Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Down Payment Assistance Kentucky 2025 Kentucky Ho...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Down Payment Assistance Kentucky 2025 Kentucky Ho...: Kentucky Housing Corporation (KHC) offers a down payment assistance program to help Kentucky First Time Home buyers buy a house with no down...

KENTUCKY VA MORTGAGE LOAN INFORMATION

COMMON KENTUCKY VA LOAN MYTHS FOR KENTUCKY VETERANS AND ACTIVE DUTY BORROWERS

1. VA loans are difficult to qualify for.
2. All VA loans require a down payment.
3. VA loans require private mortgage insurance (PMI).
4. You can't refinance a VA loan.
5. You can only have one VA loan.
6. You can use a VA loan once.
7. VA loans are not assumable.
8. You can't buy land with a VA loan.
9. You can't build a house with a VA loan.
10. VA loans only apply to the home purchase itself.

Is it hard to qualify for a VA loan?

Myth #1: Kentucky VA loans are difficult to qualify for.

Fact: VA loans have fewer credit restrictions compared to conventional loans. These reduced restrictions, like a higher debt-to-income (DTI) ratio and more leniency regarding credit scores, mean it can be easier to qualify. VA has no minimum credit score but lenders will have overlays with most being 620 and some going down to 580, with a few going all the way down to 500 but it is very difficult to get approved at this level --- though each individual case and lender will vary.

Do VA loans require a down payment?

Myth #2: All Kentucky VA loans require a down payment.

Fact: While conventional loans generally require down payment options that can reach up to 20%, no such thing is required with a VA home loan at or under the local conforming limit. Down payments are still an option, of course, but they are not a requirement.

The VA allows you to purchase jumbo loans, but the down payment depends on your entitlement:

• Full entitlement - 100% LTV (loan-to-value) maximum
• Partial entitlement - Maximum loan must be calculated using 25% guarantee of 1 unit county loan limit. Max LTV is lesser of max allowed or LTV required to meet 25% guaranty

Do VA loans have PMI?

Myth #3: VA loans require private mortgage insurance (PMI).

Fact: Private mortgage insurance is not required for VA loans. PMI typically adds 0.2%-0.9% of expenses to your monthly mortgage payments when you put less than 20% down. That’s a big additional expense you don’t have to worry about when you get a VA loan. Remember, VA loans do come with a funding fee.

Can you refinance a VA loan?

Myth #4: You can’t refinance a Kentucky VA loan.

Fact: Thanks to VA streamline and cash-out loan programs, VA loans are actually easier to refinance than conventional mortgages. The streamline version lowers the mortgage rate of an already existing VA loan, usually for less than the current principal and interest. This means it doesn't require a credit check or appraisal. The cash-out option involves a credit check and appraisal, since the home’s value represents the maximum loan amount and the new loan will be larger than the existing loan.

How many VA loans can you have?

Myth #5: You can only have one Kentucky VA loan.

Fact: There is no limit to the number of VA loans you can have. While it is possible to have multiple VA loans at once, this depends on VA loan entitlement. VA loan entitlement refers to the amount that the VA will pay your lender if you default on your loan. There is a limit on your VA entitlement. It can be split across multiple loans but the limit remains the same. For full entitlement, the VA covers:

• Up to $36,000 for loans < $144,000
• Up to 25% for loans > $144,000

If, however, you’ve used a portion of your entitlement in one loan that you’re still actively paying off (or defaulted on), the amount of entitlement you have on any new loan is reduced. This means that you may need to put money down yourself instead of having the usual benefit of a zero down payment for VA loans. To learn about VA loan limits and entitlement, visit us here.

How many times can you use a VA loan?

Myth #6: You can only use a Kentucky VA loan once.

Fact: There is no limit on the number of times you can use the VA loan benefit. You can use the benefit an unlimited number of times throughout your life, as long as you still qualify. To qualify, you need to meet certain requirements, which you’ll already be aware of if you’ve taken out a VA loan in the past. For those who haven’t taken out a VA loan prior, you can learn how to qualify here.

