Whether you’re buying your first home, using down payment assistance, or rebuilding credit — there’s a program that fits. Compare them side by side before you commit.
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The go-to for first-time buyers and 580+ credit. Low down payment and flexible guidelines.
The White House is reportedly considering a draft executive order titled "Decreasing Housing Costs for the American People," first obtained by Scotsman Guide and also reported by HousingWire . As of this writing it has not been signed , and the final details could change. Here is what the current draft includes and why Kentucky borrowers should keep an eye on it. What the Draft Proposes Reducing or eliminating certain loan-level pricing fees on eligible refinances Waiving appraisals and some documentation on qualifying refinances that lower your payment Expanding title insurance waivers to reduce closing costs Directing the VA and USDA to pursue lower rates for eligible borrowers Requiring servicers to notify you when you may qualify to remove mortgage insurance Who in Kentucky Could Benefit Homeowners who bought or refinanced at higher rates over the past few years Veterans and military families, including those near Fort Knox and Fort Campbell Rural home...
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Getting a Kentucky Mortgage in 3 Simple Steps
No confusing paperwork trails. No surprise fees. A clear path from first call to keys in hand.
01
💬 Get Pre-Qualified
Free application review with same-day answers. We look at your credit, income, and goals — no cost, no obligation, no pressure.
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FHA vs. Conventional vs. USDA vs. KHC — run side by side with your actual numbers so you see the real payment before you commit.
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Hi, I’m Joel Lobb — a Kentucky dad who’s spent 20+ years helping families across all 120 counties buy their first home. When you call, you get me — not a phone tree. Questions on a Saturday morning? I answer.
1,300+ Kentucky families have trusted me with their mortgage — from Louisville to Lexington to the smallest towns in the state. Free application reviews, same-day pre-approvals, and honest answers about what you actually qualify for.
Kentucky DTI Calculator: Debt-to-Income Limits for FHA, VA, USDA and Conventional
Updated October 2026 · Reviewed by Joel Lobb, Senior Loan Officer, NMLS #57916, EVO Mortgage
Your debt-to-income ratio (DTI) is your monthly debts plus your new house payment, divided by your gross monthly income. Common limits are 31/43% for FHA, 41% for VA (plus residual income), 29/41% for USDA, and 45% for Conventional. Automated underwriting can approve higher. Enter your numbers below to see where you stand on each program.
Example numbers are filled in. Replace them with your own.
What if I fix my credit? See where your score could land.
Mortgage lenders pull scores from all three bureaus and use the middle one. Enter your middle score and what is on your report, then check the moves you plan to make.
Moves you plan to make
Estimated score after these moves
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This is an educational estimate, not a credit-bureau model. Real score changes vary by file. Card balances usually show up within 30–45 days, when the card reports. A lender can sometimes request a rapid rescore in a few days once balances are paid.
What income will a lender actually count?
Lenders use gross monthly income (before taxes). Overtime, bonus and self-employment income are usually averaged over two years. This total feeds the next two calculators.
Base pay
Overtime, bonus or commission
Self-employed or 1099
Other monthly income
Estimated qualifying income
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Source
How it's counted
Monthly
Is my debt-to-income ratio low enough?
DTI = monthly debts on your credit report plus the new house payment, divided by gross monthly income. Each loan program has its own limit, and some count student loans differently.
Program
Student loan counted
Housing ratio
Total DTI
Typical limit
Status
Limits shown are common approvals. Automated underwriting can approve FHA up to about 46.9% / 56.9% and Conventional up to 50% with strong credit or savings. VA also checks residual income (what is left over each month after all bills). KHC loans follow the limits of the first mortgage they're paired with.
How much house can I afford in Kentucky?
Your highest price for each program at its usual DTI limit, built from real Kentucky costs: property tax, homeowners insurance, and each program's mortgage insurance or funding fee.
Program
Down payment
Max price
Monthly payment
What's in it
Assumptions: FHA 3.5% down, 1.75% upfront MIP financed, 0.55% annual MIP, 43% DTI. VA $0 down, 2.15% first-use funding fee financed (waived with a disability rating), 41% DTI. USDA $0 down, 1% guarantee fee financed, 0.35% annual fee, 29% / 41%. Conventional 5% down, estimated PMI 0.5% a year, 45% DTI. KHC down payment assistance (up to $12,500, repaid over 15 years) can cover the FHA or Conventional down payment and closing costs. Its payment adds to your DTI.
For education only. These estimates are not a credit report, a loan approval, or a commitment to lend. Actual approval depends on full credit, income, asset and property review, and program guidelines change. Joel Lobb, NMLS #57916, EVO Mortgage, Company NMLS #1738461, 10602 Timberwood Cir Ste 3, Louisville, KY 40223. Equal Housing Opportunity.
How lenders calculate DTI
There are two ratios. The housing ratio (front-end) is the new payment alone: principal, interest, property tax, homeowners insurance, mortgage insurance and any HOA dues, divided by gross monthly income. The total ratio (back-end) adds every monthly debt on your credit report: car loans, credit card minimums, student loans, personal loans, and child support you pay.
