Showing posts with label Current Mortgage Rates in KY. Show all posts
Showing posts with label Current Mortgage Rates in KY. Show all posts

Key ways to get your best rate possible on your Kentucky Home loan


Kentucky Mortgage Rates

 Key ways to get your best rate possible on your Kentucky Home loan
Kentucky Mortgage Rates FHA, VA, USDA and KHC

Historically speaking, current mortgage rates are pretty average.

But considering all the other factors involved in our post-pandemic housing market, many people are struggling to afford a home.

 Here are the top ways you can get your best mortgage rate, even in a tough market:

  • Improve your credit score by paying down your debt and making all payments on time
  • Consider all your loan options, including your term length and fixed rate vs. adjustable-rate mortgages
  • Shop around for a lender and compare rates and terms

These key factors can mean the difference in paying thousands of dollars extra over the life of your loan.

It all depends on your unique situation.

Best loan options for borrowers in today’s market

  • Conventional purchase — best for borrowers with a high credit score
  • FHA loan — best for first-time borrowers with more flexible credit requirements
  • VA loan — potential for zero down for active-duty military personnel, veterans, and eligible surviving spouses
  • USDA loan — potential for zero down for for borrowers in rural areas who have moderate to low incomes
  • Bank statement loan — for self-employed individuals
  • KHC Loan --Down payment Assistance Grant for Zero Down Home Loans

 Ask your lender about 2-1 buydowns and adjustable-rate mortgages for methods to get a lower initial rate.

 How much home can you afford?

Let’s demystify the mortgage process.

Here are three common models lenders use to calculate how much of your income should go toward your monthly mortgage payment:

  • 28/36 rule: Your max monthly mortgage payment can’t exceed 28% of your gross monthly income, and your mortgage plus other monthly debts cannot exceed 36%
While this is a good starting point, this standard is nearly impossible to hit in many housing markets. Most borrowers today have "debt-to-income ratios" closer to 40-50% of their gross income.

Beyond your debts, lenders will evaluate your income, employment history, and credit score.

That's how to get the lowest mortgage rate possible for your borrower scenario.

What about getting the lowest monthly mortgage payment possible?

  • Boost your credit score
  • Make a larger down payment
  • Choose a more affordable home
  • Shop around for the best mortgage rate

Discounted Mortgage Rate 6% 30 year fixed rate loan. ***

 Exciting News! KHC is thrilled to reintroduce its MRB program, now featuring an interest rate of 6%!
BONUS!!! Add $10,000 in down payment assistance to this amazing program for a power move!
Eligibility requirements for the programs do apply, so reach out to us today for more information. Call or Message us now and seize the moment!

***Subject to Credit Qualifying Criteria and subject to change.

(1) The above rate quote has the following assumptions: $200,000 purchase; $194,000 loan amount; 0% down payment; 620 FICO credit score; property is SFR; borrower has sufficient income and assets to qualify; Tax and insurance impounds required; Estimated closing costs affecting the 6.375% APR include all standard fees. Monthly payment without taxes and insurance is $1,481.00. Rate and Annual Percentage Rate shown as of 02/01/2024, subject to change.

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708


Kentucky Mortgage Rates and Home Loan Options

Kentucky Mortgage Rates and Home Loan Options

Kentucky is known for its native bluegrass pastures, thoroughbred horses, and bluegrass music. It's also estimated that one-third of all bourbon produced comes from the State of Kentucky. Its two largest metropolitan areas are the cities of Louisville and Lexington, the former being the home of the world's most famous horse race, the Kentucky Derby.

For those who don't fancy themselves bourbon fans or sport enthusiasts there are still many options for lively entertainment in Kentucky. And just as many options when it comes to settling down, owning a home, and finding a loan with a great mortgage rate.

The more you know, the better equipped you will be to understand the qualifying requirements from some of the lenders in Kentucky. Most require financial documentation, while others have a more relaxed underwriting process.

It helps to be educated when shopping for your new home loan, and the best place to find out more about current mortgage rates and loan options in Kentucky is right here at

Mortgage Interest Rates on Kentucky FHA Loans

The FHA insured loan program provides many borrowers with competitive mortgage interest rates and an excellent loan option with which to purchase a home. Those who don't have a bundle to spend on down payments can use an FHA insured loan through a local lending partner to obtain financing up to 96.5 percent of the purchase price of the home with loan amounts up to $417,000.

To achieve even lower mortgage rates, those who can manage a larger down payment can get a conventional loan through traditional Kentucky lenders. These loans offer the lowest possible interest rates to both existing and new homeowners.

