Zero Down Kentucky Mortgages

ZERO DOWN HOME LOANS IN KENTUCKY





There are a few programs that feature zero down payment in Kentucky for Home buyers: USDA and VA. USDA are typically for rural areas, and VA is for military veterans. Lastly Kentucky Housing with the Down Payment Assistance Program of $10,000 and the Kentucky Welcome Grant  $20,000 Welcome Home Grant.  


I’ve included some info on each for you on your home journey to buy a home in Kentucky!


Kentucky USDA Loans 


USDA loans are backed through the Rural Housing Division of the U.S. Dept. of Agriculture. They are available to millions of eligible primary home buyers with low to moderate incomes or scarce funds for down payments.

Features, benefits and things you need to know:

Zero Down - No down payment is required for Kentucky USDA loans. Thirty-year, fixed-rate loans with no pre-payment penalty are the norm. Rates are very competitive with conventional loans.

Eligible Property - These loans are limited to "rural" areas, though you might be surprised by some of the suburbs of major metropolitan areas that qualify as rural

Homes should be modest in size and cost and constructed per local codes and regulations.

Eligible Borrowers - Funds are available for qualified borrowers who earn up to 115% of the area median income.

 Even candidates who have had past credit issues with late pays, bankruptcies or foreclosure may be eligible. Borrower's income must support the proposed payments and meet the program requirements for approval. Primary occupancy is required. This program is not for investment properties.

Benefits - Minimum cash is needed to close. The USDA Guarantee Fee and some eligible closing costs may be financed. Gift money, grant money and seller contributions are allowed.

Kentucky VA Loans

Veteran's Administration or "VA" loans are available for active, non-active and retired Army, Air Force, Marine, Navy, National Guard and Coast Guard vets who meet the established service requirements. 
  • 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 
To determine your ability to participate in this program, just provide your Certificate of Eligibility (COE) or your Discharge/Separation form (DD214). If you do not have your COE, you can request one using form 26-1880.

Kentucky Down Payment Assistance Programs


From first-time buyers to current homeowners, many state, county and local housing agencies offer affordable loan programs with Down Payment Assistance (DPA), subject to availability of funds and credit qualifying. 

Down payment assistance can vary with single products or sometimes can be a combination of products such as Mortgage Credit Certificates (MCC), Grants, DPA’s along with closing cost assistance and low interest rates and fees that can help individuals and families become successful homeowners.

All borrowers must qualify for an underlying mortgage product according to the Housing Finance Agency authority (FHA, VA, USDA or Conventional). Housing loan programs are then layered on top to provide additional benefits. If eligible, the borrower can also add a down payment and closing cost assistance to their loan according to individual program guidelines.

What state are you in? I assume Kentucky. I will help you gather more information if this is something you want to look into. The general terms are below:

KHC recognizes that down payments, closing costs, and prep​aids 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.


how to buy a house in kentucky with zero down


Kentucky Welcome Home Buyer Eligibility
A homebuyer would be eligible for the Kentucky Welcome Home grant if all of the following guidelines are met:

  • 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.
Kentucky Property Eligibility
The Kentucky Welcome Home grant is available for various property types:

  • The property will be the homebuyer’s primary residence;
  • The property is a single family, townhome, condominium, duplex, multi-unit (up to four family units) or a qualified manufactured home. (Manufactured homes may be eligible if they are taxed as real estate and affixed to a permanent foundation); and,
  • The property is subject to a legally enforceable five-year retention mechanism, included in the Deed or as a Declaration of Restrictive Covenants to the Deed, requiring the FHLB Cincinnati be given notice of any refinancing, sale, foreclosure, deed in-lieu of foreclosure, or change in ownership during the five year retention period.
Beginning March 1, 2024, the Federal Home Loan Bank of Cincinnati offers grants of up to $25,000 for honorably discharged veterans, surviving spouses of military personnel, and active duty military homebuyers and up to $20,000 for all other homebuyers to assist with down payment and closing costs for income eligible homebuyers through the Welcome Home Program. Who are Eligible Homebuyers?
A homebuyer would be eligible for the Welcome Home grant if all of the following guidelines are met: The total income for all occupants who will reside in the home is at or below 80 percent of the Mortgage Revenue Bond limit for the county and state where the property is located –


In Jefferson County 1 or 2 person families can make up to $71,760. 3-4 persons in the household cap at $82,584. The limits are slightly higher or lower in the surrounding counties like Bullitt, Henry, Oldham, Spencer, Hardin, Meade, Nelson and Spencer Counites. see limits below



