There are several alternative mortgage options
available if you don’t have a down payment,
haven’t established a strong credit history,
or are unable to supply documentation for a
“traditional” mortgage. Some options include:
DOWN PAYMENT ASSISTANCE (DPA) by KHC
These programs often come from states and
municipalities allowing you to purchase a
home with a smaller down payment. Many
DPA programs come in the form of a repayable
second mortgage or a deferred or forgiven
grant
Kentucky FHA (FEDERAL HOUSING ADMINISTRATION)
An FHA loan is insured by the Federal
Housing Administration and is ideal for low-
or moderate-income individuals or families,
or borrowers with past credit problems or
limited down payment resources.
FHA loans are popular for Kentucky first-time home buyers because they
offer down payment options as low as 3.5% and
an upfront Mortgage Insurance Premium (MIP)
financed into your loan amount. 100% of the
money needed at closing is allowed to be a gift.
FHA also allows a “streamline” refinance when
rates go down to lower your interest rate.
Kentucky VA (VETERAN’S ADMINISTRATION)
If you have served or are currently serving in
the U.S. military, we thank you for your service!
The VA loan program offers low rates and low-
or no-money-down payment options. VA loans
do not require mortgage insurance, and also
offer a low-cost Interest Rate Reduction Loan
(IRRL) program allowing you to refinance and
lower your mortgage payment. The maximum
VA loan amount varies, so check with your
Mortgage Professional for
up-to-date information.
Kentucky USDA Mortgage Loans
If you plan to live in a more rural area, the USDA
(United States Department of Agriculture) has
a variety of loans to help low- or moderate
income individuals and families buy, repair
or renovate a home. USDA loans often carry
lower interest rates and do not require a cash
down payment. Not all properties qualify, so
check with your
KENTUCKY HOME PURCHASE DOCUMENT CHECKLIST
l. INCOME
SALARY/HOURLY
Most recent 30 days of pay stubs
Last 2 years of W2s
Most recent tax return (pages 1 and 2)
SELF EMPLOYED (all schedules)
2 years personal tax returns
2 years business tax returns
P&L and balance sheet through most recent
quarter (FHA & Jumbo required)
OTHER (Social Security/Pension/Annuity)
2 years 1099s
Awards letter
ASSETS (every page)
Most recent 2 months bank statements
Most recent quarterly statement for 401K,
Retirement, Profit Sharing accounts
PROPERTY
Purchase Contract: disclosures, addendums,
copy of Earnest Money check
Homeowner’s Insurance: Agent name and
MISCELLANEOUS (if applicable)
Divorce Decree
*These documents may
Child support order
upon receipt of fully ex
Bankruptcy documents with discharge
VA: Certificate of Eligibility (COE) / DD-214 Papers
OTHER PROPERTIES OWNED:
Mortgage Statement
Proof of Insurance
Proof of any association fees
GIFT LETTER:
Evidence of transfer/deposit (Conventional)
Evidence of transfer/deposit and document donor ability to gift (FHA)
THE 8 STEPS OF HOMEOWNERSHIP
There are several events that will occur throughout your new home purchase process.
This guide will help you fully understand the process to eliminate stress:
- Save for Down Payment & Credit Scores
- Apply for Pre-Approval
- Determine Housing Criteria & Neighborhood
- Hire an Agent & Start Your Home Search
- Complete the Loan Application
- Move Through the Loan Process
- Set a Closing Date
- Understand Monthly Mortgage Payments
STEP 1: SAVE FOR
DOWN PAYMENT & CREDIT SCORES
Buying a home requires some upfront cash, including your down payment and closing costs.
Financial experts typically recommend a down payment of 20% of the purchase price. However,
you can purchase a home with a down payment as little as 0-3% of the purchase price.
While you’re working on saving for your down payment, keep an eye on your credit score. Your
credit score is a number that indicates how much of a credit risk you pose when you borrow
money and helps determine your interest rate. Typically, the higher your score, the lower your rate.
There are three different credit scores agencies: Equifax (BEACON),
Experian (FICO Risk Model), and TransUnion (FICO Risk Score, Classic).
Credit scores range from 300-850. Each credit reporting agency gives
you different scores, but all three should be pretty similar.
Your credit score is divided into five factors:
10%
10%
35%
Payment History……………………………………………………. 35%
Amounts Owed……………………………………………………… 30%
Length of Credit History………………………………………. 15%
Inquiries……………………………………………………………………. 10%
Type of Credit Used………………………………………………. 10%
15%
30%
Often, when you’re shopping for a mortgage, you may look for the best rate from multiple lenders.
Each lender may pull your credit report which is typically bad for your score. However, credit
reporting agencies distinguish a single loan search from a search for many new credit lines by the
length of time the inquiries occur. Avoid lowering your score by completing your rate shopping
within a short period of time, such as 14 days.
Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
Text/call 502-905-3708
kentuckyloan@gmail.com
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#57916http://www.nmlsconsumeraccess.org/
NMLS Consumer Access for Joel Lobb
Joel Lobb, American Mortgage Solutions (Statewide)
Joel has worked with KHC for 12 of his 20 years in the mortgage lending business. Joel said, “A lot of my clients would not have been able to purchase a home of their own or possibly delayed their purchase due to lack of down payment but with the $6,000 DAP loan program, this gets them into a house sooner and starts their path to homeownership while building equity instead of throwing their money away.”
When you’re ready to purchase a home in Joel’s area, contact him at:
Phone: 502-905-3708
Email: Kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com
Kentucky First-Time Homebuyer Loan Programs for FHA, VA, KHC and USDA Mortgage Loans in Kentucky 