2025 Kentucky VA Mortgage Guidelines

Things to know about getting a VA Mortgage Loan in Kentucky in 2025

Are you a veteran, active-duty service member, or surviving spouse looking to purchase a home in Kentucky?

 VA mortgage loans are one of the best financing options available for military personnel. With no down payment requirements, competitive interest rates, and flexible credit guidelines, these loans are designed to make homeownership more accessible.

Here’s everything you need to know about qualifying for a Kentucky VA mortgage loan in 2025:

1. No Loan Limits on VA Mortgages in Kentucky

One of the biggest advantages of a Kentucky VA loan is that there’s no limit on the loan amount you can borrow if you have full entitlement. However, keep in mind that the VA guarantees a portion of the loan, which may influence how much lenders are willing to lend without a down payment.

For high-cost areas in Kentucky, the loan amount may vary based on county-specific limits. Be sure to check with your lender or the VA's official website for updated limits in 2025.

2. VA Loans Are for Primary Residences Only

A Kentucky VA mortgage loan must be used to purchase or refinance your primary residence. Vacation homes, second homes, and investment properties are not eligible. However, VA eligible properties include:

Single-family homes
Multi-family homes (up to four units)
Condominiums approved by the VA
Manufactured or mobile homes on a permanent foundation that have only been moved once (from the factory or dealership to the land).

3. Surviving Spouses May Qualify

VA loans aren’t just for veterans and active-duty service members. Certain Kentucky VA surviving spouses may also be eligible. Here are some situations where eligibility applies:

The veteran was killed in action or died from a service-connected disability.
The spouse has not remarried (or remarried on or after age 57 and after December 16, 2003).
The spouse of a veteran who is missing in action or a prisoner of war.
The spouse of a totally disabled veteran whose death was not related to their disability.

4. Certificate of Eligibility (COE) Is Required

To qualify for a Kentucky VA mortgage loan, borrowers must obtain a Certificate of Eligibility (COE) from the VA. This document proves you meet the eligibility criteria for a VA loan. Here’s what you’ll need to get your COE:

Veterans: DD Form 214 (showing character of service and reason for separation).
Active-duty service members: A statement of service signed by your commander or personnel officer.
Surviving spouses: VA Form 26-1817 and the veteran’s DD Form 214, if available.
You can apply for your COE online, via mail, or through your lender.

5. Credit Score Requirements

While the VA itself does not set a minimum credit score, most lenders in Kentucky require a credit score of at least 620. Some lenders may approve scores as low as 500, but this often comes with stricter underwriting requirements and may delay the approval process.

To increase your chances of approval, it’s best to improve your credit score to 580 or higher. This will make the underwriting process smoother, especially if the automated underwriting system (AUS) is used.

6. VA Loans After Bankruptcy or Foreclosure

VA loans provide flexibility for borrowers who have faced financial difficulties. Here’s how you can qualify after a bankruptcy or foreclosure:

Chapter 7 Bankruptcy: Eligible 2 years after discharge.
Chapter 13 Bankruptcy: Eligible 1 year after filing, with on-time payments.
Foreclosure: Eligible 2 years after the foreclosure is finalized.
Short Sale:  Treated like a foreclosures and 2 years needed Some lenders may not require a waiting period.

7. Residual Income Requirement

VA loans are unique because they require borrowers to meet residual income requirements, ensuring you have enough money left over each month after paying your bills. This includes:

Mortgage payment (including taxes and insurance)
Credit card and loan payments
Utilities and other fixed expenses
Federal, state, and local taxes
The amount of residual income required depends on your family size and location. For example, in Kentucky (Southern region), a family of five needs to have $1,039 in residual income to qualify for a VA loan.

8. Key Benefits of Kentucky VA Loans

No Down Payment: You can finance 100% of the home’s purchase price.
No Private Mortgage Insurance (PMI): This can save you hundreds of dollars each month.
Competitive Interest Rates: VA loans typically have lower rates than conventional loans.
Flexible Credit Guidelines: More lenient than conventional and FHA loans.
No Loan Limits: Borrow as much as your lender approves based on your financial profile.

9. How to Apply for a Kentucky VA Mortgage Loan in 2025

Follow these steps to apply for your VA loan:

Check Your Eligibility: Obtain your COE through the VA or your lender.
Improve Your Credit: Aim for a credit score of 580 or higher. '
Find a VA-Approved Lender: Work with an experienced lender familiar with VA loans in Kentucky.
Get Pre-Approved: Provide your lender with income, asset, and debt information to secure pre-approval.
Choose Your Home: Select a property that meets VA guidelines (primary residence, approved property type, permanent foundation, etc.).
Close on Your Loan: Finalize your loan with your lender and move into your new home!

