Showing posts with label no scores. Show all posts
Showing posts with label no scores. Show all posts

Kentucky Mortgage Approval With No Credit Score FHA, VA, USDA, Conventional

Kentucky Mortgage Approval With No Credit Score (FHA, VA, USDA, Conventional) — 2025 Guide
Kentucky 2025

Kentucky Mortgage Approval With No Credit Score

A simple plan for FHA, VA, USDA, and Conventional loans. If you have no credit score, you can still buy a home in Kentucky—here is how it works.

Apply Now (502) 905‑3708 Email Joel

Author: Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA · NMLS #57916 · Company NMLS #1738461 · Louisville, KY

Why this guide matters

You can buy a home in Kentucky even if you do not have a credit score. I help first‑time buyers with no scores every week. This site has deep how‑to guides on Kentucky FHA, VA, USDA, and Conventional loans. That gives you simple steps, clear rules, and fewer surprises. In short: this is our specialty, and we do it a lot.

See related guides: Kentucky FHA Loans · Kentucky VA Loans · USDA Rural Housing Kentucky · KHC Down Payment Assistance

Quick Start: What to do first

1

Map your program

  • Use VA if you are eligible (often $0 down).
  • Use USDA if the home is in an eligible rural area (often $0 down).
  • Use FHA if you need flexible credit rules.
  • Use Conventional when AUS approves, often with a co‑borrower who has a score.
2

Prove your payment history

Gather 12 months of on‑time payments for rent and 2–3 other bills (utilities, phone, insurance, daycare). Bank statements, invoices, or letters from the company work.

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Program snapshot (side‑by‑side)

Each program has unique requirements for no-score borrowers. The right choice depends on your specific situation.
Program Purchases vs. Refis Approval Method DTI Rules Tradelines & Rent Notes
VA Purchases only when no score is involved Manual underwriting allowed up to 50% DTI with residual income. If DTI > 41%, meet 120% of VA residual income. Up to 50% with strong residual income 3 non‑traditional tradelines with 12 months on‑time history. Rent‑free letter if living rent‑free. No formal loan cap with full entitlement; $0 down for eligible Veterans.
FHA Purchases only when a borrower has no score Even if AUS is Approve/Eligible, downgrade to manual when any borrower has no score. All borrowers no score: 31/43. If one borrower has ≥580 and the other no score: up to 40/50 with compensating factors. 3 non‑traditional tradelines per no‑score borrower; rent‑free letter if applicable. HUD REO $100 down, escrow holdbacks, 203(h) disaster, Condo Single‑Unit Approvals allowed.
Conventional Purchases and refis as AUS permits No‑score co‑borrowers allowed with DU/LPA Approve/Accept. Run both and follow the stronger findings. Per AUS If scored borrower provides >50% of income: no extra NTCs. If no‑score borrower provides >50%: need 2 NTCs + 12‑month rent. Pricing may be based on the scored borrower's profile (e.g., 740) when paired with a no‑score co‑borrower.
USDA Purchases Run GUS. Enter 100 as the credit score for a no‑score borrower. Typical program ratios 29/41 unless GUS allows otherwise. If 12‑month rent is verified: add 1 extra NTC. If no rent: provide 3 NTCs. $0 down for eligible rural properties. Check USDA property eligibility.

VA with no score

If your total DTI is above 41%, you must meet at least 120% of the VA residual‑income rule for your family size and region.

What to expect

  • Manual underwriting allowed up to 50% DTI with strong residual income.
  • 3 non‑traditional tradelines with 12 month on‑time history for any no‑score borrower.
  • Rent‑free letter if you live rent‑free.
  • $0 down available for eligible Veterans with entitlement.

Helpful link: VA Home Loan Program

FHA with no score

What to expect

  • When any borrower has no score, we must manually underwrite, even if AUS says Approve/Eligible.
  • DTI caps: 31/43 when all borrowers have no score.
  • If one borrower has a 580+ score and the other has no score, DTI can stretch to 40/50 with strong compensating factors.
  • 3 non‑traditional tradelines with 12 months of on‑time payments; rent‑free letter when applicable.
  • Special cases allowed: HUD REO $100 down, escrow holdbacks, 203(h) disaster relief, Condo Single‑Unit Approvals.

