First-Time Home Buyer Programs in Lexington (Fayette County), KY
Lexington and Fayette County first-time buyers: state and federal programs, local market context, and a hand-picked local-pro shortlist.
Available Programs
KHC Down Payment Assistance
Kentucky Housing Corporation
Assistance for down payment and closing costs for qualifying first-time homebuyers. Repayable over 15 years at 4.75%.
- ✓ Up to $12,500 in assistance
- ✓ Can be combined with other programs
USDA Rural Development Loan
USDA
Zero down payment loans for homes in eligible rural areas of Kentucky.
- ✓ No down payment required
- ✓ Competitive interest rates
FHA Loan
Federal Housing Administration
Government-backed loans with lower down payment and credit requirements.
- ✓ Only 3.5% down payment
- ✓ Lower credit score accepted
VA Home Loan
Department of Veterans Affairs
Zero down payment loans for veterans, active military, and eligible spouses.
- ✓ No down payment
- ✓ No private mortgage insurance
Welcome Home Grant
Federal Home Loan Bank of Cincinnati
Grant for down payment and closing costs. Does not need to be repaid. Income must be at or below 80% of MRB limits. Homebuyer must contribute at least $500 of own funds.
- ✓ Does not need to be repaid
- ✓ Not limited to first-time homebuyers
Habitat for Humanity Kentucky
Habitat for Humanity
Partner with Habitat to build or renovate affordable homes with sweat equity.
- ✓ 0% interest mortgage
- ✓ Build equity through sweat equity
KHC Affordable DAP
Kentucky Housing Corporation
Low-interest assistance for lower-income buyers. 1% interest rate, 10-year term.
- ✓ Only 1% interest rate
- ✓ 10-year repayment term
Conventional 97 Loan
Fannie Mae / Freddie Mac
Conventional loan option with just 3% down for first-time buyers.
- ✓ Only 3% down payment
- ✓ PMI can be removed at 20% equity
USDA Rural Eligibility
USDA rural loans are determined by the property address, not the county. Some addresses in Fayette County may still qualify — check your specific address.
Check your address →Local Market
The median home price in Fayette County is approximately $349,000.
Local Resources in Lexington
Fayette County's median home sale price was about $349,000 (Redfin county-level data, last 3 months ending June 2026) — a competitive, fast-moving market where well-priced homes tend to go under contract quickly.
Local Down Payment & Homebuyer Programs
LFUCG First-Time Homebuyer Program
Lexington-Fayette Urban County Government provides non-repayable mortgage subsidies and 0–2% loans to lower-to-moderate income first-time buyers purchasing a home in Lexington. Administered through partner agencies including REACH Inc., Lexington Habitat for Humanity, Community Ventures Corporation, and Lexington Community Land Trust.
Learn more →Housing Counseling Agencies
HUD-approved agencies offering homebuyer education and counseling.
Official Government Resources
Hand-Picked Local Pros in Fayette County
Chosen for a strong, consistent public-review track record and real time in business. We don't reproduce star ratings here. Open a pro to read their reviews and check credentials yourself.
Dauenhauer Plumbing Heating & Air
Lexington, KY
Established 1958. Full-service plumbing, HVAC, and electrical for the Lexington area, with 24/7 emergency availability.
BACK Construction
Lexington, KY
Central Kentucky's premier remodeler, established 1984. Design-build remodeling, additions, and roofing.
Anderson & Rodgers Construction
Lexington, KY
Design-build firm since 2006. Residential design, remodeling, and new construction.
Fast Flow Plumbing
Lexington, KY
Trenchless pipe repair, drain cleaning, water heater repair.
Perfect Circle Construction
Lexington, KY
Owner Phillip Berry trained under a master craftsman. Residential and commercial general contracting, remodeling, home improvements.
Frequently Asked Questions
What first-time buyer programs are available in Lexington? ▼
Lexington residents in Fayette County have access to several programs including the KHC Down Payment Assistance program, FHA loans, and other state and federal options. The programs listed on this page are filtered specifically for Fayette County. Eligibility depends on income, credit score, and other factors — verify directly with program administrators.
Do I need to be a first-time buyer to qualify? ▼
Some programs require first-time buyer status (generally defined as not owning a home in the past 3 years), but others like FHA and USDA loans are available to all qualifying buyers. Check each program's requirements and confirm eligibility with the program administrator.
How do I find a contractor in Fayette County? ▼
The "Hand-Picked Local Pros" section below lists contractors we selected for a strong public-review track record and time in business. We link you to their reviews rather than displaying ratings, and we verify a state license wherever Kentucky licenses the trade (plumbing, HVAC, electrical). Always check reviews, insurance, and references yourself before hiring. You can also browse the full contractor directory.
Are these program listings guaranteed to be current? ▼
No. These listings are informational only. Program details, funding availability, and eligibility requirements change frequently. Always verify directly with the program administrator before making any financial decisions.
Want to see who offers these services locally? View local sponsors →