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
4 Things Every Borrower Needs to Know to Get Approved for a Mortgage Loa...
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Ultimate Guide for Kentucky First-Time Homebuyers: Steps, Loan Programs & How to Apply
Introduction: How to Buy Your First Home in Kentucky
Are you a first-time homebuyer in Kentucky looking to purchase your dream home? Buying a house is one of the biggest financial decisions you'll ever make. Understanding the steps involved can help you feel confident throughout the process.
- In this guide, we'll cover:
- How much house you can afford
- Loan programs for first-time homebuyers in Kentucky
- Credit score requirements
- Down payment & closing costs
- Mortgage pre-approval process
- Required documents & how to apply
By the end of this article, you'll have a clear roadway to homeownership in Kentucky!
Step 1: Determine How Much House You Can Afford
One of the first steps to buying a home is understanding your budget. Mortgage lenders suggest you should consider a price range. It is recommended not to buy a home that exceeds 30% to 45% of your gross monthly income. For instance, if you earn $3000 gross a month, your maximum house payment should be about $1350 a month. This includes PITI.
Use a mortgage calculator to estimate your monthly payment, including property taxes, homeowners insurance, and mortgage insurance.
-
Kentucky Mortgage Calculator
Kentucky Mortgage Calculator
Step 2: Check Your Credit Score
Your credit score plays a crucial role in determining your mortgage eligibility and interest rate. The mortgage scores used by lenders are different than the ones usually seen for borrowers. Be aware of this.
Here’s how you can improve your score before applying
Step 2: Check Your Credit Score
Your credit score plays a crucial role in determining your mortgage eligibility and interest rate. Here’s how you can improve your score before applying:
✔️ Pay down credit card balances
✔️ Make all payments on time
✔️ Avoid applying for new credit cards or loans
✔️ Don’t make big purchases before getting approved
✔️ If possible, avoid changing jobs before closing on your home
Pull your own credit report from www.annualcreditreport.com to see what is on your credit report from Experian, Equifax, and Transunion. You will not be able to get your mortgage fico scores but you can see what creditors are reporting before you apply to correct any errors
The credit scores used by mortgage lenders are different than what the consumers see, so be aware of that.
We can pull your fico mortgage scores for free, no costs to you, as far as the application process. If you want to obtain your own mortgage fico scores
While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage:
- FICO® Score 2 (Experian)
- FICO® Score 5 (Equifax)
- FICO® Score 4 (TransUnion)
Credit Score Requirements for Kentucky First-Time Homebuyers
Step 3: Save for a Down Payment & Closing Costs
How Much Do You Need for a Down Payment?
💰 FHA Loan: 3.5% of the purchase price
💰 Conventional Loan: 3-20% (Varies)
💰 VA & USDA Loans and KHC Down payment Assistance Loans : No down payment required
Other Expenses to Consider
- Earnest Money Deposit: Shows sellers you’re serious. This is known as a good faith deposit. Typically, it's $500 at the minimum. However, more serious buyers show a bigger commitment by putting down $1000 or more.
- Closing Costs: Typically 2-5% of the loan amount
- Home Inspection Costs: $300-$500
- Appraisal Costs: $550 to $700 range
Step 4: Get Pre-Approved for a Mortgage in Kentucky
🔹 What is Mortgage Pre-Approval?
Being pre-approved means a lender has reviewed your financial information and determined how much you can borrow. This makes you a stronger buyer in the eyes of sellers.
✅ To Get Pre-Approved, You’ll Need the following documents plus more:
- W2’s from the past 2 years for 2023 and 2024
- Last months of pay stubs
- Bank statements (Last 2 months)
- 2 years of tax returns and all schedules
- Divorce decree (if applicable)
- Additional income documents for other income possible
- Looking for stability in the income. Waited over the last two years and the next 3 years.
