No-Money-Down Mortgage Programs for Kentucky Buyers
Every program below offers zero or near-zero down payment options. We’ll match you to the right one based on your credit, income, and location.
100% Financing
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USDA Rural Development Loans
True zero-down financing for eligible rural and suburban Kentucky properties. More areas qualify than most buyers expect.
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Zero down payment — 100% financing
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Min. 640 credit score (automated approval)
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Manual underwriting available below 640
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Covers areas near Louisville, Lexington & more
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Income limited to ~115% of area median
Best for Veterans
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VA Loans for Kentucky Veterans
The most powerful zero-down loan available. No mortgage insurance, no purchase price limits, and flexible underwriting for eligible service members.
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Zero down payment required
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No monthly mortgage insurance (PMI)
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620 credit score (most KY lenders, 2026)
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Flexible debt-to-income via residual income
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Available for purchase & refinance
Most Popular
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FHA Loans
The most widely used first-time buyer loan in Kentucky. Flexible credit guidelines and low down payments — especially powerful when paired with KHC assistance.
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3.5% down with 580+ credit score
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500–579 scores may qualify (10% down)
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Flexible on prior bankruptcy/foreclosure
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Seller can contribute up to 6% to closing costs
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Stacks with KHC down payment assistance
Down Payment Help
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KHC Down Payment Assistance
Kentucky Housing Corporation offers up to $12,500 in down payment and closing
