I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
View current mortgage interest rate ranges for Kentucky homebuyers and homeowners. This rate tool reflects market-based pricing for FHA, VA, USDA Rural Housing, KHC, and conventional loan programs. Rates shown are for educational comparison purposes only.
Disclosure: Mortgage rates displayed are not guaranteed and do not constitute a loan offer or commitment to lend. Actual rates and terms are subject to credit approval, underwriting guidelines, and program eligibility. This website is an independent educational resource and is not endorsed by the FHA, VA, USDA, HUD, or any government agency.
The timing of a mortgage rate lock depends on whether you are purchasing a home or refinancing an existing loan. Market conditions, closing timelines, and risk tolerance all play a role.
Home Purchase Transactions
For home purchases in Kentucky, many borrowers choose to lock once they have a fully executed purchase contract and their loan file is complete. Locking early can protect against market volatility, especially when closing dates are fixed and appraisal or underwriting timelines are tight.
Refinance Transactions
Refinancing borrowers often have more flexibility. Some monitor rates and lock when pricing meets their financial goals. Because refinances are more sensitive to rate and APR differences, borrowers may choose to float longer, understanding that market conditions can change quickly.
Lock decisions should be based on individual financial goals and risk tolerance. No strategy guarantees the lowest rate.
Kentucky Purchase vs Refinance APR Examples
In Kentucky, APR differences between purchase and refinance transactions are common due to how finance charges, prepaid items, and mortgage insurance are calculated.
A purchase loan may show a higher APR than its interest rate due to upfront mortgage insurance, discount points, or lender fees included in the APR calculation.
A refinance loan may show a different APR even with a similar interest rate because prepaid interest, escrow setup, or loan term adjustments affect total finance charges.
Government-backed loans such as FHA or USDA often display APRs that differ more noticeably due to required mortgage insurance or guarantee fees.
APR examples are illustrative only and do not reflect actual loan terms.
Discount points are optional fees paid at closing to reduce the interest rate. Payment of points increases upfront costs and may not be suitable for all borrowers. The impact of discount points on interest rate and APR depends on loan program, loan amount, and market conditions. Consult a mortgage professional to determine whether paying points aligns with your financial goals.
Understanding the Four Main Mortgage Loan Programs in Kentucky
When buying a home in Kentucky, your mortgage will typically fall under one of four major loan programs: FHA, VA, USDA, or Conventional (Fannie Mae/Freddie Mac). Each program offers unique benefits depending on your credit, income, military status, and location. Below is a streamlined breakdown to help you determine the best fit for your situation.
Select a Kentucky county to view the USDA Guaranteed household income cap.
Effective: 06/18/2025
Income Limits for:
Kentucky (select a county)
Household of 1–4
—
Household of 5–8
—
For households above 8 people, USDA guidance commonly increases the cap by 8% per additional member (based on the area’s base). Confirm final calculation with the lender/agency tool for your scenario.
Get pre-qualifiedFast eligibility review for KY USDA, FHA, VA, Conventional, and KHC.
Louisville Kentucky First-Time Home Buyer Programs
FHA • VA • USDA • KHC Down Payment Assistance for Louisville & Jefferson County Buyers
Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA, Mortgage Broker – NMLS #57916 | Company NMLS #1738461 | Equal Housing Lender
Louisville Kentucky first-time home buyer programs can help you purchase with low or zero down payment.
Buying your first home in Louisville can feel overwhelming — especially when you're trying to compare loan programs, down payment
options, and credit requirements. The good news is that Louisville and Jefferson County buyers have some of the strongest
first-time home buyer programs in Kentucky, and many of them allow you to get into a home with low or even zero down
payment.
This guide breaks down all the major Louisville Kentucky first-time home buyer programs — FHA, VA, USDA, and
Kentucky Housing Corporation (KHC) Down Payment Assistance — and gives you the tools and links you need to make a confident decision.
Whether you're shopping in Germantown, PRP, Okolona, Jeffersontown, Shively, Valley Station, the Highlands, Hikes Point or anywhere else in Jefferson County, the right program can help you enter the market faster with less out-of-pocket cash.
FHA Loans for Louisville First-Time Buyers
FHA loans remain Louisville’s most widely used program for first-time buyers because they offer a low minimum down payment and flexible
credit standards. They are especially helpful if you are transitioning from renting into your first home.
Key FHA Benefits
3.5% down payment when you meet minimum lender credit guidelines
Down payment can be covered by gift funds, grants, or KHC down payment assistance
More forgiving credit requirements than many conventional loans
Competitive fixed interest rates
Seller can pay up to 6% of the purchase price toward closing costs and prepaids
Most lenders prefer to see scores at or above 580 for FHA. If your score is lower, a structured credit improvement plan
can often move you into qualifying range.
VA Home Loans for Louisville Veterans & Service Members (Zero Down)
If you are a veteran, active-duty service member, or eligible surviving spouse, a VA home loan is often the strongest
option available when buying in Louisville.
Major VA Advantages
Zero down payment required for eligible borrowers
No monthly mortgage insurance (PMI)
Competitive interest rates, often lower than FHA or conventional loans
Flexible credit guidelines compared with many other loan programs
Potential to reuse your VA benefit and even hold more than one VA loan in specific scenarios
USDA Rural Housing for Louisville & Surrounding Areas
While most of central Louisville does not qualify for USDA, many communities in the surrounding counties do. USDA can be an excellent
zero-down solution if you are open to buying just outside the city.
USDA Zero-Down Features
100% financing — no down payment required
Fixed-rate, 30-year terms
Income-based eligibility with county and household size limits
Seller-paid closing costs allowed within guidelines
USDA works especially well in parts of Bullitt, Oldham, Shelby, Spencer, Henry and other nearby counties that still offer
reasonable commutes into Louisville.
Kentucky Housing Corporation (KHC) Down Payment Assistance
Kentucky Housing Corporation (KHC) provides down payment assistance that pairs with FHA, VA, USDA, and conventional
loans, making it a key tool for Louisville Kentucky first-time home buyers who need help with down payment and closing costs.
Common KHC Down Payment Assistance Options
Regular DAP – Down payment assistance up to program limits, typically repaid over 15 years up to $12,500 at 4.75$ rate in the form of a second mortgage
Affordable DAP – Often offers a lower interest rate and targets lower-to-moderate income households
Many Louisville buyers use KHC to dramatically reduce the cash needed at closing. It’s often combined with FHA or conventional loans to
make homeownership more achievable.
Each program that serves Louisville Kentucky first-time home buyers has its own set of income limits, credit thresholds,
and purchase price considerations. Here is a general snapshot:
FHA: No formal income limit; minimum 3.5% down; many lenders prefer 580+ scores.
VA: No set income limit; 0% down; underwriting focuses on residual income and overall financial stability.
USDA: Income limits by household size and county; property must be USDA-eligible; many lenders like to see 620+ scores.
KHC DAP: Income limits and purchase price caps that vary by county; typically more comfortable starting around 620+ scores for assistance.
Frequently Asked Questions about Louisville Kentucky First-Time Home Buyer Programs
Do I have to be a first-time buyer to use these Louisville programs?
Not always. FHA, VA and USDA loans do not require you to be a first-time buyer as long as you meet occupancy and guideline
requirements. Some KHC down payment assistance options are reserved for first-time buyers, but others are available to repeat buyers who
meet the income, credit, and property criteria.
Do Louisville sellers help with closing costs?
Yes. With FHA, sellers can typically pay up to 6% of the purchase price toward closing costs and prepaids. Conventional,
VA, and USDA also allow seller contributions within their own limits. Properly structuring your offer can significantly reduce your cash
needed at closing.
Is it still possible to buy with zero down in or around Louisville?
Yes. Eligible veterans and active-duty borrowers can use VA loans with no down payment. Many areas just outside Louisville
qualify for USDA zero-down financing. In some scenarios, KHC down payment assistance can also help you
cover the minimum down payment on FHA or conventional loans.
What credit score do I need to buy a home in Louisville, Kentucky?
Every situation is unique, but as a general rule:
Many FHA lenders look for scores at or above 580+.
USDA and KHC DAP are often more comfortable starting around 620+.
VA loans can sometimes approve with lower scores when residual income and overall file strength are solid.
If you are not there yet, a targeted credit improvement strategy can often get you into qualifying range faster than you might expect.
Watch: Louisville First-Time Home Buyer Programs Explained (Video)
Prefer to watch a quick breakdown instead of reading? In this short video, I walk through FHA, VA, USDA, and KHC options for Louisville
first-time home buyers and explain how to choose the right fit.
Ready to See Which Louisville Kentucky First-Time Home Buyer Program Fits You?
You don’t have to guess which combination of FHA, VA, USDA and KHC down payment assistance is best for your situation.
I will run the numbers side by side for you, including estimated payments, total cash to close, and long-term savings.
Once I have your basic information and documents, we can typically issue a strong pre-approval in as little as 24–48 hours on most files,
so you can shop with confidence in the Louisville market.
Joel Lobb – Mortgage Broker, FHA, VA, USDA, KHC, Fannie Mae
EVO Mortgage • Helping Kentucky Homebuyers Since 2001
NMLS #57916 | Company NMLS #1738461
Equal Housing Lender •
www.nmlsconsumeraccess.org
This is not a commitment to lend. All loans are subject to credit approval, acceptable collateral, and program guidelines. Terms and
conditions are subject to change without notice.
Call/Text: 502-905-3708
Email: kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com
