2026 Kentucky Homebuyer Guide · Updated June 2026

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Kentucky Zero Down Payment Assistance Programs for Homebuyers in 2026

Buying a home in Kentucky does not always require a large down payment. Depending on your credit score, income, county, property location, military eligibility, and loan program, you may be able to buy with zero down or very little money out of pocket.

This guide covers Kentucky zero down home loan options, KHC down payment assistance, Click n’ Close SmartBuy down payment assistance, USDA loans, VA loans, FHA loans, conventional 3% down financing, seller concessions, and where the 2026 Welcome Home Grant currently stands.

Need a Kentucky mortgage pre-approval review?
Call or text Joel Lobb at 502-905-3708 or email kentuckyloan@gmail.com.

Call or Text Joel Email for Pre-Approval Visit Kentucky Mortgage Website

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The Straight Answer: Zero Down Does Not Always Mean Zero Cash to Close

Zero down means the loan program may not require a down payment. It does not automatically mean you will bring zero dollars to closing. Buyers may still need money for earnest money, appraisal, home inspection, homeowners insurance, prepaid taxes, escrow setup, title fees, lender fees, and other closing costs unless those items are covered by seller concessions, lender credits, gift funds, grants, or down payment assistance.

Best Zero Down Payment Options for Kentucky Homebuyers in 2026

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The strongest Kentucky zero down home loan options usually fall into these categories:

  • USDA Rural Housing loans for eligible rural and suburban properties.
  • VA loans for eligible veterans, active-duty service members, National Guard members, Reserve members, and qualifying surviving spouses.
  • KHC down payment assistance used with FHA, VA, USDA/RHS, or conventional loans when the borrower qualifies.
  • Click n’ Close SmartBuy DPA used with eligible FHA or USDA loans when the borrower qualifies.
  • FHA or conventional financing combined with seller concessions, gift funds, lender credits, or other eligible assistance.

The right program depends on the borrower’s full file. A buyer with VA eligibility may be better served by a VA loan. A buyer purchasing in a USDA-eligible area may fit USDA. A buyer needing help with down payment and closing costs may need KHC assistance or SmartBuy DPA layered with the correct first mortgage.

The cheapest-looking loan is not always the best loan. The best structure is the one that gets approved, keeps the buyer’s cash to close realistic, and fits the long-term payment strategy.

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Kentucky Zero Down and Low Down Payment Program Comparison

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Program Down Payment Best For Key 2026 Notes
USDA Rural Housing 0% down Eligible rural and suburban Kentucky buyers Property must be in a USDA-eligible area and household income limits apply.
VA Loan 0% down for eligible borrowers Eligible veterans, active-duty military, National Guard, Reserve, and qualifying surviving spouses No monthly PMI. VA funding fee may apply unless the borrower is exempt.
KHC Regular DAP Assistance up to $12,500 Kentucky buyers needing help with down payment, closing costs, or prepaid expenses Repayable second mortgage over 15 years at 4.75%, subject to current KHC program availability and guidelines.
Click n’ Close SmartBuy DPA Up to 5% of purchase price, depending on option FHA or USDA buyers who need assistance and may not fit KHC income or first-time buyer limits Available with eligible FHA and USDA loans. Forgivable and repayable options may be available. No SmartBuy income or first-time buyer restriction listed, but USDA income limits still apply on USDA loans.
FHA + Assistance 3.5% down with 580+ FHA baseline, potentially covered by assistance Buyers with limited savings or more flexible credit needs FHA mortgage insurance applies. The 2026 FHA one-unit floor is $541,287. KHC requires 620 minimum score when using KHC FHA.
Conventional 3% Down As low as 3% down Stronger-credit buyers who may want lower or removable mortgage insurance Conventional PMI may be cheaper than FHA monthly mortgage insurance for higher-credit borrowers. The 2026 conforming one-unit baseline loan limit is $832,750.
Welcome Home Grant Grant assistance when funds are open Income-eligible buyers working through participating FHLB Cincinnati member institutions The 2026 Welcome Home Program opened April 6, 2026 and funds are reserved first-come, first-served until allocated.
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Infographic: Which Kentucky Program Should You Check First?

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🏡 Buying outside a major metro?

Start with USDA. Many Kentucky small towns and suburban/rural areas may qualify by address.