- Two forms of ID> Driver's License and card
Step 5: Choose the Right Mortgage Loan in Kentucky
Types of Mortgage Loans Available
| Loan Type | Who Qualifies? | Down Payment | Upfront Mortgage Insurance | Monthly Mortgage Insurance | Min. Credit Score |
|---|---|---|---|---|---|
| VA Loan | Veterans & eligible service members | None | None | None | 580 |
| USDA Loan | Rural homebuyers | None | 2% of loan amount (can roll in) | Required | 640 |
| FHA Loan | Buyers meeting income/credit limits | 3.5% | 1.75% of loan amount | Required | 580-640 |
| 203K Loan | Buyers renovating a home | 3.5% | 1.75% of loan amount | Required | 580-640 |
| Conventional 97 | First-time homebuyers | 3% | None | Required | 620 |
| Select Smart Plus | Buyers meeting lender’s requirements | 3-20% | None | Required | 620 |
Step 6: Submit Your Mortgage Application
- Once you’ve chosen the right loan and been pre-approved, you’ll submit a formal mortgage application with your lender.
- The Lender Will Verify:
✅ Your credit score and credit bureau-Three scores are pulled from Experian, Equifax and Experian
✅ Income & employment history for last two years
✅ Bank statements for last two months & tax returns for last two years
✅ Property appraisal - Title search
Step 7: Close on Your New Home! 🎉
Your loan is approved. All final paperwork is completed. You’ll attend the closing meeting to sign documents and get the keys to your new home!
🏡 Congratulations! You’re now a Kentucky homeowner!
Ready to Buy a Home in Kentucky? Get Expert Help Today!
Buying your first home is a big step, but you don’t have to do it alone. Work with a trusted mortgage broker like Joel Lobb to get expert guidance, personalized loan options, and fast approvals.
📩 Contact Joel Lobb Today for a Free Consultation!
📞 Call or Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com
🔹 Get Pre-Approved Now & Start House Hunting!
Final Thoughts
If you're a first-time homebuyer in Kentucky, understanding the steps involved is crucial. Being aware of the loan programs available will help you make a smart financial decision.
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 Local Home Loan Lender Services
First-Time Home Buyers Welcome FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans Conventional Loan Options Available Fast Local Decision-Making Experienced Guidance Through the Home Buying Process
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Grants for First Time Home Buyers in Kentucky
$20,000 Grant Money Available for Kentucky Home Buyers – First-Time Home Buyers Assistance!
Are you a first-time home buyer in Kentucky looking for financial assistance? The Federal Home Loan Bank has created a special fund to help low-to-moderate income families achieve homeownership. This $20,000 grant is designed to assist home buyers with down payments and closing costs, making it easier to secure a home without the burden of large upfront expenses.
Grant Money for First-Time Home Buyers in Kentucky
The Federal Home Loan Bank grant is an excellent opportunity for Kentucky home buyers who meet income requirements. If you're struggling with saving for a down payment or need extra funds for closing costs, this program can help. Funds are limited and will be available starting March 3rd until they are reserved.
Household Income Limits Per County
To qualify for this home buyer grant, your household income must fall within the limits set for your county. Below are the income eligibility requirements for households with 1-2 persons and 3+ persons:
| County | 1-2 Person(s) Income Limit | 3+ Persons Income Limit |
|---|---|---|
| Nelson | $73,284 | $84,277 |
| Washington | $73,796 | $84,866 |
| Larue | $74,596 | $85,786 |
| Hardin | $74,596 | $85,786 |
| Bullitt | $77,120 | $88,688 |
| Marion | $68,544 | $79,968 |
| Jefferson | $77,120 | $88,688 |
| Anderson | $73,076 | $84,038 |
| Franklin | $73,588 | $84,626 |
| Woodford | $76,160 | $87,584 |
| Mercer | $73,684 | $84,737 |
Other counties may be available for eligibility.
Who Can Apply for This Home Buyer Grant?
This program is designed for low-to-moderate income households who need financial assistance to purchase a home. It is ideal for first-time home buyers in Kentucky looking for an affordable way to buy a home without high out-of-pocket costs.
Benefits of This Grant for Kentucky Home Buyers
- Receive $20,000 in grant money for down payment and closing costs.
