FHA Mortgage Insurance Premium (MIP) guidelines is correct. As of March 2025, FHA loans require an upfront MIP of 1.75% of the loan amount. The annual MIP rates and their duration are influenced by factors. These factors include the loan term, loan amount, and loan-to-value (LTV) ratio.
Annual MIP Rates for FHA Loans with Terms Greater Than 15 Years:
Loan Amounts ≤ $726,200:
LTV ≤ 90%: Annual MIP of 0.50% for 11 years.
LTV > 90% and ≤ 95%: Annual MIP of 0.50% for the life of the loan.
LTV > 95%: Annual MIP of 0.55% for the life of the loan.
Loan Amounts > $726,200:
LTV ≤ 90%: Annual MIP of 0.70% for 11 years.
LTV > 90% and ≤ 95%: Annual MIP of 0.70% for the life of the loan.
LTV > 95%: Annual MIP of 0.75% for the life of the loan.
Annual MIP Rates for FHA Loans with Terms 15 Years or Less:
Loan Amounts ≤ $726,200:
LTV ≤ 90%: Annual MIP of 0.15% for 11 years.
LTV > 90%: Annual MIP of 0.40% for the life of the loan.
Loan Amounts > $726,200:
LTV ≤ 78%: Annual MIP of 0.15% for 11 years.
LTV > 78% and ≤ 90%: Annual MIP of 0.40% for 11 years.
LTV > 90%: Annual MIP of 0.65% for the life of the loan.
Evo Mortgage Company NMLS# 1738461 Personal NMLS# 57916
For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.
Kentucky Local Home Loan Lender Services
First-Time Home Buyers Welcome FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans Conventional Loan Options Available Fast Local Decision-Making Experienced Guidance Through the Home Buying Process
If you are an individual with disabilities who needs accommodation, please contact us at 502-905-3708. If 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. These include income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals depend on underwriting guidelines, interest rates, and program guidelines. These can change without notice based on the 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/
Does FHA Restrict down payment requirements on Identity of Interest Transactions?
The 85 percent maximum LTV restriction does not apply for Kentucky FHA Loans in regards to FHA Identity-of-Interest transactions under the following circumstances:
👇👇👇
FAMILY MEMBER TRANSACTIONS• the principal residence of another family member; or a property owned by another family member in which the borrower has been a tenant for at least six months immediately predating the sales contract. A lease or other written evidence to verify occupancy is required.
BUILDER’S EMPLOYEE PURCHASE• An employee of a builder, who is not a family member, purchases one of the builder’s new houses or models as a principal residence.
CORPORATE TRANSFER • A corporation transfers an employee to another location, purchases the employee’s house, and sells the house to another employee.
TENANT PURCHASE• the current tenant purchases the property where the tenant has rented the property for at least six months immediately predating the sales contract. A lease or other written evidence to verify occupancy is required.
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
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.
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.
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.
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.
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.
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.
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
Medical Debt and Mortgage Approval for Kentucky Homebuyers
Medical debt has long been a challenge for many Americans. It particularly affects credit scores and the ability to secure a mortgage loan. Fortunately, the Consumer Financial Protection Bureau (CFPB) has finalized a new rule. This rule is set to remove medical debt from consumer credit reports. As a result, more opportunities may open up for homebuyers in Kentucky. Here’s how this change can affect your mortgage approval process. Also, understand what you need to know about medical debt and credit scores in Kentucky.
What’s Changing with Medical Debt and Credit Reports?
The CFPB has implemented a new rule to remove medical debt from credit reports. This change is significant for borrowers in Kentucky. Medical debt often lowers credit scores. It creates hurdles in the mortgage approval process.
Here’s what to expect from the new rule:
Implementation Timeline: The rule is expected to take effect in at least 60 days.
Debt Removed: Over $49 billion in medical debt will be erased from credit reporting systems.
Consumer Impact: An estimated 15+ million Americans will see their credit reports improved.
Credit Score Boost: Consumers affected by this change could see an average credit score increase of 20 points.
Mortgage Approvals: This change is anticipated to result in over 22,000 additional mortgage approvals annually across the U.S.
How Medical Debt Affects Credit Scores in Kentucky
Before this rule, unpaid medical bills often appeared on credit reports, negatively impacting credit scores. In Kentucky, this has been a common issue for homebuyers trying to secure mortgage loans.
