Kentucky Mortgage Lender

Understanding the Four Main Mortgage Loan Programs in Kentucky When buying a home in Kentucky, your mortgage will typically fall under one of four major loan programs: FHA, VA, USDA, or Conventional (Fannie Mae/Freddie Mac) . Each program offers unique benefits depending on your credit, income, military status, and location. Below is a streamlined breakdown to help you determine the best fit for your situation. Conventional Loan Minimum down payment: 3%–5% Minimum credit score: 620 (680+ for best pricing) Mortgage insurance can be removed at 80% equity Best for: buyers with strong credit & stable income Bankruptcy wait: 4–7 years Foreclosure wait: 7 years Closing costs can be lender-paid (higher rate) Kentucky USDA Rural Housing Loan 100% financing (0% down) Credit score: 640+ for automated GUS approval Mortgage insurance: .35% monthly, 1% upfront Manual underwriting ratio caps: 29% / 41% Property must be U...

Kentucky VA Loan Guidelines: Collections, Charge-Offs, Judgments and Liens Many Kentucky veterans are worried that old collections or charge-offs will automatically stop a VA home loan approval. In most cases, that is not true. The VA underwriter looks at the whole credit picture, not just one negative item, and wants to know whether you are a satisfactory long-term credit risk. This guide explains how Kentucky VA lenders typically treat collection accounts, charge-offs, judgments and liens when you apply for a VA mortgage. VA credit guidelines can be flexible, but every file is different. The best way to know where you stand is to have your full credit report reviewed by a VA-approved lender who understands Kentucky guidelines. How VA Views Collection Accounts VA does not automatically require every collection to be paid before you can close on a home. Instead, the underwriter reviews the type, age, size and pattern of the collection accounts and whethe...

FHA CHANGES TO HANDLING OF COLLECTIONS AND DISPUTED ACCOUNTS FHA recently released Mortgagee Letters 2013-24 and 2013-25, to amend guidance on collections and disputed accounts and to clarify guidance on judgments. These changes will become effective for all case numbers assigned on or after October 15, 2013. This will apply to all FHA programs, with the exception of non-credit qualifying streamline refinances and Home Equity Conversion Mortgages . The changes are found below. Should you have any questions, please contact your Account Manager. 1.            Credit Analysis of Collections and Judgments .  Collections and judgments may indicate a borrower's disregard for credit obligations and must be considered in the creditworthiness analysis. The guidance below applies to loans with collection accounts and all judgments. Medical collections and charge off accounts are excluded from this guidance. Ap...

Medical Collections, Credit Scores, and Getting Approved for a Mortgage in Kentucky If you are shopping for a home loan in Kentucky and have medical collections on your credit report, you are not alone. A recent federal court decision reversed a rule that would have kept medical debt off credit reports and out of credit decisions. As a result, medical collections can now show up again on your credit report and may impact your credit score and mortgage approval. This guide explains how the new medical debt landscape affects Kentucky FHA, VA, USDA, KHC, and conventional mortgage borrowers, and what you can do before you apply. What Changed: Federal Medical Debt Protections Rolled Back Earlier in 2025, the Consumer Financial Protection Bureau (CFPB) finalized a rule that would have: Kept medical debt off credit reports Excluded medical debt from credit scores Prevented lenders from using medical collections in...

Got Disputes on Your Credit Report? Read This Before Applying for an FHA Loan! FHA Loan Rules on Disputed Accounts (Updated 2026) If you’re applying for an FHA loan, but your credit report shows disputed accounts , you need to understand how this can affect your approval. In this video, Joel Lobb — licensed Kentucky Loan Officer (NMLS #57916) — explains the FHA’s updated rules for handling disputed accounts, what counts as “significant derogatory,” and what you can do to improve your chances of approval. 💡 You’ll learn: What FHA considers a “disputed account” When disputed accounts must be resolved or removed The $1,000 threshold rule for disputed derogatory accounts Exceptions for medical collections and identity theft How to fix credit report disputes before underwriting FHA Loans & Disputed Accounts: What You Must Know to Avoid Denial Updated: 2026 | By Joel Lobb, Kentucky Mortgage Loan Officer 📖 Reading Ti...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Disputes on Credit Report and Kentucky Mortgage Lo... :  Applying for a Kentucky Mortgage Soon? Don't Dispute that Account       Sounds counterintuitive, I'm sure ...       But until you...  Got Dispute Comments on Your Credit Report?  If you've disputed any accounts in the past, chances are your credit report still has dispute comments listed. That might seem harmless—but if you're applying for a mortgage, those comments could delay or even block your loan approval.  Here’s what you can do: Call each credit bureau (numbers on the graphic). Ask to remove any dispute comments. Verify they’re gone by pulling a fresh consumer credit report. Follow up within 72 hours to confirm it’s been done. Pro Tip: Do this before your lender pulls your credit. It could save time, stress, and keep your home loan on track. If you’re not sure...

 KENTUCKY FHA GUIDELINES FOR CONSUEMR CREDIT COUNSELING (J)   Credit Counseling/Payment Plan  (APPROVE/ELIGIBLE) Participatin g in a consumer credit counseling  program does not require a downgrade to a manual underwriting.No explanation or other documentation is needed.   (K)   Credit Counseling/Payment Plan  (MANUAL UW)   Participating in a consumer credit counseling  program does not disqualify a Borrower from obtaining an FHA-insured Mortgage, provided the Mortgagee documents that: one year of the payout period has elapsed under the plan; the Borrower’s payment performance has been satisfactory and all required payments have been made on time; and the Borrower has received written permission from the counseling agency to enter into the mortgage transaction.     KENTUCKY RURAL HOUSING USDA GUIDELINES FOR CONSUMER CREDIT COUNSELING  CONSUMER CREDIT COUNSELING - DEBT MANAGEMENT...