Loan Options Based on Your Credit & Budget
FHA Loan (Best for Low Credit Scores & Low Down Payment)
Minimum credit score: 580 (for 3.5% down)
If the score is 500-579, a 10% down payment is required.
Flexible debt-to-income (DTI) requirements
Allows gift funds to supplement your down payment
Kentucky Housing Corporation (KHC) Loans & Down Payment Assistance
First-time homebuyer programs available
Down payment assistance to help with closing costs
Minimum credit score of 620 (some lenders may allow lower with compensating factors)
USDA Loan (For Rural Areas, No Down Payment Required)
No down payment needed
Requires a 640+ credit score (but some lenders may allow lower with manual underwriting)
Must meet income and location requirements
VA Loan (If You or a Co-Borrower are Military/Veteran)
No down payment required
No private mortgage insurance (PMI)
Requires a 500+ credit score depending on the lender
