Do I need perfect credit to qualify?

No. VA loans have no minimum score requirement, USDA loans typically require 580+, and FHA with assistance is available to buyers with scores as low as 580.

What areas of Kentucky qualify for USDA loans?

Around 95% of Kentucky’s land area qualifies as USDA eligible, excluding only major metros like Louisville, Lexington,Fort Knox, Fort Campbell, Bowling Green, Paducah, Owensboro, Northern Kenutcky Cities of Newport, Covington, and a few surrounding areas of the northern most part of Boone, Kenton and Campbell Counties of Kentucky .

Can seller concessions cover my closing costs?

Yes. Most programs allow sellers to contribute toward closing costs, often up to 6% of the purchase price, which can reduce or eliminate out-of-pocket expenses.

How long does it take to close a USDA loan in Kentucky?

On average, USDA loans take 40–50 days to close in Kentucky, due to the additional step of USDA Rural Development approval after lender underwriting.

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Child Support & Mortgage Approval Complete Guide f...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Child Support & Mortgage Approval Complete Guide f...: Child Support & Mortgage Approval: Your Kentucky Guide Child Support Obligations and ...

Credit Inquiry Infographic Slides for YouTube

💳

Hard vs. Soft
Credit Inquiries

What Kentucky Homebuyers Need to Know

Joel Lobb | Kentucky Mortgage Expert

Quick Reference Guide

🟢 Soft Pull

No credit score impact
Pre-qualification only
Not visible to lenders
No authorization needed

🔵 Hard Pull

Required for approval
Minor impact (under 5 pts)
Visible for 2 years
Multiple = 1 (30-45 days)

Joel Lobb | (502) 905-3708

🔴 What Is a Hard Inquiry?

Used for Official Loan Applications

📋 Requires your authorization
👀 Visible to other lenders
📉 Drops score 3-5 points temporarily
⏰ Stays on report for 2 years
✅ Required for mortgage pre-approval

Joel Lobb | Kentucky Loan Officer

🟢 What Is a Soft Inquiry?

Used for Pre-Qualification & Exploration

✨ Zero impact on credit score
🔒 Not visible to other lenders
📱 No formal application needed
💡 Perfect for exploring options
🎯 See what you can afford first

Joel Lobb | NMLS #57916

Credit Score Impact

Soft Inquiry

Points Lost
No Impact!

Hard Inquiry

3-5

Points Lost
Temporary & Minor

Joel Lobb | Kentucky Mortgages

💡

Pro Tip for Rate Shopping

Multiple mortgage hard inquiries within 30-45 days count as ONE INQUIRY for credit scoring purposes.

Shop around without fear!

Joel Lobb | (502) 905-3708

Best Practices: 6-12 Months Before Buying

Avoid New Credit

No new car loans, credit cards, or retail financing

Pay Down Debt

Reduce credit card balances below 30% of limits

Stay Current

Make all payments on time, every time

Get Soft Pull Pre-Qual

Check where you stand with ZERO score impact

Joel Lobb | Kentucky Housing Expert

Ready to Get Started?

🏡 Get a Soft Pull Pre-Qualification

See what you can afford with ZERO impact to your credit score

📞 (502) 905-3708

📧 kentuckyloan@gmail.com

FHA

USDA

KHC

Conventional

Joel Lobb | 20+ Years Experience | 1,300+ Kentucky Families Helped

NMLS #57916 | Equal Housing Lender

How to Buy Your First Home in Kentucky with Zero Money Down: Complete 2025 Guide

How to Buy Your First Home in Kentucky with Zero Money Down

The Complete 2025 Guide to No Money Down Mortgages in Kentucky

By Joel Lobb |Joel Lobb, Kentucky Mortgage Broker FHA, VA, KHC, USDA Mortgage Loans | Updated August 2025

Get Pre-Approved Today

Introduction: The Kentucky Dream of Homeownership

For many Kentucky residents, the dream of homeownership feels just out of reach because of down payment requirements. With the state’s median home price at $224,303 in 2025, a traditional 20% down payment would mean saving nearly $45,000 in cash.

Fortunately, Kentucky offers some of the nation’s most generous no money down mortgage programs, including USDA, VA, FHA with assistance, and Kentucky Housing Corporation (KHC) loans. This guide explains how you can purchase your first Kentucky home with little to no upfront cash.

Kentucky's Top Zero Down Payment Programs

Program	Down Payment	Credit Score	Income Limits	Restrictions
USDA Rural Development	0%	580+	Yes	Rural only
VA Loans	0%	No minimum score but 620 preferred	No	Statewide
FHA + KHC DAP	0% with assistance	580–620+	Yes	Statewide
5% grant toward Purchase Price	0% with assistance	600–640+	No	Statewide

Program Snapshots

USDA Loans

100% financing
Available in 95% of Kentucky
No mortgage insurance

VA Loans

0% down payment for veterans & active duty
No PMI ever
Lowest interest rates

FHA with Assistance

Down payment covered by KHC or lender DPA
Flexible credit scores (580+ for some DPA and 620+ score for KHC $10 Dap loan )
Great for first-time buyers

Important Note

“No money down” doesn’t always mean zero at closing. You may still need money for closing costs (2–5%). The good news: seller concessions, grants, or KHC programs can often cover those too—meaning true zero out-of-pocket homeownership is possible.

