Kentucky Down Payment Assistance
Kentucky Down Payment Assistance Programs
A guide to current down payment assistance options in Kentucky, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Kentucky homebuyers.
Kentucky Housing Finance Agency
Kentucky Housing Corporation (KHC)
KHC administers the primary DPA programs for Kentucky. Program details below are current as of April 23, 2026 - confirm current terms directly with KHC before applying.
Statewide DPA Programs in Kentucky
KHC Regular Down Payment Assistance Program (DAP)
Kentucky Housing Corporation
Up to $12,500 (available in $100 increments) toward down payment and closing costs as a repayable second mortgage.
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Income: KHC Secondary Market or Mortgage Revenue Bond (MRB) income limits apply; vary by county and household size.
Repayable over 15 years at a fixed interest rate (rate posted by KHC; recently 4.75%). Must be paired with a KHC first mortgage. Available to all KHC first-mortgage borrowers (not limited to first-time buyers under Secondary Market).
Source: www.kyhousing.org
KHC Affordable Down Payment Assistance Program
Kentucky Housing Corporation
Down payment and closing cost assistance (up to a published cap) as a repayable second mortgage for lower-income borrowers meeting MRB income limits.
Paired with: Conventional, FHA, VA, USDA
- Primary residence only
- Income: KHC MRB (Mortgage Revenue Bond) income limits apply; lower than Secondary Market limits.
Confirm current maximum assistance amount, rate, and term on KHC lender pages before quoting.
Source: www.kyhousing.org
Major City & County Programs in Kentucky
Louisville Metro Down Payment Assistance Program
Louisville Metro Government · Louisville/Jefferson County, KY
Partially forgivable 0% interest loan up to $25,000 (capped at 15% loan-to-value) toward down payment and closing costs.
Household income at or below 80% of area median income. Not limited to first-time buyers, but the applicant may not currently own a home. Owner-occupancy required for 5-10 years depending on assistance amount. Application windows are posted annually by Louisville Metro.
Source: louisvilleky.gov
2026 Loan Limits in Kentucky
Conforming (Conventional)
$806,500 baseline
FHA
$524,225 floor
Most Kentucky counties use the FHA floor limit.
Live DPA Pricing for Kentucky
Pricing below is sourced live from hundreds of wholesale lenders for a Kentucky scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for Kentucky with live pricing
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