Kentucky FHA Mortgage Loans 2025 | FHA Lender Requirements for First-Time Buyers

Kentucky FHA Loan Requirements for 2025

To qualify for an FHA loan in Kentucky, you'll need to meet several requirements. Here's a detailed breakdown of what lenders will be looking for in 2025:

Credit Score Requirements

While the FHA itself doesn't set a minimum credit score, most Kentucky FHA lenders do. For 2025, you'll generally need a credit score of at least 580 to qualify for the 3.5% low down payment option. If your score is between 500 and 579, you may still be eligible, but you'll likely need to make a larger down payment of at least 10%.

It's important to note that different lenders may have varying credit score requirements, with some requiring scores of 620 or higher. Shopping around with multiple Kentucky FHA lenders can help you find one that works with your specific credit situation.

Down Payment Requirements

As mentioned, the minimum down payment for an FHA loan is 3.5% of the purchase price for borrowers with a credit score of 580 or higher. This down payment can come from several sources:

• Your personal savings
• A gift from a family member (with proper documentation)
• Down payment assistance programs available in Kentucky
• Funds from a retirement account (with restrictions)

Debt-to-Income (DTI) Ratio

Your DTI ratio is the percentage of your gross monthly income that goes towards paying your monthly debts. For FHA loans, your housing DTI (mortgage payment including principal, interest, taxes, insurance, and HOA fees) should ideally be no more than 31% of your income, and your total DTI (all debts) should be no more than 43%.

However, with a strong credit score and other compensating factors, you may be approved with a higher DTI, potentially up to 55% in some cases. Kentucky FHA lenders will evaluate your entire financial picture when making this determination.

Income and Employment Requirements

You'll need to demonstrate a steady employment history for the past two years. Your income must be verifiable through pay stubs, tax returns, and other documentation. Self-employed individuals will need to provide at least two years of tax returns to demonstrate consistent income.

Recent college graduates may be able to use their education to satisfy the employment history requirement if they can show their degree relates to their current employment.

Property Requirements

The home you're buying must be your primary residence - you cannot use an FHA loan for investment properties or vacation homes. The property also needs to meet the FHA's minimum property standards, which means it must be safe, sound, and secure. An FHA-approved appraiser will inspect the property to ensure it meets these standards.

Eligible property types in Kentucky include single-family homes, condominiums (in FHA-approved projects), townhomes, and multi-unit properties (up to 4 units) where you'll live in one of the units.

2025 FHA Loan Limits in Kentucky

For 2025, the FHA has set the following loan limits for all counties in Kentucky:

• Single-Family Home (1-unit): $524,225
• 2-Unit Property: $671,200
• 3-Unit Property: $811,275
• 4-Unit Property: $1,008,300

These limits apply to all 120 Kentucky counties, as there are no high-cost county exceptions in the state for 2025. This means whether you're buying in Jefferson County (Louisville), Fayette County (Lexington), or any rural Kentucky county, the same loan limits apply. It's important to note that these limits can change annually based on housing market conditions.

FHA Mortgage Insurance Premium (MIP)

FHA loans require two types of mortgage insurance premiums that protect the lender in case of default:

Upfront Mortgage Insurance Premium (UFMIP)

This is a one-time premium of 1.75% of the loan amount, which is typically financed into the loan rather than paid out of pocket at closing. For example, on a $200,000 loan, the UFMIP would be $3,500.

Annual Mortgage Insurance Premium (MIP)

This premium is paid monthly as part of your mortgage payment. The amount varies from 0.45% to 1.05% of the loan amount annually, depending on your loan term, loan-to-value ratio, and down payment. For most borrowers with the minimum 3.5% down payment, the annual MIP is 0.85% of the loan amount.

Unlike conventional loan PMI, FHA MIP typically cannot be removed unless you refinance to a conventional loan or pay down your loan balance to 78% of the original purchase price (and the loan is at least 5 years old).

How to Apply for a Kentucky FHA Loan

Applying for an FHA loan in Kentucky is a straightforward process when you work with an experienced Kentucky FHA mortgage lender. Here are the detailed steps you can expect:

Step 1: Get Pre-Approved

The first step is to get pre-approved with an FHA-approved lender. During pre-approval, the lender will review your credit, income, assets, and debts to determine how much you can borrow. This gives you a clear idea of your budget and shows sellers that you are a serious buyer in Kentucky's competitive housing market.

