Assumption of A Kentucky Mortgage Loan

Title: Assumable Mortgage Loans in 2026: Why They Rarely Work & What Kentucky Homebuyers Should Know Description: Assumable mortgage loans sound great—keep the seller’s low rate and take over their loan. But in practice, assumptions almost never work. Learn the real guidelines for FHA, VA, and USDA assumptions and why most buyers end up choosing a new mortgage instead. -->

Assumable Mortgage Loans: Why They Rarely Work in 2026 (Kentucky Guide)

Assumable mortgage loans have become a trending topic again as Kentucky homebuyers look for ways to secure lower interest rates. The appeal is simple: take over the seller’s existing mortgage, keep their lower rate, and avoid today’s higher market rates.

In reality, assumable mortgages almost never work the way buyers expect, especially in Kentucky. Below is a clear, updated breakdown of how assumptions work today, the guidelines lenders use, and why most buyers ultimately choose a traditional loan instead.

What Is an Assumable Mortgage Loan?

An assumable mortgage allows a buyer to take over the seller’s existing loan, including:

• Interest rate
• Remaining balance
• Loan term
• Mortgage insurance structure
• Payment schedule

Only certain government-backed loans are typically assumable:

• FHA loans
• VA loans
• USDA Rural Housing loans

Most conventional loans are not assumable because of due-on-sale clauses in the note and mortgage.

For most Kentucky homebuyers, these assumable loan options will be limited to existing FHA, VA, or USDA loans already on the property.

Why Homebuyers Like the Idea of an Assumable Mortgage

1. Access to a Lower Interest Rate

If the seller locked in a low fixed rate in previous years, the buyer may be able to assume that rate instead of taking today’s higher market rate. This is the main reason people look at assumptions.

2. Potentially Lower Closing Costs

In some situations, closing costs on an assumption can be lower than on a brand-new mortgage because certain lender fees may be reduced or eliminated.

3. Simpler Loan Structure (In Theory)

On paper, an assumption looks simple: the buyer steps into the seller’s existing loan terms. However, once you factor in lender approval, equity, and underwriting, it becomes much more complicated.

Why Assumable Mortgages Rarely Work in Practice

1. The Equity Gap Is the Biggest Deal Killer

The most common reason assumptions fall apart is the gap between the seller’s loan balance and the property’s current value.

Example:

• Seller’s remaining loan balance: $180,000
• Agreed purchase price: $300,000
• Equity gap: $120,000

The buyer must either bring that $120,000 in cash or get a second mortgage or home equity loan for the difference. Most first-time homebuyers and move-up buyers do not have the cash needed to make this structure work.

2. Lender or Servicer Approval Is Required

Even when the loan type is assumable (FHA, VA, or USDA), the current lender or loan servicer must approve the assumption. They are not required to say yes.

In many cases, servicers are unwilling to keep low-rate loans on the books or to dedicate staff to process assumption requests. The file can be delayed for months or denied outright.

3. Full Underwriting Is Still Required

An assumption is not a shortcut around qualification. The buyer must still meet full underwriting requirements, including:

• Credit score and credit history review
• Verification of income and employment
• Debt-to-income ratio guidelines
• Property and occupancy requirements

If the buyer cannot qualify under current FHA, VA, or USDA guidelines, the assumption will be denied.

4. Sellers May Remain Liable Without a Release

In some assumption scenarios, the seller’s name and liability remain tied to the loan if the lender does not formally release them. This risk is especially common in USDA and certain older FHA loans.

Many sellers walk away from the idea of an assumption once they understand they could still be legally responsible if the buyer stops making payments.

5. VA Assumptions Can Tie Up the Veteran’s Entitlement

VA loans bring another critical issue: entitlement. If a non-veteran assumes a VA loan, the original veteran’s entitlement can remain tied to that property until the loan is paid off or refinanced. That means the veteran may not be able to fully use their VA benefit on another home.

Because of this, many Kentucky veterans are not willing to allow a civilian buyer to assume their VA loan.

When an Assumption Might Make Sense

Even with all of these challenges, there are rare situations where an assumption could work:

• The seller has very little equity in the home
• The buyer has strong cash reserves and is comfortable with a large down payment
• The loan servicer has a clear, documented process for assumptions
• The buyer is prepared for a longer timeline and extra paperwork
• The loan type is FHA, VA (with a veteran buyer assuming), or USDA

These scenarios are the exception, not the rule. For most Kentucky buyers, a traditional new mortgage remains the most practical and predictable approach.

Assumable Mortgage vs. New Mortgage: Which Is Better?

When you compare everything side by side, a new mortgage loan often provides:

• More flexible down payment options
• Access to down payment assistance through programs like KHC
• Better long-term structure for the buyer and seller
• Clear liability and clean title transfer

Assumptions look attractive because of the rate, but once you factor in equity, approval risk, and timing, they are rarely the best overall solution.

Summary: Why Assumable Mortgages Rarely Work

Assumable mortgages can sound like a perfect workaround in a higher-rate environment, but real-world deals usually fall apart for the following reasons:

• Large equity gap between the loan balance and purchase price
• Servicer and lender reluctance to approve assumptions
• Full underwriting still required for the new buyer
• Liability concerns for the seller
• VA entitlement issues when non-veterans assume VA loans

For most Kentucky homebuyers, it is more realistic to focus on new FHA, VA, USDA, KHC, or Conventional financing tailored to their budget and long-term goals.

Thinking About Buying a Home in Kentucky?

If you are considering buying a home in Kentucky and want to explore your options, including whether an assumable loan even makes sense, I can help you compare:

• FHA loans
• VA loans
• USDA Rural Housing loans
• Kentucky Housing Corporation (KHC) down payment assistance
• Conventional loan options

Call or text today to start your pre-approval and see which program fits your situation.

Phone/Text: 502-905-3708
Website: www.mylouisvillekentuckymortgage.com

This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property requirements. Programs, rates, and guidelines are subject to change without notice.

Questions about assuming someone's mortgage. Contact me below.

Thanks

Joel Lobb Mortgage Loan Officer NMLS 57916
EVO Mortgage
911 Barret Ave, Louisville, KY 40204
Company NMLS ID # 173846

Text/call: 502-905-3708

email: kentuckyloan@gmail.com


http://www.mylouisvillekentuckymortgage.com/








NMLS 57916 | Company NMLS #173846

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).

