identified a strong correlation between Mortgage performance and FICO Bureau scores (FICO score). FICO scores range from 300 to 850. The lower the FICO score, the greater the risk of default.

If it helps to visualize this information:

Identifying the Underwriting Score
Example Score 1 Score 2 Score 3 Underwriting Score
Borrower 1 680 700 720 700
         

Joel Lobb

Mortgage Loan Officer

Individual NMLS ID #57916

 

Text/call:      502-905-3708

email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

email me at kentuckyloan@gmail.com

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). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Bankruptcy, Collections Accounts, credit scores, Credit Scores/Credit Reports, deed-in-lieu, Disputed Accouts, FHA Guidelines, fico score, short sales

Kentucky FHA Loan Updates: What You Need to Know

 

Kentucky FHA Loan Guidelines for Credit, Down payment, income,

 

 

Kentucky FHA Loans: New Guidelines for Collections & Disputes 2026

Kentucky FHA Loans: New 2026 Guidelines

Collections, Disputes & Judgements Explained

If you’re a Kentucky first-time homebuyer with collections, disputes, or judgements on your credit report, you’re not alone—and you’re not disqualified from homeownership. The Federal Housing Administration (FHA) recently updated its lending guidelines to provide more flexibility and clarity around credit challenges.

Whether you’ve faced financial hardship, billing disputes, or collection accounts, understanding these new FHA rules could be the key to securing your Kentucky mortgage.

📋 Effective Date: All loans with case numbers assigned on or after September 9th, 2026

Understanding FHA Loans with Bad Credit, Disputes & Collections

What Are Disputed Accounts on Your Credit Report?

A disputed account appears on your credit report when you’ve officially challenged information you believe is inaccurate or incorrect. Many Kentucky borrowers don’t realize that disputed accounts can affect their ability to qualify for an FHA loan. The good news? FHA has clarified how these accounts will be evaluated going forward.

Collection Accounts & FHA Loan Qualification

Collection accounts are one of the biggest obstacles for Kentucky first-time homebuyers trying to get approved. Under the new 2026 FHA guidelines, the agency has provided specific underwriting rules that actually offer more opportunity than you might think.

Judgements on Credit Reports

If you have judgements on your credit report, FHA underwriters will evaluate them carefully, but they don’t automatically disqualify you. The new guidelines provide specific direction on how these accounts are assessed during the mortgage approval process.

New FHA Guidelines for Collections, Judgements & Disputes

Collection Account Rules: The $2,000 Threshold

Here’s how FHA Fannie Mae’s DU (Desktop Underwriter) system now handles collection accounts:

If your collection accounts total $2,000 or more cumulatively:

  1. Pay in Full — The collection debt(s) must be paid in full prior to or at closing, OR
  2. Payment Plan — You can establish a payment arrangement with the creditor, and the monthly payment is included in your debt-to-income ratio, OR
  3. 5% Payment Calculation — Include a monthly payment of 5% of the outstanding balances of each collection account in your debt-to-income ratio

If your collection accounts total less than $2,000: These may be treated more favorably during underwriting, though FHA DU will still require verification.

💡 Important for Kentucky Borrowers: If you’re married and in a community property state, collection accounts from your spouse are also counted toward this threshold—even if they’re a non-borrowing spouse.

Manual Underwriting Triggers

Certain credit situations require manual underwriting instead of automated approval. Your Kentucky FHA application will likely be manually reviewed if:

  • $1,000 or more in disputed derogatory credit accounts appears on your credit report
  • 20% or greater decline in self-employed income
  • Mortgage lates within the last 12 months

While manual underwriting takes longer, it doesn’t mean you’ll be denied. Many Kentucky borrowers with credit challenges are successfully approved through manual underwriting because a trained loan officer can explain your circumstances and compensating factors.

Payment History Requirements for FHA Approval

FHA has strict (but achievable) payment history standards:

  • All mortgage and installment loan payments must be on time within the last 12 months
  • No more than two 30-day late payments within the last 24 months
  • No derogatory credit on revolving accounts (credit cards, lines of credit) in the last 12 months
  • Collection accounts must be addressed per the guidelines above

Additional 2026 FHA Updates

New Well Water Testing Requirements

If you’re purchasing a Kentucky home with a private well, be aware of updated FHA requirements for well water testing:

Well water tests must now be:

  • Performed by a disinterested third party (not you, the seller, or anyone with a financial interest in the transaction)
  • Conducted using a method acceptable to your local health authority
  • Documented before approval

Well water testing is now required for:

  • Newly constructed properties and/or new wells
  • Properties with deficiencies in the well or water quality identified by an appraiser
  • Areas where water safety issues have been reported or are known
  • Properties near dumps, landfills, industrial sites, farms, or hazardous waste areas
  • Properties where the well and septic system are less than 100 feet apart

Overtime, Bonus & Tip Income: Simplified Calculations

Good news for Kentucky borrowers with variable income: FHA has clarified how overtime, bonuses, and tips are calculated for loan qualification.

Your overtime, bonus, or tip income will be calculated as the LESSER of:

  1. Average income earned over the previous 2 years (or the total time if earned less than 2 years), OR
  2. Average income earned over the previous year

Commission & Business Expense Requirements Removed

FHA has completely eliminated previous requirements regarding unreimbursed business expenses and commission income or automobile allowances. This aligns FHA guidelines with current IRS tax law, making it easier for self-employed borrowers and those with commission-based income to qualify.

Interested Party Contribution (IPC) Limits

Under the 2026 guidelines, mortgagees and third-party originators are now explicitly included in IPC limits. This means:

  • Lenders cannot contribute toward your down payment to artificially lower your upfront costs
  • Exception: Premium pricing credits don’t count against IPC limits—unless the lender is also acting as the seller, agent, builder, or developer

DTI Requirements & Qualification

31% Front-End / 43% Back-End FHA

31% of your gross monthly income can go toward housing costs. 43% of your gross monthly income can go toward all monthly debts.

No compensating factors required to meet these ratios, making FHA one of the most accessible loan programs for Kentucky borrowers.

Documentation You’ll Need for Underwriting

If your Kentucky FHA application requires manual underwriting due to credit challenges, be prepared to provide:

Employment & Income Documentation

  • Verbal Verification of Employment (VOE)
  • Paystubs covering the most recent 30-day period
  • W2s for the past 2 years
  • 2-year employment history

Housing & Credit History

  • Verification of Rent (VOR) or 12 months of cancelled checks if credit report doesn’t show last 12 months of housing payment history
  • Letter of Explanation (LOX) for any derogatory credit or late payments within the last 24 months

Cash Reserves

  • At least 1 month in reserves from your own funds (cannot be a gift)
  • 3 months required if purchasing a 3-4 unit property

Ready to Get Approved for a Kentucky FHA Loan?

With over 20 years of experience helping Kentucky families overcome credit challenges to achieve homeownership, I specialize in FHA loans for borrowers with collections, disputes, judgements, late payments, and more.

📧 kentuckyloan@gmail.com

📞 502-905-3708 (Call or Text)

I offer free FHA mortgage applications with same-day approvals. Let’s discuss your options today.

About Joel Lobb – Kentucky Mortgage Loan Officer

With over 20 years of mortgage industry experience, I’ve helped more than 1,300 Kentucky families secure homeownership through FHA, VA, USDA, KHC, and Fannie Mae programs.

Licensing & Credentials

  • License Type: Kentucky Mortgage Loan Only
  • NMLS Personal ID: 57916
  • Company NMLS ID: 1738461
  • Verify License: www.nmlsconsumeraccess.org

Kentucky FHA Loan Programs Available

  • ✓ Collections & Disputed Accounts
  • ✓ Judgements
  • ✓ Bad Credit & Low Credit Scores
  • ✓ Late Payments (within 24 months)
  • ✓ Self-Employed & Variable Income
  • ✓ Down Payment Assistance (KHC Programs)
  • ✓ First-Time Homebuyer Programs

Equal Housing Lender

This website is not endorsed by the FHA, VA, USDA, or any government agency. It is an independent educational platform created to assist Kentucky homebuyers with expert advice and accessible loan tools.

Last Updated: January 2026

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FHA Loans & Collections

Your Guide to Disputed Accounts & Collections 2026

💰 Collection Accounts: The $2,000 Threshold

Step 1: Check Total

Add up all collection accounts on your credit report

Step 2: Compare

$2,000?

Is your total more or less?

Step 3: Choose Path

Select your payment strategy

1

Pay in Full

Pay before or at closing

2

Payment Plan

Monthly payment included in DTI

3

5% Calculation

5% of balance added to DTI

❓ Disputed Accounts

What Triggers Manual Underwriting?

If you have $1,000 or more in disputed derogatory accounts, your application will be reviewed by a human underwriter instead of automated approval. This isn’t bad news—it means your circumstances can be explained!

⚠️

$1,000+ Disputes

Disputed derogatory accounts trigger manual review

📉

Self-Employment Drop

20% or greater income decline

⏰

Recent Mortgage Lates

Late payments in the last 12 months

✅

Good News

Manual review = opportunity to explain!

✓ Payment History Requirements

What FHA Requires

✓

All mortgage & installment payments on time in the last 12 months

✓

No more than 2 late payments (30 days) within the last 24 months

✓

No derogatory credit on revolving accounts (credit cards) in the last 12 months

✓

Collections must be addressed per the $2,000 threshold rules

📊 FHA Debt-to-Income Ratios

Your Maximum DTI Limits

Front-End Ratio
31%

Housing costs only

Back-End Ratio
43%

All monthly debts

No compensating factors required to meet these ratios

💡 Bad credit ≠ No approval. Collections and disputes can be managed with the right strategy!

Effective for all loans with case numbers assigned on or after September 9, 2026

Need help with your Kentucky FHA loan? Contact Joel Lobb • 502-905-3708 • kentuckyloan@gmail.com

This infographic is not endorsed by the FHA or any government agency

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FHA vs Conventional Loans: A Guide for Kentucky Buyers

FHA vs. Conventional Loans: Which Is Better for Kentucky Homebuyers?

Compare FHA and conventional loans for Kentucky homebuyers. Learn credit requirements, down payments, mortgage insurance, and which loan fits your situation.

When comparing FHA loans vs conventional loans in Kentucky, the decision comes down to four core factors: credit score, down payment, debt-to-income ratio, and mortgage insurance. Both loan programs are widely used across Louisville, Lexington, Northern Kentucky, and rural areas, but they serve very different borrower profiles.

FHA Loans: Built for Flexibility

Kentucky FHA loans are designed for buyers who need more flexibility. FHA financing is often a strong option for borrowers with credit scores under 680, limited savings, or little to no cash reserves after closing. FHA also allows buyers to qualify sooner after major credit events, including foreclosures that are three to seven years old and short sales that occurred two to four years ago.

Another major advantage of FHA loans in Kentucky is gifting. The entire down payment and most closing costs can be covered with gift funds from approved sources. This makes FHA especially popular with first-time homebuyers and buyers using down payment assistance programs.

FHA Mortgage Insurance (MIP) Breakdown:

  • Upfront mortgage insurance premium: 1.75% of loan amount (rolled into the loan)
  • 30-year loans with less than 5% down: 0.85% annually
  • 30-year loans with 5%+ down: 0.80% annually
  • 15-year loans: 0.45% to 0.70% annually (depending on down payment)

Conventional Loans: For Stronger Credit

Kentucky conventional loans are best suited for borrowers with stronger credit and more money saved. Conventional financing generally favors buyers with credit scores above 680, at least five percent down, and reserves remaining after closing. Borrowers with foreclosures over seven years old or short sales that occurred five to seven years ago typically fit conventional guidelines more easily.

One of the biggest advantages of conventional loans is mortgage insurance flexibility. Unlike FHA, there is no upfront mortgage insurance premium. Monthly private mortgage insurance can be lower for borrowers with strong credit, and PMI automatically drops off once the loan reaches roughly 80 percent loan-to-value. FHA mortgage insurance, by contrast, usually lasts for the life of the loan when the down payment is less than ten percent.