Jumbo Loan Options in Kentucky

If you need a loan that is larger than the conforming loan limit, chances are you'll be getting a jumbo loan. These loans are offered through most local and statewide lenders and those with good credit and income levels large enough to qualify can obtain a jumbo loan at market mortgage rates or just slightly above. They frequently carry higher mortgage interest rates due to the increase risk associated with the larger loan amount.

Assistance with Down Payment, Closing Costs, and KY Mortgage Rates

Government agencies, like the Kentucky Housing Corporation, can provide education materials and counseling for those wishing to own a home in the state of Kentucky. These agencies also offer loan programs through its lender partners in which buyers can tap into one of the following:

Down payment assistance of $6,000 over 10 years at 1% or 5% depending on your income. 

• VA Loan -
guaranteed by the Veterans Administration for qualified military veterans. Offers no down payment if the property appraises for the sale price or greater, has flexible underwriting is flexible, and no monthly mortgage insurance payments and no minimum credit score requirements. Lenders however will create overlays to require a 620 credit score for most VA mortgage loan approvals nowadays with Automated Underwriting through DO/DU

Conventional loans – with as little as three percent down payment (lower than FHA requirements) yet still covered by and approved mortgage insurance company. This loan is for those with a credit score of 680 or better, offering quick turnaround time and no up-front mortgage insurance payments.

Kentucky home loan programs to buy your first house in Kentucky


4 Things Required for a KY Mortgage Loan Approval

Understanding Mortgage mortgage underwriting guidelines
Now that you have found your dream house, you are going to need to apply for a Louisville Mortgage mortgage loan. Your Realtor will either recommend a banking institution or you may already have one in mind.

You will be dealing with a loan officer who will be compiling all the data on you to see if you qualify for a loan to pay for this house. All lending institutions have different Underwriting Guidelines set in place when reviewing a borrower's financial history to determine the likelihood of receiving on-time payments. The primary items reviewed are the following 5 areas below:

1. Income

2. Debt

3. Credit History

4. Savings

5. Debt vs Income Ratio

Income is one of the most important variables a lender will examine because it is used to repay the loan. Income is reviewed for the type of work, length of employment, educational training required, and opportunity for advancement. An underwriter will look at the source of income and the likelihood of its continuance to arrive at a gross monthly figure.

Salary and Hourly Wages - Calculated on a gross monthly basis, prior to income tax deductions.

Part-time and Second Job Income - Not usually considered unless it is in place for 12 to 24 straight months. Lenders view part-time income as a strong compensating factor.

Commission, Bonus and Overtime Income - Can only be used if received for two previous years. Further, an employer must verify that it is likely to continue. A 24-month average figure is used.

Retirement and Social Security Income - Must continue for at least three years into the future to be considered. If it is tax free, it can be grossed up to an equivalent gross monthly figure. Multiply the net amount by 1.20%.

Alimony and Child Support Income - Must be received for the 12 previous months and continue for the next 36 months. Lenders will require a divorce decree and a court printout to verify on-time payments.

Notes Receivable, Interest, Dividend and Trust Income - Proof of receiving funds for 12 previous months is required. Documentation showing income due for 3 more years is also necessary.Rental Income - Cannot come from a Primary Residence roommate. The only acceptable source is from an investment property. A lender will use 75% of the monthly rent and subtract ownership expenses. The Schedule E of a tax return is used to verify the figures. If a home rented recently, a copy of a current month-to-month lease is acceptable.

Automobile Allowance and Expense Account Reimbursements - Verified with 2 years tax returns and reduced by actual expenses listed on the income tax return Schedule C.

Education Expense Reimbursements - Not considered income. Only viewed as slight compensating factor.

Self Employment Income - Lenders are very careful in reviewing self-employed borrowers. Two years minimum ownership is necessary because two years is considered a representative sample. Lenders use a 2-year average monthly income figure from the Adjusted Gross Income on the tax returns. A lender may also add back additional income for depreciation and one-time capital expenses. Self-employed borrowers often have difficulty qualifying for a mortgage due to large expense write offs. A good solution to this challenge used to be the No Income Verification Loan, but there are very few of these available any more given the tightened lending standards in the current economy. NIV loan programs can be studied in the Mortgage Program section of the library.

An applicant's liabilities are reviewed for cash flow. Lenders need to make sure there is enough income for the proposed mortgage payment, after other revolving and installment debts are paid.

All loans, leases, and credit cards are factored into the debt calculation. Utilities, insurance, food, clothing, schooling, etc. are not.

If a loan has less than 10 months remaining, a lender will usually disregard it.