Job Gaps in Employment and Getting Approved for a Mortgage Loan in Kentucky for FHA and Fannie Mae Conventional loans

Job Gaps and Mortgage Approval in Kentucky (FHA & Conventional Guidelines)

Employment gaps happen, and they don’t automatically disqualify a borrower from getting a mortgage. Both FHA and Fannie Mae Conventional loans have clear guidance on how lenders handle gaps in work history, expected income, and frequent job changes. This long-form Kentucky-focused guide breaks everything down so you can understand exactly how lenders evaluate your employment profile.

---

What Counts as a Job Gap for Mortgage Underwriting?

A borrower is considered to have a job gap when they have six months or more with no verified employment. Each loan program handles this differently, so documentation and expectations vary.

---

Fannie Mae Conventional Guidelines for Job Gaps

Fannie Mae does not impose a hard rule on employment gaps. Instead, the primary requirement is that Desktop Underwriter (DU) accepts the borrower’s employment and income documentation.

Most lenders verify:

• Your most recent paystub
• Your most recent W-2

If DU accepts the income, a prior gap usually does not impact approval.

Learn more about Kentucky Conventional Loans: Kentucky Conventional Mortgage Loan Guide

---

Kentucky FHA Loan Guidelines for Job Gaps

FHA requires two conditions to be met if a borrower has been unemployed for six months or more:

• You must be back on the job for at least 6 months at the time of FHA case number assignment.
• You must document a two-year work history prior to the gap.

If those are met, FHA generally considers the income stable enough for qualifying.

More FHA resources: Kentucky FHA Mortgage Guidelines

---

Using Income From a Job That Has Not Started Yet

FHA allows lenders to use expected income if the income will begin within 60 days of closing. This may include:

• A new job start
• A scheduled raise or promotion
• A cost-of-living adjustment (COLA)
• Starting pension or retirement income

The employer must verify the income in writing and confirm it is guaranteed to begin on a specific date.

Borrowers must also have enough reserves or income to make the mortgage payment until the new income begins.

HUD 4000.1 Reference: II.A.4.c.xii.(L)

---

How FHA Evaluates Frequent Job Changes

If a borrower has changed jobs more than three times in the last 12 months or switched industries, FHA requires additional documentation.

Lenders must obtain either:

• Training or education transcripts showing the borrower is qualified for the new job, or
• Proof of consistent increases in income or benefits

HUD 4000.1 Reference: II.A.4.c.xi.(A)

More on work history rules: Kentucky Work History Requirements for Mortgage Approval

---

Key Takeaways for Kentucky Borrowers With Job Gaps

• Conventional loans are flexible — DU findings drive approval.
• FHA requires six months back on the job after a gap plus a prior two-year history.
• Expected income can be used if employment begins within 60 days of closing.
• Frequent job changes may require additional documentation.
• Strong AUS (DU or FHA TOTAL) findings can offset prior employment instability.

---

Have Job Gaps? I Can Help You Navigate the Guidelines.

If you’ve had a job gap or recent job changes and want to understand how this affects your FHA or Conventional approval, reach out and I’ll walk you through your options.

Joel Lobb – Mortgage Loan Officer (NMLS #57916)
Email: kentuckyloan@gmail.com
Call/Text: 502-905-3708
Serving all of Kentucky FHA, VA, USDA, KHC, and Conventional Homebuyers

Had a Job Gap? Here’s How to Get Approved for a Kentucky FHA Loan

Kentucky FHA Job Gap Guidelines Explained

Kentucky FHA Job Gap Guidelines: What Borrowers Need to Know

Are you worried that a job change or period of unemployment will disqualify you from getting an FHA loan in Kentucky? You're not alone. Many first-time homebuyers assume that any employment gap means instant rejection. The good news: FHA's rules are far more flexible than most people realize.

This comprehensive guide covers everything Kentucky homebuyers need to know about FHA job gap requirements, employment stability standards, and how to document your income history to qualify for an FHA mortgage.

---

FHA's Two-Year Employment Requirement: What It Really Means

One of the biggest misconceptions about FHA loans is that you must work for the same employer for two full years. This simply isn't true.

FHA doesn't require employment continuity with a single employer. Instead, mortgage lenders verify your overall employment and income stability over the past 24 months. This means FHA evaluators look at the complete picture of your work history, not just tenure at one job.

When reviewing your employment history, FHA-approved lenders examine:

• Job changes and transitions between employers
• Periods of unemployment or gaps in employment
• Changes in industry, career field, or job title
• Income patterns, consistency, and growth over time
• Explanation letters for any breaks in employment

Even minor gaps—sometimes just one month—typically require written explanation from the borrower. This documentation helps lenders understand the context behind employment interruptions and assess your likelihood of continued income.

---

FHA Job Gaps Longer Than Six Months: How They're Evaluated

A job gap lasting six months or longer does trigger additional FHA scrutiny, but it doesn't automatically disqualify you. FHA guidelines allow your income to be counted for qualifying purposes as long as two key conditions are met:

• Return to stable employment: You must have been back to work for at least six months in your current position or in a similar line of work
• Prior work history: You can demonstrate a stable two-year employment history before the gap occurred

The types of employment history that count toward this requirement include:

• Traditional W-2 employment with previous employers
• Industry-specific training or apprenticeships
• Educational programs and vocational certifications
• Military service (full or part-time)
• Self-employment in your field

The key principle is demonstrating that you have a consistent pattern of work and income—with a reasonable explanation for the interruption.

---

Acceptable Reasons for Employment Gaps in FHA Underwriting

FHA underwriters understand that real life happens. The program was created to help working families, including those with imperfect employment histories. FHA permits and accepts employment gaps for the following reasons:

• Job loss: Layoffs, company closures, or reductions in force
• Medical hardship: Illness, injury, or recovery requiring time away from work
• Family leave: Parental leave, childcare responsibilities, or family caregiving
• Education and training: Pursuit of certifications, degrees, or vocational training
• Seasonal employment: Natural gaps in seasonal, cyclical, or project-based work
• Military service: Active duty, reserve service, or transition periods
• Relocation: Job search during a move to a new geographic area

What matters most is that you can document the reason for the gap and demonstrate that you've returned to stable, ongoing employment. Your current job should show signs of stability and reasonable likelihood of continuation.

---

How FHA Treats Variable and Irregular Income

Not all income is earned the same way. Certain income sources fluctuate by nature, so FHA requires longer documentation periods to prove they're reliable.

