KHC $10,000 Down Payment Assistance Program for 2025

Kentucky Housing $12,500 Down Payment Assistance Help for Homebuyers 

If you're a first-time homebuyer in Kentucky, the Kentucky Housing Corporation (KHC) offers great options. They help make your dream of homeownership a reality. You can even buy your next home with no money down.

The KHC Down Payment Assistance (DPA) program can provide up to $12,500. This assistance helps with your down payment. It also covers closing costs and prepaid items. Here's everything you need to know to qualify and take advantage of these opportunities:

Kentucky Housing Corporation (KHC) understands that saving for a down payment, covering closing costs, and paying prepaid expenses can be major hurdles for homebuyers. To make the path to homeownership more achievable, KHC is offering $12,500  a special Down Payment Assistance Program (DAP) that helps cover these upfront costs for a limited time see details below:

Regular DAP Program Details

• Purchase price limit: Up to $544,232 (subject to Secondary Market or Mortgage Revenue Bond [MRB] income limits).

• Assistance amount: Up to $12,500 (available in $100 increments).

• Loan terms: Repayable over 15 years at a fixed 4.75% interest rate.

• Eligibility: Available to all KHC first-mortgage loan recipients.

• Temporary increase: The standard $10,000 assistance has been boosted to $12,500 for loans reserved through November 30, 2025.

Additional Notes

• No liquid asset review required and no cap on borrower reserves.

• Specific credit underwriting standards may apply to down payment programs.

• Works in combination with FHA, VA, USDA, and Conventional KHC-approved loans.

Why This Matters

This increase gives homebuyers more flexibility to cover upfront expenses, making it easier to move forward with a purchase in today’s higher-rate, higher-price market.

If you’re considering buying a home, now is the time to take advantage of the extra $2,500 in temporary assistance before it expires.

Who Qualifies for Kentucky's $12,500 Assistance?

Borrower Requirements

• ✓620+ FICO credit score
• ✓KHC-approved first mortgage
• ✓U.S. citizen, national, or qualified alien
• ✓Meet county income limits
• ✓Primary residence occupancy

Program Benefits

• ✓No liquid asset review
• ✓No borrower reserve limits
• ✓$100 increment flexibility
• ✓All 120 Kentucky counties eligible
• ✓Combines with VA, USDA, FHA, Conventional

Am I Eligible for the $12,500 Kentucky Down Payment Assistance?

Qualifying for this program is straightforward, but you must work with a KHC-approved lender to confirm your eligibility.

Eligibility Requirements 

To qualify for the DAP program, you must:

1. Use a KHC First Mortgage: You must be approved for your primary home loan through one of KHC's first-mortgage programs (like your standard FHA, VA, or USDA loan through KHC).

2. Meet Income Limits: Your household income must fall within KHC's Secondary Market or Mortgage Revenue Bond (MRB) limits. These limits vary by county and household size.

3. Meet Purchase Price Limits: The sales price of the home you wish to buy cannot exceed $544,232.

Major Benefits: Why This Program is So Popular 

• Effectively $0 Down: By covering your down payment and closing costs, this program can create a true no-money-down scenario for eligible buyers.

• No Asset Limits: KHC does NOT review your liquid assets (savings, checking accounts) or place a limit on how much money you can have in reserves after closing. This is a huge advantage over other programs.

• Available to All: The DAP program is available to all recipients of a KHC first-mortgage loan who meet the income and price limits.

How Does the KHC DAP Loan Work

It's important to understand that this is a loan, not free money. Here’s how it functions:

• You apply for your main mortgage through a KHC-approved lender.

• If you qualify, you can also apply for the DAP loan of up to $12,500.

• At closing, the DAP loan funds are used to pay your required down payment and other closing costs.

• You will then have two loans:

  1. Your primary 30-year mortgage (e.g., FHA loan at 6.5%).

  2. Your secondary 15-year DAP loan for $12,500 at 4.75%.

• You will make a separate, monthly payment on the DAP loan for 15 years, after which it will be paid in full.

How to Apply: Your Next Steps to $12,500 

You cannot apply for this program directly through KHC. You must work with a participating KHC-approved Kentucky down payment assistance lender.

