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π 10 Mortgage Facts
Every Kentucky Homebuyer Needs to Know
I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
If you’re buying a home in Kentucky, understanding how mortgages work can give you a real edge. Whether you’re a first-time buyer or a repeat homeowner, these 10 insider facts can save you money, stress, and time during the mortgage process.π
Mortgage rates move up and down throughout the day, just like the stock market. The rate you see in the morning might not be available in the afternoon.
π Pro Tip: If you’ve found your dream home and your loan officer quotes you a solid rate, consider locking it in immediately before market shifts erase your savings.
Not all lenders price their loans the same. Rates, origination fees, discount points, and closing costs can vary widely.
π Best Practice: Get at least three loan estimates to compare side-by-side. Don’t just shop rate — compare total cost.
It’s common for lenders to sell your loan to another bank or servicer. This helps lenders free up capital to issue more loans.
π What to Watch: Always read your mail and verify who’s collecting your payment. The terms of your loan don’t change when it’s sold.
Lenders pull three credit scores — one each from Experian, Equifax, and TransUnion. Your middle score determines your qualification and rate.
π Important: Free credit scores from apps or websites use different models and may not match what mortgage lenders see.
You can refinance whenever you like, but it only makes sense if it benefits your long-term financial goals.
π Ask Yourself: Are you lowering your payment, shortening your term, or pulling cash out for home improvements? If the math works, refinance. If not, wait.
A past foreclosure doesn’t disqualify you forever. Each loan type has its own waiting period:
FHA: 3 years
VA: 2 years
Conventional: 7 years
π Exception: You may qualify sooner if you can document an uncontrollable hardship (job loss, major illness, etc.).
High credit scores don’t just open more doors — they get you better pricing.
π Action Step: Keep your balances below 30% of your limits, pay on time, and avoid new credit inquiries before applying. The stronger your credit, the more leverage you have to negotiate closing costs.
Your interest rate and your APR are not the same.
Interest Rate: Cost of borrowing the money
APR: The true cost, including lender fees, points, and mortgage insurance
π Smart Move: Always ask for a breakdown of what’s included in the APR so you know where your money is going.
Closing costs can be negotiated.
π Options:
Ask the seller for a credit
Joel Lobb | Kentucky Mortgage Loan Officer
Helping Kentucky Families Since 2002
FHA | VA | USDA | KHC | Conventional
Joel Lobb - Mortgage Loan Officer
NMLS Personal ID: 57916 | Company NMLS ID: 1738461
Kentucky Mortgage Loans Only | Equal Housing Lender
Important Disclaimers:
This website and content are not endorsed by the FHA, VA, USDA, or any government agency. All information is for educational purposes only and does not constitute financial advice.
Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by lenders who are licensed by the states in which they operate. Other restrictions and limitations apply.
Visit www.nmlsconsumeraccess.org to verify licensing and credentials.
Equal Housing Opportunity
Every Kentucky Homebuyer Needs to Know
Joel Lobb | Kentucky Mortgage Loan Officer
Helping Kentucky Families Since 2002
FHA | VA | USDA | KHC | Conventional
NMLS Personal ID: 57916 | Company NMLS ID: 1738461
Kentucky Mortgage Loans Only | Equal Housing Lender
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.
---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.
Contact Joel Lobb today for a free USDA pre-qualification and property eligibility review.
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.
See how much home you can afford in Kentucky with flexible FHA financing.
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**.
Thank you for your service. Let’s explore your no-down-payment VA loan options in 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.
With just 3-5% down, you may qualify for a Conventional loan in Kentucky today.
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.
Ask me how to combine KHC assistance with FHA, VA, USDA, or Conventional loans to save upfront costs.
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) |
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.
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.
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
π (502) 905-3708 | ✉️ kentuckyloan@gmail.com
Equal Housing Lender | Not endorsed by any government agency. All loans subject to approval and availability.
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 where to start, drop a comment or shoot me a message. I’m here to help walk you through the process!
#CreditTips #MortgageReady #HomeLoanHelp #KentuckyMortgage #JoelLobb #CreditRepair #HomebuyerTips #FHA #VA #USDA #KHC #CreditScoreMatters #NMLS57916 #EqualHousingLender
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.
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.
Here's what most Kentucky mortgage lenders look at:
These are often referred to collectively as the “classic FICO models” and are used for:
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.
Ready to check your real mortgage credit scores? Get started with a free pre-qualification from Joel Lobb (NMLS #57916) at EVO Mortgage.
π Call or Text: (502) 905-3708
π§ Email: kentuckyloan@gmail.com
π Website: www.kentuckyfirsttimehomebuyer.com
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, --
Joel Lobb is an experienced Mortgage Loan Officer , Inc. specializing in helping Kentucky homebuyers navigate credit and mortgage processes.
Contact Information:
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!
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.
To get a Kentucky mortgage loan with bad credit through FHA, VA, USDA, or the Kentucky Housing Corporation (KHC), you'll need to take specific steps tailored to each program:
Kentucky FHA Loan with Bad Credit:
Kentucky VA Loan with Bad Credit:
Kentucky USDA Loan with Bad Credit:
Kentucky Housing Corporation (KHC) Loan with Bad Credit:
http://www.mylouisvillekentuckymortgage.com/
For all these loans, working with a knowledgeable mortgage broker like Joel Lobb can be beneficial. They can guide you through the specific requirements, help you understand your options, and assist in improving your chances of approval despite bad credit.