Kentucky Mortgage Loan Credit Score Requirements 2025 | FHA, VA, USDA, Conventional, KHC

Kentucky Mortgage Loan Credit Score Requirements 2025

One of the first questions Kentucky homebuyers ask is: “What credit score do I need to qualify for a mortgage?” The answer depends on which program you use—FHA, VA, USDA, Conventional, or even the Kentucky Housing Corporation (KHC) Down Payment Assistance program.

This guide breaks down each program’s **credit score requirements**, what makes them different, and how you can qualify—even if your credit isn’t perfect.

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USDA Loan Requirements in Kentucky (2025)

Buying a home in rural or small-town Kentucky is easier with a USDA loan. This program offers **zero down payment financing** and flexible credit requirements, making it one of the best-kept secrets for first-time buyers.

• Minimum Score: 580+ accepted
• Preferred Score: 640 for smoother approvals
• Down Payment: 0% (no money down)
• Other Requirements: Home must be in a USDA-eligible rural area, and income limits apply

See If You Qualify for a USDA Loan in Kentucky

Contact Joel Lobb today for a free USDA pre-qualification and property eligibility review.

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FHA Loan Requirements in Kentucky (2025)

If your credit isn’t perfect, FHA loans may be your best option. Backed by the Federal Housing Administration, they’re designed for borrowers who may not qualify for Conventional financing.

• Minimum Score: 500 with 10% down; 580+ with 3.5% down
• Lender Overlays: Many lenders prefer 620+ even though FHA allows lower
• Best For: First-time buyers, credit-challenged borrowers

Start Your FHA Loan Pre-Approval

See how much home you can afford in Kentucky with flexible FHA financing.

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VA Loan Requirements in Kentucky (2025)

For veterans, active-duty service members, and eligible spouses, the VA loan program is unmatched. It offers **zero down, no PMI, and no official minimum credit score**.

• Minimum Score: No official minimum
• Preferred Score: 620+ for best approval odds
• Benefit: 0% down payment and no monthly mortgage insurance

Kentucky VA Home Loans

Thank you for your service. Let’s explore your no-down-payment VA loan options in 2025.

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Conventional Loan Requirements in Kentucky (2025)

Conventional loans remain the go-to option for many Kentucky buyers with stronger credit. Backed by Fannie Mae and Freddie Mac, they reward higher credit scores with better rates and lower PMI.

• Minimum Score: 620
• Preferred Score: 760+ for best rates
• Down Payment: 3-5%+ for first-time buyers

Check Your Conventional Loan Options

With just 3-5% down, you may qualify for a Conventional loan in Kentucky today.

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KHC Down Payment Assistance (2025)

Saving for a down payment is the biggest barrier for many homebuyers. The Kentucky Housing Corporation (KHC) is helping with a **temporary boost to $12,500 in assistance** (up from $10,000), available until November 30, 2025.

• Minimum Score: 620
• Assistance: Up to $12,500 for down payment and closing costs
• Other Requirements: Income and purchase price limits apply; must be used with FHA, VA, USDA, or Conventional first mortgage

Use KHC’s $12,500 Down Payment Assistance

Ask me how to combine KHC assistance with FHA, VA, USDA, or Conventional loans to save upfront costs.

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Kentucky Mortgage Loan Credit Score Comparison (2025)

Loan Type	Minimum Score	Preferred Score	Down Payment
USDA Loan	580+	640	0%
FHA Loan	500 / 580+	620+	10% / 3.5%
VA Loan	No Minimum	620	0%
Conventional	620	680+	3%+
KHC Assistance	620	640+	0% (with DPA)

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Frequently Asked Questions

Most lenders require at least 580 for a USDA loan in Kentucky, but 640 is preferred for smoother approvals.

FHA loans allow 500 with 10% down or 580 with 3.5% down. Most Kentucky lenders prefer 620 or higher.

The VA does not set a minimum score. Most lenders accept 580+, with 620 preferred for stronger approvals.

Conventional loans require at least 620. Higher scores (680+) qualify for better rates and lower PMI costs.

