With its rich history, culture, and abundant natural landscapes, Kentucky is a beautiful state to call home. As the birthplace of bourbon, bluegrass, and the mint julep, it’s easy to see why Kentucky is on many Americans’ wishlist for an affordable place to lay down roots, and we’re happy to have a home there as a Kentucky mortgage company and home loans.
Plus, with median housing prices for Kentucky at 20% less than the nation’s median, the state boasts relatively cheap housing, especially in rural areas and smaller towns.
Still, an average home price just shy of $200,000 is a hefty price tag without support. So, how do you look for a reputable Kentucky mortgage company and home loans? Of course, The Home Loan Expert is a great place to start—we take pride in helping consumers access affordable loans for their first, second, or any type of home.
Luckily, Kentucky’s mortgages are some of the most competitive in the nation. Today we’ll discuss the best mortgage lenders in Kentucky, government-backed loans, and ways Kentucky borrowers can enjoy homeownership.
Buying a Home in Kentucky
Housing prices across the United States are increasing, and Kentucky is no exception. According to the Lexington-Bluegrass Association of Realtors, median housing prices in 30 Kentucky counties have gone up almost 10% from 2021.
The most impacted? Scott, Jessamine, and Woodford counties. On top of increasing sale prices, interest rates are also rising. The Kentucky average interest rate for a 30-year fixed mortgage is 5.01%.
But don’t fret. Kentucky homes are still affordable, especially when compared to other states. According to Zillow, the median price for a home in Kentucky is $193,243 — between $50,000 – $150,000 cheaper than houses in neighboring states like Virginia ($350,000), Tennessee ($289,053), and Illinois ($259,879).
Despite the state median, $193,243 isn’t your average for every county. Let’s take a look at average Kentucky home prices across the state.
|Kentucky City||Average Home Price (from Zillow)|
Bottom line? Some Kentucky cities are more expensive for housing than others. However, be prepared to fork up extra cash if you really want a home. Why? Kentucky and many other states are seeing increased bidding wars for property.
But before we get into bidding wars, let’s backtrack a few steps. The most important part of your homeownership success in Kentucky is the mortgage.
Kentucky Mortgage Requirements
Qualifications for Kentucky mortgage companies and home loans (mortgages) will vary. However, these are a few general criteria you’ll need to meet:
- Down payment: A 20% downpayment ensures you won’t have to pay mortgage insurance on your monthly payments. Let’s say your dream Kentucky home has a price close to the state median, around $200,000. A 20% down payment would add up to $40,000. Some loans like the VA and FHA loans only require between 3%-10% as a down payment, in which you’d need to save up $6,000 – $20,000, respectively.
- Credit: The best mortgage lenders likely won’t lend to you if you have poor credit. A history of bankruptcy or consistently late payments could decrease your credit score. For example, you can’t get an FHA Loan unless your credit score is at least 500 — that’ll score you a loan with a required 10% down payment. If you have a slightly higher score (580+), you can get away with as little as a 3.5% down payment.
- Income: The best mortgage lenders like to see consistent income, either through government benefits, employment, inheritance, or anything else to feel comfortable giving you a loan. What’s more important is how your income compares to your debts. For example, every FHA Loan requires customers to have a maximum of 43% debt-to-income ratio. Finally, time is a consideration. Lenders will assess your income history, favoring long track records of consistent income over shorter ones. To verify income, you’ll need financial documents like tax slips, bank statements, and employment letters.
Now, what kinds of loans can all these requirements get you in Kentucky?
Best Home Loan Mortgages Options in Kentucky
Kentucky has a homeownership rate of about 72%, mainly for homes with four bedrooms or more. Here are a few home loan mortgage options that homeowners might secure in Kentucky with The Home Loan Expert.
Adjustable Rate Mortgages (ARM): What if you sign a fixed-rate mortgage and interest rates fall dramatically? Unfortunately, you’re out of luck. However, adjustable-rate mortgages have interest rates that fluctuate with the market. Keep in mind that while ARMs might be a solid short-term choice, they pose some risk.
Government-insured mortgages (FHA Loans, VA Loans, USDA-backed mortgages): Remember the FHA Loans we mentioned earlier? Those are examples of government-backed mortgages that require less of a down payment. Backed by the Federal Housing Authority, FHA Loans don’t have the same credit qualifications as conventional loans.
Another government-backed loan is the VA Loan, which are loans for veterans. The US Department of Veteran Affairs offered these special loans to support veterans in their path to homeownership. Eligible borrowers can access VA Loans through the best mortgage lenders, as the federal government backs a portion.
Finally, Kentucky residents may access USDA-backed mortgages — mortgage loans for prospective homeowners in rural Kentucky.
Fixed-rate mortgages: Interest rates remain the same for a fixed period, as the name of this loan suggests. Fixed-rate mortgages are likely the most popular type of loan because rising interest rates cannot change their fixed rates.
Conventional mortgages: These are mortgage loans that aren’t government-backed. You might hear conventional mortgages used interchangeably with “fixed-rate mortgages;” however, some conventional loans have adjustable interest rates.
If you’re unsure which mortgage loan is best for you, check out a complete list of home loan options available to Kentucky residents!
Best Mortgage Lenders In Kentucky
The Home Loan Expert
The Home Loan Expert is a direct mortgage lender with a knack for impeccable customer experience. They don’t outsource your application to third parties; instead, they walk you through the whole process from start to finish. If you’re looking for reliability as you shop for a home equity loan, you’ll love The Home Loan Expert’s dedicated consultants and personal touches.
We offer home equity loans and similar, from debt consolidation refinance for your current mortgage to home equity loans that many clients use for debt consolidation loans.
What sets us apart from our competitors? We believe it’s our mission to end the confusing, inaccessible nature of mortgages. Everyone deserves the chance to be a homeowner, and our dedicated staff works to empower our clients and make that a reality.
As for the process? Simply fill out a 5-Minute Loan Approval* application!
Loans & Services:
- Adjustable-Rate Mortgages
- Bank Statement Mortgages
- Cash-Out Refinance
- Conventional Loans
- Debt Consolidation
- FHA Loans
- First Responder Loan Program
- Fixed-Rate Loans
- Home Purchase Loan
- Jumbo Home Loans
- No Income Verification Loans
- Union Loans
- USDA Loans
- VA Loans
- Zero Dollar
- Unparalleled customer experience
- Reliability in having the entire process under one roof
- Personable attitude and nature
- Lowest closing costs
- Flexible loan and mortgage options
- Down payment assistance
- There are a lot of options. You’ll probably need to research our loan options or reach out to a team member who will be happy to help determine which option is best for you.
Minimum down payment: Ranging from 3% to 0% (for VA members)
Hero Loan – one of the fastest-growing lending platforms in the country –serves active-duty military, veterans, and their families. They underwrite all VA loans in-house, meaning lower mortgage rates and no upfront or out-of-pocket costs, including the appraisal. As a direct-endorsed VA Lender, Hero Loan can close VA loans in as little as 14 days, compared to most lenders that take up to 60 days.
Hero Loan has an enticing roster of loans and services that they offer. Apart from the standard VA loan, some of these also include:
- VA Streamline Refinancing
- Conventional Loan Refinancing
- VA Cash-Out Refinancing
- FHA Loans
After you’ve made your choice, you can use their website to fill out a few preliminary details and apply for the loan or service you have chosen. A dedicated loan officer will then take you through the minutiae and explain the details before committing.
In addition, they will also help you get the all-important VA Loan Certificate of Eligibility and fill out all the VA paperwork for you. After you’ve sorted out the necessary details, all that remains for you to do is wait till the loan is closed. But don’t worry–with Hero Loan that takes as little as 14 days (compared to the standard two months)!
- Complete all VA paperwork for clients
- Underwrite all VA loans in-house
- Can close VA Loans in as little as 14 days
- No appraisal fees or out-of-pocket fees
- Services are for active-duty military, veterans, and their families only
Minimum down payment:
$0 down payment
Headquartered in Dallas, Texas, PrimeLending has a simple 5-step process to help prospective homeowners secure their dream home. You can complete the entire application online and keep track of your progress throughout every step. They offer both FHA and VA Loans, with minimum credit score requirements of 580 and 620, respectively.
Here’s a quick list of all of PrimeLending’s home loan products:
- Refinancing to fixed-rate, conventional, and adjustable-rate mortgages
- Refinancing to convert the mortgage to cash
- Jumbo Loan
- FHA Loan
- VA Loan
- USDA Loan
- Down payment assistance
- Construction loan
Despite the online application and extensive website, the editorial team failed to add one critical component to their public web pages: interest rates! PrimeLending doesn’t list mortgage rates for easy reference online. Borrowers must contact the lender for information.
- Easy online application including photo and document uploading
- Closing cost assistance
- Flexible with proof of income (allows bank statements in the absence of tax documents)
- Wide variety of home loan options
- Mortgage rates aren’t displayed on the website.
Minimum down payment:
As little as 0% or 3%
Ally Lending offers a range of online financial services, including banking, lending, investing, corporate finance, and debt services. This mortgage lender doesn’t have a bricks and mortar headquarter. Rather, it’s a completely online platform that offers mortgage loans to people without them having to leave their home. Interest rates are transparent, and range between 4.25% – 5.125%.
One drawback for Ally Lending is its lack of home loan options. Despite offering some loans with 3% down payment requirements, the mortgage lender doesn’t offer FHA or VA Loans.
Ally Lending offers the following home loans:
- Fixed-rate mortgages
- Adjustable-rate mortgages
- Jumbo Loans
- No lender fees
- Quick pre-approval
- 10-day closing
- Staffed with home loan experts
- It doesn’t offer FHA Loans, VA Loans, or USDA Loans
- No home equity loans
Minimum down payment:
As little as 3%.
Refinancing in Kentucky
Mortgage approval is the end goal, but not all mortgages should be absolute. Meaning? You might not have the most favorable terms or interest rates for various reasons, from less-than-stellar credit to limited down payment ability.
But that doesn’t mean your mortgage is the end of the line. That’s where refinancing comes in.
Are you paying mortgage insurance or struggling with sky-high interest? These are two examples of issues where refinancing could help. It entails ending your current mortgage and switching it to a new loan with better terms.
Here are some refinancing options from The Home Loan Expert you might consider:
- Cash-out refinance: Switch equity for tax-free cash by refinancing to a larger loan amount. A fabulous option for paying off significant debts, financing renovations, or paying for anything else with a hefty price tag.
- New mortgage term: Are you feeling the pressure of your 15-year mortgage term? We understand. But maybe that was the only term you could get approval for when you first signed. Imagine switching to a 30-year term—that would stretch out your payments and alleviate the pressure every month.
- Lower monthly payment: Ready for a lower interest rate? A few years of positive credit history and regular mortgage payments might make you eligible for more competitive rates. Or even better—you might not have to pay mortgage insurance anymore!
Kentucky Mortgage Calculators
Mortgage calculators can help determine your mortgage payment and break down that payment into individual expenses such as taxes, insurance, and HOA fees. Calculate your monthly mortgage payment for a home in Kentucky by inputting your loan term, home price, and down payment into the corresponding box on the mortgage calculator.
In addition to the mortgage calculator, we offer a loan comparison calculator, rent vs. buy calculator, and refinance calculator, among others. Our goal is to provide clients with a full suite of tools so that they may make the most informed decision possible about their home loans.
The Home Loan Expert in Kentucky
We provide Kentucky mortgage services in:
- Bowling Green
Our home loan options in Kentucky include:
- Adjustable-Rate Mortgage
- Bank Statement Mortgage and No-Income Verification Loans
- Cash-out Refinance
- Conventional Loan
- FHA Loan
- Debt Consolidation
- First-Responder Loan Program
- Fixed-Rate Loans
- Home Purchase Loans
- Jumbo Home Loan
- Rate and Term Refinance
- Teacher Appreciation Program
- Union Loan
- USDA Loan
- VA Loan
- Zero Dollar Down Loan
Our Kentucky Story
We moved into the Bluegrass State in 2018 after seeing that Kentucky homebuyers—from big-city residents in Louisville to small-town dwellers in Harlan—weren’t being served well by big, impersonal corporate lenders. And it didn’t take long for our new and improved way of handling mortgages to get attention.
Kentucky has taught us that horses are a huge deal, that bourbon goes great with everything, and that other Kentucky lenders close loans “slower than molasses” compared to our team!
Today, we’re proud to serve homeowners in Louisville, Lexington, Bowling Green, Owensboro, Covington, Hopkinsville, Richmond, Florence, Richmond, and many more fantastic Kentucky neighborhoods.
Ready to jump on your path to Kentucky homeownership? The Home Loan Expert has decades of experience in the mortgage industry, and we look forward to helping you finance your dream home in Kentucky. Get your 5-minute pre-approval today!
You’ll find our Kentucky offices at:
9850 Von Allmen Ct
Louisville, Kentucky 40241