Whether you’re buying your first home, using down payment assistance, or rebuilding credit — there’s a program that fits. Compare them side by side before you commit.
🏠 FHA Loan
The go-to for first-time buyers and 580+ credit. Low down payment and flexible guidelines.
By Joel Lobb, Mortgage Loan Officer · NMLS #57916 · Updated September 12, 2026 The difference between a Kentucky home inspection and a Kentucky appraisal is their purpose: an inspection evaluates the home's condition, while an appraisal estimates its market value for the mortgage process. One does not replace the other. A homebuyer's two questions: What needs attention, and what is the property worth? Buying in Louisville, Lexington, Bowling Green, or elsewhere in Kentucky? Before paying for inspections and appraisal services, understand who orders each report, what it covers, and how the results may affect your purchase. In this guide Comparison Inspection checklist Appraisal process Costs and timing Video FAQs Kentucky home inspection vs. appraisal: the difference HOME INSPECTION Condition What needs attention? Roof · Foundation · Plumbing Electrical · Heating and cooling Usually arranged by: the buyer Result: an inspection report Next step: review repairs and f...
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Getting a Kentucky Mortgage in 3 Simple Steps
No confusing paperwork trails. No surprise fees. A clear path from first call to keys in hand.
01
💬 Get Pre-Qualified
Free application review with same-day answers. We look at your credit, income, and goals — no cost, no obligation, no pressure.
02
📋 Compare Your Options
FHA vs. Conventional vs. USDA vs. KHC — run side by side with your actual numbers so you see the real payment before you commit.
03
🏠 Close & Get Your Keys
Guided from contract to closing — appraisal, title, and underwriting coordinated so you always know what happens next.
Watch: Kentucky Mortgage Guides
Straight answers from my YouTube channel — no jargon, no sales pitch.
Hi, I’m Joel Lobb — a Kentucky dad who’s spent 20+ years helping families across all 120 counties buy their first home. When you call, you get me — not a phone tree. Questions on a Saturday morning? I answer.
1,300+ Kentucky families have trusted me with their mortgage — from Louisville to Lexington to the smallest towns in the state. Free application reviews, same-day pre-approvals, and honest answers about what you actually qualify for.
Frequently Asked Questions For Kentucky USDA Qualifying Criteria
1 What is the guarantee?
USDA Rural Development provides the full faith and assurance of the U.S
Government that any financial loss resulting from servicing the loan will be
reimbursed in full up to an amount not exceeding 90% of the original loan
amount. All loss up to an amount not exceeding 35% of the original loan is fully
reimbursed. Losses exceeding 35% are 85% reimbursed.
2 What is the advantage to the customer?
100 percent financing, fixed interest rate, no first time homeowner requirement, and no restrictions on size or design are a few advantages.
3 What are the eligibility requirements?
Have adequate and dependable income (up to 115 percent of adjusted area median
income), have acceptable credit, do not own a dwelling in the local commuting
area, US Citizen or permanent resident, have the ability to personally occupy the
home on a permanent basis, and do not have funds for a 20% down payment loan
plus closing and moving expenses.
4. What is the maximum loan amount?
The Loan amount is limited by the market value and repayment ability.
5. What is the maximum Loan to Value?
It can be up to 100% LTV plus the Agency guarantee fee
9 What is the Guarantee Fee?
The upfront guarantee fee is 1 percent of the “Total” loan amount. The Lender also has an annual fee of .35 percent based on principal.
10 What are the qualifying ratios?
PITI Ratio 29 percent, TD Ratio 41 percent
Higher ratios may be approved with compensating factors through the Automated Underwriting System Called GUS.
11 Do we show deferred student loans in the debt ratio?
Deferred student loans must be included in the debt ratio calculations for
Guaranteed Loans regardless of the deferment period.
12 What is the minimum credit score?
Under certain criteria, middle credit score of 680 and above no comment required.
For middle credit score of 679 and below document circumstances were
temporary in nature beyond the applicants control and have been removed. In
most cases, loans will not be guaranteed for applicants who have a middle credit
the score of 581 & below.
13 What about location?
The dwelling must be located in eligible rural area (See eligibility site)
How to Get Approved for a Mortgage Loan in Kentucky Thank you for visiting. I hope you find this website both informative and empowering as you explore your Kentucky mortgage options. My goal is simple: help you understand what mortgage underwriters actually review, help you avoid preventable approval issues, and help you choose the right loan program for your situation. I specialize in assisting Kentucky first-time homebuyers with FHA, VA, USDA Rural Housing, KHC down payment assistance , and Fannie Mae conventional mortgage loans . I proudly serve all 120 counties in Kentucky. FHA Loans in Kentucky VA Loans in Kentucky USDA Rural Housing Loans in Kentucky Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I've had the privilege of helping more than 1,300 Kentucky families buy a home or refinance their current mortgage. Whether you are a first-time buyer, a veteran, a USDA buyer, a credit-challenged ...
Kentucky Welcome Home Grant 2026 Update: Program Closed and Out of Funds May 2026 update for Kentucky homebuyers: the 2026 Welcome Home Grant is now closed for new reservations. This does not mean you cannot buy a home. It means you need to pivot quickly to other Kentucky mortgage and down payment assistance options. May 2026 Update Welcome Home Grant Closed KHC DAP Still Available USDA, VA, FHA Options Important Update: The 2026 Welcome Home Grant Is Closed The 2026 Welcome Home Grant through FHLB Cincinnati is now closed and out of funds for new reservations . If your lender did not reserve the money before the program closed, you should not build your home purchase plan around receiving this grant for 2026. The hard truth: this grant was popular, limited, and first-come, first-served. Once the available funds were reserved, the program closed. Good News: Kentucky Buyers Still Have Options ...
Can a pastor or minister use a housing allowance to qualify for a mortgage? Yes, an eligible, documented allowance may count toward qualifying income, even when it is excluded from federal taxable income. For Kentucky homebuyers, the next step is to have the allowance reviewed under the rules for the specific loan program. Updated September 23, 2026. Watch the clergy mortgage explainer Guideline update: The video's reference to three-year continuation reflects older guidance. Current Fannie Mae rules do not require continuance verification unless there is reason to believe the income may stop. Use the current requirements below when preparing your application. What are the current Fannie Mae requirements? Under Fannie Mae's March 4, 2026 housing allowance guidance, the lender needs a minimum 12-month history. Documentation consists of a completed employment verification (Form 1005), or the most recent paystub and W-2, plus verbal employment verification. Continuance ver...
