Government-Backed Loans from Paducah Bank

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Buying a home is one of the biggest financial decisions you’ll ever make, and we’re here to help make it easier. At Paducah Bank, we offer a range of government-backed home loans designed to provide flexible financing options with lower down payments and competitive rates. Whether you're a first-time homebuyer, a veteran, or purchasing a home in a rural area, our USDA, FHA, and VA loans could be the perfect fit for you.
 

What Are Government-Backed Loans?

Government-backed loans are supported by federal programs, which enhances accessibility for borrowers by making it easier to secure financing. These loans are great for borrowers due to their lower down payment options, more flexible credit guidelines, and competitive interest rates.

Things to know!

  • These loans are insured by a U.S. government program, which lowers risk for the lender and often makes it easier for you to qualify.
  • They can be a good option if you don’t have a large down payment saved or if your credit history isn’t perfect.
  • Many borrowers find monthly payments more manageable because these programs may offer competitive interest rates.
  • Each program is designed to meet different needs — for example, FHA helps buyers with lower savings, VA supports eligible veterans and military families, and USDA serves borrowers purchasing in rural areas.
  • You still work directly with Paducah Bank. We will walk you through every step of the process

Types of Government-Backed Loans

USDA Loans

100% Financing W/ No Down Payment
Homebuying can become far more affordable when the down payment is eliminated.
Not exclusive to first-time home buyers.
For people who want to buy or refinance homes in rural areas or certain designated suburbs.
Financial benefits
Competitive rates, mortgage insurance is less expensive and closing costs can be rolled into your loan payments.

VA Loans

No Down payment
100% financing makes VA loans affordable no matter what your pay grade.
Who's eligible
Active duty military, veterans, reservists and some military spouses all qualify for VA Loans.
Limited closing costs
Plus, count on competive rates & no private mortgage insurance (PMI).

FHA Loans

3.5% down payment
Get an affordable mortgage by putting down as little as 3.5%.
Great for buyers with limited credit
Flexible credit guidelines as long as you have a solid employment history.
FICO as low as 600
You'll work directly with friendly Paducah Bank lenders and not government agencies.

Why Consider a Goverment Loan?

Choosing a government-backed loan can help you:

  • Buy a home with little to no down payment
  • Qualify even with less-than-perfect credit
  • Enjoy lower interest rates and flexible terms
  • Reduce upfront costs compared to conventional loans
Are you ready to get started?
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How to Qualify


Each loan type has its own eligibility criteria, but in general, you’ll need:

  • A steady income and employment history
  • A minimum credit score (varies by loan type)
  • To meet income and property location guidelines (for USDA loans)
  • A Certificate of Eligibility (COE) for VA loans

Our Paducah Bank mortgage team is here to guide you through the process and help you find the best loan option for your needs.
 

Paducah Bank Mortgage Team

 

Summer Bostrom
Summer Bostrom
Mortgage Relationship Manager
Rachel Worley
Mortgage Relationship Manager
Michele F Luksic
Mortgage Relationship Manager

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