Kentucky FHA Loan Requirements for 2020

Kentucky FHA Loan Requirements for 2020 to include Credit Fico Scores, Down Payment, Income and Job history

FHA

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 2019 it is as follows:

The FHA national low-cost area mortgage limits, which are set at 65 percent of the national conforming limit of $510,400 for a one-unit property, are, by property unit number, as follows:
• One-unit: $331,760
• Two-unit: $42,800
• Three-unit: $513,400
• Four-unit: $638,100

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)

Kentucky FHA Loan Requirements

The requirements for Kentucky FHA loans are set by HUD.

Borrowers must have a steady employment history of the last two years within the same industry or line of work. Recent college graduates can use their transcripts to supplant the 2 year work history rule as long as it makes sense.

Self-Employed will need a 2 year history of tax returns filed with IRS. They will take a 2 year average.

FHA requires a 3.5% down payment. Can be gifted from family member or from retirement savings plan, or money saved-up. Any type of cash deposits are not allowed for down payments. No exceptions to this rule!! This is one of the biggest issues I see in FHA underwriting nowadays.

FHA loans are for primary residence occupancy. Not rental houses.

Borrowers must have a property appraisal from a FHA-approved appraiser.

Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 43 percent. If the Automated Underwriting System gives you an Approved Eligible you can go higher on the debt ratios

Borrowers must have a minimum credit score of 580 for maximum financing with a 3.5% down payment

Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. Most lenders will not go below 620 score, and very few lenders will go to 580 score. It’s best to work on getting your scores up before you apply or work with a loan officer to improve them.

2 years removed from Chapter 7 is required with good pay history after bankruptcy

1 year removed from Chapter 13 is okay with an excellent pay history with the Chapter 13 plan and permission from trustee. You will need to qualify with the Chapter 13 payment along with new house payment. Again, scores will play into your loan pre-approval.

Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you’ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.

Max FHA loan in Kentucky is between $331,760.00 depending on the county in Kentucky
I can answer your questions and usually get you pre-approved the same day.

FHA

Low Down Payment which can be 100% gift from family member or Grant Program
Seller can pay closing costs-Maximum 6% of purchase price
There is maximum mortgage amount for each county. Check FHA loan limit for your county.
500 Minimum Credit Score
More flexible underwriting guidelines and extenuating credit and income circumstances may be considered by the lender.
Non-occupant co-signers are allowed on this program.
FHA Approved Condos-Single family home-2-4 unit properties, and PUDs are eligible.
Fast automated underwriting approval available. Also, the file can be manually underwritten by a live person to get loan approval if you do not receive approval through automated underwriting system.

FHA Foreclosure Program

Must be HUD Owned property or FHA Foreclosure in HUD Participating Communities
$100 Down Payment than standard FHA program
620 minimum credit score
Single family, 1-4 unit properties, HUD approved condominiums, and PUDS eligible

Down Payment Plus Assistance Program

1. Covington Homebuyer Assistance Program for 2020

Up to $5000 Grant to buy a home in the Northern Kentucky Area of The Homebuyer Assistance Program for 2019 is funded through the HOME Program and administered by the Northern Kentucky HOME Consortium through the City of Covington’s Neighborhood Services Department. The purpose of the program is to increase the number of homeowners in the Northern Kentucky HOME Consortium cities of Ludlow, Newport, Bellevue, and Dayton

$5000 Home buyer grant for 2020 Northern Kentucky

Borrower’s gross annual household income must be at or below 80% of the Area Median Income ($43,900 for a single person, $62,650 for a 4 person household). Borrowers must attend a HUD approved homebuyer education course.

All properties must be one to two units, owner-occupied or vacant, and meet minimum local housing standards.

Up to $5,000 to cover the lender required down payment and customary settlement charges to the borrower.

