Showing posts with label Attn Kentucky First Time Home Buyers-- Zero Down Home Loans KY | Louisville |. Show all posts
Showing posts with label Attn Kentucky First Time Home Buyers-- Zero Down Home Loans KY | Louisville |. Show all posts

Louisville Kentucky First Time Home Buyer Programs

Kentucky First Time Home Buyer Programs

Qualifying for a Kentucky Mortgage Loan

If you are a potential Louisville Kentucky First Time home buyer first time home buyer in Louisville Kentucky, we welcome you! It is our utmost desire to assist you in reaching the goal of buying your first home. 

We've gathered the most helpful, beneficial resources together on this page to make things as easy as possible for you.

We have access to all the Louisville Kentucky First Time home Buyers programs including, FHA, VA, KHC, and USDA, Rural Housing Zero Down home loans--

What is available for first time home buyer financial programs in Kentucky?

First-Time Homebuyers Louisville Kentucky Mortgage Programs

The first place to start in that search is the Kentucky Housing Corporation. They provide generous assistance to first time home buyers in the form of grants to help with the down payment as well as closing costs.

The Kentucky Housing Corporation has a down payment assistance program for eligible homebuyers who meet specific moderate-income limits to help with down payment and/or closing costs. Check and see what is available and if you qualify....

There are other Louisville, Kentucky first time homeownership programs available through the Kentucky Housing Corporation

In addition to the state programs, there are federal funds and grants available to residents and first time home buyers in Kentucky through the Homes and Communities program of the US Department of Housing and Urban Development

On their website you'll find complete grant information, application forms, description of available funds, as well as many other helpful tools.

Every potential first time home buyer should investigate what they have to offer. 

You can visit the website by clicking on US Dept. of Housing and Urban Development. 

Finally, there is a website that lists all grant programs available through the federal government,

Louisville, Kentucky First time home buyers should plan to spend the required time investigating to determine how many specific grants they may qualify for.

You can visit the website by clicking here.

Kentucky First Time Home Buyer Grants and Loan Programs

Your household income and expenses

Lenders look at your income in ways other than the total amount; how you earn it is also important. For example, income from bonuses, commissions and overtime can vary from year to year. If these sources make up a large percentage of your income, your lender will want to know how reliable they are.

Your lender will also consider the relationship between your income and expenses. Generally, your fixed housing expenses (mortgage payment, insurance, and property taxes, but not repairs or maintenance) should not be more than 28 percent of your gross monthly income, although this is not an absolute rule. Your lender will also consider other long-term debts, such as car loans or college loans. It is a good idea to bring the following when you meet with your lender:


Employment, salary and bonuses, and any other source of income for the past two years (bring your most recent pay stub, previous year’s W-2 forms, and tax returns if possible)
The most recent account statement showing the amount of any dividend and interest income you received during the past two years 

Official documentation to support the amount of any other regular income you may receive (alimony, child support, etc.) Job stability is a factor that a mortgage lender will look for, and two years at your current job helps, but this also is not an absolute requirement. If you change jobs but stay in the same line of work, you should not have a problem — especially if the job change is an advancement or increase in income.

Credit score

Your credit score also helps to predict how likely you are to repay the mortgage debt. Credit scores will determine if you qualify for the loan, what your rate is, and mortgage insurance payments each month. Typical fico scores wanted for an automated approval run around 580 for an FHA loan and VA loan, 620 for a USDA, 620 for a KHC Loan with Down Payment Assistance, and 620 for an AU approval for Fannie Mae Loan.

Personal assets

Current balances and recent statements for any bank accounts, including checking and savings
Most recent account statement showing current market value of any investments you may have, such as stocks, bonds or certificates of deposit
Documentation showing interest in retirement funds
Face amount and cash value of life insurance policies
Value of significant pieces of personal property, including automobiles
Debt Information
The balances and account numbers of your current loans and debts, including car loans, credit card balances and any other loans you may have 


The lender does the best possible job of ensuring that a borrower qualifies for a loan. The final decision, however, rests with the lender's underwriter, who measures the total risk that the specific investor, who backs up the loan, is taking. Each investor (or investment company) has its own underwriting guidelines (often using statistical models), so while the underwriters evaluate many of the same factors as the lenders, they may look more closely at some areas than others, depending on the guidelines.

