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
Call/Text - 502-905-3708
www.mylouisvillekentuckymortgage.com
911 Barret Ave., Louisville, KY 40204
Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916
Kentucky Mortgage Loan Expert For Kentucky FHA, VA, USDA, Fannie Mae and KHC Down payment Assistance Loans
Why Work With Me?
Local Expertise: I know the ins and outs of Kentucky’s housing market and loan programs.
Fast Approvals: I offer free mortgage applications with same-day approvals to keep the process moving quickly.
Customized Loan Solutions: Whether you’re buying a home or refinancing, I’ll find the right loan program to fit your needs.
Personalized Service: I treat every client like family, ensuring you’re supported and informed throughout the process.
About My Website
Visit my website for a wealth of resources tailored to Kentucky homebuyers. You’ll find:
Step-by-step guides for first-time homebuyers.
Information on loan programs like FHA, VA, USDA, and KHC.
Tools to help you calculate potential payments and affordability.
Blog posts with tips and updates on the Kentucky housing market.
A secure portal to start your loan application and upload documents.
Please Note: My website is not endorsed by the FHA, VA, USDA, or any government agency. It is an independent platform created to educate and assist homebuyers with expert advice and accessible tools.
Kentucky Mortgage Guide
Buying a home in Kentucky with little or no money down is more achievable than you might think. When structured correctly with proper documentation, gift funds can cover your entire down payment and closing costs—making homeownership accessible to families who don't have substantial savings. This guide walks you through exactly how gift funds work across FHA, VA, USDA, and Conventional loans, who can legally give you a gift, and how to avoid the documentation mistakes that slow files in underwriting.
| Program | Down Payment | Borrower Contribution Required? | Primary Residence | Second Home |
|---|---|---|---|---|
| FHA | 3.5% (up to 96.5% LTV) | No | ✓ Allowed | ✗ Not Allowed |
| VA | 0% (up to 100% LTV) | No | ✓ Allowed | ✗ Not Allowed |
| USDA | 0% (up to 100% LTV) | No | ✓ Allowed (rural only) | ✗ Not Allowed |
| Conventional | 3–20% | No (primary) | ✓ Allowed | ✓ Allowed* |
*Conventional second homes: if LTV exceeds 80%, you'll typically need at least 5% of your own funds.
Not every donation counts as a legitimate gift for mortgage purposes. Lenders distinguish between true gifts (freely given with no expectation of repayment) and other financial arrangements. Here's who can and cannot give you money for your home purchase in Kentucky:
The most common reason gift-funded deals stall in underwriting is poor or missing documentation. Lenders must create a complete paper trail showing where the money came from, that it's truly a gift, and that it's now in your possession. Here's your checklist:
Pro Tip: Have your donor wire money directly to your escrow or title company when possible. This creates the clearest paper trail and avoids multiple transfers that raise underwriting questions.
FHA's 3.5% Minimum Required Investment can be 100% gift-funded. Combined with seller closing cost contributions (up to 6%) and lender credits, you can close with zero out of pocket. KHC's Down Payment Assistance Program also works seamlessly with FHA for eligible first-time buyers.
Key Point: No minimum borrower contribution required if gifts or DPA cover the 3.5% plus your closing costs.
VA is the most flexible program for gift funds. There is no minimum borrower contribution—gifts can cover your entire down payment (if any), earnest money deposit, and closing costs. Your VA funding fee (1.25–3.3% depending on disability status and down payment) is typically financed into the loan.
Key Point: Watch the 4% seller concession cap. If seller covers 4% in closing costs, you'll need gifts or lender credits for any remaining costs.
USDA is 100% financing in eligible rural Kentucky counties. Gift funds cover closing costs and prepaids only—not down payment (since there isn't one). The USDA guarantee fee (1–2%) is financed. Maintain a clear trail: donor → your account → title company or escrow.
Key Point: USDA is strict about source verification. If your gift is large, expect the lender to request donor statements proving the funds are legitimate and not borrowed.
Primary Residences: Gifts can fund 100% of your down payment and closing costs with no borrower contribution required, up to 97% LTV (Fannie Mae).
Second Homes: Gifts are allowed, but if your LTV exceeds 80%, you must contribute at least 5% of your own funds. For example, on a $300,000 second home with 80%+ LTV, you need $15,000 from your own savings; gifts can cover the remainder.
