How to get approved for a Kentucky Mortgage Loan in 2024

To determine if you can get approved for a Kentucky mortgage, several factors need to be considered, including your credit score, income, employment history, debt-to-income ratio, and down payment. Here’s a general overview of what lenders typically look for:

1. Credit Scores : Most Kentucky Mortgage  lenders prefer a credit score of 620 or higher for conventional loans. FHA loans may accept lower credit scores, starting around 500, but a higher score (typically 580 or above) can improve your chances and offer better terms.

   Here are the general credit score requirements for FHA, VA, USDA, and Fannie Mae mortgage loans in Kentucky:

   Loan Program	Minimum Credit Score Requirement	Additional Notes
   FHA Loan	500 to 580	A credit score of 500 to 579 requires a 10% down payment; a score of 580 or higher requires a 3.5% down payment.
   VA Loan	No minimum score	VA lenders are more flexible with credit scores, but most lenders prefer a score of 620 or higher.
   USDA Loan	no minimum score	USDA lenders  typically require a minimum credit score of 640 or higher.
   Fannie Mae Loan	620 or higher	Fannie Mae loans generally require a credit score of 620 or higher.

2. Income and Employment History: Lenders evaluate your income stability and 2 year employment history to ensure you have a reliable source of income to make mortgage payments. Consistent employment and sufficient income are crucial.

   Here’s a chart outlining the employment and work history requirements for Kentucky FHA, VA, USDA, and Fannie Mae mortgage loans:

   Loan Program	Employment History	Work History	Guidelines
   Kentucky FHA Loan	2 years of consistent employment with steady income	2 years of stable employment, including gaps explained	Employment can include salaried, self-employed, or contract positions. Gaps in employment may require explanations and documentation.
   Kentucky VA Loan	Stable income with continuous employment	Stable work history with no significant gaps	VA loans focus on the stability of income rather than specific employment duration. Military service may fulfill employment requirements.
   Kentucky USDA Loan	2 years of stable employment with reliable income	2 years of continuous employment, including explanations for gaps	USDA loans prioritize consistent income and employment history. Gaps may require explanations and additional documentation.
   Fannie Mae Loan	2 years of employment with steady income and job stability	2 years of stable employment, including explanations for gaps	Fannie Mae loans emphasize a stable work history with a focus on income stability. Gaps in employment may need explanations and additional documentation.

   These guidelines provide an overview of the employment and work history requirements for FHA, VA, USDA, and Fannie Mae mortgage loans. Lenders may have specific criteria and may consider factors such as income stability, type of employment, gaps in employment, and documentation of income sources. Borrowers should consult with a mortgage professional or lender to understand the detailed employment and work history requirements for their loan application.

3. Debt-to-Income (DTI) Ratio: This ratio compares your monthly debt payments to your gross monthly income. Lenders typically prefer a DTI ratio of 31% to 45% on front end ratio and up to 55% on the back-end ratio, although some may accept higher ratios with compensating factors.

   Here’s a chart comparing the debt ratio requirements forKentucky FHA, VA, USDA, and Fannie Mae mortgage loans:

   Loan Program	Front-End DTI Ratio	Back-End DTI Ratio	Guidelines
   Kentucky FHA Loan	Up to 45%	Up to 56.99%	Front-end DTI includes housing-related expenses (mortgage, taxes, insurance). Back-end DTI includes all monthly debts.
   Kentucky VA Loan	41% or higher	41% or higher	VA guidelines do not have specific DTI ratio limits but focus on residual income after accounting for housing and debt costs.
   Kentucky USDA Loan	Up to 33%	Up to 45%	Front-end DTI includes housing expenses. Back-end DTI includes all monthly debts.
   Kentucky Fannie Mae Loan	Up to 40%	Up to 50%	Front-end DTI includes housing expenses. Back-end DTI includes all monthly debts.

4. Down Payment: The amount of your down payment can also impact your approval chances. A larger down payment can lower your loan-to-value ratio (LTV) and reduce the lender’s risk.