 For example, while the lender may have pre-approved you before you chose a home, by the time you get to underwriting, you will have chosen the property you want to buy, and the underwriter will review the property details closely. 

However, most of the information used is the same as that used by the lender, but it may be evaluated differently. The underwriter will evaluate the borrower's ability to pay (income), willingness to pay (credit history), and the collateral (property). As underwriters analyze each of these risks (although this is not a complete list), here are some possible guidelines they may use:


Is the income sufficient to repay the loan? Ratio guidelines of 31 percent payment-to-income and 43 percent total debt-to-income are standard, but some programs allow for higher ratios. This is the typical manual underwrite for a score that does not fit the current Automated Underwriting Engines used for Fannie Mae (DO), FHA, VA, USDA and Rural Housing (GUS) 

Is the income stable from month to month and year to year? 

Has the borrower been on his/her current job and in the same industry for a sufficient amount of time? 

A minimum of two years is the standard guideline, but exceptions can be made.

Can the income be verified? 

2 years taxes, last 30 days of paystubs 


Does the borrower have a good credit score-Typically 760 or higher will yield the best rates and lowest mortgage insurance for a conventional loan? FHA mortgage insurance and VA mortgage insurance is the same no matter what your credit score is. 

Does the borrower have late payments, collections, or a bankruptcy? 

If so, is there an explanation that can be provided for the late payments/collections/bankruptcy? 
FHA, VA requires 2 years removed from bankruptcy and USDA requires 3 years removed from bankruptcy. 
Fannie Mae requires 4-7 years after a bankruptcy. 
Does the borrower have excessive monthly debts to repay? Typical Debt to income ratios for a no money down loan are limited to 45% of your total gross monthly income for a USDA or KHC loan.
Is the borrower maxed out on credit cards? 

Pay down your credit card balances to less than 25% of your credit limits before you apply for a mortgage loan.

The down payment

A down payment is a percentage of your home's value. The type of mortgage you choose determines the down payment you will need. It can range from zero to 20 percent, or more if you wish.
A number of loans are available that do not require high down payments, particularly for first-time home buyers. 

FHA loans, for example, may require less than 5 percent down, and veterans or those on active duty in the military can obtain loans with no down payment at all. 

USDA loans are offered to rural home buyers with a no down payment option just like VA loans.

In addition to down payment assistance offered through Kentucky Housing where you don't have to put a down payment down with income caps for both KHC and USDA loans.

First-Time Home Buyer Louisville Kentucky Mortgage Programs

American Mortgage Solutions, Inc.

10602 Timberwood Circle Suite 3

Louisville, KY 40223

Company ID #1364 | MB73346

Text/call 502-905-3708

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
, NMLS ID# 57916, ( I lend in the following states: Kentucky

Louisville Metro Down Payment Assistance Program


Down Payment Assistance Program

Applications for this program will reopen on Monday, July 18.

The Louisville Metro Down Payment Assistance Program provides low- to moderate-income homebuyers with down payment and closing cost assistance for purchasing a home in the Louisville Metro area. Funds can be applied to the purchase of an existing or newly constructed home and are NOT limited to first-time homebuyers.

Down Payment Assistance is in the form of a partially forgivable loan with 0% interest. Homebuyers must occupy the purchased home as their primary residence for a period of 5 – 15 years, depending upon the amount of assistance received. By the end of that specified period, 50% of the loan shall be forgiven. The remaining balance is not due until the sale of that home.   The maximum amount of assistance per homebuyer will be no more than 20% of the purchase price, but also based on the need the individual buyer. Section 8 Homeownership clients are encouraged to apply.  

