How to Qualify For a Kentucky FHA Mortgage Loan

General Kentucky FHA loan requirements include:

• The loan must be for a property used for your primary residence.
• The property must be appraised by an FHA-approved appraiser.
• The property must be safe, sound and secure, in compliance with minimum property standards as defined by the U.S. Department of Housing and Urban Development, or HUD.
• You must have a valid Social Security number and be a legal resident of the U.S.
• You must have a minimum credit score of 580 with a down payment of at least 3.5 percent, or a minimum credit score of 500 with a down payment of at least 10 percent.
• You may not have delinquent federal debt or judgments, or debt associated with past FHA loans.
• You must have steady employment history.
• You must make a down payment of at least 3.5 percent of the purchase price. If the down payment was gifted by a family member, documentation is required.
• You must have a DTI ratio that does not exceed limits.
• Any judgments or collections on the credit report must be resolved or satisfactorily explained.
• Any required waiting period has passed, as follows:

Event	Waiting period	Waiting period with extenuating circumstances (nonrecurring events beyond your control that result in sudden, significant, prolonged reduction in income or a catastrophic increase in financial obligations)
Chapter 7 or 11 bankruptcy	Four years	Two years
Chapter 13 bankruptcy	Two years from discharge, or four years from dismissal	Two years
Multiple bankruptcies	Five years if more than one filing in last seven years. Most recent bankruptcy must have been caused by extenuating circumstances.	Three years from most recent discharge or dismissal
Foreclosure	Seven years	Three years, with additional requirements after three years up to seven years: 90 percent maximum loan-to-value purchase, principal residence, limited cash-out refinance
Deed-in-lieu of foreclosure, preforeclosure sale (short-sale), or charge-off of mortgage account	Four years	Two years

Debt-to-Income Ratio Limits for Kentucky FHA Loans

Two DTI ratio figures are calculated when considering an Kentucky FHA mortgage. The front-end DTI ratio is your total monthly housing expense, which includes the mortgage principal and interest, mortgage insurance, homeowners insurance, property taxes and applicable homeowners association fees, divided by your total monthly income. The back-end DTI ratio is your total monthly debt obligation, including housing, minimum credit card payments, auto loans, student loans and any other required monthly debt payment, divided by your total monthly income.

Standard FHA front- and back-end DTI limits are 31 percent and 43 percent, respectively. If you earn $3,500 per month, your front-end DTI cannot exceed $1,085 and the sum of all your monthly debt obligations cannot exceed $1,505.
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Applications for Kentucky FHA borrowers with lower salaries and higher DTIs are manually underwritten. Manual underwriting means that your lender assigns a person to review your loan application and documents, versus running your information through an automated underwriting system. Manually underwritten FHA loans allow for front- and back-end DTI ratios of up to 40 percent and 50 percent, respectively. To qualify for these higher DTI limits, you will need to meet other requirements.

Joel Lobb 

 Email - kentuckyloan@gmail.com 

 Call/Text - 502-905-3708

 www.mylouisvillekentuckymortgage.com
 911 Barret Ave., Louisville, KY 40204

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

Kentucky Mortgage Loan Expert For Kentucky FHA, VA, USDA, Fannie Mae and KHC Down payment Assistance Loans

2025 Kentucky FHA Loan Requirements & Limits

2025 Kentucky FHA Loan Requirements & Loan Limits

Updated for 2025! FHA loan limits are higher across Kentucky. The new single-family limit is $524,225—an increase of $25,968 from last year. That means you can buy more home with just 3.5% down!

FHA Loan Requirements in Kentucky – 2025 Snapshot

• Minimum Credit Score: 580+ (3.5% down); 500–579 (10% down)
• Minimum Down Payment: 3.5% (with 580+ score)
• Debt-to-Income (DTI) Ratio: Typically up to 57% (with strong credit)
• Bankruptcy Wait Period: 2 years from Chapter 7 discharge, 1 year for Chapter 13 (with on-time payments)
• Foreclosure Wait Period: 3 years
• Loan Limits: $524,225 (1-unit); $671,200 (2-unit); $811,275 (3-unit); $1,008,300 (4-unit)
• Property Type: Must be your primary residence
• Loan Insurance: Upfront (UFMIP) + monthly MIP required

Kentucky FHA Loan Requirements for income, credit, income and loan limits

2025 FHA Loan Limits by County in Kentucky

County	1-Unit	2-Unit	3-Unit	4-Unit
Adair	$524,225	$671,200	$811,275	$1,008,300
Allen	$524,225	$671,200	$811,275	$1,008,300
Boone	$603,750	$772,900	$934,800	$1,161,050
Campbell	$603,750	$772,900	$934,800	$1,161,050
Gallatin	$603,750	$772,900	$934,800	$1,161,050
Kenton	$603,750	$772,900	$934,800	$1,161,050
Woodford	$524,225	$671,200	$811,275	$1,008,300

See FHA limits for all counties on HUD.gov |

What does this mean for you?
You can now purchase a home in Kentucky with as little as 3.5% down—even up to $524,225 for a single-family property! Multi-unit buyers benefit from higher limits, too.

