Mortgage Loans In Kentucky
Kentucky Conventional Mortgages – These mortgages are not insured by the government, but they do conform to the government standards known as Freddie Mac and Fannie Mae. One thing to note about a conventional mortgage is that they require mortgage insurance unless you can put down at least 20%; once the loan’s principal balance drops below 78% of the home’s value, you no longer have to pay mortgage insurance.
- Qualifying credit: 620-740
- Loan terms: 15 or 30 years
- 3% Down Payment minimum
Kentucky FHA Loans – An FHA loan is insured by the Federal Housing Administration, who guarantees a portion of the loan should the borrower default. This minimizes the lender’s risk and allows them to expand their borrowing parameters to the benefit of first-time homebuyers who might not have large savings or strong credit. Keep in mind that closing costs will be much higher for this type of mortgage and the home must meet rigorous appraisal standards.
- Qualifying credit: 500 minimum with 10% down payment and 580 score higher 3.5% down payment
Kentucky VA Loans If you are an active duty military personnel (or veteran in California and Hawaii), you may be eligible for this mortgage plan backed by the Dept. of Veteran Affairs. Income and credit requirements are significantly lower than other loans, making the approval process much easier, but be prepared to face longer closing periods than you would experience through a private lender.
- Qualifying credit: No minimum Credit score for va loans
- Outstanding debt---debt ratios usually around 45% on the backend
- Credit background-----looking at last 2-4 years mostly in regards to bankruptcies, foreclosures, short-sales,
- Employment history--2 year work history not really the same job but same line of work and pay being consistent.