2022 Kentucky Mortgage Borrowing Limits by County

  • You can borrow up to $647,200 with a conforming mortgage in Kentucky, or $420,680 with an FHA mortgage.
  • To take out more than $647,200, you’ll have to apply for a jumbo mortgage.
  • The best type of mortgage for you could also come down to insurance costs or your credit score.
  • See today’s mortgage and refinance rates in Kentucky on Insider.

If you’re buying a home in Kentucky in 2022, your mortgage borrowing limits will be the same in every county.

For a conforming mortgage — which is what you may think of as a “regular mortgage” — you can borrow up to $647,200. This is the limit set by the Federal Housing Finance Agency. 

The limit is lower for FHA mortgages, which are backed by the Federal Housing Administration. You can borrow as much as $420,680 for a single-family unit, or more for a multiple-family home.

How to determine which type of mortgage 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 take out 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 minimum 620 credit score, and you’ll need a higher one for a jumbo mortgage. You’re eligible for an FHA mortgage with at least a 580 credit score and 3.5% down payment. You can even get an FHA mortgage with a credit score as low as 500, but you’ll need to put 10% down with a lower score.

If you qualify for all of these types of mortgages, you might base your decision on insurance costs.

“FHA has something called upfront MIP, or upfront mortgage insurance premium,” says Darrin Q. English, senior community development loan officer at Quontic Bank. “You don’t actually pay out of pocket for the financing of that MIP, but it is added to the loan amount. When you receive a closing disclosure or loan estimate, you’ll see that there will be a measurement of your loan amount, then there will be an adjusted loan amount that will add in that upfront MIP.”

Conforming and jumbo mortgages charge something called private mortgage insurance (PMI) if you place less than 20% down. But the lender cancels PMI once you gain 22% equity in your home, and you can even request to cancel it early when you reach 20% equity. With an FHA mortgage, you have to pay MIP for the entire life of your loan.

There is one major exception to this rule, English explains. If you make a 10% down payment on an FHA mortgage, your MPI will be cancelled in the 11th year of your loan.

If you’re unsure which mortgage is the best fit, contact a mortgage lender to speak with a loan officer. You can even apply for prequalification with a lender to see what you’re eligible to borrow, and it won’t hurt your credit score.


Leave a Reply

Your email address will not be published.