🇺🇸 Have military eligibility?

Start with VA. VA may offer 0% down and no monthly private mortgage insurance for eligible borrowers.

💰 Need help with cash to close?

Review KHC DAP. KHC Regular DAP may help cover down payment, closing costs, and eligible prepaid items.

⚡ Do not fit KHC?

Check SmartBuy DPA. Click n’ Close SmartBuy may help FHA or USDA buyers who need assistance but do not fit KHC.

📉 Credit is not perfect?

Compare FHA. FHA can be more flexible, but KHC and DPA programs can have higher credit overlays.

📈 Strong credit score?

Compare conventional. A 3% down conventional loan may have cheaper PMI than FHA mortgage insurance.

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KHC $12,500 Down Payment Assistance in Kentucky

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Kentucky Housing Corporation, commonly called KHC, offers down payment assistance that can help qualified Kentucky homebuyers cover down payment, closing costs, and prepaid expenses.

KHC Regular DAP Snapshot

  • Assistance amount: Up to $12,500 in $100 increments.
  • Structure: Repayable second mortgage.
  • Term: 15 years.
  • Interest rate: 4.75%, subject to current KHC program availability and updates.
  • Purchase price limit: KHC currently lists $566,354 for Secondary Market and MRB first mortgage programs, while the DAP page also references DAP program limits. Confirm the live KHC limit before writing an offer.
  • Use: Down payment, eligible closing costs, and eligible prepaid items.

What KHC Assistance Can Help Cover

  • Down payment
  • Closing costs
  • Prepaid property taxes
  • Homeowners insurance escrows
  • Other eligible closing-related costs

Important KHC Qualification Points

  • KHC generally requires a qualifying first mortgage through KHC.
  • KHC currently lists a 620 minimum credit score for FHA, VA, and RHS loans through KHC.
  • KHC currently lists a 660 minimum credit score for conventional options through KHC.
  • The borrower must qualify with the additional DAP payment.
  • Credit score, debt-to-income ratio, income limits, property type, purchase price, and underwriting approval still matter.
  • KHC Regular DAP is not free grant money. It is a repayable second mortgage.

KHC can be a strong option when the borrower has stable income and credit but does not have enough verified funds for down payment and closing costs. It can also be paired with FHA, VA, USDA/RHS, or conventional loan options when the full file meets program requirements.

Internal link: For more details, review this related guide: KHC Down Payment Assistance in Kentucky.

Official link: Kentucky Housing Corporation Down Payment Assistance.

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Click n’ Close SmartBuy DPA Program for Kentucky Buyers

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Click n’ Close SmartBuy DPA is another down payment assistance option Kentucky buyers may want to compare against KHC, USDA, FHA, VA, conventional, seller concessions, and grant options.

SmartBuy is not the same as KHC. KHC is a Kentucky Housing Corporation program. SmartBuy is a Click n’ Close down payment assistance program that may be available with eligible FHA and USDA first mortgage loans.

SmartBuy DPA Snapshot

  • Assistance amount: Up to 5% of the purchase price, depending on the program option.
  • Eligible first liens: FHA and USDA.
  • Conventional loans: Not available with conventional first liens.
  • VA loans: VA should be reviewed separately as its own zero down option.
  • First-time buyer restriction: No first-time homebuyer restriction listed by Click n’ Close.
  • Income restriction: No SmartBuy income restriction listed, but USDA income limits still apply when using USDA financing.
  • Occupancy: Primary residence / owner-occupied only.
  • Options: Forgivable and repayable second-lien options may be available.

How SmartBuy DPA May Help a Kentucky Buyer

SmartBuy may help a buyer who has the income and credit profile to qualify for FHA or USDA but does not have enough verified funds for down payment, closing costs, prepaid taxes, homeowners insurance, or escrow setup.

Because SmartBuy may offer up to 5% of the purchase price, it can sometimes provide more assistance than a smaller fixed-dollar second mortgage. That does not automatically make it better. The correct comparison depends on the rate, second-lien structure, payment, repayment terms, property type, credit score, debt-to-income ratio, and whether the buyer is using FHA or USDA.