Yes. FHA, USDA, and KHC programs all offer options for borrowers with lower credit scores. With the right strategy, you can still qualify.

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Final Thoughts: Credit Score & Mortgage Approval in Kentucky

Each mortgage program in Kentucky has different credit score requirements, but that doesn’t mean you can’t qualify if your score isn’t perfect. With USDA and VA offering zero down, FHA giving credit-challenged buyers a path forward, and KHC adding down payment help, there’s a solution for nearly every buyer in 2025.

Start Your Kentucky Mortgage Pre-Approval Today

Contact Joel Lobb for a free pre-qualification, credit review, and loan comparison. Let’s find the program that works for you.

Joel Lobb – Senior Loan Officer, EVO Mortgage
NMLS #57916 | Company NMLS #1738461
📞 (502) 905-3708 | ✉️ kentuckyloan@gmail.com

Equal Housing Lender | Not endorsed by any government agency. All loans subject to approval and availability.

FICO vs. Credit Karma for Mortgage Loans in Kentucky

Credit Karma vs. FICO Scores: What Kentucky First-Time Homebuyers Need to Know About Mortgage Credit Score Requirements

Published by Joel Lobb, Kentucky Mortgage Loan Officer | NMLS ID: 57916

When you're preparing to buy your first home in Kentucky, understanding the difference between Credit Karma scores and FICO scores could save you from a disappointing surprise at the lender's office. Many Kentucky first-time homebuyers are shocked when their mortgage credit score differs significantly from what they've been monitoring on free apps like Credit Karma.

As a Kentucky mortgage expert who has helped over 1,300 families achieve homeownership, I see this confusion almost daily. Let me explain exactly what scores mortgage lenders use and why your Credit Karma score might not tell the whole story.

If you're a first-time homebuyer in Kentucky, chances are you've checked your Credit Karma score and wondered why it doesn't match what mortgage lenders see. Let’s break down the real difference between Credit Karma (VantageScore) and the FICO scores used for mortgage approvals.

What Credit Karma Really Shows You

Credit Karma uses the Vantage Score model (developed by Equifax, TransUnion, and Experian), intended for consumer credit monitoring—not lending. It's helpful for tracking general credit health but not valid for mortgage lending decisions.

• Score range: 300–850
• Data sources: Equifax & TransUnion
• Used by mortgage lenders? No

FICO Scores Used by Kentucky Mortgage Lenders

Mortgage lenders—including FHA, VA, USDA, and KHC—use older, more conservative FICO scoring models:

Credit Bureau	FICO Model Used
Experian	FICO Score 2
Equifax	FICO Score 5
TransUnion	FICO Score 4

Lenders typically use the middle score from all three to evaluate your loan application.

FICO 8 vs. Mortgage FICO: What’s the Difference?

• FICO 8: Common for credit cards & auto loans
• Mortgage FICO (2, 4, 5): Required for mortgage loans
• Mortgage FICO is more sensitive to inquiries, collections, and new accounts

Why Your Credit Karma Score May Be Inaccurate for Mortgages

Factor	Credit Karma (VantageScore)	Mortgage FICO (2/4/5)
Used for Mortgages?	No	Yes
Data Pulled From	Equifax, TransUnion	All 3 Bureaus
Score Differences	Often 10–50+ points off	Accurate for approval

 Summary: Kentucky Mortgage Credit Score Tips

• FHA Loans: Most lenders require a 580 mortgage FICO score
• VA/USDA Loans: Generally start at 620+
• Credit Karma is for monitoring only
• Use myFICO.com to check your actual mortgage scores

 Credit Karma vs. FICO Scores for Mortgages

Final Word from Joel Lobb – Kentucky Mortgage Loan Officer

"I’ve helped over 1,300 Kentucky homebuyers secure loans through FHA, VA, USDA, and KHC programs. Your Credit Karma score won’t cut it—we need to pull the FICO 2, 4, 5 scores to get you approved and locked into the right loan. Let’s do this the right way."

 Get Pre-Approved the Right Way

 Call or Text: (502) 905-3708

Email: kentuckyloan@gmail.com

Apply Online: Kentucky Mortgage Application

 

Kentucky Mortgage Credit Scores Used For A Kentucky Mortgage Approval Letter

Which FICO Score Models Matter for Kentucky Mortgage Loans?

