Kentucky offers 14 down payment assistance programs to help homebuyers cover their down payment and closing costs. This includes 5 grant programs that never require repayment. Programs range from statewide options administered by the state housing finance agency to local city and county programs targeting specific communities.
Maximum assistance available reaches $30,000 through the most generous program. Most programs require the home to be your primary residence, and many require homebuyer education.
Top Down Payment Assistance Programs in Kentucky
Highlighted programs that combine high assistance amounts with statewide or major-metro availability. See the full list below.
REACH HOME Program
openResources Education Assistance Community Housing
$30,000
Down Payment Assistance
openConfederated Tribes of Grand Ronde - Housing
20 (max $20,000)
Lexington-Fayette Urban County Government Homebuyer Assistance Program
verifyLexington-Fayette Urban County Government
Provides UP TO $15,000 in down payment and closing cost assistance.
Kentucky Housing Corporation (KHC) Down Payment Assistance Program
openKentucky Housing Corporation
Provides UP TO $10,000 in down payment and closing cost assistance.
Covington
openCity of Covington
Offers deferred, forgivable loans of UP TO $10,000 to help low-income homebuyers.
Grant Programs (5)
Grants are the gold standard of down payment assistance. You receive the money and never have to pay it back.
Down Payment Assistance
Confederated Tribes of Grand Ronde - Housing
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Condominium, Townhouse/PUD
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
- Assistance Type
- grant
- Profession
- All
- Homebuyer Ed.
- Yes
Lexington-Fayette Urban County Government Homebuyer Assistance Program
Lexington-Fayette Urban County Government
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- Based on HUD income guidelines.
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- grant
- Profession
- all
- Homebuyer Ed.
- Not specified
Covington
City of Covington
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- Varies
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- grant
- Profession
- all
- Homebuyer Ed.
- Not specified
Repayment Terms
Assistance: Offers deferred, forgivable loans of up to $10,000 to help low-income homebuyers.
Notes
Check program requirements
Susan's Savings First Time Home Buyers Program
Trilogy Health Services Foundation
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD
- Assistance Type
- grant
- Profession
- All
- Homebuyer Ed.
- Not specified
Owensboro
City of Owensboro
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- Varies
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- grant
- Profession
- all
- Homebuyer Ed.
- Not specified
Repayment Terms
Assistance is a deferred loan forgivable after a set affordability period (usually 5–15 years).
Notes
Check program requirements
Forgivable Loans (1)
Forgivable loans are forgiven after a set period of living in the home. If you stay, you keep the money.
Louisville Metro Down Payment Assistance Program
Louisville Metro Government
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- Based on HUD guidelines.
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- forgivable loan
- Profession
- all
- Homebuyer Ed.
- Not specified
Repayment Terms
Forgivable loan after a set period if the buyer remains in the home.
Notes
Check program requirements
Deferred Payment Loans (5)
Deferred loans require no monthly payments while you live in the home. You repay when you sell, refinance, or move out.
REACH HOME Program
Resources Education Assistance Community Housing
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Not specified
Repayment Terms
Deferred Payment - Repayable at sale or refinance
Homebuyer Assistance Program
City of Covington
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Condominium, Townhouse/PUD, 2 units, Manufactured
- Max Price
- $433,000
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1, USDA-RD
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Interest Rate
None
Repayment Terms
Forgivable - Fully forgiven at closing or forgiven on a schedule
Kentucky Regular DAP
Kentucky Housing Corporation
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Townhouse/PUD, Condominium
- Max Price
- $544,232
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1, USDA-RD
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Not specified
Interest Rate
4.75%
Repayment Terms
Deferred Payment - Repayment at sales or finance
Chenoa Fund FHA Down Payment Assistance Forgivable
CBC Mortgage Agency (Chenoa Fund)
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, 2 units, Leasehold, Condominium, Townhouse/PUD, Manufactured
- Max Price
- $766,550
Quick Facts
- Loan Types
- FHA
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Chenoa Fund FHA Down Payment Assistance Repayable
CBC Mortgage Agency (Chenoa Fund)
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, 2 units, Leasehold, Condominium, Townhouse/PUD, Manufactured
- Max Price
- $766,550
Quick Facts
- Loan Types
- FHA
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Interest Rate
Note rate 1% above the first mortgage note rate
Repayment Terms
This loan does require a monthly payment on the second mortgage.
Second Mortgages (3)
These programs provide DPA as a second mortgage, sometimes with monthly payments, sometimes deferred.
Kentucky Housing Corporation (KHC) Down Payment Assistance Program
Kentucky Housing Corporation
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- Based on area median income (AMI).
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- second mortgage
- Profession
- all
- Homebuyer Ed.
- Not specified
Interest Rate
3.75%
Repayment Terms
Second mortgage with a 10-year repayment term at 3.75% interest.
Notes
Required
Independence
City of Independence
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- Varies
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- second mortgage
- Profession
- all
- Homebuyer Ed.
- Not specified
Repayment Terms
Forgivable after 5 years if the homeowner remains in the property.
Notes
Check program requirements
Florence
City of Florence
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- Varies
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- second mortgage
- Profession
- all
- Homebuyer Ed.
- Not specified
Repayment Terms
Assistance: Offers eligible households the opportunity to obtain zero-interest deferred/forgivable loans to assist with purchasing owner-occupied homes.
Notes
Check program requirements
How to Apply for Down Payment Assistance in Kentucky
-
1
Check Your Eligibility
Use our free eligibility tool to see which programs match your situation. Enter your state, city, income, and target home price.
-
2
Contact the Program Administrator
Each program has its own application process. Visit the program website or call the administering agency to get started. Many programs work through approved lenders.
-
3
Get Pre-Approved with a Participating Lender
Not every lender participates in every DPA program. Work with a lender who is approved for the programs you want. The program administrator can provide a list of approved lenders.
-
4
Complete Homebuyer Education (If Required)
Many programs require a HUD-approved homebuyer education course. Online options through eHome America and Framework are accepted by most programs.
-
5
Close & Move In
DPA funds are typically disbursed at closing alongside your first mortgage. Your lender coordinates the DPA program paperwork as part of the loan process.
Frequently Asked Questions
How much down payment assistance can I get in Kentucky?
Up to $30,000 through available programs in Kentucky. Multiple programs can often be combined for even more assistance. The exact amount depends on your income, location, and the specific program requirements.
Do I need to be a first-time homebuyer?
Not always. 5 programs in Kentucky are open to repeat buyers. "First-time buyer" is typically defined as not having owned a home in the past three years.
What credit score do I need?
Requirements vary by program. Most require a credit score of at least 620-660.
Can I combine multiple DPA programs?
In many cases, yes. Some programs are specifically designed to be layered with others. For example, you might combine a state grant with a local deferred loan. Check with each program administrator about stacking eligibility.
DPA Programs in Nearby States
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