SmartBuy DPA vs. KHC Down Payment Assistance

Feature KHC Regular DAP Click n’ Close SmartBuy DPA
Program type Kentucky Housing Corporation assistance program Click n’ Close down payment assistance program
Assistance amount Up to $12,500 Up to 5% of the purchase price, depending on option
Eligible first liens KHC-eligible FHA, VA, RHS/USDA, and conventional options FHA and USDA options; not conventional
Income limits KHC income limits apply No SmartBuy income restriction listed, but USDA income limits still apply on USDA loans
First-time buyer rule Depends on KHC program and funding source No first-time homebuyer restriction listed
Repayment structure Repayable second mortgage Forgivable or repayable second-lien options may be available
Best fit Kentucky buyers who meet KHC income, credit, property, and first-mortgage requirements FHA or USDA buyers who need assistance and may not fit KHC income or first-time buyer restrictions

Important SmartBuy warning: SmartBuy is not automatically better than KHC. A higher assistance amount can still come with tradeoffs, including rate, repayment terms, second-lien requirements, underwriting overlays, and payment impact. The file needs to be compared side by side before the buyer makes an offer.

When SmartBuy DPA May Be Worth Reviewing

  • The buyer needs more than standard FHA 3.5% down payment help.
  • The buyer is not eligible for KHC because of income, first-time buyer status, or program fit.
  • The property is USDA-eligible and the buyer wants to compare USDA with DPA options.
  • The buyer has enough credit strength to meet the SmartBuy score overlay.
  • The buyer wants to compare repayable versus forgivable assistance options.
  • The buyer needs help with down payment, closing costs, prepaids, or possibly rate reduction.

When SmartBuy May Not Be the Right Fit

  • The buyer needs a conventional loan.
  • The buyer has VA eligibility and VA is clearly the stronger zero down structure.
  • The buyer’s credit score is below the SmartBuy minimum overlay.
  • The buyer is purchasing an investment property or second home.
  • The buyer cannot qualify with the full payment structure.
  • The rate, repayment terms, or total cost are worse than KHC, USDA, FHA, VA, or conventional alternatives.

Official link: Click n’ Close SmartBuy DPA.

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Kentucky USDA Zero Down Home Loans

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USDA Rural Housing is one of the most powerful zero down mortgage options for Kentucky buyers because it allows 100% financing for eligible properties and eligible households.

USDA May Work Well If:

  • The property is in a USDA-eligible rural or suburban area.
  • The household income is within USDA limits.
  • The borrower can document stable income.
  • The credit profile can receive USDA/GUS approval or meet manual underwriting requirements.
  • The property meets USDA appraisal and safety standards.

USDA is not only for farmland. Many Kentucky communities outside the densest metro areas may qualify. Parts of counties around Louisville, Lexington, Bowling Green, Elizabethtown, Owensboro, Paducah, and Northern Kentucky may be eligible depending on the exact property address.

The critical point: USDA eligibility is property-address specific and household-income specific. A buyer cannot assume the house qualifies just because it is outside the city, and a buyer cannot assume they are under the income limit without reviewing the full household income.

Internal link: Learn more here: Kentucky USDA Rural Housing Loans.

Official links: USDA Single Family Housing Guaranteed Loan Program and USDA Property and Income Eligibility Map.

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Kentucky VA Zero Down Home Loans

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For eligible Kentucky veterans, active-duty service members, National Guard members, Reserve members, and qualifying surviving spouses, a VA loan can be one of the best mortgage options available.

VA Loan Advantages

  • 0% down payment for eligible borrowers.
  • No monthly private mortgage insurance.
  • Flexible underwriting compared with many conventional loans.
  • Competitive interest rate options for qualified borrowers.
  • Seller concessions may help reduce out-of-pocket costs.

VA does not set one universal minimum credit score for every lender, but lenders may have their own credit score overlays. The borrower must still qualify based on income, credit, residual income, debts, assets, occupancy, appraisal, and Certificate of Eligibility.

For borrowers with full VA entitlement, VA does not impose a traditional loan limit. That does not mean unlimited borrowing power. The lender still has to approve the loan amount, and the property must appraise to support the value.

Internal link: Learn more here: Kentucky VA Zero Down Mortgage Loans.

Official link: VA Purchase Loan Information.

