Whether you’re buying your first home, using down payment assistance, or rebuilding credit — there’s a program that fits. Compare them side by side before you commit.
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How to Get Approved for a Mortgage Loan in Kentucky Thank you for visiting. I hope you find this website both informative and empowering as you explore your Kentucky mortgage options. My goal is simple: help you understand what mortgage underwriters actually review, help you avoid preventable approval issues, and help you choose the right loan program for your situation. I specialize in assisting Kentucky first-time homebuyers with FHA, VA, USDA Rural Housing, KHC down payment assistance , and Fannie Mae conventional mortgage loans . I proudly serve all 120 counties in Kentucky. FHA Loans in Kentucky VA Loans in Kentucky USDA Rural Housing Loans in Kentucky Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I've had the privilege of helping more than 1,300 Kentucky families buy a home or refinance their current mortgage. Whether you are a first-time buyer, a veteran, a USDA buyer, a credit-challenged ...
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Getting a Kentucky Mortgage in 3 Simple Steps
No confusing paperwork trails. No surprise fees. A clear path from first call to keys in hand.
01
💬 Get Pre-Qualified
Free application review with same-day answers. We look at your credit, income, and goals — no cost, no obligation, no pressure.
02
📋 Compare Your Options
FHA vs. Conventional vs. USDA vs. KHC — run side by side with your actual numbers so you see the real payment before you commit.
03
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Guided from contract to closing — appraisal, title, and underwriting coordinated so you always know what happens next.
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Hi, I’m Joel Lobb — a Kentucky dad who’s spent 20+ years helping families across all 120 counties buy their first home. When you call, you get me — not a phone tree. Questions on a Saturday morning? I answer.
1,300+ Kentucky families have trusted me with their mortgage — from Louisville to Lexington to the smallest towns in the state. Free application reviews, same-day pre-approvals, and honest answers about what you actually qualify for.
Kentucky New Construction Loans with 3.5% Down Payment Assistance | Louisville Builder Financing
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Kentucky New Construction Loans with 3.5% Down Payment Assistance
By Joel Lobb, Mortgage Broker – FHA, VA, USDA, KHC, Fannie Mae
NMLS #57916 | Company NMLS #1738461
3.5% Down Payment Assistance for Completed New Construction Homes in Kentucky.
3.5% Down Payment Assistance for Completed Construction Homes
If you are building or buying a completed new construction home in Kentucky, coming up with the cash for
down payment and closing costs can slow everything down. This 3.5% down payment assistance (DPA) program
pairs a competitive 5/1 ARM first mortgage with a repayable 3.5% DPA second to help
buyers close with less money out of pocket.
The goal is simple: make Kentucky new construction loans more affordable for buyers
while giving builders a clean way to move inventory without cutting price. For buyers who want to compare this
to other Kentucky down payment assistance options through KHC,
this program can be part of a larger strategy, not a one-size-fits-all answer.
How This Kentucky New Construction DPA Program Works
The structure is straightforward. Buyers receive:
A 5/1 ARM first mortgage at a competitive rate.
A 3.5% down payment assistance second lien that is repayable.
The assistance can be used toward several upfront costs that usually keep buyers on the sidelines. When we look
at your file, we also compare this structure to
Kentucky USDA zero-down home loans
and KHC loan programs
so you can see which option actually delivers the best fit.
What the 3.5% Down Payment Assistance Can Be Used For
Down payment on a completed new construction home.
Prepaid items such as taxes and insurance.
Closing costs charged by the lender, title company, and other parties.
Temporary or permanent interest rate buydowns to lower the monthly payment.
Used correctly, this Kentucky down payment assistance program can reduce the buyer’s cash to close and
create a more comfortable payment from day one. If you are also researching your
credit score needed for a Kentucky mortgage,
it’s important to know that both the first mortgage and DPA second have minimum credit and underwriting guidelines.
Benefits for Kentucky Homebuyers
Buyers looking online for Kentucky new construction loans are usually focused on three
things: monthly payment, cash to close, and long-term flexibility. This 3.5% DPA option helps in all three areas.
Lower cash to close: Assistance can cover part of the down payment and closing costs.
Payment relief: Funds can be structured toward rate buydowns to help manage the payment in the early years.
Flexible structure: Buyers can combine this with other incentives, gifts, or seller credits where allowed.
Benefits for Builders and Developers in Louisville and Across Kentucky
For builders, this program is a clean Louisville builder financing solution that helps
buyers say “yes” without forcing deep price cuts or heavy concessions.
No price reduction required: Use financing instead of discounting the list price.
Move standing inventory: Turn qualified traffic into real contracts.
Helps more buyers qualify: By assisting with upfront costs, more buyers can make the numbers work.
Works with completed construction: Ideal for finished homes that are ready to close.
If you are a builder or listing agent with completed homes in Louisville, Lexington, Bowling Green, or other
Kentucky markets, this down payment assistance option can become part of your standard financing toolkit alongside
USDA, FHA, VA, and KHC down payment assistance.