Are VA loans assumable?

Myth #7: Kentucky VA loans are not assumable.

Fact: Federally insured and guaranteed loans are usually assumable. This includes VA loans. What does it mean if a loan is assumable? An assumable mortgage is when the lender allows you, the buyer, to take over the current mortgage that the seller has. This can save a lot of money if the interest rates are lower on the existing mortgage than they would be to take out a new mortgage. Assumable mortgages allow buyers, who otherwise wouldn’t qualify for a VA loan, to take over a VA mortgage. This means that you would get most, if not all, of the benefits that come with VA loan eligibility. In order to assume a VA mortgage, you will need to meet certain requirements, such as:

• acceptable credit history and  credit score
• debt-to-income ratio to meet guidelines 
• No Bankruptcies or foreclosures in last 2 years ( Chapter 7) --Chapter 13 is possible within one year in the plan.
• acceptable work history for last two years
• residual income requirements
• property passing VA standards

You will also be required to pay the VA funding fee that comes with VA loans. This equates to 0.5% of the total loan amount. This may be waived if you’re an eligible military borrower who qualifies for an exemption. Other fees may be required as well.

For sellers, if a non-military borrower assumes your mortgage, your VA entitlement won’t be restored until the loan is paid in full. You will want to request that the lender releases you from liability on the loan to avoid dips in your credit reports if the buyer defaults or makes a late payment.

Can you buy land with a VA loan?

Myth #8: You can’t buy land with a Kentucky VA loan.

Fact: The VA doesn’t authorize buyers to singularly purchase land with a VA loan. However, you can purchase land and build a home on it. This is partially because VA loans are granted with a required occupancy period — you must use the property as your primary residence for at least one year. If there is already a home on the land, this is acceptable. Another acceptable scenario is if you plan to immediately build a home on the land after purchase. This may require a purchase/construction loan.

You can also purchase land with a conventional loan or certain other types of loans. Then you can build a home on the land using a VA construction loan. Upon completion, military borrowers can refinance VA construction loans into permanent VA loans. Builders must be VA-approved.

Finally, you can purchase land and build a property using a non-VA purchase/construction loan. Then you can refinance the loan upon completion of the build into a permanent VA loan (as long as the property meets the VA’s requirements).

Can you use a VA loan to build a house?

Myth #9: You can’t build a house with a Kentucky VA loan.

Fact: VA construction loans do exist, as mentioned above, and under the right circumstances, they can be refinanced into permanent VA loans. Ask your lender about VA purchase/construction loan options.

Can you use a VA loan for home improvement?

Myth #10: Kentucky VA loans only apply to the home purchase itself.

Fact: The VA allows for increases to purchase loans for the purpose of making renovations. The VA’s Energy Efficiency Mortgage program, for instance, lets borrowers add up to $6,000 to their home loan amount to install solar heating, insulation and storm windows, among other features.

In conclusion

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. 

1 -  Email - kentuckyloan@gmail.com 

2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

---

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

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Conventional Mortgage Guidelines for Kentucky

Freddie Mac and Fannie Mae Underwriting Guidelines for Mortgage Approval

These are called conventional because they must conform to the Freddie Mac and Fannie Mae standards set by the government, but they are not government insured. This poses a greater risk to lenders because they are not guaranteed repayment in the event the loan defaults; rather, they are forced to take a personal loss.

For these reasons, conventional mortgages are more difficult to obtain with stricter lending requirements in regards to credit score, down payment, debt to income ratio, mortgage insurance  and previous bankruptcies or foreclosure.

 Let's take a look at each subject below:👇

Credit Scores: 

Fannie Mae and Freddie Mac Require a minimum 620 credit score.

You have three credit scores from Experian, Equifax, and Transunion, and they take the middle score, throwing out the high and low score. The higher the credit score the better pricing you will get on the rate and mortgage insurance along with your down payment.
Ideally for higher credit score buyers, say over 680, and with at least 3% down payment with a low debt to income ratio.