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Kentucky FHA Loans With Down Payment Assistance

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FHA loans are popular with Kentucky first-time homebuyers because FHA allows a lower down payment and more flexible credit underwriting than many conventional programs.

Basic FHA Down Payment Rules

  • 580 or higher credit score: minimum 3.5% down payment under FHA baseline rules.
  • 500 to 579 credit score: minimum 10% down payment under FHA baseline rules, subject to lender approval and overlays.
  • Below 500: generally not eligible for FHA financing.

FHA by itself is not a zero down loan because it requires a down payment. However, FHA can become a low-out-of-pocket option when paired with eligible down payment assistance, seller-paid closing costs, verified gift funds, or lender credits.

Important KHC overlay: FHA baseline credit rules are not the same as KHC credit overlays. If a buyer is using KHC with FHA, KHC currently requires a 620 minimum credit score.

FHA Mortgage Insurance and the 2026 Loan Limit

For 2026, the FHA nationwide floor is $541,287 for a one-unit property. FHA also has upfront mortgage insurance and monthly mortgage insurance. That does not make FHA a bad choice, but buyers need to understand the total cost.

A borrower with excellent credit may sometimes be better served by a conventional 3% down loan because conventional PMI can be cheaper and may eventually be removed. This is why the correct loan is not always the one with the lowest down payment. The right answer is the one with the best total structure for the buyer’s credit, income, cash to close, monthly payment, and long-term plan.

Internal link: Learn more here: Kentucky FHA Loan Requirements.

Official link: HUD FHA Mortgage Loan Limits.

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Kentucky Conventional 3% Down Options

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Conventional loans may allow as little as 3% down for eligible first-time homebuyers or qualified low-to-moderate income borrowers. Conventional financing can be a strong alternative to FHA when the borrower has stronger credit and can qualify under Fannie Mae or Freddie Mac guidelines. The 2026 conforming loan limit is $832,750 for a one-unit property in most counties.

Conventional May Be Better Than FHA When:

  • The borrower has a higher credit score.
  • The monthly PMI is lower than FHA mortgage insurance.
  • The borrower wants the ability to remove PMI later.
  • The debt-to-income ratio works under conventional underwriting.
  • The property meets conventional appraisal requirements.

Conventional loans are not automatically better. FHA can still be the better lane for some borrowers with tighter credit, higher debt ratios, or limited credit history. The file needs to be structured correctly before a buyer starts making offers.

Common Conventional Low-Down-Payment Options

  • Fannie Mae HomeReady: As low as 3% down for eligible borrowers.
  • Freddie Mac Home Possible: As low as 3% down for eligible borrowers.
  • KHC Conventional Preferred / HFA Advantage: KHC conventional options may allow 3% down with KHC DAP when the borrower meets KHC requirements.

Official links: Fannie Mae HomeReady and Freddie Mac Home Possible.

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2026 Welcome Home Grant Update for Kentucky Buyers

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The Welcome Home Program through FHLB Cincinnati has historically provided grants to help eligible buyers with down payment and closing costs through participating member institutions. The 2026 round opened on April 6, 2026, and funds are reserved on a first-come, first-served basis until allocated.

That matters because many buyers search for the Kentucky grant after funds are already gone. The hard truth is that grant funds are limited, competitive, and first-come, first-served. Buyers who wait until they already have a signed contract often miss the funding window entirely.

What to Do If Welcome Home Funds Are Closed

  • Review KHC $12,500 down payment assistance.
  • Compare Click n’ Close SmartBuy DPA if using FHA or USDA.
  • Check USDA eligibility for 0% down financing.
  • Review VA eligibility if you have military service.
  • Ask whether seller concessions can cover closing costs and prepaids.
  • Compare FHA, conventional, VA, and USDA options before making an offer.

Bottom line: Do not build your entire homebuying plan around one grant. Have a backup structure ready, and ask your loan officer to monitor the next funding round.

Official link: FHLB Cincinnati Welcome Home Program.

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Can Seller Concessions Help Kentucky Buyers Reduce Cash to Close?

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Yes. Seller concessions can be a major part of a low-cash-to-close strategy. A seller concession is money the seller agrees to contribute toward eligible buyer closing costs and prepaid expenses.

Depending on the loan program, seller concessions may help cover items such as title fees, lender fees, prepaid taxes, homeowners insurance, escrow setup, and other eligible settlement charges. Seller concessions usually cannot simply be used as extra cash back to the buyer at closing.

