Can you buy a home with
$0 down in Berea, KY?

Yes! My most recent clients, the Webbs, just bought a $240,000 move-in-ready home in Berea, KY with $0 down at closing, using an FHA loan and Kentucky Housing Corporation’s (KHC) down payment assistance (DAP). The sellers agreed to pay up to $9,000 toward closing costs and prepaids, and their $200 earnest money deposit was returned to them at closing.

By Devin Todd Azbill, REALTOR® | October 23, 2026

Here’s the part nobody puts in the headline: “$0 down” doesn’t mean “$0 to buy.” Every purchase has closing costs and prepaids, and this one came to $8,331 on closing day. What made the Webbs’ deal work was the structure — an FHA loan, KHC down payment assistance, a negotiated seller credit, and a very small earnest money deposit that came back to them.

This is exactly how it played out, with the real numbers, so you can see what’s realistic for your own purchase.

How the Webbs found me

It started with a Facebook photo. A set of buyers saw one of my just-closed posts, recognized someone in it, and reached out. We eventually found them a home. Then their sister and her husband — the Webbs — came to me on that family’s referral.

Referrals are the best compliment I get. It also means I felt the weight of getting it right.

The Webbs came to me wanting to talk about buying a home. We toured three homes in one day. The first one we walked through was “the one” — but I always encourage buyers to see a couple more the same day, because comparing in real time is the fastest way to know what you’re actually looking at. After the other two, they were still sure.

The price history behind the deal

Before we wrote an offer, I pulled the home’s history. Here’s what the listing did:

• 1/18/2026: Listed at $289,900

• 2/11/2026: Listing cancelled

• 8/18/2026: Relisted at $245,000

• 9/3/2026: Reduced to $239,900

• 9/5/2026: Under contract with us

• 10/22/2026: Closed

That’s a $50,000 drop — about 17% — from the original ask. A home that cancels, sits off the market for months, and returns at a much lower price tells me something about seller expectations changing. It doesn’t guarantee anything, but it shapes how I negotiate.

After a little negotiating, our offer was accepted at $240,000 with up to $9,000 in seller-paid closing costs and prepaids. Now, notice that’s $100 above the final list price. We traded a tiny bit of price for a very meaningful credit — and for buyers using low-down-payment financing, cash at closing matters more than a price that’s a few hundred dollars lower.

We asked for up to $9,000 based on the lender’s estimate. On closing day, the actual total came in lower, at $8,331. And that’s why I always ask for a little cushion — the estimate and the final number rarely match exactly.

This isn’t unusual locally. In my Madison County market update for October 12–18, 10 of 26 closings (38%) included seller-paid closing costs. Sellers in this market are negotiating — if your agent knows to ask.

How the Webbs paid $0 down

Here’s the breakdown:

• FHA loan. FHA financing is built for buyers who don’t have a big down payment, and it allows seller contributions toward closing costs (up to 6% of the price). The $9,000 we negotiated was 3.75%.

• KHC down payment assistance (DAP). The Webbs were eligible for DAP through Kentucky Housing Corporation, which covered what would have been their down payment. Eligibility depends on your income, credit, the purchase price, and the lender, so talk to a KHC-participating lender early.

• A $200 earnest money deposit. I negotiated the deposit down to $200 and it was returned to them at closing.

• A $75 seller credit. Instead of making a small repair, the sellers gave the Webbs $75 back. Sometimes a repair isn’t worth the back-and-forth.

• No appraisal issues. The home appraised, so there was no renegotiating or surprise gap to cover.

Because they closed on October 22, their first mortgage payment isn’t due until December. Ask your lender for your exact date — it depends on your closing day. If you’re wondering what happens between “accepted” and “keys,” here’s my step-by-step timeline for what happens after your offer is accepted in Berea.

What I checked before we made the offer

I go through every home looking for red flags that would change the decision before we write an offer — the things that are expensive or hard to fix. On this home, I didn’t see anything concerning, and it was move-in ready. If you want the checklist I use, start with my post on the 7 things to check before you fall in love with a house.

I’ve also written about how another set of buyers purchased with $0 down in Berea. The structure is similar, but every deal has its own numbers.

What the Webbs said

“Devin has the sweetest soul & is incredibly knowledgeable! She made the entire home purchase process very smooth, answered all our crazy questions promptly, and was truly right there through the thick & thin of our journey! We can’t say enough good things about her! Thank you, Devin for everything!!!”

Those “crazy questions” are my favorite part. There are no crazy questions when you’re making the biggest purchase of your life.

Frequently Asked Questions

Can you really buy a home with $0 down in Kentucky?

Yes, if you qualify. FHA loans normally require a minimum down payment, but down payment assistance programs like Kentucky Housing Corporation’s DAP can cover it for eligible buyers. The Webb family closed on their Berea home with $0 down this way.

What is KHC DAP?

DAP is down payment assistance offered through Kentucky Housing Corporation (KHC) for eligible homebuyers. Requirements — including income, credit, and purchase price limits — vary and change, so confirm current terms with a KHC-participating lender before you shop.

Can sellers pay closing costs on an FHA loan?

Yes. FHA allows sellers to contribute up to 6% of the purchase price toward the buyer’s closing costs. On the Webbs’ $240,000 purchase, the sellers agreed to pay up to $9,000 toward closing costs and prepaids — 3.75% — based on the lender’s estimate. The actual costs came in at $8,331 on closing day.

How much earnest money do you need to buy a home?

It’s negotiable. On the Webbs’ purchase, I negotiated a $200 earnest money deposit, and it was returned to them at closing. The right amount depends on the seller, the home, and your offer.

When is your first mortgage payment due after closing?

It’s usually due on the first of the month after your first full month of ownership. The Webbs closed on October 22, so their first payment isn’t due until December. Your lender will confirm your exact date.

Ready to find out what’s realistic for you?

The Webbs’ story shows what’s possible with the right loan, the right assistance, and a negotiation that puts cash back in your pocket. Your numbers will be different — your price range, your loan, and your timeline all change the plan — and that’s why I walk every buyer through the math before we tour a single home.

If you’re ready to start your search, or just want to understand what’s realistic in today’s Berea market, let’s talk.

Start here: toddky.com/buying — or get pre-approved so you know your numbers before you tour.

Prefer to talk it over? Call or text me at (859) 200-6513 or schedule a no-obligation consultation!