- Helps first-time home buyers afford a home sooner.
- Makes homeownership more accessible for low-to-moderate income families.
- Available in multiple counties across Kentucky.
How to Apply for the Kentucky Home Buyer Grant
Funds for this program will be available starting March 3rd and will be distributed on a first-come, first-served basis. If you're interested in applying, it's essential to get pre-qualified as soon as possible.
For more information on qualifying for this first-time home buyer grant in Kentucky, or to start your application, contact Joel Lobb, Senior Loan Officer at American Mortgage Solutions, Inc.
📞 Call/Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: MyLouisvilleKentuckyMortgage.com
Act Fast – Funds Are Limited!
If you're a first-time home buyer in Kentucky, this $20,000 grant could be the key to owning your dream home. Don't wait until funds run out—start your home buying journey today!
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2025
A Comprehensive Guide to the Kentucky Welcome Home Grant
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For many Kentuckians, the dream of homeownership can feel out of reach due to financial constraints. But thanks to the Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2024 that dream might be closer than you think. This grant program, administered by the Federal Home Loan Bank of Cincinnati (FHLBC), offers down payment and closing cost assistance to eligible homebuyers throughout the state.
Whether you're a first-time homeowner or looking to upgrade your living space, understanding the qualifying guidelines is crucial for securing this valuable assistance. Buckle up, folks, as we delve into the details of the Welcome Home Grant and equip you with the knowledge to unlock your Kentucky homeownership dreams!
Eligibility: The First Step on Your Journey
Before diving into the specific details, let's address the first and most important question: are you eligible? Here's a breakdown of the key criteria:
Income: Your total household income must fall at or below 80% of the Mortgage Revenue Bond (MRB) limit for your specific county. These limits vary depending on location, so be sure to check the current limits here at this link below for your desired area.
👇
https://kentuckymortgage.wordpress.com/tag/kentucky-welcome-home-grant/
Property: The grant applies to primary residences only, including single-family homes, townhomes, condominiums, and qualified manufactured homes. The property must be located within eligible Kentucky counties. You can find a list of participating counties on the FHLBC website.
Purchase Contract: You must have a fully executed purchase contract for an eligible property before applying for the grant.
Financial Contribution: You must contribute at least $500 of your own funds towards the down payment and/or closing costs.
Additional Considerations: While not mandatory, completing a homebuyer education course can strengthen your application. Moreover, veterans and active-duty military personnel may be eligible for higher grant amounts.
Diving Deeper: Grant Details and Amounts
The Welcome Home Grant offers assistance in the form of a non-repayable grant. The maximum grant amount varies depending on several factors:
- Your down payment: If you contribute more than the required $500 towards your down payment, the grant amount may be reduced to fit within the total program funding available.
Remember: The grant funds cannot be used towards the property purchase price itself. They are strictly for down payment and closing cost assistance.
Finding Your Path: The Application Process
Now that you understand the eligibility and grant details, let's navigate the application process:
- Connect with a participating lender: The Welcome Home Grant program operates through partnering lenders, so start by searching for a lender in your area that participates in the program. You can find a list of participating lenders on the FHLBC website or by contacting the organization directly.
- Pre-qualify for a mortgage: This shows both you and the lender a realistic picture of your borrowing capacity and strengthens your application.
- Gather your documents: Be prepared to provide proof of income, employment, assets, and other required documentation as outlined by your lender.
- Complete the grant application: Your chosen lender will walk you through the grant application process and help you submit the necessary paperwork.
- Await a decision: The processing time can vary, but you'll typically receive a decision within a few weeks.
Beyond the Guidelines: Valuable Resources and Tips
Remember, knowledge is power! Equip yourself with as much information as possible to ensure a smooth application process. Here are some valuable resources:
- Kentucky Welcome Home Grant More info here -👇
- 👇
- >>https://kyfirsttimehomebuyer.wordpress.com/2024/01/20/kentucky-welcome-home-grant-5000-00/
- Your chosen participating lender: Their expertise can be invaluable in navigating the application process and maximizing your chances of success.