Quick Comparison Table

Factor FHA Loans Conventional Loans
Credit Score Required 580+ 3.5% down payment (some lenders 500+ 10% down payment) 720+ typically
Down Payment 3.5% (with 580+ score) 3-5% minimum, typically 5%
Mortgage Insurance Required on all loans (lifetime with <10% down) Only if less than 20% down; drops at 80% LTV
Upfront Insurance Premium 1.75% None
Gift Funds 100% of down payment allowed Limited or restricted
Max Debt-to-Income Up to 56.99% (with compensating factors) Typically 45%
Property Types Owner-occupied only Owner-occupied and investment
Appraisal Standards Stricter More flexible

The Bottom Line

FHA loans are ideal for Kentucky buyers rebuilding credit, using gift funds, or purchasing with limited savings. Conventional loans reward borrowers with stronger credit, larger down payments, and long-term equity goals.

Most homeowners do not keep a mortgage for 30 years. Because many refinance or sell within five to seven years, FHA’s lifetime mortgage insurance is often less of a concern than it appears on paper. In many cases, the lower interest rate and easier approval standards outweigh the insurance cost.

Joel Lobb
Mortgage Broker – FHA, VA, USDA, KHC, Fannie Mae
EVO Mortgage • Helping Kentucky Homebuyers Since 2001
📞 Call/Text: 502-905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: www.mylouisvillekentuckymortgage.com
🏠 Address: 911 Barret Ave, Louisville, KY 40204
NMLS #57916 | Company NMLS #1738461
Free Info & Homebuyer Advice →
Kentucky Mortgage Loan Expert
FHA | VA | USDA | KHC Down Payment Assistance | Fannie Mae
Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval and program requirements.
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Kentucky FHA Manual Underwriting: A Complete Guide

 

KENTUCKY FHA MORTGAGE MANUAL UNDERWRITING GUIDELINES FOR VA RESIDUAL INCOME

 

Kentucky FHA Mortgage Manual Undewriting Guidelines for FHA Mortgage Refer Eligible or Manual Downgrades

 

Continue reading “Kentucky FHA Manual Underwriting: A Complete Guide” →

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Kentucky FHA Appraisal Requirements For A Mortgage Loan Approval.

Kentucky FHA Appraisal Requirements For A Mortgage Loan Approval.
Kentucky FHA Appraisal Requirements For A Mortgage Loan Approval.

  • Ordered through a third party source. Interested/vested parties may not initiate the appraisal. I.E> buyers, sellers, realtors, loan officer, family members
  • Property must meet HUD’s minimum property standards. i.e.: permanent heat source, utilities must be on and in working order at time of inspection
  • Flips < 90 days – not allowed Per HUD -If current owner owned less than 90 days FHA will not insure. Sometimes a second appraisal will be required by FHA investor if sold within the last 6 months for a large profit. Receipts of work done may be needed to substantiate  increase in value of home in short-time period.
  • Transferred appraisal – ok
  • Appraisal valid 120 days – 30 day extension possible*
  • Property eligibility – No location restrictions.
  • New Construction Available

Kentucky FHA Appraisal Requirements For A Mortgage Loan Approval.
Kentucky FHA Appraisal Requirements For A Mortgage Loan Approval.

FHA MORTGAGE LOANS AND FLIPPING RULE FOR APPRAISALS
Resales Occurring 90 Days or Fewer after Acquisition:
 Not eligible for FHA financing
Resales occurring between 91 days and 180 Days after Acquisition:
 Obtain 2nd appraisal if resold between 91 to 180 days after acquisition
 Obtain 2nd appraisal if resale price is 100% or more over price paid by seller
 If 2nd appraisal is more than 5% lower than value of first appraisal, the lower value must be used
 Borrower not allowed to pay for 2nd appraisal
Exceptions to FHA Flipping Rules:
 Property purchased by an employer or relocation company due to relocation of an employee
 Resales by HUD – REO program
 Sales by other government agencies (i.e., IRS, court-ordered, DEA, etc.)
 Sales of non-profit agencies approved to purchase HUD properties
 Acquisition due to inheritance
 Sales of properties by federally chartered financial institutions
 Sales of properties by GSE’s
 Sales of properties by local or state governments
 Sales by builders selling a new home
 Sales of properties in federally declared disaster areas
NOTE: Mortgage Company must obtain a 12-month chain of title to document time restrictions above.
VA MORTGAGE AND FLIPPING RULE

 No Flipping Rules – Overlays may apply or at Underwriter’s discretion

 
USDA RURAL HOUSING MORTGAGE FLIPPING RULES
 Lender is responsible to ensure that any recently sold property’s value is strongly supported when a significant
increase between sale and purchase occurs.
 Lender must ensure that the appraisal value is supported with validated comps and protect the borrower from
predatory lending.

Fannie Mae Appraisal Flipping Rules
 No Flipping Rules – Lender overlays may apply
Freddie Mac
 No Flipping Rules – Lender overlays may apply

Applies to case numbers assigned on or after June 1, 2022

Updates the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report;
Extends the appraisal update validity period from 240 days to one year from the effective date of the initial appraisal report;

Allows the appraisal update to be ordered AFTER an appraisal expires; and
Eliminates the optional 30-day extension.

✨This is big news for FHA ✨

The guideline change also puts FHA appraisal expirations on par with conventional loan expiration dates.

Kentucky FHA 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.

Joel Lobb
Senior  Loan Officer
(NMLS#57916)
text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.com
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). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice.






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2026 FHA Loan Options for Kentucky Homebuyers

Kentucky FHA Loan Requirements – Updated for 2026

Kentucky FHA loan guidelines are established by the U.S. Department of Housing and Urban Development (HUD). FHA loans remain one of the most flexible mortgage options available to Kentucky homebuyers, particularly first-time buyers, borrowers rebuilding credit, and households using down payment assistance.

Employment and Income Requirements

Borrowers must demonstrate a stable employment history covering the most recent two years. This does not require the same employer, but the work history must show consistency in the same industry or line of work.

Recent college graduates may satisfy the two-year work history requirement by providing college transcripts, provided the current employment aligns logically with the education received.

Self-employed borrowers must document a minimum two-year history of self-employment and provide the most recent two years of federal tax returns filed with the IRS. FHA underwriting uses a two-year average of qualifying income, adjusted for business stability and trends.

All income must be verifiable through acceptable documentation such as pay stubs, W-2s, or tax returns. Cash income, undocumented deposits, or bank-statement-only income is not permitted for FHA qualifying purposes.

Down Payment Requirements

FHA loans require a minimum down payment of 3.5 percent for borrowers with credit scores of 580 or higher.

Borrowers with credit scores between 500 and 579 are limited to a maximum loan-to-value of 90 percent, requiring a minimum 10 percent down payment. In practice, most lenders apply overlays requiring higher credit scores, typically between 580 and 620, even though HUD technically allows lower scores.

Down payment funds must come from an approved source. Acceptable sources include personal savings, retirement account loans or withdrawals, and properly documented gift funds. Large or undocumented cash deposits are not allowed and remain one of the most common reasons for FHA loan delays or denials in underwriting.

Occupancy and Property Use

FHA loans are for primary residences only. The borrower must occupy the property as their primary home and move in within 60 days of closing. FHA financing may not be used for rental properties or investment homes.

Appraisal and Property Standards

The property must be appraised by a Kentucky-licensed, FHA-approved appraiser. The home must meet HUD’s minimum property standards, meaning it must be safe, sound, and secure.

Common appraisal concerns include peeling paint, exposed wiring, missing handrails, roof condition, and health or safety hazards. Most FHA appraisal issues are correctable prior to closing.

Debt-to-Income Ratio Guidelines

FHA evaluates two debt ratios:

The housing ratio (front-end), which includes principal, interest, property taxes, homeowners insurance, mortgage insurance, and HOA dues, is typically capped at 31 percent of gross monthly income.

The total debt ratio (back-end), which includes the housing payment plus all other monthly obligations reported on credit, is typically capped at 43 percent.

However, borrowers receiving an “Approve/Eligible” finding through FHA’s automated underwriting system may qualify with higher ratios, depending on credit scores, cash reserves, and other compensating factors.

Credit Score and Credit History Requirements

The minimum FHA credit score for maximum financing remains 580 in 2026. This does not guarantee approval, as lenders apply additional underwriting standards and overlays.

Borrowers must demonstrate acceptable recent payment history. FHA places significant weight on the most recent 12 months of credit performance.

Bankruptcy and Foreclosure Guidelines

Chapter 7 bankruptcy requires a minimum waiting period of two years from discharge, with re-established good credit and on-time payments afterward.

Chapter 13 bankruptcy may be eligible after at least 12 months of on-time plan payments, with trustee approval, and the borrower must qualify including the Chapter 13 payment.

Foreclosure generally requires a three-year waiting period from the date of foreclosure completion. Exceptions may be considered only for documented extenuating circumstances beyond the borrower’s control. Job relocation alone does not qualify as an extenuating circumstance.

Federal Debt and CAIVRS Requirements

Borrowers may not have delinquent federal debt, defaulted federal student loans, unpaid federal judgments, or unresolved FHA claims.

Lenders are required to check the CAIVRS (Credit Alert Interactive Voice Response System) database for all federally backed loans, including FHA, VA, USDA, and SBA loans. Title 31 of the U.S. Code prohibits delinquent federal debtors from receiving federal loan insurance or guarantees.

If a CAIVRS alert appears, the debt must be resolved or paid in full before closing.

FHA Gift Fund Rules for Down Payments

FHA permits gift funds for down payments and closing costs, provided there is no expectation of repayment.

Acceptable gift sources include relatives, employers, labor unions, close friends with a documented relationship, charitable organizations, and government or public entities.

Unacceptable gift sources include the seller, real estate agents, brokers, builders, or any party with a financial interest in the transaction.

A proper gift letter is required, stating that repayment is not expected. The donor must provide identifying information and documentation showing the transfer of funds from their account to the borrower.

Government and Employer Assistance Programs

Borrowers without access to family gift funds may qualify for state, local, or employer-assisted housing programs that provide down payment or closing cost assistance. In Kentucky, FHA loans can often be paired with Kentucky Housing Corporation (KHC) down payment assistance programs, subject to income limits and program availability.

How FHA Loans Are Used in Kentucky

FHA does not directly lend money. Instead, it insures loans made by FHA-approved lenders. These loans are designed for borrowers with limited down payment funds, past credit challenges, or non-traditional credit profiles.

Many Kentucky borrowers who do not qualify for conventional financing are still able to achieve homeownership through FHA-insured loans at competitive interest rates.

Pros and Cons of FHA Loans

Advantages include low down payment requirements, flexible credit standards, and the ability to combine FHA loans with down payment assistance programs.

Disadvantages include mandatory mortgage insurance. FHA charges an upfront mortgage insurance premium of 1.75 percent of the loan amount, which can be financed, and an annual mortgage insurance premium that ranges from approximately 0.45 percent to 1.05 percent depending on loan term, loan-to-value, and origination date. This annual premium is paid monthly and, in most cases, remains for the life of the loan unless refinanced.

Final Thoughts for Kentucky Homebuyers in 2026

FHA loans continue to be a practical, reliable option for Kentucky homebuyers who need flexibility without sacrificing long-term stability. While FHA guidelines are forgiving compared to conventional loans, preparation matters. Clean documentation, stable income, responsible credit behavior, and proper sourcing of funds are essential to a smooth approval.

Working with an experienced Kentucky FHA lender can help you navigate overlays, improve credit positioning, and pair FHA financing with available assistance programs.

Joel Lobb
NMLS #57916
Text or Call 502-905-3708
kentuckyloan@gmail.com
www.mylouisvillekentuckymortgage.com

Company NMLS #1738461
Equal Housing Lender

Information is provided for educational purposes only and does not guarantee loan approval. All loans are subject to underwriting guidelines, program availability, and lender approval.

