Showing posts with label KHC. Show all posts
Showing posts with label KHC. Show all posts

2026 Kentucky Homebuyers Guide: Getting Approved for a Mortgage Loan in Kentucky

If you’re a Kentucky homebuyer, this updated 2026 guide walks you through the mortgage approval process from start to finish.

Whether you are buying your first home or your next home, this resource covers FHA, VA, USDA, KHC loans, down payment assistance, and available grants.

You’ll also find clear guidance on credit scores, income limits, debt-to-income ratios, work history, appraisals, inspections, bankruptcy, foreclosure rules, and realistic closing timelines.

Zero Down Payment Options for Kentucky Homebuyers in 2026

Kentucky continues to offer multiple paths to homeownership with little to no money down:

Kentucky Housing Corporation (KHC) loans

FHA loans paired with down payment assistance

VA loans for eligible veterans and active-duty service members

USDA Rural Housing loans

Federal Home Loan Bank Welcome Home Grant (when available)

Each program has different eligibility rules. The sections below break them down clearly.

Zero Down Payment Options for Kentucky Homebuyers

Kentucky FHA Loan With KHC Down Payment Assistance

Kentucky Housing Corporation continues to offer FHA-insured loans paired with down payment assistance for qualified buyers.

Credit score: Typically 620 minimum for FHA, 660 for conventional options through KHC

Down payment: 3.5 percent (can be fully or partially offset with KHC DAP)

Income limits: Vary by county and household size See current KHC income and purchase price limits

Debt-to-income ratio: Commonly up to 50 percent depending on findings

Work history: Two years of stable, documented income

KHC Down Payment Assistance (DAP)

Most programs offer up to $12,500, repayable over 15 years. Funds may be used for down payment, closing costs, prepaid taxes, insurance, and interim interest. Program terms are subject to annual updates.

Kentucky FHA Loan With KHC Down Payment Assistance


FHA Loans in Kentucky – 2026 Guidelines

FHA loans remain one of the most flexible mortgage options in Kentucky, especially for buyers with limited savings or lower credit scores.

Credit score options:

580 and higher with 3.5 percent down

500 to 579 with 10 percent down

Debt-to-income ratio: Frequently approved up to 56.99 percent with strong compensating factors

Work history: Two years of consistent income; job changes are acceptable if income is stable

Bankruptcy and foreclosure waiting periods:

Chapter 7 bankruptcy: Two years

Chapter 13 bankruptcy: Eligible after 12 months of on-time payments with court approval

Foreclosure: Three years

Kentucky FHA Loan Limits for 2026

FHA loan limits increased again for 2026 due to rising home values.

One-unit: $541,287

Two-unit: $693,750

Three-unit: $838,450

Four-unit: $1,041,750

Kentucky FHA Loan Guidelines

Kentucky VA Loans for Veterans and Active Duty

VA loans remain one of the strongest mortgage benefits available, offering zero down payment and no monthly mortgage insurance.

Certificate of Eligibility (COE) is required. Request your COE here

Credit score: No official minimum, most lenders prefer 580–620

Income: Must be stable and sufficient

Work history: Two years or military service continuity; post-service employment should align with MOS when applicable

Debt-to-income ratio: Flexible, subject to residual income requirements

Bankruptcy or foreclosure: Two-year waiting period

VA Residual Income Chart

USDA Rural Housing Loans in Kentucky

USDA loans provide 100 percent financing for eligible rural properties across much of Kentucky.

Credit score: 640 for automated approval through GUS; manual underwriting available below 640

Income limits for 2026:👇👇

Check Kentucky USDA property eligibility

Debt-to-income ratio: 32 percent front-end, 45 percent back-end

Work history: Two years of stable income

USDA Loan Benefits

Kentucky Down Payment Assistance and Grants – 2026 Update

The Welcome Home Grant through the Federal Home Loan Bank of Cincinnati is expected to return in March 2026. Exact grant amounts, income limits, and funding caps are announced shortly before release.

Historically, grants have offered up to $25,000 for eligible veterans and up to $20,000 for other qualified buyers. Funds are limited and typically exhausted quickly.

Kentucky Welcome Home Grant

Ready to Get Started

Buying a home in Kentucky does not have to be confusing. With the right loan program and guidance, FHA, VA, USDA, and KHC options can make homeownership achievable in 2026.

For personalized guidance, contact:

Joel Lobb
Mortgage Loan Officer
Phone or Text: 502-905-3708
Email: kentuckyloan@gmail.com
Website: https://www.mylouisvillekentuckymortgage.com

EVO Mortgage
Company NMLS 1738461
Individual NMLS 57916


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Kentucky No Money Down Home Loans

Kentucky Mortgage Loans with no down payment - Joel Lobb

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.

