Kentucky FHA Loans for Bad Credit for Kentucky First-Time Buyers
Explore how to qualify for a Kentucky FHA loan with bad credit.
What is an FHA Loan in Kentucky?
A Kentucky FHA loan is a government-backed mortgage program insured by the Federal Housing Administration. Itβs designed to help first-time homebuyers and borrowers with poor credit qualify for homeownership. These loans offer lower down payment options and more flexible credit and employment standards compared to conventional loans.
π Compare Kentucky FHA, VA, USDA, and KHC Loan Programs in Kentucky by clicking here
FHA Credit Score Requirements in Kentucky
You can qualify for a Kentucky FHA loan with a credit score as low as 500.
Credit Score Minimum Down Payment
580+ 3.5%
500β579 10%
Keep in mind: many Kentucky FHA lenders may require a minimum score of 620. Always shop multiple lenders.
Read more here about FHA loans and credit scores
Employment History and Income Requirements for a FHA Loan
To qualify for an FHA loan in Kentucky, you typically need:
2-year work history in the same job or field-Does not have to be same job.
Proof of stable income (W-2s, pay stubs, tax returns)
Acceptable DTI ratio (ideally under 43%, up to 50% with strong compensating factors)
Job Gaps- If you have been laid off for more than 6 months in the last two years, start of application date, then you will need to be on your current job for 6 months. They are only looking at the last 2 year work history....They are look