   Here’s a down payment chart for Kentucky  FHA, VA, USDA, and Fannie Mae mortgage loans:

   Loan Program	Minimum Down Payment	Down Payment Source
   Kentucky FHA Loan	3.5% of purchase price	Can be from personal savings or gift funds
   Kentucky VA Loan	0% (No down payment)	N/A (VA loans offer 100% financing)
   Kentucky USDA Loan	0% (No down payment)	N/A (USDA loans offer 100% financing)
   Kentucky Fannie Mae Loan	3% to 5% of purchase price	Can be from personal savings or gift funds

    

5. Other Factors: Lenders may also consider your savings and assets, existing debts, credit history, and the type of mortgage you’re applying for (e.g., FHA, VA, USDA, conventional).

To get a more accurate assessment of your mortgage approval chances, it’s best to consult with a mortgage lender or broker. They can review your financial situation, credit history, and specific loan requirements to determine your eligibility and help you navigate the mortgage approval process.

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

 

 

 

 

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

 

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).

 

Welcome Home Grant is open to qualified applicants purchasing a home in Kentucky. Kentucky Welcome Home Grant Program Guidelines

Kentucky Welcome Home Grant Program Guidelines

How long is my pre-approval good for on a Kentucky Mortgage Loan?

Shopping for a Kentucky Mortgage Loan?

1. Mortgage Rates Change

Just like the stock market, mortgage rates change throughout the day. Mortgage rates you see today may not be available tomorrow. If you are in the market for a mortgage loan, be sure to check the current rates being offered by lenders. If you have already done your research and have found your dream home consider locking in your rate as soon as possible.

2. Different Lenders Charge Different Fees

Don’t expect every lender to charge the same fees for a mortgage loan. Every lender structures their fees differently, which is why it is important to shop with at least 3 lenders to compare. Next time you apply for a mortgage loan pay attention to the rates, points being charged and closing costs.

3. Lenders Can Sell Your Loan to Another Bank

Many borrowers have experience getting a mortgage loan with a certain lender only to find out that the loan has been sold to another bank. This occurs because lenders need to free up their liabilities in order to make room to give out more loans. This does not affect your mortgage whatsoever, but it’s important to pay close attention to your mortgage statement and any correspondence you receive in the mail to make sure you do not make payments to the wrong bank.

4. Your Middle Credit Score Matters

When you apply for a mortgage loan, the lender will pull your credit scores from three credit bureaus (Transunion, Equifax and Experian) to help them determined if you are credit worthy. Your middle score of the three is what lenders will use for loan qualification. However, the underwriter will review all three scores as part of the loan underwriting process. If you pull your own credit score through a website online, the credit scores displayed to you may be different than what lenders use because they use different reporting systems.

5. You Can Refinance Your Home Loan Anytime

You can refinance your mortgage anytime, but it doesn’t necessarily mean you should. Think about why you want to refinance. Is because you want to lower your monthly payments, to change the type of loan you are in or to take cash out from your equity? Whatever the reason is, make sure that it makes financial sense.

6. You Can Get a Mortgage Loan After a Foreclosure

Many homeowners have experienced a foreclosure after the recent mortgage crisis. There is good news for these borrowers because they can get a mortgage loan after foreclosure. There are waiting periods involved, for example, to apply for an FHA loan you must wait three years after foreclosure to apply. If you want to get a conventional loan the waiting period is seven years from foreclosure. For those seeking a VA loan, the waiting period is two-years.

There are exceptions to the waiting periods, but you have to show the lender that your foreclosure was caused by an event outside your control, such as losing your job or being seriously ill.

8. Good Credit Allows you to Get Better Mortgage Rates

Good credit scores mean a better rate in any type of loan, especially a mortgage loan. Your credit heavily impacts the type mortgage loan you will qualify for. To maintain a good credit report, make sure you monitored it closely. One of the advantages to good credit is that more banks will want to compete for your business, therefore giving you leverage to negotiate the closing costs.

9. Know Your Annual Percentage Rate (APR)

Knowing your APR will allow you see the true cost of your loan. While the interest rate shows the annual cost of your loan, the APR includes other fees such as origination points, admin fees, loan processing fees, underwriting fees, documentation fees, private mortgage insurance and escrow fees.

There may be more or less fees included in the ARP from what we mentioned. To be sure what fees are included in the APR, ask your lender to give you a breakdown of the closing costs included.