FHA allows lenders to count the following variable income types toward your qualifying income:

• Overtime pay
• Bonus compensation
• Commission-based earnings
• Part-time employment
• Seasonal work
• Freelance or contract income

The requirement: You must show at least 24 months of consistent history with this income type. Alternatively, if you have strong evidence that this income is expected to continue—such as a new employment contract or documented growth trend—lenders may use shorter history periods.

For example, if you earn significant commission income, your lender will review your past two years of tax returns and pay stubs to calculate an average. If the average is stable or increasing, it typically qualifies for your mortgage application.

---

Self-Employment and FHA Job Gap Rules

Self-employed borrowers face somewhat stricter requirements because business income can be variable and subject to change. Typically, FHA requires a minimum two-year history of self-employment to use business income for qualifying.

However, FHA does allow exceptions if:

• You previously worked in the same field before becoming self-employed, or
• You completed formal education, training, or apprenticeship directly related to your business before launching it

When evaluating self-employment income, FHA lenders review:

• Two years of complete federal tax returns (1040 with Schedule C)
• Year-to-date profit and loss statements
• Evidence of business stability and positive cash flow
• Professional assessment of whether the business will likely continue

Self-employed borrowers should maintain organized business records and be prepared to explain their business model and income projections during the FHA application process.

---

Does FHA Require Two Years With the Same Employer? No.

This myth persists among homebuyers, but it's simply not true. Let's clear up what FHA actually requires versus common misconceptions:

FHA Does NOT Require:

• Two consecutive years working for the same employer
• Two years in the same job title or position
• Two years of full-time employment only
• Zero employment gaps or job changes

FHA DOES Require:

• A verifiable two-year work history (with documented explanations for gaps)
• Current employment that's stable and likely to continue
• Demonstrated income stability and consistency
• Reasonable likelihood that you'll continue earning current income

The focus is on stability and income continuity, not rigid employment tenure. Job changes are normal, and FHA recognizes this. As long as you can explain your employment moves and show stable income, you'll likely qualify.

---

Kentucky FHA Borrowers: What You Need to Qualify With a Job Gap

If you've experienced job changes, periods of unemployment, or employment transitions, you can still qualify for an FHA loan in Kentucky. Use this checklist to ensure you're prepared:

• Document every gap: Have a written explanation for any employment interruption, even brief ones
• Verify your stability: Show that you're currently employed in a stable position
• Follow the six-month rule: If your gap was longer than six months, ensure you've been back to work for at least six months
• Build your history: Demonstrate a solid two-year work history prior to any long gap
• Gather supporting documents: Prepare pay stubs, W-2 forms, offer letters, and employment verification letters

FHA loans exist to help real working people achieve homeownership—not just those with perfect employment records. With proper documentation and stable current employment, employment gaps won't derail your path to homeownership in Kentucky.

---

Ready to Apply for a Kentucky FHA Mortgage?

If you have employment gaps, job changes, or variable income and want to explore FHA financing, I can provide a personalized review of your situation and qualifying options.

As a mortgage specialist focused on Kentucky first-time homebuyers for over 20 years, I've helped more than 1,300 families qualify for FHA loans—many with complex employment histories. I can guide you through the documentation process and connect you with loan programs designed to fit your specific circumstances.

Contact me today for a free, no-obligation FHA eligibility review:

Joel Lobb

Mortgage Loan Officer – FHA, VA, USDA & KHC Specialist

NMLS Personal ID: 57916 | Company NMLS ID: 1738461

📧 Email: kentuckyloan@gmail.com

📞 Phone/Text: (502) 905-3708

🌐 www.mylouisvillekentuckymortgage.com

Equal Housing Lender | Independent platform providing expert mortgage guidance to Kentucky homebuyers

FHA's 2-Year Employment Requirement

Understanding the Timeline: What FHA Actually Looks At

24m

Today

Current Employment

12m

12 Months Ago

Job History Review

24m

24 Months Ago

Full 2-Year Period

FHA Reviews: Overall employment stability over 24 months, NOT continuous employment with one employer

The 6-Month Rule for Job Gaps

When Employment Gaps Longer Than 6 Months Apply

6+ Months

Employment Gap

You Can Still Qualify If:

• Back to work for at least 6 months
• Current job is stable
• 2-year history before the gap
• Can explain the gap reason
• Reasonable income expectations

Acceptable Reasons for Employment Gaps

FHA Understands Life Happens

📉

Job Loss

Layoffs, company closures, or reduction in force

🏥

Medical Issues

Illness, injury, or recovery time

👶

Family Leave

Parental leave or childcare responsibilities

🎓

Education

Certifications, degrees, or training programs

🌾

Seasonal Work

Cyclical or seasonal employment gaps

🪖

Military Service

Active duty or transition periods

Variable Income Types FHA Accepts

Earn Different Ways? FHA Has You Covered

⏰ Overtime

24-month history

💰 Bonuses

24-month history

📊 Commission

24-month history

🕐 Part-Time

24-month history

🌾 Seasonal

24-month history

💼 Freelance

24-month history

All variable income types require consistent 24-month documentation or strong evidence of continuation

FHA Job Gap Myths vs Reality

Stop Believing These Common Misconceptions

❌ FHA Myths

• You need 2 years with same employer
• Any gap disqualifies you
• You can't have job changes
• Only full-time work counts
• Perfect employment history required

✓ FHA Reality

• 2-year work history (any employers)
• Gaps OK if documented & explained
• Job changes are normal & acceptable
• Part-time & variable income OK
• Real-world work history accepted

Example: How FHA Views Your Employment History

A Real-World Scenario

24 Months Lookback:

Job 1: 10mo

Gap: 2mo

Job 2: 10mo

✓ FHA Says: "This applicant has solid employment history with a minor gap. The gap is explained, and they're currently stable. APPROVED."

Qualification Checklist for Kentucky FHA Borrowers

Get Ready to Apply

✓ Are You Ready?

• Documentation: Written explanations for all employment gaps (even brief ones)
• Stability Proof: Evidence of current stable employment
• 6-Month Rule: If gap was 6+ months, you've been back to work 6+ months
• History: Solid 2-year work history before any long gaps
• Documents: Pay stubs, W-2s, offer letters, verification letters ready
• Income Calculation: 24-month average for variable income documented

How much income do I need qualify for Kentucky Home Loan?

Mortgage DTI Ratio Guide: How Much Income Do You Need To Qualify In Kentucky?

A practical Kentucky-focused guide to debt-to-income ratios, front-end and back-end limits, and how FHA, VA, USDA, KHC, and Conventional lenders calculate what you qualify for.

