Illustrative photo: Kindel Media on Pexels (Pexels License). Cropped.

Your first purchase is the one where good guidance changes the most — you don’t know what you don’t know, and the market charges tuition. Consider this the syllabus.

Programs Worth Asking a Lender About

• Kentucky Housing Corporation (KHC) — the state’s housing agency offers loan programs and down-payment assistance for eligible buyers; terms change, so verify current offerings at kyhousing.org or with a KHC-approved lender
• USDA Rural Development loans: possible no-down-payment financing for eligible buyers in eligible areas. Check an address on USDA’s eligibility map. See USDA loans.
• FHA loans: government-insured loans with their own down-payment and credit rules. Ask a lender for current terms. See FHA loans.
• VA-backed loans, for eligible service members, veterans and surviving spouses: VA says these often require no down payment as long as the price isn’t higher than the appraised value, need no PMI or MIP, and may carry a one-time VA funding fee (VA.gov). See VA loans.

I’m your agent, not your lender — program details, rates, and eligibility come from licensed loan officers. Talk to more than one licensed loan officer and compare Loan Estimates.

Related guides: Kentucky First-Time Homebuyer Guide · Kentucky Down Payment Assistance · First-Time Buyer Financing in Kentucky · Getting Pre-Approved · The Final Walkthrough in Kentucky

The Five Mistakes That Cost First-Timers Most

1. Shopping houses before shopping loans. Talk to a lender about pre-approval before you shop.
2. Forgetting the costs after closing. Homes need money after closing — furnace season doesn’t care that you just closed. Your Loan Estimate shows your estimated cash to close; questions about down-payment options go to your lender.
3. Skipping inspections to win a bid. In older Kentucky homes, skipping the inspection can leave expensive problems undiscovered. Older than 1978? Ask about lead paint (10-day lead inspection).
4. Big purchases before closing. Before closing, ask your lender before opening new credit or making large purchases.
5. Using the listing agent “to keep it simple.” Simple for whom? Get representation whose loyalty runs to you.

Costs you’ll see as a first-time buyer, with sources

General information, not legal or tax advice.

• Your Loan Estimate arrives no later than the third business day after the lender receives your application (12 CFR 1026.19(e)(1)(iii)). Your Closing Disclosure must reach you at least three business days before closing (12 CFR 1026.19(f)(1)(ii)(A)). Compare the two line by line. See Kentucky closing costs.
• County recording fees have statutory base fees: $63 to record a mortgage of up to 30 pages, plus $3 per additional page, and $33 for a deed of up to five pages (KRS 64.012, effective July 15, 2026). KRS 64.012(3)(a) also entitles the clerk to a $10 reimbursement for the permanent storage of these records. Confirm the total with the county clerk.
• Kentucky’s transfer tax is on the seller, the grantor (KRS 142.050(2)), so as a buyer you won’t owe it unless your contract shifts it.
• Using IRA money? The IRS says that even under age 59½, you don’t pay the 10% additional tax on up to $10,000 of IRA distributions used to buy, build or rebuild a first home (lifetime limit; requirements apply), per IRS Publication 590-B. Regular income tax may still apply. Talk to your tax advisor first; I’m your agent, not a tax advisor.
• Down payment assistance: Kentucky Housing Corporation’s programs and terms change, so check current offerings at kyhousing.org or with a KHC-approved lender. See Kentucky down payment assistance.

Common Questions

How much do I need saved to start?

It depends on the loan program, your credit and the price. Some programs allow low or no down payment for eligible buyers, and closing costs and reserves come on top. Your real number comes from a lender’s pre-approval and Loan Estimate; ask the lender up front whether any fee applies. I’m your agent, not a lender.

Is buying really better than renting?

Not always. It depends on how long you’ll stay, local rents, rates and your stability. I’ll show you the housing costs; your lender and tax advisor cover the rest, and sometimes the answer is ‘keep renting for now.’

What does my agent cost me as a buyer?

Compensation is negotiable and set out in writing in your buyer agreement before we tour any homes. You’ll know exactly how it works before we look at a single house. See Kentucky buyer representation.

Can I use IRA money for my first home?

The IRS says that even under age 59½, you don’t pay the 10% additional tax on up to $10,000 of IRA distributions used for a first home, subject to its requirements (IRS Publication 590-B). Regular income tax may still apply. Ask your tax advisor first.

Related guides: The Buying Process · Closing Costs · Choosing an Agent — when you’re ready, start at Buy With Marcos.

Last updated: November 3, 2026