FICO® scores are the cornerstone of mortgage approvals, but not all FICO scores are created equal. If you're buying a home in Kentucky—especially using government-backed loans like FHA, VA, or USDA—it's crucial to understand which versions lenders actually use to qualify you.

Understanding the FICO® Scores Used by Mortgage Lenders

When you check your credit score on apps like Credit Karma or your bank, you're likely seeing a version that lenders don’t use for mortgages. These are typically FICO 8 or VantageScore 3.0. Mortgage lenders, on the other hand, use older FICO score versions designed specifically for risk evaluation in home lending.

Which FICO Scores Do Lenders Pull?

Here's what most Kentucky mortgage lenders look at:

• FICO Score 2 (Experian)
• FICO Score 4 (TransUnion)
• FICO Score 5 (Equifax)

These are often referred to collectively as the “classic FICO models” and are used for:

• FHA Loans
• VA Loans
• USDA Rural Housing Loans
• Conventional Loans (via Fannie Mae/Freddie Mac)

Why Is Your Mortgage Score Different Than Credit Karma?

Credit Karma uses VantageScore 3.0, which isn't used in mortgage underwriting. It may show a score that's 20–40 points higher (or lower) than what your lender sees. That’s why getting a lender-pulled tri-merge report is essential before house hunting.

How to Improve the Right FICO Score

• Keep credit card utilization under 30%
• Avoid new hard inquiries 30–60 days before applying
• Dispute inaccurate accounts directly with bureaus (but avoid disputes right before applying)
• Pay down revolving debt first

Get Pre-Qualified with a Mortgage Expert in Kentucky

Ready to check your real mortgage credit scores? Get started with a free pre-qualification from Joel Lobb (NMLS #57916) at EVO Mortgage.

📞 Call or Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: www.kentuckyfirsttimehomebuyer.com

This blog is for educational purposes only. Equal Housing Lender. NMLS #57916 | www.nmlsconsumeraccess.org

Kentucky Mortgage Guidelines for Income, Employment, and credit scores

Kentucky Mortgage Loan Preapproval: What To Know

What affects your home loan preapproval

Your income, work history, credit score, money down and  saving are key factors that lenders will consider during the mortgage process.

Employment Status for Kentucky Mortgage Pre-Approval

Self-employed individual requires two-year tax returns'.

Only borrowers who have an ownership interest of 25% or more in a business and are not W-2 employees are considered “self-employed.” However, there is an exception if the borrower can show a two-year history in a similar line of work, which includes having documentation that proves an equal or higher income in the new role compared to the W2 position.

Debt-to-Income Ratio

The debt-to-income ratio is the percentage of your monthly gross income that goes toward paying debts. There are two types of DTI that lenders will consider during the mortgage process: front-end and back-end. The first consists only of your housing-related expenses, whereas the latter also includes all your minimum required monthly debts.

The lower your DTI, the better your chances of securing a home loan. 

For example, FHA loans secured by the government have more lenient requirements — you can have a DTI of up to 57% and still get approved for an FHA home loan. USDA loans used to buy homes in rural areas have a lower maximum DTI of 45%.

Loan-to-Value Ratio

The loan-to-value ratio (LTV) is a number lenders use to determine how risky a loan to a potential borrower might be. It measures the relationship between the loan amount and the market value of the property you want to buy, and it can also determine whether mortgage insurance will be required.

All mortgages have a maximum LTV to qualify. However, just like with DTI, the LTV varies depending on the loan. FHA loans, for example, have an LTV of 96.5% since they allow down payments of as little as 3.4%.

Going for an LTV of 80% or less is “ideal” because you get unique benefits as a buyer, but that requires a down payment of 20%. Ultimately, each buyer will need to figure out their own LTV based on how large a down payment they can afford.

Credit History and FICO Score for Kentucky Mortgages 

Your credit history is one of the most important factors when it comes to getting a mortgage.

