Kentucky Mortgage Loan Approval Checklist | Documents Needed for FHA, VA & USDA Loans

🏡 How to Get Approved for a Kentucky Mortgage Loan (2025 Guide)

Author: Joel Lobb, Mortgage Loan Officer NMLS 57916 | EVO Mortgage NMLS 1738461
Serving: Louisville • Lexington • Bowling Green • Owensboro • Northern Kentucky
Equal Housing Lender

✅ Step-by-Step: Getting Approved for a Mortgage in Kentucky

Getting approved for a Kentucky mortgage loan starts with one thing — having your paperwork ready.
Lenders use four key factors to determine your approval:

1. Income & Employment Stability
2. Assets & Down Payment Verification
3. Credit History & Score
4. Appraisal / Collateral Review

This guide is designed for FHA, VA, USDA, KHC, and Conventional loans and helps Kentucky homebuyers and refinancers prepare efficiently.

📋 Documents Required for All Kentucky Mortgage Applicants

• W-2 forms for the past 2 years
• Recent pay stubs covering 30 days of income
• Bank statements for checking/savings accounts (all pages, last 60–90 days)
• Asset statements for 401(k), IRA, or investment accounts
• Driver’s license and Social Security card
• Two-year residence history (landlord or mortgage company contact info)
• Purchase contract (if under contract)
• Earnest-money check copy or proof of cleared funds
• Employment history covering 24 months, including any gaps
• Funds for credit report & appraisal fees
• Proof of funds used for down payment and closing costs

Pro Tip: Keep every page — even the blank ones. Kentucky lenders must review complete statements for compliance.

🧾 If You’re Self-Employed or a 1099 Contractor

• Personal federal tax returns (all pages and schedules) — last 2 years
• Business returns for any entity where you own ≥ 25%
• Year-to-date profit & loss statement and balance sheet
• 1099 forms if applicable

🎖️ FHA, VA & USDA Loan-Specific Requirements in Kentucky

FHA Loans

• Copy of driver’s license + Social Security card
• Minimum 580 credit score for 3.5% down (10% down below 580)
• 2-year job history + consistent income documentation

VA Loans

• Certificate of Eligibility (COE)
• DD-214 (discharge paperwork)
• Nearest living relative information (required by VA)
• No down payment + no monthly PMI if qualified

USDA Rural Housing Loans

• Property must be eligible by county (use USDA map)
• Household income limits apply — varies by county and household size
• Zero down payment available if approved under USDA guidelines

💡 Common Mistakes That Delay Kentucky Loan Approvals

• Missing bank pages or statements
• Large unverified deposits without documentation
• Credit disputes or recent late payments
• Job changes without updated VOE (Verification of Employment)
• Unfiled tax returns or IRS payment plans not verified

🧠 Work With a Local Kentucky Mortgage Expert

Most loan delays come from incomplete files. Working with a local lender who understands Kentucky underwriting standards — FHA, VA, USDA, and KHC — can save weeks.

📞 Call or Text Joel Lobb at 502-905-3708
📧 Email: Kentuckyloan@gmail.com
🌐 Visit: www.mylouisvillekentuckymortgage.com

📍 Local Kentucky Loan Programs

• KHC $12,500 Down Payment Assistance
• Zero-Down USDA Loans for eligible counties
• VA Loans for qualified veterans and surviving spouses
• FHA Loans for credit scores 580+
• Conventional Loans with as little as 3% down

🎥 Watch: How to Get Approved for a Kentucky Mortgage Loan

Watch this short 10-minute walkthrough where Joel Lobb breaks down how Kentucky homebuyers can get pre-approved faster, what lenders look for, and how to avoid common mistakes.

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🎬 Subscribe to Joel Lobb on YouTube for Kentucky mortgage tips, FHA/VA/USDA updates, and credit-improvement strategies.
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❓Frequently Asked Questions (FAQ)

What’s the minimum credit score to get approved for a Kentucky mortgage?

FHA = 580 (3.5% down); VA & USDA typically 620+; Conventional 620+; KHC may allow lower with compensating factors.

Can I get approved if I’m self-employed?

Yes, with two years of filed returns showing consistent income and proof of business stability.

How long does approval take?

Pre-approval within 24 hours once documents are received; full loan approval in about 30 days depending on property type and program.

What’s the fastest way to get approved?

Submit all documents at once, avoid new credit inquiries, and respond quickly to lender requests.

© 2025 Joel Lobb | EVO Mortgage
NMLS ID 57916 | NMLS Company ID 1738461
Equal Housing Lender | This is not a commitment to lend. All loans subject to credit approval and property eligibility.

Ultimate Guide for Kentucky First-Time Homebuyers: Steps, Loan Programs & How to Apply

 

Introduction: How to Buy Your First Home in Kentucky

Are you a first-time homebuyer in Kentucky looking to purchase your dream home? Buying a house is one of the biggest financial decisions you'll ever make. Understanding the steps involved can help you feel confident throughout the process.

• In this guide, we'll cover:

•  How much house you can afford
•  Loan programs for first-time homebuyers in Kentucky
•  Credit score requirements
•  Down payment & closing costs
•  Mortgage pre-approval process
•  Required documents & how to apply

By the end of this article, you'll have a clear roadway to homeownership in Kentucky!