Key Point: Investment properties cannot use gift funds at all.
Learn more about specific loan programs and down payment assistance:
I'll structure your FHA, VA, USDA, or Conventional loan to maximize your gift funds, create a clean paper trail, and get you to underwriting approval fast.
Get My Free Loan Plan
Joel Lobb, NMLS #57916
EVO Mortgage (NMLS #1738461)
📞 502-905-3708 | ✉ kentuckyloan@gmail.com
Yes. You can receive gifts from multiple eligible donors. For example, your parents might give $5,000, grandparents $5,000, and an employer might provide $3,000. Each donor needs their own gift letter, but there's no limit on total gifts received.
No. Gift funds do not increase your debt-to-income ratio because they're not a loan. Your lender looks at your income and existing debts (credit cards, auto loans, student loans, etc.) but ignores gift funds when calculating DTI. This can help you qualify for a larger loan amount.
This is uncommon but possible. If your donor uses cash, they'll need to deposit it into a bank account at least 30–60 days before closing so you can document the source. A large cash deposit right before closing raises red flags and will likely delay your file. Plan ahead.
Absolutely. Gifts can cover earnest money (the deposit you make when making an offer), down payment, and closing costs. Just make sure your lender knows the gift is funding multiple parts of the transaction and documents it clearly.
In most cases, no. Your lender will verify the gift letter and request donor bank statements as needed, but they typically won't call your donor directly. However, they may contact the donor if there are red flags (missing documentation, unclear relationship, etc.). Stay transparent to avoid issues.
Yes. Many Kentucky first-time buyers combine family gifts with KHC down payment assistance programs. For example, a $3,000 family gift might cover your 3.5% FHA down payment, while KHC assists with closing costs. This is one of the most powerful ways to close with minimal out-of-pocket funds.
If your loan application is denied, the gift funds remain yours—there's no obligation to repay them (that's what makes it a gift). However, discuss this risk with your donor beforehand. Some donors may want to wait until final approval before providing the money.
There is no maximum limit on the dollar amount of gifts you can receive for mortgage purposes. However, your total down payment cannot exceed program limits. For example, on an FHA loan, your total gift funds cannot exceed the value needed for 100% of your 3.5% down payment and closing costs.
Equal Housing Lender. All loans are subject to credit, income, and collateral approval. Loan programs, terms, rates, guidelines (FHA, VA, USDA, Conventional, KHC), and down payment assistance are subject to change without notice. Financing availability may vary by property type, occupancy status, credit score, debt-to-income ratio, and location. This information is not an offer to lend and does not constitute loan approval.
Licensing & NMLS: Licensed to originate mortgage loans in the state of Kentucky only. Joel Lobb, NMLS Personal ID #57916. EVO Mortgage, NMLS Company ID #1738461. Verify license status at www.nmlsconsumeraccess.org.
Not Government Endorsed: This website and the information provided are not endorsed, sponsored, or affiliated with HUD, the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture (USDA), the Kentucky Housing Corporation (KHC), Fannie Mae, or any government agency. This is an independent educational and informational resource created to assist Kentucky homebuyers.
Regulatory Authority: The Kentucky Department of Financial Institutions (DFI) oversees mortgage lending in Kentucky. For complaints or inquiries, visit dfi.ky.gov.
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Expert Kentucky Mortgage Guidance for First-Time Homebuyers & Refinancing
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Why Work With Me?
Local Expertise: I know the ins and outs of Kentucky’s housing market and loan programs.
Fast Approvals: I offer free mortgage applications with same-day approvals to keep the process moving quickly.
Customized Loan Solutions: Whether you’re buying a home or refinancing, I’ll find the right loan program to fit your needs.
Personalized Service: I treat every client like family, ensuring you’re supported and informed throughout the process.
About My Website
Visit my website for a wealth of resources tailored to Kentucky homebuyers. You’ll find:
Step-by-step guides for first-time homebuyers.
Information on loan programs like FHA, VA, USDA, and KHC.
Tools to help you calculate potential payments and affordability.
Blog posts with tips and updates on the Kentucky housing market.
A secure portal to start your loan application and upload documents.
Please Note: My website is not endorsed by the FHA, VA, USDA, or any government agency. It is an independent platform created to educate and assist homebuyers with expert advice and accessible tools.
