Documents Needed Mortgage Approval in Kentucky

Last updated: November 2025 – Requirements may change. Always check with your lender for the most current documentation guidelines.

Kentucky Mortgage Loan Document Checklist for FHA, VA, USDA & KHC Borrowers

If you’re buying a home in Kentucky, one of the fastest ways to slow down your approval is missing paperwork. Lenders must fully document your income, assets, credit, and debts before they can issue a final approval – and Kentucky’s popular programs like FHA, VA, USDA Rural Housing, and Kentucky Housing Corporation (KHC) have very specific documentation requirements.

This guide walks you step-by-step through the documents you need to get pre-approved and fully approved for a mortgage loan in Kentucky, including first-time homebuyer loans, zero-down options, and KHC down payment assistance.

What Documents You Need to Apply for a Mortgage in Kentucky

Most Kentucky homebuyers will need a similar core set of documents, regardless of whether they use FHA, VA, USDA, KHC, or conventional financing. From there, each program may require additional items.

Think of this as your Kentucky mortgage paperwork checklist. The more you can gather up front, the smoother and faster your approval process will be.

Core Documents Required for All Kentucky Mortgage Loans

These are the standard items almost every Kentucky lender will request:

Identity & Residency

  • Valid government-issued photo ID (driver’s license, state ID)
  • Social Security card (or acceptable alternative documentation)
  • Current address history for at least the last two years (rental or ownership)

Income Documentation

  • Pay stubs – Last 30 days, showing year-to-date income
  • W-2 forms – Last 2 years from all employers
  • Tax returns – Last 2 years (1040s), especially if you have bonuses, commissions, overtime, or side income
  • Documentation for any additional income – Social Security, pension, disability, child support, alimony, rental income, etc.

Asset Documentation

  • Bank statements – Most recent 2 months for all checking and savings accounts
  • Statements for retirement accounts – 401(k), IRA, TSP, etc. (if being used for reserves or down payment)
  • Statements for any investment accounts – stocks, bonds, mutual funds, crypto (if applicable)

Housing History

  • 12 months of rent payment history (canceled checks, bank statements, or verification of rent form)
  • Contact information for current landlord or property management company

Credit & Liabilities

  • List of all open debts not appearing on your credit report (private loans, personal loans, etc.)
  • Documentation for any collections, judgments, or tax liens, including payoff plans or satisfaction letters

Legal & Other Documents (When Applicable)

  • Divorce decree and any child support / alimony orders
  • Bankruptcy discharge papers (Chapter 7, 11, or 13) including schedules
  • Foreclosure or short sale documentation, if applicable
  • Green card, visa, or other immigration documentation for non-citizen borrowers

Once these core items are in, the lender can usually issue a strong Kentucky mortgage pre-approval and help you shop confidently.

Additional Documents for Kentucky FHA Loans

FHA loans are very popular with Kentucky first-time homebuyers. In addition to the core checklist above, FHA often requires:

  • Gift documentation – If your down payment or closing costs come from a family gift:
    • Gift letter signed by donor and borrower
    • Proof of donor’s ability (bank statement)
    • Evidence of funds leaving donor’s account and showing up in your account or at closing
  • 12 months of rent verification (especially if manually underwritten)
  • Documentation of any student loan payment plans or income-driven repayment arrangements
  • Letters of explanation (LOE) for:
    • Credit issues, late payments, or collections
    • Job gaps longer than 30–60 days
    • Large deposits into bank accounts
  • FHA-specific disclosures and signed forms required by your lender

For more details on Kentucky FHA guidelines, you can review my updated guide on Kentucky FHA credit score and approval requirements.

Additional Documents for Kentucky VA Loans

VA loans are often the best option for qualifying veterans, active-duty service members, and eligible surviving spouses buying in Kentucky. In addition to the standard documents, you’ll typically need:

  • DD-214 – For discharged veterans, showing character of service
  • Certificate of Eligibility (COE) – Your lender can usually pull this directly from the VA portal
  • Current LES – For active-duty borrowers (Leave and Earnings Statement)
  • Disability award letter – If you receive VA disability income
  • Documentation for any child support, alimony, or prior divorce that may impact VA entitlement or qualifying ratios
  • Reservist / National Guard documentation (points statement, etc.) if applicable

Because Kentucky has a large military community around Fort Knox and Fort Campbell, it’s critical that your loan officer understands VA residual income rules for the South region and can document your income correctly.

Documents Needed for Kentucky USDA Rural Housing Loans

USDA Rural Housing is a powerful $0-down option for eligible properties in rural Kentucky. USDA loans have additional documentation requirements, especially around household income and property eligibility.

In addition to the core documents, USDA typically requires:

  • Household income documentation for every adult living in the home, whether they are on the loan or not:
    • Pay stubs and W-2s for all household members
    • Proof of any Social Security, child support, or other income received within the household
  • 12 months rent verification – canceled checks, bank statements, or VOR
  • Documentation for any side gigs, second jobs, or seasonal work
  • Proof the property is located in a USDA-eligible Kentucky area (your lender can check this for you)

You can also use my Kentucky USDA tools and resources to check if a property is USDA eligible in one of Kentucky’s 120 counties.

