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
Pages
- 4 Things Required for a KY Mortgage Loan Approval
- Credit Scores Required For A Kentucky Mortgage Loan Approval in 2025
- Kentucky First-time Home Buyer Programs
- Kentucky FHA Mortgage Information
- Kentucky VA Mortgage Loan Information
- USDA Rural Housing Kentucky Loan Information
- Down Payment Assistance Kentucky 2025 Kentucky Housing Corporation KHC
- Zero Down Kentucky Mortgages
- First-time Home-buyers in Kentucky
- Documents Needed Mortgage Approval in Kentucky
- Free Credit Score For Mortgage Loan Approval
- Do's & Dont's before closing:
- Closing Costs Kentucky Mortgage
- Lock Kentucky Mortgage Loan Rate
- Home Inspections Kentucky Mortgage Loan
- Legal / Privacy Policy / Accessibility Statements
- Testimonials
- Mortgage Calculator
What is the Current Mortgage Insurance Requirements for a Louisville Kentucky FHA Loan?
On a KY FHA loan , you typically have to pay both an upfront and an annual mortgage insurance premium (MIP):
Upfront MIP on A Kentucky FHA Loan
Kentucky FHA loans now collect upfront MIP cost 1.75% of the home loan. For instance, if you borrow $100,000, you must pay $1,750 ($100,000 x 1.75%). It can be paid in full upfront, or added to your mortgage balance. This MIP applies no matter your loan amount or term. Most FHA buyers in Kentucky choose to finance the MIP into the loan. If you decide to pay the upfront MI out of your own funds, then you must pay all the mi premium, not just a part of it. The FHA upfront mi fee is not refundable now. This is a change whereas you use to be able to get e refund if the loan was refinanced or paid off in the first 5 years.
Annual MIP on a Kentucky FHA loan
The annual MIP or monthly mortgage insurance is divided by 12 and added to your monthly mortgage payment. The current maximum of 1.35% of the loan amount. How much and how long you have to pay the annual MIP depends on the originating date of your loan, the amount, and your loan-to-value ratio. For example, if you borrow $100,000 on a 30 year FHA loan, the monthly mortgage insurance would be
$112.00 ($100,00 x 1.35=$1350/12=$112.00 monthly mi)
The monthly mi payable to FHA is now for life of loan. This is a big change to keep in mind because FHA use to drop the monthly mi once you reached to 78% ltv of the original balance.
For Kentucky FHA loans with less than 15 year terms the monthly mortgage insurance (Annual MIP) much cheaper.
FHA is changing the duration for the collection of MIP:
o For all mortgages with an original principal LTV of 90% or less, regardless of loan term, the annual MIP will be assessed for 11 years.
o For all mortgages with an original principal LTV greater than 90%, regardless of loan term, the annual MIP will be assessed for the entire life of the loan.
Loans of 15 year terms or less with LTV 78% or less will pay an MIP amount of 45 bps.
FHA

Kentucky FHA vs Kentucky Conventional Mortgage Insurance: A Comprehensive Comparison
Kentucky Mortgage Insurance requirements for Kentucky homebuyers for FHA and Fannie Mae Conventional loans.
When it comes to Kentucky home loans, understanding the differences between Kentucky FHA and conventional mortgage insurance is crucial for potential homebuyers. This article will break down the key distinctions in terms of credit score requirements, down payments, upfront premiums, monthly premiums, duration, and cancellation policies.
