FHA Loans

Louisville Kentucky Skyline.

Key Takeaways

  • Designed for borrowers with low and modest incomes
  • A popular choice for first-time homebuyers
  • Only 3.5% down payment
  • Flexible credit score requirements
  • Low rates on fixed-rate and adjustable-rate loans 
  • No pre-payment penalties
  • Manufactured and mobile homes ineligible
  • Maximum loan amounts vary by county

What is a Kentucky FHA Loan? 

For decades, the Federal Housing Administration has helped remove financial hurdles, making it easier for Kentuckians across the Commonwealth obtain affordable mortgages. 

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). It’s designed to help people who might not qualify for a conventional mortgage, especially first-time homebuyers or those with less-than-perfect credit buy a home.

At Paducah Bank, our lenders are ready to help you explore your options and determine whether an FHA loan is right for you.

How to Apply for a FHA Loan?

Our Paducah Bank mortgage lenders are here to answer your questions, explore your financing options, and help you take the next step toward homeownership.

Schedule an Appointment

Kentucky FHA Loan Requirements


  • 2026 FHA Loan Limits in Kentucky: For most Kentucky counties, the single-family home limit is  approximately $541,287 .
  • Minimum Credit Score: Typically 580+ for a 3.5% down payment. Scores between 500–579 may still qualify with 10% down.
  • Down Payment: As low as 3.5%. Gift funds from family members are generally allowed with documentation.
  • Debt-to-Income Ratio (DTI): FHA generally prefers a DTI below 43%.
  • Employment and Income: Steady employment and verifiable income are required.
  • Primary Residence: The home must be your primary residence. FHA loans are not intended for vacation homes or investment properties.
  • Mortgage Insurance: FHA loans require an upfront  mortgage insurance premium (UFMIP)  and annual mortgage insurance premiums (MIP), typically paid monthly.
  • Property Requirements: The home must meet FHA appraisal and safety standards.
  • Kentucky-Specific Notes:  Kentucky Housing Corporation (KHC)  offers programs that may provide down payment assistance for eligible buyers.

Why Paducah Bank?

Paducah Bank is proud to be recognized as a 5-Star rated bank, reflecting our strong financial performance, stability, and commitment to responsible banking.

5-Star Rated Bank
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