Quick navigation

Overview What is DTI? Front vs Back Loan programs Manual vs AUS Calculator Improve DTI Real example Contact Joel

Understanding How Lenders Look At Your Income In Kentucky

When you apply for a mortgage in Kentucky, lenders look past the sales price and interest rate. They want to know how much of your monthly income is already spoken for. That is where your debt-to-income ratio, or DTI, comes in.

Your DTI ratio compares your total monthly debt payments to your gross monthly income. It is one of the biggest drivers of approval, loan amount, and pricing for FHA, VA, USDA, KHC, and Conventional loans.

Key idea: a strong DTI can offset a mid-range credit score, but a weak DTI can kill a file even with great credit.

What Is Debt-To-Income (DTI) And Why It Matters

Debt-to-income ratio is the percentage of your gross monthly income that goes toward required monthly debt payments. Lenders use it to measure whether you can safely take on a new mortgage payment on top of your existing obligations.

Formula:

Total monthly debt payments ÷ gross monthly income × 100 = DTI percentage

Example: if you earn 5,000 per month and have 2,000 in total monthly debt (including the new house payment), your DTI is 40 percent.

Front-End Versus Back-End DTI Ratios

Lenders run two separate DTI tests on every file: the front-end ratio and the back-end ratio.

Front-end ratio (housing ratio)

Measures how much of your gross monthly income goes only to the house payment:

• Principal
• Interest
• Property taxes
• Homeowners insurance
• Mortgage insurance, if applicable

For FHA, a typical guideline is around 31 percent of gross income.

Back-end ratio (total DTI)

Measures all required monthly debts including the new house payment:

• New mortgage payment (PITI)
• Credit card minimums
• Auto loans
• Student loans
• Child support or alimony
• Personal loans and 401(k) loans

Utilities, cell phone, car insurance, groceries, and streaming services do not count in DTI.

Most Kentucky lenders want to see a total DTI in the low-to-mid forties. Some programs will stretch higher with strong credit, savings, or residual income.

Typical DTI Guidelines By Loan Program In Kentucky

Exact approval limits come from automated underwriting findings, but these ranges are a realistic working grid for Kentucky files.

Loan program	Front-end	Back-end	Notes
FHA	Around 31 percent	43–50 percent with AUS and compensating factors	Popular for first-time buyers and mid-range credit scores.
VA	No strict front-end; 41 percent used as a guide	41–55 percent depending on residual income	Zero down, no monthly mortgage insurance; residual income is critical.
USDA	About 29–32 percent	Around 41–43 percent	Zero down for eligible rural areas; tighter on DTI than FHA.
KHC	Around 31–32 percent	43–45 percent depending on program	Used with FHA, VA, USDA, or Conventional plus down payment assistance.
Conventional (Fannie/Freddie)	Around 28 percent	Up to 49.9 percent with strong AUS approval	Best pricing for well-qualified borrowers with solid credit.

Automated Findings Versus Manual Underwriting

Most Kentucky loans run through automated underwriting systems such as Desktop Underwriter, Loan Product Advisor, or USDA and VA equivalents. These engines have hard-coded DTI caps that cannot flex.

When a file is strong overall but just outside the automated DTI box, a manual underwriter can sometimes step in and approve the loan by looking at the full picture.

Automated underwriting (AUS)

• Fast decisions based on credit, DTI, assets, and property data
• DTI limits are strict; the engine cannot use judgment
• Ideal for clean, well-qualified files

Manual underwriting

• Human underwriter reviews the full story
• Can allow higher DTIs with strong compensating factors
• Common on FHA, VA, USDA, and some KHC loans

Manual underwriting is often the difference between a denial and an approval for borrowers who are a few points over standard DTI limits but have stable income, cash reserves, or strong payment history.

Residual Income And Disposable Cash Flow

DTI is not the only way to look at risk. Some programs, especially VA, put heavy weight on residual income, which is the money left over after all debts, taxes, and basic living expenses are paid.

Strong residual income can tip a borderline DTI file into an approval because it shows the borrower has room to absorb surprises, repairs, and lifestyle costs beyond the minimum debt obligations.

Kentucky DTI Mortgage Calculator

Use this quick calculator to estimate the maximum monthly mortgage payment you can carry under common Kentucky guidelines. This is a rough planning tool, not a final approval decision.

Loan program preset FHA (31 / 43) VA (41 back-end guide) USDA (29 / 41) Conventional (28 / 36) Custom

Gross monthly income (before taxes)

Existing monthly debts from credit report

Include car loans, credit cards, student loans, child support, and other required payments.

Front-end percent

Back-end percent

Results

Front-end maximum payment

$0.00

Back-end maximum capacity

$0.00

Including current debts

Estimated maximum mortgage payment (PITI)

$0.00

Includes principal, interest, taxes, homeowners insurance, and any mortgage insurance.

Enter your income and debts to estimate how much house payment fits typical DTI rules.

This tool is for educational estimates only and is not a credit decision. Actual approvals follow AUS findings and full underwriting review.

Practical Ways To Improve Your DTI Before You Apply

If your current DTI is on the high side, a few focused moves can open up more approval options and price ranges.

Pay down or eliminate small monthly debts

Target revolving credit cards and small installment loans first. Every 50 to 100 dollars in monthly payment reduction directly lowers your DTI and raises what you qualify for.

Avoid taking on new debt before closing

New car loans, furniture financing, or large credit card purchases right before or during the mortgage process can push your DTI over the limit and cost you the approval.

Consider a co-borrower with income and low debt

A spouse or co-borrower with strong income and minimal monthly obligations can materially improve the combined DTI on the file. Their debts count too, so the profile has to make sense overall.

Look at program fit instead of forcing one product

A file that is tight for Conventional may be completely workable under FHA, VA, USDA, or KHC guidelines. Matching income, credit, and DTI to the right program is where an experienced local loan officer earns their keep.

Real Kentucky Example: 5,000 Monthly Income And 1,000 In Debts

Here is a simple FHA-style scenario for a borrower in Kentucky earning 5,000 per month with 1,000 in monthly debts on the credit report.

Item	Calculation	Amount
Gross monthly income	Stated	5,000
Front-end limit (31 percent)	5,000 × 0.31	1,550
Back-end limit (43 percent)	5,000 × 0.43	2,150
Existing debts	Car, cards, student loans	1,000
Back-end room for house payment	2,150 − 1,000	1,150
Estimated maximum PITI payment	Lower of 1,550 and 1,150	1,150 per month

Depending on rate, taxes, and insurance, a payment in this range might support a price point somewhere around the high 100s to low 200s in many Kentucky markets. Exact numbers require a full quote.

