If you’ve had late payments, collections, bankruptcy, or other setbacks, you’re not out of the game. Kentucky homebuyers routinely qualify using the right loan structure, realistic timelines, and clean documentation. Below is a practical breakdown of FHA, VA, USDA, Conventional, and KHC down payment assistance—plus smart internal and external resources.
Program overview
FHA loans in Kentucky
Potential approvals down to 500 with at least 10% down or 10% equity on a refinance.
580+ score typically enables 3.5% down payment.
Gift funds and DPA allowed; flexible underwriting for limited credit depth.
Internal: FHA options in Kentucky | External: HUD
VA loans in Kentucky
No VA-imposed minimum score; many lenders look for ~620+.
$0 down and no monthly mortgage insurance for eligible Veterans/servicemembers.
Residual income and overall credit re-establishment matter.
Internal: Kentucky VA loan guide | External: VA.gov
USDA loans in Kentucky
100% financing for eligible rural properties and households within income limits.
No hard USDA minimum score, but most lenders prefer 620–640+.
Location eligibility, income, and household size rules apply.
Internal: Kentucky USDA overview | External: USDA
Conventional loans in Kentucky
620+ can allow 3–5% down; below ~660, many lenders require at least 5% down.
Best fit for borrowers with re-established credit and stronger reserves.
PMI may be cancellable as equity grows.
Internal: Conventional loan insights | External: CFPB
Kentucky Housing
