I have successfully originated over 200 VA Home loans in Kentucky. Put my experience to work for you. Call or text me today at 502-905-3708 or email me at Kentuckyloan@gmail.com-This website is not affiliated with the VA or any other government agency. NMLS #57916 Equal Housing Lender. Same Day Approvals, Fast Closings, and a Local Veteran offering VA Home Loans in Kentucky. Free Credit Report and Pre-Approvals NMLS# 57916 Joel Lobb Loan Originator, Company NMLS ID 1738461 . Equal Housing Lender
Author: Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans
Thank you for visiting. I hope you find this website both informative and empowering as you explore your mortgage options. My goal is to help you feel confident in selecting the right home loan for your unique situation. I proudly serve all 120 counties in Kentucky, offering a full range of mortgage loan programs, including: FHA Loans VA Loans USDA Rural Housing Loans Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I’ve had the privilege of helping more than 1,300 Kentucky families achieve their homeownership goals. Whether you're a first-time homebuyer or seeking a second opinion, I’m here to offer honest, no-pressure advice—always free of charge. I am dedicated to: Attending as many closings as possible Providing responsive, personalized service Ensuring quick, efficient, and accurate loan processing Making myself accessible every step of the way I've been consistently recognized as a top mortgage loan officer in Kentucky for VA, FHA, USDA, and KHC programs. I take pride in being thorough, transparent, and attentive with each and every client. Please take a moment to read my reviews below. If you have questions or need guidance, feel free to call or text me directly. Call/text at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications.
Email me at kentuckyloan@gmail.com with your questions
I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer, we offer Kentucky Housing or KHC loans with down payment assistance.
This website is not an government agency, and does
not officially represent the HUD, VA, USDA or FHA or any other government agency.
NMLS# 57916 http://www.nmlsconsumeraccess.org/
Joel Lobb Senior Loan Officer/p>
call/text phone: (502) 905-3708 kentuckyloan@gmail.com Company ID #1738461
EQUAL HOUSING LENDER
http://www.mylouisvillekentuckymortgage.com/
How to Calculate Residual Income for a Kentucky VA Home Loan Approval (2026)
Kentucky veterans using a VA home loan must meet minimum residual-income requirements. Residual income measures the monthly funds left over after housing costs, taxes, and all recurring bills. It is a core underwriting factor that determines whether a VA loan can be approved, especially when debt-to-income ratios are higher or credit depth is limited.
This guide breaks down how residual income works, how to calculate it correctly, and the 2026 minimums required for Kentucky VA buyers.
Residual income is the amount of money left after subtracting all monthly obligations from the borrower’s gross monthly income. The VA establishes region-based minimums to ensure borrowers have enough remaining funds to cover essentials such as food, transportation, clothing, utilities, and other living expenses.
Even if a borrower has a high credit score and a strong DTI ratio, the loan cannot be approved without meeting minimum residual-income thresholds.
How Kentucky Lenders Calculate VA Residual Income
Start with gross monthly income for all occupying borrowers.
Subtract federal, state, and local taxes based on paystubs/W-2 withholding tables.
Subtract the proposed housing payment (PITI): principal, interest, taxes, insurance, HOA, and any maintenance fees.
Subtract all recurring debts:
auto loans
student loans
credit card minimums
child support / alimony
personal loans or installment debt
Subtract estimated utilities/maintenance. Many lenders use approximately $0.14 per square foot of heated living space.
The figure remaining after all these deductions is the official VA residual income.
2026 VA Residual Income Requirements for Kentucky (South/Midwest Region)
Household Size
Minimum Residual Income
1 Person
$441
2 Persons
$738
3 Persons
$889
4 Persons
$1,003
5 Persons
$1,039
Each Additional Person
Add $80
If debt-to-income ratio exceeds 41 percent, underwriters typically require 20 percent more than the baseline residual number.
Why Residual Income Matters More Than DTI
Residual income is one of the strongest predictors of loan performance in the VA program. Borrowers who meet or exceed the residual-income benchmark show significantly higher repayment success rates — even when credit scores are less than perfect or DTI ratios appear high.
If the loan does not meet residual income, the file cannot be approved without compensating factors or structural changes to qualifying income or household composition.
Free Help Calculating Residual Income
If you want, I can run a complete residual-income analysis for you or your buyer using up-to-date 2026 VA guidelines.
The KHC Eligibility and Credit Standards Overview offers crucial guidelines. These guidelines are for Kentucky home buyers seeking assistance through Kentucky Housing Corporation KHC Loan Programs(KHC) loan programs. Here’s a summary of key points from the image:
Kentucky khc Home Buyer Eligibility
Available for first-time and repeat home buyers across Kentucky.
Borrower must be a U.S. citizen or legal resident.
Income eligibility is determined through the Secondary Market.
The property must be the borrower’s primary residence.
Borrowers cannot own any other residential property at the time of closing if using MRB Funding.
Down Payment Assistance is available for borrowers who meet both income and purchase price limits.
Non-taxable income can be grossed up, which helps borrowers qualify for higher loan amounts.
Property Eligibility for khc loan programs
Eligible properties include both new and existing homes.
Manufactured homes are eligible for both new and existing purchases.
RHS loans only allow new construction for manufactured housing.
Purchase price limit: HERE ➡️➡️for Secondary Market and MRB Loans.
Full appraisals are required for all KHC loans.
VA loans require a termite inspection for existing properties.
New construction properties (except conventional loans) must have a termite soil treatment certificate.
KHC credit and income qualifying guidelines
Flexible credit requirements: Borrowers with 620+ credit scores can qualify for FHA, VA, and RHS loans. On the other hand, Conventional loans require a 660+ credit score.