Best Kentucky Mortgage Lender for First Time Home Buyers in Kentucky

You don’t need a perfect credit score to buy a house, but those with outstanding scores are usually rewarded with lower interest rates and a greater variety of payment options. Buyers with very poor credit have the option of finding a co-signer who has better credit than them to help secure the loan.

Why Getting Preapproved Is Such a Big Deal

Getting preapproved for a mortgage helps you shop for homes that you can afford and shows you are a serious buyer.

But a letter of preapproval is more than just a way to look good to sellers. It also helps you find the right mortgage lender and provides some flexibility in bargaining or negotiating for a better price range or specific costs, repairs, and improvements to a home.

Getting preapproved makes the entire closing process faster, too. It takes an average of 30 to 45 days to close on a house in Kentucky, and part of that period is due to the process of mortgage approval, title search, appraisal report, home inspections, verifying employment and bank account info along with taxes and w-2s and paystubs to validate the pre-approval.

What are standard continuity of employment requirements?

A borrower will need to verify a two-year cumulative employment history. Less than two year may be 

offset via school transcripts; if guaranteed hourly (40) or salaried in nature, the base income 

will be allowable. Variable earnings will require at minimum 12 months receipt on current position; 

OT, Bonus and commission are considered variable however, must reflect a cumulative two- year 

history of receipt.

What income can I use for a traveling nurse?

A minimum 12-month history of contract nursing work is required. Income documentation must

 include  copies of applicable contracts and WVOE’s for each position. The income will be averaged. 

Standard two- year employment history required.

Do we allow one score on a conventional transaction? No score?

Yes! If the borrower has three scores, the middle score is to be used; two scores, the lower score 

is to be used; one score, that score is to be used.  If no score, only allowable with AUS A/E and 

less than 50% of transactional income contributions. We do not average scores.

Can I use part time or secondary income for qualifying purposes?

Yes! Conventional~ secondary employment will require a two- year history of receipt to use in 

conjunction with the primary employment earnings. Multiple second jobs over this time frame are 

allowable however the borrower may not have a job gap > one month in length. Part time employment 

alone will be considered variable in nature and will require a minimum 12- month history; earnings 

will be averaged. FHA~ will require an uninterrupted two- year history for utilization.

When must a borrower start a new job in conjunction with future employment?

Conventional requires a start date within 90 days of the Note date. FHA requires a start date 

within 60 days of note date. VA max 60 days of note date. Non contingent contract required for each 

entity.

What type of income(s) are considered illegal?

Foreign shell banks; medical marijuana dispensaries; any business or activity related to 

recreational marijuana-use , growing, selling or supplying- even if permitted by state or local law.

 Policy is not limited to  owner of business.

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

https://www.mylouisvillekentuckymortgage.com/

6 Tips to Boost Your Credit Score for Kentucky Mortgage Loans (FHA, VA, USDA, KHC)

6 Tips to Boost Your Credit Score for Kentucky Mortgage Loans (FHA, VA, USDA, KHC)

If you’re looking to buy a home in Kentucky, having a solid credit score is essential for qualifying for popular mortgage programs like FHA, VA, USDA, or KHC loans. Here are six actionable tips to improve your credit score and increase your chances of getting approved for your dream home loan.

1. Pay Your Monthly Bills on Time

Here are six tips for improving your credit score for a fresh financial start 

1. Pay Your Monthly Bills on Time
Paying monthly bills is a necessary chore that has a definite effect on your credit score. According to the FICO scoring model, your payments account for as much as 35 percent of your total score. Create reminders for due dates or establish a calendar for yourself to ensure you get everything paid on time.

2. Reduce Your Debts
Got credit card debt? Start paying it off now. Part of your credit score is based on the amount of available credit you have, known as your credit utilization ratio. So if you're carrying high balances, you'll want to lower them as soon as possible. Create a personal budget with a goal of reducing your spending so that it's lower than your income. Then, use any monthly surplus for your credit card debts until they're gone for good.

3. Limit Credit Inquiries
Looking for a new apartment? What about a mortgage? In either situation, try and group your applications together as much as possible. Applications for new lines of credit will generate a "hard pull" on your credit, and having too many of them in a short period of time can lower your score. However, credit reporting agencies usually consider a group of applications within a short period of time as one pull, as long as they're in the same category.