Interest Rate/Loan Term: 0%, 5 years

Monthly Payment Amount: No monthly payments. The loan will be forgiven if the owner occupies the home as their principal residence for 5 years from the date of purchase.

b. Credit: Credit history and documentation which indicates substantial evidence of borrower’s ability to pay will be reviewed. Reports from a Credit Bureau will be obtained for all borrowers.
c. Education: All applicants must participate in a HUD/City-approved homebuyer education course and must present a certificate of completion prior to loan closing.

d. Loan Underwriting: Borrower’s debt ratios cannot exceed 31% and 43% to ensure that the borrower’s income is sufficient to cover their mortgage and other monthly obligations. The interest rate on the first mortgage cannot be higher than 2.5% above the average 30 year conventional loan rate as published by Freddie Mac in the Weekly Primary Mortgage Market Survey. Borrowers may not use first mortgage financing with balloon payments, adjustable rates, or other terms that are determined to be subprime. Adjustable rate mortgages may be considered if the City determines them to be the most affordable financing option for the borrower.

e. Non occupant co-borrowers will be allowed, however debt ratio limitations will apply to primary borrower’s household income only.

f. Liquid Asset Limitation Policy: The applicant(s) must not have liquid assets in excess of the following amounts at time of loan application:

 $10,000: Liquid assets in excess of this amount will be required to be used in the purchase transaction prior to the use of any Program funds.

 Stocks and other readily salable securities will be considered liquid assets unless they are restricted by IRA, 401(k) or other similar requirements. Funds in IRAs, 401(k) plans or other qualified retirement accounts will not be considered liquid assets.

 Applicants that are at or near retirement age may have retirement savings, which will not have to be contributed, unless such savings exceed an amount that
Persons in Household

2. Kentucky Housing Corporation Down Payment Assistance for 2020.

Regular DAP

Purchase price up to $314,257 with Secondary Market.

Assistance in the form of a loan up to $6,000 in $100 increments.

Repayable over a ten-year term at 5.50 percent.

Available to all KHC first-mortgage loan recipients.

Affordable DAP

Purchase price up to $314,257 with Secondary Market.

Assistance up to $6,000.

Repayable over a ten-year term at 1.00 percent.

Borrowers must meet Affordable DAP income limits.

More about down payment and closing costs

No liquid asset review and no limit on borrower reserves.

Specific credit underwriting standards may apply to down payment programs.

3. Welcome Home $5000 Grant for Kentucky Homebuyers 2020

The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership through a program called the Welcome Home Program. Welcome Home funds are available to Members as grants to assist homebuyers.

Welcome Home grants are limited to $5,000 per household, households are eligible only if the total household income is at or below 80% of Mortgage Revenue Bond (MRB) income limits, and funds are offered on a “first-come, first-served” basis. Other program requirements are identified below.

What are the Program Requirements?

Below is an abbreviated list of program eligibility requirements:

The total income for all occupants must be at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located. The FHLB has an Income and Affordability Workbook to assist in determining household income eligibility.
Home-buyers must contribute at least $500 of their own funds towards down payment and/or closing costs.
WHP applicants do not have to be first-time home buyers. However, all first-time home buyers are required to complete a home ownership counseling program.
WHP grant funds are intended only for home buyers who qualify for the first mortgage based on their own merit. Co-signors and co-borrowers are not allowed unless they will occupy the home as their primary residence and their incomes are included in determining eligibility.
WHP grant funds may be used in conjunction with other local, state and federal funding sources and with the FHLB Cincinnati’s Community Investment Cash Advance Programs.
The Member who reserves the WHP funds must originate the first loan, but the loan may close in the name of a third party.
The interest rate for the first mortgage may not exceed 7.50 percent.
The interest rate for the second mortgage may not exceed 11.00 percent.
Only second mortgages provided by formal organizations, community development financial institutions, housing finance agencies, non-profit organizations, etc. are acceptable.
All eligible property assisted with WHP funds is subject to a five-year retention mechanism (Retention Agreement), which may require the household to repay all, or a portion, of the subsidy, if the home is sold or refinanced within five years from the closing of the transaction.

Kentucky WELCOME HOME GRANT Available beginning March 4, 2021

*Welcome Home grant offered by FHLB of Cincinnati is available on a “first-come,
first-serve” basis only to the extent the funds are available.
Buyers do not have to be first-time home-buyers.
Home-buyers must contribute $500 toward down payment or closing costs, and cannot get cash back. Closing costs include appraisal, underwriter, title exam, credit reporting, title insurance, recording and flood determination fees.
First time home buyers must complete a home buyer counseling course.
Home buyer’s income cannot exceed specific county income limits.
The home must meet specific condition requirements. Manufactured housing may be allowed. No 203k programs allowed.
Offer is subject to credit approval. Contact a Mortgage Lender for details, limits and guidelines, or if you have any questions.
Limited Time Offer

Kentucky Income limits for Welcome Home Grant for 2020

Income limits are obtained from the state housing finance agency for each state.