Ready to stop renting and see if you qualify for $12,500?
The clock is ticking on this increased amount! Connect with a top-rated KHC-approved lender today for a free eligibility check and personalized quote. They can answer all your questions and guide you through the entire process before the November 30, 2025 deadline.

Frequently Asked Questions (FAQ) 

Q: Is the $12,500 a grant or a loan?
A: It is a loan that must be repaid over 15 years at a 4.75% fixed interest rate.

Q: What can the DAP funds be used for?
A: The funds are used to cover your down payment, closing costs (like appraisal, title insurance, origination fees), and prepaid expenses (like homeowner's insurance and property taxes).

Q: What are the credit score requirements?
A: Credit requirements are set by the specific KHC first-mortgage program you use (FHA, VA, etc.) and the lender's own underwriting. Your lender will advise you on the specific credit standards for the down payment assistance program.

Q: Can I use this on any home in Kentucky?
A: The home must be located in Kentucky and the purchase price must be at or below $544,232. It must also be your primary residence.

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Learn More at the Links below 

• First-Time Homebuyer Programs in Kentucky

•  KHC Mortgage Rates Today

•  FHA Loan Requirements in Kentucky

• Understanding Closing Costs in Kentucky

• Source: Kentucky Housing Corporation (KHC) Official Website

• Source: KHC Down Payment Assistance Program Page

• Source: KHC Income and Purchase Price Limits

Disclaimer: This information is for informational purposes only and is subject to change. Program details, rates, and limits are determined by the Kentucky Housing Corporation and individual lenders. All applicants must qualify based on KHC and lender underwriting guidelines.

Home Buyer Eligibility:

1. First-Time and Repeat Buyers: KHC helps both first-time and repeat home buyers throughout Kentucky.
2. U.S. Citizenship: You must be a U.S. citizen or have legal status to live in the U.S.
3. Income: Only income through the Secondary Market is considered for eligibility.
4. Principal Residence: The property must be your principal residence. You cannot own any other residential property at the time of closing.
5. Closing Assistance: Borrowers can qualify for the KHC Down Payment Assistance Program. They must meet both the income and purchase price limits.

Kentucky Housing Credit Standards:

To qualify for a KHC loan, there are specific credit and financial criteria:

1. Credit Score: A minimum credit score of 620 is required for FHA, VA, and RHS loans, and a 660 minimum score is needed for Conventional loans.
2. Debt Ratio: The maximum allowable debt ratio is 50%.
3. Collections: In most cases, collections do not need to be paid off in full.
4. Bankruptcies and Foreclosures: These must be discharged for at least two to seven years.
5. Non-Taxable Income: Non-taxable income can be grossed up to help you meet the income requirements.

Property Eligibility:

1. New and Existing Properties: Both new and existing properties are eligible for KHC loans.
2. Manufactured Housing: Both new and existing manufactured homes are eligible, with the caveat that RHS loans only cover new construction manufactured housing.
3. Purchase Price Limit: The purchase price limit is set at $544,222 for both Secondary Market and MRB Loans.
4. Appraisal and Inspections: A full appraisal is required for all KHC loans. Additionally, VA loans are the only loan product requiring a termite inspection, and a termite soil treatment certificate is required for all new construction properties except for conventional loans.

What You Can Use the KHC Down Payment Assistance For:

1. Down Payment: You can use the assistance to help cover your down payment when buying a home.
2. Closing Costs: The program also helps pay for closing costs, which can be one of the most challenging parts of buying a home.
3. Prepaid Items: KHC DPA can help with prepaids such as homeowner’s insurance or property taxes that may be due at closing.

https://notebooklm.google.com/notebook/56a1179d-9f8b-461e-b091-f4f7875189b3/audio

Start Your Home Buying Journey Today!

If you're interested in using the KHC Down Payment Assistance Program for 2025, connect with a qualified lender. There are several benefits to using this program. These benefits include no money down options. There is assistance available for both new and repeat buyers. Don't let down payment challenges hold you back. Reach out today to get started on your path to homeownership with the support of the KHC.

