Thank you for visiting KentuckyFirstTimeHomeBuyer.com. My name is Joel Lobb (NMLS #57916), a Kentucky mortgage loan officer with over 20 years of experience helping more than 1,300 Kentucky families buy or refinance a home.

If you’re a first-time homebuyer in Kentucky – or you simply haven’t bought in a while – this page will walk you through your best mortgage options, what it really takes to qualify, and how to get a clear, honest pre-approval.

Serving all 120 counties in Kentucky with local expertise in FHA, VA, USDA Rural Housing, Conventional, and Kentucky Housing Corporation (KHC) down payment assistance.

Call or Text: 502-905-3708 | Email: joel@kentuckylender.com
Free, no-pressure consultation for Kentucky homebuyers.

Top Kentucky Mortgage Programs for First-Time Homebuyers

Most of my Kentucky buyers use one of these five options:

  1. USDA Rural Housing – 100% Financing
    • No down payment in eligible rural areas
    • Income limits apply by county and household size
    • Great for buyers with limited savings looking outside major cities
    Learn more about Kentucky USDA loans »
  2. FHA Loans – 3.5% Down Payment
    • Flexible credit requirements
    • Allows grants and gifts for down payment
    • Popular with first-time buyers who need a little more flexibility
    See Kentucky FHA loan requirements »
  3. VA Loans – 0% Down for Eligible Veterans
    • No down payment for eligible Veterans and active-duty service members
    • No monthly mortgage insurance
    • Flexible credit guidelines with strong residual income rules
    Explore Kentucky VA home loans »
  4. Conventional Loans – 3–5% Down
    • Best for higher credit scores and stronger down payments
    • Mortgage insurance can be removed once you reach 20% equity
    Compare Conventional mortgage options »
  5. KHC Down Payment Assistance (KHC DAP)
    • State-backed programs that can cover part of your down payment and/or closing costs
    • Income and purchase price limits apply
    See current Kentucky Housing down payment assistance options »

Tip: I will run the numbers on all of these side-by-side so you can see payment, cash-to-close, and pros/cons before you choose a program.

What It Takes to Qualify for a Kentucky Mortgage in 2026

1. Income and Debt-to-Income Ratios

Underwriters look at how much of your gross monthly income goes to your new house payment and your total debts:

  • Housing ratio (front-end): Ideally around 33% or less of your gross monthly income going to principal, interest, taxes and insurance (PITI).
  • Total debt ratio (back-end): Ideally 45% or less of your gross income going to your new house payment plus car loans, credit cards, student loans, etc.

There are exceptions above these numbers depending on the program and your overall profile. I’ll help you understand your personal max price range before you start making offers.

2. Assets & Down Payment

You’ll need to show where your down payment and closing costs are coming from. This can include:

  • Checking and savings accounts
  • 401(k) or retirement funds
  • Gift funds from eligible relatives
  • Approved down payment assistance (like KHC DAP)

Some programs – such as USDA, VA and certain KHC options – still allow true zero-down in Kentucky if you qualify.

3. Credit Scores

Every program has its own credit guidelines, and most lenders also add their own overlays. General ranges I see in Kentucky:

  • FHA: Minimum 500 by rule; most lenders want 580–620+
  • VA: No official minimum; many lenders prefer 580–620+
  • USDA: Automated approvals are much easier at 640+
  • Conventional: Typically 620+, better pricing at 680, 700, 740+

If your scores are a little low, I can pull a full tri-merge credit report, review it with you, and outline specific action steps to get you mortgage-ready.

Step-by-Step: How to Get Pre-Approved in Kentucky

  1. Initial call or text
    We talk through your goals, budget, and timing and I’ll recommend which programs fit best.
  2. Online application & documents
    You complete a secure online application and upload income and asset documents.
    Start your secure pre-approval »
  3. Full pre-approval
    I run your file through automated underwriting (DU, LP or GUS) and review exceptions with my investors if needed.
  4. Clear numbers before you shop
    You’ll get a written breakdown of payment, cash-to-close, and estimated closing costs so you can shop with confidence.
  5. Ongoing support
    I stay in touch with your Realtor, title company, and KHC or USDA as needed to keep things moving smoothly.

Frequently Asked Questions for Kentucky First-Time Homebuyers

Do I have to be a first-time homebuyer to use KHC?

No. Many Kentucky Housing Corporation programs can be used by repeat buyers as long as you meet the credit, income, and purchase price limits.

Can I buy a home with zero down in Kentucky?

Yes, if you qualify for USDA, VA or use certain KHC down payment assistance options combined with FHA or Conventional financing. I’ll show you if a true zero-down option is realistic for your situation.

How long does the mortgage process take?

Most Kentucky loans close in about 30–45 days, depending on the program, appraisal, title work, and any KHC or USDA approvals.

What areas in Kentucky are eligible for USDA?

USDA is designed for properties outside major metro cores. Many areas in suburban and rural counties still qualify. I’ll help you check any property address against the latest USDA eligibility map.

Ready to Talk About Your Kentucky Mortgage Options?

Whether you’re in the very early “just thinking about it” stage or you’re ready to write an offer this week, I’m happy to answer questions, review your credit, and give you straight answers with no sales pressure.

Call/Text: 502-905-3708
Email: kentuckyloan@gmail.com

NMLS #57916 | Company NMLS #1738461
Equal Housing Lender | This is not a commitment to lend. All loans subject to credit approval and underwriting guidelines.