first time home buyer loans louisville ky guide and options

What to know before you apply

Buying your first home in Louisville means balancing budget with location. Lenders look at credit score, debt-to-income, and savings. Many borrowers qualify with scores around 620, while FHA may accept 580 with flexible terms. A steady job history and realistic payment target are essential.

Popular loan types and assistance

Common choices include FHA for smaller down payments, Conventional 3% down for strong credit, VA for eligible veterans, and USDA for qualifying areas on the metro’s edge. Local help can bridge the gap on down payment and closing costs.

• Kentucky Housing Corporation (KHC) down payment assistance, potential forgivable or repayable options.
• Louisville Metro Down Payment Assistance for income-eligible buyers within city limits.
• Mortgage Credit Certificate through KHC to reduce federal tax liability.
• Lender credits and seller concessions to offset fees.
• Homebuyer education courses that unlock certain programs and sharpen budgeting.

Simple next steps

Get preapproved, compare Loan Estimates from at least three Louisville lenders, and ask about total cash to close and rate locks. Confirm property eligibility for USDA, and verify income limits for KHC programs before you write an offer.