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

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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 Down Payment Assistance $12,500 Down Payment Assistance through KHC

Kentucky’s Down Payment Assistance Just Increased to $12,500: Your 2025 Guide

LOUISVILLE, KY — In a major move to tackle housing affordability, the Kentucky Housing Corporation (KHC) has announced a significant, temporary increase to its flagship Down Payment Assistance (DPA) program.

For a limited time, eligible homebuyers can access up to $12,500 in assistance—a 25% increase from the standard $10,000. This boost is available for loan reservations made between August 21 and November 30, 2025.

Why the $12,500 KHC Boost is a Game-Changer

Saving for a down payment is the number one barrier to homeownership. This new increase helps Kentuckians:

• Cover more upfront costs – Down payment, closing costs, prepaids, even certain inspections.

• Make stronger offers – A bigger down payment makes you more competitive.

• Buy sooner – Get into a home months or years earlier instead of waiting to save.

How the $12,500 Kentucky Down Payment Assistance Program Works

• Loan Amount: Up to $12,500 (in $100 increments)

• Interest Rate: 4.75% fixed

• Term: 15 years, amortized

• Monthly Payment: About $97/month (for full amount)

• Prepayment: No penalty if you pay it off early

This is a second mortgage loan that sits behind your first mortgage.

What Can the Funds Be Used For?

• Down payment

• Closing costs

• Prepaids (taxes, insurance, mortgage insurance premiums)

• Some inspections (with documentation)

Who Qualifies for the $12,500 Program?

Borrower Requirements

• Credit Score: 620 minimum

• Primary Mortgage: Must use a KHC-approved first mortgage (FHA, VA, USDA, or Conventional)

• Citizenship: U.S. citizen, national, or qualified alien

• Education: First-time buyers may need homebuyer education

Income & Price Limits

• Income: Varies by county, program, and household size (generally ≤ 80% AMI)

• Purchase Price: Up to $544,232 (new or existing homes)

Which Loan Types Work With It?

The KHC assistance can be paired with:

• FHA Loans – 3.5% down

• VA Loans – 0% down for veterans/service members

• USDA Loans – 0% down in eligible rural areas

• Conventional Loans – As little as 3% down

Act Now: Why November 30, 2025 Matters

This is a limited-time increase. After November 30:

• The program reverts to $10,000 at 3.75% interest with a 10-year term.

• To qualify, your lender must reserve your loan by this date.

Frequently Asked Questions: Kentucky $12,500 Down Payment Assistance 

Program Basics

Q: How much down payment assistance can I get in Kentucky? A: Up to $12,500 through Kentucky Housing Corporation's enhanced program (temporarily increased from $10,000). Loans must be reserved between August 21 and November 30, 2025, to qualify for the enhanced amount.

Q: What's the monthly payment on the $12,500 assistance? A: Approximately $97 per month with the enhanced program terms (4.75% interest rate over 15 years). This is a separate payment from your primary mortgage.

Q: Can I really buy a Kentucky home with $0 down? A: Yes! When you combine KHC's $12,500 assistance with:

• VA loans (0% down for veterans)
• USDA loans (0% down in rural areas)
• The assistance can cover down payment and closing costs for conventional/FHA loans

Q: Is this program available in all Kentucky counties? A: Yes, all 120 Kentucky counties are eligible for the KHC down payment assistance program.

Eligibility and Qualification

Q: What credit score do I need for Kentucky down payment assistance? A: Minimum 620 FICO score. Higher scores (640+) typically qualify for better interest rates on your primary mortgage.

Q: Do I have to be a first-time homebuyer? A: No. While first-time homebuyers are prioritized, repeat buyers may qualify in targeted areas throughout Kentucky.

Q: What are the income limits for Kentucky counties? A: Income limits vary by county. For example:

• Jefferson County (Louisville): $90,250 for 4-person household
• Fayette County (Lexington): $85,500 for 4-person household
• Rural counties typically have lower limits

Q: Can I use gift money with the KHC assistance? A: Yes, gift money from family members can be combined with KHC down payment assistance, subject to lender requirements.

