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.👇

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.
👉 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.
👉 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.
👉 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.
👉 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.
👉 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
  👉 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.
👉 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
  👉 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.
👉 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

 502-905-3708

 

 kentuckyloan@gmail.com

 

 www.mylouisvillekentuckymortgage.com

 

 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

Ready to Get Started?

🏠 10 Mortgage Facts

Every Kentucky Homebuyer Needs to Know

1

📈Rates 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

💰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

📬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

📊Middle 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

🔄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

🔍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

💵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!

Ready to Get Started?

Joel Lobb | Kentucky Mortgage Loan Officer

Helping Kentucky Families Since 2002

FHA | VA | USDA | KHC | Conventional

📞 502-905-3708

📧 kentuckyloan@gmail.com

Get Pre-Approved Today

NMLS Personal ID: 57916 | Company NMLS ID: 1738461
Kentucky Mortgage Loans Only | Equal Housing Lender

Key ways to get your best rate possible on your Kentucky Home loan

 Kentucky Mortgage Rates

 Key ways to get your best rate possible on your Kentucky Home loan

Historically speaking, current mortgage rates are pretty average.

But considering all the other factors involved in our post-pandemic housing market, many people are struggling to afford a home.

 Here are the top ways you can get your best mortgage rate, even in a tough market:

• Improve your credit score by paying down your debt and making all payments on time
• Consider all your loan options, including your term length and fixed rate vs. adjustable-rate mortgages
• Shop around for a lender and compare rates and terms

These key factors can mean the difference in paying thousands of dollars extra over the life of your loan.

It all depends on your unique situation.

Best loan options for Kentucky Mortgage borrowers in today’s market

• Conventional purchase — best for borrowers with a high credit score and at least 5% down payment
• 
  
• FHA loan — best for first-time borrowers with more flexible credit requirements with lower credtit scores 500 to 580- 
• 
  
• VA loan — potential for zero down for active-duty military personnel, veterans, and eligible surviving spouses
• 
  
• USDA loan — potential for zero down for for borrowers in rural areas who have moderate to low incomes
• 
  
• Bank statement loan — for self-employed individuals
• 
  
• KHC Loan --Down payment Assistance Grant for Zero Down Home Loans

 Ask your lender about 2-1 buydowns and adjustable-rate mortgages for methods to get a lower initial rate.

 How much home can you afford?

Let’s demystify the mortgage process.

Here are three common models lenders use to calculate how much of your income should go toward your monthly mortgage payment:

• 28/36 rule: Your max monthly mortgage payment can’t exceed 28% of your gross monthly income, and your mortgage plus other monthly debts cannot exceed 36%

While this is a good starting point, this standard is nearly impossible to hit in many housing markets. Most borrowers today have "debt-to-income ratios" closer to 40-50% of their gross income.

Beyond your debts, lenders will evaluate your income, employment history, and credit score.

That's how to get the lowest mortgage rate possible for your borrower scenario.

What about getting the lowest monthly mortgage payment possible?

• Boost your credit score
• Make a larger down payment
• Choose a more affordable home
• Shop around for the best mortgage rate
• 2-1 mortgage buy down with points pay to lower rate 
• Mortgage Revenue Bonds Programs Kentucky Housing Corp.
• Shared Appreciated Mortgage (SAM) in Kentucky

Discounted Mortgage Rate 5.5% 30 year fixed rate loan. ***

 Exciting News! KHC is thrilled to reintroduce its MRB program, now featuring an interest rate of 5.5%!

BONUS!!! Add $10,000 in down payment assistance to this amazing program for a power move!
Eligibility requirements for the programs do apply, so reach out to us today for more information. Call or Message us now and seize the moment!

***Subject to Credit Qualifying Criteria and subject to change.

(1) The above rate quote has the following assumptions: $200,000 purchase; $194,000 loan amount; 0% down payment; 620 FICO credit score; property is SFR; borrower has sufficient income and assets to qualify; Tax and insurance impounds required; Estimated closing costs affecting the 6.375% APR include all standard fees. Monthly payment without taxes and insurance is $1,481.00. Rate and Annual Percentage Rate shown as of 11/01/2024, subject to change.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916




Text/call: 502-905-3708

Kentucky Mortgage Rates Today for 30 year fixed rate FHA, VA, USDA Mortgage Home Loans

Rates are subject to change without notice. Other fees, sometimes referred to as "Third-Party Fees", will also be required. Your Loan Officer can provide estimates. You will receive a Loan Estimate that provides details on the total cost of obtaining the loan program you select. The details provided in this Product Comparison are based on the information shown in the "Your Scenario" section. Payment amounts do not include escrow payments for homeowner's insurance or real estate taxes. An escrow account may be required. This Product Comparison does not constitute an offer to extend credit. Joel Lobb  Mortgage Loan OfficerAmerican 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).