Friday, February 15, 2013

Louisville Kentucky FHA Mortgage Guideline Changes for 2013

Kentucky FHA mortgages refer to loans that are backed, but not issued, by the FHA, which means lenders will be reimbursed by the FHA in the event that the borrower defaults on the loan. This reduces the loan's risk to lenders.

Credit Scores and Down Payment Requirements for a Kentucky FHA Loan

The biggest advantage for Kentucky mortgage applicants-is the small down payment required. As of 2013, borrowers who have a credit score of at least 580 can pay only 3.5 percent of the home's value as a down payment. For example, a $100,000 home would require as little as a $3,500 down payment. If a borrower has a credit score less than 580, the down payment must be at least 10 percent..

Eligible Sources of Down Payment for A Kentucky FHA Loan

Most conventional mortgages require that you supply the funds for your mortgage down payment. Kentucky FHA mortgages allow you to use money from gifts donated to you by relatives, an employer or a charitable organization. The Department of Housing and Urban Development has a database of local programs that may assist certain borrowers, typically those will lower incomes, in making a down payment on a home.

Upfront Mortgage Insurance Premium
When you take out your FHA mortgage, you must pay a mortgage insurancepremium equal to 1.75 percent of the mortgage, as of 2013. For example, on a $100,000 mortgage, a borrower would have to make a payment of $1,750 at the time the loan is issued. However, this payment is treated separately from the cost of the down payment and, if necessary, is permitted to roll into the cost of the loan. In this prior example, if the borrower could not afford to pay the $1,750 upfront mortgage insurance premium in addition to the required down payment, the borrower could add the $1,750 to the loan, making the total mortgage $101,750

2013 Kentucky FHA Loan Limits

In order to qualify for an Kentucky FHA loan in Kentucky, the final negotiated selling price of the home an applicant is interested in buying must fall below the state'sFHA loan limits. According to FHA Home Loan Mortgage, in most counties in Kentucky, the FHA loan limit as of 2013 is $302,500. In the Louisville area including Bullitt, Henry, Jefferson, Meade, Nelson, Oldham, Shelby and Trimble counties, the FHA loan limit is $302,500. Additionally, in the Cincinnati area including Boone, Bracken, Cambell, Gallatin, Kenton and Pendleton counties, the FHA loan limit is $337,500.

2013 FHA Loan Limits for Kentucky Counties

1 - FAMILY is a single family home or condominium
2 - FAMILY is two separate living units (duplex)
3 - FAMILY three separate living units (triplex)
4 – FAMILY four separate living units(fourplex)