Frequently Asked Questions

Can I really buy a home in Kentucky with no money down?

Yes. USDA and VA loans allow 100% financing. FHA loans can reach zero down when paired with Kentucky Housing’s Down Payment Assistance Program (DAP).

Do I need perfect credit?

No. USDA typically requires 580+, FHA allows 580+ with 3.5% down payment and 500 credit score with 10% down payment, and VA has no minimum score requirement but most lenders want a 620 or above.

What if I don’t have closing cost money?

You can use seller concessions, grants, or lender credits to cover closing costs. Many of my clients purchase with $0 at closing.

Ready to Get Started?

Your Kentucky dream home is closer than you think. I’ll guide you step-by-step, help you choose the right program, and work to get you approved quickly.

Call Joel at (502) 905-3708 Email Me for Pre-Approval

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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: The best Kentucky first-time homebuyer programs in...: Top Loan Programs for First-Time Homebuyers in Kentucky FHA, VA, USDA and KHC Down Payment Grants Provided By Joel Lobb, Mortgage Broker FHA...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Credit Score Requirements for First-Time Homebuyer...

Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Credit Score Requirements for First-Time Homebuyer...: Obtaining a mortgage pre-approval is a crucial initial step in the home buying journey for Kentucky first-time homebuyers. Credit score is ...

Kentucky USDA Rural Housing Mortgage Lender: Joel Lobb - #1 USDA Mortgage L...

Kentucky USDA Rural Housing Mortgage Lender: <!DOCTYPE html> Joel Lobb - #1 USDA Mortgage L...: Joel Lobb - #1 USDA Mortgage Loan Officer in Kentucky Joel Lobb - #1 USDA Mortgage Loan Officer in Kentucky As the leading USD...

A little about me.

I have helped over 589 Kentucky families buy or refinance their home over the last 18 years. Realizing that this is one of the biggest, most important financial transactions a family makes during their lifetime, I always feel honored and respected when I am chosen to originate their personal home loan. You can count on me to deliver on what I say, and I will always give you honest, up-front personal attention you deserve during the loan process.

I have several advantages over the large banks in town. First, I can search and negotiate for your loan options through several different mortgage companies across the country to get you the best deal locally. Where most banks will offer offer you their one set of loan products. I have access to over 10 different mortgage companies to broker your loan through to get you the best pricing and loan products that may not fit into the bank's program due to credit, income, or other underwriting issues.

You will not get lost in the shuffle like most borrowers do at the mega banks; you're just not a number at our company, you are a person and we will treat you like one throughout the entire process.

Give us a try or let us compare your options on your next mortgage transaction. Call/text me locally at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications.

Email me at kentuckyloan@gmail.com with your questions

I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer with little money down, we offer Kentucky Housing or KHC loans with down payment assistance.

This website is not an government agency, and does
not officially represent the HUD, VA, USDA or FHA or any other government agency.

NMLS# 57916 http://www.nmlsconsumeraccess.org/

Joel Lobb Senior Loan Officer

kentuckyloan@gmail.com

Company ID #NMLS 1738461
EQUAL HOUSING LENDER
http://www.mylouisvillekentuckymortgage.com/

Customer Testimonials

😃👍

We just moved here the first of January in 2017 from Ohio to the Louisville, KY area and we found Joel's website online. He was quick to respond to us and got back the same day on our loan approval. He was very knowledgeable about the local market and kept us up-to date throughout the loan process Saveand was a pleasure to meet at closing. Would recommend his services.

Angela Forsythe

"We were searching online for mortgage companies in Louisville, Ky locally to deal with and found Joel's website, and it was a godsend. He was great to work with, and delivered on everything he said he would do. I ended up referring my co-worker at UPS, and she was very pleased with his service and rates too. Would definitely vouch for him." September 2016

Monica Leinhardt

"We contacted Joel back in July 2011 to refinance our Mortgage and he was great to work with. We contacted several lenders locally and online, and most where taking almost 60 days to close a refinance, Joel got it done in 23 days start to finish,I would definetly recommmend him. He got us 3.75% with just $900 in closing costs on our FHA Streamline loan.

Kayle Griffin

“Joel is one of the best Mortgage Brokers I have ever worked with in my sixteen years in the real estate and mortgage business.” May 25, 2010

Tim Beck
“Joel has always worked very hard to keep his word and to work out seasonable solutions to difficult problems. He is truly an expert in FHA and other type loans.” September 1, 2010

Nancy Nalley

“I have worked with Joel since 1998. He is a great loan professional.” I refer most of my Louisville, Kentucky area home buyers to him and he always take special care of them. August 23, 2012

Jon ClarK

“Joel Lobb is a real professional in the lending industry, with many years of experience, he is the one to go to for any mortgage lending needs.” August 22, 2011

RICHARD VOLZ , Residential Sales , Remax Foursquare Realty
“When looking to purchase our new home in 2006, I had the pleasure of meeting Joel Lobb. Not only was he personable and easy to reach, he was extremely knowledgable in his field and made sure to find us the best rate and a top notch mortgage company. We were able to complete the process in less than 3 weeks with his expertise. I find Joel to have the utmost high integrity and I recommend him to anyone who say's they are need of mortgage assistance. He is also fantastic and keeping everyone up to date on the latest in the housing industry through his twitter posts. He provided great results for our family and we still communicate to this day!” August 21, 2010
Stacie Drake

"We first use Joel on our new home purchase in 2007 in St Matthews, Kentucky area and he was great to work with. We have since refinanced our home with him in 2010 when rates got really low and he has always delivered on what he says. I could not imagine using anyone else."