Similarly, limit yourself to opening up no more than one or two credit cards per year, which also generate hard pulls. Even if you get a ton of offers in the mail for stellar sign-up bonuses, they're likely to be offset by the damage to your credit. FICO reports that new credit and credit inquiries account for 10 percent of your total score.

4. Don't Cancel Old Cards
Have a card you don't use anymore? Don't close it. This can negatively affect your score as it lowers your amount of available credit. Instead, use it about once per month and don't forget to pay the bills in full, and on time.

5. Request Credit Limit Increase
If you only have one card and you're constantly approaching your spending limit, call the bank and ask for an increase in your credit line. This will raise the amount of available credit, which will eventually improve your score.

6. Take Care of Late Payments Before They Hit Your Score
If you do happen to miss a payment, contact the card issuer immediately. If you have good history built up, the company may agree to not report your late payment. Even if you can't avoid a late-payment fee, be sure to get your account up to date as soon as possible so you can limit the damage.
Your credit score is yours to own. It reflects your financial history and helps lenders predict how you will manage your finances in the future. Due to the lingering effects of credit, you don't want to waste any time to improve your credit.

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

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

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

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, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

What is the minimum Credit Score Needed to Buy a House and get a Kentucky Mortgage Loan?

Kentucky Home Buyers: What Credit Score Do You Need?

Buying a home in Kentucky? Your credit score plays a crucial role in determining which mortgage loans you qualify for and how much you’ll pay in interest rates. Understanding the minimum credit score requirements for FHA, VA, USDA, and Conventional loans can help you prepare for homeownership and secure the best loan options.

While there's no single, simple answer, this guide will break down the minimum credit score requirements for various Kentucky mortgage options, empowering you to understand where you stand and how to achieve your homeownership goals. We'll cut through the confusion and give you the straight facts!

Why Your Credit Score Matters: More Than Just a Number

Think of your credit score as your financial reputation. Lenders use it to assess the risk of lending you money. A higher score signals lower risk, translating to better interest rates, more favorable loan terms, and potentially lower down payment requirements.

Here's the credit score impact on interest rates and your wallet (in general terms):

• 760-850: The Gold Standard! Expect the lowest interest rates and the most attractive loan options.
• 700-759: Excellent! You'll still qualify for very competitive rates and favorable terms.
• 640-699: Good. You'll likely be approved, but interest rates will be slightly higher.
• 620-639: Acceptable. This range is often the minimum for conventional loans, but be prepared for less favorable rates.

As the guide shows, aiming for a 740+ score can lead to best rates and closing costs on mortgage loans, especially Conventional Mortgage Loans,.

Kentucky Mortgage Options: Credit Score Requirements Deconstructed. 

Let's explore the minimum credit score requirements for different Kentucky mortgage types:

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 a 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.

There is also a max household income limits with most cutoff starting at 109,500 for a family of four, and up to $136,000 for a family of five or more.

The income limits change every spring, so make sure and check to see what updated income limits are.
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 and will go down to a 580-credit score.

 
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 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 an funding fee like USDA, but it is higher starting at 2% for first time use, and 3% 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 says in their guidelines there is no minimum score, good luck finding a lender
VA requires 2 years removed from bankruptcy or foreclosure
Clear Caviars needed to for a VA loan.

 

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. Current terms are $10,000 over 10 years at 3.75% 

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% and 50% respectively.

 FHA Loans – Best for First-Time Homebuyers with Low Credit

500-579 Credit Score – Requires 10% down payment
580+ Credit Score – Requires 3.5% down payment
Flexible credit guidelines & lower down payments
Easier approval for first-time buyers & those with past credit issues

VA Loans – Best for Veterans and Active Military

No official minimum credit score
 Most lenders require 580-620+
0% down payment – No mortgage insurance required
Best for veterans, active-duty military & eligible spouses

USDA Loans – Best for Rural & Suburban Homebuyers

Minimum 620 to 640+ Credit Score (for automatic approval through GUS )
 Some lenders may approve below 640 with manual underwriting with a minimum score of 581 and above
0% down payment required
Best for low-to-moderate-income homebuyers in rural areas Income limits and property locations restrictions 

