entucky First-Time Homebuyer Loan Programs: FHA, VA, and USDA Explained
If you're a first-time homebuyer in Kentucky, navigating the mortgage landscape can feel overwhelming—but it doesn’t have to be. At Joel Lobb, Mortgage Loan Officer, we simplify the process by helping you understand your best loan options. Here’s a side-by-side breakdown of FHA, VA, and USDA home loans—each designed to help you become a homeowner without breaking the bank.
✅ FHA Loan – Ideal for Buyers with Lower Credit Scores
Minimum Credit Score: 580+ (lower scores possible with a higher down payment)
Down Payment: 3.5% minimum
Debt-to-Income Ratio:
Front-End: Max 31%
Back-End: Max 43%
Employment: Steady job history (2 years preferred)
Past Credit Issues: Lenient with past bankruptcy or foreclosure
Time to Close: ~30–45 days
Appraisal Requirements: Must meet FHA’s Minimum Property Standards
Income Documentation:
Recent pay stubs
W-2s (past 2 years)
Tax returns
Proof of any additional income
🎖 VA Loan – Zero Down for Veterans and Active Duty Military
Minimum Credit Score: No official requirement (most lenders look for 620+)
Down Payment: None required
Debt-to-Income Ratio: Up to 41% (can go higher with compensating factors)
Employment: Stable income and employment
Past Credit Issues: More flexible on bankruptcies and foreclosures
Time to Close: ~45–60 days
Appraisal Requirements: Property must meet VA Minimum Property Requirements (MPRs)
Income Documentation:
Pay stubs
W-2s
Tax returns
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