Louisville Kentucky FHA Loans

Conventional loan
A conventional loan isn’t insured or guaranteed by a government entity. You can take one out through a private lender like a bank, credit union or mortgage company. While conventional loans are more difficult to qualify for than government loans, they’re also usually more flexible.

Minimum credit score: 620
Minimum down payment: 3%
May be good for: Borrowers with good credit and minimal debt
Fannie Mae HomeReady
HomeReady is a conventional mortgage loan offered by Fannie Mae. If you apply for one, you can use income from your parents, grandparents, relatives and others to help you get approved. Upon approval, you may get rid of your private mortgage insurance, or PMI, after you pay down 20% of your home’s value.

Minimum credit score: 620
Minimum down payment: 3%
May be good for: Borrowers with lower-than-average incomes
FHA loan
FHA loans are insured by the Federal Housing Administration. While these loans have low down payment and credit score requirements, you’ll be required to pay mortgage insurance to protect the lender in the event you default.

Minimum credit score: 500
Minimum down payment: 3.5% if your credit score is 580 or higher; 10% if your score falls in the 500-579 range
May be good for: Borrowers with lower credit scores and down payment amounts
Freddie Mac Home Possible
The Freddie Mac Home Possible mortgage has a low down payment of 3%. But in order to qualify, you can’t earn more than 100% of the annual median income in your area.

Minimum credit score: 660
Minimum down payment: 3%
May be good for: Borrowers with lower incomes and down payment amounts
Non-qualified (non-QM) mortgage
A non-qualified (non-QM) mortgage is for homebuyers who are unable to meet the strict criteria of a qualified mortgage, which meets federal guidelines. It can allow you to get approved for a home loan if you’re self-employed, work a nontraditional job or lack the documentation that most mortgages require.

Minimum credit score: Varies by lender
Minimum down payment: Varies by lender
May be good for: Borrowers who are self-employed or earn alternative sources of income
USDA loan
Backed by the United States Department of Agriculture, a USDA loan is a low-interest, zero-down-payment mortgage that can help you finance a home in an eligible rural area.

Minimum credit score: 640
Minimum down payment: 0%
May be good for: Borrowers with low to moderate incomes who want to buy a home in a rural area
VA loan
A VA loan is guaranteed by the United States Department of Veterans Affairs. As long as you’re an active service member, veteran or eligible spouse, you may get approved for a VA loan with 0% down and no PMI. But keep in mind that you’ll likely have to pay a funding fee of up to 3.6% of your loan amount.

Minimum credit score: Varies by lender
Minimum down payment: 0%
May be good for: Borrowers who are active service members, veterans or eligible spouses