Who Is a Good Fit for This Kentucky New Construction Program?
Buyers purchasing a completed new construction home in Kentucky.
Clients who have stable income but limited cash for down payment and closing costs.
First-time buyers and repeat buyers who want to preserve savings.
Builders with move-in ready homes who want a structured financing solution for their buyers.
Full underwriting guidelines will apply, including credit score, debt-to-income, income documentation, and
property eligibility. Not all borrowers or properties will qualify. If you’re unsure whether your current profile fits,
review the credit score and approval guide for Kentucky mortgages
and then reach out for a tailored scenario.
How the 5/1 ARM Works with the 3.5% DPA
The first mortgage is a 5/1 ARM, which means the interest rate is fixed for the first
five years and can adjust annually after that based on the terms of the note.
Years 1–5: Fixed introductory rate, often lower than a comparable 30-year fixed rate.
After year 5: Rate can adjust annually up or down within specified caps.
DPA second: The 3.5% assistance is structured as a second lien that is repayable based on program terms.
For many buyers, this structure can be a smart option if they plan to refinance in the future, move, or expect
income growth before the first adjustment period. We’ll compare this alongside fixed-rate products, USDA, KHC,
and other Kentucky down payment assistance programs
to make sure the ARM structure actually makes sense for your timeline.
Comparing This Program to Other Kentucky Down Payment Assistance Options
I have helped Kentucky homebuyers since 2001 with FHA, VA, USDA, KHC, and conventional mortgage programs.
My focus is on providing clear, honest guidance so you understand your options and choose the loan that fits
your budget and long-term plan.
Whether you are a first-time buyer, a move-up buyer, or a builder looking for reliable
Louisville builder financing support, I am available to walk you through every step. That includes reviewing
USDA Rural Housing loans,
KHC down payment assistance,
and other structures side-by-side with this new construction DPA option.
Every buyer and property are different. The best way to see if this Kentucky new construction DPA program is
right for you is to run a custom quote based on your credit, income, and the specific home you are building or buying.
Next Step: Call or text 502-905-3708, or use the contact form on my website to get started.
Important Disclosures
This is not a commitment to lend or an offer to extend credit. All loans are subject to credit approval,
underwriting guidelines, and program availability. Interest rates, program terms, and eligibility guidelines
may change without notice. Not all borrowers will qualify for all programs described. The 5/1 ARM and 3.5% down
payment assistance program described on this page is for completed new construction homes only and may not be
available in all areas of Kentucky.
Please contact Joel Lobb for the most current information and to receive a customized quote based on your
specific situation.
How to Get Approved for a Mortgage Loan in Kentucky Thank you for visiting. I hope you find this website both informative and empowering as you explore your Kentucky mortgage options. My goal is simple: help you understand what mortgage underwriters actually review, help you avoid preventable approval issues, and help you choose the right loan program for your situation. I specialize in assisting Kentucky first-time homebuyers with FHA, VA, USDA Rural Housing, KHC down payment assistance , and Fannie Mae conventional mortgage loans . I proudly serve all 120 counties in Kentucky. FHA Loans in Kentucky VA Loans in Kentucky USDA Rural Housing Loans in Kentucky Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I've had the privilege of helping more than 1,300 Kentucky families buy a home or refinance their current mortgage. Whether you are a first-time buyer, a veteran, a USDA buyer, a credit-challenged ...
Kentucky Welcome Home Grant 2026 Update: Program Closed and Out of Funds May 2026 update for Kentucky homebuyers: the 2026 Welcome Home Grant is now closed for new reservations. This does not mean you cannot buy a home. It means you need to pivot quickly to other Kentucky mortgage and down payment assistance options. May 2026 Update Welcome Home Grant Closed KHC DAP Still Available USDA, VA, FHA Options Important Update: The 2026 Welcome Home Grant Is Closed The 2026 Welcome Home Grant through FHLB Cincinnati is now closed and out of funds for new reservations . If your lender did not reserve the money before the program closed, you should not build your home purchase plan around receiving this grant for 2026. The hard truth: this grant was popular, limited, and first-come, first-served. Once the available funds were reserved, the program closed. Good News: Kentucky Buyers Still Have Options ...
Using a Pastor / Minister’s housing allowance to qualify for a mortgage Member of the Clergy Income for A Mortgage Loan Approval Where a borrower is a member of the clergy, all of the following will be required to document income: 1) Most recent year full tax return, 2) Most recent pay stubs, 3) W-2s, 4) Contract from the church to determine benefits. The IRS looks at the housing allowance portion of a pastor’s income as an exclusion from income. Therefore the housing allowance is not reported on the personal tax returns as taxable income. Even though it is not reported on the tax returns, a pastor’s housing allowance can be used in qualifying for a mortgage loan to purchase or refinance a home. As long as we can document the receipt of the housing income through a signed letter from the church/employer stating the actual breakdown of the pay and by providing copies of the checks received, we should be able to count the housing allowance as incom...