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Credit scores required for A Kentucky Mortgage Loan Approval for FHA, VA, USDA and Conventional Fannie Mae

192199974_1008928599679889_572699217267405025_n
What credit score is needed to buy a house in Kentucky?

Ultimately, there is no singular credit score that can guarantee you a mortgage approval. Each lender is free to set their own credit score requirements.

But many loan types are insured by government organizations. And lenders cannot accept borrowers with credit scores below the minimum these organizations set. The four most popular home loan types are:

Conventional: Not backed by any government agency, but must meet the Fannie Mae and Freddie Mac underwriting guidelines
FHA: Loans backed by the Federal Housing Administration
VA: Loans backed by the US Department of Veterans Affairs (for military members)
USDA: Loans backed by the US Department of Agriculture (for low- to moderate-income families who buy homes in rural areas)

And here are the minimum credit score requirements for each of these loan types:

Conventional: 
620 SCORE NEEDED. BUT TO GET APPROVED FOR A FANNIE MAE LOAN MOSTLY LIKE YOU WILL NEED A 720 SCORE OR HIGHER IF YOU HAVE LESS THAN 20% EQUITY POSITION OR LESS THAN 20% DOWN PAYMENT DUE TO PRIVATE MORTGAGE INSURANCE
FHA: 
580 for a 3.5% down payment
500 for down payments of at least 10%
**MOST FHA LENDERS WILL WANT A 580 to 620  CREDIT SCORE NOWADAYS

VA: 
No minimum BUT MOST VA LENDERS WILL WANT A 580 to 620 CREDIT SCORE
USDA: 
No minimum, but with a credit score of at least 620 to 640 you could qualify for streamlined credit analysis and chances of approval goes way down if score is below 640…

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Joel Lobb
Senior  Loan Officer
(NMLS#57916)
 Fax:     (502) 327-9119
 
 Company ID #1364 | MB73346

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Kentucky FHA Loans in the State of Kentucky for 2022

Advantages of Kentucky FHA Mortgage Loans

  • You can often make a down payment as low as 3.5 percent down to a 580 credit score
  • You can finance a home with a 500 credit score with 10% down payment.
  •  Kentucky FHA loans are assumable meaning that if you have a good rate on your current mortgage and the potential buyer of your home meets FHA guidelines, then he can assume your low rate mortgage
  • Kentucky FHA loans offer streamline refinancing without credit score minimums, verification of income, and no appraisals to refinance to a lower rate making it easier to qualify.
  • Kentucky FHA loans offer flexible terms when it comes to previous bankruptcy or foreclosures. 2 years removed from Chapter 7 with reestablished
  •  credit, or if a Chapter 13, one year in the payment plan is eligible for FHA financing.
  • Foreclosures on a past home. FHA will finance a home 3 years removed from the sale date of your foreclosure property
  • 30 year fixed rate mortgage with usually the best going rates on government insured loans like FHA, VA, USDA etc.
  • No prepayment penalty on Kentucky FHA loans.
  • Higher debt to income ratio requirements when compared to Conventional loans because most Fannie Mae Conventional loans cannot have a higher debt to income ratio than 45% on the back-end
  • You can make an FHA loan anywhere in the state of Kentucky with no geographical restrictions.
  • Will allow for down payment assistance and grants for borrowers minimum down payments in the State of Kentucky through the likes of KHC, Welcome Home Grant, and Kentucky Housing Down Payment Second Mortgage loans.
  • Kentucky FHA loans allow for unoccupied cosigner. For example, lets say you have a daughter that is getting ready to graduate college and does not have the income or credit history established yet to buy a home. FHA allows a family-member to co-sign for them to buy a home and you don’t have to occupy as primary residence. Note, FHA co-singers are not allowed to makeup for some that has bad credit, because they will take the lowest credit scores of both applicants. FHA usually allows for co-singers lack of income purposes only.
  • Can usually close within 30 days just like a regular conventional mortgage. No extra time to close an FHA loan in Kentucky versus other secondary market loans like VA, USDA, Fannie Mae.
  • You can use the FHA loan over and over. You can actually have two FHA loans open at the same time, but it gets tricky on this. Call or text me with more info if you have an FHA loan currently and would like to use FHA Financing again.
  • FHA loans aren’t just for first time home buyers in Kentucky.
 
 

Disadvantages of Kentucky FHA Mortgage Loans

  • There are loan limits in the State of Kentucky on FHA Mortgage loans. The maximum FHA loan in the state of Kentucky is $$420,680 for 2022.  So if you were needing to finance a loan over this amount, you would need to look at doing a Conventional loan with the updated 2021 Kentucky State Loan Limits for a Fannie Mae loan being $647,250
  • If buying a condo in Kentucky, FHA requires the condo development be FHA approved. There is a >>>list here of Kentucky FHA approved condos here.
  • Seller must have own the home for 90 days before you can make an offer on the home. This comes into play where the seller bought the home as an investor and rehabbed the property and wants to sell for a quick profit. FHA mandates seller must maintain for 90 days before you can write up an offer on it. Also called FHA Flipping Policy. Read more here  
  • There is mortgage insurance. This is one of the biggest disadvantages for FHA loans. But as I tell most people, nobody rarely has a loan for 30 years, so if it meets your payment and your cash to close requirement, I tell people to go with it because it can be refinanced down the road and you are getting one of the lowers 30 year fixed rates out there. Both upfront and monthly mortgage insurance premiums you have to pay HUD/FHA. These premiums change whenever FHA/HUD replenish their insurance pool to pay claims from defaults, but currently the FHA upfront mortgage insurance premium is 1.75% and monthly is .85% and .80% of the loan amount. If you happen do a 15 year term or shorter, the mortgage insurance is cheaper monthly with .45 and .70 respectively  each month. The upfront mortgage insurance is the same for a 30 year and 15 year at 1.75%
  • FHA Mortgage insurance can be on the loan for life of loan. This is a recent change made in 2016 when FHA lowered there premiums for upfront and monthly mi premiums, but made the mortgage insurance for life of loan for some FHA loans. 
  • If you put down more than 10% on the loan, or have at least 10% equity in the home for a refinance, you only have to pay mortgage insurance for 11 years before it automatically falls off.
  • Obviously you can refinance out of an FHA loan at anytime, since it does not a prepayment penalty, and you can potentially get a refund of your upfront mortgage insurance if paid off within 3 years on sliding scale.
  • I have incorporated some charts below to illustrate the different Kentucky FHA Mortgage Insurance premiums to explain it better.
  • The upfront mortgage insurance is usually financed into the loan, so it will look like you are borrowing more than the standard 3.5% down payment because this is financed into the loan. Some borrowers elect to pay it out of pocket upfront, but I have never seen this done in my 20 years of doing FHA loans in the State of Kentucky
  • Kentucky FHA Loans Greater Than 15 Years MIP Chart
  • 👇
    Base Loan Amt. LTV Annual MIP
    ≤$625,500 ≤95.00% 80 bps (0.80%)
    ≤$625,500 >95.00% 85 bps (0.85%)
    >$625,500 ≤95.00% 100 bps (1.00%)
    >$625,500 >95.00% 105 bps (1.05%)

    Kentucky FHA Loans Less Than or Equal to 15 Years MIP Chart👇

    Base Loan Amt. LTV Annual MIP
    ≤$625,500 ≤90.00% 45 bps (0.45%)
    ≤$625,500 >90.00% 70 bps (0.70%)
    >$625,500 ≤78.00% 45 bps (0.45%)
    >$625,500 78.01% – 90.00% 70 bps (0.70%)
    >$625,500 >90.00% 95 bps (0.95%)

    When can I get the FHA mortgage insurance off my Mortgage Loan? See chart below 👇👇

Image result for fha cancellation of mortgage insurance chart kentucky

  • Appraisals. On an FHA appraisal, the FHA appraiser has to turn on the utilities to make sure they are in worked order when he gets there. This is different that Conventional loan appraisals. A lot of realtors or buyers think that FHA loans are harder due to appraisals, but honestly, they’re really not. FHA puts these minimum HUD standards in place to make sure the home is in good working order and SAFE to live in. I.e.is there any lead based paint or chipping paint that could lead to poisoning  It is all about Safety with FHA and HUD on these appraisals. The value is determined just like a regular Conventional, USDA, VA appraisals whereas they compare the house to 3 recent homes sold in the area to get a value.
  • Some lenders don’t offer FHA loans due to their complexity and sale on the secondary market, so if you call a local lender in Kentucky and they don’t offer FHA loans, the reason is usually they don’t have the team in place to do them or don’t want to do them due to lack of experience on the secondary government market.
  • Government Liens. FHA will not be an option for you usually if you have unpaid federal tax liens, delinquency  on federal backed-government loans, or a claim with social security etc. FHA loans are ran through aCAVIRS alert system to check to see if you are delinquent on any federal oblation. If so, this swill stop you until you can clear the CAVIRS alert system. For example, I did a loan for a buyer that had a delinquent federal debt with his student loan that happened over 14 years old. It was off the credit report and title search, so I had to switch to a conventional loan to make the home loan work.
  • FHA loans are not good for second homes or investment properties. FHA loans are mainly for single family residence 1-4 unit, that are going to occupied primarily as main home.

In summary, FHA loans have few drawbacks other than the mortgage insurance in my opinion. It is a great first time home buyer program or borrowers with past credit problems to get into a house of their own with very little out of pocket, at a low 30 year fixed rate, and no prepayment penalty

Questions about qualifying for a FHA loan in Kentucky . Give me text, call or email below. Love to help you out on your next home or refinance in Kentucky

Read more below about specific FHA Loans in Kentucky.👇👇👇
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

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

Louisville Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Zero Down Payment Home Loans | October 17, 2018 at 3:54 pm | Tags: fha gift funds, fha loan kentucky, FHA Loans Kentucky Housing First time home buyer, fha mortgage, fha mortgage loan, gift funds for fha mortgage, kentucky fha loans |

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, 580 credit score FHA, 620 credit score FHA loan, Chapter 13 Bankruptcy Guidelines, credit scores FHA loan, debt to income ratios, FHA, FHA Approved Condo Kentucky, FHA Guidelines, fico score, fico scores FHA loan, job changes fha, Kentucky FHA HUD Homes for $100 Down, Kentucky FHA Important Links, KY FHA LOANS

How does Kentucky FHA Mortgage Rates work?

Kentucky FHA mortgage loans are backed by the Federal Housing Administration under the umbrella of HUD. FHA loans were developed to help borrowers that don’t have a large down payment and a weaker credit profile to buy and refinance their home mortgage loan. 

​Kentucky FHA rates are backed by the government, so they are typically lower than other mortgage rates in the secondary market like Conventional loans and portfolio loans at banks, but fall in line compatible to other backed government loans in the secondary market likeUSDA, VA, mortgage loans. Most people seeking FHA mortgages will get a 30 year, 20 year of 15 year fixed rate loan with the security of the house payment not changing. ​

​Lower Credit Standards and Credit Scores for FHA loans

FHA mortgages will go down to a 500 credit score with at least 10% down payment, and if your credit score is higher than 580, you can put the minimum of 3.5% down payment. Additionally, you need to be only 2 years removed from a Chapter 7 bankruptcy, or 1 year from a Chapter 13 bankruptcy.

​Mortgage Insurance on FHA loans

Mortgage insurance is required on most FHA loans and is usually for life of loan with everyone paying the same. If you have a higher credit score and a larger down payment, it would make sense to look at doing a conventional mortgage loan because they are based on your credit score, money down, and debt to income ratio and not for life of loan. 

You can get a lower FHA mortgage insurance premium and not have to finance the premiums for life of the loan if you put more than 10% down payment and finance on a 15 year term. 

​Why would you consider a FHA mortgage?

​My best opinion is this. ​​​If you have a bankruptcy that is less than 4 years, have a credit score lower than 660, and very little money down, I would recommend at looking to do a FHA mortgage Loan. Your chances of getting approved with likely result in a loan approval as opposed to doing a conventional loan backed by Fannie Mae. 

Why would you consider a Conventional Loan?

