Kentucky Investor Loan Programs
Program and regulatory figures verified September 15, 2026. Details change; confirm your scenario with us.
Six programs, one process. We price the options side by side against the actual parcel, and we tell you which landlord-law regime you are buying into while we do it.
DSCR purchase and refinance
Rent divided by full PITIA, 1.0 clearing most grids, no income documents, LLC title at the table, no property-count cap, 20-25% down. In Kentucky the program earns its keep hardest in Covington and Newport, where an 8.7% and 7.7% gross yield against Kentucky basis produces ratios that Louisville at 6.2% and Lexington at 5.6% reach less comfortably. We also flag the jurisdiction question on every file, because a Covington closing and a Warren County closing hand you different notice periods and different deposit obligations. Full guide.
Investor cash-out and BRRRR
Typically to 70-75% LTV, with the new full PITIA tested against rent. The Kentucky wrinkle is the fair cash value standard: the county Property Valuation Administrator assesses what the property would sell for, so the rehab that created your equity is visible to the assessor through the permit and the refinance appraisal. We model the post-rehab line, and we correct the common misreading that the KRS §132.020(2) 4% ratchet caps your bill. It reaches the state slice only, and local levies are the larger part. Full guide.
Short-term rental financing
Kentucky has enacted no statewide short-term-rental law, which matches the local-option posture of its landlord law generally. Louisville is the hard case: annual registration plus a discretionary Conditional Use Permit in residential and transit-oriented districts, with a 600-foot buffer whose affected parcels Metro publishes as an open dataset you should check before offering. Long-term rent carries the file unless the permit is already issued. Permits by city.
Conventional investor loans
Fannie Mae B2-2-03 allows up to 10 financed properties, and on your first Kentucky doors it is usually the cheaper capital. The Kentucky scaling trap is not financial: investors who buy two Louisville properties, get a good lease drafted, then reuse it in Bowling Green or Paducah are operating without the statutory backstop that lease assumed. Two templates, one for adopting jurisdictions and one for everywhere else. Scaling guide.
Bank statement loans
Twelve to 24 months of deposits with an expense factor, instead of tax return net income. Kentucky self-employment has distinctive shapes and the look-back should be chosen for yours: bourbon-corridor hospitality and equine operations in the Bluegrass are lumpy and want 24 months, while Louisville air-cargo owner-operators carry high gross deposits against high fuel and equipment cost, which is where a CPA letter on the real expense ratio pays for itself. Full guide.
1031 exchange financing
45 days to identify, 180 days to close, and DSCR removes the income file from the critical path. Kentucky adds one item to the identification checklist that no other state poses in this form: a call to the city clerk asking whether that jurisdiction adopted KRS 383.505 to 383.705, because the answer changes your lease, your deposit banking and your manager's instructions, and it costs nothing while you still have alternatives identified. Full guide.
DSCR ratio calculator
Run the ratio yourself before you call us. Kentucky's light tax load helps here, so a Covington or Paducah property often clears with more room than the headline yield suggests. Open the calculator.
Entity and LLC structures
LLC vesting at the first closing, multi-member and partner structures, personal guaranty standard, no entity seasoning. The Kentucky-specific warning lives here: in an adopting jurisdiction, moving title to an entity without moving the KRS §383.580 deposit account breaks the chain between the landlord of record and the disclosed account, and subsection (4) forfeits the whole deposit for that. Full guide.
How we pick a program with you
| Your situation | Where we usually land |
|---|---|
| First rental, strong documented income | Conventional investor loan |
| Rental, returns will not support the DTI | DSCR |
| Want the LLC on the deed from day one | DSCR |
| Past 10 financed properties | DSCR |
| Buying a home or a unit you will occupy | Bank statement |
| Rehab with capital coming back out | DSCR cash-out, ratio run twice |
| Exchange proceeds on a deadline | DSCR, with the adoption check at identification |
Where we lend in Kentucky
Statewide. Market guides: Northern Kentucky, Louisville, Lexington and Bowling Green. Background that applies everywhere: the local-option landlord law and Kentucky rental property taxes.
No pressure and no obligation: a 20-minute call with our team, the real full payment run against a realistic Kentucky rent, and a straight answer on whether the deal clears before you write an offer.
Frequently asked questions
Which Kentucky investor loan program should I use?
If your documented income supports the debt-to-income on your first few doors, a conventional investor loan is usually the cheaper capital, up to Fannie Mae's ceiling of 10 financed properties under B2-2-03. Move to DSCR when the returns will not support the ratio, when you want LLC title at the first closing, when the timeline is tight, or when you pass that ceiling.
Do you finance short-term rentals in Kentucky?
Yes, with one rule. Because Kentucky has no statewide short-term-rental law and every rule is municipal, we underwrite the long-term rent unless the municipal permit is already in hand. Where it is, documented short-term revenue can carry the file, usually from a trailing-12 operating history or a third-party projection with a haircut applied.
What down payment do your Kentucky investor programs require?
On DSCR, typically 20-25%, with 25% standard on 2-4 unit properties. Investor cash-out typically runs to 70-75% of appraised value. Conventional investor financing follows the agency grid. Against Kentucky's basis those are modest checks: 25% on Covington's $222,725 typical value buys into the strongest gross yield in the state.
Can I get an investor loan in Kentucky without tax returns?
Yes. A DSCR loan requires no personal tax returns, no W-2s, no 4506-C transcript and no debt-to-income calculation; the property's rent against the full PITIA payment does the qualifying. For an owner-occupied purchase, where DSCR does not apply, a bank statement loan qualifies self-employed income from 12 to 24 months of deposits instead.
Do you lend across all of Kentucky?
Statewide, with market guides for Northern Kentucky, Louisville, Lexington and Bowling Green. Every quote starts with two Kentucky-specific questions: what the county Property Valuation Administrator has the parcel assessed at, and whether that city adopted KRS 383.505 to 383.705, because the second one decides your lease, your notice periods and your deposit process.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. Whether your city or county has adopted the Uniform Residential Landlord and Tenant Act, local short-term-rental rules, and county assessment practice all change; confirm with the city clerk, the county Property Valuation Administrator, your CPA, or a Kentucky real estate attorney before you buy. Loans are subject to buyer and property qualification.