10. You Can Always Reduce Closing Costs

One way to reduce closing costs is to have the sellers contribute towards the closing costs when purchasing your home. This can be negotiated between the buyer and the sellers in the purchase contract. The amount the seller can contribute will depend on the type of loan. Another way to save on closing costs is to have the lender give you a credit to cover out of pocket loan costs.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

https://kentuckyloan.blogspot.com

CONFIDENTIALITY NOTICE: This message is covered by the Electronic Communications Privacy Act, Title 18, United States Code, §§ 2510-2521. This e-mail and any attached files are deemed privileged and confidential, and are intended solely for the use of the individual(s) or entity to whom this e-mail is addressed. If you are not one of the named recipient(s) or believe that you have received this message in error, please delete this e-mail and any attached files from all locations in your computer, server, network, etc., and notify the sender IMMEDIATELY at 502-327-9770. Any other use, re-creation, dissemination, forwarding, or copying of this e-mail and any attached files is strictly prohibited and may be unlawful. Receipt by anyone other than the named recipient(s) is not a waiver of any attorney-client, work product, or other applicable privilege. E-mail is an informal method of communication and is subject to possible data corruption, either accidentally or intentionally. Therefore, it is normally inappropriate to rely on legal advice contained in an e-mail without obtaining further confirmation of said advice.

What is the minimum credit score I need to qualify for a Kentucky FHA, VA, USDA and KHC Conventional mortgage loan?

What is the minimum credit score I need to qualify for a Kentucky mortgage currently?

Question:

What is the current minimum credit scores needed to qualify for a Kentucky mortgage Loan?

Answer:

The minimum credit score needed to qualify for a Kentucky mortgage depends on the type of loan program you are looking to obtain, this could be the reason that you have received conflicting answers.

The most common types of mortgage are Conventional, FHA, USDA, VA, and KHC mortgage loans in Kentucky. I’ll explain each briefly below and the minimum credit score needed to qualify for each loan program. Keep in mind these are continuously changing and can vary by lender do to credit overlays.

Kentucky Conventional or Fannie Mae  

Conventional loans make up the majority of mortgages in the US. They are also known as conforming loans, because they conform to specific guidelines set by Fannie Mae and Freddie Mac.

• Minimum Credit Score is 620
• What Are the Conforming Loan Limits for 2024?
  Property Type Minimum Conforming Loan Limit Maximum Conforming Loan Limit
  One-unit $766,550 $1,149,825
  Two-unit $981,500 $1,472,250
  Three-unit $1,186,350 $1,779,525
  Four-unit $1,474,400 $2,211,600
• You can use a conventional loan to buy a primary residence, second home, or rental property
• Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer many loan terms usually from 10 to 30 years
• Down payments as low as 3% and 5% depending on Home Ready or straight conventional loan.
• No monthly mortgage insurance with a down payment of at least 20%
• Max Debt to Income Ratio of 50%

KENTUCKY FHA MORTGAGE

An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.

• Minimum Credit Score is 500 with at least 10% down
• Minimum Credit Score is 580 if you put less than 10% down
• The maximum loan amount varies by Geographical Area, for 2024 is  $498,257
• Upfront and Monthly Mortgage Insurance is required regardless of the Loan to Value
• FHA Loans are only available for financing primary residences
• Maximum Debt to Income Ratio of 50% (unless mitigating factors justify allowing a higher DTI) up to 57% in some instances with strong compensating factors.

KENTUCKY USDA RURAL HOUSING LOAN 

• • 100% Financing
  • Cities and towns located outside metro areas-see link (https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
  • Do NOT have to be a Kentucky First Time Home Buyer
  • No Down Payment
  • 30 year low fixed rate loans
  • No Prepayment Penalty
  • Great Low FIXED Interest Rates
  • No max loan limits, just income limits
  • Possible to Roll Closing Costs into Loan if Appraises Higher
  • No Cash Reserves Required
  • UNLIMITED Seller Contribution toward Closing Costs
  • 100% Gifted Closing Costs allowed
  • Primary Residents only (no rentals/investment properties)
  • Debt to income ratios no more than 45% with GUS approval and 29 and 41% with a manual underwrite.
  • Only Need a 580 Credit Score to Apply*** Most USDA loans need a 620 or score higher to get approved through their automated underwriting system called GUS. 640 usually required for an automated approval upfront.
  • No bankruptcies (Chapter 7) last 3 years and no foreclosure last 3 years. If Chapter 13 bankruptcy possible to go on after 1 year
   
