FHA Loan Requirements, Limits and Approval Tips
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2022 FHA Loan Limits in Kentucky

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A home loan guaranteed by the Federal Housing Administration (FHA) comes with maximum loan limits that are lower than conforming loan limits in most areas across the country. If you’re purchasing a single-family home anywhere in the state of Kentucky, the 2022 maximum amount for an FHA loan is $420,680.

Kentucky FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ADAIR$420,680$538,650$651,050$809,150$45,000
ALLEN$420,680$538,650$651,050$809,150$196,000
ANDERSON$420,680$538,650$651,050$809,150$181,000
BALLARD$420,680$538,650$651,050$809,150$145,000
BARREN$420,680$538,650$651,050$809,150$105,000
BATH$420,680$538,650$651,050$809,150$141,000
BELL$420,680$538,650$651,050$809,150$72,000
BOONE$420,680$538,650$651,050$809,150$295,000
BOURBON$420,680$538,650$651,050$809,150$235,000
BOYD$420,680$538,650$651,050$809,150$190,000
BOYLE$420,680$538,650$651,050$809,150$150,000
BRACKEN$420,680$538,650$651,050$809,150$295,000
BREATHITT$420,680$538,650$651,050$809,150$32,000
BRECKINRIDGE$420,680$538,650$651,050$809,150$58,000
BULLITT$420,680$538,650$651,050$809,150$315,000
BUTLER$420,680$538,650$651,050$809,150$196,000
CALDWELL$420,680$538,650$651,050$809,150$66,000
CALLOWAY$420,680$538,650$651,050$809,150$140,000
CAMPBELL$420,680$538,650$651,050$809,150$295,000
CARLISLE$420,680$538,650$651,050$809,150$86,000
CARROLL$420,680$538,650$651,050$809,150$140,000
CARTER$420,680$538,650$651,050$809,150$190,000
CASEY$420,680$538,650$651,050$809,150$45,000
CHRISTIAN$420,680$538,650$651,050$809,150$235,000
CLARK$420,680$538,650$651,050$809,150$235,000
CLAY$420,680$538,650$651,050$809,150$178,000
CLINTON$420,680$538,650$651,050$809,150$49,000
CRITTENDEN$420,680$538,650$651,050$809,150$67,000
CUMBERLAND$420,680$538,650$651,050$809,150$108,000
DAVIESS$420,680$538,650$651,050$809,150$191,000
EDMONSON$420,680$538,650$651,050$809,150$196,000
ELLIOTT$420,680$538,650$651,050$809,150$100,000
ESTILL$420,680$538,650$651,050$809,150$190,000
FAYETTE$420,680$538,650$651,050$809,150$235,000
FLEMING$420,680$538,650$651,050$809,150$69,000
FLOYD$420,680$538,650$651,050$809,150$70,000
FRANKLIN$420,680$538,650$651,050$809,150$181,000
FULTON$420,680$538,650$651,050$809,150$53,000
GALLATIN$420,680$538,650$651,050$809,150$295,000
GARRARD$420,680$538,650$651,050$809,150$113,000
GRANT$420,680$538,650$651,050$809,150$295,000
GRAVES$420,680$538,650$651,050$809,150$126,000
GRAYSON$420,680$538,650$651,050$809,150$60,000
GREEN$420,680$538,650$651,050$809,150$115,000
GREENUP$420,680$538,650$651,050$809,150$190,000
HANCOCK$420,680$538,650$651,050$809,150$191,000
HARDIN$420,680$538,650$651,050$809,150$170,000
HARLAN$420,680$538,650$651,050$809,150$25,000
HARRISON$420,680$538,650$651,050$809,150$120,000
HART$420,680$538,650$651,050$809,150$114,000
HENDERSON$420,680$538,650$651,050$809,150$221,000
HENRY$420,680$538,650$651,050$809,150$315,000
HICKMAN$420,680$538,650$651,050$809,150$97,000
HOPKINS$420,680$538,650$651,050$809,150$100,000
JACKSON$420,680$538,650$651,050$809,150$43,000
JEFFERSON$420,680$538,650$651,050$809,150$315,000
JESSAMINE$420,680$538,650$651,050$809,150$235,000
JOHNSON$420,680$538,650$651,050$809,150$91,000
KENTON$420,680$538,650$651,050$809,150$295,000
KNOTT$420,680$538,650$651,050$809,150$46,000
KNOX$420,680$538,650$651,050$809,150$178,000
LARUE$420,680$538,650$651,050$809,150$170,000
LAUREL$420,680$538,650$651,050$809,150$178,000
LAWRENCE$420,680$538,650$651,050$809,150$96,000
LEE$420,680$538,650$651,050$809,150$40,000
LESLIE$420,680$538,650$651,050$809,150$78,000
LETCHER$420,680$538,650$651,050$809,150$71,000
LEWIS$420,680$538,650$651,050$809,150$39,000
LINCOLN$420,680$538,650$651,050$809,150$150,000
LIVINGSTON$420,680$538,650$651,050$809,150$145,000
LOGAN$420,680$538,650$651,050$809,150$134,000
LYON$420,680$538,650$651,050$809,150$123,000
MADISON$420,680$538,650$651,050$809,150$190,000
MAGOFFIN$420,680$538,650$651,050$809,150$30,000
MARION$420,680$538,650$651,050$809,150$127,000
MARSHALL$420,680$538,650$651,050$809,150$119,000
MARTIN$420,680$538,650$651,050$809,150$102,000
MASON$420,680$538,650$651,050$809,150$81,000
MCCRACKEN$420,680$538,650$651,050$809,150$145,000
MCCREARY$420,680$538,650$651,050$809,150$50,000
MCLEAN$420,680$538,650$651,050$809,150$191,000
MEADE$420,680$538,650$651,050$809,150$170,000
MENIFEE$420,680$538,650$651,050$809,150$141,000
MERCER$420,680$538,650$651,050$809,150$135,000
METCALFE$420,680$538,650$651,050$809,150$105,000
MONROE$420,680$538,650$651,050$809,150$60,000
MONTGOMERY$420,680$538,650$651,050$809,150$141,000
MORGAN$420,680$538,650$651,050$809,150$56,000
MUHLENBERG$420,680$538,650$651,050$809,150$82,000
NELSON$420,680$538,650$651,050$809,150$170,000
NICHOLAS$420,680$538,650$651,050$809,150$85,000
OHIO$420,680$538,650$651,050$809,150$85,000
OLDHAM$420,680$538,650$651,050$809,150$315,000
OWEN$420,680$538,650$651,050$809,150$69,000
OWSLEY$420,680$538,650$651,050$809,150$85,000
PENDLETON$420,680$538,650$651,050$809,150$295,000
PERRY$420,680$538,650$651,050$809,150$91,000
PIKE$420,680$538,650$651,050$809,150$80,000
POWELL$420,680$538,650$651,050$809,150$102,000
PULASKI$420,680$538,650$651,050$809,150$147,000
ROBERTSON$420,680$538,650$651,050$809,150$56,000
ROCKCASTLE$420,680$538,650$651,050$809,150$85,000
ROWAN$420,680$538,650$651,050$809,150$125,000
RUSSELL$420,680$538,650$651,050$809,150$60,000
SCOTT$420,680$538,650$651,050$809,150$235,000
SHELBY$420,680$538,650$651,050$809,150$315,000
SIMPSON$420,680$538,650$651,050$809,150$163,000
SPENCER$420,680$538,650$651,050$809,150$315,000
TAYLOR$420,680$538,650$651,050$809,150$115,000
TODD$420,680$538,650$651,050$809,150$108,000
TRIGG$420,680$538,650$651,050$809,150$235,000
TRIMBLE$420,680$538,650$651,050$809,150$94,000
UNION$420,680$538,650$651,050$809,150$70,000
WARREN$420,680$538,650$651,050$809,150$196,000
WASHINGTON$420,680$538,650$651,050$809,150$109,000
WAYNE$420,680$538,650$651,050$809,150$50,000
WEBSTER$420,680$538,650$651,050$809,150$60,000
WHITLEY$420,680$538,650$651,050$809,150$178,000
WOLFE$420,680$538,650$651,050$809,150$40,000
WOODFORD$420,680$538,650$651,050$809,150$235,000