Goals of the Down Payment Assistance Program
  • Encourage homeownership, throughout Louisville Metro, which is economical to low-moderate income consumers in order to assist in preventing future foreclosures.
  • Encourage mixed-income neighborhoods and the de-concentration of poverty.
  • Encourage homeownership in Metro’s Neighborhood Revitalization Strategy Area – Russell.
  • Assist homebuyers in becoming informed consumers in order to successfully navigate real estate transactions and understand the responsibility of homeownership.
  • Encourage reinvestment in Louisville Metro’s vacant and abandoned properties.
  • Household income at or below 80% of the area median income.
Persons in Household123456
80% AMI $47,450  $54,200  $61,000  $67,750  $73,200  $78,600 


  • Homebuyer(s) already pre-approved for a mortgage from a local financial institution.
  • Homebuyer(s) credit - no unpaid collections, past due balances or un-discharged bankruptcies. (Exception: Medical collections up to $10,000.00.)
  • Homebuyer(s) has at least $1,500 in savings.
  • Homes eligible for assistance must meet the Home Ownership Value Limits below.

Existing Homes

 1-unit  2-unit (duplex) 3-unit (triplex) 4-unit (fourplex)


New Homes

 1-unit  2-unit (duplex) 3-unit (triplex) 4-unit (fourplex)
How to Apply
  1. Complete homebuyer counseling (6-hr minimum) from a HUD-approved counseling agency. If applying with co-applicant, both must complete. Married couples must apply as co-applicants.
  2. Apply to the Down Payment Assistance Program by clicking the green button below. Please allow 30 days for Metro review and verification.
  3. Homebuyer(s) receives letter of eligibility, stating entrance or denial into Homebuyer Assistance Program.
  4. Homebuyer(s) engages Realtor to assist in home search.
  5. Upon an accepted sales contract, homebuyer(s) submits Home Purchase Packet, executed sales contract, and primary loan documents to Metro.
  6. Metro staff underwrites the loan and presents to the Case Review Board.
  7. Homebuyer(s) receives conditional commitment letter from Metro, stating the amount of assistance available to purchase that home.
  8. Metro Office of Housing inspector coordinates with Realtor. Home must receive a passing inspection in order to receive Metro assistance.
  9. Lender, Realtor, and Metro coordinate with the homebuyer to close on the home.
  10. To apply now, click here
 LOUISVILLE, Ky. Low to moderate-income homebuyers in the Louisville Metro who are seeking assistance with down payments and closing costs can now apply for the city’s Down Payment Assistance Program.

Applications for the program reopened on July 18 for the purchase of an existing or newly constructed home, according to Louisville Metro Government.

A release states program funds are not limited to first-time homebuyers.

The funds will be used as a partially-forgivable loan with 0% interest, where homeowners will need to occupy their purchased home for a period of five to 15 years.

Following that period, 50% of the loan will be forgiven, and the rest of the balance will not be due until the sale of the home.

Officials said the Down Payment Assistance Program encourages home ownership in the Louisville Metro and assisting potential homebuyers in making real estate transactions to understand the responsibilities of homeownership.

The program is available to residents with a household income at or below 80% of the area median income, homebuyers who are already pre-approved for a mortgage and have no unpaid collections or past due balances on their credit.

For more information and how to apply, click or tap here.

Applicant Resources 

DPA Brochure Program Handbook

100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: Louisville Kentucky Mortgage Lender for FHA, VA, ...

100% Financing Zero Down Payment Kentucky Mortgage Home Loans for Kentucky First time Home Buyers: Louisville Kentucky Mortgage Lender for FHA, VA, ...: Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Kentucky First-time Home Buyer Programs : ...

Kentucky First-time Home Buyer Programs

Conventional Mortgage Loan in Kentucky.