• KENTUCKY VA Mortgage

• 100% Financing Available up to qualifying income and entitlement
• Must be eligible veteran with Certificate of Eligibility. We can help get this for veterans or active duty personnel.
• No Down Payment Required
• Seller Can Pay ALL Your Closing Costs
• No Monthly Mortgage Insurance
• Minimum 580 typically Credit Score to Apply–VA does not have a minimum credit score but lenders will create credit overlays to protect their interest.
• Active Duty, Reserves, National Guard, & Retired Veterans Can Apply
• No bankruptcies or foreclosures in last 2 years and a clear CAVIRS
• Debt to income ratios vary, but usually 55% back-end ratio with a fico score over 620 will get it done on qualifying income and if it is a manual underwrite, 29% and 41% respectively
• Can use your VA loan guaranty more than once, and in some cases, can have two existing VA loans out at they same time. Call or email for more info on this scenario.
• Cost of VA loan appraisal in Kentucky now costs a  minimum $605 with a termite report needed on all purchase and refinance transactions unless a condo.
• 2 year work history needed on VA loans unless you can show a legitimate excuse, ie. off work due to injury, schooling, education etc.
• You cannot use your GI Bill for income qualifying for the mortgage payment.

KENTUCKY HOUSING DOWN PAYMENT ASSISTANCE 100 FINANCING 

​

Down Payment:  There are still housing programs that exist for Kentucky home buyers whereas you can purchase a home with no down payment. You will need a 620 mid credit score to purchase a home using the KHC loan programs for their no down payment credit requirements.

How the Down Payment Assistance Program (DAP) Works

 Down payment assistance loans are available up to $10,000 and is paid back over a period of ten years at a current rate of 3.75%.

Regular DAP

• Purchase price up to $481,176 with Secondary Market​ or Mortgage Revenue Bond (MRB) income limits.
• Assistance in the form of a loan up to $10,000 in $100 increments.
• Repayable over a 10-year term at 3.75 percent.
• Available to all KHC first-mortgage loan recipients

If you have questions about qualifying as first time home buyer in Kentucky, please call, text, email or fill out free prequalification below for your next mortgage loan pre-approval.

 

 

 

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 

Text or call phone: (502) 905-3708

 

email me at kentuckyloan@gmail.com

 

 

http://www.mylouisvillekentuckymortgage.com/

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 views of my employer. Not all products or services mentioned on this site may fit all people

2024 Welcome Home Grant Program for Kentucky Home Buyers $20,000

Kentucky Down payment assistance loans are available up to $20,000 for Mortgage with Welcome Home Grant 2024

Welcome Home Program Grant Program for Kentucky Home buyers in 2024

Information for Kentucky Homebuyers
Welcome Home Program Grant Program for Kentucky Home buyers in 2024

The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) offers grants of up to $25,000 for honorably discharged veterans, surviving spouses of military personnel, and active duty military homebuyers and up to $20,000 for all other homebuyers to assist with down payment and closing costs for income eligible homebuyers through the Welcome Home Program (WHP).

 

Kentucky Homebuyers must apply and qualify for a mortgage loan with one of our Member financial institutions to utilize the grant.

 

Who are Eligible Homebuyers in Kentucky for the Welcome Grant?

 

A  Kentucky  homebuyer would be eligible for the Welcome Home grant if all of the following guidelines are met:

 

 The total income for all occupants who will reside in the home is at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located;
 A fully executed (signed by buyer and seller) purchase contract on an eligible property is in hand;
 The homebuyer has at least $500 of their own funds to contribute towards down payment and/or closing costs; and,
 If a first-time homebuyer (typically anyone who has not owned a home in the last three years), a satisfactory homebuyer counseling course is completed prior to the loan closing. Note: Applicants do not have to be first-time homebuyers.

 

What is an Eligible Property?

 

A property would be eligible if all of the following guidelines are met:

 The property will be the homebuyer’s primary residence;
 The property is a single family, townhome, condominium, duplex, multi-unit (up to four family units) or a qualified manufactured home. (Manufactured homes may be eligible if they are taxed as real estate and affixed to a permanent foundation); and,
 The property is subject to a legally enforceable five-year retention mechanism, included in the Deed or as a Declaration of Restrictive Covenants to the Deed, requiring the FHLB Cincinnati be given notice of any refinancing, sale, foreclosure, deed in-lieu of foreclosure, or change in ownership during the five year retention period.

 

How Do I Apply?

 

For more program information, homebuyers should contact a FHLB Cincinnati Member financial institution.