Use the 80% limits for the Welcome Home Program.*******

Use the 100% limits for the Disaster Reconstruction Program.

Kentucky

County 100% limits 80% limits****Welcome Home Funds limit

1-2 Persons 3 + Persons 1-2 Persons 3 + Persons

Adair $71,040 $82,880 $56,832 $66,304

Allen $71,040 $82,880 $56,832 $66,304

Anderson $69,400 $79,810 $55,520 $63,848

Ballard $59,200 $68,080 $47,360 $54,464

Barren $59,200 $68,080 $47,360 $54,464

Bath $71,040 $82,880 $56,832 $66,304

Bell $71,040 $82,880 $56,832 $66,304

Boone $78,300 $90,045 $62,640 $72,036

Bourbon $84,120 $98,140 $67,296 $78,512

Boyd $59,200 $68,080 $47,360 $54,464

Boyle $71,040 $82,880 $56,832 $66,304

Bracken $93,960 $109,620 $75,168 $87,696

Breathitt $71,040 $82,880 $56,832 $66,304

Breckinridge $71,040 $82,880 $56,832 $66,304

Bullitt $71,500 $82,225 $57,200 $65,780

Butler $71,040 $82,880 $56,832 $66,304

Caldwell $59,200 $68,080 $47,360 $54,464

Calloway $59,200 $68,080 $47,360 $54,464

Campbell $78,300 $90,045 $62,640 $72,036

Carlisle $71,040 $82,880 $56,832 $66,304

Carroll $71,040 $82,880 $56,832 $66,304

Carter $71,040 $82,880 $56,832 $66,304

Casey $71,040 $82,880 $56,832 $66,304

Christian $59,200 $68,080 $47,360 $54,464

Clark $84,120 $98,140 $67,296 $78,512

Clay $71,040 $82,880 $56,832 $66,304

Clinton $71,040 $82,880 $56,832 $66,304

Crittenden $71,040 $82,880 $56,832 $66,304

Cumberland $71,040 $82,880 $56,832 $66,304

Daviess $62,300 $71,645 $49,840 $57,316

Edmonson $71,040 $82,880 $56,832 $66,304

Elliott $71,040 $82,880 $56,832 $66,304

Estill $71,040 $82,880 $56,832 $66,304

Fayette $70,100 $80,615 $56,080 $64,492

Fleming $71,040 $82,880 $56,832 $66,304

Floyd $71,040 $82,880 $56,832 $66,304

Franklin $65,200 $74,980 $52,160 $59,984

Fulton $71,040 $82,880 $56,832 $66,304

Gallatin $93,960 $109,620 $75,168 $87,696

Garrard $71,040 $82,880 $56,832 $66,304

Grant $71,040 $82,880 $56,832 $66,304

Graves $59,200 $68,080 $47,360 $54,464

Grayson $71,040 $82,880 $56,832 $66,304

Green $71,040 $82,880 $56,832 $66,304

Greenup $59,200 $68,080 $47,360 $54,464

Hancock $62,300 $70,725 $49,840 $56,580

Hardin $61,500 $72,220 $49,200 $57,776

Harlan $71,040 $82,880 $56,832 $66,304

Harrison $71,040 $82,880 $56,832 $66,304

Hart $71,040 $82,880 $56,832 $66,304

Henderson $65,100 $74,865 $52,080 $59,892

Henry $85,800 $100,100 $68,640 $80,080

Hickman $71,040 $82,880 $56,832 $66,304

Hopkins $71,040 $82,880 $56,832 $66,304

Jackson $71,040 $82,880 $56,832 $66,304

Jefferson $71,500 $82,225 $57,200 $65,780

Jessamine $70,100 $80,615 $56,080 $64,492

Johnson $71,040 $82,880 $56,832 $66,304

Kenton $78,300 $90,045 $62,640 $72,036

Knott $71,040 $82,880 $56,832 $66,304

Knox $71,040 $82,880 $56,832 $66,304

Larue $73,800 $86,100 $59,040 $68,880

Laurel $59,200 $68,080 $47,360 $54,464

Lawrence $71,040 $82,880 $56,832 $66,304

Lee $71,040 $82,880 $56,832 $66,304

Leslie $71,040 $82,880 $56,832 $66,304

Letcher $71,040 $82,880 $56,832 $66,304

Lewis $71,040 $82,880 $56,832 $66,304

Lincoln $71,040 $82,880 $56,832 $66,304

Livingston $59,200 $68,080 $47,360 $54,464

Logan $71,040 $82,880 $56,832 $66,304

Lyon $60,500 $69,575 $48,400 $55,660

Madison $79,080 $92,260 $63,264 $73,808

Magoffin $71,040 $82,880 $56,832 $66,304

