Saving for a down payment is the part that keeps a lot of people renting longer than they want to. The good news is that Kentucky buyers have options, and many people don't realize they might qualify for help. Here's where I'd start.
Start with Kentucky Housing Corporation
Kentucky Housing Corporation, usually called KHC, is the state's housing finance agency. It offers home loan programs and down payment assistance for eligible buyers. Program amounts, income limits and rules change from time to time, so the best place for current details is KHC's own website or a lender who works with KHC loans.
Don't assume you won't qualify. Plenty of buyers are surprised by the income limits.
Ask about loan types, too
Down payment assistance is only one piece. The type of loan you choose also changes how much cash you need up front. Some loan programs allow a small down payment, and VA and USDA loans can allow no down payment at all for buyers who are eligible. A good lender will walk you through which ones fit your situation.
If you've served, take a look at my VA home loans page. That benefit is worth understanding.
Questions to ask your lender
- Which down payment assistance programs do I qualify for?
- Is the assistance a grant, a forgivable loan or a second loan I'll repay?
- Do I need to take a homebuyer education class?
- How does the assistance change my monthly payment?
- About how much cash should I plan to bring to closing?
Remember the other costs
Even with help on the down payment, you'll want money set aside for earnest money, your home inspection and closing costs. Your lender will give you a Loan Estimate that lays out the numbers, and I'm always happy to go over it with you so nothing catches you off guard.
Your next step
The easiest way to find out what you qualify for is to talk with a lender. If you'd like a starting point, I keep a short list of lenders I trust, and you're always free to choose any lender you like. Once you know your numbers, we can start looking at homes that actually fit your budget.
New to all of this? My first-time buyer page walks through the whole process.
