2025 Kentucky FHA Loan Requirements & Loan Limits
Updated for 2025! FHA loan limits are higher across Kentucky. The new single-family limit is $524,225—an increase of $25,968 from last year. That means you can buy more home with just 3.5% down!
FHA Loan Requirements in Kentucky – 2025 Snapshot
- Minimum Credit Score: 580+ (3.5% down); 500–579 (10% down)
- Minimum Down Payment: 3.5% (with 580+ score)
- Debt-to-Income (DTI) Ratio: Typically up to 57% (with strong credit)
- Bankruptcy Wait Period: 2 years from Chapter 7 discharge, 1 year for Chapter 13 (with on-time payments)
- Foreclosure Wait Period: 3 years
- Loan Limits: $524,225 (1-unit); $671,200 (2-unit); $811,275 (3-unit); $1,008,300 (4-unit)
- Property Type: Must be your primary residence
- Loan Insurance: Upfront (UFMIP) + monthly MIP required
Kentucky FHA Loan Requirements for income, credit, income and loan limits
2025 FHA Loan Limits by County in Kentucky
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Adair | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Allen | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Boone | $603,750 | $772,900 | $934,800 | $1,161,050 |
| Campbell | $603,750 | $772,900 | $934,800 | $1,161,050 |
| Gallatin | $603,750 | $772,900 | $934,800 | $1,161,050 |
| Kenton | $603,750 | $772,900 | $934,800 | $1,161,050 |
| Woodford | $524,225 | $671,200 | $811,275 | $1,008,300 |
See FHA limits for all counties on HUD.gov |
What does this mean for you?
You can now purchase a home in Kentucky with as little as 3.5% down—even up to $524,225 for a single-family property! Multi-unit buyers benefit from higher limits, too.
You can now purchase a home in Kentucky with as little as 3.5% down—even up to $524,225 for a single-family property! Multi-unit buyers benefit from higher limits, too.
Kentucky FHA Loan FAQs
Most lenders require a 580 score for 3.5% down. Some allow 500–579 with 10% down.
The minimum down payment is 3.5% if your credit score is 580 or higher with scores between 500 and 579 FHA loans in Kentucky require a down payment of 10%. This does not mean you're automatically apporved if yo uhave these scores.
You typically must wait 2 years after Chapter 7 bankruptcy, 1 year after Chapter 13 (with on-time payments), and 3 years after foreclosure or short sale. Must have clear Cavirs too.
Most counties: $524,225 (single-family). Cincinnati metro counties: $603,750 (Boone, Campbell, Gallatin, Kenton).
FHA generally allows DTI up to 45–57%, depending on credit and other factors. There are two debt ratios, front end and backend with the max front end ratio being 45% and the max backend ratio of 56.99% for an automated approval through Desktop Underwriting or Loan Prospector, typcially called aus
What does this mean for you?
You can now purchase a home in Kentucky with as little as 3.5% down—even up to $524,225 for a single-family property! Multi-unit buyers benefit from higher limits, too.
You can now purchase a home in Kentucky with as little as 3.5% down—even up to $524,225 for a single-family property! Multi-unit buyers benefit from higher limits, too.
Kentucky FHA Loan FAQs
Most lenders require a 580 score for 3.5% down. Some allow 500–579 with 10% down.
The minimum down payment is 3.5% if your credit score is 580 or higher.
CAIVRS stands for Credit Alert Interactive Voice Response System. It’s a federal database lenders use to check if you have any unpaid federal debts or defaulted government loans. A clear CAIVRS is required for FHA approval.
Generally, you need a two-year work history in the same field or line of work. Recent grads or job changes are often acceptable if you can document stability and likelihood of continued employment.
Yes, FHA loans are available for manufactured and double-wide homes if the home is permanently affixed to owned land and meets HUD standards. Mobile homes in parks (leased land) are not eligible.
Yes, Kentucky offers down payment assistance programs that can cover your 3.5% down and closing costs, allowing some buyers to purchase with little to no out-of-pocket funds. Program and eligibility rules apply.
FHA loans require upfront (UFMIP) and monthly mortgage insurance premiums (MIP), regardless of down payment. Unlike conventional PMI, FHA mortgage insurance stays for the life of the loan if you put less than 10% down.
Yes, you can get another FHA loan as long as you no longer have the previous FHA loan on a primary residence. Exceptions exist if relocating for work or proven need.
Generally, you can only have one FHA loan at a time. Rare exceptions exist for relocations, job changes, or family size increases, but you must document the need and get lender approval.
Collections are reviewed case by case. Medical collections are usually ignored. Non-medical collections over $2,000 may need to be paid or included in your debt ratio. Always disclose all debts for a transparent pre-approval.
A past car repossession does not automatically disqualify you. Lenders will want to see re-established credit and an explanation for the repo. If it’s recent or unsatisfied, you may need to resolve the balance or wait a year or more.
FHA requires that 0.5% of the outstanding student loan balance (if no payment is reported) be counted in your DTI ratio, even if payments are deferred. Document your actual payment for the most accurate approval outcome.
Most lenders want at least one credit score, but FHA technically allows for “no score” loans using manual underwriting, with strict compensating factors like low debt, strong job history, and rent verification.
Yes, but only a small number of lenders offer this. You’ll need to show alternative credit (rent, utilities, insurance, etc.), and manual underwriting guidelines apply. Expect stricter review and possibly higher down payment requirements.
Typical closing times are 30–45 days in Kentucky, but can be faster if your documents are ready and there are no appraisal or title delays. Down payment assistance can add a few days to the process.
Ready to Buy with 3.5% Down?
Start your FHA pre-approval today or ask a question—no obligation, fast response.
Contact Joel Lobb, Kentucky FHA ExpertCall/Text: (502) 905-3708
Ready to Buy with 3.5% Down?
Start your FHA pre-approval today or ask a question—no obligation, fast response.
Contact Joel Lobb, Kentucky FHA ExpertCall/Text: (502) 905-3708
