Kentucky First Time Home Buyer Loan Options
How to get approved for a mortgage in Kentucky. Securing a home loan requires specific financial steps and knowledge of programs available to first-time buyers. Here's a roadmap to navigate the process:
1. Understand your eligibility:
* Credit score: Aim for a score of 640 or higher for conventional loans, though government-backed options like FHA loans may accept scores as low as 580.
* Debt-to-income ratio (DTI): Keep your DTI below 45%, meaning your monthly debt payments shouldn't exceed 45% of your gross income.
* Down payment: While 20% is ideal, Kentucky offers programs with as low as 3% down.
2. Explore loan options:
* Conventional loans: Offer competitive rates and terms, but require higher credit scores and down payments.
* FHA loans: Insured by the Federal Housing Administration, these loans allow lower credit scores and down payments but come with mortgage insurance.
* USDA loans: For rural properties, these loans require no down payment for eligible borrowers.
* VA loans: For veterans and eligible service members, these loans offer competitive rates, no down payment, and no mortgage insurance.
3. Get pre-approved:
* A pre-approval letter shows sellers you're a serious buyer and strengthens your offer.
* It also helps you determine your budget and avoid looking at homes outside your price range.
4. Seek down payment assistance:
* Kentucky offers various programs to help first-time buyers with down payments and closing costs.
* Explore options like the Kentucky Housing Corporation's KHC Conventional Preferred or KHC Conventional Preferred Plus 80 programs.
5. Work with a qualified lender and real estate agent:
* An experienced lender can guide you through the loan process and recommend suitable options.
* A real estate agent can help you find homes that meet your needs and negotiate the purchase.
Remember, buying a home is a significant financial decision. Research thoroughly, consider your long-term goals, and seek professional guidance throughout the process.
Joel Lobb Mortgage Loan OfficerAmerican 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.mylouisvillekentuckymortga...
NMLS 57916 | Company NMLS #1364/MB73346135166/MBR1574
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).