If you’ve been considering buying a new home in Kentucky , you’ve probably thought about financing!
One of the first things you should do is connect with a Kentucky mortgage lender to find out what loans you're able to qualify for.
To feel a little more prepared for that conversation, let's talk about four of the most common Kentucky mortgages for Kentucky Homebuyers
One of the first things you should do is connect with a Kentucky mortgage lender to find out what loans you're able to qualify for.
To feel a little more prepared for that conversation, let's talk about four of the most common Kentucky mortgages for Kentucky Homebuyers
1. Kentucky FHA Loans
Great for first-time homebuyers
Low down payment and closing costs
Easier to qualify for
Credit requirement: 580+ score with 3.5% down payment or 500 score with 10% down
Down payment: 3.5% minimum on most loans. Credit overlays with most lenders now want a 620 credit score nowadays.
2. Kentucky VA Loans
For service members, veterans, and select military spouses
No mortgage insurance and low closing costs
Government guarantee
Credit requirement: 620+, even though VA does not have a minimum score most VA lenders will want a 620 credit score or higher.
Down payment: 0% down
3. Kentucky USDA Loans
Great for low-to-medium income households
Has certain income and area requirements
Lower PMI than FHA Loans
Credit requirement: 640+ usually required, but on paper, USDA has no minimum credit score most lenders will want a 640 score to get an automated GUS approval.
Down payment: 0% down
4. Kentucky Conventional Loans
Great for buyers with good credit, a steady income, and low debt to income ratio (<45% dti
More flexibility and fixed rate
Diverse options for a down payment
Credit requirement: 620+, but most approvals require a 720 credit score or higher and pmi is based on your credit score and down payment, unlike Govt mortgage insurance programs like FHA, VA, USDA everybody pays the same regardless of credit score or down payment.
Down payment: 5% down or 3% on their affordable home loan options through Home Possible or Home Affordable Program.
Joel Lobb
Mortgage Loan Officer
Mortgage Loan Officer
Individual NMLS ID #57916
American Mortgage Solutions, Inc.
fax: 502-327-9119
email: kentuckyloan@gmail.com
email: kentuckyloan@gmail.com