Marion $71,040 $82,880 $56,832 $66,304

Marshall $59,600 $68,540 $47,680 $54,832

Martin $71,040 $82,880 $56,832 $66,304

Mason $71,040 $82,880 $56,832 $66,304

McCracken $60,800 $69,920 $48,640 $55,936

McCreary $71,040 $82,880 $56,832 $66,304

McLean $74,760 $87,220 $59,808 $69,776

Meade $60,500 $69,575 $48,400 $55,660

Menifee $71,040 $82,880 $56,832 $66,304

Mercer $59,200 $68,080 $47,360 $54,464

Metcalfe $71,040 $82,880 $56,832 $66,304

Monroe $71,040 $82,880 $56,832 $66,304

Montgomery $71,040 $82,880 $56,832 $66,304

Morgan $71,040 $82,880 $56,832 $66,304

Muhlenberg $59,200 $68,080 $47,360 $54,464

Nelson $74,520 $86,940 $59,616 $69,552

Nicholas $71,040 $82,880 $56,832 $66,304

Ohio $71,040 $82,880 $56,832 $66,304

Oldham $71,500 $82,225 $57,200 $65,780

Owen $71,040 $82,880 $56,832 $66,304

Owsley $71,040 $82,880 $56,832 $66,304

Pendleton $93,960 $109,620 $75,168 $87,696

Perry $71,040 $82,880 $56,832 $66,304

Pike $71,040 $82,880 $56,832 $66,304

Powell $71,040 $82,880 $56,832 $66,304

Pulaski $71,040 $82,880 $56,832 $66,304

Robertson $71,040 $82,880 $56,832 $66,304

Rockcastle $71,040 $82,880 $56,832 $66,304

Rowan $71,040 $82,880 $56,832 $66,304

Russell $71,040 $82,880 $56,832 $66,304

Scott $84,120 $98,140 $67,296 $78,512

Shelby $75,200 $86,480 $60,160 $69,184

Simpson $59,200 $68,080 $47,360 $54,464

Spencer $85,800 $100,100 $68,640 $80,080

Taylor $59,200 $68,080 $47,360 $54,464

Todd $71,040 $82,880 $56,832 $66,304

Trigg $59,200 $68,080 $47,360 $54,464

Trimble $85,800 $100,100 $68,640 $80,080

Union $59,200 $68,080 $47,360 $54,464

Warren $59,200 $68,080 $47,360 $54,464

Washington $71,040 $82,880 $56,832 $66,304

Wayne $71,040 $82,880 $56,832 $66,304

Webster $71,040 $82,880 $56,832 $66,304

Whitley $71,040 $82,880 $56,832 $66,304

Wolfe $71,040 $82,880 $56,832 $66,304

Woodford $70,100 $80,615 $56,080 $64,492

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

NMLS Consumer Access for Joel Lobb

Accessibility for Website

Privacy Policy

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

— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

Kentucky FHA Mortgage Loans Guidelines

Kentucky FHA Loan Requirements

The requirements for Kentucky FHA loans are set by HUD.

Borrowers must have a steady employment history of the last two years within the same industry or line of work. Recent college graduates can use their transcripts to supplant the 2 year work history rule as long as it makes sense.
Self-Employed will need a 2 year history of tax returns filed with IRS. They will take a 2 year average.
FHA requires a 3.5% down payment. Can be gifted from family member or from retirement savings plan, or money saved-up. Any type of cash deposits are not allowed for down payments. No exceptions to this rule!! This is one of the biggest issues I see in FHA underwriting nowadays.
FHA loans are for primary residence occupancy. Not rental houses.
Borrowers must have a property appraisal from a FHA-approved appraiser.
Borrowers’ front-end ratio (mortgage payment plus HOA fees…

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Kentucky Homebuyers Down Payment Grants for 2020

List of Kentucky Homebuyers Down Payment Grants for 2020

Kentucky Housing Corporation Down Payment Assistance for 2020.

