Kentucky Mortgage Rates
Compare Kentucky mortgage rates and choose the best option for your needs.
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Purchase
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- As low as 3% down on a fixed-rate mortgage
- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
- 97% of borrowers would recommend to friends or family
- 0% Down VA Loans for Veterans & Military
- Secure preapproval quickly with 24/7 access
- Competitively low VA rates, no PMI required
- Over 300,000 verified 5-star reviews
Mortgage in Kentucky: Top Lenders in 2024
Interested in purchasing a home in Kentucky? The easiest way to do so is to use a mortgage loan, which is effective irrespective of what type of property you are searching for – a residential estate or an apartment. It's essential to note that the terms of home loans can differ significantly among various lenders (use our mortgage calculator to estimate your future expenses). In the framework of this guide, we’ll review some of the top-rated lenders and try to find out which ones are worth considering.
KY Mortgage Lenders Comparison
All the lenders under review are reputable companies offering competitive rates and established track records. To provide you with comprehensive information, we'll compare them based on several key criteria, including APR, minimum down payment, minimal requirements, and more.
Quicken Loans Mortgage
Quicken Loans is the previous brand name of Rocket Mortgage, has been a prominent player in the consumer lending market since its inception in 1999. Under the new brand name, you can expect the same array of options, terms, and services as offered by Rocket Mortgage. These encompass a spectrum of offerings, including simple conventional mortgages with fixed or adjustable rates, jumbo loans, home equity products, HELOCs, and federally insured programs such as FHA and VA loans, catering to both purchase and refinancing needs.
For conventional loans, a minimum credit score of 620 is required. The advertised APR for a 30-year fixed-rate mortgage currently stands at 7.199%, which is relatively high compared to similar offerings in the market. Quicken Loans operates across all states, including Washington D.C.
| Pros: | Cons: |
|---|---|
| High availability. | No construction loans. |
| Easy application process. | Rates above the market average. |
| Plethora of experience. |
Beeline Loans, Inc
Beeline is headquartered in Providence, Rhode Island, and holds licenses to operate in 28 states. It presents an excellent opportunity for homebuyers, requiring only a 3% down payment. The minimum credit score accepted is 620.
| Pros: | Cons: |
|---|---|
| Easy application process. | Not licensed in all states. |
| Rate information on the website. | USDA, VA or Jumbo loans are not available. |
First Citizens Bank
First Citizens Bank is one of the oldest and largest banks in the United States that serve retail customers.
Mortgages are issued with fixed or adjustable (increasing) interest rates. The fixed APR is 6.289% for a 15-year, 6.256% for a 20-year, and 6.602% for a 30-year mortgage under perfect conditions. The APR can be lowered by buying points (upfront payments equivalent to 1% of the principal). The bank demands a minimum of two years of employment, a credit score of 620 or more, and a DTI of no more than 43%.
| Pros: | Cons: |
|---|---|
| Extremely well-established. The bank has been around since forever, engaging in a broad variety of financial services. | The website is scanty concerning lender fees (e.g., an underwriting fee can be expected). |
| Offers variable-rate mortgages. These can be especially handy if you plan on selling or refinancing. |
Average Mortgage Rate in Kentucky from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Kentucky.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Kentucky
| Criteria | Amount, $ |
|---|---|
| The median home value in Kentucky | $181,018 |
| The income required to buy the median priced home in Kentucky | $29,659 |
| The monthly mortgage payment required to buy the median priced home in Kentucky | $687 |
| The median household income for Kentucky | $56,777 |
Things to Consider When Choosing a Mortgage Lender
A mortgage loan entails a serious commitment for a term of 15 to 30 years. Therefore, it's important to think carefully before signing an agreement with any lender. There are key aspects to consider when choosing a lending entity.
Type of Lender
Essentially, there are two popular options: banks and online mortgage lenders. Banks often provide appealing rates but typically conduct stringent credit checks. The approval process tends to be lengthier, and meeting eligibility criteria can be challenging. On the other hand, online lenders operate more swiftly, with less stringent requirements for homebuyers.
APR and Fees
Every loan has its cost, and a mortgage is no exception. This cost is more than just an interest rate. It also includes extra fees, such as the origination fee, mortgage insurance fee, closing costs, etc. As of writing, for a fixed-rate 30-year loan, the average mortgage rate in Kentucky is 6.58%.
Terms and Conditions
You need to consider the minimum size of a down payment, which often varies from 0% to 20% depending on the loan type and your current status (whether military, employed, self-employed, etc.). Another important parameter is the lifespan of the loan, which represents its total length. Common options are 15 and 30 years.
What Mortgage Lender is the Number One in Kentucky?
The list of reliable mortgage lenders in KY is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To choose wisely, check our list of recommended lenders.
First-Time Homebuyer Programs in Kentucky
Buying a home for the first time can be quite challenging. Fortunately, residents of Kentucky can take advantage of several governmental programs aimed at increasing mortgage affordability.
- The Federal Housing Administration (FHA) loan program provides insurance from the federal government for buyers. The insurance fee is included in the total loan cost. In return, homebuyers receive significant benefits: a low interest rate and minimal credit requirements. For instance, the FICO score requirement can be as low as 500, and the debt-to-income ratio can be as high as 50%.
- The USDA loan program is oriented toward those residing in rural areas. Participants in this program can obtain a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in their region.
- VA loan programs, insured by the Department of Veterans Affairs, are available to former military personnel or their spouses.
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer's credibility. It informs home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain pre-approval, one must provide documentary evidence of their financial capacity. A typical document set includes earning statements, account statements, a W2 form, or alternative proof of income for at least 2 years. Additionally, filling out the Uniform Residential Loan Application form is necessary.