Down Payment:  

Conventional mortgage loans require a minimum of 3% down payment. The more you put down, the better the rate, lower the mortgage insurance, and greater chances of getting approved.

If you put down 20%, then you will not have to pay mortgage insurance, or if you refinance an existing loan that has mortgage insurance, you can potentially get rid of the mortgage insurance if your equity position is less than 20% of the home's value.

Debt to Income: 

Conventional Mortgage loans typically will not allow for a back-end ratio of over 45%. They're two ratios, the front-end and back-end ratio. The front-end ratio is a percentage of the total house payment of your total gross monthly income. The back-end ratio is the new total house payment along with the monthly payments on your credit report divided by your total gross monthly income.

For example, if you make $3,000 gross a month, your total backend ratio would me maxed out at 1,350 a month. So if you had $300 in monthly payments on the credit report, this would allow for a maximum house payment of $1,050.00

Mortgage Insurance:

 Mortgage insurance is typically cheaper and less expensive on conventional mortgage loans. They're competing private mortgage insurance companies competing for the business with the names of MGIC, Radian, Essent, Genworth and Ugcorp.

 Conversely, it is not like Government insured FHA, VA and USDA  mortgage loans where all applicants get the same premiums regardless of credit score, down payment and debt to income ratio. Mortgage insurance is usually expressed as a monthly premium, with no upfront mortgage premiums like FHA, VA, and USDA government loan programs.

The higher the credit score, lower debt to income ratio and more nd can be removed once you reach 80% equity position in the home.

Bankruptcies and Foreclosure: 

Bankruptcy (Chapter 7 or Chapter 11)

A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action.

Exceptions for Extenuating Circumstances

A two-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the discharge or dismissal date of the bankruptcy action.

Bankruptcy (Chapter 13)

A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as follows:

• two years from the discharge date, or
• four years from the dismissal date.

.Foreclosure

A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.

Deed-in-Lieu of Foreclosure, Pre-foreclosure Sale, and Charge-Off of a Mortgage Account

These transaction types are completed as alternatives to foreclosure.

• A deed-in-lieu of foreclosure is a transaction in which the deed to the real property is transferred back to the servicer. These are typically identified on the credit report through Remarks Codes such as “Forfeit deed-in-lieu of foreclosure.”
• A pre-foreclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer. These are typically identified on the credit report through Remarks Codes such as “Settled for less than full balance.”
• A charge-off of a mortgage account occurs when a creditor has determined that there is little (or no) likelihood that the mortgage debt will be collected. A charge-off is typically reported after an account reaches a certain delinquency status, and is identified on the credit report with a manner of payment (MOP) code of “9.”

A four-year waiting period is required from the completion date of the deed-in-lieu of foreclosure, pre-foreclosure sale, or charge-off as reported on the credit report or other documents provided by the borrower.

Joel Lobb (NMLS#57916)
Senior  Loan Officer

10602 Timberwood Circle Suite 3

Louisville, KY 40223

Text/call 502-905-3708

kentuckyloan@gmail.com

NMLS Consumer Access

 Accessibility Statement 

Privacy Policy

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.

Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/

How to Qualify For A Kentucky Mortgage Loan

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Ultimate Guide for Kentucky First-Time Homebuyers: Steps, Loan Programs & How to Apply

 

Introduction: How to Buy Your First Home in Kentucky

Are you a first-time homebuyer in Kentucky looking to purchase your dream home? Buying a house is one of the biggest financial decisions you'll ever make. Understanding the steps involved can help you feel confident throughout the process.

• In this guide, we'll cover:

•  How much house you can afford
•  Loan programs for first-time homebuyers in Kentucky
•  Credit score requirements
•  Down payment & closing costs
•  Mortgage pre-approval process
•  Required documents & how to apply

By the end of this article, you'll have a clear roadway to homeownership in Kentucky!

Step 1: Determine How Much House You Can Afford

One of the first steps to buying a home is understanding your budget. Mortgage lenders suggest you should consider a price range. It is recommended not to buy a home that exceeds 30% to 45% of your gross monthly income. For instance, if you earn $3000 gross a month, your maximum house payment should be about $1350 a month. This includes PITI.

