Conventional Investment Property Loans in Louisville, KY
Loan-size math and qualifying analysis for Conventional financing on Louisville's $265k median home value. Strong fit.
Strong fit for Louisville.
Louisville medians ($265k) keep down payment requirements manageable, and rental fit (86/100) supports the long-term cash flow conventional loans depend on.
Payment on Louisville's $265k median.
| Median home value (Louisville) | $264,957 |
| Assumed LTV | 80% |
| Loan amount | $211,965 |
| Cash to close (down payment) | $52,992 |
| Assumed rate | 6.75% |
| Term | 30-year amortizing |
| Monthly P&I | $1,375/mo |
Does Louisville pencil?
| Median monthly rent (Louisville) | $1,377/mo |
| Property taxes (est. 1.1%/yr) | −$243/mo |
| Insurance (est. 0.5%/yr) | −$110/mo |
| NOI (before debt) | $1,024/mo |
| Debt service | −$1,375/mo |
| DSCR | 0.74 |
Most Conventional lenders require DSCR ≥ 1.10 to fund and ≥ 1.20-1.25 for the best pricing tier. Louisville medians fall below typical lender DSCR floors — a DSCR loan will only work on properties materially below median or with above-market rent.
Conventional financing — the mechanics.
Conforming residential mortgage for non-owner-occupied 1-4 unit properties, sold to Fannie Mae or Freddie Mac. Standard 30-year amortization. The lowest-cost real-estate financing available to most investors.
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
How Kentucky law affects this loan.
Kentucky: state income tax 4.0%. See full Conventional in Kentucky breakdown.
Frequently asked.
What's the typical Conventional loan size for a property in Louisville?
On Louisville's $265k median home value, a Conventional loan at the standard 80% LTV would be approximately $212k, requiring $53k down.
What's the monthly payment on a typical Conventional loan in Louisville?
Fully-amortizing 30-year payment on a $212k Conventional loan at the typical rate of 6.75% would be approximately $1k/month, excluding taxes and insurance.
Is Louisville a good market for Conventional financing?
Louisville medians ($265k) keep down payment requirements manageable, and rental fit (86/100) supports the long-term cash flow conventional loans depend on.
What credit and reserves do Conventional lenders require for Louisville properties?
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
Compare financing options.
Investment-property loans underwritten on the property's cash flow rather than the borrower's person...
Hard moneyShort-term, asset-based real-estate financing for time-sensitive acquisitions and rehab projects. Ex...
FHAGovernment-insured residential loans designed for primary residence buyers — but the assumable featu...
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.