Kentucky Mortgage Loan

How to get approved for a Kentucky Mortgage Loan in 2024

Qualifying for an FHA Loan in Kentucky

When it comes to buying a home in Kentucky, FHA loans are a popular choice for many first-time homebuyers due to their flexible qualifying criteria. If you’re considering an FHA loan in the Bluegrass State, understanding the key qualifying factors is crucial. Here’s a comprehensive guide to the criteria you need to know:

1. Credit Score Requirements:
   • FHA loans are known for accommodating borrowers with lower credit scores. While the minimum required credit score can vary, typically, a credit score of 580 or higher is needed to qualify for the minimum down payment of 3.5%. However, borrowers with credit scores between 500 and 579 may still be eligible with a higher down payment, usually around 10%.
2. Down Payment:
   • The minimum down payment for an FHA loan in Kentucky is 3.5% of the home’s purchase price. This is advantageous for buyers who may not have substantial savings for a larger down payment, making homeownership more accessible.
3. Work History:
   • Lenders typically look for a steady 2 year employment history when considering FHA loan applications. A consistent work history, preferably with the same employer or within the same field, helps demonstrate financial stability and the ability to repay the loan.
4. Debt-to-Income Ratio (DTI):
   • The debt-to-income ratio is a crucial factor in mortgage approval. For FHA loans, the maximum allowable DTI ratio is typically around 40% to 45% of your gross monthly income and can go higher up to 56% with good credit scores, large down payment or shorter term loan although lenders may consider higher ratios in certain cases if compensating factors are present.
5. Bankruptcy and Foreclosure:
   • FHA loans have lenient guidelines regarding bankruptcy and foreclosure. Generally, borrowers with a past bankruptcy may qualify for an FHA loan after two years if they have re-established good credit and demonstrated responsible financial behavior. For foreclosures, the waiting period is usually three years.
6. Mortgage Term:
   • FHA loans offer various mortgage term options, including 15-year and 30-year fixed-rate loans. The choice of term depends on your financial goals and ability to manage monthly payments.
   • Occupancy: Primary residences not for rental properties
   • Mortgage Insurance on the loan for life of loan. Larger down payments and shorter terms will reduce the upfront mi and monthly mi premiums
   • can be used for refinances, not only for purchases.
   • Max FHA loan in Kentucky is $498,257. This changes every year
   • No income limits nor property restrictions on where home is located
   • Can close within 30 days typically with good appraisal and title work

Understanding these qualifying criteria can help you navigate the FHA loan application process in Kentucky more effectively. Working with an experienced mortgage professional can also provide valuable guidance and assistance tailored to your specific financial situation and homeownership goals.

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

 

 

 

 

NMLS 57916  | Company NMLS #1364/MB73346135166/MBR1574

 

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).

 

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

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

 10 Tips for Mortgage  Loan Applicants Not to After Pre-Approval for a KY Mortgage
 

1. Don’t change jobs or become self-employed. 

2. Don’t buy a car, truck, van, boat or motorhome unless you plan to live in it. 

3. Don’t use your credit cards or let your payments fall behind. 

4. Don’t spend the money you have saved for your down payment. 

5. Don’t buy furniture before you buy your house. 

6. Don’t originate any new inquiries on your credit report. 

7. Don’t make any LARGE or CASH deposits into your bank account. 

8. Don’t change bank accounts. 

9. Don’t co-sign for anyone. 

10. Don’t purchase anything until after the closing. 

 

Kentucky Mortgage Pre-Approval Checklist of Items Needed for Approval Letter

1. Bank Statements - Last 2 Months – All bank statements for all accounts from the last 2 months. Include all numbered pages of all bank statements!

2. Driver's License – Legible state-issued driver's license

3. Evidence of Insurance – For all properties owned

4. Federal Tax Returns - Last 2 Years – Last 2 years of federal tax returns to prove income, include all schedules

5. HOA statement (if applicable) – Most current statement

6. Loan Application (1003) – Please complete all fields

7. Mortgage Statement(s) – Most recent for all properties owned

8. Pay Stubs - Received in Last 30 Days – Last 30 days of pay stubs to prove income

9. Social Security Card – Legible social security card to prove social security number

10. W-2s - Last 2 Years – Last 2 years of W-2s to prove income