The amount you can borrow on a mortgage in Kentucky depends on what type of mortgage you get.
- You can get up to 647.$200 with a conforming mortgage in Kentucky or 420.Borrow $680 with an FHA mortgage.
- By more than 647.To borrow $200, you must apply for a jumbo mortgage.
- The best type of mortgage for you could also depend on insurance costs or your credit score.
- Check out today’s mortgage and refinance rates in Kentucky on Insider.
If you buy a home in Kentucky in 2022, your mortgage loan limits are the same in each county.
For a conforming mortgage – which you might think of as a “regular mortgage” – you can get up to 647.Borrow $200. This is the limit set by the Federal Housing Finance Agency.
The limit is lower for FHA mortgages backed by the Federal Housing Administration. You can save up to 420.Borrow $680 for a single-family home or more for an apartment building.
Note: In order to be eligible for a loan in Kentucky more than 647.To borrow $200 you will need to apply for a jumbo mortgage. Borrower requirements for jumbo mortgages vary by lender, but generally require a credit score of at least 700.
How to find out which mortgage type is best for you
Your choice between a conforming, jumbo or FHA mortgage could depend on how much you want to borrow. You can borrow more with a conforming mortgage than with an FHA loan, and you could borrow even more with a jumbo mortgage.
Otherwise, it may come down to whether or not you meet the qualifications. A conforming mortgage typically requires a credit score of at least 620, and for a jumbo mortgage you need a higher one. You qualify for an FHA mortgage with a credit score of at least 580 and a 3.5% down payment. You can even get an FHA mortgage with a credit score as low as 500, but you have to put 10% down at a lower score.
Note: You might also be eligible for a VA mortgage if you’re an active military member or veteran. In addition, a USDA mortgage may be an option if you earn low to moderate income and are buying in a rural area. None of these home loans have a borrowing limit.
If you qualify for all of these types of mortgages, you can base your decision on insurance costs.
“The FHA has something called an upfront MIP or upfront mortgage insurance premium,” says Darrin Q. English, senior community development loan officer at Quontic Bank. “You are not actually paying out of pocket to finance this MIP, but it is added to the loan amount. When you receive a closing disclosure or loan estimate, you will see that there will be a measurement of your loan amount , then there will be an adjusted loan amount that adds that MIP up front.”
Conforming and jumbo mortgages charge what’s called private mortgage insurance (PMI) if you cave less than 20%. But the lender cancels PMI once you get 22% equity in your home, and you can even apply to cancel it early when you reach 20% equity. With an FHA mortgage, you must pay MIP for the life of your loan.
There is one big exception to this rule, English explains. If you make a 10% down payment on an FHA mortgage, your MPI will be in the 11. Year of your loan canceled.
If you’re not sure which mortgage is best, contact a mortgage lender to speak with a loan officer. You can even apply for a pre-qualification with a lender to see what you can borrow, and it won’t hurt your credit score.