The minimum monthly payment listed on a credit card bill is the figure used, not the payment made.

An applicant who co-borrowed for a friend or relative is accountable for the payment. If the applicant can show 12 months of on-time cancelled checks from the co-borrower, the debt will not count.

Loans can be paid off to qualify for a mortgage, but credit cards sometimes cannot (varies by lender). The reasoning is that if the credit card is paid off, the credit line still exists and the borrower can run up debt after the loan is closed.

A borrower with fewer liabilities is thought to demonstrate superior cash management skills.

Most lenders require a residential merged credit report (RMCR) from the 3 main credit bureaus: Trans Union, Equifax, and Experian. They will order one report which is a blending of all three credit bureaus and is easier to read than the individual reports. This "blended" credit report also searches public records for liens, judgments, bankruptcies and foreclosures. See our credit report index.

Credit report in hand, an underwriter studies the applicant's credit to determine the likelihood of receiving an on-time mortgage payment. Many studies have shown that past performance is a reflection of future expectations. Hence, most lenders now use a national credit scoring system, typically the FICO score, to evaluate credit risk. If you're worried about credit scoring see our articles on it.

The mortgage lending process, once very forgiving, has tightened lending standards considerably. A person with excellent credit, good stability, and sufficient documentable income to make the payments comfortably will usually qualify for an "A" paper loan. "A Paper", or conforming loans, make up the majority of loans in the U.S. and are loans that must conform to the guidelines set by Fannie Mae or Freddie Mac in order to be saleable by the lender. Such loans must meet established and strict requirements regarding maximum loan amount, down payment amount, borrower income and credit requirements and suitable properties. Loans that do not meet the credit and/or income requirements of conforming "A-paper" loans are known as non-conforming loans and are often referred to as "B", "C" and "D" paper loans depending on the borrower’s credit history and financial capacity.

Here are some rules of thumb most lenders follow:

12 plus months positive credit will usually equal an A paperloan program, depending on the overall credit. FHA loans usually follow this guideline more often than conventional loans.

Unpaid collections, judgments and charge offs must be paid prior to closing an A paper loan. The only exception is if the debt was due to the death of a primary wage earner, or the bill was a medical expense.

If a borrower has negotiated an acceptable payment plan, and has made on time payments for 6 to 12 months, a lender may not require a debt to be paid off prior to closing.

Credit items usually are reported for 7 years. Bankruptcies expire after 10 years.

Foreclosure - 5 years from the completion date. From the fifth to seventh year following the foreclosure completion date, the purchase of a principal residence is permitted with a minimum 10% down and 680 FICO score. The purchase of a second or investment property is not permitted for 7 years. Limited cash out refinances are permitted for all occupancy types.

Pre-foreclosure (Short Sale) - 2 years from the completion date (no exceptions or extenuating circumstances).

Deed-in-Lieu of Foreclosure - 4 year period from the date the deed-in-lieu is executed. From the fifth to the seventh year following the execution date the borrower may purchase a property secured by a principal residence, second home or investment property with the greater of 10 percent minimum down payment or the minimum down payment required for the transaction. Limited cash out and cash out refinance transactions secured by a principal residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.

Chapter 7 Bankruptcy - A borrower is eligible for an A paper loan program 4 years after discharge or dismissal, provided they have reestablished credit and have maintained perfect credit after the bankruptcy.

Chapter 13 Bankruptcy - 2 years from the discharge date or 4 years from the dismissal date.

Multiple Bankruptcies- 5 years from the most recent dismissal or discharge date for borrowers with more than one filing in the past 7 years.

The good credit of a co-borrower does not offset the bad credit of a borrower.

Credit scores usually range from 400 to 800. Changes to lending standards are occurring on a daily basis as a result of tightening lending standards, and can vary from lender-to-lender-- so this information should be considered simply a guideline. For conforming loans, most lenders will lend down to a FICO of 620, with additional rate hits for the lower-end credit scores and loan-to-values. When you are borrowing more than 80%, they typically will not lend if you have a FICO below 680. The FHA/VA program just changed their minimum required FICO to 620, unless you are qualifying a borrower with non-traditional credit. The few non-conforming loan programs that are still available typically require 30% down payment with a minimum FICO of 700 for self-employed and 650 for W-2 employees, and the loan-to-value will change with the loan amount.

Lenders evaluate savings for three reasons.

The more money a borrower has after closing, the greater the probability of on-time payments.

Most loan programs require a minimum borrower contribution.

Lenders want to know that people have invested their own into the house, making it less likely that they will walk away from their life's savings. They analyze savings documents to insure the applicant did not borrow the funds or receive a gift.