Melody Glasscock March 2014

Absolutely Amazing!! I emailed Joel after I had just got a denial from a bank and just thought i would try to get some advice on what my next steps would be to get a house. I honestly didn't expect to even get a reply because my credit is not great. That was about a week and a half ago. I just signed a contract on a house last night. ONLY because of Joel Lobb. He even worked with us throughout the weekend, which shocked me. Best decision I have ever made. THANK YOU SO MUCH FOR WORKING WITH US THROUGHOUT THE ENTIRE PROCESS.

Cee Bellisle August 2018

😃

Contacted him about buying a home and he was great to work with. I was moving to Louisville Ky to take a new job and he walked me through the entire process. He explained to me all the different options for FHA, VA, USDA mortgage loans and credit score requirements versus Fannie Mae. Since I was a first time home buyer I needed alot of help and guidance. I would definitely recommend him. Fast to respond and available to answer questions that I or my realtor had after hours.
Anderson Johnson April, 2018

We moved from Michigan to Northern Kentucky area and we were really impressed. We got a USDA loan no money down and closed in less than 3.5 weeks. We shopped around online with other lenders but Joel was always first to respond and his rates were just a little better than other lenders. He kept us informed through the process along with our realtor and there was absolutely no surprises like we heard from other co-workers and friends that they experienced in their loan process. We have already referred another co-worker to Joel . He's AWESOME!

Patty Kingston July 2018

😍

betty parsons

Wow, what a great loan officer. I was referred to him by our agent and he was great to work with. We used him for a USDA no money down loan in Shelby County and we were really impressed. We were afraid we could not buy a home since we did not have money saved for a down payment, but Joe l was able to get us a zero down loan and we even got our appraisal fee and good faith deposit back at closing. We actually got money back at closing!!! I Can't think him enough. Our family moved from our apartment in the south end of town to get our own home with 5 acres for our kids and 2 dogs, at a payment that is equal to our rent payment also. .Thanks Again Joel. May god bless you

Patty Locker

We contacted Joel about buying a house on our move from Ohio for my husband's job transfer with Ford. We put a lot of trust in him since we were new to the area and first time home buyers in the Louisville KY market, and he always delivered on what he said. It took us a while to find a home due to the lack of homes, but once we got one, he was always quick to respond our questions via text or email ,and kept us informed through the process. We got to meet him at the closing and he was super nice and even got us a closing gift for our home which we didn't expect at all. Super nice guy 😀!!! I would definitely recommend him for a local Home loan in the Louisville area.

pam dolby

I got a VA loan with Joel and he was great. He is an ex-army guy so he could relate to my past experiences of being a veteran and moving around the country a lot. I had some credit issues that required a little extra work but Joel was able to find A VA lender to approve my situation as far as having past bad credit problems and a lower credit score. We closed yesterday on our home here in Louisville and we could not be happier. We finally have a home of our own thanks to Joel . I would definitely recommend him for a mortgage loan. Great experience and closed 8 days before expected close date so we were able to move in early.

I contacted Joel about the $10,000 KY Housing Grant last month and we were able to get it and I just closed on my home. He was great to work with and if you are a first time home buyer here in Louisville, I would definitely contact him. I met him at his office and he was very nice and knowledgeable and kept me informed through the process. No surprises either so I was very happy. I am new homeowner thanks to Joel .

Full Disclosure Policy

This blog is a sponsored blog created or supported by a company, organization or group of organizations. For questions about this blog, please contact Joel Lobb 502-905-3708 or email kentuckyloan@gmail.com NMLS# 57916.

This blog does not accept any form of advertising, sponsorship, or paid insertions. We write for our own purposes. However, we may be influenced by our background, occupation, religion, political affiliation or experience.

This blog abides by word of mouth marketing standards. We believe in honesty of relationship, opinion and identity. The compensation received may influence the advertising content, topics or posts made in this blog. That content, advertising space or post will be clearly identified as paid or sponsored content.

The owner(s) of this blog is not compensated to provide opinion on products, services, websites and various other topics. The views and opinions expressed on this blog are purely the blog owners. If we claim or appear to be experts on a certain topic or product or service area, we will only endorse products or services that we believe, based on our expertise, are worthy of such endorsement. Any product claim, statistic, quote or other representation about a product or service should be verified with the manufacturer or provider.

This blog does contain content which might present a conflict of interest. This content will always be identified.

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Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgages: Child Support & Mortgage Approval Complete Guide f...

Hard vs. Soft
Credit Inquiries