Home Buyers Frequently Asked Questions

Values are still affordable vs. national averages and appreciation is steady. If you’ll stay 3–5+ years and are financially ready, buying now is reasonable—refi later if rates drop.

Conventional as low as 3% for qualified first-timers; FHA 3.5% (more with lower scores). KHC offers down-payment assistance for eligible buyers.

Conventional targets 620–660+; FHA often 580+ (some lenders higher). Better scores improve rate and mortgage insurance costs.

Roughly 2–5% of price (lender/title/appraisal/recording/escrows). You can sometimes negotiate seller credits or use assistance to offset.

Commonly ~30–45 days depending on loan type, appraisal, title, and repairs.

Closings are facilitated by a title company/attorney; your agent will coordinate the local process and required pros.

Both are affordable, but many buyers find owning builds equity at a similar monthly payment, especially outside the largest metros.

Use a 28/36% DTI guide: housing ≤28% of gross income; total debt ≤36–45% (lender-specific). Get a lender pre-approval for a precise ceiling.

General home, termite/WDI, radon (popular in KY), and septic/well in rural areas. Specialty (chimney, roof, foundation) as needed.

Popular areas still see multiple offers. Strong pre-approval, clean contingencies, and realistic pricing help you win without overpaying.

Most loans require an escrow for taxes/insurance collected monthly; some allow waivers with stronger profiles.

A good-faith deposit (often 1–2% locally) applied to closing; it’s refundable per contract terms if contingencies fail.

Kentucky Housing Corporation (KHC) loans plus down-payment assistance; also FHA/VA/USDA options. Ask a KHC-approved lender.

Share ID, income docs (W-2/tax returns), bank statements, and authorize credit. Many lenders issue same-day pre-approvals.

They count in DTI. Income-driven payments may help; conventional/FHA treat deferred loans differently—have lender model it.

Yes—allowed by most programs with a gift letter and documentation of transfer. Some minimum borrower contribution may apply.

Private mortgage insurance for low-down loans. On conventional loans it can drop around 78–80% LTV; FHA requires refi to remove.

No. 3–5% conventional or 3.5% FHA (0% VA/USDA) are common. 20% avoids PMI but isn’t required.

Inspection, appraisal, financing, title, and sometimes sale-of-home. Your agent will tailor them to the property/market.

Independent valuation for the lender. If low, options include price renegotiation, seller credit, or buyer gap funds.

Budget for closing costs (2–5%), inspections, appraisal, moving, utility deposits, and initial maintenance.

Pros: warranties, energy efficiency. Cons: timeline, premiums, fewer mature neighborhoods. Get agent representation and inspect anyway.

Yes—virtual tours, digital signatures, mobile notary/mail-away, and wired funds are common. Your agent + title team handle logistics.

Define commute, schools, budget, and lifestyle. Shortlist Louisville/Lexington/NKY for urban/suburban; lakes or mountains for recreation.

KY has a flat state income tax and generally moderate property taxes; Social Security isn’t taxed. Verify local rates by county/city.

No, but it helps. Many buyers attend virtually; request photos/video walk-throughs of issues and repair receipts.

Standard: keys at funding/recording. Negotiate post-occupancy if seller needs time; confirm utility transfer dates.

Deep due diligence: HD video, floor plan, measurements, disclosure review, comprehensive inspection + contingency window.

Plan to register vehicles and obtain a KY driver’s license shortly after residency; verify county clerk requirements.

Top systems in Louisville/Lexington/NKY; regional hospitals elsewhere. Rural specialists may require travel.

Strengthen terms (tight timelines, higher EMD, solid pre-approval). A strong agent levels the playing field.

Strong districts in Oldham Co., NKY (e.g., Fort Thomas), and many Lexington/Louisville suburbs; verify by address and program fit.

USDA maps show eligible areas (most of KY outside large metros). Income and property guidelines apply.

Water potability/flow test for wells; full septic inspection/pump-out and locate tank/lines. Confirm permits if updated.

Order a new survey if uncertain; verify easements, access, and fences vs. deed. Rural tracts can have old, vague descriptions.

Check fixed wireless, fiber expansions, Starlink, or LTE home internet. Verify speeds before closing.

Order flood cert; review FEMA maps. Soil tests for building/septic; slope drives cost for grading/driveways.

Confirm which rights convey; Eastern KY may have severed mineral rights. Have the title company/attorney verify.

Ag/forestry use may reduce assessed value. Check county programs and filing windows after closing.

Confirm condition, utilities, and what conveys. Some equipment/fixtures are excluded—list them in writing.

Distance to hydrant/station affects premiums. Ask insurer to quote early; consider on-site water storage for remote areas.

Land loans require bigger down and shorter terms. Barndo/new-build: use construction-to-perm or local lenders familiar with the product.

Yes—Social Security not taxed; retirement income has an exclusion. Property taxes are moderate.

Lake regions (Lake Cumberland; Kentucky Lake/LBL), Lexington/Louisville suburbs, Danville, Paducah, Owensboro.