Program Details and Usage

Q: What can I use the $12,500 assistance for? A: The assistance can be used for:

• Down payment
• Closing costs
• Prepaid expenses (insurance, taxes, interest)
• Property-related inspection costs (with proper documentation)

Q: Can I combine KHC assistance with other programs? A: Often yes. The KHC assistance can frequently be combined with:

• Employer homebuyer assistance programs
• Local city/county down payment programs
• Family gift funds
• Your own savings

Q: What types of homes are eligible? A: Eligible properties include:

• Single-family detached homes
• Condominiums (must meet KHC approval)
• Townhouses and attached units
• Manufactured homes (permanently affixed, taxed as real estate)

Application and Process

Q: How do I apply for Kentucky's down payment assistance? A: You must apply through a KHC-approved lender. The process involves:

1. Find a KHC-approved lender
2. Apply for primary mortgage and down payment assistance simultaneously
3. Get pre-approved
4. Shop for homes under $544,232
5. Complete the loan process

Q: How long does the application process take? A: Typically 30-45 days from complete application to closing, though this can vary based on documentation completeness and market conditions.

Q: What happens if my loan isn't reserved by November 30, 2025? A: After November 30, 2025, the program will likely revert to standard terms of up to $10,000 at 3.75% interest over 10 years.

Loan Terms and Repayment

Q: Can I pay off the down payment assistance loan early? A: Yes, there are no prepayment penalties. You can pay off the $12,500 assistance loan early without additional fees.

Q: What happens if I sell my home? A: The down payment assistance loan must be paid off when you sell your home, similar to your primary mortgage.

Q: What happens if I refinance my primary mortgage? A: The KHC assistance loan typically remains in place when you refinance your primary mortgage, allowing you to keep the favorable assistance terms.

Q: Are there restrictions on how I use my home? A: Yes, the home must remain your primary residence. You cannot rent it out or use it as a second home while the assistance loan is outstanding.

Special Circumstances

Q: Can I use this program if I'm self-employed? A: Yes, self-employed borrowers can qualify but will need additional documentation including business tax returns, profit & loss statements, and business bank statements.

Q: What if I'm a veteran - can I use VA benefits with KHC assistance? A: Yes! This is one of the best combinations. VA loans require 0% down payment, and the KHC $12,500 can cover all closing costs, creating a true $0 out-of-pocket purchase.

Q: Are there any tax implications? A: The assistance is structured as a loan, not a grant, so there are typically no immediate tax implications. Consult a tax professional for personalized advice.

Q: What if I don't qualify for the full $12,500? A: The assistance amount can be adjusted based on your needs and loan structure. You might receive less if your down payment and closing cost needs are lower.

Client Success Testimonials

"Joel helped us navigate the KHC program and we bought our Louisville home with the VA loan and $12,500 assistance. We actually got money back at closing!" - Sarah & Mike, Louisville

"As a single mom, I didn't think homeownership was possible. Joel showed me how to use the USDA and KHC programs to buy our rural Kentucky home with zero down." - Jennifer, Barren County

"We went from renting to owning in just 5 weeks with Joel's help. The $12,500 assistance made all the difference." - Tom & Lisa, Lexington

Joel Lobb 

 Email - kentuckyloan@gmail.com 

 Call/Text - 502-905-3708

 www.mylouisvillekentuckymortgage.com
 911 Barret Ave., Louisville, KY 40204

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

Kentucky Mortgage Loan Expert For Kentucky FHA, VA, USDA, Fannie Mae and KHC Down payment Assistance Loans

Sources

• Kentucky Housing Corporation – Lender Resources

• Kentucky Housing Corporation – Down Payment Assistance

• Kentucky Housing Corporation – Eligibility Requirements

FICO vs. Credit Karma for Mortgage Loans in Kentucky

Credit Karma vs. FICO Scores: What Kentucky First-Time Homebuyers Need to Know About Mortgage Credit Score Requirements

Published by Joel Lobb, Kentucky Mortgage Loan Officer | NMLS ID: 57916

When you're preparing to buy your first home in Kentucky, understanding the difference between Credit Karma scores and FICO scores could save you from a disappointing surprise at the lender's office. Many Kentucky first-time homebuyers are shocked when their mortgage credit score differs significantly from what they've been monitoring on free apps like Credit Karma.