Lenders look at the following types of accounts and assets for down payment funds:

Checking and Savings - 90 days seasoning in a bank account is required for these funds.Gifts and Grants - After a borrower's minimum contribution, a gifts or grant is permitted.

Sale of Assets - Personal property can be sold for the required contribution. The property should be appraised and a bill of sale is required. Also, a copy of the received check and a deposit slip are needed.

Secured Loans - A loan secured by property is also an acceptable source of closing funds.

IRA, 401K, Keogh & SEP - Any amount that can be accessed is an acceptable source of funds.
Sweat Equity and Cash On Hand - Generally not acceptable. FHA programs allow it in special circumstances.
Sale Of Previous Home - Must close prior to new home for the funds to be used. A lender will ask for a listing contract, sales contract, or HUD 1 closing statement.

The percentage of one's debt to income is one of the most important factors when underwriting a loan. Lenders have determined that a house payment should not exceed approximately 30% of Gross Monthly Income. Gross Monthly Income is income before taxes are taken out. Furthermore, a house payment plus minimum monthly revolving and installment debt should be less than 40% of Gross Monthly Income (this figure varies from 35%-41% contingent on the source of financing).


An applicant has $4,500 gross monthly income. The maximum mortgage payment is:

$4500 X .30 = $1350

Their total debts come to:

$500 Car

$20 Visa

$30 Sears

$75 Master Card


$625 per month.

Remember, their total debts (mortgage plus other debts) must be less than or equal to 40% of their gross monthly income.

$2,800 X .40 = $1800

$1800 is the maximum debt the borrower can have, debts and mortgage payments combined. Can the borrower keep all their debts and have the maximum mortgage payment allowed? NO!

In this case, the borrower, since they have high debts, must adjust the maximum mortgage payment downward, because:

$625 debts

$1350 mortgage

$1975 - which is more than the $1800 (40% of gross debt) we calculated above.

The maximum mortgage payment is therefore:

$1800 - $625 (monthly debt) = $1175.

Some restrictions apply. Ask for details. Loan decision is subject to satisfactory appraisal and title review and no change in financial condition. This is not an offer for extension of credit or a commitment to lend. Equal Housing Opportunity.
This communication is provided to you for informational purposes only and should not be relied upon by you.

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

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

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

What to look for while shopping​ for a Kentucky Mortgage Rate.​

 ​Kentucky ​ Mortgage advice – What to look for while shopping​ for a Kentucky Mortgage Rate.​

1. Kentucky Mortgage Rates change daily

It used to be that rates changed once a week or so. In fact when I started in this business I used to receive a set of rates as a printed sheet that would usually be updated once every 2 weeks. Things have changed, especially since the latest financial crisis and during the current recovery. My biggest piece of advice if you are comparing rates is to get each broker, lender and bank to quote you their best rate on the same day.

2. Make sure the lock days being quoted are the same from each lender

Some sneaky mortgage brokers and banks will quote you the rate for a mortgage with an unrealistically short lock date. Banks usually give better rates if you are looking to act on the mortgage quickly because they can be more sure what they are committing to. On purchase transactions a 30 day lock is probably the shortest period you should have quoted and on a refinance 45 days is preferable. Give me a call at the number below if you’d like me to explain this better.

3. Compare apples to apples

Most people know that when you compare one rate to another you need to know what the APR and not the headline rate is. The difference between the headline rate and the APR is that the APR rolls into your rate most of the additional fees that come with the mortgage. The APR will be equal to or higher than the headline rate and a more realistic indicator of what you are actually paying for your mortgage. However, not all brokers disclose the same fees as one another so sometimes APR isn’t the perfect apples to apples comparison either. Make sure before you go ahead with a particular individual you completely understand all the rates you will be charged.

I’m hoping this information is helpful. I believe that the best service I can do for my customers is to be 100% transparent about the process and educate as much as possible about what they are getting into. If you would like to work with me just say the word. I would love to help you find a great product or perhaps just educate you a little more.

Give me a call me at the number below or go to our website  get a custom rate quote.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119


What effects your Kentucky Mortgage Rate for FHA, VA, USDA and Conventional Mortgage Loans?

 What Affects Your Interest Rate for a home loan in Kentucky?

There are really four key factors that will influence rates on your mortgage loan in Kentucky:

The market, your financial situation, the type of Kentucky Mortgage loan (FHA, VA, USDA Conventional), and the loan structure.

