Pages

▼

Key ways to get your best rate possible on your Kentucky Home loan

 Kentucky Mortgage Rates

 Key ways to get your best rate possible on your Kentucky Home loan

Historically speaking, current mortgage rates are pretty average.

But considering all the other factors involved in our post-pandemic housing market, many people are struggling to afford a home.

 Here are the top ways you can get your best mortgage rate, even in a tough market:

  • Improve your credit score by paying down your debt and making all payments on time
  • Consider all your loan options, including your term length and fixed rate vs. adjustable-rate mortgages
  • Shop around for a lender and compare rates and terms

These key factors can mean the difference in paying thousands of dollars extra over the life of your loan.

It all depends on your unique situation.

Best loan options for Kentucky Mortgage borrowers in today’s market

  • Conventional purchase — best for borrowers with a high credit score and at least 5% down payment

  • FHA loan — best for first-time borrowers with more flexible credit requirements with lower credtit scores 500 to 580- 

  • VA loan — potential for zero down for active-duty military personnel, veterans, and eligible surviving spouses

  • USDA loan — potential for zero down for for borrowers in rural areas who have moderate to low incomes

  • Bank statement loan — for self-employed individuals

  • KHC Loan --Down payment Assistance Grant for Zero Down Home Loans

 Ask your lender about 2-1 buydowns and adjustable-rate mortgages for methods to get a lower initial rate.

 How much home can you afford?

Let’s demystify the mortgage process.

Here are three common models lenders use to calculate how much of your income should go toward your monthly mortgage payment:

  • 28/36 rule: Your max monthly mortgage payment can’t exceed 28% of your gross monthly income, and your mortgage plus other monthly debts cannot exceed 36%
While this is a good starting point, this standard is nearly impossible to hit in many housing markets. Most borrowers today have "debt-to-income ratios" closer to 40-50% of their gross income.

Beyond your debts, lenders will evaluate your income, employment history, and credit score.

That's how to get the lowest mortgage rate possible for your borrower scenario.

What about getting the lowest monthly mortgage payment possible?

  • Boost your credit score
  • Make a larger down payment
  • Choose a more affordable home
  • Shop around for the best mortgage rate
  • 2-1 mortgage buy down with points pay to lower rate 
  • Mortgage Revenue Bonds Programs Kentucky Housing Corp.
  • Shared Appreciated Mortgage (SAM) in Kentucky



Discounted Mortgage Rate 5.5% 30 year fixed rate loan. ***


 Exciting News! KHC is thrilled to reintroduce its MRB program, now featuring an interest rate of 5.5%!

BONUS!!! Add $10,000 in down payment assistance to this amazing program for a power move!
Eligibility requirements for the programs do apply, so reach out to us today for more information. Call or Message us now and seize the moment!

***Subject to Credit Qualifying Criteria and subject to change.

(1) The above rate quote has the following assumptions: $200,000 purchase; $194,000 loan amount; 0% down payment; 620 FICO credit score; property is SFR; borrower has sufficient income and assets to qualify; Tax and insurance impounds required; Estimated closing costs affecting the 6.375% APR include all standard fees. Monthly payment without taxes and insurance is $1,481.00. Rate and Annual Percentage Rate shown as of 11/01/2024, subject to change.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916




Text/call: 502-905-3708