Kentucky first-time home buyer loan requirements for FHA, VA, USDA and Conventional Mortgage Loans in Kentucky?
The Kentucky First Time Home buyer requirements to qualify for a Kentucky first-time home buyer loans usually center around FHA, VA, USDA and Conventional Mortgage loans .
Let’s look at the different program requirements.
Here are some of the most common mortgages and their requirements.
- Kentucky FHA loan: FHA loan is a home loan insured by the Federal Housing Authority. If your credit score is at least 580, you can put as little as 3.5% down. You’ll need to satisfy other criteria as well, such as two years of continuous employment and a reasonable debt-to-income ratio, depending on the lender.
- Kentucky VA loan: A VA loan is insured by the U.S. Department of Veterans Affairs and it doesn’t require any down payment at all. Members of the armed forces, veterans, or qualified spouses qualify. The interest rate can be significantly lower than the interest rates on other types of government-backed mortgages. The minimum credit score varies from one participating lender to another, but most want you to have a 620 or higher.
- Kentucky USDA loan: The USDA loan program is aimed at low-income borrowers, usually in rural areas. No down payment is required. The minimum credit score is set by the mortgage lender. Most require a 640 credit score.
- Conventional loan: Unlike the government-backed options above, a conventional loan isn’t insured by federal agencies like the FHA, VA, or USDA. There are several conventional loan options for first-time home buyers. For example, first-timers only need to put 3% down with Fannie Mae’s Conventional 97 loan program and Freddie Mac’s HomeOne® mortgage. Neither program has income restrictions.