First-Time Homebuyer Mortgage Programs in Kentucky
✅ FHA Loan (Federal Housing Administration)
Min. Credit Score: 580 (3.5% down)
Down Payment: 3.5% (can use KHC DAP to cover)
Loan Limits: Up to $498,257 in most counties
Good for: Buyers with limited savings or lower credit
Mortgage Insurance: Upfront + monthly (non-cancellable)
✅ VA Loan (Veterans Affairs)
Min. Credit Score: Typically 580–620+
Down Payment: 0%
Eligibility: Veterans, Active Duty, Reserves, surviving spouses
Mortgage Insurance: None
Funding Fee: Yes (can be waived for disabled vets)
✅ USDA Rural Housing Loan
Min. Credit Score: 640 (for GUS approval)
Down Payment: 0%
Income Limits: Based on household size and county (e.g., ~$110,000 for family of 4 in most counties)
Location Restriction: Must be in USDA-eligible rural area
Mortgage Insurance: Yes, lower than FHA
Ideal for: Small towns or outer suburbs
✅ KHC DAP (Down Payment Assistance)
Loan Amount: Up to $10,000 (second mortgage, 0% interest, repayable over 10 years)
Also Available: $2,000 grant (first-come, first-served — launched July 2025)
Income Limits: Vary by county, household size, and program
Pair With: FHA, VA, USDA, or Conventional loans
Use For: Down payment and closing costs
✅ Conventional Loans
Min. Credit Score: 620
Down Payment: 3% (HomeReady/Home Possible)
MI Cancelable: Yes, when LTV < 80%
Best For: Stronger credit, income, and lower DTI buyers
Combine With: KHC DAP or Welcome Home Grant (if available)
⚠️ Income & Loa
