How to Buy a Home in Kentucky with No Money Down: A Step-by-Step Guide for First-Time Buyer
Dreaming of buying a home in Kentucky but worried about the down payment? You're not alone. Fortunately, several loan programs and grants are available that can help you purchase a home with zero money down. This guide walks you through the most effective ways to make that dream a reality in 2025.
✅ Zero Down Payment Options for Kentucky Buyers
🏡 USDA Loans
No down payment required
Must buy in eligible rural areas
Income limits apply (115% of median income)
Credit score typically 640+
🎖️ VA Loans
100% financing for veterans, service members, and eligible spouses
No mortgage insurance
Lenient credit requirements (often 620+)
🏠 FHA Loans + Down Payment Assistance (DAP)
Minimum 3.5% down, often covered by assistance programs
Minimum credit score: 580
Accepted grants and gift funds to reduce upfront costs
🏦 Kentucky Housing Corporation (KHC) Assistance
💰 Down Payment Assistance Program (DAP)
Up to $10,000 in assistance
10-year term at 3.75% interest
Used with FHA, VA, USDA, and Conventional loans
🎉 Welcome Home Grant
Available annually for qualified buyers
Free grant money to cover closing and down payment costs
📝 Steps to Qualify for No Money Down Programs
Check Eligibility: Income, location, military status, credit score
Get Pre-Approved: Start with a trusted mortgage lender
Take a Homebuyer Education Course: Required for most grants
Apply for Assistance: Work with your lender