Step 2: Gather Required Documents

You will need to provide various financial documents, including:

• Recent pay stubs (typically last 30 days)
• Tax returns for the past 2 years
• Bank statements for the past 2-3 months
• Employment verification letter
• Valid government-issued identification
• Social Security card
• Documentation of any additional income sources

Step 3: Find a Home

Once you are pre-approved, you can start shopping for a home that meets your needs and the FHA's property requirements. Consider working with a real estate agent familiar with FHA loans and Kentucky's housing market to help you find suitable properties.

Step 4: Complete the Loan Application

After you have an accepted offer on a home, you will complete the full loan application with your Kentucky FHA lender. This includes providing updated documentation and any additional information requested by the underwriter.

Step 5: Home Appraisal and Inspection

The lender will order an FHA appraisal to ensure the home meets FHA property standards and is worth the purchase price. You may also want to get a separate home inspection for your own peace of mind.

Step 6: Final Underwriting and Approval

The underwriter will review all documentation and make a final decision on your loan. They may request additional documentation or clarification during this process.

Step 7: Closing

Once your loan is approved and all conditions are met, you will close on your new Kentucky home and get the keys!

Frequently Asked Questions (FAQs)

Can I get an FHA loan with a bankruptcy?

Yes, it is possible to get an FHA loan after a bankruptcy. Generally, you will need to wait at least two years after a Chapter 7 bankruptcy discharge and have re-established good credit. For a Chapter 13 bankruptcy, you may be able to qualify after making 12 on-time payments in your plan, with court approval.

Are FHA loans only for first-time homebuyers?

No, FHA loans are available to all qualified homebuyers, not just first-time buyers. They are a great option for anyone who can meet the eligibility requirements, including repeat buyers and those looking to refinance.

What is the difference between an FHA loan and a conventional loan?

The main differences include down payment requirements (3.5% vs typically 5-20%), credit score requirements (580 vs typically 620+), and mortgage insurance (MIP vs PMI). FHA loans are generally more accessible but require mortgage insurance for the life of the loan in most cases.

Can I use an FHA loan to buy a fixer-upper in Kentucky?

Yes, the FHA 203(k) renovation loan program allows you to finance both the purchase and renovation costs in a single loan. This can be a great option for buyers looking to purchase and improve a home in Kentucky.

How long does it take to close on an FHA loan in Kentucky?

Typically, FHA loans take 30-45 days to close from the time of application, though this can vary based on the lender, property type, and complexity of your financial situation.

Ready to Get Started with Your Kentucky FHA Loan?

Don't let another month go by without taking action toward homeownership. Kentucky's housing market is competitive, and having your financing in place gives you a significant advantage.

Get Pre-Approved Today

Our experienced Kentucky FHA mortgage specialists are ready to guide you through every step of the process.

Find the Right Kentucky FHA Mortgage Lender

Choosing the right lender is just as important as choosing the right loan. Look for a Kentucky FHA mortgage lender that is experienced with FHA loans and can guide you through the process smoothly. A good lender will:

• Answer your questions promptly and thoroughly
• Help you understand your options and loan terms
• Work with you to find a loan that fits your financial situation
• Provide competitive rates and fees
• Have experience with Kentucky's local housing market
• Offer excellent customer service throughout the process

Kentucky Housing Market Insights for 2025

Understanding Kentucky's housing market can help you make informed decisions about your FHA loan. As of 2025, Kentucky continues to offer relatively affordable housing compared to national averages, making it an attractive state for first-time homebuyers using FHA loans.

Major Kentucky cities like Louisville, Lexington, Bowling Green, and Owensboro each offer unique opportunities for FHA loan borrowers. Rural areas of Kentucky also present excellent value propositions for families looking to maximize their purchasing power with an FHA loan.

Additional Resources for Kentucky Homebuyers

• Official FHA Loan Information from HUD
• Kentucky Housing Corporation
• Understanding Your Credit Score for a Mortgage
• First-Time Homebuyer Programs in Kentucky
• Kentucky Down Payment Assistance Programs

Conclusion

An FHA loan can be an excellent path to homeownership for Kentucky residents, offering flexible requirements, competitive rates, and low down payment options. Whether you're a first-time homebuyer in Louisville, a growing family in Lexington, or anyone in between looking to purchase a home in the Bluegrass State, an FHA loan might be the perfect solution for your needs.

The key to success is working with an experienced Kentucky FHA mortgage lender who understands both the FHA program requirements and the local Kentucky housing market. Take the first step today by getting pre-approved and discovering how much home you can afford with an FHA loan.