Down Payment Closing Cost Assistance

KHC recognizes that down payments, closing costs, and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP

Purchase price up to $314,827 with Secondary Market.
Assistance in the form of a loan up to $6,000 in $100 increments.
Repayable over a ten-year term at 5.50 percent.
Available to all KHC first-mortgage loan recipients.

Affordable DAP

Purchase price up to $314,827 with Secondary Market.
Assistance up to $6,000.
Repayable over a ten-year term at 1.00 percent.
Borrowers must meet Affordable DAP income limits.

KHC is used for mostly applicants in urban areas of Kentucky that don’t have access to USDA or other government agencies to buy a home with no down payment.

A minimum of 3.5% down payment is required with this loan. Down payment assistance loans are available from $4500-$6,000, and are paid back over a period of ten years. They are typically offered to buyers with limited cash reserves and carry an interest rate of 1 to 5.5%. These loans can make a critical difference to buyers for whom the down payment is an obstacle. Buyers whose 3.5% down payment is less than the $6000 limit may choose to use the remainder of a down payment loan to pay closing costs, further reducing the amount needed to bring to closing.

Welcome Home $5000 Grant for Kentucky Homebuyers 2020

The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership through a program called the Welcome Home Program. Welcome Home funds are available to Members as grants to assist homebuyers.

Welcome Home grants are limited to $5,000 per household, households are eligible only if the total household income is at or below 80% of Mortgage Revenue Bond (MRB) income limits, and funds are offered on a “first-come, first-served” basis. Other program requirements are identified below.

What are the Program Requirements?

Below is an abbreviated list of program eligibility requirements:

The total income for all occupants must be at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located. The FHLB has an Income and Affordability Workbook to assist in determining household income eligibility.
Homebuyers must contribute at least $500 of their own funds towards down payment and/or closing costs.
WHP applicants do not have to be first-time homebuyers. However, all first-time homebuyers are required to complete a homeownership counseling program.
WHP grant funds are intended only for homebuyers who qualify for the first mortgage based on their own merit. Co-signors and co-borrowers are not allowed unless they will occupy the home as their primary residence and their incomes are included in determining eligibility.
WHP grant funds may be used in conjunction with other local, state and federal funding sources and with the FHLB Cincinnati’s Community Investment Cash Advance Programs.
The Member who reserves the WHP funds must originate the first loan, but the loan may close in the name of a third party.
The interest rate for the first mortgage may not exceed 7.50 percent.
The interest rate for the second mortgage may not exceed 11.00 percent.
Only second mortgages provided by formal organizations, community development financial institutions, housing finance agencies, non-profit organizations, etc. are acceptable.
All eligible property assisted with WHP funds is subject to a five-year retention mechanism (Retention Agreement), which may require the household to repay all, or a portion, of the subsidy, if the home is sold or refinanced within five years from the closing of the transaction.

Kentucky WELCOME HOME GRANT Available beginning March 4, 2020

*Welcome Home grant offered by FHLB of Cincinnati is available on a “first-come,
first-serve” basis only to the extent the funds are available.
Buyers do not have to be first-time homebuyers.
Homebuyers must contribute $500 toward down payment or closing costs, and cannot get cash back. Closing costs include appraisal, underwriter, title exam, credit reporting, title insurance, recording and flood determination fees.
First time homebuyers must complete a homebuyer counseling course.
Homebuyer’s income cannot exceed specific county income limits.
The home must meet specific condition requirements. Manufactured housing may be allowed. No 203k programs allowed.
Offer is subject to credit approval. Contact a Mortgage Lender for details, limits and guidelines, or if you have any questions.
Limited Time Offer

Kentucky Income limits for Welcome Home Grant for 2020

Income limits are obtained from the state housing finance agency for each state.

Use the 80% limits for the Welcome Home Program.*******

Use the 100% limits for the Disaster Reconstruction Program.

Kentucky

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 tates. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. subject to change and are subject to borrower(s) qualification.

HOW DO I GET MY CREDIT SCORE THAT MATTERS

Source: HOW DO I GET MY CREDIT SCORE THAT MATTERS

What factors influence how long it takes to repair your credit?

When a new client comes into our office to first go over their credit repair plan, they always ask the question, “How long will it take to bring my score back up?”

Of course, it’s an important thing to know, but the answer has a lot to do with a multitude of factors. The good news is that you can control most of these factors by employing a responsible and effective credit repair with Blue Water Credit. Together, we can make sure that we bring your FICO to top form as quickly as possible!

Before we dig into these factors, let’s take a look at what we do know for sure. According to Vantage Score, here are some general timelines for how long it typically takes to improve your credit score after certain events or items report. Of course, individual cases may vary.

Applying for new credit

Average recovery time: 3 months

Negative impact on your credit score: Light

Closing an existing account

Average recovery time: 3 months

Negative impact on your credit score: Light

Maxing out your credit card

Average recovery time: 3 months

Negative impact on your credit score: Medium

Missing payments/defaulting

Average recovery time: 18 months

Negative impact on your credit score: Heavy

Chapter 7 or 11 Bankruptcy

Average recovery time: 6-7 years

Negative impact on your credit score: Heavy

Here are some factors that help determine the timeframe for credit repair:

The severity of the damage

Of course, different negative items that hit your credit report hold different weight, lowering your score accordingly. For instance, one late payment on a credit card will ding your score far less than a collection, foreclosure, or bankruptcy. The bigger the damage to your score, the longer it may take to bring it back up to your previous high.

How you handle your credit repair (and WHO is handling it!)

Fixing your credit is all based on disputing negative items, duplicates, incorrect information, mistakes, and anything else that’s acting like an anchor. The process involves writing and submitting formal dispute letters, and you have to do that with each of the credit bureaus for each negative item you want to flag. Once those disputes are registered, the credit bureaus are mandated to get back to you within a certain timeframe, either with evidence that the credit item is accurate, or to remove it. Therefore, you need to be incredibly organized, diligent, and persistent when handling your credit repair in order for it to move as quickly and efficiently as possible. Too many people try to do it on their own, only to fall off very quickly and see no progress (or even hurt their credit more!) Using a reputable and established credit repair company like Blue Water Credit is the best path to a better credit score!

How many accounts you need to repair

If you have one negative account on your report, you’ll probably be able to repair your credit and improve your score much faster than if you have two, five, or even ten negative items to dispute. Not only is it more work, but we may have to resubmit dispute letters more than once for some accounts, which stretches out the timeline.

Your credit score when you start

The higher your score when the negative reporting hits, the more difficult it is to recover, and therefore takes longer.) FICO offers some useful information regarding how long it may take to rebuild your credit score based on where it started:

Late payment on mortgage

Starting score:

780 FICO 3-7 years

720 FICO 3 years

680 FICO 9 months

Short sale of home

Starting score:

780 FICO 7 years

720 FICO 7 years

680 FICO 3 years

Foreclosing on home

Starting score:

780 FICO 7 years

720 FICO 7 years

680 FICO 3 years

Chapter 7 or 11 Bankruptcy

Starting score:

780 FICO 7 to 10 years

720 FICO 7 to 10 years

680 FICO 5 years

Doing everything right during the process

You may think it goes without saying, but you’ll have to make manage your credit correctly during the repair process to avoid adding any other black marks on your report. For instance, you should pay all of your payments on time without fail and avoid maxing out credit cards or opening new accounts that may hurt you. Why is this so important? These days, identity theft, data hacks, and financial fraud affects about one out of every seven people, so you’ll want to monitor your credit and protect your score from sinking like a stone because of foul play.

Your ability (and desire) to pay down debt

Your credit utilization makes up about 30% of your FICO score, which is just the ratio of debt you owe versus your total available balance (second only to payment history at 35%). So, you should pay down your credit cards and revolving accounts, optimally to about 10% of your total balance if you want to improve your score (but at least below 30%). However, be careful not to pay off certain accounts completely, close older accounts that are helping you, or pay off collections – all of which will hurt your score.

Adding new positive tradelines

When we open some credit files, we see that consumers actually need more credit. Keeping a good mix of revolving, installment, and mortgage debts accounts for about 10% of your score, so we will advise you what you need to optimize that factor and improve your score as quickly as possible. Additionally, some people who have seen their score bottom out need to add new accounts using secured credit cards just to get started and become creditworthy again.

More Information below about Credit Scores and Qualifying for a Mortgage Loan in Kentucky below:

see links

Credit Inquires impact on Credit Score (9)
credit report (21)
Credit Score (27)
Credit Scores (12)

I can answer your questions and usually get you pre-approved the same day.

Call or Text me at 502-905-3708 with your mortgage questions.
Email Kentuckyloan@gmail.com

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

https://kentuckyloan.blogspot.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 view of my employer. Not all products or services mentioned on this site may fit all people.
, NMLS ID# 57916, (www.nmlsconsumeraccess.org). I lend in the following states: Kentucky

Kentucky First Time Home Buyer Questions to Ask Your Lender?

∘ 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 640 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 640 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 620 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 Grants are all available to Kentucky First Time Home buyers if you qualify for them. Ask your loan officer about these programs
∘ 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 kinda 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 $400-$450 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.

Joel Lobb
Senior Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

10602 Timberwood Circle, Suite 3

Louisville, KY 40223

text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.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 view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

Kentucky Housing Corporation (KHC) has $3 million available in MRB, Special Funding, for active or non-active duty veterans at a 2 percent interest rate, fixed for 30 years.

Screenshot (61) Screenshot (62)

Special Funding, for active or non-active duty veterans at a 2 percent interest rate, fixed for 30 years.

Operation KY Home – MRB Special Funding Program

Kentucky Housing Corporation (KHC) has $3 million available in MRB, Special Funding, for active or non-active duty veterans at a 2 percent interest rate, fixed for 30 years. This special funding program is available on a first-come, first-served basis starting today,Wednesday, September 6, 2017, with new reservations beginning at10 a.m.

This program is targeted to:

Households whose gross annual income does not exceed $40,000.
An existing or new construction property (purchase price limit $130,000).
620 minimum credit score.
FHA, VA or RHS first mortgage options.
Households who include active or non-active duty veterans. Documentation may include but not limited to:
- Leave and Earnings Statement (LES)
- DD214 – Discharge from Active Duty
- VA Award Letter
Must meet insuring agency guidelines.
Available statewide.
Both Regular and Affordable DAP are available.

Home Loans for Kentucky’s Military Veterans

Kentucky Housing Corporation (KHC) has $3 million available in Mortgage Revenue Bond (MRB), special funding, for active or non-active duty veterans at 2 percent interest rate, fixed for 30 years. This special funding program is available on a first-come, first-served basis starting Wednesday, September 6, 2017, with new reservations.

Find a KHC-Approved Lender to Apply

This homeownership program is targeted to:

Households whose gross annual income does not exceed $40,000.
An existing or new construction property (purchase price limit $130,000).
620 minimum credit score.
FHA, VA, or RHS first mortgage options.
Households who include active duty or non-active duty veterans. Documentation may include but not limited to:
- Leave and Earnings Statement (LES)
- DD214 – Discharge from Active Duty
- VA Award Letter
Must meet insuring agency guidelines.
Available statewide.

Down payment Assistance Programs (DAP) available up to $6,000. Qualifications apply.

How to Apply

For all KHC loans, a home buyer must apply through a KHC-approved lender. We partner with approved lenders across the state to provide you with the best mortgage loan options. By doing this, the buyer will know how much house they can afford based on income and debts. KHC’s loans are subject to certain restrictions that the lender will see if meet the qualifying guidelines. Additionally, the lender will be able to recommend any KHC down payment assistance for which you may qualify.

APR 3.058% – based on $130,000 FHA loan at 2% interest rate.

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.

Joel Lobb

Senior Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

10602 Timberwood Circle, Suite 3

Louisville, KY 40223

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.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 view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

Joel Lobb
Senior Loan Officer

(NMLS#57916)

American Mortgage Solutions, Inc.

10602 Timberwood Circle, Suite 3

Louisville, KY 40223

text or call my phone: (502) 905-3708
email me at kentuckyloan@gmail.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 view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

6 options for buying a home with little or no money down

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You’ve got great credit, a stable job, low debt, and money in the bank — but just not enough to make a down payment. Fortunately, there are many programs out there designed to give you that dream home with little to no money down.

Source: 6 options for buying a home with little or no money down

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2019 Kentucky First Time Home Buyer Down Payment Assistance

2019 Kentucky First Time Homebuyer Down Payment Assistance for Kentucky First Time Home Buyers for $4500 to $6000 Kentucky Housing DAP Funds

Here are action steps you can take right now to buy a home in Kentucky in 2019

1. Focus on your credit score

FICO credit scores are among the most frequently used credit scores, and range from 350-800 (the higher, the better). A consumer with a credit score of 750 or higher is considered to have excellent credit, while a consumer with a credit score below 620 is considered to have poor credit.