Key Effects of Medical Debt on Credit Scores:
Lower Credit Scores: Medical debt can drag down your FICO score, making it harder to qualify for favorable loan terms.
Higher Interest Rates: A lower score often leads to higher interest rates on mortgages.
Mortgage Denials: In some cases, excessive medical debt could result in outright denials of loan applications.
Even with medical debt on your report, mortgage lenders may consider compensating factors. These factors include stable income, down payment assistance, or other positive financial attributes.
How Credit Scores Impact Mortgage Loan Approval in Kentucky
Mortgage lenders in Kentucky use credit scores as one of the primary factors to determine loan eligibility. Here’s how it works:
Credit Score Requirements by Loan Type:
FHA Loans: Minimum credit score of 580 with a 3.5% down payment. Scores as low as 500 may be considered with a 10% down payment.
Conventional Loans: Minimum credit score of 620 or higher.
VA Loans: No minimum credit score set by the VA, but most lenders prefer a score of 580-620.
USDA Loans: Minimum credit score of 640 for automatic approval, though manual underwriting is possible for lower scores.
Impact of Credit Score on Interest Rates: Higher credit scores lead to better mortgage rates. Lower scores can result in higher monthly payments.
Debt-to-Income Ratio (DTI): Lenders calculate your DTI to ensure you can manage your mortgage payments alongside other debts. Medical debt previously factored into this calculation, potentially increasing your DTI and reducing your borrowing power.
There are many ways to get the mortgage to buy your first home. The FHA is one option. If you are a first-time homebuyer in Kentucky, an FHA loan could be the perfect option for you. There are many flexible requirements, low down payments, and financial assistance options available. These are just a few of the many things that can help make homeownership more accessible.
What is an FHA Loan?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration (FHA). It’s designed for low-to-moderate-income borrowers, offering relaxed qualification standards compared to conventional loans. Here are the main advantages:
Low down payment: As little as 3.5% of the purchase price.
Lower credit score requirements: Minimum score of 500 with 10% down or 580 with 3.5% down.
Seller-paid closing costs: Sellers can contribute up to 6% of the purchase price.
Flexible qualifying criteria: Higher debt-to-income (DTI) ratios and options for non-occupant co-signers.
How to Qualify for a Kentucky FHA Loan
1. Credit Score Requirements
580 or higher: You’ll need a minimum credit score of 580 to qualify for the 3.5% down payment option.
500-579: You can still qualify with a 10% down payment, but many lenders prefer a score of 580 or higher.
Bankruptcy or Foreclosure:
Chapter 7 bankruptcy: Must be 2 years removed, with good credit since.
Chapter 13 bankruptcy: Can qualify after 1 year of on-time payments with trustee approval.
Foreclosure: Must be 3 years removed, unless there are extenuating circumstances.
2. Income and Debt-to-Income Ratio
DTI ratio: Typically, up to 45%% of your income can go toward your mortgage payment, and up to 56.9% can go toward all debts, depending on your credit and financial history.
Work history: You must have a stable employment history of at least 2 years in the same field. Recent graduates can use college transcripts as a substitute.
3. Down Payment and Gift Options
3.5% down payment: This can be gifted by a family member, employer, or nonprofit organization, drawn off a retirement account like a 401k or money saved up.
Cash deposits: Cash cannot be used as proof of funds for your down payment—only traceable sources are allowed.
4. Property Requirements
Must be your primary residence. FHA loans are not for investment properties or second homes.
Eligible property types: Single-family homes, townhomes, condos (must be approved condo development on HUD approved list), duplexes, and some manufactured homes (if affixed to a permanent foundation).
Appraisal: The property must be appraised by an FHA-approved appraiser to meet HUD standards.
5. Mortgage Insurance Premium (MIP)
Upfront MIP: 1.75% of the loan amount, which can be rolled into the loan.
Annual MIP: 0.45%-1.05% of the loan amount, depending on the down payment and loan term.
Kentucky FHA Loan Limits for 2025
In all Kentucky counties, the FHA loan limit is $524,225 for a single-family home up to $1,008,300 for a four-unit property
Why Choose an FHA Loan as a Kentucky First-Time Buyer?
Pros
Lower credit thresholds: You can qualify with a credit score as low as 500.
