Kentucky Mortgage Qualification Calculator

Kentucky Mortgage Qualification Calculator

Gross Monthly Income ($):

Total Monthly Debts ($) (credit report):

Credit Score:

Loan Program: FHA VA USDA Conventional

Interest Rate (%):

Estimated Monthly Taxes ($):

Estimated Monthly Homeowners Insurance ($):

Monthly Mortgage Insurance ($):

Down Payment ($):

Loan Term (years): 30 15

How to Get Approved for a USDA Mortgage Loan in Kentucky

 How to Get Approved for a USDA Mortgage Loan in Kentucky

If you're considering buying a home in Kentucky and looking for a mortgage loan with favorable terms, a Kentucky USDA loan could be a great option. Kentucky USDA loans, backed by the U.S. Department of Agriculture, are designed to help low to moderate-income borrowers in Kentucky rural areas achieve homeownership. Here's a comprehensive guide on how to get approved for a USDA mortgage loan in Kentucky in regards to credit score, income, work history, debt to income ratios, bankruptcy and foreclosure :

1. Kentucky USDA loans Credit Score Requirements:

   • While Kentucky USDA loans are known for their lenient credit score requirements compared to conventional loans, having a good credit score can still improve your chances of approval. Aim for a credit score of 640 or higher for smoother processing. On paper USDA says there is no minimum score, but it is very difficult to get approved with lenders with no score.

2. Kentucky USDA loans Income Eligibility:

   • USDA loans have income eligibility criteria based on the area's median income. To qualify, your household income should fall within the USDA's income limits for the specific county or area in Kentucky where you plan to buy a home.

3. Kentucky USDA loans Work History:

   • Lenders typically look for a stable work history, preferably with at least two years of consistent employment in the same field or industry. This demonstrates your ability to repay the loan.

4. Kentucky USDA loans Property Location (Counties 120 in Kentucky):

   • USDA loans are specifically designed for properties located in eligible rural areas or designated suburban areas. Before applying, ensure that the property you're interested in is within a USDA-eligible location in Kentucky.

5. Kentucky USDA loans Income Ratio:

   • Your debt-to-income (DTI) ratio is an important factor in loan approval. Generally, USDA loans require a DTI ratio of 41% or lower, although some lenders may allow higher ratios with compensating factors.

6. Kentucky USDA loans Income Limits:

   • USDA loans have income limits based on family size and county location. These limits vary by area, so check the current income limits set by USDA for the county where you plan to purchase your home.

7. Kentucky USDA loans Property Type:

   • USDA loans are intended for primary residences, including single-family homes, townhouses, and eligible condominiums. Investment properties and vacation homes are not eligible.

8. Kentucky USDA loans Bankruptcy and Foreclosure Requirements:

   • Having a bankruptcy or foreclosure in your financial history doesn't necessarily disqualify you from a USDA loan. However, there are waiting periods after these events before you can apply:
     • Chapter 7 bankruptcy: 3 years from the discharge date.
     • Chapter 13 bankruptcy: 1 year of on-time payments and court approval.
     • Foreclosure: 3 years from the sale date.

9. Kentucky USDA loans Closing Time:

   • USDA loans typically take around 30 to 45 days to close, although this timeline can vary based on factors such as application volume and the efficiency of document processing.

10. Kentucky USDA loans Appraisal Requirements:

    • A professional appraisal is required for USDA loans to determine the fair market value of the property. The appraisal ensures that the property meets USDA standards and is worth the loan amount.

11. Kentucky USDA loans Termite Inspections:

    • USDA loans may require a termite inspection, especially in areas where termite infestations are common. The inspection aims to identify and address any termite-related issues in the property.

12. Kentucky USDA loans GUS (Guaranteed Underwriting System):

    • GUS is a tool used by lenders to process USDA loan applications. It evaluates the borrower's credit, income, and other factors to determine eligibility and streamline the underwriting process.

13. Kentucky USDA loans Manual Underwriting:

    • In some cases, USDA loans may undergo manual underwriting, especially if the borrower's application doesn't meet automated approval criteria. Manual underwriting involves a more thorough review of the borrower's financial situation by the lender.

To get a Kentucky USDA loan, potential Kentucky rural housing borrowers must follow this sequence of steps:

1. Determine eligibility by consulting online USDA maps.
2. Decide whether you want a guaranteed or direct loan. Guaranteed loans will have higher income limits, which you’ll work out with the lending institution.
3. Submit all applicable paperwork, including income, debts, and credit reports.
4. After pre-approval, begin searching for new homes (or launch renovations on your current home).

Keep in mind that you’ll have fees associated with your loan. Guaranteed loans require an upfront 1% fee and annual fees of 0.35% for as long as the mortgage is active.

USDA program for properties located outside urban areas of Kentucky areas where you can secure a no money down loan at a  fixed rate of on 30 years.  

The max household income limits usually are between  $112,450 to $148,450 for most rural area counties depending on household family size. 

 This changes every year so make sure you are using updated USDA Income Limits for this year 

A 620-640 middle credit score is needed for loan approval on this program. They're no max loan limits on USDA loans. You just need to qualify based on your debt to income ratio (see below under income section)-----USDA will go down to 580 on scores but it has to pass 👉 USDA Manual Underwriting guidelines

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

🏡 Kentucky USDA Loans

Your Path to Rural Homeownership with $0 Down

Why Choose USDA Loans?

