How much down payment do I need to buy a house in Kentucky?

You can buy a home in Kentucky with as little as 0% down (VA/USDA), 3% down ($5,850 conventional), or 3.5% down ($6,825 FHA) on the median-priced home of $195,000.

What income do I need to buy a home in Kentucky?

To afford the median-priced home in Kentucky ($195,000) with a 30-year mortgage at 6.1%, you typically need a household income of approximately $47,834 per year (using the 28% rule). The median income in Kentucky is $55,573.

What is the FHA loan limit in Kentucky for 2026?

The FHA loan limit in Kentucky for 2026 is $472,030. This means first-time buyers using FHA loans can finance up to this amount with just 3.5% down payment.

First-Time Home Buyer Kentucky 2026

Q: What first-time home buyer programs are available in Kentucky?

Kentucky offers 2 major first-time buyer programs including KHC Regular DPA, KHC Affordable DPA. These programs provide grants, forgivable loans, and below-market rates to help with down payment and closing costs.

Your complete guide to buying your first home in Kentucky. 2+ down payment assistance programs, FHA loans from 5.9%, and step-by-step guidance.

Median Price

$195,000

Min Down (FHA)

$6,825

DPA Programs

Best Rate

5.9%

Check My Kentucky Eligibility

What First-Time Buyer Programs Are Available in Kentucky?

Kentucky offers 2 major first-time home buyer assistance programs. These include KHC Regular DPA, KHC Affordable DPA. Programs provide up to $10,000 in down payment assistance through grants, forgivable loans, and below-market interest rates.

How Much Do I Need to Buy in Kentucky?

You can buy a home in Kentucky with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$6,825), and conventional loans start at 3% ($$5,850) on the median price of $195,000.

Loan Type	Down Payment	$ Amount	Monthly P&I	Min Credit
VA Loan	0%	$0	$1,150	620
USDA Loan	0%	$0	$1,182	640
Conventional 3%	3%	$5,850	$1,146	620
FHA Loan	3.5%	$6,825	$1,116	580
Conventional 20%	20%	$39,000	$945	620

Kentucky Down Payment Assistance Programs

KHC Regular DPA

Down payment assistance up to $10K

Up to $10,000forgivable

KHC Affordable DPA

Reduced rate with DPA for lower income

Up to $6,000grant

5 Steps to Buy Your First Home in Kentucky

To buy your first home in Kentucky, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.

Check Your Credit & Finances

Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In Kentucky, you may need as little as $6,825 for an FHA down payment.

Get Pre-Approved

Compare rates from at least 3 lenders. Current Kentucky rates: 6.1% (30-year), 5.9% (FHA). Pre-approval shows sellers you're serious and locks your rate.

Apply for Kentucky DPA Programs

Kentucky has 2+ DPA programs. The KHC Regular DPA offers up to $10,000. Apply early—funding can be limited.

House Hunt & Make an Offer

Popular cities in Kentucky: Louisville, Lexington, Bowling Green, Owensboro, Covington. Median price is $195,000 (+7.0% YoY). Work with a local real estate agent who knows the market.

Close on Your New Home

Closing costs in Kentucky typically run 2-5% of the purchase price ($5,850-$9,750). Some DPA programs also cover closing costs.

Start Your Kentucky Home Buying Journey

Get pre-approved in minutes and see what you qualify for.

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Kentucky First-Time Buyer FAQ

What first-time home buyer programs are available in Kentucky?

Kentucky offers 2 major programs: KHC Regular DPA, KHC Affordable DPA. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.