Smaller down payments: With as little as 3.5% down with a 580 credit score
Seller-paid costs: The seller can pay a significant portion of your closing costs.
Higher debt to income ratios
Lenient on past bankruptcies and foreclosures.
Cons
Mortgage insurance: You’ll pay MIP for the life of the loan if your down payment is less than 10%.
Property requirements: Homes must meet specific standards, which may limit your options.
a lot of sellers will not accept an FHA mortgage as a offer due to property may need work to meet FHA HUD minimum standards
Purchase price limits and only can be used for primary residence
FHA Loans vs. Conventional Loans
Feature
FHA Loan
Conventional Loan
Credit Score
500+
620+
Down Payment
3.5% (580+ credit score)
3%-20%
Mortgage Insurance
Required for life of loan
Can be removed at 20% equity
Debt-to-Income Ratio
Up to 55%
Up to 45%
Property Standards
Strict requirements
More flexibility
Other Kentucky First-Time Homebuyer Programs
1. Kentucky Housing Corporation (KHC)
Down payment assistance up to $10,000.
Tax credit programs for first-time buyers.
2. USDA Loans
Zero-down-payment option for eligible rural areas.
Minimum credit score of 620-640 preferred.
3. VA Loans
No down payment or private mortgage insurance required for eligible veterans. No minimum credit score, higher debt to income ratios allowed and no monthly mortgage insurance and low 30 year fixed rates
Need Help Getting Approved for an FHA Loan in Kentucky?
As an experienced mortgage loan officer specializing in FHA loans for Kentucky first-time homebuyers, I’m here to guide you every step of the way.
Here is a brief summary on getting a mortgage loan while in a Chapter 13 Bankruptcy:
You must have 12 payments paid into the Chapter 13 before you can apply for a mortgage loan.
The payments must be made on time for last 12 months or after 12 months if you have been in longer, so no late payments to the Chapter 13 while in it.
You have to ask permission from the courts to seek a mortgage loan. They usually grants this. I have never not seen them grant it.
You have to qualify with the new house payment along with Chapter 13 payments and other debts listed on credit report. Debt to income ratios usually center around 31 and 43% respectively, meaning the new house payment should not be more than 31% of your gross monthly income and your total house payment and debts listed on credit report along with Chapter 13 payment should not be more than 43% of your total gross monthly income.
Credit scores: Most FHA lenders I work with will want a 620 middle score. You have three fico scores from Experian, Equifax, and Transunion, and they throw out the high and low score and take middle score. For example, if you had a 598, 679, and 590 scores respectively for all three bureaus listed above, your qualifying score would be 598.
There are some FHA investors that I am set up with that will go down to 580, but I have seen in my past experiences 620 will get you a better deal and far greater chance of closing on your loan with FHA.
Down payment: For FHA loans, you will need to have at least 3.5% down payment saved up. It is extremely hard to find a no money down loan program to get you approved for a mortgage while you are in a Chapter 13 plan.
FHA and USDA are really the only two options that I know of that offer financing for a borrower with a current Chapter 13 Bankruptcy plan plan, so keep that in mind.
Conventional loan program offered by Fannie Mae will not allow a mortgage loan for someone in a Chapter 13 Bankruptcy plan.
On USDA loans, it is possible to get 100% Financing after you have paid into the plan for 12 months with a good pay history. The credit scores needed for a USDA loan approval really need to be above 640 in my past experience in getting them approved. A lot of USDA lenders will say they will do down to 620, but it is very difficult getting them approved. Best to get your scores up to increase your changes in qualifying for a USDA loan. There is not much that difference in getting your scores up to that range if you are at a 620 score now.
With USDA loans, they have income and property eligibility requirements that FHA does not have, so below is a rough run down of FHA vs USDA loan for you:
Typically, USDA-eligible properties are located in rural areas. It is a mistake, however, to think that you have to live far out in the country to qualify for a USDA loan. USDA-eligible properties are often located near urban areas.
A property’s eligibility is determined by its location with respect to USDA’s map of eligible locations. The USDA program also places limits on your household income based on median earnings in an area. If you exceed that limit, you can’t obtain a USDA loan.
The FHA, by contrast, does not place limits on household earnings. The FHA, however, does establish a maximum limit on the amount of money that can be borrowed through the program.
