Conventional
Conventional loans in Kentucky. The default option, and often the cheapest one over time.
From 3% down for eligible buyers, with mortgage insurance that falls away rather than following you for the life of the loan. For a solid credit file, this is usually the loan to beat.
A conversation first. No application and no credit check to get an answer.
The twenty percent myth costs people years
The most expensive piece of received wisdom in this business is that you need 20% down. It is not a requirement and never has been for conventional financing. It is simply the point at which mortgage insurance stops being charged.
Conventional loans start at 3% down for eligible buyers. Waiting years to accumulate 20% while paying rent and watching prices move is, for most households, considerably more expensive than buying sooner and paying mortgage insurance for a while.
Why mortgage insurance behaving well matters so much
This is the structural reason conventional often wins. Conventional mortgage insurance is temporary. You can request that it be cancelled once your balance reaches 80% of the original value, and it terminates automatically at 78%. If the home has appreciated, a fresh appraisal can reach that point well ahead of the amortisation schedule.
Compare that with an FHA loan in Kentucky, where on most modern loans the monthly premium stays for the life of the loan and the only way out is a refinance. Over a seven- or ten-year hold, a removable cost and a permanent one produce very different totals even when the rates look identical on day one.
Where your credit score turns into money
On a conventional loan the score does two jobs. It prices the interest rate, and it separately prices the mortgage insurance premium. Both move in tiers, which means a file sitting a handful of points beneath a threshold is genuinely worth fixing before closing rather than after.
Sometimes that is a matter of paying down one card, or correcting something reported wrongly. Ryan would rather spend three weeks improving the file and price you properly than close you quickly on worse terms. That conversation only happens if someone looks before the file is locked.
Where conventional runs out
- Above the conforming limit, the loan becomes a jumbo loan in Kentucky with its own guidelines. The limit is revised annually.
- When income is hard to document — self-employment with heavy write-offs is the classic case — a bank statement loan in Kentucky often qualifies far more of your real income.
- When the rental is the borrower, not you, a DSCR loan in Kentucky qualifies on the property's rent instead of your tax returns.
- When credit history is the obstacle, FHA is usually the more forgiving route.
Knowing where each program stops is most of the job. Ryan runs your file against several of them and shows you the difference in dollars.
Run the numbers
Price a conventional purchase in this market.
Principal, interest, taxes and insurance. Adjust the down payment to see where you cross the 20% mortgage-insurance threshold.
Mortgage insurance is not included below — it applies under 20% down and is quoted from your credit profile. These are illustrative estimates, not a rate quote, an offer, or a commitment to lend. Your real figures depend on your full file. Every other program has its own calculator — they are collected here.
Common questions
How much do I need down for a conventional loan in Kentucky?
Eligible buyers can go as low as 3% down, and 5% is common. Twenty percent is not a requirement — it is simply the threshold at which mortgage insurance is no longer charged. Plenty of buyers are better off putting less down, keeping reserves, and paying mortgage insurance for a few years until equity removes it.
When does conventional mortgage insurance come off?
This is conventional's structural advantage over FHA. Mortgage insurance is removable: you can request cancellation once the balance reaches 80% of the original value, and it terminates automatically at 78%. If the property has appreciated, a new appraisal can get you there faster than the amortisation schedule would. It is not a permanent cost the way FHA's usually is.
What credit score do I need?
The practical floor is around 620, but the score does more than decide eligibility — it prices the loan and, separately, prices the mortgage insurance. The jump between score tiers can be worth real money each month, which means a file sitting a few points below a threshold is often worth a short delay to fix rather than closing as-is.
Is a conventional loan better than FHA?
It usually costs less over time when your credit supports it, because the mortgage insurance eventually disappears. FHA is more forgiving when credit history or debt ratios are the problem. The right way to choose is to price both against your actual scenario and compare total cost over the years you expect to own the house, rather than comparing headline rates.
Can I use a conventional loan for a rental property?
Yes. Conventional financing covers investment property, typically with a larger down payment and pricing adjustments for the occupancy. It qualifies against your personal income and debts, which is the key difference from a DSCR loan — that one qualifies on the property's rent instead and ignores your tax returns.
No credit pull · No obligation
Put your conventional loan scenario in front of Ryan.
Send the shape of your situation and Ryan will tell you where you actually stand — including when the answer is that a different program, or a different month, serves you better. He reads these himself.
🔒 Nothing on this form touches your credit. No Social Security number, no pay stubs, no application — just enough for Ryan to give you a straight answer. Equal Housing Opportunity. Ryan Miles, NMLS #112627 · Coast 2 Coast Mortgage, LLC, NMLS #376205.