Loan Programs

Buying a home is exciting, and Kentucky Housing Corporation (KHC) is here to help! We offer several types of home loans to fit different needs and situations. All our loans have a 30-year fixed interest rate, so your main payment will never change.

A Program for Each Type of Homebuyer

The most you can borrow for a home is $566,354. All of our loans can also be combined with our Down Payment Assistance (DPA), which can help you with the upfront costs of buying a home.

Each loan type offers different advantages for different types of homebuyers and their situation.

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Conventional Loans

This is a common type of home loan. It’s a great option if you have a good credit score.

  • Who it's for: First-time and repeat homebuyers.
  • Down Payment: You'll need at least 3% of the home's price.
  • Credit Score: A minimum score of 660 is needed.
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FHA Loans*

FHA loans are insured by the government and are a popular choice, especially for first-time buyers who might have less saved up or a lower credit score.

  • Who it's for: First-time and repeat homebuyers.
  • Down Payment: You'll need at least 3.5% of the home's price.
  • Credit Score: A minimum score of 620 is needed.
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VA Loans*

These loans are a special benefit for military service members and veterans.

  • Who it's for: Qualified veterans and active-duty military members.
  • Down Payment: Often, no down payment is required!
  • Credit Score: A minimum score of 620 is needed.
  • Extra Perk: You won't have to pay monthly mortgage insurance, which can save you money.
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RHS Loans*

This loan is for people who want to buy a home in a rural part of Kentucky.

  • Who it's for: Homebuyers in areas defined as "rural" by the government (Rural Housing Services).
  • Down Payment: You might not need a down payment for this loan.
  • Credit Score: A minimum score of 620 is needed.

The loans marked with an asterisk (*) are available as Mortgage Revenue Bond (MRB) loans.

*What is an MRB Loan?

For you, the homebuyer, this just means there are a few special rules to get one:

  • Mainly for First-Time Homebuyers: In most of Kentucky, you have to be a first-time homebuyer to use an MRB loan.
  • Income Limits: Your household income must be below a certain amount, which varies by county.
  • Targeted Areas: In certain areas of the state, both first-time and repeat homebuyers can use these loans.

A KHC-approved lender can quickly tell you if you meet the income and location rules for an MRB loan.

Ready for the Next Step?

Now that you have an idea of your budget, an expert can help you explore loan programs and down payment options.

Find a KHC-Approved Lender

Plan Your Purchase

Understanding the numbers is the first step toward feeling confident on your homebuying journey. Use our simple, interactive tools to get a clearer picture of your financial landscape.

Your Financial Toolkit

These tools can help you estimate what's possible.

How Much Can I Afford?

A simple calculator with inputs for income and monthly debts.

Estimate My Payment

A simple calculator with inputs for home price and down payment.