I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
* 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%.
Credit score: Low credit scores (generally below 620) are a major factor in loan denials. Having a history of late payments, delinquencies, or collections can negatively impact your score.
Debt-to-income ratio (DTI): This ratio compares your monthly debt payments to your gross income. A high DTI (generally above 50%) indicates you have a lot of debt compared to your income, making it harder to afford a mortgage payment.
Employment history: Lenders prefer borrowers with stable employment and income. Recent job changes, gaps in employment, or insufficient income documentation can raise concerns.
Down payment: A smaller down payment increases the loan amount and loan-to-value ratio (LTV), making the loan riskier for lenders. In Kentucky, FHA loans require a minimum 3.5% down payment, while conventional loans typically require 20%.
Insufficient assets: While not always a disqualifier, having limited savings or assets can weaken your application by reducing your financial cushion.
Property-related reasons:
Appraisal value: If the appraised value of the property is lower than the purchase price, it creates a high LTV, making the loan riskier for lenders.
Property condition: Major repairs or structural issues with the property could require significant investment before closing, which lenders may not be comfortable with.
Location: Properties in floodplains or other high-risk areas may be ineligible for certain loan types or require additional insurance.
Kentucky first-time homebuyers: Learn how to check your FICO score for FHA, VA, USDA, and KHC loans and improve your chances of mortgage approval.
Why Your FICO Score Matters for Your Kentucky Home Loan
If you’re buying your first home in Kentucky, your FICO® credit score is one of the most important factors in getting approved for a mortgage. Lenders use your score to determine:
Whether you qualify for a loan
How much you can borrow
The interest rate you’ll pay
This applies to all common Kentucky loan programs, including FHA, VA, USDA Rural Housing, and Kentucky Housing Corporation (KHC) loans.
Compliance Note: This article is for educational purposes and is not financial advice. Loan approval depends on credit, income, debt, and program eligibility. Always consult a licensed Kentucky mortgage professional before applying.
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