Buying your first house in Kentucky can be a scary process. Here are the main home loan programs that homebuyers use to buy their first house in Kentucky. The big five are Fannie Mae (Conventional Loan), FHA, VA, USDA, and Kentucky Housing Down Payment Assistance.
Conventional Mortgage Loan in Kentucky
Conventional loans have tighter debt-to-income requirements, with a maximum back-end ratio that generally does not exceed 45% with a down payment of less than 20%. However, they are easier to qualify for than government-insured loans, which have strict requirements regarding property upkeep and maintenance.
To secure this loan type, applicants will typically require a minimum credit score of 620, no foreclosures or bankruptcies in the last four to seven years, and at least 3% to 5% down.
Individuals with higher credit scores and more sizable down payments are preferred. There is also a limit on the total loan amount in Kentucky. For 2025, the maximum loan amount is $806,500.
FHA Loans in Kentucky
500 minimum credit score with 10% down payment, and credit scores above 580 can do 3.5% down payment. Don't have to be a first-time home buyer and no foreclosures in the last 3 years or Chapter 7 bankruptcies in the last 2 years. Possible to get a FHA loan with a Chapter 13 active as long as it has been open for 12 months with a good pay history and permission from the trustee.
This type of loan is insured by the Federal Housing Commission. Low to moderate-income borrowers can be approved to get this loan. First-time homeowners prefer this too because you can get an interest rate of as low as 3.5 percent for this loan.
Kentucky Max FHA loan for 2025 is $524,225
Kentucky VA Home Loans
This is something you could qualify for as a service member, veteran, or surviving spouse. A VA loan or mortgage is generous when it comes to providing competitive rates. Sometimes, a down payment and mortgage insurance isn’t even necessary for you to get approved for this. Just make sure that you have a good credit standing of at least 580. Most VA loans are no money down.
USDA Loans in Kentucky
This is a zero-down payment mortgage that is usually approved for rural and suburban homebuyers. This type of loan is handled and issued by the US Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. A credit score of at least 620 will also be needed for this even though USDA says they have no minimum score it is hard to get them pre-approved for scores below 620---***640 is really the preferred score for mortgage approval usually through GUS, the USDA underwriting automated system.
There is no max USDA loan just maximum household income limits based on number of people in the household.
Kentucky Housing Loan Program Down Payment Assistance
2025 KHC first-time home buyer programs
Conventional Preferred Program for low-income borrowers with a down payment of just 3%.
Conventional Preferred Plus 80 Program for a down payment of just 3%.
Home Buyer Tax Credit for reimbursement of a portion of the annual mortgage interest payments.
Regular Down Payment Assistance Program for a down payment loan of up to $10.000.
Knowing about national and Kentucky state loan programs to help buy a home is a good start; now it’s time to dig into the details. For specifics, visit the Kentucky Housing Corp. website. There you’ll find information about all the loan programs, including eligibility requirements, how to enroll in home buyer counseling and a list of approved lenders in your county.
There are max income limits and max loan amounts and max purchase price limits.
1 - 
Email - kentuckyloan@gmail.com
Email - kentuckyloan@gmail.com 2. 
Call/Text - 502-905-3708
Call/Text - 502-905-3708Joel Lobb
Mortgage Loan Officer - Expert on Kentucky Mortgage Loans
Website: www.mylouisvillekentuckymortgage.com
Address: 911 Barret Ave., Louisville, KY 40204
Evo Mortgage
Company NMLS# 1738461
Personal NMLS# 57916
For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.
