Showing posts with label credit report. Show all posts
Showing posts with label credit report. Show all posts

10 Mortgage Facts Every Kentucky Homebuyer Should Know for | FHA, VA, USDA & Conventional Loans

Looking to buy a home in Kentucky? 

Here are 10 insider mortgage facts that give you an edge when applying for FHA, VA, USDA, or Conventional home loans in 2025.

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.πŸ‘‡

1. Mortgage Rates Change — Sometimes Daily

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.
πŸ‘‰ 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.

2. Every Lender Charges Different Fees

Not all lenders price their loans the same. Rates, origination fees, discount points, and closing costs can vary widely.
πŸ‘‰ Best Practice: Get at least three loan estimates to compare side-by-side. Don’t just shop rate — compare total cost.

3. Your Loan Might Be Sold — And That’s Normal

It’s common for lenders to sell your loan to another bank or servicer. This helps lenders free up capital to issue more loans.
πŸ‘‰ 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.

4. Your Middle Credit Score Is What Counts

Lenders pull three credit scores — one each from Experian, Equifax, and TransUnion. Your middle score determines your qualification and rate.
πŸ‘‰ Important: Free credit scores from apps or websites use different models and may not match what mortgage lenders see.

5. You Can Refinance Anytime — But That Doesn’t Mean You Should

You can refinance whenever you like, but it only makes sense if it benefits your long-term financial goals.
πŸ‘‰ 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.

6. You Can Buy a Home Again After a Foreclosure

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
    πŸ‘‰ Exception: You may qualify sooner if you can document an uncontrollable hardship (job loss, major illness, etc.).

7. Good Credit = Better Mortgage Rates

High credit scores don’t just open more doors — they get you better pricing.
πŸ‘‰ 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.

8. Know Your APR (Annual Percentage Rate)

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
    πŸ‘‰ Smart Move: Always ask for a breakdown of what’s included in the APR so you know where your money is going.

9. You Can Reduce Your Closing Costs

Closing costs can be negotiated.
πŸ‘‰ Options:

  • Ask the seller for a credit



Ready to Get Started?

Joel Lobb | Kentucky Mortgage Loan Officer

Helping Kentucky Families Since 2002

FHA | VA | USDA | KHC | Conventional

   
πŸ“ 911 Barret Ave., Louisville, KY 40204
Get Pre-Approved Today

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 Equal Housing Opportunity

Ready to Get Started?


10 Mortgage Facts - <a target="_blank" href="https://www.google.com/search?ved=1t:260882&q=Kentucky+first+time+home+buyer+programs&bbid=2083715272801756161&bpid=5709200359553810070" data-preview>Kentucky Homebuyers</a>

🏠 10 Mortgage Facts

Every Kentucky Homebuyer Needs to Know

1
πŸ“ˆRates Change Daily
Mortgage rates move like the stock market. The rate you see this morning could disappear by afternoon. Lock it in when it looks solid!
2
πŸ’°Every Lender Charges Different Fees
Compare at least 3 loan estimates. Look beyond the rate—check origination fees, underwriting fees, and lender credits. That's where the real differences hide.
3
πŸ“¬Your Lender Can Sell Your Loan
Totally normal—it helps lenders free up funds. Your loan terms don't change, but always read your mail to ensure you're sending payments to the right place.
4
πŸ“ŠMiddle Credit Score Matters Most
Lenders pull from Experian, Equifax, and TransUnion—and use your middle score to qualify you. Free app scores? Usually not the same as mortgage scores.
5
πŸ”„Refinancing: Run the Numbers
You can refinance anytime, but should you? It makes sense if you'll break even in 2-3 years, eliminate PMI, shorten your term, or pull equity for something important.
6
🏑You Can Buy Again After Foreclosure
FHA: 3 years | VA: 2 years | Conventional: 7 years. If life threw you a curveball, time and recovery open new doors. Don't give up on homeownership.
7
Good Credit = Better Rates
Keep balances low, pay on time, avoid new credit before applying. Even a 20-point credit score bump can save you thousands over your loan's life.
8
πŸ”Know Your APR
Interest rate = what you pay to borrow. APR = the true cost including fees, points, and insurance. Always ask what's included so you're comparing apples to apples.
9
πŸ’΅Reduce Your Closing Costs
In Kentucky, sellers are often open to credits. You can also use lender credits or roll costs into loans with VA or USDA. There's always room to negotiate!
10
Pre-Approval Gives You Power
In Kentucky's competitive market, sellers take you seriously when you're pre-approved. It shows you're ready to close—and can be the difference between winning or losing a home.
Same-Day Approvals Available!

Kentucky Mortgage Approval With No Credit Score | FHA, VA, USDA & Conven...