As a veteran myself (19K Tanker) and a mortgage professional, I’ve helped over 100 veterans secure VA loans in Kentucky. Whether you’re buying your first home, upgrading, or refinancing, I’m here to make the process seamless.

Have questions about qualifying for a Kentucky VA mortgage loan in 2025? Call, text, or email me today!

Mobile Home Loan Guidelines for Kentucky: FHA, VA, USDA, and Conventional Loans

Manufactured home properties are often more affordable than standard single-family homes, making them an attractive option for many prospective buyers. Whether you're a first-time homebuyer or looking to refinance, there are financing options for manufactured homes through FHA, VA, USDA, and Conventional loan programs.

Important Guidelines for Manufactured Home Mortgages in Kentucky

Before diving into specific loan programs, it's essential to understand two critical requirements that apply to almost all manufactured home loans in Kentucky:

Permanent Foundation: The manufactured or mobile home must be on a permanent foundation. This means the home must be permanently affixed to the land with proper structural supports, meeting local building codes. Read more here what constitutes a permanent foundation ➡️https://www.huduser.gov/portal/Publications/PDF/foundation_guide_complete.pdf

Single Relocation: The home must have only been moved once, from the factory or dealership to the permanent site. Homes that have been relocated more than once typically do not qualify for financing.

Keeping these two key factors in mind will significantly improve your chances of securing a mortgage loan for a manufactured home.

Here's a detailed look at the requirements and guidelines for each program:

FHA Manufactured Home Loans

Minimum Credit Score: 500 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase or Rate-Term up to 96.5% LTV; Cash Out up to 80% LTV

Manual Underwrites: Allowed

Additional Requirements:

Real Property Conversion required at closing

Home must be your primary residence

Property cannot have been previously installed or occupied at another site

Age of Home: Home must have been constructed after June 15, 1976

USDA Manufactured Home Loans

Minimum Credit Score: 550 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase up to 100% LTV

Manual Underwrites: Required; Maximum Debt-to-Income (DTI) ratio is 29/41

Additional Requirements:

Home must be located in a USDA-eligible rural area

Real Property Conversion required at closing

Home must be a 2006 model or newer

Property cannot have been previously installed or occupied at another site

Must be your primary residence 

You cannot do not a mobile home loan on a USDA loan in Kentucky --Only available  in select pilot States and Kentucky is not in that program

VA Manufactured Home Loans

Minimum Credit Score: 500 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase or Rate-Term up to 100% LTV; Cash Out up to 80% LTV

Manual Underwrites: Allowed

Additional Requirements:

Real Property Conversion required at closing

Property can be previously installed or occupied at another site

Must be your primary residence

Age of Home: Home must have been constructed after June 15, 1976

Conventional Manufactured Home Loans

Minimum Credit Score: 620 qualifying FICO score

Eligible Property Types: Singlewide, Doublewide, and Triplewide units

Loan-to-Value (LTV): Purchase or Rate-Term up to 95% LTV; Cash Out up to 65% LTV

Additional Requirements:

Real Property Conversion required at closing

Home must have been constructed after June 15, 1976

Property cannot have been previously installed or occupied at another site

Primary and second homes allowed

Why Choose a Manufactured Home Loan?

Manufactured homes offer a cost-effective alternative to traditional housing, with modern designs and layouts that meet the needs of today's homeowners. With these flexible loan options, Kentucky homebuyers have access to financing programs tailored to manufactured housing.

Whether you’re looking for a low credit score option, zero money down, or a loan for a primary or secondary residence, these programs cater to a variety of financial situations.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Credit Scores Required For A Kentucky Mortgage Loan Approval

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

---

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

6 Tips to Boost Your Credit Score for Kentucky Mortgage Loans (FHA, VA, USDA, KHC)

6 Tips to Boost Your Credit Score for Kentucky Mortgage Loans (FHA, VA, USDA, KHC)

If you’re looking to buy a home in Kentucky, having a solid credit score is essential for qualifying for popular mortgage programs like FHA, VA, USDA, or KHC loans. Here are six actionable tips to improve your credit score and increase your chances of getting approved for your dream home loan.

