re you a first-time homebuyer in Kentucky looking to navigate the various loan programs available? Knowing the options and requirements for FHA, USDA, VA, Fannie Mae, and Kentucky Housing Down Payment Assistance Programs can help. This understanding can make your journey to home ownership smoother.
In this guide, we’ll explore each program’s down payment and credit score requirements. We will also look into the debt-to-income ratio and work history requirements. This will help you make informed decisions.
Kentucky First Time Home Buyer Programs Louisville Kentucky and Jefferson County Kentucky
Kentucky FHA Loan Program
Down Payment: FHA loans typically require a minimum down payment of 3.5% of the purchase price.
Credit Score: FHA loans are more flexible with credit scores. Usually, a score of 500 to 580 is required, depending on the lender.
Debt-to-Income Ratio: Front-end DTI ratio should not exceed 45%, and back-end DTI ratio should not exceed 50 to 56.99%.
Work History:A two year table employment history with at least 2 years of consistent income is preferred.
Kentucky USDA Loan Program
Down Payment: USDA loans offer zero down payment options for eligible properties in designated rural areas.
Credit Score: No lowest score. However, a credit score of 620 to 640 or higher is typically required for USDA loans.
Debt-to-Income Ratio: Maximum DTI ratio is 41 to 45.99%, although some lenders may allow higher ratios with compensating factors.
Work History: A two year e