How are FHA loan limits determined?

Every year, the Federal Housing Finance Agency (FHFA) examines the previous year’s housing prices for each county of Kentucky to determine an average housing price. They use this data to set a conforming loan limit, which is then used by the FHA to determine the loan limits for its loans.

Based on the 2022 conforming loan limit of $647,200, the FHA takes 65% of this amount to set the “floor” of the 2022 FHA loan limits. The “floor” refers to areas where 115% of the median home prices are less than the “floor” amount. For 2022, that amount is $420,680. In the event there are areas where home prices are higher than the “floor” limit, the FHA sets the maximum loan limit, or “ceiling,” at 150% of the conforming loan limit. The 2022 FHA loan limit for the “ceiling” is $970,800.

How to qualify for an FHA loan in Kentucky

When applying for a home mortgage, many Kentucky homebuyers may find that qualifying for an FHA loan is easier than trying to get a conventional mortgage. In addition, first-time homebuyers may qualify for more assistance through Kentucky’s first-time homebuyer programs.

The first step, though, is making sure you meet these FHA loan requirements:

Borrow under the FHA loan limit for your area. The amount you borrow for an FHA loan cannot exceed the area’s FHA loan limit.

A minimum down payment of 3.5%. If you have a minimum FICO credit score of 580, you could pay as little as 3.5% down payment with an FHA loan.

A minimum FICO credit score of 500. If your credit score is between 500 and 579 you may still be eligible for an FHA loan, but your down payment will increase to 10% of the home’s purchase price. It’s also important to note that many FHA-approved mortgage lenders may set their own minimum credit score requirements, which could be much higher than 500.

FHA appraisal. If you purchase a home with an FHA loan, you must also get an FHA appraisal before closing.

A debt-to-income ratio of less than 43%. It’s important to show your debts don’t exceed your income, so, to ensure that’s the case, the FHA looks for a DTI ratio of no more than 43%. If your DTI is higher, some mortgage lenders may make an exception and still offer you a home loan.

Mortgage insurance. FHA home loans require you to pay two forms of mortgage insurance premiums: an upfront mortgage insurance premium (UFMIP), which is due at closing and is 1.75% of the loan amount, and annual mortgage insurance premium (MIP), which ranges from 0.45% to 1.05%.

Occupancy. The home you buy with an FHA loan must be your primary residence at least 12 months after purchase.

Buying a multifamily property with an FHA loan

FHA loans can also be used to purchase a multifamily home with a maximum of four units. If you plan to use one of those units for your primary residence for at least one year, you could still qualify for an FHA loan with a down payment of just 3.5%. The same FHA loan eligibility criteria applies to multifamily home purchases.

FHA lenders in Kentucky

Here are six highly rated mortgage lenders to consider when shopping for an FHA home loan.

Lender nameLT ratingMinimum FHA credit score
Carrington Mortgage Services8/10500
Lower10/10580
Rocket Mortgage9.5/10580
Guild Mortgage9/10540
PennyMac9/10620

 

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