1. Pay Your Monthly Bills on Time

Here are six tips for improving your credit score for a fresh financial start 

1. Pay Your Monthly Bills on Time
Paying monthly bills is a necessary chore that has a definite effect on your credit score. According to the FICO scoring model, your payments account for as much as 35 percent of your total score. Create reminders for due dates or establish a calendar for yourself to ensure you get everything paid on time.

2. Reduce Your Debts
Got credit card debt? Start paying it off now. Part of your credit score is based on the amount of available credit you have, known as your credit utilization ratio. So if you're carrying high balances, you'll want to lower them as soon as possible. Create a personal budget with a goal of reducing your spending so that it's lower than your income. Then, use any monthly surplus for your credit card debts until they're gone for good.

3. Limit Credit Inquiries
Looking for a new apartment? What about a mortgage? In either situation, try and group your applications together as much as possible. Applications for new lines of credit will generate a "hard pull" on your credit, and having too many of them in a short period of time can lower your score. However, credit reporting agencies usually consider a group of applications within a short period of time as one pull, as long as they're in the same category.

Similarly, limit yourself to opening up no more than one or two credit cards per year, which also generate hard pulls. Even if you get a ton of offers in the mail for stellar sign-up bonuses, they're likely to be offset by the damage to your credit. FICO reports that new credit and credit inquiries account for 10 percent of your total score.

4. Don't Cancel Old Cards
Have a card you don't use anymore? Don't close it. This can negatively affect your score as it lowers your amount of available credit. Instead, use it about once per month and don't forget to pay the bills in full, and on time.

5. Request Credit Limit Increase
If you only have one card and you're constantly approaching your spending limit, call the bank and ask for an increase in your credit line. This will raise the amount of available credit, which will eventually improve your score.

6. Take Care of Late Payments Before They Hit Your Score
If you do happen to miss a payment, contact the card issuer immediately. If you have good history built up, the company may agree to not report your late payment. Even if you can't avoid a late-payment fee, be sure to get your account up to date as soon as possible so you can limit the damage.
Your credit score is yours to own. It reflects your financial history and helps lenders predict how you will manage your finances in the future. Due to the lingering effects of credit, you don't want to waste any time to improve your credit.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

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). Mortgage loans only offered in Kentucky.

Legal Separation vs. Divorce Decree for a Kentucky Mortgage Loan.

Did you know that a Kentucky  legal separation agreement may be substituted for a divorce decree for a Kentucky Mortgage Loan?

In most cases, a legal separation agreement can be substituted for a divorce decree for any circumstance where a divorce decree is required.  The agreement must:

• be a legal separation, 
• include the same information that would be obtained from a divorce decree,
• be recorded, if required by law.  (See Kentucky State Specific Requirements for Divorce and Legal Separation for Kentucky Mortgage Loans in Fairway guidelines)

If a borrower is not legally separated, then they are considered married, and the loan will be underwritten as such.  In cases where the there is no separation agreement, the 1003 should

Property in a Divorce

Click on a topic below:

• What kinds of things are property?
• What happens to our property in a divorce?
• What is the difference between marital and non-marital property?
• Does the court divide marital property 50-50?
• What if I do not agree with what my spouse says is non-marital property?
• What about property from after the separation, but before the divorce is final?
• Will I get half of each asset?
• How do we know the value of our home?
• Will the court allow us to divide our property the way we want to?

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What kinds of things are property?

Property is anything you own. It includes:

• Real property, such as buildings and land, and
• Personal property, such as money in cash or in a financial institution, furniture, jewelry, automobiles, etc.

What happens to our property in a divorce?

It depends. If it is property that you acquired during your marriage, called marital property, the court will try to divide the value of the marital property between you equally.

If it is your non-marital property, you will continue to be the legal owner.

What is the difference between marital and non-marital property?

Marital property is property that:

• Was obtained during your marriage (even if the title is in only one of your names),
• Was given to both of you as a gift, or
• You inherited together.

Non-marital property is property that:

• You already had when you got married, or
• You inherited or received as a gift individually. (If your spouse says the property was given to both of you, you will have to prove that it was given only to you.)

Does the court divide marital property 50-50?

Usually, but not always. The court may give one spouse more marital property than the other if it thinks that it would be fair based on the facts of your case.

To decide, the court will consider many factors, including:

• Each spouse's financial situation, including income, spousal maintenance, and non-marital property,
• Each spouse's contribution to their marital property,
• Which spouse will stay in the marital home, if there are children, and
• If a spouse improperly destroyed marital property after you separated.

