Most First-Time Buyers in Georgetown KY Miss Out on Down Payment Assistance. Are You One?

by Blake Wethington

Can You Actually Afford to Buy a House in Georgetown, KY? Here's the Real Math

Everyone asks the same question: "Can I afford to buy a house?"

And everyone gets the same useless answer: "It depends."

Let's stop with the vague BS. I'm going to show you the actual numbers for buying a house in Georgetown, KY, right now. Real prices. Real monthly payments. Real income requirements.

No guessing. No "maybe someday." Just math.

By the end of this, you'll know exactly what you need to buy a house here, and whether you're closer than you think.

What Houses Actually Cost in Georgetown, KY (Right Now)

The median home price in Georgetown is around $321,000, but that number is misleading because it depends heavily on where you're looking.

You can find solid homes in the $250,000 to $300,000 range. These are typically older homes, smaller square footage, but still great starter properties. You're looking at 3-bed, 2-bath houses that need some cosmetic updates, sometimes some appliance repair/replacement, but are move-in ready.

For higher-end neighborhoods, expect $350,000 to $500,000+. Newer construction, bigger lots, HOA communities, granite countertops, the whole deal. These homes are turnkey and in high demand.

For this breakdown, I'm using $321,000 as the baseline. You can adjust up or down based on what neighborhood fits your budget.

The Real Monthly Payment Breakdown (PITI)

Most people think the mortgage payment is just principal and interest. Wrong.

Your actual monthly payment includes four things (we call it PITI):

P = Principal (paying down the loan)
I = Interest (what the bank charges you)
T = Taxes (property taxes)
I = Insurance (homeowners insurance)

Let's break down a $321,000 house with 3% down (that's $9,630 out of pocket).

Loan Details:

Purchase Price: $321,000
Down Payment (3%): $9,630
Loan Amount: $311,370
Interest Rate: 6.5% (current average for a 30-year fixed)

Monthly Payment:

Principal + Interest: $1,968/month
Property Taxes: $157/month (Scott County median is about $1,887/year)
Homeowners Insurance: $150/month (rough estimate for Georgetown)
PMI (Private Mortgage Insurance): $156/month (required when you put down less than 20%)

Total Monthly Payment: $2,431

That's what you'd actually pay every month to own a $321,000 house in Georgetown.

Now Compare That to Renting

The average rent in Georgetown for a 3-bedroom house or apartment is $1,801/month or MORE!

So yes, buying costs about $630 more per month than renting.

But here's what renters don't think about:

When you rent:

$1,801/month = $21,612/year going to your landlord
After 5 years: $108,060 spent, $0 equity built
Your rent will increase every year (probably $50 to $100/year)

When you buy:

$2,431/month = $29,172/year
After 5 years: $145,860 spent, but you've built approximately $40,000 to $60,000 in equity (depending on market appreciation)
Your mortgage payment stays the same for 30 years (fixed rate)
You get tax deductions for mortgage interest and property taxes

The gap isn't as big as it looks. And after a few years, you're actually ahead as a homeowner.

What Income Do You Need to Qualify?

Lenders use something called your debt-to-income ratio (DTI) to decide if you can afford the house.

Here's the simple version: Your total monthly debt payments (mortgage, car loan, student loans, credit cards) can't exceed 43% of your gross monthly income.

The Math:

If your total monthly payment is $2,431, you need a gross monthly income of at least $5,654 to qualify (assuming you have no other debt).

That's about $67,850/year.

But if you have other debt (car payment, student loans, credit cards), you'll need more income. Example:

Total monthly payment: $2,431
Car payment: $350
Student loans: $200
Total debt: $2,981/month

You'd need a gross monthly income of $6,933, or about $83,200/year, to qualify.

This is why paying off debt before you buy can make a massive difference.

What If You Don't Have $9,630 Saved for a Down Payment?

Here's where most people stop. They see that $9,630 number and think, "I can't afford this."

But here's what nobody tells you: You don't actually need that much saved.

Kentucky has down payment assistance programs that can cover most or all of your down payment and closing costs. I'm talking about programs like:

Kentucky Housing Corporation (KHC) Down Payment Assistance:
Up to $6,000 toward your down payment and closing costs. 0% interest. Forgiven after 10 years if you stay in the home.

Affordable Housing Trust Fund (AHTF):
Up to $7,500 in assistance. Also forgivable.

You can stack these programs and get up to $13,500 in help. That's more than the $9,630 you need for a 3% down payment on a $321,000 house.

Suddenly, buying a house doesn't require years of saving. It requires knowing which programs exist.

👉 See which down payment assistance programs you qualify for HERE

What About FHA, VA, and USDA Loans?

If you qualify for any of these, your situation gets even better:

FHA Loan:
Only 3.5% down required. Credit score as low as 580. Down payment on a $321,000 house = $11,235 (but assistance programs can cover it).

VA Loan (Veterans/Active Military):
$0 down. No PMI. Lower interest rates. If you served, this is the single best loan program available. Your only out-of-pocket costs are closing costs (which the seller can pay).

USDA Loan (Some Parts of Georgetown Qualify):
$0 down. No PMI. Income limits apply, but they're generous. Not all of Georgetown qualifies, but some areas on the outskirts do.

If you're using a VA or USDA loan, you could get into a $321,000 house with as little as $3,000 to $5,000 out of pocket (just covering inspections, appraisal, and misc fees).

Comparison

Let's compare two real scenarios:

Scenario 1: Buying in the Boston neighborhood area

Purchase Price: $275,000
Down Payment (3%): $8,250 (covered by KHC assistance)
Loan Amount: $266,750
Monthly Payment (PITI + PMI): $2,150/month
Income Needed: $61,400/year (with no other debt)

You're paying $350/month more than renting, but you're building equity in a solid neighborhood with good bones.

Scenario 2: Buying in the Canewood neighborhood

Purchase Price: $400,000
Down Payment (3%): $12,000 (you'd need to save some; assistance covers most)
Loan Amount: $388,000
Monthly Payment (PITI + PMI): $3,050/month
Income Needed: $87,150/year (with no other debt)

You're paying significantly more, but you're in a newer home in a higher demand area with better appreciation potential.

Both are doable. It just depends on your income and what neighborhood fits your lifestyle.

So, Can You Actually Afford It?

Here's the honest answer:

You can probably afford to buy in Georgetown if:

You make $60,000+ per year (individually or combined household income)
Your credit score is 580 or higher
You have less than $500/month in other debt payments
You have $3,000 to $5,000 saved (or access to down payment assistance programs)

If you're paying $1,500+ per month in rent right now, you can afford to buy. The monthly payment difference is smaller than you think, and you're building wealth instead of paying someone else's mortgage.

If you're making $70,000+ per year and still renting, you're leaving money on the table.