Ready to take the next step towards homeownership in Kentucky?

About the Author
Joel Lobb is a licensed Kentucky Mortgage Loan Officer (NMLS #57916) with more than 20 years of experience helping families across Kentucky achieve homeownership. Specializing in FHA, VA, USDA, and KHC loan programs, Joel has guided over 1,300 families through the mortgage process—including hundreds of borrowers with credit scores in the 580–620 range.

Licensing Information
• NMLS Personal ID: 57916
• Company NMLS ID: 1738461 (EVO Mortgage)
• Licensed to originate mortgage loans in Kentucky only
• Equal Housing Lender

Contact Information
Phone: (502) 905-3708
Email: kentuckyloan@gmail.com

Legal Disclaimers
This website is for educational purposes only and does not constitute financial or legal advice. Loan programs, rates, and requirements are subject to change without notice. Not all borrowers will qualify. This information is not endorsed or sponsored by FHA, VA, USDA, Fannie Mae, or any government agency.

Joel Lobb is licensed to originate mortgages in Kentucky only.

Equal Housing Lender. All rights reserved. Licensed by the Kentucky Department of Financial Institutions.

© 2025 Kentucky Mortgage Rates – Joel Lobb, NMLS #57916. All rights reserved.

Different Types of Kentucky Home Loans

Understanding the Four Main Mortgage Loan Programs in Kentucky

When securing a mortgage loan in Kentucky, your loan will likely be backed by one of four major agencies: FHA, VA, USDA, or Fannie Mae/Freddie Mac (conventional loans). Each program has unique benefits and qualifications, tailored to different types of borrowers. Here's a breakdown to help you determine which program might be the best fit for you.

Conventional Loan

• At least 3%-5% down

• Closing costs will vary on which rate you choose and the lender. Typically, the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home.

Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.

Kentucky USDA Rural Housing Program

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.

Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.

They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in an rural area.

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern Kentucky.

There is a map link below to see the qualifying areas.

USDA requires 3 years removed from bankruptcy and foreclosure.

There is no max USDA loan limit.

Kentucky FHA Loan

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment with a 580-credit score or higher. And will go down to a 500-credit score with 10% down payment.

The current mortgage insurance requirements are kind of steep when compared to USDA, VA, but the rates are usually good so it can counteract the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.

The mi premiums are for life of loan like USDA.

FHA requires 2 years removed from bankruptcy Chapter 7 and 1 year from a Chapter 13 plan and 3 years removed from foreclosure.

Kentucky VA Loan

VA loans are for veterans and active-duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. 

It does have a funding fee like USDA, but it is higher starting at 2.3% for first time use, and 3.6% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.

VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and NO max loan limits in Kentucky 

Most VA lenders I work with will want a 580-credit score even though VA does not require a minimum credit score per se on their written guidelines.

VA requires 2 years removed from bankruptcy or foreclosure.

Kentucky Down Payment Assistance

This type of loan is administered by KHC in the state of Kentucky. They typically have $10,000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.

Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.

KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at KHC requires 660 credit score.

The max debt to income ratios is set at  50% respectively.

USDA, VA, FHA, and Conventional Loans in Kentucky: Key Differences First-Time Homebuyers Must Know

When you're buying a home in Kentucky, selecting the right mortgage program is critical. Whether you're a first-time homebuyer or looking to upgrade, understanding the core differences between USDA, VA, FHA, and Conventional loans will help you make a confident, informed decision.

Below is a quick visual comparison followed by a detailed breakdown tailored to Kentucky borrowers.

Loan Program Comparison Chart

Feature	USDA	VA	FHA	Conventional
Max Financing	100%	100%	96.5%	97% (3%–5% down)
Financing Closing Costs	✅ Yes	❌ No	❌ No	❌ No
Upfront Fee	1.0% Guarantee Fee	0.3–3.6% VA Funding Fee	1.75% MIP	Varies
Monthly Mortgage Insurance	0.35%	❌ None	0.85%	Varies (can drop at 80% LTV)
Bankruptcy Wait	3 Years	2 Years	2 Years (Ch. 7)	4–7 Years
Foreclosure Wait	3 Years	2 Years	3 Years	7 Years
Short Sale Wait	3 Years	2 Years	3 Years	4 Years
Seller Concessions	6%	No cap (4% to debts)	6%	3–9% depending on LTV

Kentucky USDA Rural Housing Loan

• Ideal for: Rural Kentucky homebuyers with low to moderate income

• Down Payment: 0% required

• Credit Score: Most lenders want 640+ for automated approval via GUS

• Mortgage Insurance: Low (.35% monthly; 1% upfront)