 

A list of Members is available at👉 List of Kentucky Mortgage Lenders for the Welcome Grant Home Program for $20,000 for 2024 KY Homebuyers

 

Kentucky has many programs and grants for first-time home buyers with no money down home loans and down payment assistance programs for 2024

,see list below and let me know if you have any questions at 502-905-3708– call or text

or email me at kentuckyloan@gmail.com

 

LIST BELOW👇

 

• HUD Community Development Block Grants (CDBG) — Kentucky contacts: HUD provides grant money to communities and those funds may be used to assist home buyers
  • Ashland
  • Bowling Green
  • Elizabethtown
  • Hopkinsville
  • Lexington
  • Louisville
  • Owensboro
• HUD HOME Program — Kentucky contacts: HUD provides grant money to communities designated as participating jurisdictions for assisting home buyers, rental assistance, and other housing initiatives
• Community Ventures Corporation Kentucky Home Financing
• The Kentucky Housing Corporation offers:
  • Homeownership Programs
  • Counseling Resources
• 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 home buying assistance programs, including Welcome Home grants. For more information, you may call 1 (888) 345-2246
• Kentucky Area Development Districts (ADDs): Contact your local ADD to find out more about local home buying assistance programs
• 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: Home buying loan programs that reduce the cost of homeownership for low and moderate-income families

2024 Welcome Home Grant Program for Kentucky Home Buyers $20,000

https://vimeo.com/910910021/766309e114?share=copy

 

https://vimeo.com/906852440/4e230ec9bf?share=copy

 

Ask your loan officer about these program

 

2024 Welcome Home Grant Program for Kentucky Home Buyers $20,000

 

 

Kentucky First Time Home Buyer Common Questions and Answers:

 

∘ WHAT KIND OF CREDIT SCORE DO I NEED TO QUALIFY FOR DIFFERENT FIRST TIME HOME BUYER LOANS IN KENTUCKY?

 

Answer. Most lenders will wants a middle credit score of 580 to 620 for KY First Time Home Buyers looking to go no money down. The two most used no money down home loans in Kentucky being USDA Rural Housing and KHC with their down payment assistance will want a 620 middle score on their programs.

 

If you have access to 3.5% down payment, you can go FHA and secure a 30 year fixed rate mortgage with some lenders with a 580 credit score. Even though FHA on paper says they will go down to 500 credit score with at least 10% down payment, you will find it hard to get the loan approved because lenders will create overlays to protect their interest and maintain a good standing with FHA and HUD.

 

Another popular no money down loan is VA. Most VA lenders will want a 580 middle credit score but like FHA, VA on paper says they will go down to a 500 score, but good luck finding a lender for that scenario.

 

A lot of times if your scores are in the high 500’s or low 600’s range, we can do a rapid rescore and get your scores improved within 30 days.

 

∘ DOES IT COSTS ANYTHING TO GET PRE-APPROVED FOR A MORTGAGE LOAN?

 

Answer: Most lenders will not charge you a fee to get pre-approved, but some lenders may want you to pay for the credit report fee upfront. Typically costs for a tri-merge credit report for a single borrower runs about $50 or less. Maybe higher if more borrowers are included on the loan application.

∘ HOW LONG DOES IT TAKE TO GET APPROVED FOR A MORTGAGE LOAN IN KENTUCKY?

 

Answer: Typically if you have all your income and asset documents together and submit to the lender, they typically can get you a pre-approval through the Automated Underwriting Systems within 24 hours.

 

They will review credit, income and assets and run it through the different AUS (Automated Underwriting Systems) for the template for your loan pre-approval. Fannie Mae uses DU, or Desktop Underwriting, FHA and VA also use DU, and USDA uses a automated system called GUS. GUS stands for the Guaranteed Underwriting System.

 

If you get an Automated Approval, loan officers will use this for your pre-approval. If you have a bad credit history, high debt to income ratios,  or lack of down payment,  the AUS will sometimes refer the loan to a manual underwrite, which could result in a longer turn time for your loan pre-approval answer

 

∘ ARE THERE ANY SPECIAL PROGRAMS IN KENTUCKY THAT HELP WITH DOWN PAYMENT OR NO MONEY DOWN LOANS FOR KY FIRST TIME HOME BUYERS?

 

Answer: There are some programs available to KY First Time Home Buyers that offer zero down financing: KHC, USDA, VA, Fannie Mae Home Possible and HomePath, HUD $100 down and City  and Welcome Grants are all available to Kentucky First Time Home buyers if you qualify for them.