💰

$0 Down Payment

100% financing available

📈

Fixed Rate

30-year stable payments

🎯

Flexible Credit

Scores as low as 580*

🌾

Rural Focus

120 eligible KY counties

Key Requirements

📊

Credit Score

640+ for automated approval
580+ for manual underwriting

💵

Income Limits

$112,450 - $148,450
Varies by county & family size

📋

Debt-to-Income Ratio

Maximum 41% DTI
Total debt ÷ gross income

💼

Employment History

2+ years consistent work
Same field preferred

📍

Property Location

Must be in USDA-eligible rural area
Primary residence only

⏰

Bankruptcy/Foreclosure

3 years from Chapter 7 or foreclosure
1 year from Chapter 13 + payments

Application Process

1

Check Eligibility

Verify location & income limits

2

Get Pre-Approved

Submit documentation

3

House Hunt

Search eligible properties

4

Close

30-45 day timeline

Quick Qualification Check

✅Credit score 580+

✅Income within limits

✅DTI under 41%

✅2+ years employment

✅Eligible property location

✅Primary residence use

Ready to Get Started?

📧 Email
kentuckyloan@gmail.com

📞 Call/Text
502-905-3708

🌐 Website
mylouisvillekentuckymortgage.com

📍 Location
Louisville, KY

Joel Lobb - NMLS# 57916 | Evo Mortgage - NMLS# 1738461

Joel Lobb  Mortgage Loan Officer

Text/call: 502-905-3708

email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

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How to Get a Kentucky FHA Mortgage Loan with a 500 Credit Score

 

FHA Mortgage Loan in Kentucky with 500 Credit Score

🏡 How to Get a Kentucky FHA Mortgage Loan with a 500 Credit Score

By Joel Lobb | Senior Loan Officer, EVO Mortgage (NMLS #57916)

Are you a first-time homebuyer in Kentucky with a credit score around 500? Don’t worry—you’re not out of options. With an FHA loan, you may still qualify to buy a home—even if you’ve faced credit challenges in the past.

Can You Really Get a Mortgage with a 500 Credit Score in Kentucky?

Yes, you can. FHA loans are government-backed mortgages designed to help borrowers with lower credit scores and limited savings for a down payment. While many lenders prefer scores above 580, some—like us at EVO Mortgage—will work with credit scores as low as 500, depending on your financial picture.

Learn the difference between FHA vs. VA loans in Kentucky

Kentucky FHA Loan Requirements for a 500 Credit Score

Requirement	Details
Minimum Credit Score	500+ (10% down) / 580+ (3.5% down)
Down Payment	10% for 500–579 credit scores
Income Verification	Two years of steady employment or verifiable income
Debt-to-Income Ratio	Generally 43% or less, but exceptions allowed with strong compensating factors
Loan Type	30-year fixed FHA mortgage
Property Type	Primary residence (must meet FHA appraisal standards)

What Are the Benefits of FHA Loans in Kentucky?

• Low credit score approval (as low as 500)
• Flexible underwriting guidelines
• Smaller down payment required
• Can be combined with KHC Down Payment Assistance
• Easier to qualify after bankruptcy or past delinquencies

How to qualify for an FHA loan after bankruptcy

Why Work with Joel Lobb at EVO Mortgage?

• Over 20 years of helping Kentucky families get mortgage approval
• Specializing in first-time homebuyers and bad credit borrowers
• Free credit evaluations & pre-approvals
• Same-day loan approvals in many cases
• Local knowledge of Kentucky FHA, VA, USDA, and KHC loan programs

How to Improve Your Credit Score Before Applying

If your score is below 580, you may need to put down 10%. Want to save more and qualify for a 3.5% down payment instead?

Click here to learn how to improve your credit score for a mortgage

Ready to See If You Qualify?

Tap below to get started with a free, no-obligation mortgage pre-approval:

FHA Loan Info – Tap to Apply
📧 kentuckyloan@gmail.com | 📞 502-905-3708
www.nmls.consumeraccess.org | NMLS #1734641
Equal Housing Lender | EVO Mortgage

Final Thoughts

Getting a mortgage in Kentucky with a 500 credit score is possible—with the right loan officer, the right lender, and the right guidance. Whether you’ve been turned down before or you're just getting started, you deserve a second chance. FHA loans were designed with you in mind.

Let’s turn your homeownership dream into a reality—starting today.

How to Qualify For A Kentucky Mortgage Loan

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 Got Dispute Comments on Your Credit Report? 

If you've disputed any accounts in the past, chances are your credit report still has dispute comments listed. That might seem harmless—but if you're applying for a mortgage, those comments could delay or even block your loan approval.

 Here’s what you can do:

1. Call each credit bureau (numbers on the graphic).

2. Ask to remove any dispute comments.

3. Verify they’re gone by pulling a fresh consumer credit report.

4. Follow up within 72 hours to confirm it’s been done.

Pro Tip: Do this before your lender pulls your credit. It could save time, stress, and keep your home loan on track.

If you’re not sure where to start, drop a comment or shoot me a message. I’m here to help walk you through the process!

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Kentucky USDA Rural Housing Mortgage Qualifying Guidelines