Home financing in Jefferson County.

Home financing means borrowing money to buy, renovate, or invest in residential property, with the home itself usually serving as collateral. In Jefferson County, buyers and small investors have several paths to choose from:

**Conventional loans** are offered by banks, credit unions, and mortgage companies. They typically require a credit score of 620 or higher and a down payment of 3–20%.

**FHA loans** are backed by the federal government and allow down payments as low as 3.5%, making them popular with first-time buyers. They are widely available through local lenders in Louisville.

**USDA loans** are available in some rural edges of Jefferson County — though most of Louisville proper does not qualify. Check eligibility by address.

**ITIN loans** are offered by a smaller set of lenders to borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number. Several local lenders and CDFIs in Jefferson County offer these.

**Home Renovation Loans** (such as FHA 203k or Kentucky Housing Corporation programs) let you roll the purchase price and repair costs into one loan.

**Investment Property Loans** are available for small landlords buying 1–4 unit properties. Underwriting is stricter — expect larger down payments (15–25%) and higher reserves.

No matter which product you choose, the goal is the same: find a lender you trust, understand your total costs, and make sure the monthly payment fits your real budget.

Jefferson County's economy is anchored by healthcare (Norton Healthcare, Baptist Health, UofL Health), logistics and manufacturing (Ford, Amazon, UPS), and a growing hospitality and construction sector. This matters for financing because lenders look closely at employment stability and income type.

**Solo contractors and self-employed borrowers** are common in Louisville's construction and trades economy. Lenders will want to see at least two years of self-employment history. Your net income on tax returns — not your gross receipts — is what counts, so work with an accountant to make sure your returns reflect your true earnings.

**Hourly and gig workers** in logistics, hospitality, or food service can qualify, but lenders average your income over 24 months, so consistency matters.

**ITIN holders** without a Social Security Number can still qualify through lenders who specifically offer ITIN mortgage programs. You will need to show steady income, a history of on-time rent or bill payments, and often a larger down payment (10–20%).

**Small real-estate investors** — especially those buying duplexes or triplexes in Louisville neighborhoods like Shawnee, Russell, or the West End — may count projected rental income to help qualify, depending on the loan type.

**Income limits** apply to some local assistance programs. For example, the Kentucky Housing Corporation (KHC) sets income limits by household size and county — Jefferson County limits are updated annually, so check directly with KHC or a local lender.

The Louisville Metro area's median home price has been rising, but remains more affordable than many major metros, which keeps homeownership within reach for moderate-income buyers — especially with local down payment assistance.

Gather these before you meet with any lender. Having them ready speeds up the process and shows you are prepared.

**For all borrowers:**

- Government-issued photo ID (passport, state ID, consular ID/matrícula are accepted by many local lenders)

- ITIN letter or Social Security card

- Two years of federal tax returns (all schedules)

- Last two years of W-2s or 1099s

- Last 60 days of bank statements (all accounts, all pages)

- Last 30 days of pay stubs (if employed)

- Proof of any additional income (rental income, child support, disability)

- Landlord contact information or 12–24 months of rent payment history

**For self-employed / solo contractors:**

- Two years of business tax returns (if you have an LLC or corporation)

- Year-to-date profit-and-loss statement (your accountant can prepare this)

- Business bank statements (last 2–3 months)

- Business license or contractor's license

**For investment property purchases:**

- Current leases on any properties you already own

- Schedule E from your tax returns showing rental income/loss

- Property management agreements, if applicable

**For ITIN borrowers:**

- ITIN assignment letter from the IRS

- Two or more years of ITIN tax returns

- Alternative credit references: utility bills, insurance payments, cell phone bills paid on time

Organize everything in a folder — digital or paper — before your first lender appointment. You will likely be asked for the same documents multiple times.