Want To Know Exactly How Much House You Qualify For In Kentucky?

A quick pre-approval conversation can take the guesswork out of DTI. We can run your income, debts, and credit through multiple Kentucky lenders and programs and show you real numbers instead of rough estimates.

Email

kentuckyloan@gmail.com

Call or text

502-905-3708

Website

MyLouisvilleKentuckyMortgage.com

FHA, VA, USDA, KHC, and Conventional options available. First-time homebuyers welcome.

Joel Lobb • Mortgage Loan Officer • Expert on Kentucky Mortgage Loans

EVO Mortgage • Company NMLS 1738461 • Personal NMLS 57916 • Equal Housing Lender

This content is for educational purposes only and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property acceptance. DTI guidelines and program terms are subject to change.

4 Things Every Borrower Needs to Know to Get Approved for a Mortgage Loan In Kentucky

Thank you for visiting. I hope you find this website both informative and empowering as you explore your Kentucky mortgage options. My goal is to help you feel confident in selecting the right home loan for your unique situation.

I proudly serve all 120 counties in Kentucky, offering a full range of mortgage loan programs, including:

• FHA Loans

• VA Loans

• USDA Rural Housing Loans

• Fannie Mae Conventional Loans

• KHC Down Payment Assistance Programs

With over 20 years of lending experience, I’ve had the privilege of helping more than 1,300 Kentucky families achieve their homeownership goals. Whether you're a first-time homebuyer or seeking a second opinion, I’m here to offer honest, no-pressure advice—always free of charge.

I am dedicated to:

• Attending as many closings as possible

• Providing responsive, personalized service

• Ensuring quick, efficient, and accurate loan processing

• Making myself accessible every step of the way

I've been consistently recognized as a top mortgage loan officer in Kentucky for VA, FHA, USDA, and KHC programs. I take pride in being thorough, transparent, and attentive with each and every client.

Please take a moment to read my reviews below. If you have questions or need guidance, feel free to call or text me directly.

Chasity Wray

I would 100% recommend Joel & Dawn! They helped make a goal for my family a reality. From start to finish they helped me every step of the way. I will forever be thankful for them. Day or night, any worry or thought I had I never had to wait for a response, they really kept me sane during the stresses of being a first time buyer. I found Joel on YouTube when I was doing research before I decided to start the process of buying, turned out he was actually right here in Kentucky and so it was meant for me to go with them! Thank you both for everything, The Wray Family! 

Cee Bell

10 reviews

Absolutely Amazing!! I emailed Joel after I had just got a denial from a bank and just thought i would try to get some advice on what my next steps would be to get a house. I honestly didn't expect to even get a reply because my credit is not great. That was about a week and a half ago. I just signed a contract on a house last night. ONLY because of Joel Lobb. He even worked with us throughout the weekend, which shocked me. Best decision I have ever made. THANK YOU SO MUCH FOR WORKING WITH US THROUGHOUT THE ENTIRE PROCESS

2 reviews


We were afraid we wouldn’t get approved for a loan because we didn’t have the best credit scores. But with Joel’s help he got us approved for a FHA. We closed on our home about 2 weeks ago! Joel was quick at responding to any of our questions and concerns. He was polite and professional when it came to our needs. We couldn’t have done this without Joel! THANKS AGAIN

Beth Ratliff

5  reviews • 

Absolutely the best experience buying my home. Everyone else turned me away. I done a google search for lenders and found Joel, and he gave me a chance. I faced a lot of personal road blocks during this process but he stuck it out with me. I was guided on what needed to be done and trusted his guidance wholeheartedly. We finally made it to the end and I worked with a lady named Dawn. She as well seen road blocks I encountered but stuck it out with me also. I emailed them with more questions than I should have, and they probably wished I didn’t send so many haha but they never failed to respond. If anyone can take owning a home from a dream to a reality, it’s Joel and his team!

Oggie Hall

5 reviews •

Mr. Joel Lobb was an important part of why we had a successful and very pleasant experience in purchasing our new home, he was very professional and knowledgeable in the process . He explained what we was to expect and was there for us as new home buyers in our corner every day and night I would recommend him to anyone and everyone he is a must have in your home buying journey.

Brandon Crook
3 reviews 

Thank god for this man. He is amazing. He Helped me from start to finish. When I first started looking for a house I knew nothing about the process or what it took to purchase a home. He broke everything down from start to finish. Helped me to get get my credit in order. Very professional and knowledgeable gentleman. If you are a first time home buyer or this is your 10th home. This is the man you need to see ASAP! I greatly appreciate everything he has done for my family. We love our new home! I can’t thank him enough! 10 stars!!!

The 4 things below underwriters review for a Mortgage Loan Approval 
⬇️

1. Income

You need income. You need to be able to afford the home. But what is acceptable income? Let’s just say that there are two ratios mortgage underwriters look at to qualify you for mortgage payment:

First Ratio – The first ratio, top ratio or housing ratio. Basically, that means out of all the gross monthly income you make, that no more that X percent of it can go to your housing payment. The housing payment consists of Principle, Interest, Taxes and Insurance. 

Whether you escrow or not every one of these items are factored into your ratio. There are a lot of exceptions to how high you can go, but let’s just say that if your ratio is 33% or less, generally, across the board, you’re safe.

Second Ratio- The second ratio, bottom ratio or debt ratio includes the housing payment, but also adds all of the monthly debts that the borrower has. So, it includes housing payment as well as every other debt that a borrower may have. 

This would include, Auto loans, credit cards, student loans, personal loans, child support, alimony…. basically any consistent outgoing debt that you’re paying on. Again, if you’re paying less than 45% of your gross monthly income to all of the debts, plus your proposed housing payment, then……generally, you’re safe. You can go a lot higher in this area, but there are a lot of caveats when increasing your back ratio.

What qualifies as income? 

Basically, it’s income that has at least a proven, two-year history of being received and pretty high assurances that the income is likely to continue for at least three years. What’s not acceptable? Unverifiable cash income, short term income and income that’s not likely to continue like unemployment income, student loan aid, VA education benefits, or short-term disability are not allowed for a mortgage loan.

2. Assets

What the mortgage underwriter is looking for here is how much can you put down and secondly, how much will you have in reserves after the loan is made to help offset any financial emergencies in the future.