2024 Welcome Home Program for Kentucky Home Buyers


– Kentucky First-Time Homebuyer Loan Programs for FHA, VA, KHC and USDA

2024 Income Limits Kentucky Welcome Program Below:


Use the 80% limits for the Welcome Home Program

 100% limits80% limits** 
 1-2 Persons3 + Persons1-2 Persons3 + Persons
Adair$               78,600$               90,390$             62,880$               72,312
Allen$               78,600$               91,420$             62,880$               73,136
Anderson$               86,270$               99,210$             69,016$               79,368
Ballard$               80,400$               93,800$             64,320$               75,040
Barren$               78,600$               90,390$             62,880$               72,312
Bath$               94,320$             110,040$             75,456$               88,032
Bell$               94,320$             110,040$             75,456$               88,032
Boone$             101,100$             116,265$             80,880$               93,012
Bourbon$               89,300$             102,695$             71,440$               82,156
Boyd$               83,040$               96,880$             66,432$               77,504
Boyle$               80,760$               94,220$             64,608$               75,376
Bracken$             101,100$             116,265$             80,880$               93,012
Breathitt$               94,320$             110,040$             75,456$               88,032
Breckinridge$               87,410$             100,521$             69,928$               80,417
Bullitt$               89,700$             103,155$             71,760$               82,524
Butler$               78,600$               91,420$             62,880$               73,136
Caldwell$               84,480$               98,560$             67,584$               78,848
Calloway$               82,560$               96,320$             66,048$               77,056
Campbell$             101,100$             116,265$             80,880$               93,012
Carlisle$               78,600$               90,860$             62,880$               72,688
Carroll$               78,600$               90,390$             62,880$               72,312
Carter$               94,320$             110,040$             75,456$               88,032
Casey$               94,320$             110,040$             75,456$               88,032
Christian$               87,590$             100,728$             70,072$               80,582
Clark$               89,300$             102,695$             71,440$               82,156
Clay$               94,320$             110,040$             75,456$               88,032
Clinton$               94,320$             110,040$             75,456$               88,032
Crittenden$               83,760$               97,720$             67,008$               78,176
Cumberland$               78,600$               90,390$             62,880$               72,312
Daviess$               86,950$               99,992$             69,560$               79,994
Edmonson$               86,650$               99,647$             69,320$               79,718
Elliott$               94,320$             110,040$             75,456$               88,032
  County100% limits80% limits
1-2 Persons3 + Persons1-2 Persons3 + Persons
Estill$             94,320$           110,040$             75,456$             88,032
Fayette$             89,300$           102,695$             71,440$             82,156
Fleming$             78,600$             90,390$             62,880$             72,312
Floyd$             94,320$           110,040$             75,456$             88,032
Franklin$             85,430$             98,244$             68,344$             78,595
Fulton$             78,600$             90,390$             62,880$             72,312
Gallatin$           101,100$           116,265$             80,880$             93,012
Garrard$             87,210$           100,291$             69,768$             80,233
Grant$             79,560$             92,820$             63,648$             74,256
Graves$             83,160$             97,020$             66,528$             77,616
Grayson$             78,600$             90,390$             62,880$             72,312
Green$             78,600$             90,390$             62,880$             72,312
Greenup$             83,040$             96,880$             66,432$             77,504
Hancock$             86,950$             99,992$             69,560$             79,994
Hardin$             86,750$             99,762$             69,400$             79,810
Harlan$             94,320$           110,040$             75,456$             88,032
Harrison$             87,250$           100,337$             69,800$             80,270
Hart$             78,600$             90,390$             62,880$             72,312
Henderson$             87,300$           100,395$             69,840$             80,316
Henry$             89,700$           103,155$             71,760$             82,524
Hickman$             79,560$             92,820$             63,648$             74,256
Hopkins$             80,640$             94,080$             64,512$             75,264
Jackson$             94,320$           110,040$             75,456$             88,032
Jefferson$             89,700$           103,155$             71,760$             82,524
Jessamine$             89,300$           102,695$             71,440$             82,156
Johnson$             94,320$           110,040$             75,456$             88,032
Kenton$           101,100$           116,265$             80,880$             93,012
Knott$             94,320$           110,040$             75,456$             88,032
Knox$             94,320$           110,040$             75,456$             88,032
Larue$             86,750$             99,762$             69,400$             79,810
Laurel$             78,600$             90,390$             62,880$             72,312
Lawrence$             94,320$           110,040$             75,456$             88,032
Lee$             94,320$           110,040$             75,456$             88,032
Leslie$             94,320$           110,040$             75,456$             88,032
Letcher$             94,320$           110,040$             75,456$             88,032
Lewis$             94,320$           110,040$             75,456$             88,032
Lincoln$             78,600$             90,390$             62,880$             72,312
Livingston$             82,320$             96,040$             65,856$             76,832
Logan$             80,760$             94,220$             64,608$             75,376
Lyon$             87,310$           100,406$             69,848$             80,325
  County100% limits80% limits
1-2 Persons3 + Persons1-2 Persons3 + Persons
McCracken$             87,130$           100,199$               69,704$             80,159
McCreary$             94,320$           110,040$               75,456$             88,032
McLean$             86,950$               99,992$             69,560$             79,994
Madison$             86,910$               99,946$             69,528$             79,957
Magoffin$             94,320$           110,040$               75,456$             88,032
Marion$               80,760$               94,220$             64,608$             75,376
Marshall$               86,030$               98,934$             68,824$             79,147
Martin$               94,320$           110,040$               75,456$             88,032
Mason$             85,920$           100,240$               68,736$             80,192
Meade$               85,790$               98,658$             68,632$             78,926
Menifee$               94,320$           110,040$               75,456$             88,032
Mercer$               86,730$               99,739$             69,384$             79,791
Metcalfe$               94,320$           110,040$               75,456$             88,032
Monroe$               78,600$               90,390$             62,880$             72,312
Montgomery$             78,600$               91,140$             62,880$             72,912
Morgan$               94,320$           110,040$               75,456$             88,032
Muhlenberg$             78,600$               91,700$             62,880$             73,360
Nelson$               85,170$               97,945$             68,136$             78,356
Nicholas$               78,600$               90,860$             62,880$             72,688
Ohio$               78,600$               90,390$             62,880$             72,312
Oldham$             89,700$           103,155$               71,760$             82,524
Owen$               78,600$               91,700$             62,880$             73,360
Owsley$               94,320$           110,040$               75,456$             88,032
Pendleton$           101,100$           116,265$               80,880$             93,012
Perry$               94,320$           110,040$               75,456$             88,032
Pike$               94,320$           110,040$               75,456$             88,032
Powell$               94,320$           110,040$               75,456$             88,032
Pulaski$             78,600$               90,390$             62,880$             72,312
Robertson$             94,320$           110,040$               75,456$             88,032
Rockcastle$             94,320$           110,040$               75,456$             88,032
Rowan$             94,320$           110,040$               75,456$             88,032
Russell$             78,600$               90,860$             62,880$             72,688
Scott$               89,300$           102,695$               71,440$             82,156
Shelby$               92,700$           106,605$               74,160$             85,284
Simpson$             82,920$               96,740$             66,336$             77,392
Spencer$               89,700$           103,155$               71,760$             82,524
Taylor$             78,600$               90,390$             62,880$             72,312
Todd$             78,600$               90,390$             62,880$             72,312
Trigg$               87,590$           100,728$               70,072$             80,582
Trimble$               86,770$               99,785$             69,416$             79,828
 100% limits80% limits
    
