Don’t have a perfect credit score, but wondering if there is still a way to purchase a home with a low down payment?
Whether shopping for your first home ever or searching for the right mortgage as a repeat homebuyer, an FHA loan may be an ideal fit for your needs.
An FHA loan is a mortgage which is insured by the Federal Housing Administration (FHA). By insuring your loan, the FHA makes it possible for lenders to offer you a more competitive mortgage than you might otherwise be eligible for. This is one reason why FHA loans are among the top mortgage products recommended for first time homebuyers. It is also why many repeat homebuyers turn to them as well to keep home buying affordable.
When you take out an FHA mortgage in Kentucky, these benefits await you:
Your down payment might only be 3.5%, depending on your credit score.
Credit score requirements are not as rigorous for FHA mortgages as they are for conventional loans. The same is true of debt-to-income (DTI) ratio criteria.
Closing costs for FHA loans may be covered by the seller, or otherwise kept to a minimum.
Choosing between a fixed or adjustable mortgage rate is up to you.
With an FHA loan, you can buy a home, build one, refinance a current mortgage, or make upgrades or repairs.
To qualify for an FHA mortgage, you need to meet these requirements:
The minimum credit score for 10% down is 500. The minimum credit score for a 3.5% down is 580.
Your DTI ratio will need to be no higher than 56.9%.
Over the most recent two years, you must demonstrate you have been steadily employed.
You must have a clear credit alert interactive voice response system (CAIVRS) report.
You need to be able to afford to pay for private mortgage insurance (PMI) each month. Eventually, you may qualify to refinance to a different type of loan to remove this requirement.
While your financial history will be evaluated, you can still qualify for an FHA mortgage if you have had a bankruptcy or foreclosure in the past. You may only apply for an FHA loan for a primary residence.
What Our Clients Are Saying
If you are excited to purchase a home in Kentucky with just 3.5% or 10% down, please give us a call today at 502-238-9655 to schedule your FHA mortgage consultation. We can’t wait to get you into your new home in Louisville or anywhere in the state.
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.