FHA loans are a popular option for Kentucky home buyers' with bad credit, but there are certain requirements you'll need to meet to qualify. Here's a quick overview:
Credit score:
* The minimum credit score for an FHA loan in Kentucky is 500 to 580 depending on your credit score and down payment. However, some lenders may accept scores as low as 500 with a larger down payment (10% instead of 3.5%).
Debt-to-income ratio:
* Your debt-to-income ratio (DTI) is your monthly debt payments divided by your gross monthly income. Most lenders prefer a DTI below 50%, but some may allow up to 56.9%.
Down payment:
* The minimum down payment for an FHA loan is 3.5% of the purchase price.
Employment and income:
* You'll need to have steady employment for at least two years and sufficient income to cover your monthly mortgage payment.
* You'll also need to meet other requirements, such as having a valid Social Security number and homeowner's insurance.
If you have bad credit and are considering an FHA loan in Kentucky, it's important to shop around and compare rates from different lenders. You may also want to consider talking to a credit counselor to help improve your credit score before you apply.
Joel Lobb Mortgage Loan Officer
American Mortgage Solutions, Inc.10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
http://www.mylouisvillekentuckymortgage.com/
NMLS ID# 57916, (www.nmlsconsumeraccess.org).