Conventional Loans – Best for Borrowers with Good Credit

Minimum 620+ Credit Score-Truthfully, if scores are 620 and less than 20% down payment look at going to the government loan programs like FHA, USDA and VA 
Higher scores (760+) qualify for better interest rates
Down payment: 3%-5% or more
Best for buyers with strong credit & stable income

Kentucky Housing Corporation (KHC) Loans – First-Time Buyer Assistance

Minimum 620+ Credit Score, Income limits and max dti is 50% usually used for the down payment and closing costs on a FHA, VA, USDA or Conventional loan with the $10k DAP assistance
Offers down payment assistance for eligible buyers
Best for first-time homebuyers needing financial help 

Non-QM Loans – Alternative Financing for Unique Situations

Minimum 500-620 Credit Score (Varies by lender)
 Includes Bank Statement Loans, DSCR Loans, Asset-Based Loans
Best for self-employed borrowers, real estate investors & those with non-traditional income sources

Why Choose Non-QM? These non-traditional loans are great for borrowers who don’t qualify for conventional or government-backed loans due to income verification challenges.

How Credit Scores Affect Mortgage Interest Rates

Your credit score doesn’t just determine loan eligibility—it also affects the interest rate you receive.

Here’s how credit scores impact mortgage rates (examples based on typical loan rates):

Credit Score	Estimated Interest Rate	Kentucky Mortgage Loan Options Available
760-850	Best Rate (Lowest Cost)	Kentucky Conventional, FHA, VA, USDA
700-759	Good Rate	Kentucky Conventional, FHA, VA, USDA
640-699	Higher Rate	Kentucky FHA, VA, USDA, Some Conventional
620-639	Even Higher Rate	Kentucky FHA, VA, USDA, Some Conventional
Below 620	Limited Options, Highest Rates	FHA, VA, USDA and  (with higher down payment), Non-QM

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

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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 No Money Down Home Loans

Buy a Home in Kentucky With No Money Down — Even With Bad Credit, subject to credit qualfying criteria

Struggling with credit? Don’t have a down payment saved up?
You’re not out of options. You’re just one good loan officer away from a plan.

At Kentucky Home Loans by Joel Lobb, we specialize in helping homebuyers just like you get approved using government-backed loan programs that require little to no money down—even with less-than-perfect credit.

You Might Qualify for These No-Money-Down Options:

USDA Loans

• $0 down payment required
• Flexible credit guidelines (scores as low as 580)
• Great for rural areas and small towns across Kentucky

VA Loans (for veterans, active duty & eligible spouses)

• 100% financing — no down payment
• No monthly mortgage insurance
• Approvals with credit scores as low as 500–580

FHA Loans + KHC Assistance

• Only 3.5% down, with help available from Kentucky Housing Corporation
• Credit scores as low as 580 (even lower with 10% down)
• Forgiving on past credit issues, bankruptcies, or foreclosures

Kentucky Housing Corporation (KHC)

• Up to $10,000 in down payment help
• Pair with FHA, VA, USDA, or Conventional loans
• Available to first-time and repeat buyers

We Make It Simple:

1. Free mortgage application
2. Same-day credit review and pre-approval
3. No hidden fees or pressure
4. One-on-one help every step of the way

Let’s Find Out What You Qualify For

I’m Joel Lobb, a local loan officer with 20+ years of experience helping Kentucky families become homeowners. If you've been told “no” before, don’t give up. There may still be a path forward—and I’ll help you find it.

Call or Text: (502) 905-3708
Email: kentuckyloan@gmail.com
NMLS #57916 – Kentucky #1 Lender for Kentucky First Time Homebuyers for government backed loans by FHA, VA, USDA and KHC.

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Ready to Get Started? If you’re ready to purchase a home in Kentucky, partnering with an experienced loan officer will make the process seamless. Whether you're a first-time homebuyer or upgrading, programs like FHA, VA, USDA, and KHC down payment assistance are designed to help you achieve your dream of homeownership. For personalized guidance and support, contact: 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.