Pro-Tip: Start planning early! Research potential properties, understand the market in your desired area, and get your finances in order well before applying for the grant.
Remember: Homeownership is a significant investment, so proceed with careful planning and consideration. Utilize the available resources, ask questions, and don't hesitate to seek professional guidance if needed.
$20,000 Grant Money Available for Kentucky Home Buyers – First-Time Home Buyers Assistance!
Are you a first-time home buyer in Kentucky looking for financial assistance? The Federal Home Loan Bank has created a special fund to help low-to-moderate income families achieve homeownership. This $20,000 grant is designed to assist home buyers with down payments and closing costs, making it easier to secure a home without the burden of large upfront expenses.
Grant Money for First-Time Home Buyers in Kentucky
The Federal Home Loan Bank grant is an excellent opportunity for Kentucky home buyers who meet income requirements. If you're struggling with saving for a down payment or need extra funds for closing costs, this program can help. Funds are limited and will be available starting March 3rd until they are reserved.
Household Income Limits Per County
Other counties in Kentucky available for eligibility click here .
Who Can Apply for This Home Buyer Grant?
This program is designed for low-to-moderate income households who need financial assistance to purchase a home. It is ideal for first-time home buyers in Kentucky looking for an affordable way to buy a home without high out-of-pocket costs.
Benefits of This Grant for Kentucky Home Buyers
- Receive $20,000 in grant money for down payment and closing costs.
- Helps first-time home buyers afford a home sooner.
- Makes homeownership more accessible for low-to-moderate income families.
- Available in multiple counties across Kentucky.
How to Apply for the Kentucky Home Buyer Grant
Funds for this program will be available starting March 3rd and will be distributed on a first-come, first-served basis. If you're interested in applying, it's essential to get pre-qualified as soon as possible.
For more information on qualifying for this first-time home buyer grant in Kentucky, or to start your application, contact Joel Lobb, Senior Loan Officer at American Mortgage Solutions, Inc.
📞 Call/Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: MyLouisvilleKentuckyMortgage.com
Act Fast – Funds Are Limited!
If you're a first-time home buyer in Kentucky, this $20,000 grant could be the key to owning your dream home. Don't wait until funds run out—start your home buying journey today!
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Down Payment Assistance Kentucky 2025 Kentucky Housing Corporation KHC $10,000
Unlock Your Dream Home: Kentucky Down Payment Assistance Loans for 2025 – $10,000 Grants Available
Are you a Kentuckian dreaming of homeownership but struggling to save for a down payment? You’re not alone. According to the National Association of Realtors, nearly 60% of renters cite saving for a down payment as their biggest barrier to buying a home. Fortunately, Kentucky offers life-changing down payment assistance (DPA) programs to help bridge the gap—and in 2025, eligible buyers could qualify for **up to $10,000 in forgivable grants or low-interest loans** to make homeownership a reality.
In this guide, we’ll break down everything you need to know about Kentucky’s 2025 down payment assistance programs, including eligibility criteria, application steps, and insider tips to maximize your savings. Let’s dive in!
Why Kentucky Down Payment Assistance Matters in 2025
The median home price in Kentucky hovers around $225,000, meaning a traditional 20% down payment would require $45,000 upfront—a daunting figure for many families. However, with federal and state-backed DPA programs, qualified buyers can purchase a home with as little as **0–3% down**. For 2025, Kentucky is doubling down on its commitment to affordable housing by expanding access to grants, forgivable loans, and low-interest options.
The star of the show? A **$10,000 down payment assistance grant** designed to help first-time buyers, veterans, educators, and low-to-moderate-income households. Let’s explore how this program works.
How to Apply for Kentucky Down Payment Assistance in 2025
Use the KHC’s online eligibility calculator or consult a HUD-approved housing counselor.
2. Get Pre-Approved for a Mortgage
Frequently Asked Questions
Q: Do I have to repay the $10,000 assistance?
A: Yes over 10 years at 3.75% rate works out to be around $100 a month added to your 1st mortgage payment
Q: Can I combine multiple DPA programs?
