Qualifying for an FHA Loan in Kentucky What Is an FHA Loan in Kentucky?
An FHA loan is a government-backed mortgage that allows Kentucky borrowers to secure financing with lower credit score requirements, smaller down payments, and competitive interest rates. The government insurance reduces the lender’s risk, enabling more Kentuckians to qualify for a mortgage.FHA Loan Requirements in Kentucky
Requirement Details
Credit Score - 580+: Eligible for a 3.5% down payment.
- 500-579: Requires a 10% down payment.
Down Payment Minimum of 3.5% for qualified buyers; 10% for lower credit scores.
Debt-to-Income Ratio (DTI) - Ideal: 45% or lower.
- Acceptable: Up to 57% with compensating factors.
Employment History Must provide at least **2 years of consistent employment