Louisville Kentucky First-Time Home Buyer Programs
FHA • VA • USDA • KHC Down Payment Assistance for Louisville & Jefferson County Buyers
Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA, Mortgage Broker – NMLS #57916 | Company NMLS #1738461 | Equal Housing Lender
Buying your first home in Louisville can feel overwhelming — especially when you're trying to compare loan programs, down payment options, and credit requirements. The good news is that Louisville and Jefferson County buyers have some of the strongest first-time home buyer programs in Kentucky, and many of them allow you to get into a home with low or even zero down payment.
This guide breaks down all the major Louisville Kentucky first-time home buyer programs — FHA, VA, USDA, and Kentucky Housing Corporation (KHC) Down Payment Assistance — and gives you the tools and links you need to make a confident decision.
Whether you're shopping in Germantown, PRP, Okolona, Jeffersontown, Shively, Valley Station, the Highlands, Hikes Point or anywhere else in Jefferson County, the right program can help you enter the market faster with less out-of-pocket cash.
FHA Loans for Louisville First-Time Buyers
FHA loans remain Louisville’s most widely used program for first-time buyers because they offer a low minimum down payment and flexible credit standards. They are especially helpful if you are transitioning from renting into your first home.
Key FHA Benefits
- 3.5% down payment when you meet minimum lender credit guidelines
- Down payment can be covered by gift funds, grants, or KHC down payment assistance
- More forgiving credit requirements than many conventional loans
- Competitive fixed interest rates
- Seller can pay up to 6% of the purchase price toward closing costs and prepaids
Most lenders prefer to see scores at or above 580 for FHA. If your score is lower, a structured credit improvement plan can often move you into qualifying range.
For more details on FHA in Kentucky, visit: Kentucky FHA Loan Requirements and Guidelines .
VA Home Loans for Louisville Veterans & Service Members (Zero Down)
If you are a veteran, active-duty service member, or eligible surviving spouse, a VA home loan is often the strongest option available when buying in Louisville.
Major VA Advantages
- Zero down payment required for eligible borrowers
- No monthly mortgage insurance (PMI)
- Competitive interest rates, often lower than FHA or conventional loans
- Flexible credit guidelines compared with many other loan programs
- Potential to reuse your VA benefit and even hold more than one VA loan in specific scenarios
To learn more about VA options in Kentucky, visit: Louisville & Kentucky VA Home Loan Lender Information .
USDA Rural Housing for Louisville & Surrounding Areas
While most of central Louisville does not qualify for USDA, many communities in the surrounding counties do. USDA can be an excellent zero-down solution if you are open to buying just outside the city.
USDA Zero-Down Features
- 100% financing — no down payment required
- Fixed-rate, 30-year terms
- Income-based eligibility with county and household size limits
- Seller-paid closing costs allowed within guidelines
USDA works especially well in parts of Bullitt, Oldham, Shelby, Spencer, Henry and other nearby counties that still offer reasonable commutes into Louisville.
For USDA guidelines and current income limits, see: Kentucky USDA Zero-Down Home Loan Program and 2025 Kentucky USDA Rural Housing Income Limits .
Kentucky Housing Corporation (KHC) Down Payment Assistance
Kentucky Housing Corporation (KHC) provides down payment assistance that pairs with FHA, VA, USDA, and conventional loans, making it a key tool for Louisville Kentucky first-time home buyers who need help with down payment and closing costs.
Common KHC Down Payment Assistance Options
- Regular DAP – Down payment assistance up to program limits, typically repaid over 10 years
- Affordable DAP – Often offers a lower interest rate and targets lower-to-moderate income households
Many Louisville buyers use KHC to dramatically reduce the cash needed at closing. It’s often combined with FHA or conventional loans to make homeownership more achievable.
For current KHC DPA amounts and requirements, visit: Kentucky Housing Corporation Down Payment Assistance (KHC DAP) .