A: Sometimes! For example, you might pair the $10,000 grant with a Mortgage Credit Certificate (MCC) for tax savings.
Q: Are there grants for home repairs?
A: No. KHC loan cannot be used for repairs to the house. It can only be used to meet the minimum down payment requirements and pay for your closing costs and prepaids if any monies are left over after you meet the minimum down payment requirements for FHA, VA, USDA and Conventional mortgage loans
Email - kentuckyloan@gmail.com 
Call/Text - 502-905-3708Joel 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 Local Home Loan Lender Services
First-Time Home Buyers Welcome FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans Conventional Loan Options Available Fast Local Decision-Making Experienced Guidance Through the Home Buying Process
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Medical Debt Collections being Removed from Credit Reports
Medical Collections on Credit Report
The Consumer Financial Protection Bureau (CFPB) finalized a rule January 7, 2025 that will remove $49 billion in medical debt from credit reports, helping 15 million Americans!
Here’s what’s changed:
- Medical bills are no longer on credit reports – They won’t hurt your score anymore.
- Lenders can’t use medical info in loan decisions.
- Credit scores could rise – Many people will see a boost of points
- More mortgage approvals
Email - kentuckyloan@gmail.com Call/Text - 502-905-3708Joel 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 Local Home Loan Lender Services
First-Time Home Buyers Welcome FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans Conventional Loan Options Available Fast Local Decision-Making Experienced Guidance Through the Home Buying Process
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Kentucky Housing Income Limits for Mortgage Loans
New Income Limits for KHC Loans in Kentucky
- Federal Housing Administration (FHA)
- Minimum 620 credit score.
- Financing to 96.50% of lesser of sales price or appraised value.
- Maximum ratio 50%.
- Upfront and Annual Mortgage Insurance Premiums 30-Year Loan Term LTV less than or equal to 95% 1.75% UFMIP .50 Annual LTV greater than 95% 1.75% UFMIP .55 Annual
Rural Housing Services (RHS)
- Minimum 620 credit score.
- Financing to 100% of the appraised value, plus guarantee fee of 1.00%/0.35% annual fee.
- Maximum ratio 50%
- Veteran’s Administration (VA)
•Financing to 100% of the lesser of the appraised value or sale price plus funding fee.
•Maximum ratio 50%.
•No monthly mortgage insurance.
Regular Down Payment Assistance Programs (DAP)
- Up to $10,000 Minimum of $1,000
- Terms 3.75% amortized over 10 years Purchase Price Limit $510,939
Email - kentuckyloan@gmail.com Call/Text - 502-905-3708Joel 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
Equal Housing Lender
For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.
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(www.nmlsconsumeraccess.org).
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.
Kentucky FHA Loan Lender Requirements for Approval
How to Qualify for a Kentucky FHA Loan Approval:
If you're looking to buy a home in Kentucky and are considering a Kentucky FHA loan, it's essential to understand the qualifying criteria and the necessary steps. This article covers all the crucial aspects you need to know, from credit scores, bankruptcy, work history, collections, closing, home insurance, title, debt ratio , down payment and other required documents for pre-approval for a Kentucky FHA loan pre-approval letter.
Credit Score for Kentucky FHA loan
For an FHA loan in Kentucky, the minimum credit score requirement is typically 580 for maximum financing with a 3.5% down payment. If your score is between 500 and 579, you may still qualify, but you will need a higher down payment of at least 10%.
- Any judgments or collections on the credit report must be resolved or satisfactorily explained. Collections do not have to be paid but they will count them in your debt to income ratio. If they are judgements, they will have to be paid off because they could effect the clear title of the home
- Cosigners are allowed. Family members or close associates okay. They don't have to live in the home with you. Cosigner are used to for income purposes only or work history that does not meet FHA lender requirements .Not used to compensate for the primary borrowers bad credit. They always take the lowest credit score of both borrowers.