Kentucky Mortgage Loan Credit Score Requirements 2025 | FHA, VA, USDA, Conventional, KHC

Kentucky Mortgage Loan Credit Score Requirements 2025

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.

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USDA Loan Requirements in Kentucky (2025)

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.

  • Minimum Score: 580+ accepted
  • Preferred Score: 640 for smoother approvals
  • Down Payment: 0% (no money down)
  • Other Requirements: Home must be in a USDA-eligible rural area, and income limits apply

See If You Qualify for a USDA Loan in Kentucky

Contact Joel Lobb today for a free USDA pre-qualification and property eligibility review.

---

FHA Loan Requirements in Kentucky (2025)

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.

  • Minimum Score: 500 with 10% down; 580+ with 3.5% down
  • Lender Overlays: Many lenders prefer 620+ even though FHA allows lower
  • Best For: First-time buyers, credit-challenged borrowers

Start Your FHA Loan Pre-Approval

See how much home you can afford in Kentucky with flexible FHA financing.

---

VA Loan Requirements in Kentucky (2025)

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**.

  • Minimum Score: No official minimum
  • Preferred Score: 620+ for best approval odds
  • Benefit: 0% down payment and no monthly mortgage insurance

Kentucky VA Home Loans

Thank you for your service. Let’s explore your no-down-payment VA loan options in 2025.

---

Conventional Loan Requirements in Kentucky (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.

  • Minimum Score: 620
  • Preferred Score: 760+ for best rates
  • Down Payment: 3-5%+ for first-time buyers

Check Your Conventional Loan Options

With just 3-5% down, you may qualify for a Conventional loan in Kentucky today.

---

KHC Down Payment Assistance (2025)

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.

  • Minimum Score: 620
  • Assistance: Up to $12,500 for down payment and closing costs
  • Other Requirements: Income and purchase price limits apply; must be used with FHA, VA, USDA, or Conventional first mortgage

Use KHC’s $12,500 Down Payment Assistance

Ask me how to combine KHC assistance with FHA, VA, USDA, or Conventional loans to save upfront costs.

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Kentucky Mortgage Loan Credit Score Comparison (2025)

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)
---

Frequently Asked Questions

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.

---

Final Thoughts: Credit Score & Mortgage Approval in Kentucky

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.

Start Your Kentucky Mortgage Pre-Approval Today

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
πŸ“ž (502) 905-3708 | ✉️ kentuckyloan@gmail.com

Equal Housing Lender | Not endorsed by any government agency. All loans subject to approval and availability.

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Disputes on Credit Report and Kentucky Mortgage Lo...

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...



Disputes on Credit Report and Kentucky Mortgage

 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:

  1. Call each credit bureau (numbers on the graphic).

  2. Ask to remove any dispute comments.

  3. Verify they’re gone by pulling a fresh consumer credit report.

  4. 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




Kentucky Mortgage Credit Scores Used For A Kentucky Mortgage Approval Letter

Which FICO Score Do Kentucky Mortgage Lenders Use?

Which FICO Score Models Matter for Kentucky Mortgage Loans?

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.

Understanding the FICO® Scores Used by Mortgage Lenders

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.

Which FICO Scores Do Lenders Pull?

Here's what most Kentucky mortgage lenders look at:

  • FICO Score 2 (Experian)
  • FICO Score 4 (TransUnion)
  • FICO Score 5 (Equifax)

These are often referred to collectively as the “classic FICO models” and are used for:

  • FHA Loans
  • VA Loans
  • USDA Rural Housing Loans
  • Conventional Loans (via Fannie Mae/Freddie Mac)

Why Is Your Mortgage Score Different Than Credit Karma?

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.

How to Improve the Right FICO Score

  • Keep credit card utilization under 30%
  • Avoid new hard inquiries 30–60 days before applying
  • Dispute inaccurate accounts directly with bureaus (but avoid disputes right before applying)
  • Pay down revolving debt first

Get Pre-Qualified with a Mortgage Expert in Kentucky

Ready to check your real mortgage credit scores? Get started with a free pre-qualification from Joel Lobb (NMLS #57916) at EVO Mortgage.

πŸ“ž Call or Text: (502) 905-3708
πŸ“§ Email: kentuckyloan@gmail.com
🌐 Website: www.kentuckyfirsttimehomebuyer.com

fha fico scores kentucky mortgage

The Credit Report and Credit Scores Used For A Kentucky Mortgage Loan Approval FHA, USDA, Fannie Mae and VA

Understanding Credit Scores for Kentucky Mortgage Loan Approval




Why do some mortgage lenders require a certain credit score whereas other mortgage lenders may not?



