Showing posts with label 580 FICO. Show all posts
Showing posts with label 580 FICO. Show all posts

Mortgage Options in Kentucky for Buyers with 580 Credit Scores

Can You Buy a Home with a Credit Score of 580?


Buying a home with a credit score of 580 can feel daunting, but FHA loans and state-specific programs in Kentucky offer viable pathways to homeownership. This note covers eligibility criteria, credit improvement strategies, income and debt-to-income (DTI) ratios, down payment requirements, and available assistance, with a focus on practical steps and resources.

FHA Loan Eligibility and Credit Score Requirements

FHA loans, backed by the Federal Housing Administration, are designed to assist buyers with lower credit scores, making them a popular choice for first-time homebuyers or those with financial challenges. According to recent guidelines, the minimum credit score for FHA loans is 500, but the terms vary based on the score:

  • Credit Score 500-579: Buyers can qualify with a 10% down payment. This higher down payment reflects the increased risk for lenders, but it remains accessible for those with limited credit history or past financial difficulties.
  • Credit Score 580 and Above: Buyers can qualify with a down payment as low as 3.5%, significantly reducing the upfront cost and making homeownership more achievable.


FHA Loan Credit Score Requirements

  • 500–579 Credit Score: Requires a 10% down payment
    (Example: $20,000 down on a $200,000 home)
  • 580+ Credit Score: Eligible for just a 3.5% down payment
    (Only $7,000 down on the same $200,000 home)

Note: Lenders may impose stricter "overlays"—so shop around for FHA-approved lenders willing to go below 580.




Mortgage Options in Kentucky for Buyers with 580 Credit Scores






 














Need Help Getting Approved for an FHA Loan in Kentucky?

As an experienced mortgage loan officer specializing in FHA loans for Kentucky first-time homebuyers, I’m here to guide you every step of the way.

Contact Me Today:

Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans

Website: www.mylouisvillekentuckymortgage.com
Address: 911 Barret Ave., Louisville, KY 40204

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

Equal Housing Lender

www.nmlsconsumeraccess.org

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.


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Kentucky VA Mortgage Qualifying Guidelines

 


NMLS ID. 57916, NMLS ID. 1364 EQUAL HOUSING LENDER
CALL/TEXT 502-905-3708
www.nmlsconsumeraccess.org
subject to credit and income qualifying criteria and can change without notice
Not a commitment to lend

 A GREAT BENEFIT

for Kentucky veterans of all branches of the military for a Kentucky VA Mortgage Loan.

  • Min 580 FICO (Refer /Eligible thru DU or LP)- Refer Eligible
  • 580 + Cash Out Refi's up to 100% (approved eligible)
  • No DTI cap - follow AUS findings
  • VA- REFER/ELIGIBLE - 50% max ratio
  • No VOR unless required by DU findings (unless VA Refer)
  • Seller can pay all closing costs & prepaids
  • IRRRLs - 580+ MINIMUM FICO (conforming loan amounts and High balance)
  • No Short Sale Seasoning Requirement on VA


Min 580 FICO (Refer /Eligible thru DU or LP)- Refer Eligible 580 + Cash Out Refi's up to 100% (approved eligible) No DTI cap - follow AUS findings VA- REFER/ELIGIBLE - 50% max ratio No VOR unless required by DU findings (unless VA Refer)


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