 

 

∘ WHEN CAN I LOCK IN MY INTEREST RATE TO PROTECT IT FROM GOING UP WHEN I BUY MY FIRST HOME?

 

Answer: You typically can lock in your mortgage rate and protect it from going up once you have a home picked-out and under contract. You can usually lock in your mortgage rate for free for 90 days, and if you need more time, you can extend the lock in rate for a fee to the lender in case the home buying process is taking a longer time.

The longer the term you lock the rate in the future, the higher the costs because the lender is taking a risk on rates in the future.

Interest rates are kind of like gas prices, they change daily, and the general trend is that they have been going up since the Presidential election in November 2016.

∘ HOW MUCH MONEY DO I NEED TO PAY TO CLOSE THE LOAN?

 

Answer: Depending on which loan program you choose, the outlay to close the loan can vary. Typically you will need to budget for the following to buy a home: Good faith deposit, usually less than $500 which holds the home for you while you close the loan. You get this back at closing; Appraisal fee is required to be paid to lender before closing. Typical costs run around $500-$650 for an appraisal fee; home inspection fees.

 

Even though the lender’s programs don’t require a home inspection, a lot of buyers do get one done. The costs for a home inspection runs around $300-$400. Lastly, termite report. They are very cheap, usually $50 or less, and VA requires one on their loan programs. FHA, KHC, USDAS, Fannie Mae does not require a termite report, but most borrowers get one done.

 

There are also lender costs for title insurance, title exam, closing fee, and underwriting fees that will be incurred at closing too. You can negotiated the seller to pay for these fees in the contract, or sometimes the lender can pay for this with a lender credit. The lender has to issue a breakdown of the fees you will incur on your loan pre-approval.

HOW LONG IS MY PRE-APPROVAL GOOD FOR ON A KENTUCKY MORTGAGE LOAN?

 

Answer: Most lenders will honor your loan pre-approval for 60 days. After that, they will have to re-run your credit report and ask for updated pay stubs, bank statements, to make sure your credit quality and income and assets has not changed from the initial loan pre-approval.

 

HOW MUCH MONEY DO I HAVE TO MAKE TO QUALIFY FOR A MORTGAGE LOAN IN KENTUCKY?

 

Answer: The general rule for most FHA, VA, KHC, USDA and Fannie MAe loans is that we run your loan application through the Automated Underwriting systems, and it will tell us your max loan qualifying ratios.

There are two ratios that matter when you qualify for a mortgage loan. The front-end ratio, is the new house payment divided by your gross monthly income.  The back-end ratio, is the new house payment added to your current monthly bills on the credit report, to include child support obligations and 401k loans.

Car insurance, cell phone bills, utilities bills does not factor into your qualifying rations.

If the loan gets a refer on the initial desktop underwriting findings, then most programs will default to a front end ratio of 31% and a back-end ratio of 43% for most government agency loans that get a refer. You then take the lowest payment to qualify based on the front-end and back-end ratio.

So for example, let’s say you make $3000 a month and you have $400 in monthly bills you pay on the credit report. What would be your maximum qualifying house payment for a new loan?

Take the $3000 x .43%= $1290 maximum back-end ratio house payment. So take the $1290-$400= $890 max house payment you qualify for on the back-end ratio.

Then take the $3000 x .31%=$930 maximum qualifying house payment on front-end ratio.

So now your know! The max house payment you would qualify would be the $890, because it is the lowest payment of the two ratios.

 

Kentucky Welcome Home Grant 2024 Income Limits for the $20,000 Grant.

