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$510,400$653,550$789,950$981,700
ALLENBOWLING GREEN, KY$510,400$653,550$789,950$981,700
ANDERSONFRANKFORT, KY$510,400$653,550$789,950$981,700
BALLARDPADUCAH, KY-IL$510,400$653,550$789,950$981,700
BARRENGLASGOW, KY$510,400$653,550$789,950$981,700
BATHMOUNT STERLING, KY$510,400$653,550$789,950$981,700
BELLMIDDLESBOROUGH, KY$510,400$653,550$789,950$981,700
BOONECINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
BOURBONLEXINGTON-FAYETTE, KY$510,400$653,550$789,950$981,700
BOYDHUNTINGTON-ASHLAND, WV-KY-OH$510,400$653,550$789,950$981,700
BOYLEDANVILLE, KY$510,400$653,550$789,950$981,700
BRACKENCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
BREATHITTNON-METRO$510,400$653,550$789,950$981,700
BRECKINRIDGENON-METRO$510,400$653,550$789,950$981,700
BULLITTLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
BUTLERBOWLING GREEN, KY$510,400$653,550$789,950$981,700
CALDWELLNON-METRO$510,400$653,550$789,950$981,700
CALLOWAYMURRAY, KY$510,400$653,550$789,950$981,700
CAMPBELLCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
CARLISLENON-METRO$510,400$653,550$789,950$981,700
CARROLLNON-METRO$510,400$653,550$789,950$981,700
CARTERHUNTINGTON-ASHLAND, WV-KY-OH$510,400$653,550$789,950$981,700
CASEYNON-METRO$510,400$653,550$789,950$981,700
CHRISTIANCLARKSVILLE, TN-KY$510,400$653,550$789,950$981,700
CLARKLEXINGTON-FAYETTE, KY$510,400$653,550$789,950$981,700
CLAYLONDON, KY$510,400$653,550$789,950$981,700
CLINTONNON-METRO$510,400$653,550$789,950$981,700
CRITTENDENNON-METRO$510,400$653,550$789,950$981,700
CUMBERLANDNON-METRO$510,400$653,550$789,950$981,700
DAVIESSOWENSBORO, KY$510,400$653,550$789,950$981,700
EDMONSONBOWLING GREEN, KY$510,400$653,550$789,950$981,700
ELLIOTTNON-METRO$510,400$653,550$789,950$981,700
ESTILLRICHMOND-BEREA, KY$510,400$653,550$789,950$981,700
FAYETTELEXINGTON-FAYETTE, KY$510,400$653,550$789,950$981,700
FLEMINGNON-METRO$510,400$653,550$789,950$981,700
FLOYDNON-METRO$510,400$653,550$789,950$981,700
FRANKLINFRANKFORT, KY$510,400$653,550$789,950$981,700
FULTONNON-METRO$510,400$653,550$789,950$981,700
GALLATINCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
GARRARDNON-METRO$510,400$653,550$789,950$981,700
GRANTCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
GRAVESMAYFIELD, KY$510,400$653,550$789,950$981,700
GRAYSONNON-METRO$510,400$653,550$789,950$981,700
GREENCAMPBELLSVILLE, KY$510,400$653,550$789,950$981,700
GREENUPHUNTINGTON-ASHLAND, WV-KY-OH$510,400$653,550$789,950$981,700
HANCOCKOWENSBORO, KY$510,400$653,550$789,950$981,700
HARDINELIZABETHTOWN-FORT KNOX, KY$510,400$653,550$789,950$981,700
HARLANNON-METRO$510,400$653,550$789,950$981,700
HARRISONNON-METRO$510,400$653,550$789,950$981,700
HARTNON-METRO$510,400$653,550$789,950$981,700
HENDERSONEVANSVILLE, IN-KY$510,400$653,550$789,950$981,700
HENRYLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
HICKMANNON-METRO$510,400$653,550$789,950$981,700
HOPKINSMADISONVILLE, KY$510,400$653,550$789,950$981,700
JACKSONNON-METRO$510,400$653,550$789,950$981,700
JEFFERSONLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
JESSAMINELEXINGTON-FAYETTE, KY$510,400$653,550$789,950$981,700
JOHNSONNON-METRO$510,400$653,550$789,950$981,700
KENTONCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
