What Every First-Time Home Buyer in Kentucky Needs to Know

A First-Time Home Buyer’s Guide to Kentucky

Thinking about buying your first home in Kentucky? Whether you’re house hunting in Cadiz, Hopkinsville, or anywhere across Western Kentucky, understanding the basics of the mortgage and home buying process will save you time, money, and stress.

At Quality Home Mortgage, we’ve been helping first-time home buyers since 2004. In this guide, we’ll break down the most important things you need to know to make your first purchase a success.

1. Know What You Can Afford

Start by calculating what you can realistically afford based on your income, current debts, and expected monthly mortgage payment. Don’t forget to factor in:

• Property taxes
  
  
• Homeowners insurance
  
  
• Mortgage insurance (if applicable)
  
  
• Utilities and maintenance
  
  

Pro tip: Use a mortgage calculator or ask us for a free pre-approval estimate.

2. Check Your Credit Score

Your credit score directly affects your loan eligibility and interest rate. Most loan programs require:

• 580+ for FHA loans (with 3.5% down)
  
  
• 620+ for USDA and conventional loans
  
  
• 620+ for VA loans (typically)
  
  

If your score is lower, don’t panic. We offer free credit reviews and tips for improving your score quickly.

3. Explore First-Time Buyer Loan Options

Kentucky first-time buyers may qualify for a variety of loan programs:

FHA Loans

• 3.5% down
  
  
• Flexible credit guidelines
  
  

USDA Rural Housing Loans

• 0% down
  
  
• Must meet income and property eligibility (Cadiz and many rural areas qualify)
  
  

VA Loans

• 0% down
  
  
• For veterans, active-duty military, and eligible spouses
  
  

Conventional Loans

• As little as 3% down
  
  
• Great for buyers with strong credit
  
  

We’ll help you compare loan types and match you with the best fit.

4. Ask About Down Payment Assistance

Many first-time buyers in Kentucky qualify for down payment assistance (DPA) through:

• Kentucky Housing Corporation (KHC)
  
  
• Local grants and non-profits
  
  
• Employer assistance programs
  
  

Some programs offer forgivable loans or grants up to $10,000.

5. Get Pre-Approved

Before you start house hunting, get pre-approved for a mortgage. This shows sellers you’re serious and tells you how much home you can afford.

We’ll walk you through:

• Reviewing your credit and income
  
  
• Estimating your budget
  
  
• Providing a pre-approval letter for your realtor

6. Work with a Local Realtor

A trusted buyer’s agent can help you:

Find listings that meet your needs

• Schedule showings
  
  
• Negotiate your offer
  
  
• Coordinate inspections and closing
  
  

We can recommend agents who specialize in first-time buyers in your area.

7. Prepare for Upfront Costs

Even with assistance, you’ll need to budget for:

• Home inspection
  
  
• Appraisal
  
  
• Earnest money deposit
  
  
• Moving expenses
  
  

We’ll explain which costs can be covered by your loan or negotiated with the seller.

Real Buyer Testimonial

“We thought buying a home would be way more complicated, but Quality Home Mortgage explained everything step by step. Thanks to their guidance, we closed on our first house with just 3.5% down and no stress.”

— Verified First-Time Buyer, Western KY

FAQs – First-Time Buyers in Kentucky

Can I buy a home with no money down?

Yes — USDA and VA loans offer zero down for qualified buyers. Ask us if your location and income qualify.

How long does the buying process take?

Typically 30–45 days from accepted offer to closing. Getting pre-approved early helps speed things up.

Do I need a real estate agent?

It’s strongly recommended. As a buyer, you don’t pay the agent’s fee — it’s covered by the seller.

What if I don’t have perfect credit?

That’s okay. FHA loans are designed for buyers with less-than-perfect credit. We’ll help you find a solution.

Ready to Become a Homeowner?

You don’t have to figure this out alone. At Quality Home Mortgage, we simplify the process, answer your questions, and help first-time buyers in Kentucky succeed.

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

Call today or apply online to start your journey toward homeownership!