see below:👇 hit link for Welcome Home Grants Program 2024

2024 Kentucky Welcome Home Grant Income Limits

Use the 80% limits for the Welcome Home Program

Use the 100% limits for the Disaster Reconstruction Program

		100% limits		80% limits
	1-2 Persons		3 + Persons	1-2 Persons	3 + Persons
Adair	$               78,600		$               90,390	$             62,880	$               72,312
Allen	$               78,600		$               91,420	$             62,880	$               73,136
Anderson	$               86,270		$               99,210	$             69,016	$               79,368
Ballard	$               80,400		$               93,800	$             64,320	$               75,040
Barren	$               78,600		$               90,390	$             62,880	$               72,312
Bath	$               94,320		$             110,040	$             75,456	$               88,032
Bell	$               94,320		$             110,040	$             75,456	$               88,032
Boone	$             101,100		$             116,265	$             80,880	$               93,012
Bourbon	$               89,300		$             102,695	$             71,440	$               82,156
Boyd	$               83,040		$               96,880	$             66,432	$               77,504
Boyle	$               80,760		$               94,220	$             64,608	$               75,376
Bracken	$             101,100		$             116,265	$             80,880	$               93,012
Breathitt	$               94,320		$             110,040	$             75,456	$               88,032
Breckinridge	$               87,410		$             100,521	$             69,928	$               80,417
Bullitt	$               89,700		$             103,155	$             71,760	$               82,524
Butler	$               78,600		$               91,420	$             62,880	$               73,136
Caldwell	$               84,480		$               98,560	$             67,584	$               78,848
Calloway	$               82,560		$               96,320	$             66,048	$               77,056
Campbell	$             101,100		$             116,265	$             80,880	$               93,012
Carlisle	$               78,600		$               90,860	$             62,880	$               72,688
Carroll	$               78,600		$               90,390	$             62,880	$               72,312
Carter	$               94,320		$             110,040	$             75,456	$               88,032
Casey	$               94,320		$             110,040	$             75,456	$               88,032
Christian	$               87,590		$             100,728	$             70,072	$               80,582
Clark	$               89,300		$             102,695	$             71,440	$               82,156
Clay	$               94,320		$             110,040	$             75,456	$               88,032
Clinton	$               94,320		$             110,040	$             75,456	$               88,032
Crittenden	$               83,760		$               97,720	$             67,008	$               78,176
Cumberland	$               78,600		$               90,390	$             62,880	$               72,312
Daviess	$               86,950		$               99,992	$             69,560	$               79,994
Edmonson	$               86,650		$               99,647	$             69,320	$               79,718
Elliott	$               94,320		$             110,040	$             75,456	$               88,032

County	100% limits		80% limits
	1-2 Persons	3 + Persons	1-2 Persons	3 + Persons
Estill	$             94,320	$           110,040	$             75,456	$             88,032
Fayette	$             89,300	$           102,695	$             71,440	$             82,156
Fleming	$             78,600	$             90,390	$             62,880	$             72,312
Floyd	$             94,320	$           110,040	$             75,456	$             88,032
Franklin	$             85,430	$             98,244	$             68,344	$             78,595
Fulton	$             78,600	$             90,390	$             62,880	$             72,312
Gallatin	$           101,100	$           116,265	$             80,880	$             93,012
Garrard	$             87,210	$           100,291	$             69,768	$             80,233
Grant	$             79,560	$             92,820	$             63,648	$             74,256
Graves	$             83,160	$             97,020	$             66,528	$             77,616
Grayson	$             78,600	$             90,390	$             62,880	$             72,312
Green	$             78,600	$             90,390	$             62,880	$             72,312
Greenup	$             83,040	$             96,880	$             66,432	$             77,504
Hancock	$             86,950	$             99,992	$             69,560	$             79,994
Hardin	$             86,750	$             99,762	$             69,400	$             79,810
Harlan	$             94,320	$           110,040	$             75,456	$             88,032
Harrison	$             87,250	$           100,337	$             69,800	$             80,270
Hart	$             78,600	$             90,390	$             62,880	$             72,312
Henderson	$             87,300	$           100,395	$             69,840	$             80,316
Henry	$             89,700	$           103,155	$             71,760	$             82,524
Hickman	$             79,560	$             92,820	$             63,648	$             74,256
Hopkins	$             80,640	$             94,080	$             64,512	$             75,264
Jackson	$             94,320	$           110,040	$             75,456	$             88,032
Jefferson	$             89,700	$           103,155	$             71,760	$             82,524
Jessamine	$             89,300	$           102,695	$             71,440	$             82,156
Johnson	$             94,320	$           110,040	$             75,456	$             88,032
Kenton	$           101,100	$           116,265	$             80,880	$             93,012
Knott	$             94,320	$           110,040	$             75,456	$             88,032
Knox	$             94,320	$           110,040	$             75,456	$             88,032
Larue	$             86,750	$             99,762	$             69,400	$             79,810
Laurel	$             78,600	$             90,390	$             62,880	$             72,312
Lawrence	$             94,320	$           110,040	$             75,456	$             88,032
Lee	$             94,320	$           110,040	$             75,456	$             88,032
Leslie	$             94,320	$           110,040	$             75,456	$             88,032
Letcher	$             94,320	$           110,040	$             75,456	$             88,032
Lewis	$             94,320	$           110,040	$             75,456	$             88,032
Lincoln	$             78,600	$             90,390	$             62,880	$             72,312
Livingston	$             82,320	$             96,040	$             65,856	$             76,832
Logan	$             80,760	$             94,220	$             64,608	$             75,376
Lyon	$             87,310	$           100,406	$             69,848	$             80,325

