Here are three basic factors for qualifying for a Kentucky home loan:
Income and Job History - If you have a job or steady source of income, you're off to a great start. 2 year work history, does not have to be same employer, but what they are looking for is a stable employment history with a consistent income.
Gross income is used not net income off monthly income.
Down Payment - Many programs will work with 5%, 3.5%, and in some cases, even 0% down. Sometimes, closing costs can be paid for you as well. Some zero down home loan programs in Kentucky are:
USDA, VA, Kentucky Housing Down Payment Assistance Programs Chenoa Down Payment Assistance, and the Welcome Home Grant.
Credit – If you have a middle credit score over 620, you will be ahead of most borrowers. If your score is below 620, then you will be looking at an FHA loan with 3.5% down payment.
No bankruptcies in the last 2-4 years for most secondary market program and the higher your score the better the rate and mortgage insurance on a conventional loan.
