How to Buy a HUD Home in Kentucky for Just $100 Down: Complete 2025 Guide
Buying a home in Kentucky just became more affordable than ever. With the FHA $100 Down Payment Program, eligible buyers can purchase HUD-owned homes with only $100 down — a fraction of the standard 3.5% FHA down payment. This guide walks you through everything you need to know to make it happen in 2025.
What Are HUD Homes and Why Are They So Affordable?
HUD homes are properties previously financed through FHA loans that have gone through foreclosure. The U.S. Department of Housing and Urban Development (HUD) takes ownership of these homes and sells them to the public through registered agents and contractors.
These homes are often priced below market value to encourage homeownership and stabilize neighborhoods. Kentucky has a wide selection of HUD homes across the state — from Louisville and Lexington to Bowling Green and Elizabethtown.
Understanding the FHA $100 Down Payment Program
This special program allows Kentucky buyers to purchase eligible HUD-owned homes with just $100 down when using FHA financing. It’s designed to reduce barriers for homeownership and help families build equity faster.
- Minimum 580 credit score (500–579 may qualify with 10% down)
- Fixed-rate FHA financing available
- Must meet FHA manual underwriting guidelines
Who Qualifies for the Program?
To qualify for the $100 down payment incentive, buyers must:
- Be owner-occupants (must live in the home as their primary residence).
- Submit offers during the exclusive owner-occupant period (typically first 30 days of listing).
- Meet FHA credit, income, and debt-to-income ratio standards.
- Work with a HUD-registered real estate agent and FHA-approved lender.
The 5-Step Process to Buy a HUD Home in Kentucky
- Search for Homes: Visit HUDHomeStore.com, select Kentucky, and filter for “$100 Down Eligible.”
- Get Pre-Approved: Apply with an FHA-approved lender to receive your pre-approval letter.
- Submit an Offer: Your HUD agent submits your bid online with your pre-approval attached.
- HUD Review: HUD reviews bids and prioritizes owner-occupant buyers.
- Close & Move In: Bring your $100 down payment, finalize closing, and get your keys.
Closing Costs and Seller Concessions
Typical closing costs range between 2%–5% of the home price. HUD may pay up to 3% of your closing costs. You can also roll some costs into your mortgage depending on FHA eligibility and lender approval.
Condition of HUD Homes
HUD homes are sold “as-is.” Always order a professional home inspection before closing. FHA appraisers will confirm the property meets minimum safety and structural requirements before loan approval.
Why This Program Works So Well in Kentucky
Kentucky’s moderate home prices, stable economy, and low property taxes make the FHA $100 Down Program ideal for first-time buyers and families wanting to stop renting and start building wealth. Many buyers pair it with Kentucky Housing Corporation (KHC) down payment assistance for added support.
Ready to Get Started?
Call/Text 502-905-3708 or visit
MyLouisvilleKentuckyMortgage.com
Joel Lobb – Kentucky Mortgage Loan Officer, NMLS #57916 | EVO Mortgage NMLS #1738461
Frequently Asked Questions
Can I use the $100 down program if I’ve owned a home before?
Yes. The program is open to any qualifying buyer who intends to occupy the home as a primary residence.
Can I rent out the home after closing?
No. You must live in the home for at least one year before renting it out.
What if the home needs repairs?
HUD homes are sold as-is. You can finance repairs through an FHA 203(k) Renovation Loan.
Why Work With Me?
Local Expertise: I know the ins and outs of Kentucky’s housing market and loan programs.
Fast Approvals: I offer free mortgage applications with same-day approvals to keep the process moving quickly.
Customized Loan Solutions: Whether you’re buying a home or refinancing, I’ll find the right loan program to fit your needs.
Personalized Service: I treat every client like family, ensuring you’re supported and informed throughout the process.
About My Website
Visit my website for a wealth of resources tailored to Kentucky homebuyers. You’ll find:
Step-by-step guides for first-time homebuyers.
Information on loan programs like FHA, VA, USDA, and KHC.
Tools to help you calculate potential payments and affordability.
Blog posts with tips and updates on the Kentucky housing market.
A secure portal to start your loan application and upload documents.
Please Note: My website is not endorsed by the FHA, VA, USDA, or any government agency. It is an independent platform created to educate and assist homebuyers with expert advice and accessible tools.