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

​Buying a Kentucky Home No Money Down with a Conventional Loan from Kentucky Housing Down Payment Assistance​​

​

Conventional Loan with Kentucky Housing Down Payment Assistance​​

😃

• 30 year fixed rate with no prepaypaymet penalty .​
• Loan requires 3% down payment but you can use the $6000 down payment assistance for your 3% contributions
• ​660 Minimum Credit Score Required
• No bankruptcies in the last 4 to 7 years 
• Must receive an Approved Eligible Recommendation through Desktop Underwriting System (AUS)
• No mortgage insurance 
• Free Homebuyer Education Course required. https://www.readynest.com/homebuyer-resources/the-test
• ​Home inspection not required but recommended
• Seller can contribute 3% toward buyer’s closing costs and prepaids
• Current cost of Conventional appraisal is $425. 
• Kentucky Housing Mortgage rates can change daily, but typically follow other mortgage rate trends. Everyone gets the same rates with KHC loans.
• Appraisal to meet Conventional Appraisal Guidelines​
• You have 45 days to close the loan once you lock the loan. If you go past this date, you will have to pay lock extension fees to KHC. 
• $6000 down payment assistance for down payment and closing costs and prepaids. Cannot be used for home repairs. 
• $6000 Down payment Assistance Second Mortgage over 10 years at 5.5% interest, or for lower household income you can do the $6,000 down payment assitance loan for 10 years at 1% interest. This falls under the Affordable Dap Income Limits http://www.kyhousing.org/Home-Buyers/Documents/Affordable%20DAP%20Income%20Limits.pdf
• Max housing ratios of 40% and 50% respectively. Meaning, your gross monthly income divided by your total house payment cannot be more than 40% of your total gross monthly income. And the bills listed on the credit report (monthly payments) combined with new house payment cannot be more than 50% of your total gross monthly income. 
• Household Income limits by county. Most limits are around $136,000 for the largest counties in Kentucky like  Jefferson, Fayette, 
• http://www.kyhousing.org/Home-Buyers/Documents/SMP%20Income%20Limitations.pdf

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/

— 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.

Louisville Kentucky First Time Home Buyer Classes

Consumer Credit Counseling Service

 (502) 458-8840

2100 Gardiner Lane, Suite 103A 1-800-278-9219 (toll-free)

Louisville, KY 40205

 https://kyfirsttimehomebuyer.wordpress.com/2012/01/11/louisville-ky-fha-mortgage-loans/

Since 1980, Consumer Credit Counseling Service has been a HUD approved

counseling agency. Many lenders look for this stamp of approval

in deciding where to send their customers for counseling. Consumer

Credit Counseling Service not only provides the one-on-one counseling

often required by lenders, but it offers a one-day Homebuyer Preparedness

Program. This free program covers such topics as working with a

real estate agent, finding a lender, figuring out how much you can afford

to spend and going through the application process. The agency is certified

by HUD to provide default and reverse equity mortgage counseling,

too. Counseling on debt management and budgets also is available. The

initial counseling session is free. Consumer Credit has six sites throughout

the area.

The Housing Partnership, Inc.

 (502) 585-5451

333 Guthrie Green, Suite 404 www.housingpartnershipinc.org

Louisville, KY 40202

The Housing Partnership, Inc. Home Ownership Program is the largest

HUD-certified program in Kentucky. The program provides counseling,

courses and other services to those who want to own a home. It also

provides counseling to home owners who are in danger of default. Participants

attend an orientation session before being assigned a counselor,

who provides information on budgeting and credit preparation. Participants

then must complete several short courses over six weeks. These

courses cover basics, such as sales contracts, home inspections, mortgage

loans, insurance and maintenance. A one-time fee based on income may

be assessed. Scholarships are available. The fee entitles participants to

a lifetime of service. Home buyers often come back for help on budget

and credit issues. The Housing Partnership has five satellite locations

scattered throughout the area, including two nearby in Indiana.

Kentucky Housing Corp.

(502) 564-7630, ext. 324

1231 Louisville Road 1-800-633-8896 (Kentucky only)

Frankfort, KY 40601 www.kyhousing.org

The “Yes You Can…Own a Home” series of classes is presented periodically

throughout the state by local lenders and nonprofit organizations.

Local coordinators team up with housing-related professionals

who volunteer their time to serve as instructors. Topics include finding

the right house, completing a loan application, the mortgage loan process,

budget and credit issues and basic home maintenance. The classes

are free and open to all. In addition, the agency offers a counseling

program for potential home buyers who have been declined financing

by the Kentucky Housing Corp. or by a KHC-approved lender or who

have completed the “Yes You Can” course and are within KHC’s income

limits. As the state housing-finance agency, the Kentucky Housing

Corp. also offers a down-payment assistance program, low-interest-rate

mortgages, financing for the production of rental housing and a variety

of rental assistance programs.

Louisville Urban League

 (502) 561-6830, ext. 122

1535 W. Broadway www.lul.org

Louisville, KY 40203

The Louisville Urban League Housing Services & Neighborhood

Revitalization Department offers the Home Ownership Training (HOT)

Program. Through individual and group counseling, HOT prepares

and prequalifies people for mortgages. In one-on-one sessions with a

certified HUD counselor, clients learn about budgeting, credit and home

ownership options. When financially ready (clean credit, steady budget

and savings), clients take four classes. These cover sales and purchase

contracts, inspections and maintenance, loan applications and closing,

and insurance. Classes are held the last two Tuesday and Thursday

nights of the month. Those who already save, budget and have established

good credit are eligible for a “fast track” version of this training—a

one-day group session called “Home Track.” The Urban League charges

a lifetime membership fee, which is set on a sliding scale, based on

income. The fee ranges from $100 to $250. Kentucky residency is not

required. Additional counseling is available on such issues as reverse

mortgages, delinquencies, refinancing and rental options.

f you’re thinking about buying a home, you might want to think

about talking to one of these agencies first. They can provide

you with valuable advice on every step of the process, from

budgeting your income to negotiating a contract to closing on a

loan. The assistance doesn’t stop once you’ve moved in; many

agencies will also give you guidance on how to maintain your

home and how to prevent foreclosure. Most of these agencies

provide their services at no charge. Usually, anyone can

take advantage of the programs, although they are aimed primarily at

first-time buyers. In some cases, counseling is required by lenders,

especially if any government assistance is being provided to help lower

a loan rate or help pay for closing costs. All of the agencies will provide

interpreters for those who don’t speak English.