• Location: Must be in USDA-eligible rural zones

• Bankruptcy/Foreclosure Wait: 3 years

• Best for: Borrowers who want 100% financing in eligible rural areas

Kentucky VA Loan (For Veterans and Military)

• Ideal for: Veterans, active duty, and eligible military members

• Down Payment: 0% required

• Credit Score: Typically 580+ (no official VA minimum)

• Mortgage Insurance: None

• Funding Fee: 2.3% (first-time use), 3.6% (subsequent use)

• Location: Anywhere in Kentucky

• Bankruptcy/Foreclosure Wait: 2 years

• Best for: Military buyers wanting no down payment and no MI

Kentucky FHA Loan

• Ideal for: First-time homebuyers or those with credit challenges

• Down Payment: 3.5% with 580+ credit score; 10% with 500–579

• Credit Score: 580 minimum for most

• Mortgage Insurance: 0.85% monthly for life of loan; 1.75% upfront

• Bankruptcy Wait: 2 years (Ch. 7), 1 year (Ch. 13 plan)

• Foreclosure Wait: 3 years

• Grants Allowed: Yes (e.g., KHC DAP)

• Best for: Buyers with less-than-perfect credit or lower down payments

Conventional Loan (Fannie Mae/Freddie Mac)

• Ideal for: Buyers with strong credit and stable income

• Down Payment: 3%–5%

• Credit Score: 620 minimum (680+ preferred for best pricing)

• Mortgage Insurance: Varies, can be removed at 80% LTV

• Closing Costs: Often higher unless lender-paid via higher rate

• Bankruptcy Wait: 4 years (Ch. 7), 2 years (Ch. 13)

• Foreclosure Wait: 7 years

• Best for: Borrowers with higher scores and at least 3%–5% down

Kentucky Down Payment Assistance (KHC)

• DPA Offered: $10,000 second mortgage paid over 10 years

• Available for: FHA, VA, USDA, Conventional

• Min Credit Score: 620 (660 for Conventional)

• Debt Ratio Cap: 50%

• Perfect for: Buyers with solid income but no down payment

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

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

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

How much income do I need qualify for Kentucky Home Loan?

Kentucky Lender's Criteria: Debt-to-Income Ratios

The Debt-to-Income (DTI) ratio is a critical factor in determining whether you qualify for a mortgage along with credit, work history and assets. It measures how much of your gross monthly income is used to cover your monthly debt obligations.

For Most Kentucky Mortgage loans ,the  debt to income ratio is centered around the front end ratio and back end ratio. The front end ratio will vary according to the different types of loans, and I will show them below.  The backend ratio, which measures the new house payment along with your current monthly payments on the credit report along with any court ordered payments like child support, DTI limit is typically 45 to 50%

From a Kentucky Mortgage lender's perspective, your ability to purchase a home depends largely on the following factors:

Front-End Ratio

The front-end ratio is the percentage of your yearly gross income dedicated toward paying your mortgage each month. Your mortgage payment consists of four components: principal, interest, taxes and insurance (often collectively referred to as PITI) A good rule of thumb is that PITI should not exceed 31% of your gross income. If you make $100,000 a year, then your max house payment to include escrows for home insurance, mortgage insurance, property taxes would be $2583.00

Back-End Ratio

The back-end ratio, also known as the debt-to-income ratio, calculates the percentage of your gross income required to cover your debts. Debts include your mortgage, credit-card payments, child support and other loan payments. Most lenders recommend that your debt-to-income ratio does not exceed 45% of your gross income. To calculate your maximum monthly debt based on this ratio, multiply your gross income by 0..45 and divide by 12. For example, if you earn $100,000 per year, your maximum monthly debt expenses should not exceed $3,750 with new mortgage payment. Utility bills, car insurance, cell phone bills, insurance payments does not factor into this ratio. Only bills listed on credit report and 401k loan and child support payment




If you are looking to purchase your first home, you have probably been doing your research about properties in your area, where you might be able to obtain a loan and how to qualify for it. A key term you may recognize from all that research is "debt-to-income ratio," which refers to the figure you get when you add up all your monthly debt payments and then divide that number by your monthly income. In laymen's terms, the debt-to-income ratio gives potential mortgage lenders an idea of how much your expenses are each month in comparison to how much you actually earn.


