Kentucky Mortgage Credit Scores & Approval Guide
Complete guide to credit requirements for FHA, VA, USDA, Conventional & KHC programs in Kentucky
Understanding Mortgage Credit Scores in Kentucky
Important: Mortgage lenders use FICO mortgage score models (FICO 2, 4, 5), not the VantageScore results you see on Credit Karma or free credit monitoring apps. This can mean a difference of 20-50+ points.
🧮 Quick Credit Score Assessment
Credit Score Requirements by Program
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🏠 Conventional Loans (Fannie Mae/Freddie Mac)Minimum: 620 for automated approval
Best rates: 740+ credit score
Down payment: 3% minimum for first-time buyers -
🏛️ FHA Loans500-579: 10% down payment required
580+: 3.5% down payment
Note: Individual lender overlays may apply -
🇺🇸 VA Loans (Veterans)Official minimum: None
Typical lender requirement: 580-620
Benefit: 0% down payment, no PMI -
🌾 USDA Rural HousingAutomated approval: 640+ typical
Manual underwriting: Lower scores considered
Benefit: 0% down in eligible rural areas -
🏡 KHC Down Payment AssistanceRequirements: Follows underlying loan program
Assistance: Up to $10,000 down payment help
Eligibility: First-time buyers, income limits apply
Credit Score Impact Breakdown
Fast-Track Credit Improvement Strategies
- Pay all bills on time — Set up autopay for minimum payments
- Lower credit utilization — Keep balances below 30% of credit limits (10% is ideal)
- Don't close old accounts — Keep them open to maintain credit history length
- Dispute errors immediately — Pull free reports from annualcreditreport.com
- Avoid new credit applications — Stop applying 6 months before mortgage shopping
- Pay down collections — Recent collections hurt more than old ones
Timeline for Credit Issues
- Late payments: 7 years
- Collections: 7 years from original delinquency
- Foreclosure: 7 years
- Chapter 7 Bankruptcy: 10 years
- Chapter 13 Bankruptcy: 7 years
💡 Pro Tip
You don't need perfect credit to get approved. Many of my clients get approved with scores in the 580-620 range using the right loan program and strategic planning.