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
Understanding the work history requirements for different mortgage loan types can help streamline your application process.
Conventional Mortgage Loan Work History Requirements
Job History Required:
2 years of related work history is generally expected.
If there are employment gaps, most lenders like to see at least 6 months at the current job.
Compensating Factors:
If someone has less than 2 years total work history, it may still be acceptable if they can document relevant education or provide a letter of explanation about a recent job change.
Essentially, the borrower should show how their background (e.g., schooling or on-the-job training) supports their current position.
FHA Mortgage Loan Work History Requirements
Job History Required:
2 years of related work history is preferred.
6 months at the current job if there have been employment gaps in the recent past.
Compensating Factors:
The FHA lender wants to feel confident the borrower is qualified for their current position and likely to continue in that job (or move into a better position).
It’s all about showing stability and a solid likelihood of ongoing employment.
VA Mortgage Loan Work History Requirements
Job History Required:
2 years or a combination of relevant schooling/training or military service to cover that two-year window.
If the borrower is active military, they should be more than 12 months away from their release date.
Compensating Factors:
The lender needs to verify the borrower has the necessary skills for the current job.
This could be demonstrated through a relevant degree, specialized training, or prior work experience.
USDA Mortgage Loan Work History Requirements
Job History Required:
There’s no minimum time the borrower must be in the current position.
However, they need to prove 2 years of work or related history overall.
Compensating Factors:
It’s fine if the borrower has moved around between jobs, but they must explain any big gaps or changes.
If the borrower spent time getting a degree or had a period of military service, they can document those periods (e.g., transcripts, discharge papers) to fill that two-year window.
Each loan program has its own guidelines, but they all circle back to the same main point: lenders want to see a stable or justifiable work history. Even if someone doesn’t have a full two years in one specific role, there are plenty of ways to show their background and explain any gaps—through education, training, military service, or simply providing a solid letter of explanation.
Remember, these requirements can also vary slightly depending on individual lender overlays (extra guidelines), so it never hurts to check with specific lenders. But in general, if someone can document a consistent timeline (or provide clear reasons if there are gaps), they’re on a good path for mortgage approval.
Freddie Mac and Fannie Mae Underwriting Guidelines for Mortgage Approval
These are called conventional because they must conform to the Freddie Mac and Fannie Mae standards set by the government, but they are not government insured. This poses a greater risk to lenders because they are not guaranteed repayment in the event the loan defaults; rather, they are forced to take a personal loss.
For these reasons, conventional mortgages are more difficult to obtain with stricter lending requirements in regards to credit score,down payment, debt to income ratio,mortgage insurance and previous bankruptcies or foreclosure.
Let's take a look at each subject below:👇
Credit Scores:
Fannie Mae and Freddie Mac Require a minimum 620 credit score.
You have three credit scores from Experian, Equifax, and Transunion, and they take the middle score, throwing out the high and low score. The higher the credit score the better pricing you will get on the rate and mortgage insurance along with your down payment.
Ideally for higher credit score buyers, say over 680, and with at least 3% down payment with a low debt to income ratio.
Down Payment:
Conventional mortgage loans require a minimum of 3% down payment. The more you put down, the better the rate, lower the mortgage insurance, and greater chances of getting approved.
If you put down 20%, then you will not have to pay mortgage insurance, or if you refinance an existing loan that has mortgage insurance, you can potentially get rid of the mortgage insurance if your equity position is less than 20% of the home's value.
Debt to Income:
Conventional Mortgage loans typically will not allow for a back-end ratio of over 45%. They're two ratios, the front-end and back-end ratio. The front-end ratio is a percentage of the total house payment of your total gross monthly income. The back-end ratio is the new total house payment along with the monthly payments on your credit report divided by your total gross monthly income.
For example, if you make $3,000 gross a month, your total backend ratio would me maxed out at 1,350 a month. So if you had $300 in monthly payments on the credit report, this would allow for a maximum house payment of $1,050.00
Mortgage Insurance:
Mortgage insurance is typically cheaper and less expensive on conventional mortgage loans. They're competing private mortgage insurance companies competing for the business with the names of MGIC, Radian, Essent, Genworth and Ugcorp.
Conversely, it is not like Government insured FHA, VA and USDA mortgage loans where all applicants get the same premiums regardless of credit score, down payment and debt to income ratio. Mortgage insurance is usually expressed as a monthly premium, with no upfront mortgage premiums like FHA, VA, and USDA government loan programs.
The higher the credit score, lower debt to income ratio and more nd can be removed once you reach 80% equity position in the home.
Bankruptcies and Foreclosure:
Bankruptcy (Chapter 7 or Chapter 11)
A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action.
Exceptions for Extenuating Circumstances
A two-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the discharge or dismissal date of the bankruptcy action.
Bankruptcy (Chapter 13)
A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as follows:
two years from the discharge date, or
four years from the dismissal date.
.Foreclosure
A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.
Deed-in-Lieu of Foreclosure, Pre-foreclosure Sale, and Charge-Off of a Mortgage Account
These transaction types are completed as alternatives to foreclosure.
A deed-in-lieu of foreclosure is a transaction in which the deed to the real property is transferred back to the servicer. These are typically identified on the credit report through Remarks Codes such as “Forfeit deed-in-lieu of foreclosure.”
A pre-foreclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer. These are typically identified on the credit report through Remarks Codes such as “Settled for less than full balance.”
A charge-off of a mortgage account occurs when a creditor has determined that there is little (or no) likelihood that the mortgage debt will be collected. A charge-off is typically reported after an account reaches a certain delinquency status, and is identified on the credit report with a manner of payment (MOP) code of “9.”
A four-year waiting period is required from the completion date of the deed-in-lieu of foreclosure, pre-foreclosure sale, or charge-off as reported on the credit report or other documents provided by the borrower.
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
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:
💰 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!
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.
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
$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.
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!
A Comprehensive Guide to the Kentucky Welcome Home Grant
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.
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:
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.
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.
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!
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
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
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
Website: 
Address: 911 Barret Ave., Louisville, KY 40204
First-Time Home Buyers Welcome
.jpg "Kentucky Welcome Home Grant")
Email -
Call/Text - 
.jpg){kind=link}