What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Kentucky conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Kentucky conventional loan limits are the same thing as Kentucky conforming loan limits.

Kentucky Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Kentucky are determined by:

  • Kentucky Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Kentucky are set at the floor amount of $424,100 across the entire state. Metro areas in KY with a conforming limit of $424,100 include Birmingham, Montgomery, Mobile, Auburn, Tuscaloosa, Hoover, Dothan, Decatur, Madison City, Gulf Shores and Orange Beach.

Search all Conventional Loan Limits in Kentucky:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ADAIRNON-METRO$424,100$543,000$656,350$815,650
ALLENBOWLING GREEN, KY$424,100$543,000$656,350$815,650
ANDERSONFRANKFORT, KY$424,100$543,000$656,350$815,650
BALLARDPADUCAH, KY-IL$424,100$543,000$656,350$815,650
BARRENGLASGOW, KY$424,100$543,000$656,350$815,650
BATHMOUNT STERLING, KY$424,100$543,000$656,350$815,650
BELLMIDDLESBOROUGH, KY$424,100$543,000$656,350$815,650
BOONECINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
BOURBONLEXINGTON-FAYETTE, KY$424,100$543,000$656,350$815,650
BOYDHUNTINGTON-ASHLAND, WV-KY-OH$424,100$543,000$656,350$815,650
BOYLEDANVILLE, KY$424,100$543,000$656,350$815,650
BRACKENCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
BREATHITTNON-METRO$424,100$543,000$656,350$815,650
BRECKINRIDGENON-METRO$424,100$543,000$656,350$815,650
BULLITTLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
BUTLERBOWLING GREEN, KY$424,100$543,000$656,350$815,650
CALDWELLNON-METRO$424,100$543,000$656,350$815,650
CALLOWAYMURRAY, KY$424,100$543,000$656,350$815,650
CAMPBELLCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
CARLISLENON-METRO$424,100$543,000$656,350$815,650
CARROLLNON-METRO$424,100$543,000$656,350$815,650
CARTERNON-METRO$424,100$543,000$656,350$815,650
CASEYNON-METRO$424,100$543,000$656,350$815,650
CHRISTIANCLARKSVILLE, TN-KY$424,100$543,000$656,350$815,650
CLARKLEXINGTON-FAYETTE, KY$424,100$543,000$656,350$815,650
CLAYNON-METRO$424,100$543,000$656,350$815,650
CLINTONNON-METRO$424,100$543,000$656,350$815,650
CRITTENDENNON-METRO$424,100$543,000$656,350$815,650
CUMBERLANDNON-METRO$424,100$543,000$656,350$815,650
DAVIESSOWENSBORO, KY$424,100$543,000$656,350$815,650
EDMONSONBOWLING GREEN, KY$424,100$543,000$656,350$815,650
ELLIOTTNON-METRO$424,100$543,000$656,350$815,650
ESTILLNON-METRO$424,100$543,000$656,350$815,650
FAYETTELEXINGTON-FAYETTE, KY$424,100$543,000$656,350$815,650
FLEMINGNON-METRO$424,100$543,000$656,350$815,650
FLOYDNON-METRO$424,100$543,000$656,350$815,650
FRANKLINFRANKFORT, KY$424,100$543,000$656,350$815,650
FULTONUNION CITY, TN-KY$424,100$543,000$656,350$815,650
GALLATINCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
GARRARDNON-METRO$424,100$543,000$656,350$815,650
GRANTCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
GRAVESMAYFIELD, KY$424,100$543,000$656,350$815,650
GRAYSONNON-METRO$424,100$543,000$656,350$815,650
GREENNON-METRO$424,100$543,000$656,350$815,650
GREENUPHUNTINGTON-ASHLAND, WV-KY-OH$424,100$543,000$656,350$815,650
HANCOCKOWENSBORO, KY$424,100$543,000$656,350$815,650
HARDINELIZABETHTOWN-FORT KNOX, KY$424,100$543,000$656,350$815,650
HARLANNON-METRO$424,100$543,000$656,350$815,650
HARRISONNON-METRO$424,100$543,000$656,350$815,650
HARTNON-METRO$424,100$543,000$656,350$815,650
HENDERSONEVANSVILLE, IN-KY$424,100$543,000$656,350$815,650
HENRYLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
HICKMANNON-METRO$424,100$543,000$656,350$815,650
HOPKINSMADISONVILLE, KY$424,100$543,000$656,350$815,650
JACKSONNON-METRO$424,100$543,000$656,350$815,650
JEFFERSONLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
JESSAMINELEXINGTON-FAYETTE, KY$424,100$543,000$656,350$815,650
JOHNSONNON-METRO$424,100$543,000$656,350$815,650
KENTONCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
KNOTTNON-METRO$424,100$543,000$656,350$815,650
KNOXLONDON, KY$424,100$543,000$656,350$815,650
LARUEELIZABETHTOWN-FORT KNOX, KY$424,100$543,000$656,350$815,650
LAURELLONDON, KY$424,100$543,000$656,350$815,650
LAWRENCENON-METRO$424,100$543,000$656,350$815,650
LEENON-METRO$424,100$543,000$656,350$815,650
LESLIENON-METRO$424,100$543,000$656,350$815,650
LETCHERNON-METRO$424,100$543,000$656,350$815,650
LEWISNON-METRO$424,100$543,000$656,350$815,650
LINCOLNDANVILLE, KY$424,100$543,000$656,350$815,650
LIVINGSTONPADUCAH, KY-IL$424,100$543,000$656,350$815,650
LOGANNON-METRO$424,100$543,000$656,350$815,650
LYONNON-METRO$424,100$543,000$656,350$815,650
MADISONRICHMOND-BEREA, KY$424,100$543,000$656,350$815,650
MAGOFFINNON-METRO$424,100$543,000$656,350$815,650
MARIONNON-METRO$424,100$543,000$656,350$815,650
MARSHALLNON-METRO$424,100$543,000$656,350$815,650
MARTINNON-METRO$424,100$543,000$656,350$815,650
MASONMAYSVILLE, KY$424,100$543,000$656,350$815,650
MCCRACKENPADUCAH, KY-IL$424,100$543,000$656,350$815,650
MCCREARYNON-METRO$424,100$543,000$656,350$815,650
MCLEANOWENSBORO, KY$424,100$543,000$656,350$815,650
MEADEELIZABETHTOWN-FORT KNOX, KY$424,100$543,000$656,350$815,650
MENIFEEMOUNT STERLING, KY$424,100$543,000$656,350$815,650
MERCERNON-METRO$424,100$543,000$656,350$815,650
METCALFEGLASGOW, KY$424,100$543,000$656,350$815,650
MONROENON-METRO$424,100$543,000$656,350$815,650
MONTGOMERYMOUNT STERLING, KY$424,100$543,000$656,350$815,650
MORGANNON-METRO$424,100$543,000$656,350$815,650
MUHLENBERGNON-METRO$424,100$543,000$656,350$815,650
NELSONBARDSTOWN, KY$424,100$543,000$656,350$815,650
NICHOLASNON-METRO$424,100$543,000$656,350$815,650
OHIONON-METRO$424,100$543,000$656,350$815,650
OLDHAMLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
OWENNON-METRO$424,100$543,000$656,350$815,650
OWSLEYNON-METRO$424,100$543,000$656,350$815,650
PENDLETONCINCINNATI, OH-KY-IN$424,100$543,000$656,350$815,650
PERRYNON-METRO$424,100$543,000$656,350$815,650
PIKENON-METRO$424,100$543,000$656,350$815,650
POWELLNON-METRO$424,100$543,000$656,350$815,650
PULASKISOMERSET, KY$424,100$543,000$656,350$815,650
ROBERTSONNON-METRO$424,100$543,000$656,350$815,650
ROCKCASTLERICHMOND-BEREA, KY$424,100$543,000$656,350$815,650
ROWANNON-METRO$424,100$543,000$656,350$815,650
RUSSELLNON-METRO$424,100$543,000$656,350$815,650
SCOTTLEXINGTON-FAYETTE, KY$424,100$543,000$656,350$815,650
SHELBYLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
SIMPSONNON-METRO$424,100$543,000$656,350$815,650
SPENCERLOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
TAYLORCAMPBELLSVILLE, KY$424,100$543,000$656,350$815,650
TODDNON-METRO$424,100$543,000$656,350$815,650
TRIGGCLARKSVILLE, TN-KY$424,100$543,000$656,350$815,650
TRIMBLELOUISVILLE/JEFFERSON , KY-IN$424,100$543,000$656,350$815,650
UNIONNON-METRO$424,100$543,000$656,350$815,650
WARRENBOWLING GREEN, KY$424,100$543,000$656,350$815,650
WASHINGTONNON-METRO$424,100$543,000$656,350$815,650
WAYNENON-METRO$424,100$543,000$656,350$815,650
WEBSTERNON-METRO$424,100$543,000$656,350$815,650
WHITLEYLONDON, KY$424,100$543,000$656,350$815,650
WOLFENON-METRO$424,100$543,000$656,350$815,650
WOODFORDLEXINGTON-FAYETTE, KY$424,100$543,000$656,350$815,650

Kentucky conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Kentucky?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

KY Conventional Loan Down PaymentConventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Kentucky Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

Conventional mortgage guidelines allow you to purchase
warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Kentucky?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Kentucky:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Kentucky Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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