Do you have enough assets to put the money forth to qualify for the down payment that the particular program asks for? 

The only 100% financing or no money down loans still available in Kentucky for home buyers are available through USDA, VA, and KHC or Kentucky Housing Loans. Most other home buyers that don't qualify for the no money down home loans mentioned above, will turn to the FHA program. 

FHA loans currently requires a 3.5% down payment and Fannie Mae, or Conventional loans require a 3% to 5% down payment. The more you put down, the better your rate and terms usually and your chances of qualifying.

Kentucky Home buyers that have access to putting down at least 5% or more, will usually turn to Fannie Mae or Freddie Mac mortgage programs so they can get better pricing when it comes to mortgage insurance.

These assets need to be validated through bank accounts, 401k or retirements account and sometimes gifts from relatives or employer. Can you borrow the down payment? Sometimes.

 Generally, if you’re borrowing a secured loan against a secured asset you can use that. But rarely can cash be used as an asset. 

FHA will allow for gifts from relatives for down payments with little as 3.5% down but Fannie Mae will require a 20% down payment when a gift is being used for the down payment on the home.

The down payment scenarios listed above are for Kentucky Primary Residences only. There are stricter down payment requirements for investment homes made in Kentucky.

3. Credit

580 to 620 is the bottom score (again with few exceptions) that lenders will permit. Below a 620, then you have to look at doing a FHA loan or VA loan if you are a veteran. Even at 620, people consider you a higher risk that other folks and are going to penalize you or your borrower with a more expensive loan. 720 is when you really start to get in the “as a lender we love you” credit score. 760 is even better.

 Watch your credit scores carefully. You have three credit scores, and the lender will take your middle score. For example, let's say you have a 590 on Transunion, 679 on Experian, and a 618 on Equifax. Then your middle qualifying credit score will be 618 credits score.

If you absolutely cannot get your credit scores up to 620, then FHA will be a good option for you. FHA states that if your fico credit score is 580 or above, they will allow for a 3.5% down payment, and if below 580, you will need 10% down payment.

There are a lot of mortgage lenders that will not go below 580 to 620 range, so keep that in mind when you are shopping for a mortgage lender, because they create credit overlays.

Kentucky FHA Mortgage Loans currently requires 3 years removal from a foreclosure or short sale and 2 years on a bankruptcy with good reestablished credit.

Kentucky Fannie Mae Mortgage Loans currently requires 4 years removal from a bankruptcy, and 7 years on a foreclosure.

Kentucky VA Mortgage Loans currently requires 2 years removal from a bankruptcy or foreclosure with good, reestablished credit.

Kentucky USDA loans require 3 years removal from bankruptcy and foreclosure with good re established credit.

Which credit score is used to qualify for a Mortgage loan in Kentucky?

4. Appraisal

Generally, there’s nothing you can do to affect this. Bottom line here is…..”is the value of the house at least the value of what you’re paying for it?” If not, then not good things start to happen. Generally you’ll find less issues with values on purchase transactions, because, in theory, the realtor has done an accurate job of valuing the house prior to taking the listing. The big issue comes in refinancing. In purchase transactions, the value is determined as the


Lower of the value or the contract price!!!


That means that if you buy a $1,000,000 home for $100,000, the value is established at $100,000. Conversely, if you buy a $200,000 home and the value comes in at $180,000 during the appraisal, then the value is established at $180,000. Big issues….Talk to your loan officer.



For each one of these boxes, there are over 1,000 things that can effect if a borrower has reached the threshold to complete that box. Soo…..talk to a great loan officer. There are so many loan officers that don’t know what they’re doing. But, conversely, there’s a lot of great ones as well. Your loan is so important! Get a great lender so that you know, for sure, that the loan you want, can be closed on!

5 Most Popular Kentucky Home Loan Programs below:⬇️

Conventional Loan

• At least 3%-5% down

• Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home.

Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.

KENTUCKY FANNIE MAE LOAN LIMITS IN 2026 FOR CONVENTIONAL MORTGAGE LOANS

Kentucky 2026 Conforming Loan Limits

• 1-Unit Property: $819,000

• 2-Unit Property: Higher limits

• 3–4 Unit Properties: Elevated limits

These new limits allow Kentucky homebuyers to finance larger homes while still qualifying for conforming loans, avoiding the stricter requirements and higher rates of jumbo loans.

The FHFA determines the conforming loan limit each year, basing it on the average U.S. home value over the past four quarters.

Kentucky USDA Rural Housing Program

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.

Fico scores ****.usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.

They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in an rural area.

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern Kentucky .

There is a map link below to see the qualifying areas.

Income Limits for: Most Locations

New Kentucky USDA Rural Housing  Income limits for most counties in 2024 (*) in Kentucky are $112,450 for a household family of four and household families of five or more  can make up to $148,450 with the new changes for 

2025 Kentucky USDA Income limits, 

2025 Kentucky USDA Rural Housing Income Limits by County Type

🏠 Standard Kentucky Counties

USDA Rural Housing Loan Limits 2025:

$119,850

1–4 Person Household Income Limit

$158,250

5–8 Person Household Income Limit

🏙️ Northern Kentucky Metro Counties

Higher USDA Income Limits 2025:

$128,600

1–4 Person Household Income Limit

$169,800

5–8 Person Household Income Limit

Kentucky USDA Rural Housing 2025 Higher Income Limits Apply To: Boone County, Campbell County, Gallatin County, and Kenton County (Cincinnati MSA counties qualify for increased USDA rural development loan limits)

USDA requires 3 years removed from bankruptcy and foreclosure.

There is no max USDA loan limit.

Add caption

Kentucky FHA Loan

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score.

The current mortgage insurance requirements are kind of steep when compared to USDA, VA , but the rates are usually good so it can counteracts the high mi premiums.

As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.

The mi premiums are for life of loan like USDA.

FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure.

The new Kentucky FHA Mortgage Loan Limits for for FHA case numbers assigned on or after January 1, 2025:

Property Size	Low-Cost Area “Floor”	High-Cost Area “Ceiling”	Alaska, Hawaii, Guam, and U.S. Virgin Islands “Ceiling”1
One Unit	$524,225	$1,209,750	$1,814,625
Two Units	$671,200	$1,548,975	$2,323,450
Three Units	$811,275	$1,872,225	$2,808,325
Four Units	$1,008,300	$2,326,875	$3,490,300

Kentucky VA Loan

VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have an funding fee like USDA, but it is higher starting at 2.3% for first time use, and 3.6% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.

VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit.

Most VA lenders I work with will want a 580 credit score even though on paper, VA says they don't have a minimum credit score.

VA requires 2 years removed from bankruptcy or foreclosure.

VA Loan Limits for 2025 in Kentucky

As announced previously by VA in Circular 26-19-30 (which provides interim guidance on implementing "The Blue Water Navy Vietnam Veterans Act of 2019") the conforming loan limit cap on guarantees was removed for Veterans with full entitlement. For Veterans who have previously used entitlement and the entitlement has not been restored, the maximum amount of guaranty entitlement available to the Veteran (for a loan above $144,000) is 25 percent of the conforming loan limit reduced by the amount of entitlement previously used (not restored) by the Veteran. 

As a reminder, Veterans are able to use their VA Home Loan Guaranty benefit regardless of loan amount, but in order to purchase homes with loan amounts above the conforming loan limits, Veterans with partial entitlement may be required to make a down payment on amounts in excess of the conforming loan limit. Regardless of full or partial entitlement, the VA guaranty plus any required down payment must total 25% of the loan amount.

Kentucky Down Payment Assistance

 KHC Loan (Kentucky Housing Loan with Down Payment Assistance)

 

The first no money-down home  loan program offered by Kentucky Housing and other lenders in the state of Kentucky currently offers up to $10,000 in down payment assistance (DAP) 

     

• Informational Flyer
  
• First-time homebuyers statewide in non-targeted areas​​
  
• First-time and repeat homebuyers statewide in targeted areas
  
• 30-year fixed interest rate
  
• Principal residence ONLY
  
• Purchase Price Limit: $544,232
  
• Borrower must meet KHC's MRB Income Limits
  

​​​​

​​​​​Secondary Market Funding Source

• First-time and repeat homebuyers statewide
  
• 30-year fixed interest rate
  
• Principal residence ONLY
  
• Purchase Price Limit:  $544,232​
  
• Borrower must meet KHC's Se​​condary Market Income Limits

  

    Need to be 2 years removed from a Chapter 7 Bankruptcy and 3 years removed from a foreclosure.

 

Kentucky First Time Home Buyer Common Questions and Answers below:👇

∘ What kind of credit score do I need to qualify for different first time home buyer loans in Kentucky?

Answer. Most lenders will wants a middle credit score of 620 to 640 for KY First Time Home Buyers looking to go no money down. The two most used no money down home loans in Kentucky being USDA Rural Housing and KHC with their down payment assistance will want a 620 to 640 middle score on their programs.


If you have access to 3.5% down payment, you can go FHA and secure a 30 year fixed rate mortgage with some lenders with a 580 credit score. Even though FHA on paper says they will go down to 500 credit score with at least 10% down payment, you will find it hard to get the loan approved because lenders will create overlays to protect their interest and maintain a good standing with FHA and HUD.


Another popular no money down loan is VA. Most VA lenders will want a 620 middle credit score but like FHA, VA on paper says they will go down to a 500 score, but good luck finding a lender for that scenario.


A lot of times if your scores are in the high 500’s or low 600’s range, we can do a rapid rescore and get your scores improved within 30 days.

∘ Does it costs anything to get pre-approved for a mortgage loan?

Answer: Most lenders will not charge you a fee to get pre-approved, but some lenders may want you to pay for the credit report fee upfront. Typically costs for a tri-merge credit report for a single borrower runs about $50 or less. Maybe higher if more borrowers are included on the loan application.

∘ How long does it take to get approved for a mortgage loan in Kentucky?

Answer: Typically if you have all your income and asset documents together and submit to the lender, they typically can get you a pre-approval through the Automated Underwriting Systems within 24 hours. They will review credit, income and assets and run it through the different AUS (Automated Underwriting Systems) for the template for your loan pre-approval. Fannie Mae uses DU, or Desktop Underwriting, FHA and VA also use DU, and USDA uses a automated system called GUS. GUS stands for the Guaranteed Underwriting System.


If you get an Automated Approval, loan officers will use this for your pre-approval. If you have a bad credit history, high debt to income ratios, or lack of down payment, the AUS will sometimes refer the loan to a manual underwrite, which could result in a longer turn time for your loan pre-approval answer

∘ Are there any special programs in Kentucky that help with down payment or no money down loans for KY First Time Home Buyers?

Answer: There are some programs available to KY First Time Home Buyers that offer zero down financing: KHC, USDA, VA, Fannie Mae Home Possible and HomePath, HUD $100 down and City Grants are all available to Kentucky First Time Home buyers if you qualify for them. Ask your loan officer about these programs

∘ When can I lock in my interest rate to protect it from going up when I buy my first home?

Answer: You typically can lock in your mortgage rate and protect it from going up once you have a home picked-out and under contract. You can usually lock in your mortgage rate for free for 90 days, and if you need more time, you can extend the lock in rate for a fee to the lender in case the home buying process is taking a longer time. The longer the term you lock the rate in the future, the higher the costs because the lender is taking a risk on rates in the future.


Interest rates are kind of like gas prices, they change daily

∘ How much money do I need to pay to close the loan?

Answer: Depending on which loan program you choose, the outlay to close the loan can vary. Typically you will need to budget for the following to buy a home: Good faith deposit, usually less than $500 which holds the home for you while you close the loan. You get this back at closing; Appraisal fee is required to be paid to lender before closing. 

Typical costs run around $500-$650 for an appraisal fee; home inspection fees. Even though the lender’s programs don’t require a home inspection, a lot of buyers do get one done. The costs for a home inspection runs around $300-$400. 

Lastly, termite report. They are very cheap, usually $50 or less, and VA requires one on their loan programs. FHA, KHC, USDA, Fannie Mae does not require a termite report, but most borrowers get one done.


There are also lender costs for title insurance, title exam, closing fee, and underwriting fees that will be incurred at closing too. You can negotiated the seller to pay for these fees in the contract, or sometimes the lender can pay for this with a lender credit. The lender has to issue a breakdown of the fees you will incur on your loan pre-approval.

How long is my pre-approval good for on a Kentucky Mortgage Loan?

Answer: Most lenders will honor your loan pre-approval for 120 days. After that, they will have to re-run your credit report and ask for updated pay stubs, bank statements, to make sure your credit quality and income and assets has not changed from the initial loan pre-approval.

