🔥 NEW: 2025 FHA Appraisal Updates in Effect!
June 27, 2025: HUD released Mortgagee Letter 2025-18 with streamlined FHA appraisal requirements. Faster approvals, less paperwork, and better alignment with conventional loans!
🎯 Top 5 Reasons Kentucky Families Choose FHA Loans
Low Down Payment
Just 3.5% down payment required - much lower than conventional loans
Flexible Credit
Minimum 580 credit score for 3.5% down, 500-579 for 10% down
Seller Paid Closing Costs
Sellers can contribute up to 6% toward your closing costs
Flexible Income
Various income sources accepted with proper documentation
Qualify Without Spouse
Can qualify individually even if spouse has poor credit
🆕 What's New: 2025 FHA Appraisal Changes
HUD's latest updates make FHA loans even more attractive for Kentucky homebuyers:
- 🚫 Eliminated: Remaining Economic Life requirements for appraisers
- 📷 Streamlined Photos: No more attic or crawl space photos required
- 📊 Fewer Comps: Reduced comparable sales requirements in dynamic markets
- ⚡ Faster Process: Quicker appraisal turnaround times
- 🎯 Better Consistency: Closer alignment with conventional loan standards
💡 What This Means for You
These changes make FHA loans more competitive in Kentucky's fast-moving real estate market. Your FHA offer can now compete more effectively with conventional financing, especially when combined with our available down payment assistance programs!
📋 Kentucky FHA Loan Requirements
| Requirement | Details |
|---|---|
| Credit Score | 580+ for 3.5% down | 500-579 for 10% down |
| Down Payment | 3.5% minimum (can be gifted from family or qualified sources) |
| Co-Signer | Yes - non-occupying co-borrowers allowed to help qualify |
| Debt-to-Income | Typically 43% or less (higher with strong compensating factors) |
| Employment | 2 years steady work history (fixed income sources accepted) |
| CAIVRS | Must have clear CAIVRS (no outstanding federal debt) |
| Property Types | Single family, condos, 2-4 unit properties, manufactured homes |
| Mortgage Insurance | Required for all FHA loans - based on loan-to-value and term (not credit score or DTI like conventional PMI) |
💰 Kentucky FHA Loan Limits (2025)
Maximum FHA Loan Amounts by County
The maximum FHA loan amount varies by county in Kentucky. Current limits include:
- Base Limit: $524,225
- Mid-Range Counties: $671,200
- Higher Cost Areas: $811,275
- Highest Limit Counties: $1,008,300
Maximum Financing: 97.75% of appraised value or sales price (whichever is lower)
Contact me for specific loan limits in your Kentucky county - limits vary by location. I'll help you determine the exact limit for your area.
🏡 Available Kentucky FHA Loan Types
Purchase Loans
- FHA Purchase: Buy your primary residence with just 3.5% down
- FHA + KHC: Combine with Kentucky Housing Corporation down payment assistance
Refinance Options
- Rate/Term Refinance: Lower your rate or change loan terms
- Cash-Out Refinance: Access your home's equity for renovations, debt consolidation
- FHA Streamline: Quick refinance for existing FHA borrowers (no appraisal needed)
✅ Pros and Cons of FHA Loans
✅ Advantages
- Low 3.5% down payment
- Flexible credit requirements
- Competitive interest rates
- Down payment can be gifted
- Seller can pay closing costs
- Available after bankruptcy/foreclosure
- No prepayment penalties
⚠️ Considerations
- Mortgage insurance required
- Primary residence only
- Loan limits apply
- Property must meet FHA standards
- Upfront mortgage insurance premium
🕐 Waiting Periods After Financial Events
| Event | Standard Waiting Period | With Extenuating Circumstances |
|---|---|---|
| Chapter 7 Bankruptcy | 4 years | 2 years |
| Chapter 13 Bankruptcy | 2 years from discharge | 1 year with court approval |
| Foreclosure | 3 years | 3 years (with conditions) |
| Short Sale/Deed-in-Lieu | 3 years | 2 years |
🎁 Kentucky Down Payment Assistance Available
Kentucky Housing Corporation (KHC) Programs
We still have down payment assistance available through KHC programs for qualified Kentucky first-time homebuyers. These funds can significantly reduce your upfront costs and make homeownership more accessible.
Program Benefits:
- Up to $10,000 in KHC down payment assistance
- 5% grant available for qualified borrowers
- Below-market interest rates
- Can be combined with FHA loans
- Income and purchase price limits apply
🚀 Ready to Get Your Kentucky FHA Loan Started?
Over 20 Years Experience | 1,300+ Kentucky Families Helped
Let me guide you through the new 2025 FHA guidelines and find the best loan program for your situation. Free pre-approval with same-day decisions!
(502) 905-3708
kentuckyloan@gmail.com
KentuckyFHALoan.com
911 Barret Ave.
Louisville, KY 40204
Joel Lobb - Kentucky Mortgage Loan Officer
NMLS #57916 | EVO Mortgage - NMLS #1738461
Important Disclosures:
- Equal Housing Lender - All loan programs subject to credit approval
- Rates and terms subject to change without notice
- Visit NMLS Consumer Access for licensing information
- This website is not endorsed by FHA, VA, USDA, or any government agency
- Kentucky Mortgage Loan Officer License Only