Common Ways to Reduce Out-of-Pocket Money

  • Use KHC down payment assistance.
  • Use Click n’ Close SmartBuy DPA when it fits better than KHC.
  • Use seller-paid closing costs.
  • Use verified gift funds from an acceptable donor.
  • Use lender credits when the pricing structure makes sense.
  • Compare USDA, VA, FHA, and conventional options before choosing the loan.

The right structure can lower cash to close, but the numbers still have to work under underwriting guidelines, appraisal value, contract terms, and program limits.

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Real-World Examples of Each Kentucky Loan Program

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Example 1: USDA Zero Down

Buyer: First-time buyer purchasing a $225,000 home in a USDA-eligible Kentucky area.

Possible structure: 100% USDA financing, seller pays part of closing costs, buyer verifies household income is within USDA limits.

Watch-out: USDA eligibility depends on the exact address and total household income.

Example 2: VA Zero Down

Buyer: Eligible veteran purchasing a $300,000 primary residence.

Possible structure: 0% down VA loan, no monthly PMI, seller concession used to reduce closing costs.

Watch-out: VA funding fee may apply unless the borrower is exempt.

Example 3: FHA + KHC DAP

Buyer: Kentucky buyer purchasing a $220,000 home with limited savings.

Possible structure: FHA first mortgage plus KHC Regular DAP up to $12,500 to help cover down payment and closing costs.

Watch-out: KHC DAP is a repayable second mortgage and must fit the debt-to-income ratio.

Example 4: Click n’ Close SmartBuy DPA

Buyer: Kentucky buyer purchasing a $250,000 primary residence using FHA or USDA and needing help with down payment and closing costs.

Possible structure: SmartBuy DPA may provide assistance up to 5% of the purchase price, depending on the available option and borrower qualification.

Watch-out: Compare rate, second-lien structure, repayment terms, credit score overlay, and total payment against KHC, FHA, USDA, VA, and conventional options.

Example 5: FHA Without KHC

Buyer: Borrower with imperfect credit and some savings.

Possible structure: FHA with 3.5% down if credit and underwriting qualify, plus gift funds or seller concessions.

Watch-out: FHA has upfront and monthly mortgage insurance.

Example 6: Conventional 3% Down

Buyer: Stronger-credit first-time buyer purchasing a $275,000 home.

Possible structure: 3% down conventional loan, PMI compared against FHA mortgage insurance.

Watch-out: Conventional underwriting can be stricter on credit, debt ratio, and overall risk layering.

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How to Qualify for Kentucky Zero Down Payment Assistance

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Most Kentucky down payment assistance and zero down mortgage programs review the same core underwriting areas: credit, income, employment history, debt-to-income ratio, assets, property eligibility, and occupancy.

Credit Score

Credit score requirements vary by program and lender. KHC currently lists a 620 minimum credit score for FHA, VA, and RHS loans through KHC and 660 for conventional options through KHC. FHA baseline rules may allow lower scores when not using KHC, but lender overlays and underwriting risk still matter.

Income

W-2 income, hourly income, salary, overtime, bonus income, part-time income, self-employed income, Social Security, disability, retirement, and child support may be usable if properly documented and likely to continue.

Debt-to-Income Ratio

The lender reviews the new house payment plus credit cards, car loans, student loans, installment loans, and other required monthly obligations. Assistance payments, such as a repayable KHC DAP second mortgage, may also count in the debt ratio.

Assets

Even with zero down financing, buyers may still need funds for earnest money, appraisal, home inspection, homeowners insurance, and any costs not covered by assistance, concessions, lender credits, or gifts.

Property Eligibility

USDA requires property eligibility by address. FHA, VA, USDA, conventional, SmartBuy, and KHC all have property standards that must be met.

Occupancy

Most zero down and down payment assistance programs are for primary residences only, not investment properties or second homes.

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Documents Usually Needed for a Kentucky Mortgage Pre-Approval

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  • Last 30 days of pay stubs
  • W-2 forms for the last two years
  • Most recent 30 to 60 days of bank statements
  • Driver’s license or government-issued photo ID
  • Retirement or 401(k) statement, if using those funds
  • Tax returns if self-employed, commission-based, or using certain non-W-2 income
  • VA Certificate of Eligibility if applying for VA financing
  • Divorce decree, child support documentation, or benefit award letters if applicable
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Which Kentucky Program Is Best?