My best opinion is this. If you have a bankruptcy over 4 years or longer, at least 5% down payment, a credit score of 680 or higher, I would look doing a conventional mortgage loan. 

 

 

 

​I can help you understand what mortgage is correct for you. Please contact me below and I will be happy to answer any questions. 

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

 

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

 

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans $100 down FHA program, 500 credit score FHA loan, 580 credit score FHA, 620 credit score FHA loan, Chapter 13 Bankruptcy Guidelines, closing costs guide, credit scores, credit scores FHA loan, Credit Scores/Credit Reports, debt to income ratios, Down payment assistance, down payment grant, employment, FHA, FHA Back to Work Program Ky, FHA Co-signors, FHA Guidelines, fha mortgage insurance premiums, fico scores FHA loan, first time buyer kentucky, job changes fha, Kentucky FHA Important Links, KY FHA LOANS, louisville ky fha seller contributions, Louisville Ky Home Loans, mi changes for FHA, mip

What are the requirements to  qualify for a Kentucky FHA Mortgage?

What are the requirements to  qualify for a Kentucky FHA Mortgage in 2020?

Kentucky  FHA loan is a mortgage that is insured by the Government agency under Housing and Urban Development that is called FHA or short for Federal Housing Administration. The loan was established for Kentucky Home buyers will very little or no money down home loans with more  lenient credit score and  income requirements  and tends to be more forgiving about credit history with regard to bankruptcy and foreclosures, higher debt to income ratios and job history with limited work history for home buyers will only 2 years work history or less.

Kentucky FHA Credit Score Requirements and Down Payment Requirements

The Kentucky FHA  home loan  program may accept credit scores as low as 580 and require at least a 3.5 percent down payment of the sales price on a purchase. If you have a credit score below 580, then  a 10 percent down payment or more may be acceptable some FHA lenders in Kentucky , providing you meet all program guidelines in regards to debt to income ratios, assets, and income requirements .  The loan cannot be used for rental properties and does allow for co-signers if they are related.

Remember, these guidelines are set forth by FHA and all lenders do not have to offer these guidelines, to whereas they may a higher credit score or more money down or income restrictions on how much you can qualify for.

Kentucky FHA Mortgage Loans and Bankruptcy or Foreclosure

In case you had a  blemish on your credit report with a bankruptcy, short sale or foreclosure, follow these guidelines.

Kentucky FHA loans requires a passage of two years since the discharge date of a chapter 7 bankruptcy. A chapter 13 bankruptcy may be acceptable after at least 12 months of an on time pay-back period and the borrower has received permission from bankruptcy court to enter the mortgage transaction, and you qualify with the new house payment along with other debts on the credit report.

Three years must pass if you went through a short sale or foreclosure. The date starts when the home was sold, not when you entered the transaction toward foreclosure or short sale period. Sometimes the house will not sell to 1-2 years later after the foreclosure and this is when the passage date starts. Keep this in mind on your next FHA loan pre-approval if you have had a bankruptcy or foreclosure in the past.

Kentucky FHA Loans and Mortgage Insurance

FHA loans have two forms of mortgage insurance which protects the lender for any losses suffered if the borrower defaults on the payment. ne is called upfront mortgage insurance premium (UFMIP) which has a rate of 1.75% of the loan amount. The fee can be added to the loan amount or paid in full as part of your closing costs. In addition, FHA loans also have a 0.8-0.85% (of the loan amount) monthly mortgage insurance. In most cases, this mortgage insurance remains for the life of the loan. To eliminate the mortgage insurance, the borrower must refinance the loan into a non-FHA loan program and have 20% equity in the property.

In addition to the down payment requirements on a FHA loan, they’re closing costs and prepaids to pay at closing. The  seller can contribute up to 6% of the sales price to help the buyer with closing costs and prepaid expenses. Closing costs vary from lender to lender and your prepaids would be the same no matter which lender you choose because this is a function of the property ‘s home insurance premium quote you obtain and the property tax bill on the home set by PVA.

Sometimes the lender can pay a credit toward these expenses at closing with a lender credit which lets the lender credit back to you with a higher rate to reduce the costs of the loan’s costs at closing for out of pocket expenses.

All Kentucky FHA loans are assumable, which means that when the homeowner sells a home, the buyer may be able to take on the existing loan and terms (e.g.: balance, rate and remaining loan amount). Of course, anyone interested in the assumable loan feature must go through the approval process (credit check, income verification) with the current lender on the property. This is a very rare occurrence because most sellers are going to sell the home for more than they owe on it.

Kentucky FHA Loan Requirements

 

 

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). USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans louisville ky fha seller contributions

Louisville Kentucky FHA Seller Contributions and Closing Costs

Louisville Kentucky FHA Seller contributions can make a big impact for a first time home buyer struggling to save the required 3.5% down payment let alone all other related fees. A seller who understands the benefit and has the ability to offer assistance could make the difference between purchasing a home now and continuing to rent.

Louisville Kentucky FHA Maximum Seller Contributions

Louisville Ky FHA guidelines allow the seller to contribute up to 6% of the sales price toward the buyers closing costs, discount points, and prepaids. The seller is also allowed to pay the upfront mortgage insurance premium (MIP) which is typically rolled into the cost of the loan.

Common FHA Closing Costs:

Below is a list of customary fees associated with an Kentucky FHA loan. This is only an example of costs the seller may pay on your behalf and does not include all allowable costs per Kentucky FHA guidelines. Make certain your lender provides you with an itemized list known as a Good Faith Estimate.

  • Origination fee – The maximum origination fee is 1 percent of your loan amount, or 2 percent of the loan amount if it’s a home equity conversion loan.
  • Appraisal fee to determine the value of the home
  • Costs associated with your mortgage credit report
  • Attorney’s fees, title search fees, title insurance – Attorney’s fees are not typical in Colorado, but title fees are and can range from $250 to $1,500 depending on the home’s location.
  • Prepaid interest – You will pay interest accrued between the closing date and the end of the month.
  • Upfront premium for your Kentucky FHA mortgage insurance. This will be 1.5 percent of the loan amount, but you may be able to roll it into your loan.
  • Escrow amounts for future taxes and insurance – You will be required to pay 1 year of homeowner’s insurance and a few months of your property taxes.
  • Discount points (if applicable)
  • Up Front Mortgage Insurance Premium (MIP)
  • Buy Downs (cost incurred for a permanent or temporary interest rate buy down)While the total amount of your closing costs might seem like a hefty price to pay, keep in mind what you’re getting in return:A home you can call your very own.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans FHA Streamline Refinance, Mortgage Insurance UFMIP, Refinance, Streamline

Kentucky FHA Streamline Refinance

Our Kentucky FHA lenders can help you buy a home with no money down or refinance to the lowest rates possible!

via Kentucky FHA Streamline Refinance.

Kentucky FHA Streamline Refinance

Welcome to the Kentucky FHA Streamline Refinance program! Our KY FHA lenders can help you save money each month on your FHA mortgage.  Want to take advantage of the current low rates?  No problem!  We service all areas of The Bluegrass State and we’re here to help!

This FHA Streamline Refi process is so simple that it’s been called “Streamline” because it allows you to refinance the interest rate on your current home mortgage rather quickly. Appraisals are usually not required and there is also less paperwork involved – saving both you and the lender time and money!

***Starting June 11, 2012 if you currently have an FHA loan you may qualify for a refinance that will reduce your upfront mortgage premium to only .01 percent and your annual premium of .55 percent!***

Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell

Louisville Ky  homeowners looking to for a  FHA refinancing offers benefits for current real estate home owners who are seeking to complete a refinance mortgage of their existing real estate mortgage (s). 


Some advantages of using a Louisville KY FHA mortgage for your mortgage refinance are as follows:

  • Cash-Out up to 85% of your properties value.
  • Consolidate first and second mortgages into single loan.
  • Bill consolidation programs.
  • Easier credit and income qualifications.
  • FHA  regulated closing costs.
  • Rate and Term Mortgage Refinancing up to 96.5% of your homes value.
  • Consolidate first and second mortgages* into a single loan.
  • min. 640 credit score.
  • Competitive rates for borrowers with a Bankruptcy older than two years.
  • Competitive rates for borrowers with a Foreclosure older than three years.
  • Easier credit and income qualifications.
  • FHA regulated closing costs.
  • No Cost Interest Rate Reductions programs.
  • No Income or Credit Qualifications*.
  • Zero cost refinance options available.
  • Easily switch amortization for adjustable to fixed or vice versa.
  • Easily shorten or lengthen term of your existing loan.
  • Easier credit and income qualifications.

What Are the New Changes That Make FHA Streamline Loans Even Better?

These home loans have been available for years. Unfortunately, recent increases to mortgage insurance (MI) premiums often wiped out the savings for those refinancing.

At least until now…

New changes to the FHA Streamline program apply to those whose FHA-insured home loans were endorsed on or before May 31st, 2009.

In an effort to assist more Kentucky homeowners with FHA mortgages to refinance at today’s incredibly interest rates FHA mortgage insurance rates were reduced, effective June 11th, 2012.

This new change alone means thousands of dollars in savings for most borrowers.

According to the FHA, based upon a $200,000 30 year mortgage with a loan-to-value higher than 95%, those who took out loans on or before May 31st, 2009, will now realize the following savings:

Before June 11th, 2012

After June 11th, 2012

Mortgage Premium at Closing

$3,500

$20

Monthly MI Premium

$208.33

$91.67

Upfront MI Premium Percentage

1.75%

0.01%

Annual MI Premium Percentage

1.25%

0.55%

 



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Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Refinance, Refinance Streamline, Streamline

Steps for refinancing FHA Mortgage Loans

Steps for refinancing FHA Mortgage Loans.

via Steps for refinancing FHA Mortgage Loans.

Steps for refinancing FHA Mortgage Loans

Steps for refinancing FHA Mortgage Loans

Posted on April 15, 2013

26Step 1: Get in touch with your local FHA mortgage lender / bank and make clear that you would like to refinance the present FHA mortgage loan. You don’t require working with the loaner /the bank that’s presently servicing the loan. You’re able to shop about for lenders to put forward the least fees / the speediest turnaround time.

Conditions needed to get a FHA Loan:

•    stable employment record, not less  than 2 years of service history

•    Consistent revenue over the last 2 years

•    Any Chapter seven bankruptcy on documentation must be not less than 2 years old with excellent credit for the 2 successive subsequent years.

•    Any foreclosure have to be not less than 3 years old

•   Inquire the lender regarding streamlined FHA refinance. This kind of refinance happens to only be for homeowners who by now contain an FHA loan. FHA Streamline mortgage refinance have need of a good deal less documentation compared to a refinance that isn’t traditional. You are only going to be qualified for streamlined refinancing in the event of you currently being in a FHA Loan.

Step 2: have the lender sent by mail, fax, or e-mail, based on first choice, all documents that mortgage lender asks for.

Step 3: Provide the lender with authorization to verify your credit & to evaluate your house. Both are significant for the mortgage refinance (or Mortgage Refinancing) process. Lenders depend on customer’s credit score – anything over 720 is thought to be good, even as scores beneath 620 is thought to be bad – to establish if they are going to lend you cash and what ROI. They would be sending an appraiser for ensuring that your home worth has sufficient equity. The majority of lenders & banks require you to have not less than 90% equity in your residence.

FHA house Mortgage Loans happen to be backed by the Federal Housing management and is a more and more popular option for house buyers. This happens to be partly for the reason that the FHA Refinance need just a 3.5 advance in the house purchase cost, as the majority of mortgage lenders need 20% down payment. Find an FHA accepted Mortgage Lender.

The benefits of Streamline FHA Mortgage Refinance Loans:

1. The house owner is able to get a lesser ROI and this is going to assist them to decrease their monthly mortgage imbursement.

2. They are able to alter the terms of their present loans like loan length.

3. Rapid processing and abridged paperwork & documentation. This is the way in which they obtain the name “streamlined”. It is going to be taking less time to close up and you would be spending less time attempting to get all the paperwork & information together.

