Kentucky FHA Loan Changes for 2022

Here’s what you need to know about Kentucky FHA Loans and the changes that have been made for 2022.

What is a Kentucky FHA loan?

It stands for a Federal Housing Administration loan, meaning it is backed by the U.S. government. It is not made by a government agency. You deal directly with a mortgage lender or broker to get the loan, but the FHA will typically buy the loan from the lender after it is made or guarantee the lender against loss. FHA loans typically require lower down payments and credit scores than most conventional loans, making them a clear favorite among first-time buyers.

What Are the Terms?

These loans can have terms of either 30 years or 15 years. The interest rate is fixed for the entire loan length.

FHA borrowers are required to pay mortgage insurance premiums, but after a borrower’s equity in their home increases they…