Kentucky Housing Credit Standards
640 minimum credit score required for FHA,VA, and RHS. 660 minimum credit score
required for Conventional.
Debt ratios according to agency guidelines:29/41 for VA, Conventional, and RHS; 31/43
for FHA. If AUS approved, can go up to
Collections – for all loan types, if AUSapproved,findings to be followed. For
manually-underwritten FHA, VA, and RHS,
follow agency requirements. For Conventional
loans through AUS, approved findings to be
Bankruptcies and foreclosures must bedischarged two to five years, according to
insuring agency guidelines and AUS findings.
For most loan types, non-taxable income canbe grossed-up by 15%. Must follow insuring
Home Buyer Eligibility
Must be a first-time home buyer, unlesspurchasing in a targeted county, when
utilizing Mortgage Revenue Bond (MRB)
Must be a U.S. citizen or resident alien.
Gross annual household income must bewithin the applicable limits in effect.
Note: Income limits are updated annually.
All non-borrowing occupants age 18 or oldermust disclose income for MRB program.
Property must be the borrower’s principalresidence.
Borrower cannot own any other residentialproperty the day they close on a Kentucky
Housing-financed home (including
Both new and existing property, based onloan type(s) borrower receives.
Manufactured housing allowed with FHA, VA,and RHS– special restrictions apply.
MRB purchase price limit up to $243,000*.
Note: Purchase price limits are updated annually.
MRB program allows for the purchase of ahome and up to one acre of land without a
Full appraisal required on all KHC loans.
Loan types that do not require termite reportsare FHA, RHS, and Conventional loans,
except when required by the sales contract
or appraisal. VA loans require termite
reports (VA borrower cannot pay).
Kentucky Housing Corporation loans offer benefits for both
you and your buyer:
Programs available for first-time and previous home buyers.
Increased income and purchase price guidelines mean more purchasing power for your buyer and potentially higher commissions for you.
Downpayment and closing costs assistance programs for qualified buyers.
Conventional, FHA, RHS, and VA loan programs with low interest rates.
Available home buyer education and counseling programs.
Kentucky Housing loans are serviced in Kentucky – we never sell our loans!
Available online bill payment and account maintenance for borrowers.
Real Estate Agent e-mail registry allows you to stay up-to-the-minute on additional funding and program changes.
Kentucky Housing Corporation Mortgage Loans – The Home Loan You Can Trust