As a Kentucky mortgage expert who has helped over 1,300 families achieve homeownership, I see this confusion almost daily. Let me explain exactly what scores mortgage lenders use and why your Credit Karma score might not tell the whole story.

If you're a first-time homebuyer in Kentucky, chances are you've checked your Credit Karma score and wondered why it doesn't match what mortgage lenders see. Let’s break down the real difference between Credit Karma (VantageScore) and the FICO scores used for mortgage approvals.

What Credit Karma Really Shows You

Credit Karma uses the Vantage Score model (developed by Equifax, TransUnion, and Experian), intended for consumer credit monitoring—not lending. It's helpful for tracking general credit health but not valid for mortgage lending decisions.

• Score range: 300–850
• Data sources: Equifax & TransUnion
• Used by mortgage lenders? No

FICO Scores Used by Kentucky Mortgage Lenders

Mortgage lenders—including FHA, VA, USDA, and KHC—use older, more conservative FICO scoring models:

Credit Bureau	FICO Model Used
Experian	FICO Score 2
Equifax	FICO Score 5
TransUnion	FICO Score 4

Lenders typically use the middle score from all three to evaluate your loan application.

FICO 8 vs. Mortgage FICO: What’s the Difference?

• FICO 8: Common for credit cards & auto loans
• Mortgage FICO (2, 4, 5): Required for mortgage loans
• Mortgage FICO is more sensitive to inquiries, collections, and new accounts

Why Your Credit Karma Score May Be Inaccurate for Mortgages

Factor	Credit Karma (VantageScore)	Mortgage FICO (2/4/5)
Used for Mortgages?	No	Yes
Data Pulled From	Equifax, TransUnion	All 3 Bureaus
Score Differences	Often 10–50+ points off	Accurate for approval

 Summary: Kentucky Mortgage Credit Score Tips

• FHA Loans: Most lenders require a 580 mortgage FICO score
• VA/USDA Loans: Generally start at 620+
• Credit Karma is for monitoring only
• Use myFICO.com to check your actual mortgage scores

 Credit Karma vs. FICO Scores for Mortgages

Final Word from Joel Lobb – Kentucky Mortgage Loan Officer

"I’ve helped over 1,300 Kentucky homebuyers secure loans through FHA, VA, USDA, and KHC programs. Your Credit Karma score won’t cut it—we need to pull the FICO 2, 4, 5 scores to get you approved and locked into the right loan. Let’s do this the right way."

 Get Pre-Approved the Right Way

 Call or Text: (502) 905-3708

Email: kentuckyloan@gmail.com

Apply Online: Kentucky Mortgage Application

 

How to Get Approved for a Kentucky Mortgage Loan with Bad Credit

Kentucky Mortgage Loans for Bad Credit: Your Path to Homeownership

Quick Summary: Kentucky homebuyers with bad credit can qualify for mortgages with scores as low as 500. FHA, VA, USDA, and KHC programs offer flexible options with down payment assistance available.

Can You Get a Mortgage in Kentucky with Bad Credit?

Yes, absolutely! Despite what many believe, Kentucky mortgage loans for bad credit are not only possible but widely available through specialized loan programs. Over the past 20+ years helping Kentucky families, I've successfully guided more than 1,300 borrowers to homeownership, including many with credit challenges, bankruptcy, or foreclosure in their past.

The key is understanding which Kentucky mortgage programs work best for your specific credit situation and having an experienced loan officer who knows how to navigate the approval process effectively.

Ready to Start Your Kentucky Home Buying Journey?

Get your free mortgage pre-approval with same-day decision!