What if I do not agree with what my spouse says is non-marital property?

Either spouse can ask for a court hearing to decide what property is marital, and what is non-marital.

What about property from after the separation, but before the divorce is final?

In most cases, property or debts acquired after the established date of separation belongs to the person that got it.

Will I get half of each asset?

Probably not. The court will look at the value of all your assets. Often, one spouse keeps the home, and the other gets other property, like cars, bank accounts, or other assets. Or the house could be sold, and the spouses would split any profit. The court tries to make the total value of all assets that each spouse gets equal, not cut the specific assets in half.

How do we know the value of our home?

It depends on the equity, value, and other things, like market conditions. The court will order an appraisal if you and your spouse cannot agree on the value. This can be complicated. If you own real property or a business, it's best to talk to a lawyer.

Will the court allow us to divide our property the way we want to?

Yes. If your agreement is fair, the court will probably approve it. If your agreement is not 50-50, you should each explain to the court why you agreed to an uneven split.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: How to get a Kentucky mortgage loan with bad credi...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: How to get a Kentucky mortgage loan with bad credi...:   To get a Kentucky mortgage loan with bad credit through FHA, VA, USDA, or the Kentucky Housing Corporation (KHC), you'll need to take ...

Kentucky Housing Corporation (KHC) Down Payment Assistance Program of $10,000 2025

Program Highlights

1. Regular DAP

   • Maximum Purchase Price: Up to $510,939 with Secondary Market or Mortgage Revenue Bond (MRB) income limits.
   • Loan Amount: Up to $10,000, provided in $100 increments.
   • Repayment Terms:
     • 10-year term.
     • Fixed interest rate of 3.75%.

2. Eligibility:

   • Available to all recipients of a KHC first-mortgage loan.

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For more information or to apply, contact your KHC-approved lender. They can assist you with the application process and answer any questions about your eligibility.

Kentucky Housing Corporation (KHC) Down Payment Assistance Program (DAP)

The Kentucky Housing Corporation offers a program designed to help homebuyers overcome the financial challenges of down payments, closing costs, and prepaid expenses.

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Program Details for 2025

• Loan Amount:

  • Up to $10,000 in assistance, provided in $100 increments.

• Repayment Terms:

  • 10-year term at a fixed interest rate of 3.75%.

• Purchase Price Limit:

  • Homes priced up to $510,939.

• Eligibility:

  • Assistance is available to all KHC first-mortgage loan recipients.
  • Income limits apply based on the Secondary Market or Mortgage Revenue Bond (MRB) guidelines.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

---

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky Homebuyers in 2025: Increased Loan Limits for Conventional and FHA Mortgages

New 2025 Loan Limits in Kentucky for Conventional and FHA Mortgage Loans

The Federal Housing Finance Agency (FHFA) has announced increased loan limits for 2025, providing more opportunities for homebuyers in Kentucky. These higher limits apply to both conventional loans acquired by Kentucky Fannie Mae and Freddie Mac,Fannie Mae and Freddie Mac, as well as Kentucky FHA loans, making homeownership more accessible—especially for first-time homebuyers.

Starting January 1, 2025, the FHFA maximum conforming loan limit for a single-unit property will increase to $806,500, reflecting a 5.21% increase from 2024. This adjustment allows Kentucky homebuyers to borrow more under the conforming loan limit without moving into jumbo loan territory.

Simultaneously, the Federal Housing Administration (FHA) has also raised its loan limits, providing even more options for those seeking low down payment mortgage solutions.

Property Type Conventional Loan Limit (FHFA) FHA Loan Limit

1-Unit $806,500         $524,225

2-Unit $1,032,650 $671,200

3-Unit $1,248,150 $811,275

4-Unit $1,551,250 $1,008,300

These increases give Kentucky buyers greater flexibility to purchase or refinance homes, whether using a conventional loan or an FHA loan.

Key Dates to Remember

The new loan limits go into effect January 1, 2025.

Borrowers applying for loans that close in 2024 may still take advantage of the new limits as long as the loan closes on or after January 1, 2025.

Take Advantage of the New Limits

With these increased loan limits, Kentucky homebuyers can explore more options for financing their dream homes in 2025. Whether you’re interested in a conventional loan backed by Fannie Mae or Freddie Mac or an FHA mortgage with its low down payment and credit score flexibility, now is the time to act.

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1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

---

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.