Different Types of Kentucky Home Loans

Different Loan Programs to Consider below:

1. KHC Loan (Kentucky Housing Loan with Down Payment Assistance)


The first no money-down home  loan program offered by Kentucky Housing currently offers $10,000 in down payment assistance (DAP)  along with a 30 year fixed rate loan of 6.0%. The maximum income limits are $157,000 for a household with a max loan of 481,000.00 It requires a 620 minimum credit score and can be done anywhere in Kentucky. 

-Need to be 2 years removed from a Chapter 7 Bankruptcy and 3 years removed from a foreclosure.


2. USDA Loan (Rural Housing Loan)


The second no money down home loan option is the USDA program for properties located outside urban areas of Kentucky areas where you can secure a no money down loan at a current low fixed rate of 6.75% on 30 years.  The max household income limits usually are between  $110,500 to $146,000 for most rural area counties depending on household family size.   as long as you meet the income and credit restrictions 

620-640 middle credit score is needed for loan approval on this program. They're no max loan limits on USDA loans. You just need to qualify based on your debt to income ratio (see below under income section)

Need to be 3 years removed from a Chapter 7 Bankruptcy and 3 years from a foreclosure

3. FHA Loan 


If you have access to  putting a small down payment down on the sales price of the house , ( at least a 3.5% down payment of the sales price for FHA)we can always look at doing a FHA loan down to a lower credit score of 580-

The current 30 year fixed rate loan with someone having at least 3.5% down payment is averaging around 6.75% on a 30 year fixed rate loan.

It is possible to get a FHA loan with a score below 580, but you would need 10% down payment and it is much tougher to qualify honestly with most FHA lenders we deal with.

The max loan for a FHA loan in Kentucky is $472,000 and there  are no maximum household income limits nor geographical restrictions on FHA loans so you can buy a home in any location with no check to your maximum income limits.

Need to be 2 years removed from a Chapter 7 Bankruptcy and 3 years from a foreclosure

4. Conventional Loan

Requires 5% down payment and good for buyers that have a 660-720 credit score or higher . The max loan is $726,200 and has no income restrictions and the loan can be done anywhere. Current rate is around 7.25% with someone with high credit scores over 720

Need to be removed from a Chapter 7 or 13 Bankruptcy from 4 years of discharge date.

Best suited for borrowers will have high credit scores, say over 700, and at least 3 to 5% down payment.

5. VA loan 

If you happen to be a Veteran, you can also buy a house, going no money down with a current 30 year fixed rate of 6.75%.

-Need to be 2 years removed from a Chapter 7 Bankruptcy and 2 years removed from a foreclosure.

Must be a veteran and no minimum score required but most VA lenders will want a 580 or higher. some may want a 620 

-No max income limits or purchase price limits  or restrictions on where home is located. 

Different Types of Kentucky Home Loans

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119


NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval
nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).