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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.

3.5% down · 580+ creditLearn More →

🎖 VA Loan

Zero down and no monthly mortgage insurance for veterans and active-duty service members.

$0 down · VA eligibleLearn More →

🌾 USDA Loan

100% financing for eligible rural and suburban Kentucky buyers within income limits.

$0 down · USDA areasLearn More →

🏛 KHC Assistance

Kentucky Housing down payment assistance for first-time and repeat buyers.

Up to $12,500 assistanceLearn More →

📈 Conventional

Best long-term value for stronger credit. PMI cancels at 20% equity, unlike FHA.

3% down · 620+ creditLearn More →

💰 Zero Down Options

Every route to buying with nothing down in Kentucky — VA, USDA, and KHC combos.

$0 down programsLearn More →

🌟 First-Time Buyers

All Kentucky first-time homebuyer programs compared in plain English.

Programs & grantsLearn More →

📊 Credit Scores

What score you actually need for each loan type in 2026 — and how to raise yours.

By loan programLearn More →

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FHA vs. Conventional vs. USDA vs. KHC — run side by side with your actual numbers so you see the real payment before you commit.

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Joel Lobb and family - Kentucky mortgage loan officer

Kentucky Local. Not a Call Center.

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.

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What is the Current Mortgage Insurance Requirements for a Louisville Kentucky FHA Loan?

- March 28, 2025

On a KY FHA loan , you typically have to pay both an upfront and an annual mortgage insurance premium (MIP):

Upfront MIP on A Kentucky FHA Loan

Kentucky FHA loans now collect upfront MIP cost 1.75% of the home loan. For instance, if you borrow $100,000, you must pay $1,750 ($100,000 x 1.75%). It can be paid in full upfront, or added to your mortgage balance. This MIP applies no matter your loan amount or term. Most FHA buyers in Kentucky choose to finance the MIP into the loan. If you decide to pay the upfront MI out of your own funds, then you must pay all the mi premium, not just a part of it. The FHA upfront mi fee is not refundable now. This is a change whereas you use to be able to get e refund if the loan was refinanced or paid off in the first 5 years.

Annual MIP on a Kentucky FHA loan

The annual MIP or monthly mortgage insurance is divided by 12 and added to your monthly mortgage payment. The current maximum of 1.35% of the loan amount. How much and how long you have to pay the annual MIP depends on the originating date of your loan, the amount, and your loan-to-value ratio. For example, if you borrow $100,000 on a 30 year FHA loan, the monthly mortgage insurance would be
$112.00 ($100,00 x 1.35=$1350/12=$112.00 monthly mi)

The monthly mi payable to FHA is now for life of loan. This is a big change to keep in mind because FHA use to drop the monthly mi once you reached to 78% ltv of the original balance.

For Kentucky FHA loans with less than 15 year terms the monthly mortgage insurance (Annual MIP) much cheaper.

FHA is changing the duration for the collection of MIP:

o For all mortgages with an original principal LTV of 90% or less, regardless of loan term, the annual MIP will be assessed for 11 years.
o For all mortgages with an original principal LTV greater than 90%, regardless of loan term, the annual MIP will be assessed for the entire life of the loan.
Loans of 15 year terms or less with LTV 78% or less will pay an MIP amount of 45 bps.
FHA

Current Mortgage Insurance Requirements for a Louisville Kentucky FHA Loan

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