Helpful link: FHA for Homebuyers

Conventional with no score

What to expect

  • We run DU (Fannie Mae) and LPA (Freddie Mac). If we receive Approve/Accept findings, a no‑score co‑borrower is allowed.
  • Pricing may be based on the scored borrower's credit when paired with a no‑score co‑borrower.
  • If the scored borrower provides more than 50% of qualifying income: no extra NTCs needed.
  • If the no‑score borrower provides more than 50%: provide 2 non‑traditional tradelines plus 12‑month rent verification.

Helpful links: Fannie Mae Single‑Family · Freddie Mac Single‑Family

USDA with no score

What to expect

  • We run GUS. For a borrower with no score, we enter 100 as the score value in the system.
  • Typical USDA ratios are 29/41, but GUS may allow exceptions.
  • If 12‑month rent is verified: provide rent + 1 extra non‑traditional tradeline. If no rent: provide 3 non‑traditional tradelines.
  • $0 down for eligible rural properties. Check your address on the USDA map.

Helpful link: USDA Eligibility

Non‑traditional credit examples

Commonly Accepted

  • Rent or mortgage (VOR)
  • Utilities: electric, water, gas
  • Phone or internet
  • Auto or renters insurance

Sometimes Accepted

  • Daycare or tuition
  • Streaming or subscription bills
  • Medical payment plans
  • Gym membership with monthly billing
Tip: we need 12 straight months of on‑time payments and a way to verify them.

Documents checklist

Identity & income

  • Driver's license and Social Security number
  • 30 days of pay stubs and last 2 years W‑2s
  • Last 2 months of bank statements
  • Proof of other income (if any)

Non‑traditional credit

  • 12‑month rent verification or rent‑free letter
  • 2–3 other bills with 12 months of on‑time payments
  • Invoices or letters from each company
  • Matching bank statements when possible

FAQs

Is this only for first‑time buyers?

No. It fits many buyers who lack a traditional score. Each program has extra rules. We will confirm what works for you.

Will building a quick credit score help?

Sometimes, but not always. Opening a new card right before buying a home can cause delays or lower your approval odds. Ask first.

Can I use down payment help?

Often yes. Many Kentucky buyers pair these loans with KHC Down Payment Assistance. We will review your eligibility.

Ready to get pre‑approved?

We specialize in no‑score mortgage approvals in Kentucky across FHA, VA, USDA, and Conventional. I will map your plan, list the exact documents you need, and show you the payment range you can expect.

Start Your Application Call (502) 905‑3708 Email Joel
Kentucky no credit score FHA VA USDA Conventional First‑time homebuyer

Equal Housing Lender. EVO Mortgage Company NMLS #1738461 |Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA Joel Lobb NMLS #57916. Not a commitment to lend. All loans subject to credit approval, property approval, program availability, and change without notice. AUS findings and agency handbooks (HUD/FHA, VA, USDA, Fannie Mae, Freddie Mac) – as well as investor overlays – control. Some features (such as no‑score refinances) may be unavailable. Always verify property eligibility and income limits for USDA and KHC programs.

Helpful official resources: HUD/FHA · VA · USDA · Fannie Mae · Freddie Mac

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

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Kentucky Mortgage Guidelines for Income, Employment, and credit scores









Kentucky Mortgage Loan Preapproval: What To Know

What affects your home loan preapproval

Your income, work history, credit score, money down and  saving are key factors that lenders will consider during the mortgage process.

Employment Status for Kentucky Mortgage Pre-Approval

Self-employed individual requires two-year tax returns'.

Only borrowers who have an ownership interest of 25% or more in a business and are not W-2 employees are considered “self-employed.” However, there is an exception if the borrower can show a two-year history in a similar line of work, which includes having documentation that proves an equal or higher income in the new role compared to the W2 position.

