Buying your first home in Kentucky can be both exciting and overwhelming. With the right loan programs and financial assistance, homeownership is more achievable than ever. Whether you need low down payment options, credit flexibility, or down payment assistance, there are Kentucky first-time home buyer programs designed to help.
In this guide, we’ll cover FHA, VA, USDA, Kentucky Housing Corporation (KHC), and down payment assistance programs to help you make the best decision.
Kentucky First-Time Home Buyer Loan Programs
1. FHA Loans – Low Down Payment, Credit-Friendly
Best for: Buyers with lower credit scores or limited savings
Minimum Credit Score: 580 (3.5% down), 500 (10% down)
Debt-to-Income (DTI) Ratio: Up to 57% with compensating factors
Mortgage Insurance: Required for the life of the loan
Down Payment Assistance Available: Yes
Why Choose an FHA Loan?
FHA loans are perfect for first-time home buyers in Kentucky who may not have a perfect credit history or large down payment. These loans are insured by the government, making them easier to qualify for.
2. VA Loans – No Down Payment for Military Buyers
Best for: Veterans, active-duty service members, and eligible spouses
Minimum Credit Score: 580-620 (varies by lender)
Down Payment: $0 down payment required
Mortgage Insurance: None (No PMI)
Debt-to-Income Ratio: Up to 50%+ with strong credit
Why Choose a VA Loan?
VA loans provide 100% financing, meaning no down payment is required. They also have lower interest
