🏡 1% Down Payment Kentucky Mortgage Program
First-Time Homebuyers: Get Up to $7,000 in Lender Assistance (2025 Guide)
💸 Example: Buy a $250,000 home with only $2,500 down!
The lender covers $5,000, reducing your out-of-pocket expenses significantly.
💡 What Is the 1% Down Mortgage Program?
If you're a first-time homebuyer in Kentucky, there's great news—you may be eligible to purchase a home with just 1% down and receive up to 2% or $7,000 in down payment assistance toward your purchase.
This program is specifically designed to reduce upfront costs and help moderate-income families make the leap into homeownership faster and more affordably.
| Component | Details |
|---|---|
| Buyer Contribution | 1% of Purchase Price |
| Program Assistance | Up to 2% or $7,000 |
| Loan Type | Conventional (Fixed Rate) |
| PMI | May apply if under 20% down |
| Use of Funds | Down payment, closing cost offset |
✅ Who Qualifies?
To qualify for this low down payment option in Kentucky, here are the typical requirements:
- 620+ FICO Score required (680+ preferred for better pricing)
- No recent bankruptcies or foreclosures in past 2–3 years
- Moderate-income households (usually ≤ 80–100% of the area median income)
- Income caps vary by county and household size
- W2, salaried, and hourly income acceptable
- Self-employed allowed with documentation
- Primary residence only
- Single-family homes, townhomes, select condos
- Must be located in Kentucky
- Property must meet standard appraisal requirements
- First-time buyer status (or not owning in past 3 years)
- Completion of homebuyer education course may be required
- Not available for second homes or investment properties
❓ Frequently Asked Questions
🏠 What if I have student loans or other debt?
Yes, you can still qualify. We look at your debt-to-income (DTI) ratio, which includes student loans, car payments, credit cards, and other obligations. Some loan programs allow income-driven repayment plans (IDR) or deferred student loans to be excluded or calculated favorably. Every file is unique — we’ll assess your full financial picture, not just one number.
💝 Can I use gift funds for the 1% down payment?
Absolutely. Gift funds from a family member or qualified donor can be used for the 1% down payment, closing costs, or even reserves if needed. We’ll just need a gift letter and proof of transfer — we’ll walk you through it step by step.
⏰ How long does the approval process take?
You can get pre-approved the same day once your documents are in. From contract to closing, the typical purchase takes 21–30 days, depending on the program, appraisal, and underwriting. We move fast and keep you updated at every milestone.
🗺️ What areas of Kentucky are eligible?
The 1% down program is available statewide in Kentucky — from Louisville to Lexington, and everywhere in between. Whether you're buying in a metro area or rural county, we’ll match the right loan program to your location and eligibility.
📊 What credit score do I really need?
Most 1% down programs require a minimum credit score of 620. However, higher scores (680+) may help you qualify for better terms. We offer free credit evaluations and advice on how to boost your score if needed.
🏦 How does the 1% down program compare to FHA loans?
The 1% down loan is often more competitive for buyers with good credit but limited savings. Here's a quick comparison:
| Feature | 1% Down Program | FHA Loan |
|---|---|---|
| Down Payment | 1% (with 2% lender grant) | 3.5% |
| Credit Flexibility | 620+ preferred | 580+ allowed |
| Mortgage Insurance (PMI) | May fall off sooner | Required for life (if <10% down) |
| Income Limits | Yes (in some cases) | No general limits |
📑 What documents do I need to get started?
To issue a solid pre-approval, we typically need:
- Last 30 days of pay stubs
- Most recent 2 years W-2s
- Most recent 2 months of bank statements
- Valid photo ID
- Credit authorization (we’ll send the secure link)
Self-employed or have unique income? We’ll guide you through additional requirements.
💳 How does PMI work and when can I remove it?
Private Mortgage Insurance (PMI) protects the lender when you put down less than 20%. In the 1% down program:
- PMI is built into your monthly payment
- You can remove it once you reach 20% equity (usually via refinance or automatic removal around year 7–11)
- Compared to FHA, this PMI can be removed — a major advantage for long-term savings
🔗 Related Programs You May Qualify For
⭐ Success Stories from Kentucky Homebuyers
📍 Why Work With Joel Lobb at EVO Mortgage?
As a seasoned Kentucky mortgage loan officer, I've helped over 1,300 families buy or refinance homes with tailored mortgage solutions like this 1% down loan program.
Get your pre-approval letter quickly to strengthen your offer in Kentucky's competitive market.
We work with unique situations and find creative solutions for complex scenarios.
15+ years of Kentucky real estate market expertise and relationships with local professionals.
No call centers or hand-offs – work directly with me throughout your entire loan process.
📝 Compliance & Licensing Disclosure
Joel Lobb, Senior Loan Officer
EVO Mortgage, NMLS #1738461
Personal NMLS #57916
EVO Mortgage is an Equal Housing Lender. All loans subject to credit approval. Income and property restrictions may apply. Not available in all areas. Rates and terms subject to change without notice. This is not a commitment to lend.