Depending on where you are in the home-buying process, you may have a good idea of where your credit score lands. As important as a strong credit score is, however, a favorable debt-to-income ratio is arguably of equal importance, and it may be just as closely scrutinized by any potential mortgage lender.

Front-end ratios vs. back-end ratios

When you try and obtain a loan, expect possible lenders to review two types of debt-to-income ratio. The front-end ratio, or "housing" ratio, gives them an idea of what percentage of your monthly income would have to go toward home-related expenses, such as the mortgage, associated taxes and any additional fees, such as homeowner's association expenditures, that may apply.


The back-end ratio, on the other hand, takes a more cumulative approach and compares your monthly income to all your expenses, from the housing-related ones to school tuition, child support, car payments and any other financial obligations you may have.

The ideal debt-to-income ratio

The exact percentage your lender will look for will likely vary based on factors such as your credit score, how much you have in your savings account and how much you have to put down for your down payment. Most standard lenders, however, prefer to see something in the ballpark of 28 percent for a front-end ratio. For a back-end ratio, they will likely look for a percentage that does not exceed 36 percent. Federal Housing Authority lenders typically look for a front-end ratio of about 31 percent and a back-end ratio that does not exceed 43 percent.

DTI Calculator for Kentucky Mortgage Loans

Wondering how much house you can afford in Kentucky? Use our simple DTI (Debt-to-Income) ratio calculator to estimate your maximum monthly mortgage payment based on FHA, USDA, VA, KHC, and Conventional loan program guidelines. This is especially helpful for first-time homebuyers in Kentucky applying for zero-down USDA loans, FHA loans, or KHC Down Payment Assistance.

DTI Max House Payment Calculator

Gross Monthly Income ($): Total Monthly Debt Payments ($): Front-End DTI (%) Back-End DTI (%)

At EVO Mortgage, we help clients across Kentucky understand how to qualify based on DTI ratios, credit scores, and loan program rules. Contact Joel Lobb or call/text 502-905-3708 to get pre-approved today!

Lower a high ratio

Simply put, the most effective way to lower a high debt-to-income ratio and therefore make yourself more appealing to lenders is to pay off some of your debt. If you have a cosigner who may be willing to help you out with a loan, that could serve as an additional method of getting around a high ratio.

To calculate the debt-to-income (DTI) ratio for the scenario you provided, you'll need to figure out both the front-end and back-end DTI ratios.

1. Front-end DTI ratio: This ratio only includes the mortgage payment (including principal, interest, taxes, and insurance) divided by your gross monthly income.




2. Back-end DTI ratio: This ratio includes all monthly debts (mortgage, credit cards, auto loans, student loans, etc.) divided by your gross monthly income.

   
   

(DTI) ratio requirements for different types of mortgage loans in Kentucky, including FHA, VA, USDA, Fannie Mae, and Kentucky Housing loans

Here’s a breakdown showing how much house payment a borrower making $5,000 gross per month with $1,000 in monthly debts can qualify for across various loan programs in Kentucky, based on standard DTI guidelines. The table displays both front-end and back-end limits and illustrates which payment amount would be the true qualifying cap under each program. Let me know if you want to add taxes, insurance, or MI estimates next.

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

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

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

Kentucky Local Home Loan Lender Services

 First-Time Home Buyers Welcome
 FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans
 Conventional Loan Options Available
 Fast Local Decision-Making
 Experienced Guidance Through the Home Buying Process

Kentucky FHA Mortgage Changes for 2025 Kentucky Home Buyers

🏠 Kentucky FHA Mortgage Loans

Expert Kentucky FHA Lending with 20+ Years Experience

Helping Kentucky Families Achieve Homeownership Since 2003

🔥 NEW: 2025 FHA Appraisal Updates in Effect!

June 27, 2025: HUD released Mortgagee Letter 2025-18 with streamlined FHA appraisal requirements. Faster approvals, less paperwork, and better alignment with conventional loans!

🎯 Top 5 Reasons Kentucky Families Choose FHA Loans

💰

Low Down Payment

Just 3.5% down payment required - much lower than conventional loans

📊

Flexible Credit

Minimum 580 credit score for 3.5% down, 500-579 for 10% down

🤝

Seller Paid Closing Costs

Sellers can contribute up to 6% toward your closing costs

💼

Flexible Income

Various income sources accepted with proper documentation

💑

Qualify Without Spouse

Can qualify individually even if spouse has poor credit

🆕 What's New: 2025 FHA Appraisal Changes

HUD's latest updates make FHA loans even more attractive for Kentucky homebuyers:

• 🚫 Eliminated: Remaining Economic Life requirements for appraisers
• 📷 Streamlined Photos: No more attic or crawl space photos required
• 📊 Fewer Comps: Reduced comparable sales requirements in dynamic markets
• ⚡ Faster Process: Quicker appraisal turnaround times
• 🎯 Better Consistency: Closer alignment with conventional loan standards

💡 What This Means for You

These changes make FHA loans more competitive in Kentucky's fast-moving real estate market. Your FHA offer can now compete more effectively with conventional financing, especially when combined with our available down payment assistance programs!