Medical Debt Collections being Removed from Credit Reports

Medical Collections on Credit Report

The Consumer Financial Protection Bureau (CFPB) finalized a rule January 7, 2025 that will remove $49 billion in medical debt from credit reports, helping 15 million Americans! 

Here’s what’s changed: 

• Medical bills are no longer on credit reports – They won’t hurt your score anymore. 
• Lenders can’t use medical info in loan decisions. 
• Credit scores could rise – Many people will see a boost of points
•  More mortgage approvals

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

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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

The Credit Report and Credit Scores Used For A Kentucky Mortgage Loan Approval FHA, USDA, Fannie Mae and VA

Understanding Credit Scores for Kentucky Mortgage Loan Approval

Why do some mortgage lenders require a certain credit score whereas other mortgage lenders may not?

One Word Mortgage Overlays. Some lenders will institute a higher credit score than the minimum below to lessen their risk of having to buy the loan back from the government agencies if they get too many mortgage defaults. In order to protect their lending portfolio and hedging their risk, they will require say a 640 credit score or higher for a FHA loan, whereas the guidelines clearly state you can do a FHA loan with a minimum credit score of 580 To understand mortgage overlays, it helps to have a foundation of how the mortgage approval process works. Mortgage lenders always have underwriting guidelines—standards to determine the amount and terms you qualify for.

Credit Score Minimum guidelines are typically set based on the mortgage program, e.g., FHA, VA, or USDA. FHA, --

What score does the Mortgage Lender Use? Why may it be different than the one you are seeing?

The reason mortgage lenders use older FICO Scores is because they don’t have a choice. They are essentially forced to use them.

For a bank to sell a mortgage to Fannie Mae or Freddie Mac, FHA VA, USDA, Etc, the loan has to meet certain guidelines. Some of these guidelines require borrowers to have a minimum credit score under specific FICO Score generations.

If you’re planning to apply for a mortgage, be aware that the credit score you see on your application might differ slightly from the one you’re used to.

It might even be different than what comes up when you monitor your credit, or even when you apply for a car loan.

Banks use a slightly different credit score model when evaluating mortgage applicants. Below, we go over what you need to know about credit scores you’re looking to buy a home.

The scoring model used in mortgage applications

While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage:

FICO® Score 2 (Experian)
FICO® Score 5 (Equifax)
FICO® Score 4 (TransUnion)

As you can see, each of the three main credit bureaus (Equifax, Experian and TransUnion) use a slightly different version of the industry-specific FICO Score. That’s because FICO tweaks and tailors its scoring model to best predict the creditworthiness for different industries and bureaus. You’re still evaluated on the same core factors (payment history, credit use, credit mix and age of your accounts), but the categories are weighed a little bit differently.

The FICO 8 model is known for being more critical of high balances on revolving credit lines. Since revolving credit is less of a factor when it comes to mortgages, the FICO 2, 4 and 5 models, which put less emphasis on credit utilization, have proven to be reliable when evaluating good candidates for a mortgage.

Mortgage lenders pull all three reports, from all three bureaus, but they only use one when making their final decision.

“A bank will use all three bureaus,”--- “It’s called a tri-merge.”

If all three of your scores are the same, then their choice is simple. But what if your scores are different?

And if you are applying for a mortgage with another person, such as your spouse or partner, each applicant’s FICO 2, 4 and 5 scores are pulled. The bank identifies the median score for both parties, then uses the lowest of the final two.

Contact Joel Lobb for Expert Mortgage Advice

Joel Lobb is an experienced Mortgage Loan Officer , Inc. specializing in helping Kentucky homebuyers navigate credit and mortgage processes.

Contact Information:

• Text/Call: 502-905-3708
• Email: kentuckyloan@gmail.com
• Website: www.mylouisvillekentuckymortgage.com

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Disclaimer: The information provided is for educational purposes and does not guarantee approval or represent underwriting guidelines. Always consult with your lender for personalized advice.

If you'd like any adjustments or additional details, let me know!

NMLS 57916  | 

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, (www.nmlsconsumeraccess.org).