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There is no one-size-fits-all answer. The best Kentucky mortgage program depends on the full approval file.

  • If you have VA eligibility, start with VA.
  • If the property is USDA-eligible and your household income fits, compare USDA.
  • If you need down payment help and fit KHC, review KHC assistance.
  • If you need FHA or USDA down payment help but do not fit KHC, compare Click n’ Close SmartBuy DPA.
  • If your credit is limited or your debt ratio is tight, FHA may be the better lane.
  • If you have stronger credit, compare conventional 3% down because PMI may be cheaper than FHA mortgage insurance.

The wrong structure can cost a buyer thousands of dollars. The right structure can reduce cash to close, improve monthly payment, and create a cleaner approval path.

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Important Buyer Reality Check

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Zero down does not automatically mean easy approval. You still have to qualify. The lender will review credit, income, debt ratio, assets, property condition, appraisal, title, insurance, and program rules.

Also, down payment assistance is not always free. Some programs are grants, some are forgivable second mortgages, and some are repayable second mortgages. Before you pick a program, understand whether the money has to be repaid, whether it affects your monthly payment, and what happens if you refinance or sell the home.

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Kentucky Mortgage Topic Cluster

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This zero down payment guide is part of a broader Kentucky mortgage education hub. These are the core topics buyers should understand before applying for a mortgage or making an offer on a home:

Topic Why It Matters Related Search Intent
KHC down payment assistance Helps eligible Kentucky buyers cover down payment, closing costs, and prepaid expenses. KHC $12,500 down payment assistance
Click n’ Close SmartBuy DPA May help eligible FHA or USDA buyers with down payment, closing costs, prepaids, or rate reduction. SmartBuy down payment assistance Kentucky
USDA rural housing loans May allow 0% down in eligible rural and suburban areas. Kentucky USDA zero down home loans
VA home loans May allow 0% down and no monthly PMI for eligible military borrowers. Kentucky VA loan requirements
FHA loans Can help buyers with lower down payment and more flexible credit guidelines. FHA down payment assistance Kentucky
Conventional 3% down Can be a better fit for stronger-credit buyers who want removable PMI. Conventional 3% down first-time buyer Kentucky
Seller concessions Seller-paid costs can reduce buyer cash to close when structured correctly. Seller concessions Kentucky mortgage
Credit scores Credit score affects eligibility, interest rate, mortgage insurance, and approval options. Credit score needed to buy a house in Kentucky
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For Kentucky Real Estate Agents, Builders, and Homebuyer Educators

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If you work with Kentucky first-time homebuyers, this guide can be used as a client education resource for buyers comparing zero down payment options, down payment assistance, seller concessions, FHA loans, VA loans, USDA loans, KHC assistance, SmartBuy DPA, and grant availability.

Helpful Topics to Share With Buyers

  • How much money a Kentucky buyer may need to purchase a home.
  • The difference between zero down and zero cash to close.
  • How KHC down payment assistance works.
  • How Click n’ Close SmartBuy DPA works.
  • When USDA or VA may be better than FHA.
  • Why seller concessions matter in a low-cash-to-close purchase.
  • Why grant funds can run out quickly.

Agents and buyers can call or text Joel Lobb at 502-905-3708 for a Kentucky mortgage pre-approval review before writing an offer.

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Frequently Asked Questions About Kentucky Zero Down Payment Assistance

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Can I buy a house in Kentucky with no down payment?

Yes, some Kentucky buyers can purchase with no down payment using USDA, VA, or a loan combined with eligible down payment assistance. Approval depends on credit, income, debt ratio, property eligibility, and program rules.

What is the best zero down loan in Kentucky?

For eligible military borrowers, VA is often one of the strongest zero down options. For eligible rural and suburban buyers, USDA can be excellent. For buyers needing help with down payment or closing costs, KHC assistance or SmartBuy DPA may be worth reviewing.

Does KHC give free grant money?

KHC Regular DAP is not free grant money. It is a repayable second mortgage. KHC currently lists Regular DAP up to $12,500, repayable over 15 years at 4.75%, subject to KHC guidelines and program availability.