4. Closing prices are able to be chosen to incorporate them in the fresh loan if there’s sufficient equity in the house or they are able to opt to have no closing prices but that possibly will bring about a higher ROI.

5. The house owner doesn’t have to authenticate income /employment status.

Certainly there’re some qualifications which you must meet to be able to get the Streamlined FHA Refinance loan.

Steps for refinancing FHA Mortgage Loans

Steps for refinancing FHA Mortgage Loans

Related Articles
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans FHA Streamline Refinance, Refinance, Refinance Streamline, Streamline

Louisville Kentucky FHA Streamline Mortgage Refinance Progra,

How to Get Qualify for FHA Streamline Mortgage Refinance Program

 

Eligibility Requirements
Oddly enough, the FHA Streamline mortgage refinance program is one of the easiest to qualify for. All one has to have is a current FHA-insured mortgage loan. To refinance it, one does not need a new appraisal of his home; the FHA will count the original value of the house as its existing worth. The only homeowners who cannot qualify for this program are those whose conventional loans are owned or serviced by Sallie Mae or Freddie Mac.
The Streamline Mortgage Refinance Plan
There are official rules for participating in an FHA mortgage Streamline refinance. The first of these is that one must have an excellent payment record that goes back at least three months. Another is that all loans must be current at the time they are closed upon. Also, the FHA mandates that borrowers complete 6 mortgage payments on their FHA mortgages, and that no less than 210 days go by from the most current closing to qualify for Streamline refinance.
What Verification?
Another perk of FHA Streamline mortgage refinance is that there is no verification of … anything, really. A person should be aware of the FHA Streamline refinance mortgage rates, but that’s all he’ll need to know. The FHA does not require income verification, proof of employment, or that one provide income tax returns. It also doesn’t look at one’s credit score because it relies on payment histories to determine future loan functioning. Add to that the fact that there’s no need for an appraisal, and this is a pretty good deal.

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Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans FHA Streamline Refinance, Refinance, Refinance Streamline, Streamline

Kentucky FHA Streamline Refinance

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Image adapted from US fed gov’t source nationalatlas.gov Category:Congressional districts of Kentucky (Photo credit: Wikipedia)

Our Kentucky FHA lenders can help you buy a home with no money down or refinance to the lowest rates possible!

via Kentucky FHA Streamline Refinance.

via Kentucky FHA Streamline

Kentucky FHA Streamline Refinance Calculator

Refinance.

Kentucky FHA Streamline Refinance

Kentucky FHA Streamline Refinance

Kentucky FHA Streamline Refinance

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Zero Down Payment: Kentucky Homebuyer Grants Guide

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

Kentucky offers several grant programs

Kentucky offers several grant programs to help residents achieve their dream of homeownership. These programs provide financial assistance to eligible buyers, making the purchase of a home more affordable. Here’s an overview of the current grant options available to Kentucky homebuyers:

1. Kentucky Housing Corporation (KHC) Down Payment Assistance Program

The KHC offers up to $12,500 in down payment assistance to eligible first-time homebuyers. This program can be used in conjunction with KHC’s first mortgage loans.

Eligibility:

  • Must be a first-time homebuyer or not have owned a home in the past three years
  • Meet income and purchase price limits, which vary by county
  • Complete a homebuyer education course

2. Kentucky Affordable Housing Trust Fund

This program provides funds to create or preserve affordable housing for low-income households. While not a direct grant to homebuyers, it can help create affordable housing opportunities.

3. USDA Rural Development Grant

Although not specific to Kentucky, this federal program is available in many rural areas of the state.

Key features:

  • Provides loans and grants for low-income individuals in rural areas
  • Can be used for home purchases or repairs
  • Income limits and location restrictions apply

4. Louisville Metro Down Payment Assistance Program

Specific to Louisville, this program offers forgivable loans of up to $25,000 to help with down payment and closing costs.

Eligibility:

  • Must be a first-time homebuyer
  • Income must be at or below 80% of the area median income
  • Property must be located within Louisville Metro

5. Lexington Homeownership Assistance Program

This program, specific to Lexington, provides up to $15,000 in down payment and closing cost assistance.

Eligibility:

  • Must be a first-time homebuyer
  • Income must be at or below 80% of the area median income
  • Property must be located within Lexington-Fayette Urban County

6. Individual Development Account (IDA) Program

While not exclusive to homebuying, this program can help prospective homeowners save for a down payment.

Key features:

  • Provides matching funds for savings (typically $2 for every $1 saved)
  • Can be used for homeownership, education, or starting a small business
  • Income and asset limits apply

7. Welcome Home Grant

FeatureWelcome Home GrantKHC DPA
TypeGrant (no repayment if retained)Repayable loan (second mortgage)
Amount TypicalUp to ~$20,000*Up to $12,500
PaybackNone if stays 5+ years*Monthly payments over 15 yrs
Retention/Terms5-year deed restrictionStandard mortgage second lien
Income Limits≤80% MRB householdMRB or Secondary Market
Qualifying IncomeHousehold inclusiveDependent on mortgage product underwriter
First-Time BuyerOptionalDepends on mortgage product
AccessThrough FHLB member lendersThrough KHC-approved lenders
AvailabilitySeasonal, limitedOngoing

How to Apply

To apply for these grants, contact the respective program administrators:

  1. For KHC programs: Visit www.kyhousing.org
  2. For USDA Rural Development: Visit www.rd.usda.gov/ky
  3. For city-specific programs: Contact your local housing authority or visit the city’s official website
  4. Welcome Home Grant
  5. Program is administered through participating FHLB Cincinnati member lenders (banks and credit unions that belong to the FHLB system).
  6. Buyers must contact a participating mortgage lender early and reserve funds once the program opens (often first-come, first-served).
  7. A fully executed purchase contract and signed mortgage application are typically required to reserve funds.
  8. KHC DPA
  9. Must work with a KHC-approved lender; you cannot apply directly to KHC.
  10. The KHC-approved lender will bundle the first mortgage and the DPA second mortgage into one closing transaction.
  11. Implication:
  12. Both programs require lender participation. The Welcome Home Grant is tied to a different funding source (FHLB) than KHC’s internal DPA loan.

Remember that grant availability and terms may change, so it’s essential to check with the program administrators for the most up-to-date information. Additionally, many of these programs require participants to complete homebuyer education courses. These courses can provide valuable information about the homebuying process.

By taking advantage of these grant programs, Kentucky residents can make their dream of homeownership more attainable. Be sure to explore all options and consult with housing counselors or financial advisors to determine the best path to homeownership for your specific situation.

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Kentucky FHA Loan Requirements for 2022

KENTUCKY HUD REO PROPERTIES ELIGIBLE FOR THE $100 DOWN PAYMENT INCENTIVE

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Kentucky HUD homes (FHA $100 down candidate list)

These HUD-owned listings are currently showing bid activity. All homes are sold as-is and bidding must be submitted through a HUD-registered selling broker.

Tip: HUD HomeStore lets you search by “State, City, ZIP, Address or Case #.”
(Open HUDHomeStore)

110 Glades St, Berea, KY 40403 (Madison County)

$273,700 · 4 beds · 3 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-482211
Status highlights
Price reduced

View HUD details (search)
Alternate search

761 River Rd, Edmonton, KY 42129 (Metcalfe County)

$144,000 · 5 beds · 3 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-712269
Status highlights
Price reduced

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159 Mount Sterling Rd, Paris, KY 40361 (Bourbon County)

$142,000 · 2 beds · 1 bath · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-736010
Status highlights
Price reduced

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Alternate search

45 Lee Dr, Beaver Dam, KY 42320 (Ohio County)

$140,000 · 3 beds · 2 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-739539
Status highlights
—

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Alternate search

1311 E Main Street, Horse Cave, KY 42749 (Hart County)

$120,000 · 3 beds · 2 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-711292
Status highlights
—

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509 Ponder Br, Frenchburg, KY 40322 (Menifee County)

$114,400 · 4 beds · 2 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-727188
Status highlights
Price reduced

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816 E 15th St, Owensboro, KY 42303 (Daviess County)

$90,000 · 2 beds · 1 bath · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-692830
Status highlights
—

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410 Chapel St, Falmouth, KY 41040 (Pendleton County)

$90,000 · 2 beds · 2 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-696999
Status highlights
—

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511 E Bellville St, Marion, KY 42064 (Crittenden County)

$68,000 · 2 beds · 1 bath · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-720151
Status highlights
Price reduced

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707 N Levisa Rd, Mouthcard, KY 41548 (Pike County)

$40,000 · 3 beds · 1.1 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-563350
Status highlights
New listing

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214 Silk Stocking Loop, Van Lear, KY 41265 (Johnson County)

$26,520 · 3 beds · 2 baths · Listing period: Extended · Bids open: 01/27/2026

HUD case #
201-330704
Status highlights
Hard to sell

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208 North Lakeshore Drive, Owenton, KY 40359 (Owen County)

$210,000 · 3 beds · 1 bath · Listing period: Exclusive · Bids open: 01/27/2026

HUD case #
201-659268
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—

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3265 Chaumount Rd, Park City, KY 42160 (Edmonson County)

$200,000 · 4 beds · 2 baths · Listing period: Exclusive · Bids open: 02/03/2026

HUD case #
201-748894
Status highlights
New listing

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6904 Holly Lake Dr, Louisville, KY 40291 (Jefferson County)

$165,000 · 2 beds · 1 bath · Listing period: Exclusive · Bids open: 01/27/2026

HUD case #
201-744748
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1438 N Old Stilesville Rd, Eubank, KY 42567 (Pulaski County)

$120,000 · 3 beds · 2 baths · Listing period: Exclusive · Bids open: 01/27/2026

HUD case #
201-727348
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—

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Important: HUD listings, bid periods, and eligibility can change. Homes are sold as-is. FHA $100 down is for eligible owner-occupant buyers on qualifying HUD homes, subject to FHA and HUD guidelines.
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NMLS #57916 | Company NMLS #1738461
Mortgage Broker – FHA, VA, USDA, KHC, Fannie Mae
Call/Text: 502-905-3708
Email: kentuckyloan@gmail.com

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans's avatarLouisville Kentucky Mortgage Loans

Search Results for HUD Homes in KY

13 listings found
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Property CaseAddressPriceStatusBedBathListing PeriodBid Open DateDetails 
201-39890485 Tomahawk Dr
Louisa, KY, 41230
Lawrence County		$146,50032.00Extended 01/31/2022View Street
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201-4113676893 Ky 57
Vanceburg, KY, 41179
Lewis County		$53,00042.00Exclusive 02/04/2022View Street
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201-44332299 Falls Br
Belfry, KY, 41514
Pike County		$88,20032.00Extended 01/31/2022View Street
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201-4631047916 Owenton Rd
Frankfort, KY, 40601
Franklin County		$130,00032.00Extended 01/31/2022View Street
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201-4923659655 Marshall Rd
Ryland Hght, KY, 41015
Kenton County		$137,70021.00Extended 01/31/2022View Street
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201-5602351280 Alton Rd
Lawrenceburg, KY, 40342

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Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Kentucky FHA Loan Requirements for 2022

How long does it take to close a Kentucky Rural Housing Loan in Kentucky?

Current Underwriting Turn Times on Rural Housing USDA Loans in Kentucky
Kentucky Rural Housing USDA Turn Times

Are you interested in knowing the current status of USDA’s turn times? USDA provides this information on their website.

Kentucky USDA loans are not slow — that’s a myth. A USDA Rural Housing loan has two approvals: lender underwriting and final USDA review. In Kentucky, both are moving steadily, and most loans are closing within normal contract timelines. The real key? A clean, well-documented file from the start. If you’re looking for a true no-down-payment option in eligible rural areas and want realistic timelines (not guesswork), start with a proper USDA pre-approval.

How long does it take to close a Kentucky USDA Rural Housing loan?

Last updated: January 25, 2026
Serving Kentucky homebuyers with USDA Rural Housing, FHA, VA, Conventional, and KHC Down Payment Assistance.

