Zero Down Kentucky Mortgage Loans — Louisville & Statewide
Yes, 0% down is possible in Kentucky. Compare USDA Rural Housing and VA home loans for true zero down options, plus Kentucky Housing Corporation (KHC) assistance and FHA + DAP combos to reduce closing costs.
USDA 0% Down (Rural Housing) — Kentucky
- Down payment: 0% (eligible rural areas only).
- Income limits: County/household caps apply.
- Property: Primary residence; must pass USDA appraisal/condition standards.
- Credit: AUS-driven approvals; 620+ often competitive.
- Best for: Buyers outside dense city cores who want the lowest upfront cash.
Start here if your home search includes counties/suburbs that map as USDA-eligible.
VA 0% Down — Eligible Veterans & Service Members
- Down payment: 0% up to county loan limits (higher with full entitlement).
- Mortgage insurance: No monthly MI; funding fee may apply (often waived for disability).
- Credit: Flexible AUS approvals; evaluate residual income.
- Best for: Eligible veterans, active duty, and some surviving spouses.
Close the Gap: KHC Assistance & FHA + DAP
- KHC DPA: Assistance typically up to $10,000–$12,500 toward down payment/closing costs (funding varies).
- FHA + DAP: Use KHC to cover FHA’s 3.5% down + part of closing costs.
- Stacking: Pair with seller credits and lender credits to minimize cash to close.
Zero Down vs. Low Down: What to Expect
| Program | Down | MI/Guarantee | Notes |
|---|---|---|---|
| USDA | 0% | USDA fee + monthly fee | Income & location limits apply |
| VA | 0% | No monthly MI | Funding fee may be waived |
| FHA + KHC | ~0–3.5% | Monthly MI | KHC reduces cash to close |
| Conventional First-Time | 3%+ | PMI (reduced options) | Strong credit helps pricing |
How to Apply for 0% Down in Kentucky
- Quick eligibility check — we verify USDA map, VA eligibility, and KHC options.
- Pre-approval — AUS findings (DU/LPA/GUS) with your income, assets, and credit.
- Lock & disclosures — e-sign; we order appraisal, title, and verifications.
- Clear-to-close — close with 0% down (USDA/VA) or minimal funds (KHC/FHA + credits).
Zero Down Kentucky Mortgage — FAQs
Who qualifies for zero down in Kentucky?
USDA requires eligible property locations and household income within county limits; VA is for eligible veterans/service members. Many buyers in Louisville’s surrounding counties qualify; we confirm in minutes.
Can I combine KHC assistance with USDA or VA?
You can often use KHC to offset closing costs with USDA and VA. We’ll structure your file to minimize cash to close using seller and lender credits where allowed.
What credit score do I need?
USDA/VA approvals are AUS-based; scores of 620+ are frequently competitive. Overall file strength (income stability, payment history, reserves) matters.
Are there income or location limits?
USDA has both; VA does not have location limits. We check the USDA map and county income caps during pre-approval.
How fast can I close?
With complete docs, many 0% down loans close on a standard timeline similar to FHA/conventional. Appraisal and title turn times drive the calendar.
First-Time Homebuyers in Kentucky: Buy Your Home with $0 Down!
Kentucky Zero Down Loan Options
Kentucky USDA Loans
Features, benefits and things you need to know:
Kentucky VA Loans
- 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
Kentucky Down Payment Assistance Programs
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
- 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!
Senior Loan Officer
Text/call 502-905-3708