What is Click n’ Close SmartBuy DPA?

Click n’ Close SmartBuy DPA is a down payment assistance program that may be used with eligible FHA and USDA first mortgage loans. It may provide assistance toward down payment, closing costs, prepaid items, or rate reduction, depending on the available program option.

Is SmartBuy DPA the same as KHC?

No. KHC is Kentucky Housing Corporation’s down payment assistance program. SmartBuy DPA is a Click n’ Close program. Kentucky buyers should compare both options when they qualify because the best structure depends on credit score, income, property type, purchase price, loan program, payment, and total cost.

Can SmartBuy DPA be used with a conventional loan?

No. SmartBuy DPA is published as a government-loan DPA option for FHA and USDA first liens. It is not a conventional loan DPA program.

Can SmartBuy DPA be used with VA loans?

SmartBuy is primarily listed for FHA and USDA first liens. VA should be reviewed separately as its own zero down loan option for eligible military borrowers.

Does SmartBuy have income limits?

Click n’ Close lists no SmartBuy income restriction. However, if the buyer uses USDA financing, USDA household income limits still apply.

Is SmartBuy forgivable?

SmartBuy may offer forgivable and repayable options. The terms depend on the specific program option, credit score, underwriting approval, and current program matrix.

Is the Kentucky Welcome Home Grant still available in 2026?

The 2026 Welcome Home Program opened April 6, 2026, with funds reserved on a first-come, first-served basis. Buyers should verify current availability directly with a participating member institution and should also review backup options such as KHC assistance, SmartBuy DPA, USDA, VA, FHA, conventional, seller concessions, and lender credits.

What credit score do I need for Kentucky down payment assistance?

It depends on the program. KHC currently lists a 620 minimum score for FHA, VA, and RHS loans through KHC and a 660 minimum score for conventional options through KHC. FHA baseline rules may allow lower scores outside KHC, but lender overlays and underwriting rules still apply.

Can seller concessions pay my closing costs?

Yes, seller concessions may help pay eligible closing costs and prepaids, subject to loan program limits. FHA, VA, USDA, and conventional loans each have their own seller concession rules.

Can I use USDA in Louisville?

Most properties inside Louisville and Jefferson County are not USDA-eligible, but some surrounding Kentucky counties and communities may qualify depending on the exact property address. USDA eligibility must be checked by address.

Can I combine KHC with FHA, VA, USDA, or conventional loans?

KHC assistance may be available with eligible KHC first mortgage programs, including FHA, VA, RHS/USDA, and conventional options, when the borrower and property meet the required guidelines.

Is FHA a zero down loan?

No. FHA requires a down payment. However, eligible down payment assistance, gift funds, seller concessions, or lender credits may help reduce the amount of money a buyer needs to bring to closing.

Can I get money back at closing with down payment assistance?

Generally, no. Down payment assistance is normally used for eligible down payment, closing costs, and prepaid expenses. Buyers should not treat assistance as cash-back money.

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Get a Kentucky Zero Down Mortgage Review

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Before you make an offer, find out which program gives you the best approval path and lowest realistic cash-to-close.

  • FHA loan options
  • VA zero down options
  • USDA Rural Housing eligibility
  • KHC $12,500 down payment assistance
  • Click n’ Close SmartBuy DPA comparison
  • Conventional 3% down options
  • Seller concession strategy

Call or text Joel Lobb at 502-905-3708
Email: kentuckyloan@gmail.com
Website: www.mylouisvillekentuckymortgage.com

Call or Text Joel Email Joel

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Important Disclaimer

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Joel Lobb, Mortgage Loan Officer | NMLS #57916 | EVO Mortgage | Company NMLS #1738461 | Equal Housing Lender. This information is for educational purposes only and is not a commitment to lend or extend credit. All loans are subject to borrower qualification, credit approval, property approval, investor guidelines, agency guidelines, and program availability. Rates, terms, program limits, income limits, grant availability, and assistance programs can change without notice. Not all borrowers will qualify. This website is not affiliated with or endorsed by FHA, VA, USDA, HUD, KHC, FHLB Cincinnati, Fannie Mae, Freddie Mac, Click n’ Close, or any government agency.

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