KENTUCKY FHA MORTGAGE LENDER GUIDELINES





1. Low Down Payment –  FHA Mortgage Loans only require a 3.5% down payment. And what makes that even more attractive is that it can be a gift from a relative. Do you have a parent or sibling who would “Gift” you some money for a down payment? If so, it could be time to apply for an  FHA Mortgage Loan.

2.Flexible Credit Qualifying – HUD did NOT set a credit score requirement for qualifying for an  FHA Mortgage Loan. However many lenders in the market today have drafted “Overlays” that set minimum credit score requirements. Most lenders like to see a minimum 620 credit score, but don’t get discouraged if you are not there yet. If you are close to 620, it is often just as simple as reviewing your credit to determine how to quickly raise it. If you are not close to 620, ask your FHA Mortgage Loan Originator if they have a program for you. Chances are, there is! Bankruptcies and prior foreclosures do not automatically disqualify you either.

3.The Seller Can Pay Your Closing Costs – That’s right. You need to have a quality Realtor who will help you negotiate not only the best price for the home, but also that the seller will pay your closing costs. HUD allows FHA Mortgage Loans to have the seller pay up to 6% of the purchase price. Sounds good so far, a down payment gift and seller paying closing costs!

4.Flexible Income Qualifying – The standard for income qualifying ratios is 31/43 which means that up to 31% of your monthly income can be used to pay your monthly household mortgage payment; and up to 43% of your monthly income can be used to qualify for ALL monthly expenses. Those ratios can go up to 55% if you have good credit and a good income history allowing you to qualify when others might not.

5.Qualify Without Your Spouse’s BAD Credit – This is a tricky one but it is also not well known. You can effectively qualify for an FHA Mortgage Loan without your spouse’s Bad Credit. FHA will look at your spouse’s credit but cannot decline your loan due to your spouse’s debt or credit score. So if you have a spouse with a crummy credit profile, you should take a look at  FHA Mortgage Loans to see if it will work for you.


What are Kentucky FHA Loans?

FHA stands for Federal Housing Authority. FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you’re buying a home or want to refinance your mortgage, FHA loans might be right for you. If you’re unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with super low closing costs and flexible payment options.

What factors determine if I am eligible for an FHA Loan in Kentucky?

To be eligible for FHA Mortgage Loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.



What is the maximum amount that I can borrow?

The maximum amount for an FHA Mortgage is determined by:



Maximum Loan Amount in Kentucky: The Maximum FHA Loan amount allowed for FHA Home Mortgages varies from county to county in Kentucky. The highest maximum FHA Home Loan right now in Kentucky is $271,050. The lowest maximum amount available in any county is $271,050. The lowest maximum amount available in any county is $285,000. To see what the limit is in the county in which you’re interested, please refer to the Kentucky FHA Loan Limit chart at the bottom of this page.



Maximum financing: In Kentucky, the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.



How much money will I need for the down payment and closing costs?

Kentucky FHA loans require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.



What property types are allowed for FHA Loans in Kentucky?

While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.




There are three main types of FHA Refinance loans available in KY.



FHA Rate/Term Refinance

The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.



Cash-Out Refinance

An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.



Streamline Refinance

The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.












Kentucky FHA Loan Limits for 2014 below:


Mortgage maximums as of Wednesday January 01, 2014
(120 records were selected, records 1 through 50 displayed)
MSA NameMSA CodeDivisionCounty NameCounty
Code
StateOne-FamilyTwo-FamilyThree-FamilyFour-FamilyMedian Sale PriceLast RevisedLimit Year
NON-METRO99999ADAIR001KY$271,050$347,000$419,425$521,250$56,00012/06/2013CY2014
BOWLING GREEN, KY14540ALLEN003KY$271,050$347,000$419,425$521,250$50,00012/06/2013CY2014
FRANKFORT, KY23180ANDERSON005KY$271,050$347,000$419,425$521,250$135,00012/06/2013CY2014
PADUCAH, KY-IL37140BALLARD007KY$271,050$347,000$419,425$521,250$60,00012/06/2013CY2014
GLASGOW, KY23980BARREN009KY$271,050$347,000$419,425$521,250$52,00012/06/2013CY2014
MOUNT STERLING, KY34460BATH011KY$271,050$347,000$419,425$521,250$96,00012/06/2013CY2014
MIDDLESBOROUGH, KY33180BELL013KY$271,050$347,000$419,425$521,250$79,00012/06/2013CY2014
CINCINNATI, OH-KY-IN17140BOONE015KY$271,050$347,000$419,425$521,250$181,00001/01/2014CY2014
LEXINGTON-FAYETTE, KY30460BOURBON017KY$271,050$347,000$419,425$521,250$154,00012/06/2013CY2014
HUNTINGTON-ASHLAND, WV-KY-OH26580BOYD019KY$271,050$347,000$419,425$521,250$80,00012/06/2013CY2014
DANVILLE, KY19220BOYLE021KY$271,050$347,000$419,425$521,250$94,00012/06/2013CY2014
CINCINNATI, OH-KY-IN17140BRACKEN023KY$271,050$347,000$419,425$521,250$181,00001/01/2014CY2014
NON-METRO99999BREATHITT025KY$271,050$347,000$419,425$521,250$60,00012/06/2013CY2014
NON-METRO99999BRECKINRIDGE027KY$271,050$347,000$419,425$521,250$60,00012/06/2013CY2014
LOUISVILLE/JEFFERSON , KY-IN31140BULLITT029KY$271,050$347,000$419,425$521,250$225,00001/01/2014CY2014
BOWLING GREEN, KY14540BUTLER031KY$271,050$347,000$419,425$521,250$50,00012/06/2013CY2014
NON-METRO99999CALDWELL033KY$271,050$347,000$419,425$521,250$65,00012/06/2013CY2014
MURRAY, KY34660CALLOWAY035KY$271,050$347,000$419,425$521,250$96,00012/06/2013CY2014
CINCINNATI, OH-KY-IN17140CAMPBELL037KY$271,050$347,000$419,425$521,250$181,00001/01/2014CY2014
NON-METRO99999CARLISLE039KY$271,050$347,000$419,425$521,250$81,00012/06/2013CY2014
NON-METRO99999CARROLL041KY$271,050$347,000$419,425$521,250$108,00012/06/2013CY2014
NON-METRO99999CARTER043KY$271,050$347,000$419,425$521,250$58,00012/06/2013CY2014
NON-METRO99999CASEY045KY$271,050$347,000$419,425$521,250$63,00012/06/2013CY2014
CLARKSVILLE, TN-KY17300CHRISTIAN047KY$271,050$347,000$419,425$521,250$150,00012/06/2013CY2014
LEXINGTON-FAYETTE, KY30460CLARK049KY$271,050$347,000$419,425$521,250$154,00012/06/2013CY2014
NON-METRO99999CLAY051KY$271,050$347,000$419,425$521,250$28,00012/06/2013CY2014
NON-METRO99999CLINTON053KY$271,050$347,000$419,425$521,250$36,00012/06/2013CY2014
NON-METRO99999CRITTENDEN055KY$271,050$347,000$419,425$521,250$54,00012/06/2013CY2014
NON-METRO99999CUMBERLAND057KY$271,050$347,000$419,425$521,250$30,00012/06/2013CY2014
OWENSBORO, KY36980DAVIESS059KY$271,050$347,000$419,425$521,250$113,00012/06/2013CY2014
BOWLING GREEN, KY14540EDMONSON061KY$271,050$347,000$419,425$521,250$50,00012/06/2013CY2014
NON-METRO99999ELLIOTT063KY$271,050$347,000$419,425$521,250$70,00012/06/2013CY2014
NON-METRO99999ESTILL065KY$271,050$347,000$419,425$521,250$94,00012/06/2013CY2014
LEXINGTON-FAYETTE, KY30460FAYETTE067KY$271,050$347,000$419,425$521,250$154,00012/06/2013CY2014
NON-METRO99999FLEMING069KY$271,050$347,000$419,425$521,250$104,00012/06/2013CY2014
NON-METRO99999FLOYD071KY$271,050$347,000$419,425$521,250$45,00012/06/2013CY2014
FRANKFORT, KY23180FRANKLIN073KY$271,050$347,000$419,425$521,250$135,00012/06/2013CY2014
UNION CITY, TN-KY46460FULTON075KY$271,050$347,000$419,425$521,250$48,00012/06/2013CY2014
CINCINNATI, OH-KY-IN17140GALLATIN077KY$271,050$347,000$419,425$521,250$181,00001/01/2014CY2014
NON-METRO99999GARRARD079KY$271,050$347,000$419,425$521,250$109,00012/06/2013CY2014
CINCINNATI, OH-KY-IN17140GRANT081KY$271,050$347,000$419,425$521,250$181,00001/01/2014CY2014
MAYFIELD, KY32460GRAVES083KY$271,050$347,000$419,425$521,250$84,00012/06/2013CY2014
NON-METRO99999GRAYSON085KY$271,050$347,000$419,425$521,250$89,00012/06/2013CY2014
NON-METRO99999GREEN087KY$271,050$347,000$419,425$521,250$47,00012/06/2013CY2014
HUNTINGTON-ASHLAND, WV-KY-OH26580GREENUP089KY$271,050$347,000$419,425$521,250$80,00012/06/2013CY2014
OWENSBORO, KY36980HANCOCK091KY$271,050$347,000$419,425$521,250$113,00012/06/2013CY2014
ELIZABETHTOWN-FORT KNOX, KY21060HARDIN093KY$271,050$347,000$419,425$521,250$128,00012/06/2013CY2014
NON-METRO99999HARLAN095KY$271,050$347,000$419,425$521,250$59,00012/06/2013CY2014
NON-METRO99999HARRISON097KY$271,050$347,000$419,425$521,250$86,00012/06/2013CY2014
NON-METRO99999HART099KY$271,050$347,000$419,425$521,250$99,00012/06/2013CY2014

Selection criteria
Sorted by:County
State:KY
County:
County Code:
MSA Name:
MSA Code:
Limit Type:FHA Forward
Limit Year:CY2014
Last Revised:

The CY2014 basic standard mortgage limits for FHA insured loans are:
One-familyTwo-familyThree-familyFour-family
FHA Forward$271,050.00$347,000.00$419,425.00$521,250.00
HECM$625,500.00
Fannie/Freddie$417,000.00$533,850.00$645,300.00$801,950.00


This is a listing of the FHA single family mortgage limits. This listing was downloaded from the Department's Computerized Home Underwriting Management System. Since mortgage limits are updated constantly, please contact the Homeownership Center if you believe this information is in error. 

Joel Lobb
Senior  Loan Officer
(NMLS#57916)


 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346