The short answer: yes, you can buy a house in Kentucky with nothing down. There are two ways to get there — a loan that requires no down payment in the first place, or down payment assistance layered on top of a loan that does.
I am Joel Lobb, a mortgage loan officer with EVO Mortgage. This is the question I get asked more than any other, and it is also the one where Kentucky buyers get the most bad information.
First, the part most websites will not tell you
Most Kentucky “down payment assistance” is not a grant. It is a second mortgage you pay back.
The main KHC program is a repayable second loan with its own monthly payment on top of your first mortgage. That is not a reason to avoid it — for a lot of my buyers it is the difference between owning this year and waiting two more. But you should see the real monthly number before you sign, and a page that calls it free money is not doing you any favors.
True grants — money you never repay — do exist in Kentucky. There are just far fewer of them than the internet suggests, and they run out fast. Both kinds are covered below, labeled honestly.
Option 1: loans that need no down payment at all
Before you go looking for assistance, check whether you even need it. Two programs finance the whole purchase price for borrowers who qualify.
VA loans — for veterans, active duty, National Guard and Reserve, and surviving spouses. No down payment, no monthly mortgage insurance. I served in the Army myself, and this is the benefit I most hate to see go unused. No income limit and no first-time buyer requirement.
USDA Rural Housing loans — no down payment, and far more of Kentucky is eligible than people expect. The catches are household income limits and the property location. Worth checking your address before you assume it does not apply.
If either fits, you generally do not need assistance to cover a down payment — there is not one to cover. You may still want help with closing costs, which is a separate conversation.
Option 2: Kentucky Housing Corporation down payment assistance
KHC is the state housing agency and its assistance is the workhorse of Kentucky first-time buying. Currently up to $12,500, used for your down payment and closing costs, layered on top of an FHA, VA, USDA or conventional first mortgage.
It is a repayable second mortgage. It has its own monthly payment and its own term. When I quote you a KHC file I show you the payment with the assistance and the payment without it, side by side, so you can decide whether the trade is worth it. Sometimes it plainly is. Sometimes waiting six months and saving is the better move, and I will say so.
Typical requirements: first-time buyer status, meaning you have not owned a home in the past three years; a credit score around 620; household income and purchase price under the limits for your county; and a homebuyer education course.
Amounts, income limits and program names change from year to year, and KHC has been known to adjust mid-year. Ask me what is actually on the table the week you apply rather than trusting any figure you read online, including this one.
Option 3: the Welcome Home Grant — a real grant, but you have to be early
The Welcome Home program from the Federal Home Loan Bank of Cincinnati is genuine grant money — you do not pay it back if you stay in the home for the required period. Recent rounds have offered $20,000 for eligible buyers and $25,000 for veterans, active duty and surviving spouses.
Here is the part that decides whether you get it: Welcome Home opens in annual rounds, funds are reserved by the lender on a first-come basis, and historically the money is gone within days. The 2026 round opened in early spring and has closed. Buyers who start looking when the round opens have already lost.
If Welcome Home is what you are after, the move is to be fully underwritten and ready before the next round opens, so I can reserve funds the hour it does. That is a conversation to have now, not next spring. Call me and I will put you on the list.
Local programs: Louisville, Lexington and county-level help
Several Kentucky cities and counties run their own assistance, usually as forgivable loans rather than grants — forgiven over time if you stay in the home. Louisville Metro and Lexington both operate programs, and they typically carry lower income ceilings and lower purchase price caps than KHC, plus a required counseling course.
These are funded in rounds too, and they close when the money is spent. The Louisville Metro round for 2026 has already closed for the year.
A word of caution I give everyone: local programs rarely stack with state programs the way people hope. If a website tells you to combine three sources and buy with money left over, be skeptical. Tell me your county and I will tell you what genuinely combines.
Zero down does not mean zero dollars
Two separate things get confused constantly, and this is where buyers get surprised at the closing table.
Closing costs
The lender, title and settlement fees. In the Louisville area these commonly run in the several-thousand-dollar range, and a seller contribution negotiated into your contract can wipe them out entirely.
Prepaids
Your escrow for property taxes and homeowners insurance, plus a few days of interest. These are quoted per file and depend on your closing date and the tax bill on that specific house. I never fold them in with closing costs, because that is exactly how people end up short.
Put assistance, a seller contribution and good timing together and a Kentucky buyer can reach closing with very little out of pocket. I have had files where the buyer got the appraisal fee and good faith deposit back. That is not the typical outcome, but it happens.
What you generally need to qualify
Credit. Around 620 for most assistance programs. See the full breakdown by program.
Income under the limit. Set by county and household size. Being under is required — earning too much genuinely disqualifies you from most assistance.
First-time buyer status for most programs, which usually means you have not owned a home in the past three years. Note that this is three years, not never.
Steady income you can document. Two years of history is the norm, though there is more flexibility here than people assume.
A homebuyer education course for most assistance programs. It is online, it takes a few hours, and doing it early keeps it from delaying your closing.
Common questions about Kentucky down payment assistance
Is Kentucky down payment assistance free money?
Usually not. The main KHC program is a repayable second mortgage with its own monthly payment. Welcome Home is a true grant but runs in annual rounds that close quickly. Local city programs are typically forgivable loans, forgiven only if you stay in the home long enough. Ask which kind you are being offered before you sign anything.
Can I get down payment assistance with a 620 credit score?
Usually yes — 620 is the common threshold for KHC and most assistance programs. Below that you may still have loan options, particularly FHA, but the assistance layer often falls away. That is one of several reasons it is worth getting your score checked early.
Do I have to be a first-time home buyer?
For most assistance programs, yes — but “first-time” generally means you have not owned a home in the last three years. People who owned years ago, or lost a home, are often surprised to find they qualify again. VA and USDA loans have no first-time buyer requirement at all.
Can I stack multiple assistance programs together?
Rarely, and not the way most websites imply. Programs have rules about what they can be combined with, and the ones that pair well are limited. Tell me your county and your situation and I will tell you what actually works together rather than what looks good on paper.
What if I miss the Welcome Home round?
You did not miss your shot, you are early for the next one. The buyers who get Welcome Home money are the ones who were already fully underwritten when the round opened. Get pre-approved now and you are positioned rather than hoping.
Find out what you actually qualify for
Tell me your county, who lives in your household and roughly where your credit sits, and I will tell you which programs are genuinely open to you right now — and what each one would actually cost you every month. The application is free and there is no obligation.
Call or text 502-905-3708 — evenings and weekends welcome.
Email kentuckyloan@gmail.com
More reading: Kentucky first-time buyer programs · Credit score requirements · USDA zero-down guide · Client reviews
Program amounts, income limits, purchase price caps and funding availability are set by Kentucky Housing Corporation, the Federal Home Loan Bank of Cincinnati and local agencies, and change without notice. Figures on this page are current as of August 2026 and are general education, not a credit decision and not a commitment to lend. Down payment and assistance figures shown are program maximums for borrowers who qualify and do not include closing costs or prepaids. Your rate, APR, payment and terms depend on your credit, loan amount, property and program, and are disclosed to you in a Loan Estimate. All loans are subject to credit approval, underwriting approval, income and asset verification, property appraisal and program guidelines.
Joel Lobb, Mortgage Loan Officer — EVO Mortgage — NMLS #57916 — Company NMLS #1738461 — NMLS Consumer Access — Equal Housing Lender. This website is not endorsed or sponsored by KHC, FHA, VA, USDA or any government agency.