Kentucky Mortgage Credit Score Requirements
Kentucky FHA Mortgage Insurance
- Minimum credit score: 580 for a 3.5% down payment
- Scores between 500-579 may qualify with a 10% down payment
Kentucky Conventional Mortgage Insurance
- Typically requires a minimum credit score of 620
- Higher scores often result in better rates and terms
Kentucky Mortgage Down Payment Requirements
FHA Mortgage Insurance
- Minimum down payment of 3.5% with a credit score of 580 or higher
- 10% down payment required for credit scores between 500-579
Conventional Mortgage Insurance
- Typically requires a minimum of 3% down payment
- Lower down payments often result in higher insurance premiums
Upfront Premiums for Kentucky Mortgage Loans
FHA Mortgage Insurance
- Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of the loan amount
- Can be financed into the loan
Conventional Mortgage Insurance
- No upfront premium required
Monthly Premiums for Kentucky Mortgage Loans
FHA Mortgage Insurance
- Annual MIP (divided into monthly payments) ranges from 0.45% to 1.05% of the loan amount, depending on the loan term and loan-to-value ratio
Conventional Mortgage Insurance
- Monthly premiums vary based on credit score, down payment, and loan-to-value ratio
- Generally range from 0.17% to 1.86% of the loan amount annually
Duration for Kentucky Mortgage Insurance
FHA Mortgage Insurance
- For loans with an LTV greater than 90% at origination, MIP lasts for the life of the loan
- For loans with an LTV of 90% or less, MIP lasts for 11 years
Conventional Mortgage Insurance
- Typically required until the loan-to-value ratio reaches 78% through normal amortization
Cancellation Policies
FHA Mortgage Insurance
- Cannot be canceled for loans originated after June 3, 2013, if the initial down payment was less than 10%
- For down payments of 10% or more, MIP can be canceled after 11 years
Conventional Mortgage Insurance
- Can be canceled when the loan-to-value ratio reaches 80%, either through home value appreciation or additional payments
- Automatically terminates when the loan balance reaches 78% of the original value
Conclusion
While FHA mortgage insurance offers more lenient credit requirements and lower down payment options, it often comes with higher costs and longer durations. Conventional mortgage insurance, though potentially more challenging to qualify for, offers more flexibility in terms of cancellation and can be less expensive in the long run for borrowers with good credit. Prospective homebuyers should carefully consider their financial situation and long-term goals when choosing between FHA and conventional loans.
Joel Lobb Mortgage Loan Officer
American Mortgage Solutions, Inc.10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364
Text/call: 502-905-3708
email: kentuckyloan@gmail.com
http://www.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).

Can a person have more than one Kentucky FHA loan?
Can You Have Two Kentucky FHA Loans at One Time?
Properties previously acquired as Investment Properties are not subject to these restrictions.
Listed below are the only circumstances in which a Borrower with an existing FHA-insured Mortgage for a Principal Residence may obtain an additional FHA-insured Mortgage on a new Principal Residence:
RELOCATION - A Borrower may be eligible to obtain another FHA-insured Mortgage without being required to sell an existing Property covered by an FHA-insured Mortgage if the Borrower is:
- relocating or has relocated for an employment-related reason; and
- establishing or has established a new Principal Residence in an area more than 100 miles from the Borrower’s current Principal Residence.
If the Borrower moves back to the original area, the Borrower is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence provided the relocation meets the two requirements above.
INCREASE IN FAMILY SIZE - A Borrower may be eligible for another house with an FHA-insured Mortgage if the Borrower provides satisfactory evidence that:
- the Borrower has had an increase in legal dependents and the Property now fails to meet family needs; and
- the Loan-to-Value (LTV) ratio on the current Principal Residence is equal to or less than 75% or is paid down to that amount, based on the outstanding Mortgage balance and a current residential appraisal.
VACATING A JOINTLY-OWNED PROPERTY - A Borrower may be eligible for another FHA-insured Mortgage if the Borrower is vacating (with no intent to return) the Principal Residence which will remain occupied by an existing co-Borrower.
NON-OCCUPYING CO-BORROWER - A non-occupying co-Borrower on an existing FHA-insured Mortgage may qualify for an FHA-insured Mortgage on a new Property to be their own Principal Residence.
For additional information see Handbook 4000.1 II.A.1.b.iii.(A) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.
Senior Loan Officer
email me at kentuckyloan@gmail.com
Fill out my form!

Mortgage Insurance Requirements for Kentucky FHA, VA, USDA and Fannie Mae Home Loans
When does
PMI stop
on Kentucky FHA,
USDA, and
Conventional Loans?
How Can I Get Rid of PMI?
Does PMI stop on my loan once I am under 80%? Not on all loans!
When does PMI stop on my loan?
Will PMI drop off? How can I remove PMI off my loan? Each type of
mortgage loan treats PMI ( Private Mortgage Insurance) differently. See below
for a quick summary!
Kentucky USDA Loans-
PMI is
for the
life of
the loan
PMI private mortgage insurance advantages & strategies for lower down payment and payment USDA has
an annual fee which is similar to PMI. The annual fee is
recalculated each year based on the
new balance of the mortgage. The annual fee is currently only .35 which began October 1, 2016. The annual fee
percentage on USDA
loans stays for the entire 30 year term but because it is based on the annual
mortgage balance. Therefore, the dollar amount decreases each year.
How to calculate monthly PMI for USDA loans: Loan amount x 1.0101% (USDA funding fee) x .0035 / 12 = monthly fee to include in the monthly mortgage payment.
Kentucky FHA Loan PMI often continues for
the life of the
loan, but
depends!
FHA has an
annual fee
but the
percentage varies depending on
the LTV
and the
loan term. The monthly amount of PMI is
recalculated each year based on the
new balance of the
mortgage and
the PMI
percentage.
The
length of
time that FHA PMI
stays on
the loan varies depending on the
loan term and LTV
as shown below:
Loans over 90% LTV
or more will pay
the annual PMI for
the complete term –
On a
purchase, this means less than 10% down
Loans equal to or
less than 90% LTV
will pay
the annual PMI for
11 years – Purchases over 10%
down payment
Loan terms
greater than
15 years
< $625,500: effective 1/26/15
> 95% LTV =.85 PMI
-< 95% LTV =.80 PMI
Loan terms 15 years or less
<
$625,500:
-< 90% LTV =.45 PMI
> 90% LTV =.70 PMI
Even though FHA PMI currently
continues for the life of the loan with less than 10% down payment, it is still
a great loan for
buyers. It
offers low
down payment, very competitive rates, and
flexibility on
many guidelines.
Kentucky VA home loans DO NOT have monthly PMI
VA loans do
not have monthly PMI
on any
of the
terms so
you don’t have to
worry about when it
continues. Like all government loans, VA does have a
funding fee
which is
an up-front fee that is customarily financed on
top
of the loan amount and
required by
the VA.
Although VA
does allow the Veteran or even the seller pay this fee! Additionally, qualified, disabled Veterans may be exempt from the VA funding fee. Ask about the requirements re: the waiver of
the funding fee.
Kentucky Fannie Mae or Freddie Mac
conventional loans have PMI
when the
LTV is
greater than 80% with either primary, second homes, or
investment properties. To cancel PMI on
a conventional loan, the
following typically needs to be
met. Here are some of the details to have
PMI stop as clarified by the Consumer Financial Protection Bureau in August 2015.
Borrower Requested PMI Cancellation: Once balance is
paid to
under 80%
of the
original price, the borrower may
request that PMI be
cancelled on
the cancellation date. The
cancellation date means either the date when the principal balance is
first scheduled to reach 80% of the original value (lower of purchase price or
appraised value) for the property or
date on which the principal balance reaches 80% of the original value based on actual payments. The
borrower may
make extra payments to
move the
cancellation date earlier.
Automatic PMI Cancellation: Once balance is
paid to
under 78%
of the
original price, the lender must cancel the PMI on the termination
date. The termination date is defined as the
date which the principal balance is first scheduled to
reach 78%
of the
original value for the
property. Although before cancelling PMI, the
loan must be current.
“Good payment history” means no
payments 60
or more days past due within 2 years and no
payments 30
or more days past due within 1 year of the later of the cancellation date or the
date you submit a request for cancellation.
** PMI could be cancelled on a conventional mortgage if the following conditions are satisfied:
You
submit a written
request for cancellation
Borrower must be current on the
loan.
You are current on
the payments required by
your loan and if
requested and
at the
borrower’s expense, evidence satisfactory to
the note holder that the value of the
property has
not declined below it’s original value (value at the time of the
mortgage initiation), and that there are no subordinate liens on the property
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).
