Detailed Loan Program Breakdown
USDA Rural Housing Loan
Best for: Rural Kentucky buyers with low to moderate income
Down Payment: 0% required
Credit Score: 640+ preferred for automated approval
Mortgage Insurance: Low (0.35% monthly, 1% upfront guarantee fee)
Location: Must be USDA-eligible rural area
Bankruptcy/Foreclosure Wait: 3 years
Key Benefit: 100% financing for eligible rural buyers Kentucky USDA Home Buyers info click here for more info.
VA Loan (For Veterans and Military)
Best for: Veterans, active duty, and eligible military members
Down Payment: 0% required
Credit Score: Typically 580–620+ (no official VA minimum, but lenders set overlays)
Mortgage Insurance: None
Funding Fee: 2.3% (first-time), 3.6% (subsequent use)
Location: Anywhere in Kentucky
Bankruptcy/Foreclosure Wait: 2 years
Key Benefit: No down payment is needed. There is no monthly mortgage insurance. The credit requirements are flexible. Click here for more info on VA Mortgage Loans In Kentucky.
FHA Loan
Best for: First-time buyers or those with credit challenges
Down Payment: 3.5% (580+ score), 10% (500–579 score)
Credit Score: 580 minimum for most lenders
Mortgage Insurance: 0.85% monthly (for life of loan), 1.75% upfront
Bankruptcy Wait: 2 years (Ch. 7), 1 year (Ch. 13)
Foreclosure Wait: 3 years
Grants Allowed: Yes (e.g., KHC Down Payment Assistance)
Key Benefit: Easier qualification and lower down payment for lower credit scores. Click here for more info on Kentucky FHA Mortgage Loans.
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