Utilities, phone bills, car insurance and groceries are not counted. Income is gross (before taxes). The qualifying income calculator shows how overtime, self-employment and benefits are counted.
DTI limits by Kentucky loan program
Program
Typical limit
Can go higher?
FHA
31% / 43%
Up to about 46.9% / 56.9% with an automated approval
VA
41% total
Yes, when residual income is strong
USDA
29% / 41%
Slightly, with a GUS approval and strong credit
Conventional
45% total
Up to 50% with a Desktop Underwriter approval
KHC
Follows the first mortgage
The DPA payment counts as a debt
How student loans are counted
If your credit report shows a monthly payment above $0, most programs use it. If the payment shows $0, or the loan is deferred, each program uses its own rule:
FHA and USDA: 0.5% of the balance per month
Conventional: 1% of the balance, unless your servicer documents an income-driven payment
VA: 5% of the balance divided by 12, unless the loan is deferred at least 12 months past closing
On a $28,000 balance that's $140 a month for FHA, $280 for Conventional and about $117 for VA. That one rule can decide which program you qualify for.
Ways to lower your DTI before you apply
Pay off a small installment loan. Kentucky lenders can often leave out installment debts with 10 or fewer payments left. Ask first, because Conventional and FHA rules differ.
Pay credit cards down to cut the minimum payments.
Add a co-borrower's income.
Choose a lower price, or use KHC assistance for the down payment instead of financing more.
Get your student loan servicer to document an income-driven payment.
What is the maximum DTI for an FHA loan in Kentucky?
The standard FHA limits are 31% for housing and 43% total. With an automated underwriting approval, FHA can go up to about 46.9% housing and 56.9% total when credit, savings or other compensating factors are strong.
Is DTI based on gross or net income?
Gross income, meaning before taxes and deductions. Non-taxable income like Social Security or VA disability can be grossed up, usually by 15% to 25%, which helps your ratio.
Do utilities or car insurance count in my DTI?
No. Only debts that appear on your credit report, plus court-ordered payments like child support, count, together with the new house payment. Utilities, phone bills, insurance and living expenses are not included.
How are deferred student loans counted in DTI?
FHA and USDA use 0.5% of the balance per month, Conventional uses 1% unless an income-driven payment is documented, and VA uses 5% of the balance divided by 12 unless the loan is deferred at least 12 months past closing.
How to Get Approved for a Mortgage Loan in Kentucky Thank you for visiting. I hope you find this website both informative and empowering as you explore your Kentucky mortgage options. My goal is simple: help you understand what mortgage underwriters actually review, help you avoid preventable approval issues, and help you choose the right loan program for your situation. I specialize in assisting Kentucky first-time homebuyers with FHA, VA, USDA Rural Housing, KHC down payment assistance , and Fannie Mae conventional mortgage loans . I proudly serve all 120 counties in Kentucky. FHA Loans in Kentucky VA Loans in Kentucky USDA Rural Housing Loans in Kentucky Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I've had the privilege of helping more than 1,300 Kentucky families buy a home or refinance their current mortgage. Whether you are a first-time buyer, a veteran, a USDA buyer, a credit-challenged ...
Kentucky Welcome Home Grant 2026 Update: Program Closed and Out of Funds May 2026 update for Kentucky homebuyers: the 2026 Welcome Home Grant is now closed for new reservations. This does not mean you cannot buy a home. It means you need to pivot quickly to other Kentucky mortgage and down payment assistance options. May 2026 Update Welcome Home Grant Closed KHC DAP Still Available USDA, VA, FHA Options Important Update: The 2026 Welcome Home Grant Is Closed The 2026 Welcome Home Grant through FHLB Cincinnati is now closed and out of funds for new reservations . If your lender did not reserve the money before the program closed, you should not build your home purchase plan around receiving this grant for 2026. The hard truth: this grant was popular, limited, and first-come, first-served. Once the available funds were reserved, the program closed. Good News: Kentucky Buyers Still Have Options ...
If you are trying to figure out whether you earn too much to use a Kentucky Housing Corporation (KHC) loan, this page has the current numbers. Below are KHC's income limits by county, the maximum purchase price, the down payment assistance amounts, and the credit and debt-to-income rules that go with them — updated for 2026. The short answer KHC uses two different income-limit charts . Under the Secondary Market programs, most Kentucky counties allow up to $147,350 in qualifying income, rising to $195,650 in the Northern Kentucky counties. Under the lower Mortgage Revenue Bond (MRB) programs, most counties cap household income near $101,040 for a 1–2 person household and $117,880 for 3 or more. The maximum purchase price for either is $566,354 . $566,354 Max purchase price $12,500 Max down payment help 620 Min score (FHA/VA/RHS) 660 Min score (conventional) What Kentucky Housing Corporation Is — and Why the Income Limit Matters ...