Documents Needed If Using KHC Down Payment Assistance

Kentucky Housing Corporation (KHC) offers powerful down payment assistance (DAP) programs that work with FHA, VA, USDA, and conventional loans. Because KHC adds a second layer of underwriting, documentation must be very clean and complete.

In addition to the core list and your main loan program requirements, KHC may require:

  • KHC application and program disclosures signed by all borrowers
  • Full tax returns for the last 2 years (for all borrowers)
  • Verification of Kentucky residency and current address history
  • Documentation of total household income to verify you are under KHC’s income limits
  • Completed homebuyer education course certificate from an approved provider
  • Documentation of any asset transfers or large deposits used for closing

For more details, see my guide to Kentucky first-time homebuyer grants and KHC down payment assistance.

Extra Paperwork Kentucky Lenders Need From Self-Employed Borrowers

If you are self-employed, own a small business, or file a lot of 1099 income in Kentucky, be prepared for a deeper documentation review. In addition to the standard items, you should expect to provide:

  • Personal tax returns – Last 2 years, all schedules
  • Business tax returns – Corporation, partnership, or LLC returns for the last 2 years (if applicable)
  • Year-to-date profit and loss (P&L) statement and balance sheet
  • 12 months of business bank statements
  • Proof your business is active – such as:
    • Kentucky Secretary of State business registration
    • Business license or professional license
    • Website, invoices, or client contracts
  • Letter from your CPA (if required by the lender)

Lenders will average your self-employed income over 24 months (or sometimes 12, if trending up) and will subtract certain write-offs, so clean documentation here is critical for approval.

What to Do If Documents Are Missing or Incomplete

Real life is messy. Divorce, job changes, health issues, and business ups and downs are common. If you are missing certain documents, don’t panic – but you do need a plan.

  • Missing tax returns: Request IRS transcripts (Form 4506-C) or order copies directly from IRS.gov.
  • Large cash deposits: Expect to document the source. Unverifiable cash is usually not allowed.
  • Missing divorce decree or child support orders: Contact your county clerk or court clerk’s office where the divorce was finalized in Kentucky.
  • Gaps in employment: Write a clear letter of explanation and provide documentation if you were in school, caring for family, or between jobs.
  • Limited rent history: Be prepared to document alternative credit, such as insurance, utilities, or phone bills paid on time.

The key is communication. The earlier your lender can see the full picture, the easier it is to structure your file correctly.

Next Steps to Get Approved for a Mortgage Loan in Kentucky

Here’s a simple roadmap to move from “thinking about buying” to “fully approved” in Kentucky:

  1. Gather your core documents: ID, pay stubs, W-2s, tax returns, bank statements, and housing history.
  2. Identify your likely program: FHA, VA, USDA, conventional, or KHC down payment assistance. Your loan officer can help you pick the best fit.
  3. Upload everything securely: Use a secure portal or encrypted email – avoid texting pictures of documents when possible.
  4. Respond quickly to any conditions: Underwriters will often ask for one or two extra items. Speed matters.
  5. Don’t open new debt: Avoid new car loans, credit cards, or financing furniture until after closing.
  6. Stay in touch: Keep your loan officer updated on any changes in job, income, or assets before closing.

If you’re not sure which documents apply to your situation, a quick phone call or email can usually clarify it in a few minutes.

Frequently Asked Questions (Kentucky Borrowers)

What documents do I need to get pre-approved for a mortgage in Kentucky?

Most Kentucky lenders will ask for a government ID, 30 days of pay stubs, 2 months of bank statements, and the last 2 years of W-2s and tax returns. If you’re self-employed or using a program like FHA, VA, USDA, or KHC, expect a few additional forms and verifications.

Do Kentucky lenders require tax returns?

Yes. Most Kentucky mortgage programs, including FHA, VA, USDA, and KHC down payment assistance, require two years of federal tax returns. In some very straightforward conventional cases, W-2s may be enough, but full returns are often needed.

Can I get a mortgage in Kentucky without W-2s?

Yes, if you are self-employed or a 1099 worker. Instead of W-2s, lenders will use your tax returns, business returns, profit and loss statements, and bank statements to document your income.

What documents does USDA require in Kentucky?

USDA loans require household income documentation for every adult living in the home, 12 months of rent verification, and proof that the property is located in a USDA-eligible area in Kentucky. Your lender will also review tax returns, pay stubs, and bank statements.

Does divorce affect what documents I need for a Kentucky mortgage?

Yes. You’ll need a complete copy of your divorce decree, including any child support or alimony orders. Lenders must verify these obligations to calculate your qualifying ratios and determine which income can be counted.

Ready to Get Pre-Approved for a Kentucky Mortgage?

I’ve helped more than 1,300+ Kentucky families buy or refinance homes using FHA, VA, USDA, KHC, and conventional loans.

When you’re ready, I can review your documents, walk you through your numbers, and help you choose the right program for your situation as a Kentucky homebuyer.

Contact Joel Lobb, Mortgage Broker – Kentucky FHA, VA, USDA & KHC

NMLS #57916 | Company NMLS #1738461
Equal Housing Lender | www.nmlsconsumeraccess.org

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