Buy Your First Kentucky Home With Little or No Money Down
USDA, FHA, VA, and Kentucky Housing (KHC) loans plus down payment assistance — I’ll match you to the program that fits your credit, income, and savings, and walk you through every step to the keys.
- ✓ $0 Down With USDA & VA
- ✓ FHA With 3.5% Down & 580+ Credit
- ✓ Up to $12,500 KHC Down Payment Assistance
- ✓ Same-Day Pre-Approvals, All 120 Counties
Start My Free Pre-Approval
Do You Count as a First-Time Buyer in Kentucky?
Probably more than you think. For Kentucky Housing Corporation and most assistance programs, you are a first-time buyer if you haven’t owned a home in the last three years — so a past homeowner can qualify again.
And here’s what most people don’t know: USDA, FHA, and VA loans don’t require you to be a first-time buyer at all. They’re simply the easiest loans to qualify for when you’re buying your first home with limited savings or less-than-perfect credit.
Every program has different rules for credit score, income, down payment, and location. My job is to line them up side by side with your real numbers so you pick the one with the lowest cost and the best shot at approval.
See Which Program I Qualify Forwith USDA or VA
with FHA (580+ score)
assistance available
considered for FHA & VA
Kentucky First-Time Buyer Loan Programs
Four programs do most of the heavy lifting for first-time buyers in Kentucky. Here’s how they differ on money down, credit, and who qualifies.
USDA Rural Housing
- 640 score for automated approval; lower scores by manual underwrite
- Home must be in a USDA-eligible area (most of Kentucky outside Louisville, Lexington & N. KY cores)
- Household income limit $122,800 (1–4 people) / $162,100 (5–8)*
- 0.35% annual fee — cheaper than FHA
FHA Loan
- 580+ score = 3.5% down; 500–579 = 10% down
- No income limits and no location limits
- Down payment can be a gift from family
- Higher debt-to-income ratios allowed than conventional
VA Loan
- For eligible veterans, active duty, Guard/Reserve, and some surviving spouses
- VA sets no minimum score; most lenders look for 580–620
- No income limits; uses residual income to qualify
- One-time funding fee (2.15% first use with 0 down) — waived with VA disability
KHC + DPA
- 620 minimum credit score
- Pairs with an FHA, VA, USDA, or conventional first mortgage
- Assistance repaid as a 15-year second mortgage
- Income limit $152,775 most counties ($173,250 Jefferson, $178,675 Fayette, $192,325 N. KY); max price $566,354
What It Takes to Qualify, Program by Program
Lenders use the middle of your three credit scores. If you’re below these numbers, don’t give up — I’ll show you exactly what to fix and how long it should take.
| Program | Minimum Credit | Down Payment | Income Limit | Location Rules | Mortgage Insurance |
|---|---|---|---|---|---|
| USDA | 640 automated lower by manual UW | $0 | $122,800 / $162,100* | USDA-eligible areas only | 1% upfront + 0.35%/yr |
| FHA | 580 (500 with 10% down) | 3.5% | None | Anywhere in Kentucky | 1.75% upfront + 0.55%/yr |
| VA | No VA minimum 580–620 typical | $0 | None (residual income) | Anywhere in Kentucky | None — one-time funding fee |
| KHC + DPA | 620 | Up to $12,500 assistance | $152,775 most counties | Anywhere; price cap $566,354 | Per first-mortgage program |
| Conventional | 620 | 3%–5% | Only on some 3% programs | Anywhere in Kentucky | PMI, removable at 20% equity |
Typical first-time buyer guidelines; final approval depends on full credit, income, and property review. Most programs look for steady income and two years of work history (school or military time can count).
Kentucky Down Payment Assistance & Grant Programs
Not enough saved for a down payment or closing costs? These are the main ways Kentucky first-time buyers cover the cash to close.
KHC Down Payment Assistance
Kentucky Housing Corporation assistance for down payment, closing costs, and prepaids, repaid as a low-payment 15-year second mortgage. Requires a 620 score and income under KHC limits.
Welcome Home Grant
A true grant through participating Federal Home Loan Bank members — no repayment if you stay 5 years. The 2026 round closed April 30, 2026. Ask me to put you on the list for the 2027 round.
Seller Credits & Gift Funds
Sellers can pay part of your closing costs, and family can gift your down payment on FHA, VA, USDA, and conventional loans. Paired with a $0-down USDA or VA loan, many buyers close with very little cash.
First-Time Buyers Are My Specialty
- ✓I Explain EverythingNo jargon. You’ll know what every number means and what happens next at each step.
- ✓Every Program Side by SideUSDA, FHA, VA, KHC, and conventional compared with your real payment — not a one-size-fits-all loan.
- ✓Credit Help If You Need ItNot quite there yet? I’ll give you a plain-English plan to reach the score you need.
- ✓One Person, Start to CloseYou work directly with me the whole way — nights and weekends included.
What Kentucky First-Time Buyers Are Saying
The reviews below were written by Kentucky buyers and homeowners who found this website, called or emailed me, and then let me help them buy or refinance. They run back more than fifteen years, and that is the part I am proudest of. They are printed the way people wrote them.
If you would rather read reviews I have no control over, they are on Google.
My husband and I before we met Joel was at 3 realtors and 3 mortgage companies….with no movement. My parents referred us to Joel and the rest was history. From the very beginning we explained where we were with home buying. He took it and ran with it. He made sure we got into a home.
Such an easy process full of communication and open door when it came to any question we had since this was our first time home buying. I recommend Joel to anyone! He will get you in a home as well as making sure your home loan is fit for you!
Very dedicated and even after the closing he will still be there to communicate and follow you through this journey if any questions arise!
Kentucky First-Time Home Buyer Questions
Can I really buy a home in Kentucky with no money down?
What credit score do I need to buy my first home in Kentucky?
Which loan is best for a first-time buyer — USDA, FHA, VA, or KHC?
Are there grants for first-time home buyers in Kentucky?
Are there income limits for first-time buyer programs?
What do I need to get pre-approved?
Start Your Kentucky First-Time Buyer Pre-Approval Today
Takes under a minute • No hard credit check • Same-day answers
Start My Pre-ApprovalOr call/text Joel directly: 502-905-3708