I

Reach, Inc.  733 Red Mile Rd Lexington, KY 40504-1153 WEBSITE: http://www.reachky.com  PHONE: 859-455-8057 LANGUAGES: Arabic, ASL, Cambodian, Cantonese, Chinese Mandarin, Creole, Czech, English, Farsi, French, German, Hindi, Hmong, Indonesian, Italian, Korean, Polish, Portuguese, Russian, Spanish, Swahili, Turkish, Ukrainian, Vietnamese	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Financial, Budgeting and Credit Repair Workshops Non-Delinquency Post Purchase Workshops Predatory Lending Education Workshops Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops	0.5 miles
Apprisen – Lexington  2265 Harrodsburg Road Suite 303 Lexington, KY 40504-3500 WEBSITE: http://www.apprisen.com/home.asp  PHONE: 800-355-2227 EMAIL ADDRESS: info@apprisen.com LANGUAGES: English	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Pre-purchase Counseling Rental Housing Counseling	1.6 miles
Community Ventures Corporation  1450 N Broadway Lexington, KY 40505-3162 WEBSITE: https://www.cvky.org  PHONE: 859-231-0054 EMAIL ADDRESS: lwhalen@cvky.org LANGUAGES: English, Spanish	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Fair Housing Pre-Purchase Education Workshops Home Improvement and Rehabilitation Counseling Non-Delinquency Post Purchase Workshops Predatory Lending Education Workshops Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops Rental Housing Counseling	3.0 miles
Kentucky Housing Corporation  1231 Louisville Rd. Frankfort, KY 40601-6156 WEBSITE: http://www.kyhousing.org  PHONE: 502-564-7630-775 EMAIL ADDRESS: shillard@kyhousing.org LANGUAGES: English, Spanish	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Fair Housing Pre-Purchase Education Workshops Predatory Lending Education Workshops Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops	22.8 miles
Frontier Housing , Inc.  5445 Flemingsburg Rd Morehead, KY 40351-9138 WEBSITE: http://frontierky.org  PHONE: 606-784-2131 LANGUAGES: English	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Home Improvement and Rehabilitation Counseling Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops	56.9 miles
Apprisen – Cccs of the Midwest – Louisville  11492 Bluegrass Pkwy Ste 105 Louisville, KY 40299-2334 WEBSITE: http://www.apprisen.com  PHONE: 800-355-2227 EMAIL ADDRESS: info@apprisen.com LANGUAGES: English	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Pre-purchase Counseling Rental Housing Counseling	56.9 miles
Campbellsville Housing and Redevelopment Authority  400 Ingram Ave Campbellsville, KY 42718-1627 WEBSITE: http://www.cvillehousingonline.com  PHONE: 270-465-3576-236 EMAIL ADDRESS: jhall@campbellsvillehousing.com LANGUAGES: English	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Financial, Budgeting and Credit Repair Workshops Fair Housing Pre-Purchase Education Workshops Services for Homeless Counseling Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops Rental Housing Counseling Rental Housing Workshops	65.3 miles
The Housing Partnership, Inc  1126 Berry Blvd Louisville, KY 40215-2702 WEBSITE: http://www.wearehpi.org  PHONE: 502-585-5451 LANGUAGES: English	Financial Management/Budget Counseling Financial, Budgeting and Credit Repair Workshops Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops	69.4 miles
Catholic Charities, Diocese of Covington  3629 Church St Covington, KY 41015-1430 WEBSITE: https://www.covingtoncharities.org  PHONE: 859-581-8974 EMAIL ADDRESS: panderson@covingtoncharities.org LANGUAGES: English, Spanish	Mortgage Delinquency and Default Resolution Counse Financial Management/Budget Counseling Fair Housing Pre-Purchase Education Workshops Services for Homeless Counseling Non-Delinquency Post Purchase Workshops Predatory Lending Education Workshops Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops Rental Housing Counseling	69.7 miles
Louisville Urban League  1535 W Broadway Louisville, KY 40203-3515 WEBSITE: http://www.lul.org  PHONE: 502-566-3362 LANGUAGES: English	Mortgage Delinquency and Default Resolution Counse Resolving/Preventing Mortgage Delinquency Workshop Financial Management/Budget Counseling Financial, Budgeting and Credit Repair Workshops Home Improvement and Rehabilitation Counseling Non-Delinquency Post Purchase Workshops Predatory Lending Education Workshops Pre-purchase Counseling Pre-purchase Homebuyer Education Workshops Rental Housing Counseling Rental Housing Workshops

 

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/

 

— 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 First Time Home Buyer Mortgage Guide

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:

1. Save for Down Payment & Credit Scores
2. Apply for Pre-Approval
3. Determine Housing Criteria & Neighborhood
4. Hire an Agent & Start Your Home Search
5. Complete the Loan Application
6. Move Through the Loan Process
7. Set a Closing Date
8. 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

Accessibility for Website

Privacy Policy

---

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 Home Buyer Questions to Ask Your Lender?

 

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.

 

 

 

 

 

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