Use a mortgage calculator to estimate your monthly payment, including property taxes, homeowners insurance, and mortgage insurance.

- Kentucky Mortgage Calculator

Kentucky Mortgage Calculator

Home Price ($): Down Payment ($): Interest Rate (%): Loan Term (years): Annual Property Taxes ($): Annual Homeowners Insurance ($): PMI Rate (%): Monthly HOA Fees ($):

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Step 2: Check Your Credit Score

Your credit score plays a crucial role in determining your mortgage eligibility and interest rate. The mortgage scores used by lenders are different than the ones usually seen for borrowers. Be aware of this.

Here’s how you can improve your score before applying

Step 2: Check Your Credit Score

Your credit score plays a crucial role in determining your mortgage eligibility and interest rate. Here’s how you can improve your score before applying:

✔️ Pay down credit card balances
✔️ Make all payments on time
✔️ Avoid applying for new credit cards or loans
✔️ Don’t make big purchases before getting approved
✔️ If possible, avoid changing jobs before closing on your home

Pull your own credit report from www.annualcreditreport.com to see what is on your credit report from Experian, Equifax, and Transunion. You will not be able to get your mortgage fico scores but you can see what creditors are reporting before you apply to correct any errors

The credit scores used by mortgage lenders are different than what the consumers see, so be aware of that.

We can pull your fico mortgage scores for free, no costs to you, as far as the application process. If you want to obtain your own mortgage fico scores

While the FICO^® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage:

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

FICO Scores used for mortgages

Credit Score Requirements for Kentucky First-Time Homebuyers

Step 3: Save for a Down Payment & Closing Costs

How Much Do You Need for a Down Payment?

💰 FHA Loan: 3.5% of the purchase price
💰 Conventional Loan: 3-20% (Varies)
💰 VA & USDA Loans and KHC Down payment Assistance Loans : No down payment required

Other Expenses to Consider

1. Earnest Money Deposit: Shows sellers you’re serious. This is known as a good faith deposit. Typically, it's $500 at the minimum. However, more serious buyers show a bigger commitment by putting down $1000 or more.
2. Closing Costs: Typically 2-5% of the loan amount
3. Home Inspection Costs: $300-$500
4. Appraisal Costs: $550 to $700 range

Step 4: Get Pre-Approved for a Mortgage in Kentucky

🔹 What is Mortgage Pre-Approval?

Being pre-approved means a lender has reviewed your financial information and determined how much you can borrow. This makes you a stronger buyer in the eyes of sellers.

✅ To Get Pre-Approved, You’ll Need the following documents plus more:

• W2’s from the past 2 years for 2023 and 2024
• Last months of pay stubs
• Bank statements (Last 2 months)
• 2 years of tax returns and all schedules
• Divorce decree (if applicable)
• Additional income documents for other income possible
• Looking for stability in the income. Waited over the last two years and the next 3 years.
• Two forms of ID> Driver's License and card

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Step 5: Choose the Right Mortgage Loan in Kentucky

Types of Mortgage Loans Available

Loan Type	Who Qualifies?	Down Payment	Upfront Mortgage Insurance	Monthly Mortgage Insurance	Min. Credit Score
VA Loan	Veterans & eligible service members	None	None	None	580
USDA Loan	Rural homebuyers	None	2% of loan amount (can roll in)	Required	640
FHA Loan	Buyers meeting income/credit limits	3.5%	1.75% of loan amount	Required	580-640
203K Loan	Buyers renovating a home	3.5%	1.75% of loan amount	Required	580-640
Conventional 97	First-time homebuyers	3%	None	Required	620
Select Smart Plus	Buyers meeting lender’s requirements	3-20%	None	Required	620

Step 6: Submit Your Mortgage Application

• Once you’ve chosen the right loan and been pre-approved, you’ll submit a formal mortgage application with your lender.