Kentucky CountiesOne-FamilyTwo-FamilyThree FamilyFour-FamilyMSA
Adair County$271,050$347,000$419,425$521,250NON-METRO
Allen County$271,050$347,000$419,425$521,250NON-METRO
Anderson County$271,050$347,000$419,425$521,250FRANKFORT, KY (MICRO)
Ballard County$271,050$347,000$419,425$521,250PADUCAH, KY-IL (MICRO)
Barren County$271,050$347,000$419,425$521,250GLASGOW, KY (MICRO)
Batd County$271,050$347,000$419,425$521,250MOUNT STERLING, KY (MICRO)
Bell County$271,050$347,000$419,425$521,250MIDDLESBOROUGH, KY (MICRO)
Boone County$337,500$432,050$522,250$649,050CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
Bourbon County$271,050$347,000$419,425$521,250LEXINGTON-FAYETTE, KY (MSA)
Boyd County$271,050$347,000$419,425$521,250HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
Boyle County$271,050$347,000$419,425$521,250DANVILLE, KY (MICRO)
Bracken County$337,500$432,050$522,250$649,050CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
Breatditt County$271,050$347,000$419,425$521,250NON-METRO
Breckinridge County$271,050$347,000$419,425$521,250NON-METRO
Bullitt County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Butler County$271,050$347,000$419,425$521,250NON-METRO
Caldwell County$271,050$347,000$419,425$521,250NON-METRO
Calloway County$271,050$347,000$419,425$521,250MURRAY, KY (MICRO)
Campbell County$337,500$432,050$522,250$649,050CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
Carlisle County$271,050$347,000$419,425$521,250NON-METRO
Carroll County$271,050$347,000$419,425$521,250NON-METRO
Carter County$271,050$347,000$419,425$521,250NON-METRO
Casey County$271,050$347,000$419,425$521,250NON-METRO
Christian County$271,050$347,000$419,425$521,250CLARKSVILLE, TN-KY (MSA)
Clark County$271,050$347,000$419,425$521,250LEXINGTON-FAYETTE, KY (MSA)
Clay County$271,050$347,000$419,425$521,250NON-METRO
Clinton County$271,050$347,000$419,425$521,250NON-METRO
Crittenden County$271,050$347,000$419,425$521,250NON-METRO
Cumberland County$271,050$347,000$419,425$521,250NON-METRO
Daviess County$271,050$347,000$419,425$521,250OWENSBORO, KY (MSA)
Edmonson County$271,050$347,000$419,425$521,250BOWLING GREEN, KY (MSA)
Elliott County$271,050$347,000$419,425$521,250NON-METRO
Estill County$271,050$347,000$419,425$521,250NON-METRO
Fayette County$271,050$347,000$419,425$521,250LEXINGTON-FAYETTE, KY (MSA)
Fleming County$271,050$347,000$419,425$521,250NON-METRO
Floyd County$271,050$347,000$419,425$521,250NON-METRO
Franklin County$271,050$347,000$419,425$521,250FRANKFORT, KY (MICRO)
Fulton County$271,050$347,000$419,425$521,250UNION CITY, TN-KY (MICRO)
Gallatin County$337,500$432,050$522,250$649,050CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
Garrard County$271,050$347,000$419,425$521,250NON-METRO
Grant County$337,500$432,050$522,250$649,050CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
Graves County$271,050$347,000$419,425$521,250MAYFIELD, KY (MICRO)
Grayson County$271,050$347,000$419,425$521,250NON-METRO
Green County$271,050$347,000$419,425$521,250NON-METRO
Greenup County$271,050$347,000$419,425$521,250HUNTINGTON-ASHLAND, WV-KY-OH (MSA)
Hancock County$271,050$347,000$419,425$521,250OWENSBORO, KY (MSA)
Hardin County$271,050$347,000$419,425$521,250ELIZABEtdTOWN, KY (MSA)
Harlan County$271,050$347,000$419,425$521,250NON-METRO
Harrison County$271,050$347,000$419,425$521,250NON-METRO
Hart County$271,050$347,000$419,425$521,250NON-METRO
Henderson County$271,050$347,000$419,425$521,250EVANSVILLE, IN-KY (MSA)
Henry County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Hickman County$271,050$347,000$419,425$521,250NON-METRO
Hopkins County$271,050$347,000$419,425$521,250MADISONVILLE, KY (MICRO)
Jackson County$271,050$347,000$419,425$521,250NON-METRO
Jefferson County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Jessamine County$271,050$347,000$419,425$521,250LEXINGTON-FAYETTE, KY (MSA)
Johnson County$271,050$347,000$419,425$521,250NON-METRO
Kenton County$337,500$432,050$522,250$649,050CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
Knott County$271,050$347,000$419,425$521,250NON-METRO
Knox County$271,050$347,000$419,425$521,250NON-METRO
Larue County$271,050$347,000$419,425$521,250ELIZABEtdTOWN, KY (MSA)
Laurel County$271,050$347,000$419,425$521,250LONDON, KY (MICRO)
Lawrence County$271,050$347,000$419,425$521,250NON-METRO
Lee County$271,050$347,000$419,425$521,250NON-METRO
Leslie County$271,050$347,000$419,425$521,250NON-METRO
Letcher County$271,050$347,000$419,425$521,250NON-METRO
Lewis County$271,050$347,000$419,425$521,250MAYSVILLE, KY (MICRO)
Lincoln County$271,050$347,000$419,425$521,250DANVILLE, KY (MICRO)
Livingston County$271,050$347,000$419,425$521,250PADUCAH, KY-IL (MICRO)
Logan County$271,050$347,000$419,425$521,250NON-METRO
Lyon County$271,050$347,000$419,425$521,250NON-METRO
Madison County$271,050$347,000$419,425$521,250RICHMOND-BEREA, KY (MICRO)
Magoffin County$271,050$347,000$419,425$521,250NON-METRO
Marion County$271,050$347,000$419,425$521,250NON-METRO
Marshall County$271,050$347,000$419,425$521,250NON-METRO
Martin County$271,050$347,000$419,425$521,250NON-METRO
Mason County$271,050$347,000$419,425$521,250MAYSVILLE, KY (MICRO)
Mccracken County$271,050$347,000$419,425$521,250PADUCAH, KY-IL (MICRO)
Mccreary County$271,050$347,000$419,425$521,250NON-METRO
Mclean County$271,050$347,000$419,425$521,250OWENSBORO, KY (MSA)
Meade County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Menifee County$271,050$347,000$419,425$521,250MOUNT STERLING, KY (MICRO)
Mercer County$271,050$347,000$419,425$521,250NON-METRO
Metcalfe County$271,050$347,000$419,425$521,250GLASGOW, KY (MICRO)
Monroe County$271,050$347,000$419,425$521,250NON-METRO
Montgomery County$271,050$347,000$419,425$521,250MOUNT STERLING, KY (MICRO)
Morgan County$271,050$347,000$419,425$521,250NON-METRO
Muhlenberg County$271,050$347,000$419,425$521,250CENTRAL CITY, KY (MICRO)
Nelson County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Nicholas County$271,050$347,000$419,425$521,250NON-METRO
Ohio County$271,050$347,000$419,425$521,250NON-METRO
Oldham County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Owen County$271,050$347,000$419,425$521,250NON-METRO
Owsley County$271,050$347,000$419,425$521,250NON-METRO
Pendleton County$337,500$432,050$522,250$649,050CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
Perry County$271,050$347,000$419,425$521,250NON-METRO
Pike County$271,050$347,000$419,425$521,250NON-METRO
Powell County$271,050$347,000$419,425$521,250NON-METRO
Pulaski County$271,050$347,000$419,425$521,250SOMERSET, KY (MICRO)
Robertson County$271,050$347,000$419,425$521,250NON-METRO
Rockcastle County$271,050$347,000$419,425$521,250RICHMOND-BEREA, KY (MICRO)
Rowan County$271,050$347,000$419,425$521,250NON-METRO
Russell County$271,050$347,000$419,425$521,250NON-METRO
Scott County$271,050$347,000$419,425$521,250LEXINGTON-FAYETTE, KY (MSA)
Shelby County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Simpson County$271,050$347,000$419,425$521,250NON-METRO
Spencer County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Taylor County$271,050$347,000$419,425$521,250CAMPBELLSVILLE, KY (MICRO)
Todd County$271,050$347,000$419,425$521,250NON-METRO
Trigg County$271,050$347,000$419,425$521,250CLARKSVILLE, TN-KY (MSA)
Trimble County$302,500$387,250$468,100$581,750LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
Union County$271,050$347,000$419,425$521,250NON-METRO
Warren County$271,050$347,000$419,425$521,250BOWLING GREEN, KY (MSA)
Washington County$271,050$347,000$419,425$521,250NON-METRO
Wayne County$271,050$347,000$419,425$521,250NON-METRO
Webster County$271,050$347,000$419,425$521,250EVANSVILLE, IN-KY (MSA)
Whitley County$271,050$347,000$419,425$521,250CORBIN, KY (MICRO)
Wolfe County$271,050$347,000$419,425$521,250NON-METRO
Woodford County$271,050$347,000$419,425$521,250LEXINGTON-FAYETTE, KY (MSA)