Kentucky FHA Loan FAQs

Most lenders require a 580 score for 3.5% down. Some allow 500–579 with 10% down.

The minimum down payment is 3.5% if your credit score is 580 or higher with scores between 500 and 579 FHA loans in Kentucky require a down payment of 10%. This does not mean you're automatically apporved if yo uhave these scores.

You typically must wait 2 years after Chapter 7 bankruptcy, 1 year after Chapter 13 (with on-time payments), and 3 years after foreclosure or short sale. Must have clear Cavirs too.

Most counties: $524,225 (single-family). Cincinnati metro counties: $603,750 (Boone, Campbell, Gallatin, Kenton).

FHA generally allows DTI up to 45–57%, depending on credit and other factors. There are two debt ratios, front end and backend with the max front end ratio being 45% and the max backend ratio of 56.99% for an automated approval through Desktop Underwriting or Loan Prospector, typcially called aus

What does this mean for you?
You can now purchase a home in Kentucky with as little as 3.5% down—even up to $524,225 for a single-family property! Multi-unit buyers benefit from higher limits, too.

Kentucky FHA Loan FAQs

Most lenders require a 580 score for 3.5% down. Some allow 500–579 with 10% down.

The minimum down payment is 3.5% if your credit score is 580 or higher.

CAIVRS stands for Credit Alert Interactive Voice Response System. It’s a federal database lenders use to check if you have any unpaid federal debts or defaulted government loans. A clear CAIVRS is required for FHA approval.

Generally, you need a two-year work history in the same field or line of work. Recent grads or job changes are often acceptable if you can document stability and likelihood of continued employment.

Yes, FHA loans are available for manufactured and double-wide homes if the home is permanently affixed to owned land and meets HUD standards. Mobile homes in parks (leased land) are not eligible.

Yes, Kentucky offers down payment assistance programs that can cover your 3.5% down and closing costs, allowing some buyers to purchase with little to no out-of-pocket funds. Program and eligibility rules apply.

FHA loans require upfront (UFMIP) and monthly mortgage insurance premiums (MIP), regardless of down payment. Unlike conventional PMI, FHA mortgage insurance stays for the life of the loan if you put less than 10% down.

Yes, you can get another FHA loan as long as you no longer have the previous FHA loan on a primary residence. Exceptions exist if relocating for work or proven need.

Generally, you can only have one FHA loan at a time. Rare exceptions exist for relocations, job changes, or family size increases, but you must document the need and get lender approval.

Collections are reviewed case by case. Medical collections are usually ignored. Non-medical collections over $2,000 may need to be paid or included in your debt ratio. Always disclose all debts for a transparent pre-approval.

A past car repossession does not automatically disqualify you. Lenders will want to see re-established credit and an explanation for the repo. If it’s recent or unsatisfied, you may need to resolve the balance or wait a year or more.

FHA requires that 0.5% of the outstanding student loan balance (if no payment is reported) be counted in your DTI ratio, even if payments are deferred. Document your actual payment for the most accurate approval outcome.

Most lenders want at least one credit score, but FHA technically allows for “no score” loans using manual underwriting, with strict compensating factors like low debt, strong job history, and rent verification.

Yes, but only a small number of lenders offer this. You’ll need to show alternative credit (rent, utilities, insurance, etc.), and manual underwriting guidelines apply. Expect stricter review and possibly higher down payment requirements.

Typical closing times are 30–45 days in Kentucky, but can be faster if your documents are ready and there are no appraisal or title delays. Down payment assistance can add a few days to the process.

Ready to Buy with 3.5% Down?

Start your FHA pre-approval today or ask a question—no obligation, fast response.

Contact Joel Lobb, Kentucky FHA Expert
Call/Text: (502) 905-3708

About Your Kentucky FHA Expert
Joel Lobb, Senior Loan Officer – EVO Mortgage
NMLS #57916 | Company NMLS #1738461
Call/Text: (502) 905-3708 | kentuckyloan@gmail.com
Based in Louisville. Over 1,300 Kentucky families served since 2002.
Equal Housing Lender. www.nmlsconsumeraccess.org

Last updated: June 2025. For the latest limits, always check HUD's lookup tool.