How much money do I have to make to qualify for a mortgage loan in Kentucky?

Answer: The general rule for most FHA, VA, KHC, USDA and Fannie Mae loans is that we run your loan application through the Automated Underwriting systems, and it will tell us your max loan qualifying ratios.


There are two ratios that matter when you qualify for a mortgage loan. The front-end ratio, is the new house payment divided by your gross monthly income. The back-end ratio, is the new house payment added to your current monthly bills on the credit report, to include child support obligations and 401k loans.

Car insurance, cell phone bills, utilities bills does not factor into your qualifying rations.

If the loan gets a refer on the initial desktop underwriting findings, then most programs will default to a front end ratio of 31% and a back-end ratio of 43% for most government agency loans that get a refer. You then take the lowest payment to qualify based on the front-end and back-end ratio.

So for example, let’s say you make $3000 a month and you have $400 in monthly bills you pay on the credit report. What would be your maximum qualifying house payment for a new loan?

Take the $3000 x .43%= $1290 maximum back-end ratio house payment. So take the $1290-$400= $890 max house payment you qualify for on the back-end ratio.

Then take the $3000 x .31%=$930 maximum qualifying house payment on front-end ratio.

So now you know! The max house payment you would qualify would be the $890, because it is the lowest payment of the two ratios.

10 mortgage facts will give you an advantage when shopping for a home loan in KY!👇

1. Mortgage Rates Change

Just like the stock market, mortgage rates change throughout the day. Mortgage rates you see today may not be available tomorrow. If you are in the market for a mortgage loan, be sure to check the current rates being offered by lenders. If you have already done your research and have found your dream home consider locking in your rate as soon as possible.



2. Different Lenders Charge Different Fees


Don’t expect every lender to charge the same fees for a mortgage loan. Every lender structures their fees differently, which is why it is important to shop with at least 3 lenders to compare. Next time you apply for a mortgage loan pay attention to the rates, points being charged and closing costs.



3. Lenders Can Sell Your Loan to Another Bank


Many borrowers have experience getting a mortgage loan with a certain lender only to find out that the loan has been sold to another bank. This occurs because lenders need to free up their liabilities in order to make room to give out more loans. This does not affect your mortgage whatsoever, but it’s important to pay close attention to your mortgage statement and any correspondence you receive in the mail to make sure you do not make payments to the wrong bank.



4. Your Middle Credit Score Matters



When you apply for a mortgage loan, the lender will pull your credit scores from three credit bureaus (Transunion, Equifax and Experian) to help them determined if you are credit worthy. Your middle score of the three is what lenders will use for loan qualification. However, the underwriter will review all three scores as part of the loan underwriting process. If you pull your own credit score through a website online, the credit scores displayed to you may be different than what lenders use because they use different reporting systems.



5. You Can Refinance Your Home Loan Anytime



You can refinance your mortgage anytime, but it doesn’t necessarily mean you should. Think about why you want to refinance. Is because you want to lower your monthly payments, to change the type of loan you are in or to take cash out from your equity? Whatever the reason is, make sure that it makes financial sense.


6. You Can Get a Mortgage Loan After a Foreclosure


Many homeowners have experienced a foreclosure after the recent mortgage crisis. There is good news for these borrowers because they can get a mortgage loan after foreclosure. There are waiting periods involved, for example, to apply for an FHA loan you must wait three years after foreclosure to apply. If you want to get a conventional loan the waiting period is seven years from foreclosure. For those seeking a VA loan, the waiting period is two-years.


There are exceptions to the waiting periods, but you have to show the lender that your foreclosure was caused by an event outside your control, such as losing your job or being seriously ill.


8. Good Credit Allows you to Get Better Mortgage Rates



Good credit scores mean a better rate in any type of loan, especially a mortgage loan. Your credit heavily impacts the type mortgage loan you will qualify for. To maintain a good credit report, make sure you monitored it closely. One of the advantages to good credit is that more banks will want to compete for your business, therefore giving you leverage to negotiate the closing costs.



9. Know Your Annual Percentage Rate (APR)


Knowing your APR will allow you see the true cost of your loan. While the interest rate shows the annual cost of your loan, the APR includes other fees such as origination points, admin fees, loan processing fees, underwriting fees, documentation fees, private mortgage insurance and escrow fees.


There may be more or less fees included in the ARP from what we mentioned. To be sure what fees are included in the APR, ask your lender to give you a breakdown of the closing costs included.


10. You Can Always Reduce Closing Costs


One way to reduce closing costs is to have the sellers contribute towards the closing costs when purchasing your home. This can be negotiated between the buyer and the sellers in the purchase contract. The amount the seller can contribute will depend on the type of loan. Another way to save on closing costs is to have the lender give you a credit to cover out of pocket loan costs.

I specialize in assisting Kentucky First-Time Homebuyers with mortgage loans, including FHA, VA, USDA & Rural Housing, KHC (Kentucky Housing Corporation), and Fannie Mae programs. With over 20 years of experience in the mortgage industry, I’ve helped more than 1,300 Kentucky families achieve their dream of homeownership or refinance their current mortgages to secure lower payments.

Whether you’re a first-time buyer or looking to refinance, I am here to guide you through every step of the process with personalized attention, expert advice, and the best loan options available to fit your unique needs.

Down Payment Assistance:
For Kentucky first-time homebuyers, we still have down payment assistance available through KHC programs. These funds can make a huge difference in reducing upfront costs and making homeownership more accessible.

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.

 Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

Licensing Info: Kentucky Mortgage Loan Only

NMLS Personal ID: 57916

Company NMLS ID: 1738461
www.nmlsconsumeracces.org
Equal Housing Lender

---

 

NMLS 57916  | Company NMLS #173846

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.
(www.nmlsconsumeraccess.org).

PITI Mortgage Calculator

Loan Amount ($)

Annual Interest Rate (%)

Loan Term (Years)

Annual PMI Rate (%) (optional)

Annual Property Taxes ($) (optional)

Annual Home Insurance ($) (optional)

Estimated Payments

Total Estimated Monthly Payment (PITI)

-

Principal & Interest (P&I)

-

Monthly PMI

-

Monthly Property Tax

-

Monthly Home Insurance

-

Loan Summary

Total P&I Paid (Loan Term)

-

Total Interest Paid (Loan Term)

-

*Estimates are for informational purposes and don't constitute financial advice. PMI is calculated on the initial loan amount for the term specified; actual PMI may vary and might be cancellable. Property taxes and home insurance can change over time.