• The Lender Will Verify:
  ✅ Your credit score and credit bureau-Three scores are pulled from Experian, Equifax and Experian
  ✅ Income & employment history for last two years
  ✅ Bank statements for last two months & tax returns for last two years
  ✅ Property appraisal
• Title search

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Step 7: Close on Your New Home! 🎉

Your loan is approved. All final paperwork is completed. You’ll attend the closing meeting to sign documents and get the keys to your new home!

🏡 Congratulations! You’re now a Kentucky homeowner!

Ready to Buy a Home in Kentucky? Get Expert Help Today!

Buying your first home is a big step, but you don’t have to do it alone. Work with a trusted mortgage broker like Joel Lobb to get expert guidance, personalized loan options, and fast approvals.

📩 Contact Joel Lobb Today for a Free Consultation!

📞 Call or Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com

🔹 Get Pre-Approved Now & Start House Hunting!

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Final Thoughts

If you're a first-time homebuyer in Kentucky, understanding the steps involved is crucial. Being aware of the loan programs available will help you make a smart financial decision.

1 -  Email - kentuckyloan@gmail.com 2.   Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans

 Website: www.mylouisvillekentuckymortgage.com
 Address: 911 Barret Ave., Louisville, KY 40204

---

Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.

Kentucky Local Home Loan Lender Services

 First-Time Home Buyers Welcome
 FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans
 Conventional Loan Options Available
 Fast Local Decision-Making
 Experienced Guidance Through the Home Buying Process

 

Grants for First Time Home Buyers in Kentucky

$20,000 Grant Money Available for Kentucky Home Buyers – First-Time Home Buyers Assistance!

Are you a first-time home buyer in Kentucky looking for financial assistance? The Federal Home Loan Bank has created a special fund to help low-to-moderate income families achieve homeownership. This $20,000 grant is designed to assist home buyers with down payments and closing costs, making it easier to secure a home without the burden of large upfront expenses.

Grant Money for First-Time Home Buyers in Kentucky

The Federal Home Loan Bank grant is an excellent opportunity for Kentucky home buyers who meet income requirements. If you're struggling with saving for a down payment or need extra funds for closing costs, this program can help. Funds are limited and will be available starting March 3rd until they are reserved.

Household Income Limits Per County

To qualify for this home buyer grant, your household income must fall within the limits set for your county. Below are the income eligibility requirements for households with 1-2 persons and 3+ persons:

County	1-2 Person(s) Income Limit	3+ Persons Income Limit
Nelson	$73,284	$84,277
Washington	$73,796	$84,866
Larue	$74,596	$85,786
Hardin	$74,596	$85,786
Bullitt	$77,120	$88,688
Marion	$68,544	$79,968
Jefferson	$77,120	$88,688
Anderson	$73,076	$84,038
Franklin	$73,588	$84,626
Woodford	$76,160	$87,584
Mercer	$73,684	$84,737

Other counties may be available for eligibility.

Who Can Apply for This Home Buyer Grant?

This program is designed for low-to-moderate income households who need financial assistance to purchase a home. It is ideal for first-time home buyers in Kentucky looking for an affordable way to buy a home without high out-of-pocket costs.

Benefits of This Grant for Kentucky Home Buyers

• Receive $20,000 in grant money for down payment and closing costs.
• Helps first-time home buyers afford a home sooner.
• Makes homeownership more accessible for low-to-moderate income families.
• Available in multiple counties across Kentucky.

How to Apply for the Kentucky Home Buyer Grant

Funds for this program will be available starting March 3rd and will be distributed on a first-come, first-served basis. If you're interested in applying, it's essential to get pre-qualified as soon as possible.

For more information on qualifying for this first-time home buyer grant in Kentucky, or to start your application, contact Joel Lobb, Senior Loan Officer at American Mortgage Solutions, Inc.

📞 Call/Text: (502) 905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: MyLouisvilleKentuckyMortgage.com

Act Fast – Funds Are Limited!

If you're a first-time home buyer in Kentucky, this $20,000 grant could be the key to owning your dream home. Don't wait until funds run out—start your home buying journey today!