Debt-to-Income Ratio

The debt-to-income ratio is the percentage of your monthly gross income that goes toward paying debts. There are two types of DTI that lenders will consider during the mortgage process: front-end and back-end. The first consists only of your housing-related expenses, whereas the latter also includes all your minimum required monthly debts.

The lower your DTI, the better your chances of securing a home loan. 

For example, FHA loans secured by the government have more lenient requirements — you can have a DTI of up to 57% and still get approved for an FHA home loan. USDA loans used to buy homes in rural areas have a lower maximum DTI of 45%.

Loan-to-Value Ratio

The loan-to-value ratio (LTV) is a number lenders use to determine how risky a loan to a potential borrower might be. It measures the relationship between the loan amount and the market value of the property you want to buy, and it can also determine whether mortgage insurance will be required.

All mortgages have a maximum LTV to qualify. However, just like with DTI, the LTV varies depending on the loan. FHA loans, for example, have an LTV of 96.5% since they allow down payments of as little as 3.4%.

Going for an LTV of 80% or less is “ideal” because you get unique benefits as a buyer, but that requires a down payment of 20%. Ultimately, each buyer will need to figure out their own LTV based on how large a down payment they can afford.

Credit History and FICO Score for Kentucky Mortgages 

Your credit history is one of the most important factors when it comes to getting a mortgage.

Credit History and FICO Score for Kentucky Mortgages





Best Kentucky Mortgage Lender for First Time Home Buyers in Kentucky

You don’t need a perfect credit score to buy a house, but those with outstanding scores are usually rewarded with lower interest rates and a greater variety of payment options. Buyers with very poor credit have the option of finding a co-signer who has better credit than them to help secure the loan.

Why Getting Preapproved Is Such a Big Deal

Getting preapproved for a mortgage helps you shop for homes that you can afford and shows you are a serious buyer.

But a letter of preapproval is more than just a way to look good to sellers. It also helps you find the right mortgage lender and provides some flexibility in bargaining or negotiating for a better price range or specific costs, repairs, and improvements to a home.

Getting preapproved makes the entire closing process faster, too. It takes an average of 30 to 45 days to close on a house in Kentucky, and part of that period is due to the process of mortgage approval, title search, appraisal report, home inspections, verifying employment and bank account info along with taxes and w-2s and paystubs to validate the pre-approval.

What are standard continuity of employment requirements?

A borrower will need to verify a two-year cumulative employment history. Less than two year may be 

offset via school transcripts; if guaranteed hourly (40) or salaried in nature, the base income 

will be allowable. Variable earnings will require at minimum 12 months receipt on current position; 

OT, Bonus and commission are considered variable however, must reflect a cumulative two- year 

history of receipt.


What income can I use for a traveling nurse?

A minimum 12-month history of contract nursing work is required. Income documentation must

 include  copies of applicable contracts and WVOE’s for each position. The income will be averaged. 

Standard two- year employment history required.


Do we allow one score on a conventional transaction? No score?

Yes! If the borrower has three scores, the middle score is to be used; two scores, the lower score 

is to be used; one score, that score is to be used.  If no score, only allowable with AUS A/E and 

less than 50% of transactional income contributions. We do not average scores.


Can I use part time or secondary income for qualifying purposes?

Yes! Conventional~ secondary employment will require a two- year history of receipt to use in 

conjunction with the primary employment earnings. Multiple second jobs over this time frame are 

allowable however the borrower may not have a job gap > one month in length. Part time employment 

alone will be considered variable in nature and will require a minimum 12- month history; earnings 

will be averaged. FHA~ will require an uninterrupted two- year history for utilization.


When must a borrower start a new job in conjunction with future employment?

Conventional requires a start date within 90 days of the Note date. FHA requires a start date 

within 60 days of note date. VA max 60 days of note date. Non contingent contract required for each 

entity.


What type of income(s) are considered illegal?

Foreign shell banks; medical marijuana dispensaries; any business or activity related to 

recreational marijuana-use , growing, selling or supplying- even if permitted by state or local law.

 Policy is not limited to  owner of business.


Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916



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