Bankruptcy and Foreclosures for Kentucky FHA loans
- Bankruptcy: You can qualify for an FHA loan two years after a Chapter 7 bankruptcy discharge, provided you have re-established good credit or have not incurred new debt. For a Chapter 13 bankruptcy, you need one year of the payout period completed and permission from the court to enter into a new mortgage.
- Foreclosures: You must wait three years after a foreclosure before you can qualify for an FHA loan. This period can be reduced if the foreclosure was due to extenuating circumstances beyond your control.
Debt-to-Income Ratio (DTI)
The FHA guidelines typically require a front-end DTI (monthly mortgage payment divided by gross monthly income) of no more than 31% and a back-end DTI (total monthly debt payments divided by gross monthly income) of no more than 43%. However, higher ratios may be accepted with compensating factors, such as significant cash reserves or high credit scores. Can be much higher with AUS approval with 45% and 57% respectively on the front end and back end.
Down Payment for Kentucky FHA loans
The standard down payment for a Kentucky FHA loan is 3.5% of the purchase price, which is feasible for many first-time homebuyers. This down payment can come from savings, a gift from a family member, or an approved down payment assistance program. 10% down payment needed with scores below 580.
Checklist of Documents Needed for Kentucky FHA loan Pre-Approval
To get pre-approved for a Kentucky FHA loan, you'll need to provide several documents, including:
- Proof of identity (driver’s license or passport)
- Social Security number
- Recent pay stubs
- W-2 forms for the past two years
- Federal tax returns for the past two years
- Bank statements for the last two to three months
- Employment verification letter
- Debt information (credit cards, student loans, auto loans)
- Proof of additional income (alimony, child support, bonuses)
Work History for Kentucky FHA loans
You need to show a stable work history for at least the past two years. If you have changed jobs, the new position should be in the same field or demonstrate career advancement.
Loan Limits Kentucky FHA loan
The FHA loan limits in Kentucky vary by county and are set based on the median home prices in the area. In most counties, the limit for a single-family home is $524,225 for a single-family home. in 2024, but this amount can be higher in more expensive areas.
Income Limits Kentucky FHA loan
There are no specific income limits for FHA loans; however, your income must be sufficient to cover the mortgage payments and other debts. Lenders will assess your ability to repay the loan based on your income, debts, and employment history.
Down Payment Assistance Grants Kentucky FHA loan
Kentucky offers several down payment assistance programs to help first-time homebuyers. These programs can provide funds to cover the down payment and closing costs. Some popular programs include:
- Kentucky Housing Corporation (KHC) Programs: KHC offers several down payment assistance options, including repayable and forgivable loans. $10,000 available at 3.75% rate currently over 10 year pay back period. Changes periodically. Check your lenders requirements with income limits, loan limits, debt to income ratio requirements
- Local Government Programs: Many local governments offer grants and loans for down payment assistance.
- Federal Loan Programs for First-Time Homebuyers in Kentucky
- Kentucky Federal Housing Administration (FHA) Loans: FHA loans are insured by the U.S. Department of Housing and Urban Development (HUD) and cater to borrowers with lower credit scores (minimum 580 with a 3.5% down payment).
- Kentucky Department of Veterans Affairs (VA) Loans: Active-duty military personnel, veterans, and eligible family members can qualify for VA loans with no down payment required. These loans typically offer lower interest rates than conventional mortgages.
- Kentucky USDA Loans: Guaranteed by the U.S. Department of Agriculture (USDA), these loans are available to moderate-income borrowers in designated rural areas, with no down payment required.
You may qualify for one of these programs.
- HUD Community Development Block Grants (CDBG) - Kentucky contacts - HUD provides grant money to communities and those funds may be used to assist homebuyers
- HUD HOME Program - Kentucky contacts - HUD provides grant money to communities designated as participating jurisdictions for assisting homebuyers, rental assistance, and other housing initiatives
- Community Ventures Corporation Kentucky Home Financing
- The Kentucky Housing Corporation offers:
- Habitat for Humanity - Through volunteer labor and donations of money and materials, Habitat builds and rehabilitates simple, decent houses with the help of the homeowner (partner) families
- Federal Home Loan Bank of Cincinnati - serves Kentucky residents by offering various homebuying programs including Welcome Home grants. For more information, you may call 1 (888) 345-2246
- Kentucky Association for Community Action - helps to fund housing programs for low-income residents
- Federal Appalachian Housing Enterprise (FAHE) - provides housing assistance in rural, low-income, Appalachian communities
- Housing Partnership, Inc. - provides affordable housing services for residents of Jefferson County
- Secondary financing/down payment assistance programs are listed by state
- USDA Rural Development - programs that reduce the cost of homeownership for low and moderate-income families.
