Kentucky FHA loans have always been a great alternative for people who don’t quite qualify for Conventional financing. The guidelines are more forgiving allowing for smaller down payments, higher debt to income ratios, some credit issues, and more sources for the down payment.
The great thing is that the interest rate is only slightly higher than a conventional loan. Sometimes the interest rate is actually lower. Remember this! IF you go to a Kentucky Mortgage Broker or a Bank and the rate quoted is exceptionally higher, they are charging you too much. Call around for quotes. You will usually get a better rate from a Kentucky Mortgage broker.
Advantages:
Kentucky FHA loans are not as strict on credit scoring. We can go down to a 580 credit score with compensating factors and if it makes sense.
High debt to income ratios: 31% / 55%
100% of down payment can be a gift from: relative, close friend, or employer. Currently Kentucky Housing will give you up to $6,000 for down payment assistance with Kentucky FHA mortgage loans
Seller, builder, or realtor can pay up to 6% of the sales price towards the buyers closing costs, discount points, prepaids, and up front mortgage insurance premium.
Buyer can finance closing costs into the loan, except for prepaids and discount points.
Credit criteria is not as strict as a Conventional loan. In fact, you might qualify if you have filed a chapter 13 bankruptcy and have been in it for at least one year.
You can’t buy a new home without a mortgage, and one of the most important aspects of Louisville mortgage loans is the interest rate. Mortgage rates can vary greatly and can affect how much you pay for the loan. Therefore, it is imperative that you get the very best rate you can find. How can you find the right rate? Right here, you’ll find the tools you need to find a rate and get a Louisville KY home loan.
A Comparison of Louisville Mortgage Loans and Rates
Comparing Louisville mortgage rates is a great way to find the best rate. Our mortgage directory allows you to look through all of the lowest rates and locate the one that is best for you. The directory also gives you lender information for every rate, so you can contact them as soon as you find the rate you want. Another benefit of our mortgage directory? We update it daily so all of the Louisville rates are current.
Keep Your Louisville Mortgage Loan Under Control
How much of a mortgage you can afford is one of the key criteria banks look at when they approve your home loan. Use any of our mortgage calculators to find out how large of a home loan you can afford for your new Louisville home. Our mortgage calculator shows you approximately how much you will pay each month on your Louisville home loan depending on the interest rate and loan amount.
Our home affordability calculator provides an estimate of the home loan you can afford. Simply enter in the amount you may be qualified to borrow along with the amount of your down payment, and it will estimate the maximum home price for which you may qualify for your new home in Louisville, KY.
The Easy Way to a Mortgage
It can be easy to find a Louisville mortgage loan. Use all of the information and tools
FHA loans in Louisville Kentucky can benefit those who would like to purchase a home in louisville but haven’t been able to save enough money for the purchase: like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals whose credit has been marred by bankruptcy or foreclosure to qualify for an FHA loan.
The following list of Kentucky FHA appraisers has been assembled from the HUD.gov database. Visit the HUD website for the most current list of FHA appraisers in louisville, kentucky
502-905-3708 for your free FHA Mortgage Prequalification
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The KY USDA home loans are perfect for first time buyers for many reasons. They have low interest rates, absolutely no down payment, no mortgage insurance, flexible credit guidelines, and most of the closing costs can be worked into the overall amount of the loan.
Advantages of a USDA vs. FHA & Other Loans
The USDA Home Loan program offers many advantages that traditional mortgage programs simply do not offer. First of all, all USDA home loans come with low interest rates, 100% financing, and require zero down payment. In fact, the USDA home loan program is the only home loan program in the country, besides the military, that requires absolutely no money for the purchase of a home. Instead, these funds can be used to pay to furnish the home, closing costs, make home renovations.
USDA home loans also have very flexible credit guidelines compared to most traditional lenders, with non-traditional credit histories being accepted. FHA home loans require a minimum of 3.5% down payment and have relatively high monthly mortgage insurance premiums.
Kentucky USDA Income Eligibility
Because USDA home loans are designed for moderate, to low income families, there are income limit restrictions. To be eligible for a USDA loan, your adjusted annual household income cannot exceed 115% of the median average income for that area.
This means if your total household income is above the average median income for that area, you may not be able to qualify. However, there are special deductions in place, such as childcare expenses, caring for elderly family members, or children in college, that can help to reduce your overall annual income. The borrower’s total housing and other consumer credit payments should account for no more than 4% of the total income. Income limits vary by county. Check your county Kentucky income limits here!
USDA Credit Eligibility
While it is true that USDA home loan program offers some the most credit flexible guidelines available, you still will need to have a minimum credit score of 620 to 640 to qualify.
However, some lenders may accept a credit score of as low as 580, if you can prove that some of your debts were circumstantial, temporary in nature, or beyond your control.
You must also have any bankruptcies or foreclosures discharged in the last 3 years, no outstanding tax liens and no accounts that have gone to collections within the past 12 months.
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.
Kentucky FHA Mortgage Lender 