Call (502) 905-3708 Email Joel Lobb

Best Kentucky Mortgage Programs for Bad Credit

FHA Loans Kentucky - Most Flexible Option

• Minimum Credit Score: 500 with 10% down payment
• Credit Score 580+: Only 3.5% down required
• Down Payment Sources: Accepts gifts, grants, 
• Debt-to-Income: Up to 57% with automated approval
• Best For: First-time buyers, limited savings, credit scores under 620

Why FHA loans are ideal for Kentucky bad credit borrowers: The Federal Housing Administration's flexible guidelines make FHA loans the most accessible option for Kentucky first-time homebuyers with credit challenges. Unlike conventional loans, FHA focuses more on your recent payment history and overall financial picture rather than just your credit score.

Kentucky VA Loans for Veterans

• Credit Requirements: No official minimum (most lenders prefer 620+)
• Possible Approvals: 500 range with strong compensating factors
• Down Payment: $0 required
• Funding Fee: Can be financed into loan
• Best For: Veterans and active military with service eligibility

USDA Rural Housing Loans Kentucky

• Credit Requirements: No official minimum (typically 620-640)
• Down Payment: $0 required
• Income Limits: Must not exceed 115% of area median income
• Property Location: Must be in USDA-eligible areas
• Best For: Rural and suburban Kentucky homebuyers

Conventional Loans Kentucky

• Minimum Credit Score: 620 for 3-5% down
• PMI Removal: Can be removed at 20% equity
• Best For: Borrowers with 720+ scores and stable income and debt ratio under 45% 

Kentucky Housing Corporation (KHC) Down Payment Assistance

One of the biggest advantages for Kentucky bad credit mortgage borrowers is the availability of down payment assistance through KHC programs. These can be combined with FHA, VA, USDA, and conventional loans to reduce your upfront costs significantly.

Current KHC Programs Available:

• KHC First-Time Homebuyer Program: Up to $10,000 in down payment assistance

Important: KHC down payment assistance is still available in 2025, but funding is limited and allocated on a first-come, first-served basis. Contact us immediately to check current availability.

What Credit Scores Qualify for Kentucky Mortgages?

Here's the reality about Kentucky mortgage credit requirements based on 20+ years of experience:

Credit Score Ranges and Options:

• 500-579: FHA loans with 10% down payment
• 580-619: FHA loans with 3.5% down, some VA loan options
• 620-639: All programs available, conventional loans possible
• 640+: Best rates and terms across all programs

Remember, your credit score is just one factor. Lenders also consider your debt-to-income ratio, employment history, assets, and recent credit behavior when making approval decisions.

Overcoming Specific Credit Challenges

Bankruptcy and Kentucky Mortgages

Chapter 7 Bankruptcy: FHA loans available 2 years after discharge, conventional loans after 4 years. VA and USDA loans typically require 2+ years with re-established credit.

Chapter 13 Bankruptcy: May qualify during active repayment plan with court approval and 12+ months of on-time payments.

Foreclosure and Kentucky Home Loans

Previous foreclosure doesn't permanently disqualify you from Kentucky homeownership:

• FHA Loans: 3 years after foreclosure completion
• VA Loans: 2 years with extenuating circumstances
• USDA Loans: 3 years after foreclosure
• Conventional Loans: 7 years (3 years with extenuating circumstances)

Collection Accounts and Charge-Offs

Medical collections under $2,000 are typically ignored by FHA. Other collections may not need to be paid off before closing, depending on the loan program and circumstances.

Get Your Kentucky Bad Credit Mortgage Pre-Approval

Don't let past credit challenges stop you from owning a Kentucky home. Our expert guidance and specialized programs can help you qualify today.

Call Now: (502) 905-3708 Apply Online

Steps to Improve Your Kentucky Mortgage Approval Odds

Before You Apply:

• Review Your Credit Reports: Get free reports from annualcreditreport.com
• Dispute Errors: Challenge any inaccurate information
• Pay Down Credit Card Balances: Aim for under 30% utilization
• Don't Close Old Accounts: Length of credit history matters
• Avoid New Credit Applications: Hard inquiries temporarily lower scores

Gather Required Documentation:

• 2 years of tax returns
• Recent pay stubs (30 days)
• 2 months of bank statements
• Employment verification letter
• Explanation letters for credit events

Why Choose Joel Lobb for Your Kentucky Bad Credit Mortgage?

