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First-Time Buyer loans in Kentucky

Quick answer

First-time buyers in Kentucky can use FHA (3.5% down), conventional 97 (3% down), VA or USDA loans, plus programs from Kentucky Housing Corporation (KHC). On a $192,300 home, 3% down is about $5,769.

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

First-Time Buyer loan snapshot for Kentucky

ItemEstimate
Minimum down payment0%–3.5%
Minimum credit score580–620
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 First-Time Buyer 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).

Compare first-time buyer loan options

LoanMin. downMin. creditMortgage insurance
FHA3.5%5801.75% upfront + annual MIP
Conventional 97 / HomeReady / Home Possible3%620PMI, removable
VA0%Lender-set (~580–620)None (funding fee)
USDA0%~6401% upfront + 0.35% annual

Who counts as a first-time home buyer?

Under HUD and most agency definitions, you're a first-time buyer if you haven't owned a principal residence in the last three years. Single parents and displaced homemakers who only owned with a former spouse may also qualify.

First-Time Buyer loans in Kentucky cities

First-Time Buyer in LouisvilleFirst-Time Buyer in LexingtonFirst-Time Buyer in Bowling GreenFirst-Time Buyer in OwensboroFirst-Time Buyer in CovingtonFirst-Time Buyer in GeorgetownFirst-Time Buyer in RichmondFirst-Time Buyer in FlorenceFirst-Time Buyer in ElizabethtownFirst-Time Buyer in NicholasvilleFirst-Time Buyer in HopkinsvilleFirst-Time Buyer in IndependenceFirst-Time Buyer in JeffersontownFirst-Time Buyer in FrankfortFirst-Time Buyer in HendersonFirst-Time Buyer in PaducahFirst-Time Buyer in RadcliffFirst-Time Buyer in AshlandFirst-Time Buyer in ErlangerFirst-Time Buyer in MadisonvilleFirst-Time Buyer in WinchesterFirst-Time Buyer in Mount WashingtonFirst-Time Buyer in BurlingtonFirst-Time Buyer in MurrayFirst-Time Buyer in St. MatthewsFirst-Time Buyer in ShelbyvilleFirst-Time Buyer in Fort ThomasFirst-Time Buyer in DanvilleFirst-Time Buyer in BereaFirst-Time Buyer in ShivelyFirst-Time Buyer in GlasgowFirst-Time Buyer in ShepherdsvilleFirst-Time Buyer in NewportFirst-Time Buyer in BardstownFirst-Time Buyer in SomersetFirst-Time Buyer in LawrenceburgFirst-Time Buyer in CampbellsvilleFirst-Time Buyer in LyndonFirst-Time Buyer in AlexandriaFirst-Time Buyer in VersaillesFirst-Time Buyer in FrancisvilleFirst-Time Buyer in FranklinFirst-Time Buyer in La GrangeFirst-Time Buyer in Paris

Frequently asked questions

Yes. First-Time Buyer 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.