Ready to Get Started?

APPLY NOW – FREE CREDIT CHECK & SAME-DAY ANSWER

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.
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Kentucky Housing Corporation (KHC) Down Payment Assistance.

Kentucky Down payment assistance loans are available up to $10,000 for Mortgage



KHC is used for mostly applicants in Kentucky that don't have access to money for a down payment on their home. 



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KENTUCKY HOUSING QUALIFYING CRITERIA FOR DOWN PAYMENT ASSISTANCE

$10,000 available thru KHC for down payment assistance KY



  • What is Kentucky Housing?


    Kentucky Housing is a trusted state agency in Frankfort, KY that works with local lenders to ensure all Kentucky home buyers have access to safe and affordable housing with access to down payment assistance help and counseling if needed to buy a home.
     

    Do I need to be a first-time home buyer to do a KHC loan?


    No, you do not have to be a first time home buyer with KHC loans.


    How much down payment assistance can I get to buy a home in Kentucky?




    • Can I use the $10,000 for repairs to the home or buy stuff for the home?

      No you cannot! The  down payment assistance can be used for down payment, closing costs and prepaids.

      How long can I lock a KHC Loan?

      You can lock a KHC Loan for 45 days

      How long does it take to close a KHC loan?

      It takes about 30 to 45 days typically to close a KHC loan.

      Can I just get a down payment assistance loan from Kentucky Housing?


      In order to use the down payment assistance programs from KHC, you must do the first mortgage loan with them too. Additional eligibility requirements may apply, including income limits.


      What if I have bad credit and I get a KHC loan?


      Kentucky Housing loans require a minimum 620 credit score. The usually follow agency guidelines for credit, bankruptcy, foreclosure, collections, etc depending on it is FHA, VA, USDA, Fannie Mae.


      Can I build a home with a KHC loan?


      Kentucky Housing does not provide temporary construction loans, but we can provide the permanent financing for a new construction property with one of your loan programs including FHA, VA, USDA, or Fannie Mae.

      How much can the house cost for a KHC Loan?

      Our current purchase price limits are $346,644 in the state of Kentucky Consult your lender to determine the amount you are approved to borrow in regards to agency debt to income ratios requirements. KHC typically will not go above 40% for the front-end housing ratio, or over 50% for the total debt to income ratio. They will make exceptions sometimes.


      What is the required down payment for a KHC Loan?


      Required down payments range from 0-3.5% depending on the underlying loan product (Conventional, FHA, RD, VA).


      Is a co-signer allowed on a KHC Loan?


      KHC does not allow for co-signers to qualify for a mortgage loan


      Can I finance improvements or repairs?


      KHC does not offer rehab loans or 203k loans, or Renovation loans.


      Are there income limits based on gross or net income for a KHC?


      Gross household income limits for total household income.


      Can I finance a manufactured or mobile home with KHC?

      Manufactured and mobile homes are eligible under some mortgage products for KHC Loans. Homes must be double-wide, permanently attached to a foundation, and taxed as real estate (not personal property). Consult your lender for more information.


    Kentucky Down payment assistance loans are available up to $10,0000 for Mortgage




    • Kentucky Down Payment Assistance



      KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. We offer a special loan program to help with those. Your KHC-approved lender can help you apply.

    Regular DAP

      • Purchase price up to $349,525 with Secondary Market.
      • Assistance in the form of a loan up to $10,000 in $100 increments.
      • Repayable over a 10-year term at 3.75 percent.
      • Available to all KHC first-mortgage loan recipients.

    ​​More About Down Payment and Closing Costs

      • No liquid asset review and no limit on borrower reserves.
      • Specific credit underwriting standards may apply to down payment programs.​
      • .​

    SECONDARY MARKET FUNDING SOURCE

    • Conventional Preferred Program
      Conventional Preferred Plus 80
      FHA
      VA
      RH​​S

      KENTUCKY HOUSING CORPORATION
      2021 SECONDARY MARKET
      GROSS ANNUAL APPLICANT’S INCOME LIMITATIONS
      Effective May 1, 2021

      Secondary Market Purchase Price Limit — $346,644

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    Kentucky Mortgage Forbearance Guidelines

    Kentucky First Time Home Buyer Programs For Home Mortgage Loans: Kentucky Mortgage Forbearance Guidelines for Fanni...: 


    Conventional Mortgage Loans by Fannie Mae



    Mortgage credit history for any mortgage which the borrower is obligated as borrower, co-borrower, or co-signer may be
    considered acceptable if it meets one of the following:
     The borrower has made all payments due on time, prior to subject loan Note date, even though the loan was in
    forbearance, or
     The borrower has not made one or more payments due, and the late payments or forbearance has been resolved
    per one of these acceptable resolution plans:
    Resolution Plans* Eligibility Requirements
    Reinstatement ▪ Any missed payments must be made

