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Conventional loans in Kentucky

Quick answer

Conventional loans in Kentucky allow as little as 3% down (about $5,769 on a $192,300 home) with a 620+ credit score, up to the $832,750 baseline conforming limit.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Conventional loan snapshot for Kentucky

ItemEstimate
Minimum down payment3%
Minimum credit score620
Typical KY home value$192,300
3.5% down on typical home$6,731
20% down on typical home$38,460
Avg. effective property tax0.77%/yr (~$123/mo)
Income for typical home (31% rule)$59,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Kentucky programs pair with Conventional loans?

  • Regular Down Payment Assistance: A repayable second mortgage covering down payment and closing costs.
  • Affordable Down Payment Assistance: A lower-rate assistance option for buyers with lower household incomes.

Details and current limits: Kentucky Housing Corporation (KHC).

How does a conventional loan work?

Conventional loans are made by private lenders and usually sold to Fannie Mae or Freddie Mac. Because they follow those agencies' guidelines, they're called conforming loans. You can choose a fixed rate (15, 20 or 30 years) or an adjustable rate.

Your rate and mortgage insurance cost depend heavily on your credit score and down payment, so improving either before you apply can noticeably lower your payment.

Who qualifies for a conventional loan?

  • Credit score: generally 620 minimum.
  • Debt-to-income (DTI): up to 45%, and sometimes 50% with strong compensating factors.
  • Down payment: 3% (HomeReady, Home Possible, 97% LTV programs) to 5%+.
  • Steady, documented income — usually two years of history.
  • Property: primary homes, second homes and investment properties are all allowed (with higher down payments for non-primary homes).

Conventional loans in Kentucky cities

Conventional in LouisvilleConventional in LexingtonConventional in Bowling GreenConventional in OwensboroConventional in CovingtonConventional in GeorgetownConventional in RichmondConventional in FlorenceConventional in ElizabethtownConventional in NicholasvilleConventional in HopkinsvilleConventional in IndependenceConventional in JeffersontownConventional in FrankfortConventional in HendersonConventional in PaducahConventional in RadcliffConventional in AshlandConventional in ErlangerConventional in MadisonvilleConventional in WinchesterConventional in Mount WashingtonConventional in BurlingtonConventional in MurrayConventional in St. MatthewsConventional in ShelbyvilleConventional in Fort ThomasConventional in DanvilleConventional in BereaConventional in ShivelyConventional in GlasgowConventional in ShepherdsvilleConventional in NewportConventional in BardstownConventional in SomersetConventional in LawrenceburgConventional in CampbellsvilleConventional in LyndonConventional in AlexandriaConventional in VersaillesConventional in FrancisvilleConventional in FranklinConventional in La GrangeConventional in Paris

Frequently asked questions

Yes. Conventional loans are available statewide in Kentucky through approved lenders, subject to county loan limits where they apply.

Often yes. Kentucky Housing Corporation (KHC) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.