So if you were in a hurry to buy, after you have been in your Chapter 13 plan for 12 months, I can look at getting you approved to buy a home if you wish:
How to Get Approved for a Kentucky Mortgage While in A Chapter 13 Bankruptcy:
If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.
This web site is not the FHA, VA, USDA, HUD or any other government organization responsible for managing, insuring, regulating or issuing residential mortgage loans.
All approvals and rates are not guaranteed, and are only issued based on standard mortgage qualifying guidelines
Remember, we are even available this weekend for pre-qualifications or questions. Call our cell phone or email us. If you miss us, leave a message and we WILL call you back
Chapter 13 bankruptcy can impact your ability to qualify for various mortgage loan programs like FHA, VA, USDA, and Fannie Mae.
Chapter 13 bankruptcy can impact your ability to qualify for various mortgage loan programs like FHA, VA, USDA, and Fannie Mae. Here are the details for each program regarding waiting times, credit score requirements, down payment, and qualification criteria after a Chapter 13 bankruptcy:
FHA Loan after Chapter 13 Bankruptcy:
Waiting Time: Typically, you’ll need to wait at least two years after the discharge date of your Chapter 13 bankruptcy before applying for an FHA loan.
Credit Score: FHA loans are known for their flexibility with credit scores. While there’s no specific minimum score, a higher score (usually around 580 or above) can help you qualify for better terms.
Down Payment: The down payment requirement for an FHA loan after Chapter 13 bankruptcy is relatively low, usually starting at 3.5% of the purchase price.
Qualification with Chapter 13 Bankruptcy: To qualify, you must demonstrate that you’ve made all Chapter 13 payments on time for at least one year and receive approval from the bankruptcy court to take on new debt.
VA Loan after Chapter 13 Bankruptcy:
Waiting Time: The waiting time for a VA loan after Chapter 13 bankruptcy is generally two years from the discharge date.
Credit Score: VA loans also have flexible credit score requirements, with many lenders looking for scores around 620 or higher.
Down Payment: VA loans are known for offering zero-down financing, but eligibility depends on your military service record and whether you’ve used your VA loan benefits before.
Qualification with Chapter 13 Bankruptcy: Similar to FHA, you’ll need to demonstrate a consistent payment history under your Chapter 13 plan and receive approval from the bankruptcy court.
USDA Loan after Chapter 13 Bankruptcy:
Waiting Time: USDA loans typically require a waiting period of three years from the discharge date of your Chapter 13 bankruptcy.
Credit Score: While there’s no official minimum credit score, most lenders look for scores of 640 or higher for USDA loans.
Down Payment: USDA loans offer low to no down payment options, making them attractive for eligible borrowers in rural areas.
Qualification with Chapter 13 Bankruptcy: You’ll need to show that you’ve been making timely payments under your Chapter 13 plan for at least one year and obtain approval from the bankruptcy court.
Fannie Mae Loan after Chapter 13 Bankruptcy:
Waiting Time: Fannie Mae typically requires a waiting period of two years from the discharge date of your Chapter 13 bankruptcy.
Credit Score: Fannie Mae loans often have stricter credit score requirements compared to FHA, VA, and USDA loans. A score of around 620 or higher is generally needed.
Down Payment: Down payment requirements vary based on the type of Fannie Mae loan you apply for, but they can range from 3% to 20%.
Qualification with Chapter 13 Bankruptcy: You’ll need to demonstrate responsible financial management after bankruptcy, including rebuilding your credit and showing a stable income.
In all cases, it’s essential to work with a knowledgeable mortgage broker like Joel Lobb, who can guide you through the specific requirements and help you navigate the loan application process after a Chapter 13 bankruptcy.
Joel Lobb Mortgage Loan Officer NMLS 57916
EVO Mortgage 911 Barret Ave, Louisville, KY 40204 Company NMLS ID # 173846
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org).
Kentucky 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 $10,000 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
How to Apply
To apply for these grants, contact the respective program administrators:
For city-specific programs: Contact your local housing authority or visit the city’s official website
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, which 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.
Website: www.mylouisvillekentuckymortgage.com
Address: 911 Barret Ave., Louisville, KY 40204
First-Time Home Buyers Welcome
Kentucky FHA Mortgage Lender 