Look for ranch plans, patio homes, condos with elevators, and communities with exterior maintenance included.

Stay within an hour of a regional hospital for specialists; Louisville/Lexington offer the highest concentration.

Some 55+ options exist near major metros/lakes. Review covenants, dues, and amenity packages before purchase.

Generally below U.S. average; utilities and insurance vary by region and home age—get quotes upfront.

Prioritize single-story living, minimal exterior upkeep, and proximity to care, groceries, and social groups.

Choose lock-and-leave communities/condos; set up remote thermostats and local caretakers.

Discuss TOD deeds, trusts, and beneficiary designations with an attorney to streamline inheritance.

Zero-step entry, wider doors, curbless shower, grab bars, lever handles, good lighting, and main-level owner’s suite.

Often yes—low prices vs. rents in Louisville, Lexington, Bowling Green, NKY, and college/lake markets can produce healthy yields.

Urban cores + suburbs (Louisville/Lexington/NKY), Bowling Green growth corridors, and STR-friendly lake/recreation areas.

Generally balanced to landlord-friendly outside bigger cities; always follow notice/escrow laws and local ordinances.

Confirm city/county STR rules and HOA limits; invest near marinas, trails, or attractions; plan pro cleaning and dynamic pricing.

Roof/HVAC/water heater, exterior paint, flooring, appliances. Reserve 5–10% of rents for long-term replacements.

Conventional non-owner loans (20–25% down), DSCR loans for portfolio growth, local banks for small multis, HELOCs for down payments.

Allowed—coordinate with a qualified intermediary; mind timelines (45/180 days) and like-kind rules.

Typical full-service fees 8–10% of collected rent + lease-up fee. Vet managers for reporting, maintenance, and legal compliance.

Check seasonality and tenant mix; model vacancy spikes (summer/winter). STRs need occupancy and ADR comps, not just annual rent.

Landlord policies, STR riders, liability umbrellas, and flood where applicable. Get quotes before binding contracts.

Big-city amenities (Derby, dining, arts) with modest costs; diverse neighborhoods from historic to new-urbanist.

St. Matthews, Middletown, J-Town, Prospect; Oldham County nearby for top schools and low crime.

Manageable vs. larger metros; I-64/65 peak slowdowns. Choose housing near work/schools to simplify.

Older systems/windows, potential knob-and-tube, masonry/stone maintenance. Budget for preservation-minded repairs.

Most demand east/northeast (schools/retail). West/South offer value; research micro-areas for fit and safety.

Active in east/southeast corridors; verify HOA, taxes, and build timelines; still inspect new construction.

Ohio River/creek corridors can map in flood zones. Order flood cert and quote flood insurance if near waterways.

Condos = lower exterior upkeep, HOA dues & rules; SFH = control and yard. Compare total monthly costs.

UPS Worldport, healthcare hubs, Ford, GE Appliances; pick commute-friendly neighborhoods.

Crime is localized; many east/northeast areas are low-crime. Review block-level data with your agent.

Horse farms + college-town energy, high education levels, urban growth boundary supports stable values.

Chevy Chase/Ashland Park (historic), Beaumont/Hamburg (newer), Masterson Station (value), plus nearby Georgetown/Versailles.

Fayette County offers magnets (e.g., SCAPA), strong highs like Dunbar/Henry Clay. Verify school zones by address.

Inside New Circle = charm and walkability; outside = newer builds/HOAs. Inspection scope differs—plan accordingly.

Convenient to Rupp/UK/dining; confirm parking, HOA reserves, and short-term rental rules.

In demand areas, appraisals can trail asking; discuss gap strategies and comps with your agent.

Wheel-and-spoke city; New Circle/Man o’ War handle cross-town. Choose near work/school to simplify.

Nicholasville, Versailles, Winchester, Richmond (separate section). Balance savings vs. commute.

Newer suburbs may have HOAs for amenities/maintenance. Review covenants and dues.

Smaller, cleaner, lower violent crime; fewer big-city events but prized lifestyle and scenery.

Generally lower prices with a 25–35 min I-75 commute; EKU adds amenities and culture.

First-timers, commuters, faculty/staff, and investors serving students and families.

Historic downtown homes, newer subdivisions south/east, rural Madison Co. for acreage.

Student demand supports rents; many find owning comparable in monthly cost over time.

Madison County offers varied options; verify zoning and magnet/academy availability.

I-75 commute can bottleneck at peak; downtown/event parking manageable vs. big cities.

Active in edges of town; inspect and review builder warranties and HOA CCRs.

Close to Berea arts/hikes, Lake Reba, and a straight shot to Red River Gorge.

Steady demand from EKU + commuters; model student turnover and seasonality.

City has strong options; rural Madison may need fixed wireless/DSL—check addresses.

Corvette plant/museum, WKU, caves; strong job base and proximity to Nashville.

Established near campus/downtown; newer builds south/east; surrounding county for acreage.