To qualify for a mortgage and get a low mortgage rate, your credit score matters.

Each credit bureau collects information on your credit history and develops a credit score that lenders use to assess your riskiness as a borrower. If you find an error, you should report it to the credit bureau immediately so that it can be corrected.

2. Manage your debt-to-income ratio

Many lenders evaluate your debt-to-income ratio when making credit decisions, which could impact the interest rate you receive.

A debt-to-income ratio is your monthly debt payments as a percentage of your monthly income. Lenders focus on this ratio to determine whether you have enough excess cash to cover your living expenses plus your debt obligations.

Since a debt-to-income ratio has two components (debt and income), the best way to lower your debt-to-income ratio is to:

First Ratio – The first ratio, top ratio or housing ratio. Basically that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe.

Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. This would include, Auto loans, credit cards, student loans, personal loans, child support, alimony….basically any consistent outgoing debt that you’re paying on. Again, if you’re paying less than 45% of your gross monthly income to all of the debts, plus your proposed housing payment, then……generally, you’re safe. You can go a lot higher in this area, but there are a lot of caveats when increasing your back ratio.

3. Keep credit utilization low on your credit cards

Lenders also evaluate your credit card utilization, or your monthly credit card spending as a percentage of your credit limit.

Ideally, your credit utilization should be less than 30%. If you can keep it less than 10%, even better.

For example, if you have a $10,000 credit limit on your credit card and spent $3,000 this month, your credit utilization is 30%.

Here are some ways to manage your credit card utilization:
set up automatic balance alerts to monitor credit utilization
ask your lender to raise your credit limit (this may involve a hard credit pull so check with your lender first)
pay off your balance multiple times a month to reduce your credit utilization

4 . Look for down payment assistance in Kentucky

There are various types of down payment assistance, even if you have student loans.

Here are a few:
FHA loans – federal loan through the Federal Housing Authority
USDA loans – zero down mortgages for rural and suburban homeowners
VA loans – if military service
Kentucky Housing Down Payment Assistance of $6000

There are federal, state and local assistance programs as well so be on the look out.

If you want a personalized answer for your unique situation call, text, or email me or visit my website below:

∘ 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 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.

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: 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 an automated system called GUS. GUS stands for the Guaranteed Underwriting System.

∘ 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 Grants are all available to Kentucky First Time Home buyers if you qualify for them. Ask your loan officer about these programs
∘ When can I lock in my interest rate to protect it from going up when I buy my first home?

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 $400-$450 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, USDA, Fannie Mae does not require a termite report, but most borrowers get one done.

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?

How much money do I have to make to qualify for a mortgage loan in Kentucky?

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

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

Kentucky First Time Home Buyer Programs for 2019

There are basically 5 popular programs that Kentucky Home buyers use to purchase their first home.

Conventional Loan

• At least 3%-5% down

• Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home.

Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.

Max Conventional loan limits are set at $484,350 for 2019 in Kentucky

Kentucky USDA Rural Housing Program

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.

Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.

They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in a rural area.

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern Kentucky .

There is a map link below to see the qualifying areas.

There is also a max household income limits with most cutoff starting at $82,700 for a family of four, and up to $109,350 for a family of five or more.

USDA requires 3 years removed from bankruptcy and foreclosure.

There is no max USDA loan limit.

Kentucky FHA Loan

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score.

The current mortgage insurance requirements are kinda steep when compared to USDA, VA , but the rates are usually good so it can counteract the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.

THe mi premiums are for life of loan like USDA.

FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure.

Maximum FHA loan limits in Kentucky are set around $ and below.

Kentucky VA Loan

VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have a funding fee like USDA, but it is higher starting at 2% for first time use, and 3% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.

VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and the max loan is $417,000 in Kentucky

Most VA lenders I work with will want a 620 credit score though I am setup with lenders that will go down to a 560 credit score if I can get it approved.

VA requires 2 years removed from bankruptcy or foreclosure.

Kentucky Down Payment Assistance

This type of loan is administered by KHC in the state of Kentucky. They typically have $4500 to $6000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.

Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.

KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at KHC requires 660 credit score.

The max debt to income ratios are set at 40% an 50% respectively.

2019 Kentucky First Time Home Buyer Questions to Ask Your Lender?