You can purchase many homes in Kentucky using what is known as a “conventional loan” or “conforming loan.” This is one of the most common types of mortgages, and it can be a good fit for homebuyers with a range of financial situations and requirements.
A conventional home loan allows you to borrow up to the limit set by Fannie Mae and Freddie Mac for conventional mortgages. It is possible to borrow over those limits, but for that, you need to apply instead for a Kentucky jumbo loan.
Conventional loan limits are set according to county. Let’s say that you are shopping for a home in Louisville. That would place the house in Jefferson County, with the following conventional loan limits in 2019:
These are the standard conforming loan limits which apply to most counties. Only in high cost areas are you likely to see higher conforming loan limits.
Homes in Kentucky are usually very reasonably priced, so these conforming loan limits should apply throughout the state. The loan limits are reviewed and revised every year, so we can check your county as well as the latest conforming loan limits when you apply for a mortgage.
Mortgage rates and other features of conventional loans in Louisville and throughout KY vary based on factors such as the lender you work with and your own borrower profile. Here is what affects your bargaining power:
Your credit score and debt-to-income (DTI) ratio.
Whether you are gainfully and stably employed.
The down payment amount you can afford.
Details of your financial history.
Down payments for conventional mortgages range as low as 3% and as high as 20%.
Conforming loans in Kentucky can carry adjustable or fixed mortgage rates. Rates are most affordable for homebuyers with competitive borrower profiles.
What Our Clients Are Saying
Ready to find a competitive conventional loan with an interest rate and term which suits your needs? Whether you are located in Louisville or anywhere else in the state, First Savings Bank can match you with an ideal loan. Please call 502-238-9655 to apply now.
First Savings Bank Louisville is located on 295 N Hubbards Ln #302, Louisville. From Louisville International Airport (SDF) head southwest on Terminal Dr and take the ramp onto I-264 E. Then use the right 2 lanes to take exit 21 for KY-1447 W and use any lane to turn left onto KY-1447/Westport Rd. Finally, turn left onto Castleview Dr, turn right and First Savings Bank Louisville will be on your left.
Monday through Friday 8:30AM–5PM.
For additional questions you can call us at (502) 238-9655 or you can find us on Superpages.
First Savings Bank Louisville NMLS ID: 411341 is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.