Income, Credit & Purchase Price Guidelines
Each program that serves Louisville Kentucky first-time home buyers has its own set of income limits, credit thresholds, and purchase price considerations. Here is a general snapshot:
- FHA: No formal income limit; minimum 3.5% down; many lenders prefer 580+ scores.
- VA: No set income limit; 0% down; underwriting focuses on residual income and overall financial stability.
- USDA: Income limits by household size and county; property must be USDA-eligible; many lenders like to see 620+ scores.
- KHC DAP: Income limits and purchase price caps that vary by county; typically more comfortable starting around 640+ scores for assistance.
For a deeper dive on credit scores specifically, see: Minimum Credit Score Needed to Buy a Home in Kentucky .
You can also review a statewide summary at: Kentucky First-Time Home Buyer Programs Overview .
Mortgage Pre-Approval Documents for Louisville Buyers
A strong pre-approval helps you negotiate with confidence and shows Louisville sellers that you are serious and ready. Most buyers are asked for:
- Most recent 30 days of pay stubs
- W-2s for the last two calendar years
- Most recent 30 days of bank statements (all pages for checking and savings)
- Statements for 401(k) or retirement accounts, if applicable
- Driver’s license and authorization for a credit review
For a full checklist, visit: Documents Needed for a Mortgage Loan Approval in Kentucky .
Frequently Asked Questions about Louisville Kentucky First-Time Home Buyer Programs
Do I have to be a first-time buyer to use these Louisville programs?
Not always. FHA, VA and USDA loans do not require you to be a first-time buyer as long as you meet occupancy and guideline requirements. Some KHC down payment assistance options are reserved for first-time buyers, but others are available to repeat buyers who meet the income, credit, and property criteria.
Do Louisville sellers help with closing costs?
Yes. With FHA, sellers can typically pay up to 6% of the purchase price toward closing costs and prepaids. Conventional, VA, and USDA also allow seller contributions within their own limits. Properly structuring your offer can significantly reduce your cash needed at closing.
Is it still possible to buy with zero down in or around Louisville?
Yes. Eligible veterans and active-duty borrowers can use VA loans with no down payment. Many areas just outside Louisville qualify for USDA zero-down financing. In some scenarios, KHC down payment assistance can also help you cover the minimum down payment on FHA or conventional loans.
What credit score do I need to buy a home in Louisville, Kentucky?
Every situation is unique, but as a general rule:
- Many FHA lenders look for scores at or above 580+.
- USDA and KHC DAP are often more comfortable starting around 620+.
- VA loans can sometimes approve with lower scores when residual income and overall file strength are solid.
If you are not there yet, a targeted credit improvement strategy can often get you into qualifying range faster than you might expect.
Watch: Louisville First-Time Home Buyer Programs Explained (Video)
Prefer to watch a quick breakdown instead of reading? In this short video, I walk through FHA, VA, USDA, and KHC options for Louisville first-time home buyers and explain how to choose the right fit.
Ready to See Which Louisville Kentucky First-Time Home Buyer Program Fits You?
You don’t have to guess which combination of FHA, VA, USDA and KHC down payment assistance is best for your situation. I will run the numbers side by side for you, including estimated payments, total cash to close, and long-term savings.
Next steps:
- Call or text: 502-905-3708
- Email: kentuckyloan@gmail.com
- Start online: Click here to start your secure mortgage application
Once I have your basic information and documents, we can typically issue a strong pre-approval in as little as 24–48 hours on most files, so you can shop with confidence in the Louisville market.
Joel Lobb – Mortgage Broker, FHA, VA, USDA, KHC, Fannie Mae
EVO Mortgage • Helping Kentucky Homebuyers Since 2001
NMLS #57916 | Company NMLS #1738461
Equal Housing Lender •
www.nmlsconsumeraccess.org
This is not a commitment to lend. All loans are subject to credit approval, acceptable collateral, and program guidelines. Terms and conditions are subject to change without notice.