620 credit score or higher needed for this loan program. 4 years removed from bankruptcy minimum sometime longer. Private mortgage insurance required for over 80% loan to value on a refinance or down payments less than 20%. Tighter debt to income requirements with max back-end-ratio usually not over 45% with less than 20% down payment. Easier on properties to qualify if they have deferred maintenance or need some fixing up to pass Government standards like FHA, VA, USDA loans.
Down payment requirements are as little as 3% down payment. Better rates and lower mortgage insurance with a larger down payment and pmi is not for life of loan.
This is for stronger borrowers with good credit (above 680 or 720) and at least 3-5% down payment with no foreclosures or bankruptcies in he last 4-7 years. Can go higher on the loan amount too versus FHA. Max loan in Kentucky for 2020 for conventional loans is $510,000.
Home Possible Advantage Product Highlights:

Up to 97% LTV for Purchase and for Rate Term Refinances of 1-unit properties
CLTV max 97% for purchase unless the second mortgage meets FHLMC Affordable Seconds Guidelines for a max of 105%
Minimum Credit Score of 620 Required
Accept/Eligible LP AUS Findings
Max DTI allowed per AUS Findings
Lower Mortgage Insurance coverage requirements for LTV's of 90.001% - 97% (25%) compared to standard Fannie product (30-35%)
Borrowers may not own any other real estate at closing
1 unit principal residences, including eligible condos and PUDs, 2-4 unit principal residences
Homeownership Education:
At least one Borrower must participate in a homeownership education program before the Note Date in each of the following instances:
For purchase transaction Home Possible® Mortgages when all Borrowers are First-Time Homebuyers
Homeownership education must not be provided by an interested party to the transaction, the originating lender or by the Seller.
Homeownership education programs may use different formats and require different lengths of time to complete. The following are acceptable:
Programs developed by HUD-approved counseling agencies, Housing Finance Agencies (HFAs) or Community Development Financial Institutions (CDFIs)
Programs developed by mortgage insurance companies
Programs that meet the standards of the National Industry Standards for Homeownership Education and Counseling (
Income Eligibility:
Borrowers must meet income limits for program eligibility. Income limits will be checked by LP.
Link to check income and property eligibility:
Minimum Borrower Contribution:
1 unit - 0%
2-4 units - 3%
Acceptable Sources for Down Payment:
Gift funds and grants. Affordable Seconds are allowed.
Find additional information regarding Affordable Seconds in the Freddie Mac Seller guide section 4204.2
Non-Occupant Borrowers:
Not permitted. All borrowers must occupy the subject property as their primary residence.
Mortgage Insurance:
Monthly, borrower-paid or single premium LPMI are allowed. At this time, borrower paid singles, split premiums, lender paid monthly premiums and lowest cost/custom MI are not allowed.
25% MI coverage for LTVs 90.001 - 97%
Standard MI coverage for LTVs of 90% or less. (Reduced MI not permitted)
Other Income:
Border income (relatives or non-relatives): Up to 30% of qualifying income, must document at least 9 of the last 12 months of payment (will be averaged over 12 months and must document proof of shared residence for the 12 month period.
Accessory Unit - Rental income from an accessory unit may be used in qualifying income per rental income guidelines
2-Unit Rental income from the other units of the subject property may be used per rental income guidelines.
Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA on Google
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Mortgage Programs available to Louisville Kentucky Home buyers

Mortgage Programs available to Louisville Kentucky Home buyers. USDA, FH...Mortgage Programs available to Louisville Kentucky Home buyers. USDA, joel lobbPinned byLouisville Kentucky Mortgage FHA, VA, KHC, USDA, Fannie MaeOntoKentucky FHA, VA, USDA, KHC, Jumbo and Fannie Mae mortgage loans in Ky.

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only.  The posted information does not guarantee approval, nor does it comprise full underwriting guidelines.  This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of  my employer. Not all products or services mentioned on this site may fit all people.
, NMLS ID# 57916, ( I lend in the following states: Kentucky

Current Guidelines for Louisville Kentucky Mortgage programs including FHA, VA, KHC, USDA, and Fannie Mae Home Loans in the State of Kentucky
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