If you’re considering a USDA Rural Housing loan in Kentucky, your timeline depends on two underwriting stages. The lender underwriting phase is usually similar to FHA and VA timelines. The second phase is the final review completed by USDA Rural Development, and that is the step most buyers worry about.

Current Kentucky USDA turn times

USDA publishes state-by-state underwriting turn time updates on their official website. If you want the current Kentucky Rural Development review time, that public update is the most reliable benchmark.

Tip: Ask your lender what date your file will be submitted to Rural Development and whether the submission package is “clean” (complete). Clean packages move faster.

The two-step USDA approval process

Step 1: Lender underwriting

  • Income, assets, credit, and property reviewed
  • Typically tracks closely with FHA and VA underwriting speed
  • Most delays come from missing documentation or unclear income

Step 2: USDA Rural Development review

  • Final USDA approval after lender underwriting
  • State-specific turn times (Kentucky is published by USDA)
  • Turn times can move up or down based on volume

What affects closing time the most?

  • Document completeness at submission (the biggest factor)
  • Income type (hourly overtime, commission, self-employment, seasonal work)
  • Eligibility items (household income calculation, property eligibility, appraisal/repairs)
  • How quickly conditions are cleared once issued

Bottom line for Kentucky homebuyers

In today’s market, Kentucky USDA loans are moving consistently. The shutdown-era horror stories are not the norm. When the file is packaged correctly and conditions are handled fast, many USDA contracts can close within standard purchase timelines.

Get a free Kentucky USDA pre-approval

Want a realistic timeline based on your income, county, and property? Start with a proper pre-approval and a clean documentation plan.

Call/Text: 502-905-3708  | 
Email: kentuckyloan@gmail.com

FAQ: Kentucky USDA Rural Housing turn times

Are USDA loans slow in Kentucky?

Not inherently. The timeline depends on file quality, appraisal/repairs, and the current Rural Development review queue. A clean, complete submission is the best way to avoid delays.

What can I do to speed up my USDA closing?

Provide all documents upfront, respond to conditions quickly, and work with a lender who packages Rural Development submissions correctly the first time.

Does USDA publish Kentucky turn times?

Yes. USDA posts state-by-state underwriting/processing turn time information on their official site. That update is the best reference for what Kentucky is doing right now.

Income limits apply. Property eligibility required. Not a commitment to lend. Subject to underwriting and program guidelines.
Equal Housing Lender | NMLS #57916 | Company NMLS #1738461


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Infographic: Kentucky USDA Rural Housing turn times explained (2026).

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Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans's avatarLouisville Kentucky Mortgage Loans

Current Underwriting Turn Times on Rural Housing USDA Loans in Kentucky

Kentucky Rural Housing USDA Turn Times

Are you interested in knowing the current status of USDA’s turn times? USDA provides this information on their website.

View original post

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 2025 include Conventional Loans, FHA, VA, USDA, and Kentucky Housing Corporation (KHC) Down Payment Assistance programs, bankruptcy fha, usda, va, conventional loan, MINIMUM CREDIT SCORES REQUIRED FOR KENTUCKY FHA, VA, USDA MORTGAGE LOANS

USDA Rural Housing Loans in Kentucky 

USDA Rural Housing Loans in Kentucky
If you’re looking to buy a home in rural Kentucky, USDA loans may let you buy with zero down payment. Income limits apply, and the property must be in an eligible rural area. The good news? USDA loans are currently open — no shutdown. Getting pre-approved is free and there’s no obligation. If you want to see if you qualify, let’s get started.
If you’re looking to buy a home in rural Kentucky, USDA loans may let you buy with zero down payment.
Income limits apply, and the property must be in an eligible rural area.
The good news? USDA loans are currently open — no shutdown.
Getting pre-approved is free and there’s no obligation.
If you want to see if you qualify, let’s get started.
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans debt to income ratios, KY FHA LOANS

Debt-to-Income Ratio Explained: A Guide for First-Time Home Buyers

What’s a debt-to-income ratio, and why you need a low one to buy a home
In “First Time Home Buyer Loans–Kentucky”

How Much House Can I Afford? How to Calculate Debt To Income Ratio (DTI) For First Time Home Buyers

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans's avatarLouisville Kentucky Mortgage Loans

This article is too good not to be shared so it’s copied from The Washington Post.

When it comes to qualifying for a loan to buy a home or to refinance your mortgage, there are plenty of numbers to consider, such as your credit score and the appraised home value. Perhaps one of the most important numbers is your debt-to-income (DTI) ratio, which compares the minimum payments on all debt you must make each month with your gross monthly income.

“The DTI ratio is one of the most important considerations lenders take into account when evaluating the risk associated with a borrower taking on another payment,” says Paul Buege, president and chief operating officer of Inlanta Mortgage in Pewaukee, Wis. “The lower the DTI ratio a borrower has, the more confident the lender is about getting paid on time in the future based on the loan terms.”

It’s not just…

View original post 450 more words

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans appraisals, Appraisers FHA, manufactured homes, mobile homes

Guide to FHA, VA, and USDA Mobile Home Loans in Kentucky

Mobile Home Loans in Kentucky: FHA, VA, USDA, and Conventional Guidelines for 2026

Are you a Kentucky homebuyers looking for information on mobile home loans? Manufactured homes are an affordable option for many buyers. With flexible financing options like Kentucky FHA, VA, USDA, and Conventional loans, achieving homeownership in Kentucky is easier than ever. This guide provides the guidelines for each loan program. It also explains how you can qualify for a free mortgage loan approval for your mobile home in Kentucky.

Mobile Home Loan Options in Kentucky

Manufactured homes offer affordable housing solutions, but the financing process requires specific guidelines. Here’s a breakdown of the major loan programs for mobile home loans in Kentucky, their qualifications, and how they work.

FHA Mobile Home Loans in Kentucky

The FHA Loan Program is one of the most popular options for manufactured homes in Kentucky. This program requires a low credit score and offers competitive terms. It is ideal for first-time buyers or those with less-than-perfect credit.

  • Minimum Credit Score: 500 qualifying FICO score.
  • Property Types: Singlewide, Doublewide, and Triplewide manufactured homes.
  • Loan-to-Value (LTV): Up to 96.5% LTV for purchase and 80% for cash-out refinancing.
  • Underwriting: Manual underwrites are allowed.
  • Key Guidelines:
    • Homes must have been constructed after June 15, 1976.
    • The home cannot have been previously installed or occupied at another site.
    • Real property conversion is required at closing.
    • Primary residence only.
  • Advantages: No pricing adjuster for manufactured homes.

VA Mobile Home Loans in Kentucky

If you are a veteran or active-duty service member, consider the VA Loan Program. It is an excellent option for financing a mobile home. This program offers 100% financing with no down payment required.

  1. Minimum Credit Score: 500 qualifying FICO score.
  2. Property Types: Singlewide, Doublewide, and Triplewide units.
  3. Loan-to-Value (LTV): Up to 100% for purchases and 90% for cash-out refinancing.
  4. Underwriting: Manual underwrites are allowed.
  5. Key Guidelines:
    • Homes must have been constructed after June 15, 1976.
    • The home cannot have been previously installed or occupied at another site.
    • Real property conversion is required at closing.
    • Primary residence only.

USDA Mobile Home Loans in Kentucky

The USDA Loan Program provides 100% financing for manufactured homes in eligible rural areas of Kentucky. This loan is ideal for homebuyers looking for affordable financing with no down payment.

  1. Minimum Credit Score: 581 qualifying FICO score.
  2. Property Types: Singlewide, Doublewide, and Triplewide units.
  3. Loan-to-Value (LTV): Up to 100% for purchases.
  4. Home Requirements:
    • Must be a 2006 model or newer.
    • Located in a USDA-eligible rural area.
  5. Underwriting: Manual underwriting is required (Max DTI: 29/41).
  6. Key Guidelines:
    • The home cannot have been previously installed or occupied at another site.
    • Real property conversion is required at closing.
    • Primary residence only.
  8. Eligible States: RD Program available in KY and select other states.

Conventional Mobile Home Loans in Kentucky

The Conventional Loan Program is another option for financing manufactured homes in Kentucky. It offers competitive terms for buyers with stronger credit profiles.

  1. Minimum Credit Score: 620 qualifying FICO score.
  2. Property Types: Singlewide, Doublewide, and Triplewide units.
  3. Loan-to-Value (LTV): Up to 95% for purchases and 65% for cash-out refinancing.
    • Cash-out refinancing is not allowed on singlewide homes.
  4. Key Guidelines:
    • Homes must have been constructed after June 15, 1976.
    • The home cannot have been previously installed or occupied at another site.
    • Real property conversion is required at closing.
    • Both primary residences and second homes are allowed.
    • Small pricing adjuster applies for manufactured homes.

Mobile Home Loans in Kentucky: FHA, VA, USDA, and Conventional Guidelines

If you’re a Kentucky homebuyer looking to finance a mobile home, understanding the different loan options and guidelines is essential. Below, we break down the requirements for FHA loans. We also cover the requirements for VA, USDA, and Conventional loans. This information will help you secure a mobile home loan in Kentucky. Learn how you can qualify for a free mortgage loan pre-approval today!

Loan ProgramCredit Score RequirementEligible Property TypesLoan-to-Value (LTV)Key GuidelinesAdditional Notes
FHA Loan500 minimum FICO scoreSinglewide, Doublewide, Triplewide homesPurchase/Rate-Term up to 96.5% LTV
Cash-Out up to 80% LTV		– Manual underwriting allowed
– Real Property Conversion allowed at closing
– Primary residence only
– Exempt from ATR Points/Fees Test		– No prior installation/occupancy at another site
– No pricing adjuster for mobile homes
– Home must be constructed after June 15, 1976
VA Loan500 minimum FICO scoreSinglewide, Doublewide, Triplewide homesPurchase/Rate-Term up to 100% LTV
Cash-Out up to 90% LTV		– Manual underwriting allowed
– Real Property Conversion allowed at closing
– Primary residence only
– Exempt from ATR Points/Fees Test		– No prior installation/occupancy at another site
– No pricing adjuster for mobile homes
– Home must be constructed after June 15, 1976
USDA Loan581 minimum FICO scoreSinglewide, Doublewide, Triplewide homesPurchase up to 100% LTV– Manual underwriting required (Max DTI: 29/41)
– Home must be a 2006 model or newer
– Located in USDA-eligible rural areas
– Primary residence only		– No prior installation/occupancy at another site
– No pricing adjuster for mobile homes
– RD Program available in specific states, including Kentucky
Conventional Loan620 minimum FICO scoreSinglewide, Doublewide, Triplewide homesPurchase/Rate-Term up to 95% LTV
Cash-Out up to 65% LTV		– Real Property Conversion allowed at closing
– Primary and second homes allowed
– Cash-Out not allowed on Singlewide homes		– No prior installation/occupancy at another site
– Small 50 pricing adjuster for mobile homes
– Home must be constructed after June 15, 1976

Why Choose a Mobile Home Loan in Kentucky?

Mobile homes, also known as manufactured homes, offer an affordable housing solution for Kentucky residents. Whether you’re a first-time homebuyer or looking to refinance your property, government-backed loans can help. Conventional options also provide flexible terms. These options make homeownership a reality.

How to Qualify for a Mobile Home Loan in Kentucky

  1. Step 1: Check your credit score against the loan program requirements. The minimum FICO score is 500 for FHA and VA loans. For USDA loans, it is 550. Conventional loans require a score of 620.
  2. Step 2: Ensure the mobile home meets eligibility guidelines (e.g., it must be a 2006 model or newer for USDA loans or constructed after June 15, 1976, for FHA, VA, and Conventional loans).
  3. Step 3: Verify the home is not previously installed or occupied at another site.
  4. Step 4: Contact a trusted Kentucky mortgage lender to get a free pre-approval for your mobile home loan.

