Home prices in Kentucky tend to be very affordable, so many houses can be purchased with a conventional mortgage. But for homes which carry higher price tags, it may be necessary to apply for jumbo financing.
A jumbo loan is what you apply for when conventional financing cannot provide all you need to cover the cost of buying a home. This may happen when you need more financing than is available to you within the Fannie Mae and Freddie Mac limits for conventional mortgages.
To know if you need a jumbo loan, you need to know the conventional loan limits for Kentucky. These limits are set individually for each county. For Jefferson County in 2019, the conforming loan limits are:
If you are not sure what the conventional limits are for the county in Kentucky where you will be purchasing a home, we can tell you during your mortgage consultation.
Homebuyers thinking about applying for conventional loans in Louisville or other parts of Kentucky sometimes make the assumption that it will be difficult to qualify for a larger loan. The process of applying for a conventional mortgage is a bit more involved than that of applying for a conventional loan, but it is very similar across the board.
Your lender will consider the following when deciding whether to qualify you for a conventional loan:
Your credit score and debt-to-income (DTI) ratio.
The status of your employment and recent employment history.
Your down payment amount.
The cash reserves and assets you have available.
Additionally, jumbo financing requires that you get two appraisals.
While the requirements above are more rigorous for this type of loan than they would be for a conforming mortgage, if you have a competitive risk profile, you can qualify for excellent interest rates. It comes as a surprise to quite a few homebuyers who apply for jumbo loans that mortgage rates for these types of loans are not always higher than they are for conforming loans.
What about down payments? While higher on average, these too do not always exceed those of conforming loans. So applying successfully for a jumbo loan may be easier than you think, and the mortgage you qualify for could end up being more affordable than you imagined.
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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.
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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.