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DSCR loans in Kentucky

Quick answer

DSCR loans in Kentucky qualify investors on a property's rental income instead of personal income, typically with 20%–25% down and a 660+ credit score.

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

DSCR loan snapshot for Kentucky

ItemEstimate
Minimum down payment20%–25%
Minimum credit score660–700
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 DSCR 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 is DSCR calculated?

Lenders divide the property's market rent (from an appraiser's rent schedule or an existing lease) by the full monthly payment: principal, interest, taxes, insurance and any HOA dues. Example: $2,400 rent ÷ $2,000 payment = 1.20 DSCR.

Typical DSCR loan requirements

  • Down payment: 20%–25% (sometimes 15% for strong files).
  • Credit: 660–700 minimum.
  • Reserves: commonly 3–12 months of payments.
  • Property types: 1–4 unit homes, condos and townhomes; some lenders allow short-term rentals.

DSCR loans in Kentucky cities

LouisvilleLexingtonBowling GreenOwensboroCovingtonGeorgetownRichmondFlorenceElizabethtownNicholasvilleHopkinsvilleIndependenceJeffersontownFrankfortHendersonPaducahRadcliffAshlandErlangerMadisonvilleWinchesterMount WashingtonBurlingtonMurraySt. MatthewsShelbyvilleFort ThomasDanvilleBereaShivelyGlasgowShepherdsvilleNewportBardstownSomersetLawrenceburgCampbellsvilleFort Campbell NorthLyndonAlexandriaVersaillesFrancisvilleFranklinLa GrangeParis

Frequently asked questions

Yes. DSCR 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.

Answer a few questions on Purchase Mortgage Loan and we'll match you with lenders and loan officers in our network who serve Kentucky.

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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.