Buying your first house in Kentucky involves several steps, which can vary depending on the type of loan program you choose. Here’s a detailed guide on the steps and requirements for various Kentucky First Time Home Buyer loan programs:

1. Kentucky FHA Loans
Credit Score:

Minimum credit score typically required is 580 for 3.5% down payment.
Scores between 500-579 may qualify with a 10% down payment.
Income:

Stable and sufficient income to cover the mortgage payments.
Work History:

At least 2 years of consistent employment history.
Down Payment:

3.5% of the purchase price if the credit score is 580 or higher.
FICO Score:

Minimum FICO score of 580 for maximum financing.
Bankruptcy and Foreclosure:

Chapter 7 bankruptcy: 2 years from discharge with reestablished good credit.
Chapter 13 bankruptcy: 1 year of the payout period with satisfactory payment history.
Foreclosure: 3 years from completion date.
Debt Ratio:

Typically, a maximum debt-to-income (DTI) ratio of 56.9% on backend and 45% on the front end debt ratio.
Collections:

Must be addressed if they affect the borrower’s ability to repay the loan. Collections not required to be paid but must count in debt to income ratio sometimes if aggregate total on credit report is over $1000 total…Non-medical bills only, medical bills don’t count and usually not required to be paid or figure a payment unless you have a judgement of garnishment against your paystubs.
Mortgage Insurance:

Required for all FHA loans. Includes an