Free Pre-Approval for Mobile Home Loans in Kentucky

Ready to take the next step? As a Kentucky homebuyer, you can benefit from free mortgage loan pre-approval for your mobile home loan. You might be interested in an FHA, VA, USDA, or Conventional loan. Our experts will guide you through the process. They will find the best option for your needs.

Why Choose a Mobile Home Loan in Kentucky?

Manufactured homes in Kentucky offer affordability, flexibility, and modern designs. Whether you’re a first-time homebuyer or someone looking to refinance your current mobile home, these loan programs provide tailored solutions. They meet your needs. With low credit score requirements and flexible terms, financing your manufactured home is within reach.

Get Pre-Approved for a Mobile Home Loan in Kentucky Today!

Ready to take the next step? Get a free mortgage pre-approval for your mobile home loan in Kentucky today. We offer expert guidance on FHA, VA, USDA, and Conventional loan programs. We’ll help you find the best financing option for your needs.

Contact us now to get started on your journey to owning a manufactured home in Kentucky. Call or apply online for your free pre-qualification and same-day approval!


  Email – 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 Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans 2025 include Conventional Loans, FHA, VA, USDA, and Kentucky Housing Corporation (KHC) Down Payment Assistance programs

Kentucky First-Time Home Buyer Programs in 2026: FHA, VA, USDA, Conventional, and KHC Loans

Kentucky First-Time Home Buyer Programs 2026: Complete Guide to FHA, VA, USDA & KHC Loans

Kentucky First-Time Home Buyer Programs in 2026: Your Complete Guide to FHA, VA, USDA, Conventional, and KHC Loans

Buying your first home in Kentucky in 2026? You’re entering a market with more options than ever before. Updated loan limits, competitive interest rates, and powerful down payment assistance programs are making homeownership more accessible for Kentucky families across all 120 counties.

What are the best Kentucky homebuyer programs for 2026?

The main options for Kentucky homebuyers in 2026 include Conventional Loans, FHA Loans, VA Loans, USDA Loans, and Kentucky Housing Corporation (KHC) Down Payment Assistance programs. Each offers distinct advantages depending on your credit score, down payment savings, income level, and location.

This comprehensive guide breaks down every program, updated with 2026 loan limits, credit requirements, and qualification guidelines to help you make informed decisions about your home purchase.

Conventional Mortgage Loans in Kentucky (2026)

Conventional loans remain the most popular choice for Kentucky homebuyers with good credit and stable income. These loans are not government-backed, which means they follow stricter underwriting standards but offer significant benefits for qualified borrowers.

2026 Conventional Loan Requirements:

  • Credit Score: Minimum 620 (preferred 740+ for best rates)
  • Down Payment: As low as 3% for qualified first-time buyers; 5% for repeat buyers
  • Debt-to-Income Ratio (DTI): Maximum 43-50% (varies by lender and compensating factors)
  • 2026 Loan Limits for Kentucky:
    • Single-Family Home: $832,750
    • Two-Unit Property: $1,066,000
    • Three-Unit Property: $1,288,750
    • Four-Unit Property: $1,601,750

Additional Requirements:

  • Work History: Two years of consistent employment in the same field or industry
  • Bankruptcy & Foreclosure Waiting Periods:
    • No foreclosure in the past 7 years
    • No Chapter 7 bankruptcy in the past 4 years
    • Chapter 13 bankruptcy allowed after 2 years of discharge with court approval
  • Loan-to-Value (LTV): Up to 97% for qualified first-time buyers
  • Private Mortgage Insurance (PMI): Required for down payments under 20%; can be canceled once you reach 20% equity

Required Documentation:

  • Last two years of W-2 forms
  • Last 30 days of pay stubs
  • Two years of federal tax returns (self-employed or commissioned income)
  • Last two months of bank statements
  • Tri-merge credit report from lender

Why Choose Conventional? Borrowers with credit scores of 740+ and 20% down payments often prefer conventional loans because they can avoid mortgage insurance entirely and typically secure the lowest interest rates available.

Kentucky FHA Loans (2026)

FHA loans are designed specifically for first-time homebuyers and those with lower credit scores or limited savings. Backed by the Federal Housing Administration, these loans offer the most flexible qualification guidelines of any mortgage program.

2026 FHA Loan Requirements:

  • Credit Score:
    • 580+ for 3.5% down payment
    • 500-579 for 10% down payment
  • Down Payment: As low as 3.5%
  • Debt-to-Income Ratio:
    • Front-End Ratio: Maximum 31% (housing costs only)
    • Back-End Ratio: Maximum 43-57% with compensating factors
  • 2026 FHA Loan Limits for All Kentucky Counties:
    • Single-Family Home: $541,287
    • Two-Unit Property: $693,050
    • Three-Unit Property: $837,700
    • Four-Unit Property: $1,041,125

FHA Waiting Periods:

  • Foreclosure: 3 years minimum
  • Chapter 7 Bankruptcy: 2 years minimum
  • Chapter 13 Bankruptcy: 12 months of on-time payments with trustee approval

Work History Requirements:

  • Two years of steady employment in the same industry
  • Gaps exceeding 6 months in the past 2 years must be explained
  • Multiple job changes (3+ in 12 months) may require additional documentation
  • Recent college graduates can substitute education for work history

FHA Mortgage Insurance:

  • Upfront Premium: 1.75% of loan amount (can be financed into loan)
  • Annual Premium: 0.45% to 1.05% (paid monthly), based on loan amount and down payment

Required Documentation:

Same as conventional loans, plus:

  • 12-24 months of rental payment history (if manually underwritten)
  • Verification of non-traditional credit (if applicable)

Why Choose FHA? Perfect for first-time buyers rebuilding credit, those with limited savings, or anyone who has experienced past financial challenges. FHA loans are more forgiving and accessible than conventional financing.

Kentucky VA Home Loans (2026)

VA loans provide unmatched benefits for eligible veterans, active-duty service members, National Guard members, Reservists, and qualifying surviving spouses. These loans eliminate major barriers to homeownership.

2026 VA Loan Benefits:

  • Down Payment: Zero down payment required
  • Mortgage Insurance: No monthly PMI required (major savings)
  • Credit Score: Minimum 580-620 (varies by lender)
  • Debt-to-Income Ratio: No maximum DTI with sufficient residual income
  • 2026 VA Loan Limits for Kentucky:
    • Veterans with full entitlement have no loan limit
    • Partial entitlement follows conforming limits: $832,750 for single-family homes

VA Loan Requirements:

  • Certificate of Eligibility (COE): Required; obtain through VA website or your lender
  • Work History: Two years of consistent employment
  • Waiting Periods:
    • No foreclosure in the past 2 years
    • No Chapter 7 bankruptcy in the past 2 years
    • Chapter 13 bankruptcy allowed after 12 months with trustee approval
  • Loan-to-Value (LTV): Up to 100% for purchases; 100% for cash-out refinances
  • VA Funding Fee: 1.25% to 3.3% of loan amount (waived for disabled veterans)

Required Documentation:

  • Certificate of Eligibility (COE)
  • DD-214 (for veterans)
  • Statement of Service (for active duty)
  • Standard income/asset documentation

Why Choose VA? The combination of no down payment, no monthly mortgage insurance, and competitive interest rates makes VA loans the most powerful financing option available for eligible borrowers.

USDA Loans in Kentucky (2026)

USDA loans offer 100% financing for eligible rural and suburban properties throughout Kentucky. Despite the “rural” designation, many suburban areas qualify, including parts of major metro areas.

2026 USDA Loan Requirements:

  • Credit Score: Minimum 620 (preferred 640+ for automated approval)
  • Down Payment: Zero down payment required
  • Debt-to-Income Ratio:
    • Front-End: Maximum 29-32%
    • Back-End: Maximum 41-45% (higher with compensating factors through GUS system)
  • Income Limits: Must not exceed 115% of area median income (varies by county and household size)
  • Property Eligibility: Home must be in USDA-designated eligible area

USDA Waiting Periods:

  • Foreclosure: 3 years minimum
  • Chapter 7 Bankruptcy: 3 years minimum
  • Chapter 13 Bankruptcy: 12 months of on-time payments with trustee approval

USDA Guarantee Fee:

  • Upfront Fee: 1% of loan amount (can be financed)
  • Annual Fee: 0.35% (paid monthly)

Work History Requirements:

  • Two years of steady employment
  • Seasonal or temporary work may qualify with sufficient documentation

Why Choose USDA? Perfect for buyers purchasing in eligible rural or suburban areas who want 100% financing. Many Kentucky locations qualify, including areas near Louisville, Lexington, and other cities.

Kentucky Housing Corporation (KHC) Loan Programs (2026)

The Kentucky Housing Corporation offers the most comprehensive suite of programs for first-time homebuyers in the state, combining competitive interest rates with substantial down payment assistance.

KHC Down Payment Assistance Program (2026):

  • Assistance Amount: Up to $12,500
  • Structure: Second mortgage at 3.75% interest rate for 10 years
  • Usage: Can be used for down payment, closing costs, and prepaid expenses
  • Repayment: Monthly payments required; not forgivable

2026 KHC Program Options:

1. Conventional Preferred Program

  • Down payment as low as 3%
  • Available to low- to moderate-income borrowers
  • Private mortgage insurance required
  • Income limits apply (varies by county)

2. Conventional Preferred Plus 80 Program

  • Down payment as low as 3%
  • Available to higher-income borrowers (up to $181,300+ depending on county)
  • First-time and repeat buyers eligible
  • PMI required

3. Mortgage Revenue Bond (MRB) Program

  • Below-market interest rates
  • Available with FHA, VA, USDA, or Conventional loans
  • First-time buyer requirement (waived in targeted areas)
  • Maximum purchase price: $544,232

2026 KHC Income Limits (Examples):

Income limits vary by county and household size. Here are representative examples:

  • Jefferson County (Louisville): $95,000-$181,300 (depending on program and household size)
  • Fayette County (Lexington): $92,000-$176,000
  • Rural Counties: Generally lower limits; check with KHC-approved lender

KHC Purchase Price Limits (2026):

  • Maximum Purchase Price: $544,232 for most programs
  • Some programs have lower limits; verify with your lender

KHC Eligibility Requirements:

  • Must purchase primary residence in Kentucky
  • Property must meet KHC appraisal standards
  • Income and purchase price limits apply
  • First-time homebuyer requirement for most programs (waived in targeted areas)
  • Must complete homebuyer education course

Why Choose KHC? The combination of below-market interest rates and up to $12,500 in down payment assistance can save Kentucky homebuyers thousands of dollars over the life of their loan.

2026 Kentucky Welcome Home Grant

The Kentucky Welcome Home Grant is expected to return in March 2026, offering additional down payment assistance to eligible Kentucky homebuyers.

2026 Welcome Home Grant Details:

  • Grant Amount: To be announced (historically $7,500-$20,000)
  • Availability: First-come, first-served basis; funds typically depleted within weeks
  • Structure: Forgivable grant (not a loan)
  • Eligibility: Income limits and first-time buyer requirements apply
  • Launch Date: Expected March 2026

Important: The Welcome Home Grant consistently sells out within days of opening. Get pre-approved now and be ready to act immediately when the program launches.

Comparison: Kentucky Mortgage Loan Program Requirements (2026)

Program Min. Credit Score Down Payment Max DTI 2026 Loan Limit (1-Unit)
Conventional 620 3-5% 43-50% $832,750
FHA 580 3.5% 31/43-57% $541,287
VA 580-620 0% No max* $832,750 (or unlimited)
USDA 620 0% 29/41-45% Based on income limits
KHC Programs Varies 3-3.5% Varies by loan type $544,232

*VA loans evaluate residual income rather than strict DTI limits

Step-by-Step: How to Apply for a Kentucky Home Loan in 2026

Step 1: Check Your Credit Score

  • Obtain free credit reports from all three bureaus
  • Review for errors and dispute inaccuracies
  • Work on improving your score if below 620

Step 2: Calculate Your Budget

  • Determine how much you can afford monthly
  • Factor in property taxes, insurance, HOA fees
  • Use online mortgage calculators for estimates

Step 3: Get Pre-Approved

  • Contact a Kentucky-licensed mortgage professional
  • Submit required documentation
  • Receive pre-approval letter (typically same-day)

Step 4: Choose Your Loan Program

  • Compare options based on your situation
  • Consider credit score, down payment, income, and location
  • Ask about combining KHC assistance with other programs

Step 5: Find Your Home

  • Work with a licensed Kentucky real estate agent
  • Stay within your pre-approved amount
  • Ensure property meets program requirements

Step 6: Submit Full Application

  • Complete formal loan application
  • Provide any additional documentation requested
  • Coordinate home inspection and appraisal

Step 7: Close on Your Home

  • Review closing disclosure carefully
  • Bring required funds to closing
  • Sign documents and receive keys

Frequently Asked Questions

Q: Can I combine KHC down payment assistance with FHA or VA loans?