Judgements Must be Paid

One of the guidelines to get an FHA loan in Kentucky is that there can not be any outstanding monetary judgments in the applicant's name. According to 1st Continental Mortgage, judgments must be paid off before an FHA mortgage loan is eligible for insurance. 1st Continental Mortgage also states that exceptions can be made if an applicant has shown a strong payment history on his judgment and has been making his payments on time. Documents proving these acceptable payments and a creditor's willingness to subordinate the judgment to the insured mortgage are necessary in this case.

Previous Foreclosure

In order to meet the FHA guidelines for a loan in Kentucky, a borrower does not qualify if she has had a recent foreclosure on another property.  A Kentucky Home buyer or owner as  an applicant who has a real estate property that was foreclosed on within the past three years, or an applicant who was given a deed-in-lieu of foreclosure within the previous three years, is not generally eligible. Once again, exceptions can be made on an individual application basis if there are extenuating documented circumstances that a loan officer feels were beyond the applicant's control.


In Kentucky, bankruptcy does not automatically disqualify an an applicant from receiving an FHA mortgage loan. Kentucky FHA rules states that with a Chapter 7 Bankruptcy, an FHA applicant will not be disqualified if at least two years have passed since the bankruptcy was discharged. In the case of a Chapter 13 Bankruptcy, a borrower may qualify for an FHA loan if at least one year of the pay-out period has been completed and the applicant can show a satisfactory payment history during that one year time frame.

Down Payment

The guidelines for an FHA loan in Kentucky require a minimum down-payment of about 3.5 percent of the price of the home. Gifts from family and financial assistance from acceptable outside resources can satisfy the down-payment amount if an applicant does not have the cash on hand. According to 1st Continental Mortgage, the seller can not pay the down payment, but he can pay up to 6 percent of the price of the home in closing costs.

Pest Inspection

A home inspection is not required to borrow money in the form of an FHA loan in Kentucky, even though it is a positive home buying practice. However, the FHA's guidelines do require an acceptable pest inspection before the property can be purchased. 

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

Fill out my form below or call me for your next Kentucky FHA Loan.

Fill out my free online FHA application here by clicking this link!