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, --

πŸ‘‡

How Credit Scores Affect your Kentucky Mortgage Loan Approval Chances




What score does the Mortgage Lender Use? Why may it be different than the one you are seeing?




The reason mortgage lenders use older FICO Scores is because they don’t have a choice. They are essentially forced to use them.

For a bank to sell a mortgage to Fannie Mae or Freddie Mac, FHA VA, USDA, Etc, the loan has to meet certain guidelines. Some of these guidelines require borrowers to have a minimum credit score under specific FICO Score generations.

If you’re planning to apply for a mortgage, be aware that the credit score you see on your application might differ slightly from the one you’re used to.

It might even be different than what comes up when you monitor your credit, or even when you apply for a car loan.

Banks use a slightly different credit score model when evaluating mortgage applicants. Below, we go over what you need to know about credit scores you’re looking to buy a home.

The scoring model used in mortgage applications

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)

As you can see, each of the three main credit bureaus (Equifax, Experian and TransUnion) use a slightly different version of the industry-specific FICO Score. That’s because FICO tweaks and tailors its scoring model to best predict the creditworthiness for different industries and bureaus. You’re still evaluated on the same core factors (payment history, credit use, credit mix and age of your accounts), but the categories are weighed a little bit differently.

The FICO 8 model is known for being more critical of high balances on revolving credit lines. Since revolving credit is less of a factor when it comes to mortgages, the FICO 2, 4 and 5 models, which put less emphasis on credit utilization, have proven to be reliable when evaluating good candidates for a mortgage.

Mortgage lenders pull all three reports, from all three bureaus, but they only use one when making their final decision.

“A bank will use all three bureaus,”--- “It’s called a tri-merge.”

If all three of your scores are the same, then their choice is simple. But what if your scores are different?

And if you are applying for a mortgage with another person, such as your spouse or partner, each applicant’s FICO 2, 4 and 5 scores are pulled. The bank identifies the median score for both parties, then uses the lowest of the final two.


How Credit Scores Affect your Kentucky Mortgage Loan Approval Chances





How Credit Scores Affect your Kentucky Mortgage Loan Approval Chances

Contact Joel Lobb for Expert Mortgage Advice

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!


NMLS 57916  | 


The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approvalnor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).



 


Credit Scores Required For A Kentucky Mortgage Loan Approval



1 - πŸ“… Email - kentuckyloan@gmail.com 
2.  πŸ“ž Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans


🌐 Websitewww.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.

How to get a Kentucky mortgage loan with bad credit through FHA, VA, USDA, or the Kentucky Housing Corporation (KHC)

 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:

  1. Kentucky FHA Loan with Bad Credit:

    • Credit Score Requirement: FHA loans typically accept lower credit scores than conventional loans. While the minimum credit score can vary, aiming for at least a 580 score can increase your chances.
    • Down Payment: With a credit score below 580, a 10% down payment may be required. If your score is 580 or above, you can qualify with a 3.5% down payment.
    • Work on Your Credit: Prioritize improving your credit score by paying bills on time, reducing debt, and disputing any errors on your credit report.
  2. Kentucky VA Loan with Bad Credit:

    • Credit Score Requirement: VA loans are known for being flexible with credit requirements. While there's no set minimum score, lenders often look for scores around 620 or higher.
    • VA Loan Guaranty: The VA doesn't directly issue loans but guarantees a portion of the loan, making lenders more willing to approve applicants with lower credit scores.
    • Proof of Financial Stability: Highlight stable income and employment history to strengthen your application.

  3. Kentucky USDA Loan with Bad Credit:

    • Credit Score Requirement: USDA loans typically require a minimum credit score of 640. However, some lenders may consider scores as low as 580 with compensating factors.
    • Income Limits: Ensure your income falls within USDA's income limits for the area where you're buying.
    • Compensating Factors: Emphasize factors like a steady job, low debt-to-income ratio, and a history of making timely payments to offset a lower credit score.
  4. Kentucky Housing Corporation (KHC) Loan with Bad Credit:

    • Credit Score Requirement: KHC loans may have varying credit score requirements depending on the specific program. Aim for a score of at least 620 for better chances of approval.
    • Down Payment Assistance: KHC offers down payment assistance programs that can help lower-income and first-time homebuyers. Check eligibility and requirements for these programs.
    • Prequalification: Consider getting prequalified to understand your options and improve your negotiating position.

How to get a Kentucky mortgage loan with bad credit through FHA, VA, USDA, or the Kentucky Housing Corporation (KHC)


Hope your day is full of sunshine😊

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

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

http://www.mylouisvillekentuckymortgage.com/


NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574


The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval
nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people.
NMLS ID# 57916, (www.nmlsconsumeraccess.org).


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.