Kentucky First-time Home Buyer Programs

Buying your first house in Kentucky can be a scary process. Here are the main home loan programs that homebuyers use to buy their first house in Kentucky. The big five are Fannie Mae (Conventional Loan), FHA, VA, USDA, and Kentucky Housing Down Payment Assistance.


Conventional Mortgage Loan in Kentucky

620 credit score or higher needed for this loan program. 4 years removed from bankruptcy minimum sometime longer. Private mortgage insurance required for over 80% loan to value on a refinance or down payments less than 20%. Tighter debt to income requirements with max backend-ratio usually not over 45% with less than 20% down payment. Easier on properties to qualify if they have deferred maintenance or need some fixing up to pass Government standards like FHA, VA, USDA loans. Down payment requirements are as little as 3% down payment. Better rates and lower mortgage insurance with a larger down payment and pmi is not for life of loan.

This is for stronger borrowers with good credit (above 680 or 720) and at least 3-5% down payment with no foreclosures or bankruptcies in he last 4-7 years. Can go higher on the loan amount too versus FHA. Max loan in Kentucky for 2024 for conventional loans is $766,550