KNOTTNON-METRO$510,400$653,550$789,950$981,700
KNOXLONDON, KY$510,400$653,550$789,950$981,700
LARUEELIZABETHTOWN-FORT KNOX, KY$510,400$653,550$789,950$981,700
LAURELLONDON, KY$510,400$653,550$789,950$981,700
LAWRENCENON-METRO$510,400$653,550$789,950$981,700
LEENON-METRO$510,400$653,550$789,950$981,700
LESLIENON-METRO$510,400$653,550$789,950$981,700
LETCHERNON-METRO$510,400$653,550$789,950$981,700
LEWISNON-METRO$510,400$653,550$789,950$981,700
LINCOLNDANVILLE, KY$510,400$653,550$789,950$981,700
LIVINGSTONPADUCAH, KY-IL$510,400$653,550$789,950$981,700
LOGANNON-METRO$510,400$653,550$789,950$981,700
LYONNON-METRO$510,400$653,550$789,950$981,700
MADISONRICHMOND-BEREA, KY$510,400$653,550$789,950$981,700
MAGOFFINNON-METRO$510,400$653,550$789,950$981,700
MARIONNON-METRO$510,400$653,550$789,950$981,700
MARSHALLNON-METRO$510,400$653,550$789,950$981,700
MARTINNON-METRO$510,400$653,550$789,950$981,700
MASONMAYSVILLE, KY$510,400$653,550$789,950$981,700
MCCRACKENPADUCAH, KY-IL$510,400$653,550$789,950$981,700
MCCREARYNON-METRO$510,400$653,550$789,950$981,700
MCLEANOWENSBORO, KY$510,400$653,550$789,950$981,700
MEADEELIZABETHTOWN-FORT KNOX, KY$510,400$653,550$789,950$981,700
MENIFEEMOUNT STERLING, KY$510,400$653,550$789,950$981,700
MERCERNON-METRO$510,400$653,550$789,950$981,700
METCALFEGLASGOW, KY$510,400$653,550$789,950$981,700
MONROENON-METRO$510,400$653,550$789,950$981,700
MONTGOMERYMOUNT STERLING, KY$510,400$653,550$789,950$981,700
MORGANNON-METRO$510,400$653,550$789,950$981,700
MUHLENBERGCENTRAL CITY, KY$510,400$653,550$789,950$981,700
NELSONBARDSTOWN, KY$510,400$653,550$789,950$981,700
NICHOLASNON-METRO$510,400$653,550$789,950$981,700
OHIONON-METRO$510,400$653,550$789,950$981,700
OLDHAMLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
OWENNON-METRO$510,400$653,550$789,950$981,700
OWSLEYNON-METRO$510,400$653,550$789,950$981,700
PENDLETONCINCINNATI, OH-KY-IN$510,400$653,550$789,950$981,700
PERRYNON-METRO$510,400$653,550$789,950$981,700
PIKENON-METRO$510,400$653,550$789,950$981,700
POWELLNON-METRO$510,400$653,550$789,950$981,700
PULASKISOMERSET, KY$510,400$653,550$789,950$981,700
ROBERTSONNON-METRO$510,400$653,550$789,950$981,700
ROCKCASTLENON-METRO$510,400$653,550$789,950$981,700
ROWANNON-METRO$510,400$653,550$789,950$981,700
RUSSELLNON-METRO$510,400$653,550$789,950$981,700
SCOTTLEXINGTON-FAYETTE, KY$510,400$653,550$789,950$981,700
SHELBYLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
SIMPSONNON-METRO$510,400$653,550$789,950$981,700
SPENCERLOUISVILLE/JEFFERSON COUNTY, KY-IN$510,400$653,550$789,950$981,700
TAYLORCAMPBELLSVILLE, KY$510,400$653,550$789,950$981,700
TODDNON-METRO$510,400$653,550$789,950$981,700
TRIGGCLARKSVILLE, TN-KY$510,400$653,550$789,950$981,700
TRIMBLENON-METRO$510,400$653,550$789,950$981,700
UNIONNON-METRO$510,400$653,550$789,950$981,700
WARRENBOWLING GREEN, KY$510,400$653,550$789,950$981,700
WASHINGTONNON-METRO$510,400$653,550$789,950$981,700
WAYNENON-METRO$510,400$653,550$789,950$981,700
WEBSTERNON-METRO$510,400$653,550$789,950$981,700
WHITLEYLONDON, KY$510,400$653,550$789,950$981,700
WOLFENON-METRO$510,400$653,550$789,950$981,700
WOODFORDLEXINGTON-FAYETTE, KY$510,400$653,550$789,950$981,700

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:

 

Get Your Rate Quote
Refinance     Purchase

As seen in: