KENTUCKY FHA MORTGAGE LENDER GUIDELINES





1. Low Down Payment –  FHA Mortgage Loans only require a 3.5% down payment. And what makes that even more attractive is that it can be a gift from a relative. Do you have a parent or sibling who would “Gift” you some money for a down payment? If so, it could be time to apply for an  FHA Mortgage Loan.

2.Flexible Credit Qualifying – HUD did NOT set a credit score requirement for qualifying for an  FHA Mortgage Loan. However many lenders in the market today have drafted “Overlays” that set minimum credit score requirements. Most lenders like to see a minimum 620 credit score, but don’t get discouraged if you are not there yet. If you are close to 620, it is often just as simple as reviewing your credit to determine how to quickly raise it. If you are not close to 620, ask your FHA Mortgage Loan Originator if they have a program for you. Chances are, there is! Bankruptcies and prior foreclosures do not automatically disqualify you either.

3.The Seller Can Pay Your Closing Costs – That’s right. You need to have a quality Realtor who will help you negotiate not only the best price for the home, but also that the seller will pay your closing costs. HUD allows FHA Mortgage Loans to have the seller pay up to 6% of the purchase price. Sounds good so far, a down payment gift and seller paying closing costs!

4.Flexible Income Qualifying – The standard for income qualifying ratios is 31/43 which means that up to 31% of your monthly income can be used to pay your monthly household mortgage payment; and up to 43% of your monthly income can be used to qualify for ALL monthly expenses. Those ratios can go up to 55% if you have good credit and a good income history allowing you to qualify when others might not.

5.Qualify Without Your Spouse’s BAD Credit – This is a tricky one but it is also not well known. You can effectively qualify for an FHA Mortgage Loan without your spouse’s Bad Credit. FHA will look at your spouse’s credit but cannot decline your loan due to your spouse’s debt or credit score. So if you have a spouse with a crummy credit profile, you should take a look at  FHA Mortgage Loans to see if it will work for you.


What are Kentucky FHA Loans?

FHA stands for Federal Housing Authority. FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you’re buying a home or want to refinance your mortgage, FHA loans might be right for you. If you’re unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with super low closing costs and flexible payment options.

What factors determine if I am eligible for an FHA Loan in Kentucky?

To be eligible for FHA Mortgage Loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.



What is the maximum amount that I can borrow?

The maximum amount for an FHA Mortgage is determined by:



Maximum Loan Amount in Kentucky: The Maximum FHA Loan amount allowed for FHA Home Mortgages varies from county to county in Kentucky. The highest maximum FHA Home Loan right now in Kentucky county is $294,000. To see what the limit is in the county in which you’re interested, please refer to the Kentucky FHA Loan Limit chart at the bottom of this page.



Maximum financing: In Kentucky, the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.



How much money will I need for the down payment and closing costs?

Kentucky FHA loans require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.



What property types are allowed for FHA Loans in Kentucky?

While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.




There are three main types of FHA Refinance loans available in KY.



FHA Rate/Term Refinance

The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.



Cash-Out Refinance

An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.



Streamline Refinance

The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.


General FHA loan requirements include:
  • The loan must be for a property used for your primary residence.
  • The property must be appraised by an FHA-approved appraiser.
  • The property must be safe, sound and secure, in compliance with minimum property standards as defined by the U.S. Department of Housing and Urban Development, or HUD.
  • You must have a valid Social Security number and be a legal resident of the U.S.
  • You must have a minimum credit score of 580 with a down payment of at least 3.5 percent, or a minimum credit score of 500 with a down payment of at least 10 percent.
  • You may not have delinquent federal debt or judgments, or debt associated with past FHA loans.
  • You must have steady employment history.
  • You must make a down payment of at least 3.5 percent of the purchase price. If the down payment was gifted by a family member, documentation is required.
  • You must have a DTI ratio that does not exceed limits.
  • Any judgments or collections on the credit report must be resolved or satisfactorily explained.
  • Any required waiting period has passed, as follows:
EventWaiting periodWaiting period with extenuating circumstances (nonrecurring events beyond your control that result in sudden, significant, prolonged reduction in income or a catastrophic increase in financial obligations)
Chapter 7 or 11 bankruptcyFour yearsTwo years
Chapter 13 bankruptcyTwo years from discharge, or
four years from dismissal
Two years
Multiple bankruptciesFive years if more than one filing in last seven years. Most recent bankruptcy must have been caused by extenuating circumstances.Three years from most recent discharge or dismissal
ForeclosureSeven yearsThree years, with additional requirements after three years up to seven years:
90 percent maximum loan-to-value purchase, principal residence, limited cash-out refinance
Deed-in-lieu of foreclosure, preforeclosure sale (short-sale), or charge-off of mortgage accountFour yearsTwo years

Debt-to-Income Ratio Limits
Two DTI ratio figures are calculated when considering an FHA mortgage. The front-end DTI ratio is your total monthly housing expense, which includes the mortgage principal and interest, mortgage insurance, homeowners insurance, property taxes and applicable homeowners association fees, divided by your total monthly income. The back-end DTI ratio is your total monthly debt obligation, including housing, minimum credit card payments, auto loans, student loans and any other required monthly debt payment, divided by your total monthly income.
Standard FHA front- and back-end DTI limits are 31 percent and 43 percent, respectively. If you earn $3,500 per month, your front-end DTI cannot exceed $1,085 and the sum of all your monthly debt obligations cannot exceed $1,505.
f
Applications for borrowers with lower salaries and higher DTIs are manually underwritten. Manual underwriting means that your lender assigns a person to review your loan application and documents, versus running your information through an automated underwriting system. Manually underwritten FHA loans allow for front- and back-end DTI ratios of up to 40 percent and 50 percent, respectively. To qualify for these higher DTI limits, you will need to meet other requirements.
















Kentucky FHA Loan Limits for 2019 below:


ADAIR County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
ALLEN County
BOWLING GREEN, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
ANDERSON County
FRANKFORT, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BALLARD County
PADUCAH, KY-IL
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BARREN County
GLASGOW, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BATH County
MOUNT STERLING, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BELL County
MIDDLESBOROUGH, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BOONE County
CINCINNATI, OH-KY-IN
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BOURBON County
LEXINGTON-FAYETTE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BOYD County
HUNTINGTON-ASHLAND, WV-KY-OH
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BOYLE County
DANVILLE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BRACKEN County
CINCINNATI, OH-KY-IN
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BREATHITT County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BRECKINRIDGE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
BULLITT County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
SingleDuplexTri-plexFour-plex
$304,750$390,100$471,550$586,050
BUTLER County
BOWLING GREEN, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CALDWELL County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CALLOWAY County
MURRAY, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CAMPBELL County
CINCINNATI, OH-KY-IN
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CARLISLE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CARROLL County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CARTER County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CASEY County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CHRISTIAN County
CLARKSVILLE, TN-KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CLARK County
LEXINGTON-FAYETTE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CLAY County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CLINTON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CRITTENDEN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
CUMBERLAND County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
DAVIESS County
OWENSBORO, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
EDMONSON County
BOWLING GREEN, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
ELLIOTT County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
ESTILL County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
FAYETTE County
LEXINGTON-FAYETTE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
FLEMING County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
FLOYD County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
FRANKLIN County
FRANKFORT, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
FULTON County
UNION CITY, TN-KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
GALLATIN County
CINCINNATI, OH-KY-IN
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
GARRARD County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
GRANT County
CINCINNATI, OH-KY-IN
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
GRAVES County
MAYFIELD, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
GRAYSON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
GREEN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
GREENUP County
HUNTINGTON-ASHLAND, WV-KY-OH
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HANCOCK County
OWENSBORO, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HARDIN County
ELIZABETHTOWN-FORT KNOX, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HARLAN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HARRISON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HART County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HENDERSON County
EVANSVILLE, IN-KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HENRY County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
SingleDuplexTri-plexFour-plex
$304,750$390,100$471,550$586,050
HICKMAN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
HOPKINS County
MADISONVILLE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
JACKSON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
JEFFERSON County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
SingleDuplexTri-plexFour-plex
$304,750$390,100$471,550$586,050
JESSAMINE County
LEXINGTON-FAYETTE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
JOHNSON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
KENTON County
CINCINNATI, OH-KY-IN
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
KNOTT County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
KNOX County
LONDON, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LARUE County
ELIZABETHTOWN-FORT KNOX, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LAUREL County
LONDON, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LAWRENCE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LEE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LESLIE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LETCHER County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LEWIS County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LINCOLN County
DANVILLE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LIVINGSTON County
PADUCAH, KY-IL
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LOGAN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
LYON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MADISON County
RICHMOND-BEREA, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MAGOFFIN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MARION County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MARSHALL County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MARTIN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MASON County
MAYSVILLE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MCCRACKEN County
PADUCAH, KY-IL
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MCCREARY County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MCLEAN County
OWENSBORO, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MEADE County
ELIZABETHTOWN-FORT KNOX, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MENIFEE County
MOUNT STERLING, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MERCER County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
METCALFE County
GLASGOW, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MONROE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MONTGOMERY County
MOUNT STERLING, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MORGAN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
MUHLENBERG County
CENTRAL CITY, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
NELSON County
BARDSTOWN, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
NICHOLAS County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
OHIO County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
OLDHAM County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
SingleDuplexTri-plexFour-plex
$304,750$390,100$471,550$586,050
OWEN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
OWSLEY County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
PENDLETON County
CINCINNATI, OH-KY-IN
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
PERRY County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
PIKE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
POWELL County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
PULASKI County
SOMERSET, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
ROBERTSON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
ROCKCASTLE County
RICHMOND-BEREA, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
ROWAN County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
RUSSELL County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
SCOTT County
LEXINGTON-FAYETTE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
SHELBY County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
SingleDuplexTri-plexFour-plex
$304,750$390,100$471,550$586,050
SIMPSON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
SPENCER County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
SingleDuplexTri-plexFour-plex
$304,750$390,100$471,550$586,050
TAYLOR County
CAMPBELLSVILLE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
TODD County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
TRIGG County
CLARKSVILLE, TN-KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
TRIMBLE County
LOUISVILLE/JEFFERSON COUNTY, KY-IN
SingleDuplexTri-plexFour-plex
$304,750$390,100$471,550$586,050
UNION County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
WARREN County
BOWLING GREEN, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
WASHINGTON County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
WAYNE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
WEBSTER County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
WHITLEY County
LONDON, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
WOLFE County
NON-METRO
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
WOODFORD County
LEXINGTON-FAYETTE, KY
SingleDuplexTri-plexFour-plex
$294,515$377,075$455,800$566,425
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
Joel Lobb (NMLS#57916)
Senior  Loan Officer
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com
http://www.nmlsconsumeraccess.org/
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.


This is a listing of the FHA single family mortgage limits. This listing was downloaded from the Department's Computerized Home Underwriting Management System. Since mortgage limits are updated constantly, please contact the Homeownership Center if you believe this information is in error. 

Joel Lobb
Senior  Loan Officer
(NMLS#57916)


 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346