This guide is part of my statewide financing library — the plain-English rundown of how each loan type works for Kentucky buyers, from Lexington subdivisions to Gorge cabins and everything between. I’m your agent, not your lender: programs described here come from licensed third-party lenders, and I’ll gladly introduce you to ones who know Kentucky.

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What You Can Use It For

• Buying your first home with as little as 3.5% down
• Buying with bruised credit that conventional lenders price harshly
• Purchasing a duplex to fourplex you’ll live in — rent the other units toward the payment
• Condo purchases in FHA-approved projects

Why Borrowers Choose It

• 3.5% down with a 580+ score — and manual underwriting can reach down to 500
• Down payment assistance programs can stack on top
• Credit standards built for recovery stories, not perfection
• Owner-occupied multifamily (2–4 units) lets tenants help pay your mortgage

Program Highlights

• 3.5% down payment with a 580 FICO or higher; manual underwriting down to 500
• Max loan amount based on county limits
• Down payment assistance available
• Owner-occupied only — SFR, 2–4 units, condo
• Full income documentation; minimum 2 years employment history
• Monthly mortgage insurance applies

Highlights reflect lender program guidelines at the time of writing — programs change, and your terms depend on your full application.

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FHA in Our Counties

FHA county loan limits comfortably cover typical home prices across Lee, Powell, Wolfe, Estill, and Madison counties, so the program’s low down payment does real work here. Pair it with Kentucky down payment assistance and the cash needed at closing can shrink dramatically. First home in Beattyville, Irvine, or Stanton? This is usually the first program we price.

Common Questions

What’s the catch with FHA?

Mortgage insurance — you pay a monthly premium that protects the lender, and on most FHA loans it sticks for the life of the loan. The standard play: buy FHA now, build equity, refinance to conventional later and drop it.

Can I use FHA for a rental property?

Not directly — FHA is owner-occupied only. The famous exception is house hacking: buy a 2–4 unit property FHA, live in one unit for the required period, rent the rest. For pure rentals, look at the DSCR loan instead.

Buying pure rentals? See DSCR loans.

Equal Housing Lender. This is not a commitment to lend or extend credit. Programs, rates, terms, and conditions are subject to change without notice; all applicants are subject to credit and underwriting approval, and not all applicants will qualify. Program details shown reflect available lender guidelines at the time of writing and may differ at application. Consult your accountant about tax matters. The loan programs described on this page are offered by licensed third-party lenders, not by Marcos Gil. Marcos is a licensed Kentucky real estate agent — not a mortgage loan originator — and can introduce you to a licensed loan officer for any program here. Verify any lender or loan officer at NMLS Consumer Access: nmlsconsumeraccess.org.