The Market for Kentucky Mortgage Rates

Mortgage Backed Security prices directly impact interest rates. Mortgage backed securities or mortgage

bonds are a market just like the stock market. So, when economic news affects these mortgage bond

 prices, home loan rates are directly influenced. One of the biggest influencers of this market is

inflation. Inflation or even expectations of inflation will negatively impact mortgage bond prices and

ultimately increase rates on your home loan in Kentucky

Financial Situation For Your Kentucky Mortgage Rate

Income – 

Your income gives you the ability to make

your monthly mortgage payments. Generally,

lenders require applicants to have a two-year stable

employment history. Applicants who have been at

their job for a shorter period of time should be in the

same field.

Savings – 

Your savings enable you to pay for the

upfront costs associated with purchasing a home.

These include the down payment, closing costs and

cash reserves.

Debts – 

The amount of debt you have will impact your

debt to income ratio. Debt payments consist of car

payments, student loans, alimony, required payments

on installment loans and required payments on credit

cards. They do not include rent, utility bills, mortgage

payments for loans being paid off, or payments on

credit card balances that you pay in full at the end of

the month. Lenders look at debt to income ratios to

determine how much home you can buy.

Credit and Credit Score

– If you want to be eligible for

the best mortgage rates, you will need to maintain a

credit score of 760 and above middle score of the 

Mortgage Fico Scores lenders pull through Equifax, Experian and Transunion

Not only will this excellent

score motivate the lender to lower your rates to get

you as a customer, you will have more choices about

which mortgages are available to you. Your overall

payment history on the debts you have can also impact

your ability to qualify for certain types of loans, which

can affect your interest rate.

Type of Kentucky Mortgage  Loan & Loan Structure

Loan Type 

The type of loan will impact the rate

you can expect. There are many types of loans Kentucky Mortgage Loans.

Conventional, FHA, VA, USDA, and Jumbo loans

can all have different rates.


The best mortgage rates are

typically offered if you are purchasing a property

that is intended to be occupied as your primary

residence. Rates for second homes and investment

properties are typically higher.


The duration of the loan can affect

mortgage rates. A shorter loan period will usually

equate to a lower mortgage rate and a longer loan

will typically have higher rates.

Down Payment – 

A larger down payment can

impact interest rates. Putting more down will

decrease the risk for a lender and can improve

your interest rate. If you put less than twenty

percent down, certain types of loans require

mortgage insurance and this can also impact the

interest rates available.

Discount Points – 

In order to get a lower rate

some clients choose to pay discount points.

Basically, discount points are percentages of the

loan amount paid in cash at closing in order to

lower a rate.

Lock Term – 

The length of time you need to lock

in your rate can impact your rate. Typically, longer

term rates are more expensive.

What effects your Kentucky Mortgage Rate for FHA, VA, USDA and Conventional Mortgage Loans?

Kentucky FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119

Kentucky Mortgage Rates

Due to Volatility in the current mortgage market, mortgage rates are currently not being posted.

Please call for a mortgage rate quote. 

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119



Louisville Ky Mortgage Rates

Louisville Ky Mortgage Rates FHA, VA, KHC, USDAKentucky Housing Loans Jefferson County KentuckyKentucky FHA loansKentucky FHA Mortgage LendersFirst Time Home Buyer Louisvill eKy100_percent_financing Louisville Kentucky
Louisville Ky Mortgage Rates, a set on Flickr.
Louisville Ky Mortgage Rates, by Louisville Ky Mortgage Rates FHA VA USDA KHC

Louisville KentuckyHome Mortgage Loans: Mortgage Refinance Tips

Louisville Kentucky Home Mortgage Loans: Mortgage Refinance Tips

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

Current Louisville Kentucky Mortgage Rates for today

I am available from 9 AM to 9 PM daily. I make every effort to take all calls and respond to email promptly.

Current Mortgage Rates today in KY: FHA/VA,KHC,USDA,Conventional

Current Louisville Kentucky Mortgage Rates for today

Mortgage Product Mortgage Rates (APR)

15 Year Fixed Conventional 3.625% 4.135% apr

30 Year Fixed Conventional 4.375% 4.834% apr

30 Year Fixed FHA 4.375% 5.275% apr

30 Year Fixed USDA 4.625% 5.288% apr

30 year Fixed VA 4.375% 5.589% apr

30 year Fixed KHC 4.500% 5.470% apr

Current Louisville Kentucky Mortgage Rates today may contain points

Today's Louisville Ky Mortgage Current Rates are subject to qualifying criteria

Subject to credit approval

Rates are subject to change without notice.

Joel Lobb Licesned Mortgage Originator KY (NMLS# 57916)

Key Financial Mortgage (NMLS# 1800)

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