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.
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The White House is reportedly considering a draft executive order titled "Decreasing Housing Costs for the American People," first obtained by Scotsman Guide and also reported by HousingWire . As of this writing it has not been signed , and the final details could change. Here is what the current draft includes and why Kentucky borrowers should keep an eye on it. What the Draft Proposes Reducing or eliminating certain loan-level pricing fees on eligible refinances Waiving appraisals and some documentation on qualifying refinances that lower your payment Expanding title insurance waivers to reduce closing costs Directing the VA and USDA to pursue lower rates for eligible borrowers Requiring servicers to notify you when you may qualify to remove mortgage insurance Who in Kentucky Could Benefit Homeowners who bought or refinanced at higher rates over the past few years Veterans and military families, including those near Fort Knox and Fort Campbell Rural home...
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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.
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 verification is required only when the lender has reason to believe the income may not continue. The full allowance is added to monthly income; it does not reduce the corresponding monthly debt payment.
A clear file helps explain how your church pays you. Have these items available for the lender to review:
Current paystubs and W-2s.
A church compensation letter or employment agreement separating salary from the housing allowance.
Payment records, such as deposits or check copies, that help establish the allowance's history.
Your housing allowance designation and the terms under which it is paid.
Tax returns and additional employment records if requested for your loan.
This is a preparation list. Your loan officer will identify which documents are actually required for your situation. A church letter by itself does not establish mortgage approval.
Is the housing allowance tax-free?
A qualifying minister's housing allowance may be excluded from federal gross income for income-tax purposes, subject to IRS limits and designation rules. That does not automatically make it exempt from self-employment tax. The IRS generally includes the allowance in self-employment earnings, with exceptions that depend on the minister's circumstances.
What if the allowance is not included in taxable wages?
Do not assume it is unusable. Tell your loan officer about it and provide the supporting compensation records so it can be evaluated.
Can I subtract the allowance from my mortgage payment?
No under the Fannie Mae rule above. It is evaluated as income, not as a payment reduction.
Will the allowance guarantee approval?
No. The lender also reviews the rest of your application, including credit, debts, assets, and the property. FHA, VA, USDA, and other programs have their own requirements.
Get your Kentucky mortgage questions answered
If you receive a clergy housing allowance and are considering buying or refinancing, let's start with your compensation documents and the loan options that fit your situation.
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 ...
If you are trying to figure out whether you earn too much to use a Kentucky Housing Corporation (KHC) loan, this page has the current numbers. Below are KHC's income limits by county, the maximum purchase price, the down payment assistance amounts, and the credit and debt-to-income rules that go with them — updated for 2026. The short answer KHC uses two different income-limit charts . Under the Secondary Market programs, most Kentucky counties allow up to $147,350 in qualifying income, rising to $195,650 in the Northern Kentucky counties. Under the lower Mortgage Revenue Bond (MRB) programs, most counties cap household income near $101,040 for a 1–2 person household and $117,880 for 3 or more. The maximum purchase price for either is $566,354 . $566,354 Max purchase price $12,500 Max down payment help 620 Min score (FHA/VA/RHS) 660 Min score (conventional) What Kentucky Housing Corporation Is — and Why the Income Limit Matters ...
