Kentucky First-Time Home Buyer Programs Overview
Whether you're just beginning your homeownership journey or returning to the market after a financial setback, Kentucky offers several mortgage options tailored to fit your needs, income, and credit profile.
✅ Conventional Mortgage Loan in Kentucky
Ideal For: Stronger credit borrowers (typically 680–720+ FICO)
Minimum Credit Score: 620
Down Payment: As low as 3%
PMI Requirements:
Required if LTV > 80%
Can be removed once equity reaches 20%
Debt-to-Income Ratio: Typically max 45% (with < 20% down)
Bankruptcy/Forgiveness Guidelines:
Minimum 4 years from bankruptcy
No recent foreclosures
Key Benefits:
Easier on properties that may not meet government loan standards
Better rates & lower mortgage insurance with larger down payment
Higher loan limits than FHA
✅ FHA Loans in Kentucky (Federal Housing Administration)
Ideal For: Low to moderate-income borrowers or those with lower credit scores
Minimum Credit Score:
580+ = 3.5% down
500–579 = 10% down
Bankruptcy/Foreclosure:
Chapter 7 = 2 years removed
Chapter 13 = 12 months on-time payments and trustee approval
Foreclosure = 3 years removed
Loan Benefits:
Government-insured with more flexible guidelines
Allows gift funds for down payment
Available for first-time or repeat buyers
✅ Kentucky VA Loans (U.S. Department of Veterans Affairs)
Ideal For: Veterans, active-duty service members, and eligible surviving spouses
Minimum Credit Score: 580+ (most lenders)
Down Paymen