Step 1: Determine How Much House You Can Afford

One of the first steps to buying a home is understanding your budget. Mortgage lenders suggest you should consider a price range. It is recommended not to buy a home that exceeds 30% to 45% of your gross monthly income. For instance, if you earn $3000 gross a month, your maximum house payment should be about $1350 a month. This includes PITI.

Use a mortgage calculator to estimate your monthly payment, including property taxes, homeowners insurance, and mortgage insurance.

- Kentucky Mortgage Calculator

Kentucky Mortgage Calculator

Home Price ($): Down Payment ($): Interest Rate (%): Loan Term (years): Annual Property Taxes ($): Annual Homeowners Insurance ($): PMI Rate (%): Monthly HOA Fees ($):

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Step 2: Check Your Credit Score

Your credit score plays a crucial role in determining your mortgage eligibility and interest rate. The mortgage scores used by lenders are different than the ones usually seen for borrowers. Be aware of this.

Here’s how you can improve your score before applying

Step 2: Check Your Credit Score

Your credit score plays a crucial role in determining your mortgage eligibility and interest rate. Here’s how you can improve your score before applying:

✔️ Pay down credit card balances
✔️ Make all payments on time
✔️ Avoid applying for new credit cards or loans
✔️ Don’t make big purchases before getting approved
✔️ If possible, avoid changing jobs before closing on your home

Pull your own credit report from www.annualcreditreport.com to see what is on your credit report from Experian, Equifax, and Transunion. You will not be able to get your mortgage fico scores but you can see what creditors are reporting before you apply to correct any errors

The credit scores used by mortgage lenders are different than what the consumers see, so be aware of that.

We can pull your fico mortgage scores for free, no costs to you, as far as the application process. If you want to obtain your own mortgage fico scores

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)

FICO Scores used for mortgages

Credit Score Requirements for Kentucky First-Time Homebuyers

Step 3: Save for a Down Payment & Closing Costs

How Much Do You Need for a Down Payment?

💰 FHA Loan: 3.5% of the purchase price
💰 Conventional Loan: 3-20% (Varies)
💰 VA & USDA Loans and KHC Down payment Assistance Loans : No down payment required

Other Expenses to Consider

1. Earnest Money Deposit: Shows sellers you’re serious. This is known as a good faith deposit. Typically, it's $500 at the minimum. However, more serious buyers show a bigger commitment by putting down $1000 or more.
2. Closing Costs: Typically 2-5% of the loan amount
3. Home Inspection Costs: $300-$500
4. Appraisal Costs: $550 to $700 range

Step 4: Get Pre-Approved for a Mortgage in Kentucky

🔹 What is Mortgage Pre-Approval?

Being pre-approved means a lender has reviewed your financial information and determined how much you can borrow. This makes you a stronger buyer in the eyes of sellers.

✅ To Get Pre-Approved, You’ll Need the following documents plus more:

• W2’s from the past 2 years for 2023 and 2024
• Last months of pay stubs
• Bank statements (Last 2 months)
• 2 years of tax returns and all schedules
• Divorce decree (if applicable)
• Additional income documents for other income possible
• Looking for stability in the income. Waited over the last two years and the next 3 years.
• Two forms of ID> Driver's License and card

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Step 5: Choose the Right Mortgage Loan in Kentucky

Types of Mortgage Loans Available

Loan Type	Who Qualifies?	Down Payment	Upfront Mortgage Insurance	Monthly Mortgage Insurance	Min. Credit Score
VA Loan	Veterans & eligible service members	None	None	None	580
USDA Loan	Rural homebuyers	None	2% of loan amount (can roll in)	Required	640
FHA Loan	Buyers meeting income/credit limits	3.5%	1.75% of loan amount	Required	580-640
203K Loan	Buyers renovating a home	3.5%	1.75% of loan amount	Required	580-640
Conventional 97	First-time homebuyers	3%	None	Required	620
Select Smart Plus	Buyers meeting lender’s requirements	3-20%	None	Required	620

Step 6: Submit Your Mortgage Application

• Once you’ve chosen the right loan and been pre-approved, you’ll submit a formal mortgage application with your lender.

• The Lender Will Verify:
  ✅ Your credit score and credit bureau-Three scores are pulled from Experian, Equifax and Experian
  ✅ Income & employment history for last two years
  ✅ Bank statements for last two months & tax returns for last two years
  ✅ Property appraisal
• Title search

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Step 7: Close on Your New Home! 🎉

Your loan is approved. All final paperwork is completed. You’ll attend the closing meeting to sign documents and get the keys to your new home!

🏡 Congratulations! You’re now a Kentucky homeowner!

Ready to Buy a Home in Kentucky? Get Expert Help Today!

Buying your first home is a big step, but you don’t have to do it alone. Work with a trusted mortgage broker like Joel Lobb to get expert guidance, personalized loan options, and fast approvals.

📩 Contact Joel Lobb Today for a Free Consultation!

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

🔹 Get Pre-Approved Now & Start House Hunting!

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Final Thoughts

If you're a first-time homebuyer in Kentucky, understanding the steps involved is crucial. Being aware of the loan programs available will help you make a smart financial decision.

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