Are you in search of a low down payment mortgage product? An FHA home loan could be the ideal mortgage for your needs.
What is an FHA Mortgage?
An FHA mortgage is a home loan that is backed by the Federal Housing Administration (FHA).
Guaranteeing your loan offsets the lender’s risk, which in turn facilitates an array of benefits for you as the borrower.
What are the Benefits of FHA Mortgage in KY?
Here are a few reasons to choose an FHA mortgage:
- With an FHA mortgage, you can move into a home with a low down payment.
- You can qualify for a low down payment and affordable rates without perfect credit.
- Closing costs are capped, which also helps to keep home purchase affordable. The seller can pay them as well.
- When buying a home with an FHA mortgage, you can choose your loan term and whether you want fixed or adjustable rates.
- FHA loans may be used not just for home purchase, but also for construction, renovation, refinance or debt consolidation.
How to Qualify for a Kentucky FHA Loan
In order to buy a home using an FHA mortgage, you need to meet the following basic requirements:
- he minimum credit score is 500. With a credit score of 580 or above, you can qualify for a lower down payment.
- Your debt-to-income (DTI) ratio needs to be 43-45%.
- You need a clear Credit Alert Verification Reporting System (CAIVRS) record.
- You must be on a solid career course with at least two consecutive years of employment (these must be the most recent two years).
- Following a bankruptcy, you must wait 12-24 months before applying. Following a foreclosure, you must wait 3 years.
- FHA mortgages are only for primary residences constructed on or after June 15th, 1976 on a permanent foundation.
Apply for an FHA Mortgage in Kentucky or Beyond
Find out if you qualify for an FHA mortgage so you can move into a new home with a low down payment. Please give us a call at (502) 657-4299 to schedule your mortgage consultation. We can help you apply for an FHA mortgage in Kentucky, Tennessee, Indiana and Florida.