A: Yes! KHC assistance can be layered with FHA, VA, USDA, or Conventional loans, making it possible to buy with minimal out-of-pocket costs.

Q: What’s the difference between the Welcome Home Grant and KHC down payment assistance?

A: The Welcome Home Grant is a forgivable grant (not repaid), while KHC down payment assistance is a second mortgage with monthly payments at 3.75% interest.

Q: Do all Kentucky counties have the same FHA loan limits?

A: Yes. For 2026, all 120 Kentucky counties use the same FHA floor limit of $541,287 for single-family homes.

Q: Can I buy a multi-unit property with these programs?

A: Yes! FHA, VA, and Conventional loans all allow 2-4 unit purchases, with the requirement that you occupy one unit as your primary residence.

Q: How long does the mortgage approval process take?

A: Pre-approval typically happens within 24 hours. Full approval to closing typically takes 30-45 days depending on the loan type and your responsiveness.

Q: What if I have student loan debt?

A: All programs allow student loan debt. Lenders will calculate either 0.5-1% of the balance or use your actual payment amount in DTI calculations.

Why Work With a Kentucky Mortgage Specialist?

Navigating multiple loan programs, down payment assistance options, and changing requirements requires expertise and local knowledge. Working with a Kentucky-licensed mortgage professional who specializes in first-time homebuyer programs ensures:

  • ✓ Accurate Pre-Approval: Same-day approvals with correct numbers
  • ✓ Program Expertise: Knowledge of all available KHC and state programs
  • ✓ Competitive Rates: Access to wholesale pricing and special programs
  • ✓ Local Market Knowledge: Understanding of Kentucky’s 120 counties
  • ✓ Personalized Service: One-on-one guidance throughout the entire process

Get Started Today

Ready to explore your Kentucky home buying options? The 2026 loan limits and programs provide more opportunities than ever for Kentucky families to achieve homeownership.

Contact Information:

📧 Email: kentuckyloan@gmail.com

📞 Call/Text: 502-905-3708

🌐 Website: www.mylouisvillekentuckymortgage.com

Joel Lobb
Mortgage Loan Officer – Kentucky Mortgage Loan Specialist
20+ Years Experience | 1,300+ Families Helped
NMLS Personal ID: 57916
Company NMLS ID: 1738461

Services Available:

  • ✓ Free mortgage applications with same-day approval
  • ✓ All 120 Kentucky counties served
  • ✓ FHA, VA, USDA, Conventional, and KHC programs
  • ✓ Down payment assistance guidance
  • ✓ First-time homebuyer counseling

Equal Housing Lender | Licensed for Kentucky Mortgage Loans Only

Disclaimer: This website is not endorsed by or affiliated with the FHA, VA, USDA, or any government agency. Information provided is for educational purposes. Loan programs, rates, and requirements subject to change. All borrowers must meet program eligibility requirements.

2026 Kentucky Housing Market Outlook

Kentucky’s housing market continues to show strength in 2026, with steady home price appreciation and competitive interest rates creating favorable conditions for buyers. The increased loan limits provide greater purchasing power, while expanded down payment assistance programs make homeownership more accessible.

Whether you’re a first-time buyer, a veteran, or someone looking to purchase in a rural area, Kentucky’s diverse loan programs offer a pathway to homeownership that fits your unique financial situation.

Start your journey today by

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Home Mortgage Rates Ky, Kentucky State Mortgage Rates, locking in rate, mortgage rates

Best Mortgage Rates in Kentucky: A Complete Guide

How to get the best mortgage rate in Kentucky

Understanding how to get the best mortgage rates today in Kentucky involves several factors. You need to learn the differences between Kentucky FHA, VA, USDA, and conventional home loans. Each loan type has its own criteria, benefits, and rate determinants. Here’s an overview of how to obtain the best rates for each:

1. Kentucky FHA Loans

Federal Housing Administration (FHA) loans are popular among Kentucky first-time homebuyers. They offer flexible credit requirements. They also require low down payments.

Best Practices to Secure the Best Rates:

  • Credit Score: Aim for a score of 720 or higher. While Kentucky FHA loans accept lower scores, higher scores typically secure better rates.
  • Down Payment: Putting down more than the minimum 3.5% can sometimes lower the interest rate. 500 is the minimum score with 10 % down and 580 and above score will you get you to a minimum down payment of 3.5%
  • Debt-to-Income Ratio (DTI): Maintain a DTI of 56.99% or lower to increase your chances of getting a favorable rate.
  • Shopping Around: Compare offers from different lenders in Kentucky for FHA lenders. Each lender may have different rates and terms for FHA loans.
  • Larger Loan amounts: will yield better rates. A lender will get you a better rate if the loan is larger due to they will make more money on the loan vs a small loan amount.

2. Kentucky VA Loans

Veterans Affairs (VA) loans are available to veterans, active-duty service members, and certain members of the National Guard and Reserves. These loans often offer lower rates and do not require a down payment or private mortgage insurance (PMI).

Best Practices to Secure the Best Kentucky VA loan Rates:

  • Credit Score: A score of 720 or higher is generally preferred, although some lenders might accept lower scores. No minimum score set by VA lenders in Kentucky
  • Service History: Ensure your service record meets the eligibility requirements. 2 year work history usually needed
  • Loan Comparison: Even within VA loans, rates can vary between lenders. Obtain multiple quotes to find the best rate.
  • Funding Fee: Understanding the VA funding fee and including it in your budget can help in comparing the true cost of loans.

3. Kentucky USDA Loans

United States Department of Agriculture (USDA) loans are designed for rural and suburban homebuyers who meet certain income requirements.

Best Practices to Secure the Best Kentucky USDA Loan Rates:

  • Credit Score: Aim for a score of 720 or higher to access better rates. No minimum score for USDA loans
  • Income Limits: Ensure your income falls within the USDA’s eligibility guidelines for your area.
  • Property Location: The home must be in an eligible rural or suburban area. Use the USDA’s property eligibility tool to confirm.
  • Guaranteed Loan Program: USDA offers both direct and guaranteed loan programs. The guaranteed loan program often has more favorable terms.

4. Kentucky Conventional Loans

Conventional loans are not insured or guaranteed by the government and typically require higher credit scores and down payments. They are much more sensitive to down payments. Credit score is important for getting the best rate. Debt to income ratio is also crucial for loan approval. They will typically have a higher rate than government backed mortgage loans in Kentucky like FHA, VA, and USDA. However, the mortgage insurance is cheaper. It is not for the life of the loan and requires less red tape to close.

Best Practices to Secure the Best Conventional loan Rates:

  • Credit Score: A score of 780 or higher is ideal to secure the best rates. Minimum credit score for Conventional loans in Kentucky is 620
  • Down Payment: A larger down payment (40% or more) can significantly lower your interest rate and eliminate PMI.
  • DTI Ratio: A DTI ratio of 45% or lower is preferred.
  • Loan Term: Consider shorter loan terms (15 or 20 years) for lower rates, though monthly payments will be higher.
  • Large Loan Amounts: Larger Loan Amounts will yield better rates vs a small loan amount.

General Tips for All Loan Types to get the lowest Mortgage Rates in Kentucky

  • Credit Score, debt ratio, : Maintain a strong credit history, stable income, and low debt levels.
  • Rate Shopping: Use online comparison tools and consult multiple lenders. Rates can vary significantly with each lender.
  • Points: Consider paying points to lower your interest rate. This is an upfront fee that can reduce your monthly payments over the loan term.
  • Pre-approval: Get pre-approved for a mortgage to understand what rate you qualify for and to strengthen your offer when shopping for a home.
  • Locking Loan: Lock in for a shorter term. For example, lock in the rate for 30 days vs 60 days and you will get a better rate. Be aware if you go past the lock the date, you will be subject to worse case pricing.

By understanding the specific requirements and best practices for each loan type, you can position yourself to secure the most favorable mortgage rates in Kentucky.–

Best Mortgage Rates in Kentucky: A Complete Guide


NMLS ID# 57916, (www.nmlsconsumeraccess.org).

Best Mortgage Rates in Kentucky: A Complete Guide
Joel LobbMortgage Broker – FHA, VA, USDA, KHC, Fannie MaeEVO Mortgage • Helping Kentucky Homebuyers Since 2001
📞 Call/Text: 502-905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: www.mylouisvillekentuckymortgage.com
🏠 Address: 911 Barret Ave, Louisville, KY 40204
NMLS #57916 | Company NMLS #1738461
Free Info & Homebuyer Advice →
Kentucky Mortgage Loan ExpertFHA | VA | USDA | KHC Down Payment Assistance | Fannie MaeEqual Housing Lender. This is not a commitment to lend. All loans are subject to credit approval and program requirements.
Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans Kentucky FHA Loan Requirements for 2022

Top Mortgage Lenders in Kentucky | Joel Lobb

Best Mortgage Lenders in Kentucky with Joel Lobb

Are you a prospective homebuyer in Kentucky searching for the best mortgage lenders? Joel Lobb is a trusted mortgage broker. He has a proven track record of helping clients secure competitive mortgage rates. He also helps clients with financing options. With Joel Lobb by your side, you can access top-notch mortgage lenders in Kentucky. He will help you make your dream of homeownership a reality.

Joel Lobb has established strong relationships with a network of reputable mortgage lenders in Kentucky. These lenders offer a wide range of loan programs. These programs can suit your unique needs and financial goals. Whether you’re a first-time homebuyer, a seasoned investor, or looking to refinance your existing mortgage, Joel Lobb can connect you with the best mortgage lenders that offer:

  1. Competitive Interest Rates: Access mortgage loans with competitive interest rates. These rates can save you money over the life of your loan.
  2. Flexible Loan Programs: Choose from a variety of loan programs. These include FHA, VA, USDA, conventional, jumbo loans, and more. They are tailored to your specific requirements.
  3. Personalized Guidance: Receive personalized guidance and support throughout the mortgage process. This includes steps from pre-qualification to closing. These efforts ensure a smooth and stress-free experience.
  4. Quick and Efficient Approval: Benefit from efficient loan processing. Experience quick approval times, allowing you to close on your new home faster.
  5. Transparent and Honest Service: Experience transparent and honest communication throughout your mortgage journey. We provide full transparency on loan terms, fees, and requirements.

When you are looking for the best mortgage lenders in Kentucky, Joel Lobb stands out. He is a trusted advisor and advocate for his clients’ best interests. With Joel Lobb’s expertise and industry knowledge, you can navigate the complex world of mortgage lending with confidence. You can achieve your homeownership goals.

Contact Joel Lobb today. Learn more about the best mortgage lenders in Kentucky. Start your journey towards owning the perfect home for you and your family.

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

📞 Call/Text: 502-905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: www.mylouisvillekentuckymortgage.com
🏠 Address: 911 Barret Ave, Louisville, KY 40204
NMLS #57916 | Company NMLS #1738461
➡️Click here to apply for Free Info & Homebuyer Advice →
Kentucky Mortgage Loan Expert
FHA | VA | USDA | KHC Down Payment Assistance | Fannie Mae
Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval and program requirements.
 
 
 
 
 
Kentucky USDA Loans | Rural Housing Loans Kentucky
Kentucky USDA Loans | Rural Housing Loans Kentucky