Debt-to-income ratio of up to 50% allows flexibility for borrowers with higher debt obligations.
Down Payment Assistance is available for those who meet income and price limits.
Manufactured housing is eligible, but new construction requirements apply for RHS loans.
Bankruptcy and foreclosure waiting periods range from 2-7 years, depending on the loan type.
Eligible KHC Mortgages
FHA, RHS, VA, HFA Preferred, HFA Preferred Plus 80, & Freddie HFA Advantage
Must be used with a KHC first mortgage
khc Eligibility Requirements
Summary of khc mortgage loan product
DAP funds are only available to home buyers obtaining a KHC first mortgage.
Offers affordable repayment terms (4.75% interest over 15 years).
No home buyer education required, which simplifies the process.
Can be used with various loan programs (FHA, VA, USDA, Conventional).
Debt-to-income ratios up to 50% are allowed with AUS approval.
This program makes homeownership more accessible by providing down payment assistance without requiring extensive upfront savings. Would you like help determining eligibility or applying for KHC mortgage assistance? Let me know!
Can You Buy a Farm in Kentucky With a VA Home Loan?
Yes, in many cases. The VA Home Loan benefit can be used to purchase a farm property in Kentucky when there is a residence on the land and the Veteran will live in that home as a primary residence.
VA loans are for residential purposes and cannot be used to buy a business.
The Veteran must occupy the home as their primary residence.
The loan must be primarily for a residence, not for purchasing a business or commercial operation.
Properties that are primarily commercial farms (business-first) may not qualify.
Practical Kentucky example: A home on acreage in areas like Oldham County, Shelby County, Spencer County, Hardin County, or rural Warren County can be workable when comps support residential use and the home is the primary purpose of the purchase.
Appraisal, acreage, and outbuildings in Kentucky
VA does not set a maximum number of acres.
Acreage typically isn’t an issue if comparable sales in the area sold primarily for residential use.
Outbuildings and improvements like barns, sheds, corrals, stables, and pastures may be considered in value as residential-related improvements.
The VA valuation must not include livestock, crops, or farm equipment/supplies.
This is why “comps” matter in Kentucky: if the closest comparable sales are residential-with-acreage (not commercial ag sales), underwriting is usually more straightforward. :contentReference[oaicite:1]{index=1}
Using farm income to qualify
If some or all of the income needed to qualify comes from farming operations, the VA requires verification that the Veteran has the ability and experience to operate the farm. :contentReference[oaicite:2]{index=2}
Expect documentation similar to self-employment (history, consistency, and ability to continue).
We’ll focus on stable, documentable qualifying income—not one-time or speculative income.
VA vs FHA vs USDA acreage comparisons (Kentucky)
The real-world issue usually isn’t a hard acreage cap. It’s whether the property is primarily residential, whether comps support the value, and whether there are income-producing features that make the property look like a business purchase.
Program
Does it have a strict acreage limit?
What underwriters/appraisers care about
Common Kentucky “deal killers”
VA
No stated acre limit.
Primary residence requirement, residential comps, no value for livestock/crops/equipment; residential-only valuation for farmland portion.
Property is primarily a working commercial farm; comps are commercial ag sales; value tied to business assets. :contentReference[oaicite:3]{index=3}
FHA
No universal acre cap; must be typical for the area and primarily residential.
Residential highest-and-best use, marketability, and appraisal support; avoid properties that function like a commercial operation.
Commercial ag use dominates; unique specialty improvements without residential market support.
USDA (Guaranteed)
No specific site size/acreage limit, but it must be predominantly residential.
Predominantly residential character; the property must not include buildings principally used for income-producing purposes.
Income-producing land or facilities used primarily for ag/commercial enterprise; property fails rural eligibility mapping. :contentReference[oaicite:4]{index=4}
Quick Kentucky rule of thumb
Residential-firstComps must fitNo business purchaseDocumentable incomeClear occupancy plan
Steps to a VA home loan (including farm properties)
Get your Certificate of Eligibility (COE). Lenders can typically retrieve this electronically.
Get preapproved with a VA-experienced lender and connect with a Realtor.
Choose a home and sign a purchase agreement that includes a VA financing contingency.
Order the VA appraisal and clear final underwriting conditions for closing.
If you’re looking at acreage properties in Kentucky, send the listing early. The earlier we evaluate comps and “residential vs business” risk, the fewer surprises you’ll have later.
FAQ: Kentucky VA farm properties
Can a VA loan be used on a property with barns and stables?
Often, yes, if the property is primarily residential and the improvements contribute to residential market value. The VA valuation cannot include livestock, crops, or farm equipment. :contentReference[oaicite:5]{index=5}
Does VA cap acreage?
No stated acreage limit. The focus is on residential use and comparable sales support. :contentReference[oaicite:6]{index=6}
Can I use farm income to qualify?
Potentially, yes. VA requires documentation and verification of ability/experience as a farm operator when farming income is used to qualify. :contentReference[oaicite:7]{index=7}
What makes a farm property ineligible?
When it’s primarily a business purchase (commercial farm), or value depends on business assets like livestock, crops, or equipment.
Use this checklist before writing an offer on acreage property.
Primary residence requiredResidential purpose onlyAcreage not capped
Must-haves
Home on the land
Veteran occupies as primary residence
Property is primarily residential
Comparable sales support residential-with-acreage value
What cannot be included in value
Livestock
Crops
Farm equipment or supplies
Often OK (when residential)
Barns, sheds, corrals, stables
Pastures and typical rural improvements
Farm income, if documentable and experience is verified
Common red flags
Commercial farm operation is the main purpose
Value relies on business assets
No good residential comps (only ag/commercial sales)
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KENTUCKY VA MORTGAGE LENDER 
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