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Kentucky Mortgage Rates

Kentucky Mortgage Rates
Betsalel Cohen

Comparing Kentucky

In order to help you see how Kentucky mortgage rates compare with National rates, check out the following rate table from the industry website These rates represent national averages and are based on specific loan assumptions.

Shopping for Best Mortgage Rates in Kentucky

It is important to shop around for the best terms. Make sure that you compare rates, lender fees and learn about third party fees. When comparing mortgage offers check out the term (length), interest rate (fixed vs. variable), and if applicable the cost of mortgage insurance. Get more information about mortgage rates and mortgage fees. Also, FHA loans, which always require mortgage insurance, differ from conventional loans, which require Private Mortgage Insurance (PMI) if your loan to value ratio (LTV) is over 80%. Make sure that you use all of your costs when comparing loans.

Qualifying for a Mortgage in Kentucky

In order to qualify for the best mortgage rates in Kentucky it is important to have an excellent credit score. Also, you want to make sure that your debt to income ratio (DTI) and your downpayment or equity position , your loan to value ratio (LTV) are sufficient to qualify. Read this article about qualifying for a mortgage.

Mortgage Resources for Kentucky

Kentucky is the twenty sixth most populous US state. According to the US census, as of 2017, there is an estimated population of over 4.4 million residents, which represents 1.4% of the US population.

Besides traditional agriculture production, Kentucky's economy has expanded to include auto manufacturing, energy fuel production, and medical facilities. According to Wikipedia, "Kentucky ranks 4th among U.S. states in the number of automobiles and trucks assembled. The Chevrolet Corvette, Cadillac XLR ), Ford Escape, Ford Super Duty trucks, Ford Expedition, Lincoln Navigator, Toyota Camry,Toyota Avalon, Toyota Solara, Toyota Venza, and Lexus ES 350] are assembled in Kentucky." In addition Kentucky is the major producer of Bourbon Whiskey.

During the 2007 housing crisis and Great recession housing prices in Kentucky were more stable than most parts of the USA. Based on the FHFA all transaction Kentucky HPI, home prices in Kentucky did not drop below their Q1 2005 level. Between Q1 2005 and Q1 2009 home prices in Kentucky peaked at an increase of about 9%. Prices then dropped by only 4% reaching a low point in Q2 2011. However, recovery has been steady and Kentucky home prices were 23% higher in Q2 2017 than Q1 2005.

However, Kentucky did have higher unemployment rates than many parts of the US. This greatly affected homeowners ability to repay their mortgages and increased foreclosure rates. Kentucky did get government aid in the Hardest Hit Fund Program, especially with Based on data from the US Bureau of Labor, Kentucky unemployment in Q1 2009 was over 10% and more than 1.5% than the national average. About 78% of the HHF in Kentucky was allocated to the Kentucky Unemployment Bridge Program.

Based on 2015 HMDA data, Kentucky compared to National loan program distribution, had a higher percentage of home purchase loans, 55% vs 51% nationally.

Here are some outside resources that can help you understand the Kentucky mortgage environment:

  1. FHA loan amounts in Kentucky: (note:set the table to Kentucky). There are 120 counties in the state of Kentucky of which none of the single family units meet the Highest loan limit, currently at $636,150. 94% of the counties are at the Standard loan limit, currently at $275,665. The remaining 6% are between those two limits.
  2. FHFA Conventional Loan Amounts: Check the pdf from FHFA for all states and search for Kentucky and your county or check out the FHFA conforming limit map. Since the FHFA has higher base limits than the FHA, currently at $424,100, all of the counties meet this limit.
  3. Kentucky Mortgage Programs: The Kentucky Housing Corporation (KHC) aims to "...develop, preserve, and sustain affordable housing throughout the state." The KHC offers mortgage loan programs and down payment assistance. KHC offers two different funding sources: Secondary Market and MRB, which conventional, FHA, VA, and RHS loan programs. There are credit, income, and property requirements. KHC also offers two down payment assistance programs (DAP). The Regular DAP, (as of August 28, 2017), is limited to $6,000 and has a 10-year loan, at 5.5% , The Affordable DAP, (as of August 28, 2017) is limited to $4,500 repayable over a ten-year term at 1%. All of their programs have credit, income, and property requirements.
  4. Check out the Hud’s website for more information about homeowner programs and homeowner education programs.

Mortgage Trends and Statistics for Kentucky

Mortgage rates, loan amounts, LTV, (etc) vary based on areas. The FHFA provides a useful insight into differences in conventional loans. We are providing historical data based on State based information for 2002 - 2015.

Source of Data: FHFA Historical Table - (TERMS ON CONVENTIONAL HOME MORTGAGES) Table 15 - By State and Table 12 Fixed-Rate Mortgages

Check out some differences between Kentucky and the US:

  • Mortgage Rates for Conventional Loans in Kentucky
  • Mortgage Fees for Conventional Loans in Kentucky
  • Loan Amount for Conventional Loans in Kentucky

Mortgage Rates for Conventional Loans in Kentucky vs USA

Mortgage Fees for Conventional Loans in Kentucky

Purchase Price for Conventional Loans in Kentucky vs USA