Kentucky First-time Home Buyer Programs

First-Time Home Buyers in Kentucky Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA Published • Sep 12 First-time home buyers in Kentucky. Joel Lobb Joel Lobb: A Guide for First-Time Home Buyers in




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


620 credit score or higher needed for this loan program. 4 years removed from bankruptcy minimum sometime longer. Private mortgage insurance required for over 80% loan to value on a refinance or down payments less than 20%. Tighter debt to income requirements with max backend-ratio usually not over 45% with less than 20% down payment. Easier on properties to qualify if they have deferred maintenance or need some fixing up to pass Government standards like FHA, VA, USDA loans. Down payment requirements are as little as 3% down payment. Better rates and lower mortgage insurance with a larger down payment and pmi is not for life of loan. 

This is for stronger borrowers with good credit (above 680 or 720) and at least 3-5% down payment with no foreclosures or bankruptcies in he last 4-7 years. Can go higher on the loan amount too versus FHA. Max loan in Kentucky for 2024 for conventional loans is $766,550


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 2024 is $498,257 


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



2024 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.


For Kentucky first-time homebuyers, there’s a wide variety of loan programs and down payment assistance options to consider. Whether you're a veteran interested in a VA loan, a rural buyer looking at USDA loans, or a buyer needing down payment assistance through the KHC program, there’s a loan tailored to your unique needs. With the right information, Kentucky homebuyers can choose the loan program that fits their financial goals and helps them achieve homeownership affordably.








1 - 📅 Email - kentuckyloan@gmail.com 
2.  📞 Call/Text - 502-905-3708

Joel 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.



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