    ▪ Funds to reinstate after application must be documented from eligible source
    ▪ Funds from the current transaction may not be used to reinstate mortgage
    Repayment Plan ▪ Must have made 3 timely** payments under the repayment plan, or

    ▪ Repayment plan has been completed
    ▪ Funds from the current transaction may satisfy the existing mortgage in full
    Payment Deferral ▪ Must have made 3 timely** payments after executing the deferral agreement
    ▪ Funds from the current transaction may satisfy the existing mortgage in full

    Modification ▪ Must have made 3 timely** payments under trial modification

    ▪ Funds from the current transaction may satisfy the existing mortgage in full
    Any Other Loss Mitigation Option ▪ Must have completed successfully or made a minimum of 3 timely payments
    ▪ Funds from the current transaction may satisfy the existing mortgage in full
    *If loan was in forbearance, provide documentation from servicer showing the exit from forbearance into one of the
    acceptable resolution plans.
    ** Payments cannot be made in advance to meet the 3 required payments.
     For purposes of determining acceptable mortgage payment history, missed payments under a COVID-19 forbearance
    are not considered late payments.
     The above guidance does not apply to Freddie Mac Enhanced Refinance or Fannie Mae High LTV Refinance
    transactions.





    VA ELIGIBILITY


     Borrowers must provide a Letter of Explanation (LOE) stating the circumstances behind the forbearance.
    Documentation will be required to verify the items listed in the LOE have been resolved.
     If the forbearance was on a non-subject property, the forbearance must be resolved, and new payment (if
    applicable) must be included in the DTI.
     A Veteran who was granted a forbearance and continues to make payments as agreed under the terms of original
    note is not considered delinquent or late and will be treated as if not in forbearance status, provided that the
    forbearance plan is terminated prior to closing.


    Cash-Out Refinances


     Refinance of mortgages that are in a current forbearance status, where mortgage payments are not being made,
    including mortgages under the CARES Act forbearance protection program, are not eligible. The forbearance plan
    must be completed/terminated prior to closing.
     Borrower in forbearance with missed payments- Borrower must have made 6 consecutive months’ timely payments
    post-forbearance, regardless of method of resolution of the forbearance.
     Missed payments due to COVID-19 forbearance cannot count toward seasoning. Borrower must have made six
    consecutive monthly payments prior to the CARES Act forbearance or six consecutive payments will be required post
    forbearance. In addition, loans that have been modified must meet seasoning requirements based on the modified
    note first payment date. The new note date must be on or after the later of: The date that is 210 days after the date
    on which the first modified monthly payment was due on the mortgage being refinanced, and the date on which 6
    modified payments have been made on the mortgage being refinanced.

    IRRRL Refinances

     Borrowers must be current at time of application (any skipped payments under a COVID-19 forbearance have since
    been made).
     Borrower in forbearance with no missed payments- standard underwriting applies.
     Borrower in forbearance with missed payments- Borrower must have made 6 consecutive months’ timely payments
    post-forbearance.
     Loans must still meet loan seasoning, fee recoupment, discount points, and net tangible benefit requirements.
     Missed payments due to COVID-19 forbearance cannot count toward seasoning. Borrower must have made six
    consecutive monthly payments prior to the CARES Act forbearance or will need to make six consecutive payments
    post forbearance. In addition, loans that have been modified must meet seasoning requirements based on the
    modified note first payment date. The new note date must be on or after the later of: The date that is 210 days after
    the date on which the first modified monthly payment was due on the mortgage being refinanced, and the date on
    which 6 modified payments have been made on the mortgage being refinanced.



    FHA ELIGIBILITY


    *NOTE: FHA Guidance is permanent, not temporary, and applies where a Forbearance Plan was granted due to COVID-19, Presidentially Declared major
    disaster or other hardship. This new guidance has been included in the updated 4000.1 Handbook.
    Payment
    History
    Documentation

    When any mortgage reflects payments under a Modification or Forbearance Plan within 12 months prior to case number
    assignment, obtain:
     Copy of Modification or Forbearance Plan* and
     Evidence the payment amount and the date of payments during the agreement
    * A copy of Forbearance Plan due to the COVID-19 National Emergency is not required. Must be able to determine the reason for
    forbearance.


