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

Bankruptcy

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
jlobb@keyfinllc.com

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

http://mylouisvillekentuckymortgage.com 

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