Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Can I get a Gift for A Down payment on a Kentucky ...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Can I get a Gift for A Down payment on a Kentucky ...:   For many Kentucky first time buyers , saving for a down payment is one of the most challenging steps in fulfilling their dream of purchas...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky First-time Home Buyer Programs

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky First-time Home Buyer Programs: Buying your first house in Kentucky can be a scary process. Here are the main home loan programs that homebuyers use to buy their first hous...

Kentucky First Time Home Buyer Loan Options







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


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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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky FHA Annual MIP and VA Funding Fee Reducti...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Kentucky FHA Annual MIP and VA Funding Fee Reducti...:   HUD and VA have both announced reductions to the costs associated with their loans in Kentucky for FHA and VA loans and lower mortgage ins...

The best Kentucky first-time homebuyer programs in Kentucky

Top Loan Programs for First-Time Homebuyers in Kentucky FHA, VA, USDA and KHC Down Payment Grants

 Buying your first home in Kentucky can be both exciting and overwhelming. With the right loan programs and financial assistance, homeownership is more achievable than ever. Whether you need low down payment options, credit flexibility, or down payment assistance, there are Kentucky first-time home buyer programs designed to help.

In this guide, we’ll cover FHA, VA, USDA, Kentucky Housing Corporation (KHC), and down payment assistance programs to help you make the best decision.

Kentucky First-Time Home Buyer Loan Programs


1. FHA Loans – Low Down Payment, Credit-Friendly

Best for: Buyers with lower credit scores or limited savings

Minimum Credit Score: 580 (3.5% down), 500 (10% down)
Debt-to-Income (DTI) Ratio: Up to 57% with compensating factors
Mortgage Insurance: Required for the life of the loan
Down Payment Assistance Available: Yes
Why Choose an FHA Loan?
FHA loans are perfect for first-time home buyers in Kentucky who may not have a perfect credit history or large down payment. These loans are insured by the government, making them easier to qualify for.


2. VA Loans – No Down Payment for Military Buyers

Best for: Veterans, active-duty service members, and eligible spouses

Minimum Credit Score: 580-620 (varies by lender)
Down Payment: $0 down payment required
Mortgage Insurance: None (No PMI)
Debt-to-Income Ratio: Up to 50%+ with strong credit

Why Choose a VA Loan?

VA loans provide 100% financing, meaning no down payment is required. They also have lower interest rates and no private mortgage insurance (PMI), making them one of the best loan programs for Kentucky first-time homebuyers who qualify.


3. USDA Loans – 100% Financing for Rural Buyers

Best for: Buyers looking in USDA-eligible rural or suburban areas

Minimum Credit Score: 640 preferred
Down Payment: $0 down payment required
Income Limits: 115% of the area’s median income
Location Restrictions: Must be in a USDA-eligible area

Why Choose a USDA Loan?

If you’re looking to buy in a qualifying rural area, a USDA loan offers 100% financing, meaning no down payment is needed. It’s a great option for buyers with limited savings.


4. Kentucky Housing Corporation (KHC) Loans – Down Payment Assistance

Best for: First-time buyers needing down payment and closing cost help

Minimum Credit Score: 620+
Down Payment Assistance: Up to $10,000
Income Limits: Varies by county

Key Factors for Kentucky First-Time Home Buyers in 2025


1. Credit Scores: The Gateway to Mortgage Approval

Your credit score determines loan eligibility and interest rates. Here’s what you need:

Minimum Scores:

FHA Loans: 580+ (3.5% down) or 500–579 (10% down).

Conventional Loans: 620+.

Improving Your Score: Pay down debt, dispute errors, and avoid new credit lines. Learn how to boost your credit score here (internal link).

2. Down Payments: How Much Do You Really Need?


Kentucky Average Down Payment: 6–10% (

–
13,500–22,500 on a $225k home).

Low Down Payment Options:

FHA Loan: 3.5% down.

USDA Loan: 0% down (rural areas).

KHC Down Payment Assistance: Up to $10,000 for eligible buyers. Explore Kentucky Housing Corporation (KHC) programs (external link).

3. 2025 Interest Rate Trends in Kentucky


Average rates are projected at 6.2–7.5% (Freddie Mac, 2024). Lock in lower rates by improving your credit score and shopping lenders.

4. Income Ratios: What Lenders Look For


Most lenders use the 28/36 rule:

28% of gross income on housing costs.

36% on total debt.

5. Kentucky Home Prices: Where to Buy


Louisville: $250k median.

Lexington: $275k median.

Rural Areas: As low as $150k.





Joel Lobb, Kentucky Mortgage Expert on FHA, VA, USDA and KHC
Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA


+1 502-905-3708
kentuckyloan@gmail.com


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How to Qualify For A Kentucky Mortgage Loan

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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



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#57916http://www.nmlsconsumeraccess.org/






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Job History and Income Requirements for a Kentucky Mortgage Loan Approval

Mortgage Loan Work History Requirements

Understanding the work history requirements for different mortgage loan types can help streamline your application process.



 







Conventional Mortgage Loan Work History Requirements

Job History Required:

  • 2 years of related work history is generally expected.
  • If there are employment gaps, most lenders like to see at least 6 months at the current job.

Compensating Factors:

  • If someone has less than 2 years total work history, it may still be acceptable if they can document relevant education or provide a letter of explanation about a recent job change.
    • Essentially, the borrower should show how their background (e.g., schooling or on-the-job training) supports their current position.

FHA Mortgage Loan Work History Requirements


Job History Required:

  • 2 years of related work history is preferred.
  • 6 months at the current job if there have been employment gaps in the recent past.

Compensating Factors:

  • The FHA lender wants to feel confident the borrower is qualified for their current position and likely to continue in that job (or move into a better position).
    • It’s all about showing stability and a solid likelihood of ongoing employment.


VA Mortgage Loan Work History Requirements

Job History Required:

  • 2 years or a combination of relevant schooling/training or military service to cover that two-year window.
  • If the borrower is active military, they should be more than 12 months away from their release date.

Compensating Factors:

  • The lender needs to verify the borrower has the necessary skills for the current job.
    • This could be demonstrated through a relevant degree, specialized training, or prior work experience.

USDA Mortgage Loan Work History Requirements

Job History Required:

  • There’s no minimum time the borrower must be in the current position.
  • However, they need to prove 2 years of work or related history overall.

Compensating Factors:

  • It’s fine if the borrower has moved around between jobs, but they must explain any big gaps or changes.
  • If the borrower spent time getting a degree or had a period of military service, they can document those periods (e.g., transcripts, discharge papers) to fill that two-year window.


Each loan program has its own guidelines, but they all circle back to the same main point: lenders want to see a stable or justifiable work history. Even if someone doesn’t have a full two years in one specific role, there are plenty of ways to show their background and explain any gaps—through education, training, military service, or simply providing a solid letter of explanation.

Remember, these requirements can also vary slightly depending on individual lender overlays (extra guidelines), so it never hurts to check with specific lenders. But in general, if someone can document a consistent timeline (or provide clear reasons if there are gaps), they’re on a good path for mortgage approval.

2.  📞 Call/Text - 502-905-3708

Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans


🏢 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

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