    Borrowers that are or were in Forbearance


    Maximum base loan amount for a Streamline of an owner-occupied primary residence and HUD-approved second home is
    the lesser of:
     The outstanding principal balance of the existing mortgage (including suspended payments from forbearance) as of
    the month prior to mortgage disbursement; plus:
    o Interest due on the existing mortgage
    o Late charges and escrow shortages
    o MIP due on existing mortgage; or
     The original principal balance of the existing mortgage (including financed UFMIP)
     Less any refund of UFMIP

    New FHA Insured Mortgage Eligibility


     Any active forbearance plan must be terminated.
     Borrowers granted forbearance but who continued to make all payments as agreed under the terms of original Note
    are not considered delinquent. No additional payment seasoning post forbearance required.
     Borrowers granted forbearance but who did not continue to make payments require additional mortgage payment
    seasoning post-forbearance that document satisfactory, consecutive monthly payments. See chart below for details:
    Transaction Additional Requirements
    Purchase Must make three consecutive payments* post-forbearance or

    ▪ If home sold prior to making three payments, must be manually underwritten

    Cash-Out Refinance Must make 12 consecutive payments* post-forbearance

    GNMA Seasoning: Loans that have been modified must meet seasoning
    requirements based on the modified note first payment date.



    No Cash Out Refinance Must make three consecutive payments* post-forbearance (six payments if

    mortgage was modified after forbearance)

    Simple Refinance Must make three consecutive payments* post-forbearance
    *NOTE: The consecutive payments must be documented on the credit report and read by AUS to follow AUS approval.
    Streamline Refinance  Missed payments under forbearance do not count toward mortgage

    seasoning requirements
     If mortgage modified after forbearance, six payments under
    modification required.
    Non-Credit Qualifying
     At time of case number assignment, borrower has made three post
    forbearance payments.
    Credit Qualifying
     At time of case number assignment, borrower is still in mortgage
    payment forbearance or has made less than three monthly payments,
    and
     Has made all mortgage payments due within the month due for the six
    months prior to forbearance
    ***ALL Streamlines: GNMA Seasoning: Loans that have been modified must
    meet seasoning requirements based on the modified note first payment date.

    References FHA Mortgagee Letter 2020-30:


    USDA ELIGIBILITY




     For each open mortgage, confirm the forbearance status and payment history.
     Borrowers who have a current mortgage that was placed in COVID-19 forbearance, but continued to make all
    payments as scheduled, are not subject to additional seasoning.
     Purchases: Borrowers who missed any payments as allowed under the forbearance plan must have resumed
    repayment of their mortgage loan for a period of at least 3 months prior to applying for a new loan.
     Refinances: the loan must have closed at least 12 months prior to the request to refinance, borrower must have
    resumed making payments for a period of at least 3 months and have a total 180-day period of satisfactory
    payments, excluding the time the loan was in forbearance.




    LOANS MADE TO BORROWERS POST-FORBEARANCE


    The guidance herein is based on Agency and Investor eligibility. The below is a summary and not all-inclusive of Agency announcements. For full

    Agency guidance see the Resources section under each program section below.


    IN ALL CASES THE FOLLOWING REQUIREMENTS APPLY:


     BORROWER MAY NOT BE IN FORBEARANCE ON THE SUBJECT PROPERTY MORTGAGE OR ANY OTHER NON-SUBJECT PROPERTY
    MORTGAGES AT THE TIME OF LOAN CLOSING.
     Explanation from Borrower(s) for forbearance reason and how any hardship has been overcome is required. If borrower faced hardship,
    documentation supporting resolution is required. (e.g. borrower was furloughed for a time and is now back to work and employer
    documentation supports).
     Payment history required for most recent 12-months to see payment made dates to determine if borrower skipped any payments.
     Documentation from servicer that forbearance has ended.
     Asset sourcing to document funds for any lump-sum payments made to reinstate/bring mortgage current- 2 months consecutive
    statements required.
     If borrower entered into modification/work out plan rather than reinstating the forbearance, a copy of plan must be obtained. See
    applicable Agency guidance for eligibility in this case.


    Joel Lobb
    Mortgage Loan Officer
    Individual NMLS ID #57916

    American Mortgage Solutions, Inc.

    Text/call:      502-905-3708
    fax:            502-327-9119
    email:              kentuckyloan@gmail.com

     


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    Kentucky Mortgage Down Payment Requirements

     If you’re a Kentucky  first-time homebuyer looking for low down payment mortgage options, several may be available to you. In fact, many of these options are available even if you aren’t a Kentucky first-time homebuyer.

    Low down payment mortgage options and requirements for Kentucky Homebuyers:

    Down payment mortgage options and requirements for Kentucky Homebuyers
    Down payment mortgage options and requirements for Kentucky Homebuyers




    --

    Joel Lobb
    Mortgage Loan Officer
    Individual NMLS ID #57916

    American Mortgage Solutions, Inc.

    Text/call:      502-905-3708
    fax:            502-327-9119
    email:              kentuckyloan@gmail.com

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