Growing city with steady demand; move quickly on well-priced listings.

Severe weather occurs; consider safe-room features and review insurance deductibles.

Most trips 15–20 minutes; Scottsville Rd/Campbell Ln slow at peak. I-65 widened.

Warren County/BG Independent have solid options; confirm zones and programs.

New builds carry premiums but offer efficiency/warranties; inspect all homes.

Student and workforce demand support rentals; underwrite with realistic vacancy.

Mammoth Cave, Barren River Lake, Hot Rods baseball, downtown concerts.

Good city services; confirm fiber availability in new subdivisions/edges.

Both—active summers and quiet winters; many choose primary retirement living near marinas.

True private docks are limited by Corps rules; many homes have views with marina slips nearby.

Varies by subdivision/county; some allow STRs freely, others restrict—verify HOA and local ordinances.

Somerset has a regional hospital; for specialty care, larger cities are ~1–2 hours.

Summer weekends see boat traffic and tourism; weekdays and off-season are calm.

Hilly terrain affects costs; verify soil, access, and HOA design guidelines before building.

Quote wind/hail deductibles and, if applicable, flood in low areas. Lakeview hills often elevated.

Homes near Jamestown, Burnside, Lees Ford, State Dock have best access; compare slip waitlists/costs.

Friendly, recreation-oriented; festivals and car cruises (Somernites) add small-town charm.

Mixed—improving fiber near town; some coves rely on fixed wireless/LTE. Confirm by address.

170k-acre recreation area between Kentucky Lake and Lake Barkley with trails, camping, and wildlife viewing.

Murray (college town), Cadiz, Grand Rivers, Benton, Eddyville/Kuttawa; Paducah/Owensboro are larger nearby hubs.

No private development inside LBL; buy in surrounding lake subdivisions or close to marinas for access.

High near marinas/trailheads; confirm county/city STR rules and HOA allowances.

Great for outdoors-focused retirees; stay within easy reach of regional hospitals (e.g., Murray or Paducah).

Kentucky Lake west shore and Barkley east shore; seek protected coves for calmer water.

Check TVA/Corps restrictions near shorelines; soils and slopes drive foundation costs.

Town cores have solid service; rural peninsulas may need fixed wireless/Starlink. Verify power/water availability.

Seasonal lake level changes; review flood maps for low-lying parcels and insure accordingly.

Relaxed, recreation-centric; festivals, marinas, and small-town hospitality dominate.

Quick access to downtown Cincinnati, strong schools (e.g., Fort Thomas), CVG/Amazon job growth, river views.

10–30 minutes typical; Brent Spence and I-471 are main crossings. Companion bridge project will ease congestion long-term.

KY flat income tax and moderate property taxes; cross-river workers may pay Cincy wage tax—confirm credits with your CPA.

Fort Thomas, Villa Hills, Union/Hebron; verify school choices and neighborhood amenities.

Covington/Newport offer walkable historic districts and river views; check parking and renovation quality.

Active in Boone County; inspect and review HOA CCRs. Lots with skyline views command premiums.

Solid rental demand from Cincy proximity and CVG logistics; underwrite with conservative rent comps.

Ohio/Licking riverbanks can map into flood zones; order flood cert for river-adjacent homes.

Condos near riverfront for lifestyle/low upkeep; SFH for yards/schools. Compare HOA dues and reserves.

Check flight paths around CVG for specific addresses; newer homes may have better sound insulation.

First-timers and move-ups seeking affordability, I-75 access, and outdoor recreation.

Mix of in-town bungalows, suburban subdivisions, and rural acreage with outbuildings.

Easy regional access via I-75; most drives are short with minimal congestion.

Near Daniel Boone National Forest, Laurel River Lake, and popular trail systems.

County systems with varied programs; verify zoning and bus routes for your address.

City cores improving; rural hollers may need fixed wireless/Starlink—confirm before closing.

Emerging subdivisions; compare well/septic vs. city utilities and HOA requirements.

Quote wind/hail deductibles and verify fire protection distance for rural parcels.

Stable with modest appreciation; prioritize location, condition, and usable acreage.

Long-term rentals serve local workforce; underwrite conservatively for smaller markets.

Very low housing costs, mountain scenery, and tight-knit communities; ideal for rural living.

Expect winding roads; check winter maintenance, well/septic, and broadband options.

Steep lots raise build costs; get geotech/soil where needed and confirm driveway feasibility.

Verify if severed; title work should confirm rights and any existing leases.

Regional hospitals in Pikeville/Hazard/Prestonsburg; specialty care may require travel.

Hollows/creeks can flood; review FEMA maps, past claims, and consider flood insurance.

USDA widely available; local lenders familiar with non-conforming properties can help.

Community-oriented; newcomers are welcome. Engage locally to integrate quickly.

Mix of electric, propane, wood/coal stoves. Inspect chimneys and fuel storage.

Cash-flow possible at low basis; model conservative rents and plan for longer marketing times.