Kentucky First-Time Homebuyer Programs — 2025
Your concise visual guide to zero-down and down-payment assistance programs in Kentucky
USDA Rural Housing
100% financing for eligible rural Kentucky properties
Down Payment
$0
100% financing when property and income meet eligibility
Credit Score
640+
Manual underwrite options can go lower (case-specific)
Income Limit
$119,850 (example)
Limits vary by county and household size — verify per county
Location
Rural
Property must meet USDA definition of rural
VA Loans
Zero down for veterans, active-duty, and qualifying service members
Down Payment
$0
No required down payment for eligible veterans/service members
PMI
None
No monthly mortgage insurance (funding fee may apply)
Loan Limit (example)
$806,000
Loan limits vary; confirm current limit for county and year
Eligibility
Veterans / Military
Requires valid COE (Certificate of Eligibility)
FHA Loans
Flexible underwriting and low down payment
Down Payment
3.5%
Minimum with standard FHA underwriting
Credit Score
580+
500+ possible with larger down payment; lender overlays may apply
Loan Limit
$524,225
Conforming FHA limits vary by county
Gift Funds
Allowed
Gifts for down payment accepted per FHA rules
KHC Down Payment Assistance
Kentucky Housing Corporation assistance and DPA programs
Standard DPA
$10,000 (typical)
Program availability and amounts vary by funding cycles
Military Grant
$25,000 (example)
Eligibility may exist for veterans — verify current program details
Property Types
Single-family, condos
Subject to KHC property eligibility rules
Repayment
Second mortgage / term varies
Check program terms; some DPA is forgivable after time
Quick Program Comparison
| Program | Down Payment | Credit Score | Loan Limit | Best For |
|---|---|---|---|---|
| USDA Rural | 640+ | No federally fixed limit (county-dependent) | Rural buyers | |
| VA Loans | 620+ | $806,000 (example) | Military / Veterans | |
| FHA | 3.5% | 580+ | $524,225 (example) | First-time buyers / low down |
| Conventional | 3–5% | 620+ | $806,000 (conforming example) | Strong credit borrowers |
| KHC Assistance | Varies | Combined loan limits apply | All buyers |
Your Home Buying Journey
1
Get Pre-Approved
Contact Joel for a free mortgage application and a same-day pre-approval estimate.
2
Choose Your Program
We evaluate underwriting, location, DPA, and borrower profile to match the right loan.
3
Apply for Down Payment Assistance
KHC and local funds require timely application and documentation; availability may vary.
4
Complete Homebuyer Education
Many programs require approved counseling or education — enroll early to avoid delays.
5
Find Your Home
House-hunting with an agent while pre-approval is active keeps your offer competitive.
6
Close on Your Home
Final signing, funding, and keys. Coordinate with title and seller for a smooth close.
Ready to start? Get a same-day pre-approval
Joel Lobb — EVO Mortgage. Over 20 years of mortgage experience helping Kentucky families.
This page is for informational purposes and does not constitute loan approval. Program availability, limits, and terms change — contact us to confirm current eligibility and funding.