📋 Kentucky FHA Loan Requirements

Requirement	Details
Credit Score	580+ for 3.5% down | 500-579 for 10% down
Down Payment	3.5% minimum (can be gifted from family or qualified sources)
Co-Signer	Yes - non-occupying co-borrowers allowed to help qualify
Debt-to-Income	Typically 43% or less (higher with strong compensating factors)
Employment	2 years steady work history (fixed income sources accepted)
CAIVRS	Must have clear CAIVRS (no outstanding federal debt)
Property Types	Single family, condos, 2-4 unit properties, manufactured homes
Mortgage Insurance	Required for all FHA loans - based on loan-to-value and term (not credit score or DTI like conventional PMI)

💰 Kentucky FHA Loan Limits (2025)

Maximum FHA Loan Amounts by County

The maximum FHA loan amount varies by county in Kentucky. Current limits include:

• Base Limit: $524,225
• Mid-Range Counties: $671,200
• Higher Cost Areas: $811,275
• Highest Limit Counties: $1,008,300

Maximum Financing: 97.75% of appraised value or sales price (whichever is lower)

Contact me for specific loan limits in your Kentucky county - limits vary by location. I'll help you determine the exact limit for your area.

🏡 Available Kentucky FHA Loan Types

Purchase Loans

• FHA Purchase: Buy your primary residence with just 3.5% down
• FHA + KHC: Combine with Kentucky Housing Corporation down payment assistance

Refinance Options

• Rate/Term Refinance: Lower your rate or change loan terms
• Cash-Out Refinance: Access your home's equity for renovations, debt consolidation
• FHA Streamline: Quick refinance for existing FHA borrowers (no appraisal needed)

✅ Pros and Cons of FHA Loans

✅ Advantages

• Low 3.5% down payment
• Flexible credit requirements
• Competitive interest rates
• Down payment can be gifted
• Seller can pay closing costs
• Available after bankruptcy/foreclosure
• No prepayment penalties

⚠️ Considerations

• Mortgage insurance required
• Primary residence only
• Loan limits apply
• Property must meet FHA standards
• Upfront mortgage insurance premium

🕐 Waiting Periods After Financial Events

Event	Standard Waiting Period	With Extenuating Circumstances
Chapter 7 Bankruptcy	4 years	2 years
Chapter 13 Bankruptcy	2 years from discharge	1 year with court approval
Foreclosure	3 years	3 years (with conditions)
Short Sale/Deed-in-Lieu	3 years	2 years

🎁 Kentucky Down Payment Assistance Available

Kentucky Housing Corporation (KHC) Programs

We still have down payment assistance available through KHC programs for qualified Kentucky first-time homebuyers. These funds can significantly reduce your upfront costs and make homeownership more accessible.

Program Benefits:

• Up to $10,000 in KHC down payment assistance
• 5% grant available for qualified borrowers
• Below-market interest rates
• Can be combined with FHA loans
• Income and purchase price limits apply

🚀 Ready to Get Your Kentucky FHA Loan Started?

Over 20 Years Experience | 1,300+ Kentucky Families Helped

Let me guide you through the new 2025 FHA guidelines and find the best loan program for your situation. Free pre-approval with same-day decisions!

📞 Call/Text
(502) 905-3708

📧 Email
kentuckyloan@gmail.com

🌐 Website
KentuckyFHALoan.com

📍 Office
911 Barret Ave.
Louisville, KY 40204

📞 Get Free Pre-Approval 📧 Ask Questions

Joel Lobb - Kentucky Mortgage Loan Officer
NMLS #57916 | EVO Mortgage - NMLS #1738461

Important Disclosures:

• Equal Housing Lender - All loan programs subject to credit approval
• Rates and terms subject to change without notice
• Visit NMLS Consumer Access for licensing information
• This website is not endorsed by FHA, VA, USDA, or any government agency
• Kentucky Mortgage Loan Officer License Only