County	100% limits		80% limits
	1-2 Persons	3 + Persons	1-2 Persons	3 + Persons
McCracken	$             87,130	$           100,199	$               69,704	$             80,159
McCreary	$             94,320	$           110,040	$               75,456	$             88,032
McLean	$             86,950	$               99,992	$             69,560	$             79,994
Madison	$             86,910	$               99,946	$             69,528	$             79,957
Magoffin	$             94,320	$           110,040	$               75,456	$             88,032
Marion	$               80,760	$               94,220	$             64,608	$             75,376
Marshall	$               86,030	$               98,934	$             68,824	$             79,147
Martin	$               94,320	$           110,040	$               75,456	$             88,032
Mason	$             85,920	$           100,240	$               68,736	$             80,192
Meade	$               85,790	$               98,658	$             68,632	$             78,926
Menifee	$               94,320	$           110,040	$               75,456	$             88,032
Mercer	$               86,730	$               99,739	$             69,384	$             79,791
Metcalfe	$               94,320	$           110,040	$               75,456	$             88,032
Monroe	$               78,600	$               90,390	$             62,880	$             72,312
Montgomery	$             78,600	$               91,140	$             62,880	$             72,912
Morgan	$               94,320	$           110,040	$               75,456	$             88,032
Muhlenberg	$             78,600	$               91,700	$             62,880	$             73,360
Nelson	$               85,170	$               97,945	$             68,136	$             78,356
Nicholas	$               78,600	$               90,860	$             62,880	$             72,688
Ohio	$               78,600	$               90,390	$             62,880	$             72,312
Oldham	$             89,700	$           103,155	$               71,760	$             82,524
Owen	$               78,600	$               91,700	$             62,880	$             73,360
Owsley	$               94,320	$           110,040	$               75,456	$             88,032
Pendleton	$           101,100	$           116,265	$               80,880	$             93,012
Perry	$               94,320	$           110,040	$               75,456	$             88,032
Pike	$               94,320	$           110,040	$               75,456	$             88,032
Powell	$               94,320	$           110,040	$               75,456	$             88,032
Pulaski	$             78,600	$               90,390	$             62,880	$             72,312
Robertson	$             94,320	$           110,040	$               75,456	$             88,032
Rockcastle	$             94,320	$           110,040	$               75,456	$             88,032
Rowan	$             94,320	$           110,040	$               75,456	$             88,032
Russell	$             78,600	$               90,860	$             62,880	$             72,688
Scott	$               89,300	$           102,695	$               71,440	$             82,156
Shelby	$               92,700	$           106,605	$               74,160	$             85,284
Simpson	$             82,920	$               96,740	$             66,336	$             77,392
Spencer	$               89,700	$           103,155	$               71,760	$             82,524
Taylor	$             78,600	$               90,390	$             62,880	$             72,312
Todd	$             78,600	$               90,390	$             62,880	$             72,312
Trigg	$               87,590	$           100,728	$               70,072	$             80,582
Trimble	$               86,770	$               99,785	$             69,416	$             79,828

County	100% limits		80% limits
	1-2 Persons	3 + Persons	1-2 Persons	3 + Persons
Union	$             78,600	$             91,420	$             62,880	$             73,136
Warren	$             86,650	$             99,647	$             69,320	$             79,718
Washington	$             87,090	$           100,153	$             69,672	$             80,122
Wayne	$             94,320	$           110,040	$             75,456	$             88,032
Webster	$             78,600	$             90,390	$             62,880	$             72,312
Whitley	$             94,320	$           110,040	$             75,456	$             88,032
Wolfe	$             94,320	$           110,040	$             75,456	$             88,032
Woodford	$             89,300	$           102,695	$             71,440	$             82,156

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

 

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

 

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).