Additional Resources
- City and County Programs: Some Kentucky cities and counties offer their own down payment assistance programs or resources for first-time homebuyers. It's recommended to research programs available in your target location.
- HUD Homeownership Programs: The U.S. Department of Housing and Urban Development provides resources for homeownership assistance programs across the country. You can explore their website for additional options.
Seller Concessions for Kentucky FHA loans
Sellers can contribute up to 6% of the home's purchase price toward closing costs, prepaid expenses, discount points, and other financing concessions. This can significantly reduce your out-of-pocket expenses.
Appraisals and Inspections Kentucky FHA loan
- Appraisals: An FHA-approved appraiser must conduct an appraisal to ensure the property's value and condition meet FHA standards. Always required for FHA approval and ordered by lender.
- Inspections: While not required by FHA, a home inspection is highly recommended to uncover any potential issues with the property. Not required, and ordered by borrower. Lender never sees the inspection report on home.
Home Insurance for Kentucky FHA loans
Homeowners insurance is mandatory for all FHA loans. You need to secure a policy that covers the property against loss or damage.
Title Report for Kentucky FHA loans
A title report ensures that the property has a clear title with no outstanding liens or claims. This is a crucial step in the home buying process to protect your investment.
Earnest Money Deposit for Kentucky FHA loans
An earnest money deposit is typically required to show the seller that you are serious about purchasing the home. This amount varies but is usually between 1% and 3% of the purchase price. $500 is typical in Kentucky for a deposit on a home you are buying.
Credit Reports for Kentucky FHA loans
Lenders will pull your credit report to assess your creditworthiness. It's important to check your credit report for errors and ensure that all information is accurate before applying for a loan. Some lenders will charge you upfront for the credit report fee and others will pull all three credit reports from Experian, Transunion and Equifax for free. Usually lender will not share the report with you but give you the scores. Scores go from 350 to 850 on each credit bureau.
Time to Close on a Kentucky FHA loan
The time to close an FHA loan can vary but typically ranges from 30 to 45 days. This period can be shorter or longer depending on various factors, including the lender's efficiency and the completeness of your documentation.
Locking in Rate on a Kentucky FHA loan
Once you are approved for a loan, you can lock in your interest rate to protect against rate fluctuations. Rate locks can last from 15 to 180 days or longer, depending on the lender.
CAIVRS Check for FHA loan in Kentucky
The Credit Alert Verification Reporting System (CAIVRS) is used to determine if a borrower has a federal debt or delinquency. If your name appears on this list, you may be ineligible for an FHA loan until the issue is resolved. So if you are delinquent on any student loan debt, back taxes to the IRS or social security overpayments, this can stop your Kentucky FHA loan pre-approval
Student Loan Rules for FHA Kentucky FHA loan
For FHA loans, the monthly payment for student loans is calculated as either .5% of the outstanding balance or the actual documented payment amount, whichever is greater. If your loans are in deferment or forbearance, .5% of the outstanding balance will be used for DTI calculations.
Delinquent Government Debt Kentucky FHA loan
If you have delinquent government debt, such as unpaid federal taxes or a defaulted student loan, you may not qualify for an FHA loan until the debt is resolved.
By understanding these requirements and preparing accordingly, you can increase your chances of qualifying for an FHA loan in Kentucky and successfully purchasing your new home.
Email - kentuckyloan@gmail.com Call/Text - 502-905-3708Joel 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.
I have helped over 1300 Kentucky families buy or refinance their home over the last 20 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.
I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.
You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.