20+ Years of Kentucky Mortgage Experience

Since starting in the mortgage industry, I've specialized in helping Kentucky families with challenging credit situations achieve homeownership. My experience includes:

• 1,300+ successful Kentucky mortgage closings
• Expertise in all bad credit loan programs
• Strong relationships with KHC and local assistance programs
• Same-day pre-approval decisions
• Personalized guidance throughout the process

Local Kentucky Market Knowledge

Understanding Kentucky's unique housing market and local assistance programs gives my clients significant advantages:

• Knowledge of Kentucky county-specific down payment programs
• Relationships with Kentucky real estate professionals
• Understanding of rural vs. urban property considerations
• Familiarity with Kentucky-specific lending requirements

Ready to Start Your Kentucky Home Purchase?

Joel Lobb - Kentucky Mortgage Loan Officer
NMLS #57916 | EVO Mortgage NMLS #1738461

Phone: (502) 905-3708
Email: kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com
Office: 911 Barret Ave., Louisville, KY 40204

Frequently Asked Questions

What's the lowest credit score for a Kentucky mortgage?

FHA loans accept credit scores as low as 500 with a 10% down payment. With a 580+ score, you can qualify with just 3.5% down.

Can I buy a house in Kentucky with a 550 credit score?

Yes, FHA loans are available for 550 credit scores with 10% down payment. VA loans may also be possible for eligible veterans with strong compensating factors.

How long after bankruptcy can I get a Kentucky mortgage?

FHA loans are available 2 years after Chapter 7 discharge. Chapter 13 filers may qualify during active repayment with court approval and 12+ months of payments.

Is down payment assistance available with bad credit in Kentucky?

Yes, KHC down payment assistance programs can be combined with FHA, VA, and USDA loans, even for borrowers with lower credit scores.

What documents do I need for a Kentucky bad credit mortgage?

Standard documentation includes 2 years of tax returns, recent pay stubs, bank statements, and explanation letters for any credit events like bankruptcy or foreclosure.

Take the First Step Toward Kentucky Homeownership

Don't let bad credit keep you from owning a home in Kentucky. With the right program and expert guidance, homeownership is within reach.

Get Your Free Consultation Email Your Questions

Equal Housing Lender. This website is not endorsed by the FHA, VA, USDA, or any government agency. All loan programs subject to credit approval and property eligibility. Interest rates and programs subject to change without notice.

Related Kentucky Mortgage Resources

• Kentucky First-Time Homebuyer Programs
• FHA Loan Requirements Kentucky
• VA Loans Kentucky - Complete Guide
• USDA Rural Housing Loans Kentucky
• Kentucky Housing Corporation Down Payment Assistance

Official Resources:

• FHA Official Website - HUD.gov
• VA Home Loans - VA.gov
• USDA Rural Development
• Kentucky Housing Corporation
• Consumer Financial Protection Bureau

How to get approved for a Kentucky Mortgage Loan with Bad Credit

There are several mortgage loans programs for Kentucky Homebuyers that may have had experienced bad credit in the past. 

Below is a summary of programs that borrowers can use to get approved for a mortgage loan with bad credit..

 FHA loans in Kentucky, FHA will go down to a 500 minimum credit score with at least 10% down payment or 10% equity on a refinance. 

If your scores is over 580, then you could use a FHA loan in Kentucky to with just 3.5% down payment or refinance with that much equity. 

If it turns out that you have a 620 credit score or higher, you can look at doing an Conventional loan with just 3 to 5% down payment. Typically on conventional loans if your score is below 660, you would need 5% down payment.

If you happen to be a Veteran and qualify for a Kentucky VA loan,  you could possibly get approved for a VA loan with no minimum credit score. 

In reality, it is very difficult to get for a VA loan with a score below 560 to 580 range, with most VA lenders requiring a 620 credit score. 

If you are looking to purchase a home in a rural area, you can look at doing a Kentucky USDA loan because they have no minimum credit score but most lenders will want a 620 to 640 credit score. 

Kentucky FHA Loan are your best bet you have a lower fico score or credit score.

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. You can go down to a 500 credit score potentially with a 10% down payment. 

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

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Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916

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