Learn how to buy a home with no money down in Kentucky. Explore USDA, VA, and down payment assistance options from Quality Home Mortgage.

Think you need 20% down to buy a home? Think again. Many first-time and even repeat buyers in Kentucky are surprised to learn that it’s possible to buy a house with little to no money out of pocket — especially in rural areas like Cadiz, Hopkinsville, and Princeton.

At Quality Home Mortgage, we help buyers across Western Kentucky secure zero-down and low-down-payment mortgages through trusted programs like USDA, VA, and down payment assistance grants. In this post, we’ll break down how it works, who qualifies, and how you can start the process.

Is It Really Possible to Buy a House with No Money Down?

Yes — but you need to meet the right criteria and choose the right loan program. The two most common zero-down mortgage options are:

1. USDA Rural Development Loans
   
   
2. VA Loans for Veterans and Active Duty Service Members
   
   

If you don’t qualify for one of those, you may still be able to buy a home with as little as 3% down, or even less, when combined with down payment assistance programs.

1. USDA Loans – Zero Down in Rural Areas

What Is a USDA Loan?

Backed by the U.S. Department of Agriculture, USDA loans are designed to help low- to moderate-income buyers in rural and suburban areas become homeowners.

USDA Loan Highlights:

• $0 down payment required
  
  
• Low monthly mortgage insurance
  
  
• Competitive interest rates
  
  
• Property must be in a USDA-eligible area
  
  
• Household income must fall within local limits
  
  

Who Should Consider a USDA Loan?

If you’re buying in Trigg, Caldwell, Lyon, or Christian County, chances are you qualify for USDA’s rural eligibility map. Many buyers don’t realize their town or neighborhood is considered “rural” — we can check this for you instantly.

✅ Best for: First-time and repeat buyers in qualifying areas with modest income and credit scores of 640+.

2. VA Loans – 100% Financing for Veterans

What Is a VA Loan?

Guaranteed by the U.S. Department of Veterans Affairs, VA loans offer 100% financing to eligible service members, veterans, and surviving spouses.

VA Loan Benefits:

• No down payment required
  
  
• No private mortgage insurance (PMI)
  
  
• Flexible credit guidelines
  
  
• Low interest rates
  
  
• Can be reused multiple times
  
  

Who Qualifies for a VA Loan?

You may be eligible if you’ve served:

• 90+ consecutive days during wartime
  
  
• 181+ days during peacetime
  
  
• 6+ years in the National Guard or Reserves
  
  
• Or you’re a qualified surviving spouse
  
  

✅ Best for: Eligible veterans and active-duty buyers looking for a no-down-payment loan with long-term affordability.

3. Down Payment Assistance (DPA) in Kentucky

If you don’t qualify for a USDA or VA loan, you may still be able to reduce or eliminate your down payment with a down payment assistance program.

Types of DPA Programs:

• Grants (do not need to be repaid)
  
  
• Forgivable second mortgages
  
  
• Deferred payment loans (payable only when selling/refinancing)
  
  

DPA Eligibility:

• Household income within program limits
  
  
• Property must be your primary residence
  
  
• Typically requires credit score of 620+
  
  
• Completion of a homebuyer education course
  
  

Programs vary by county and loan type, but our team will identify which programs you qualify for and handle the paperwork.

Best for: First-time buyers using FHA, USDA, or conventional loans who need help covering the down payment or closing costs.

Real Stories from Local Buyers

“We thought we’d need $10,000 to buy a house. Turns out, we qualified for a USDA loan and moved in with almost nothing out of pocket. Huge relief.”
— Verified Review, Cadiz KY

“Hiler helped us access a grant to cover our down payment. Without that help, we’d still be renting. She made it possible.”
— First-Time Buyer, Trigg County KY

What About Closing Costs?

Even with a zero-down loan, you may still have closing costs — usually 2–5% of the purchase price. But here’s how you can reduce or eliminate them:

• Ask the seller to cover closing costs
  
  
• Use gift funds from a family member
  
  
• Bundle them into your loan (USDA and VA often allow this)
  
  
• Combine with down payment assistance for full coverage
  
  

We’ll work with your real estate agent and the seller’s side to keep your upfront costs as low as possible.

FAQs – Buying a Home with No Money Down

What credit score do I need for a zero-down loan?

• USDA: 640+ preferred
  
  
• VA: Typically 620+
  
  
• FHA + DPA: 580+ (with 3.5% down), or higher with assistance
  
  

Are there income limits for these programs?

Yes, for USDA and most assistance programs. VA loans do not have income caps.

Can I combine down payment assistance with FHA or USDA?

Yes — and it’s a great way to lower or eliminate upfront costs. We’ll help you match the right assistance program with your loan type.

Do I have to be a first-time buyer?

Not always. Some DPA programs are open to repeat buyers, especially if you haven’t owned a home in the last 3 years.

Ready to Buy with Little or No Money Down?

If saving for a down payment has been holding you back, it’s time to talk to a local expert. At Quality Home Mortgage, we’ll review your goals, run eligibility checks, and guide you to the loan programs that make affordable homeownership possible — without emptying your savings.

63 Lakota Drive, Suite D, Cadiz, KY 42211
(270) 522-0700
qualityhomemortg@bellsouth.net
Mon–Fri: 10:00 AM – 4:00 PM

Call today to find out if you qualify for a zero-down loan — and take the first step toward homeownership in Kentucky.