First-Time Homebuyers in Kentucky: Buy Your Home with $0 Down!
Dreaming of owning your first home but worried about the down payment? You’re not alone—and I’ve got great news! In Kentucky, there are programs designed just for first-time buyers like you, offering 100% financing with no money down. Let’s break it down:
Kentucky Zero Down Loan Options
Kentucky USDA Loans
USDA loans are backed through the Rural Housing Division of the U.S. Dept. of Agriculture. They are available to millions of eligible primary home buyers with low to moderate incomes or scarce funds for down payments.
Features, benefits and things you need to know:
Zero Down - No down payment is required for Kentucky USDA loans. Thirty-year, fixed-rate loans with no pre-payment penalty are the norm. Rates are very competitive with conventional loans.
Eligible Property - These loans are limited to "rural" areas, though you might be surprised by some of the suburbs of major metropolitan areas that qualify as rural.
Homes should be modest in size and cost and constructed per local codes and regulations.
Eligible Borrowers - Funds are available for qualified borrowers who earn up to 115% of the area median income.
Even candidates who have had past credit issues with late pays, bankruptcies or foreclosure may be eligible. Borrower's income must support the proposed payments and meet the program requirements for approval. Primary occupancy is required. This program is not for investment properties.
Benefits - Minimum cash is needed to close. The USDA Guarantee Fee and some eligible closing costs may be financed. Gift money, grant money and seller contributions are allowed.
Kentucky VA Loans
Veteran's Administration or "VA" loans are available for active, non-active and retired Army, Air Force, Marine, Navy, National Guard and Coast Guard vets who meet the established service requirements.
- 100% financing/No down payment
- No monthly mortgage insurance (PMI)
- Gift funds acceptable for closing costs
- No cash reserve requirements
- A variety of terms or loan types available
- Available for purchase and refinance
- Reduced costs for disabled veterans
- Seller can pay for closing costs
- Seller pays for any required repairs
- No pre-payment penalty
- No minimum credit score 2 years removed from bankruptcy or foreclosures
To determine your ability to participate in this program, just provide your Certificate of Eligibility (COE) or your Discharge/Separation form (DD214). If you do not have your COE, you can request one using form 26-1880.
Kentucky Down Payment Assistance Programs
From first-time buyers to current homeowners, many state, county and local housing agencies offer affordable loan programs with Down Payment Assistance (DPA), subject to availability of funds and credit qualifying.
Down payment assistance can vary with single products or sometimes can be a combination of products such as Mortgage Credit Certificates (MCC), Grants, DPA’s along with closing cost assistance and low interest rates and fees that can help individuals and families become successful homeowners.
All borrowers must qualify for an underlying mortgage product according to the Housing Finance Agency authority (FHA, VA, USDA or Conventional). Housing loan programs are then layered on top to provide additional benefits. If eligible, the borrower can also add a down payment and closing cost assistance to their loan according to individual program guidelines.
What state are you in? I assume Kentucky. I will help you gather more information if this is something you want to look into. The general terms are below:
KHC recognizes that down payments, closing costs, and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.
Kentucky Welcome Home Buyer Eligibility
A homebuyer would be eligible for the Kentucky Welcome Home grant if all of the following guidelines are met:
- The total income for all occupants who will reside in the home is at or below 80 percent of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located;
- A fully executed (signed by buyer and seller) purchase contract on an eligible property is in hand;
- The homebuyer has at least $500 of their own funds to contribute towards down payment and/or closing costs; and,
- If a first-time homebuyer (typically anyone who has not owned a home in the last three years), a satisfactory homebuyer counseling course is completed prior to the loan closing.
Note: Applicants do not have to be first-time homebuyers.
Zero Down 100% Financing Mortgage Loans in Kentucky
Close loans in 20–30 days with $0 down payment. Don’t wait—see if your transaction qualifies today!
- 100% financing — no money down required
- No cash reserves or seasoning needed to qualify
- Seller-paid closing costs allowed
- Fixed interest rates for stability and peace of mind
- Eligible for both new construction and existing homes
Programs offered through:
- Kentucky Housing Corporation (KHC)
- VA Home Loan Program (for eligible veterans)
- USDA Rural Development Mortgage Program
Our underwriters specialize in 100% financing mortgage loans in Kentucky. Enjoy quick turn times and work with a local expert who knows your market.
✅ Hosting kentucky first-time homebuyer seminars
✅ Credit scores starting at 580 for FHA/VA/USDA Kentucky Mortgage Loans
✅ 620+ scores qualify for KHC Down Payment Assistance Down payment Assistance 5% grant!
Call Joel Lobb today:
(502) 905-3708
Senior Loan Officer • NMLS #57916 NMLS #1738461
Email: kentuckyloan@gmail.com
Website: mylouisvillekentuckymortgage.com
🎥 Watch this quick video to learn how 100% financing works in Kentucky to buy a house in Kentucky going no money down with the KHC, VA, USDA and Down payment Assistance 5% grant!
Joel Lobb (NMLS#57916)
Senior Loan Officer
Senior Loan Officer
Text/call 502-905-3708