Union$             78,600$             91,420$             62,880$             73,136
Warren$             86,650$             99,647$             69,320$             79,718
Washington$             87,090$           100,153$             69,672$             80,122
Wayne$             94,320$           110,040$             75,456$             88,032
Webster$             78,600$             90,390$             62,880$             72,312
Whitley$             94,320$           110,040$             75,456$             88,032
Wolfe$             94,320$           110,040$             75,456$             88,032
Woodford$             89,300$           102,695$             71,440$             82,156
Home Buyer Eligibility

A homebuyer would be eligible for the Welcome Home grant if all of the following guidelines are met:


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.

Property Eligibility

The Welcome Home grant is available for various property types:


The property will be the homebuyer’s primary residence;
The property is a single family, townhome, condominium, duplex, multi-unit (up to four family units) or a qualified manufactured home. (Manufactured homes may be eligible if they are taxed as real estate and affixed to a permanent foundation); and,
The property is subject to a legally enforceable five-year retention mechanism, included in the Deed or as a Declaration of Restrictive Covenants to the Deed, requiring the FHLB Cincinnati be given notice of any refinancing, sale, foreclosure, deed in-lieu of foreclosure, or change in ownership during the five year retention period.



For More information, please visit the Federal Home Loan Bank of Cincinnati website at www.fhlbcin.com.





Kentucky First time home buyers can do a conventional loan with just 3% down.  If you are not a first-time home buyer, you still may be able to qualify for the 3% down if you are within income limits for the area you are purchasing. 620 minimum credit score required.

The Kentucky USDA loan is a program designed to finance properties located in rural areas. One of the goals with this United States Department of Agriculture program is to secure a home loan in areas where conventional loans might not approve the area simply due to a lack of comparable sales in the area. Every 10 years the United States performs its census, these areas are identified by the USDA. This is a zero-down program. The last census was taken in 2010, more than eight years ago so many areas that were deemed rural in 2010 still qualify even though the area where the property is located looks anything but a rural setting. Household income is limited to 115% of the median income for the area. 581 Minimum Credit Score Required.

Kentucky VA loans are the most common of zero down programs and are not restricted by location. They are however restricted to veterans, active-duty personnel with at least 181 days of service, National Guard and Armed Forces Reserve members with at least six years of service and unmarried surviving spouses of those who died while serving or as a result of a service-related injury. In addition, this program requires no monthly mortgage insurance payment like other government-backed loans do. No minimum credit score required.


I hope this gives you some useful input to help guide your decision making. Give me a call if you have more specific questions! Thanks so much ๐Ÿ˜Š

Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 

Text/call 502-905-3708

If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.
All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.