KHC Down Payment Assistance (DPA) — with Mortgage Revenue Bond (MRB) or Secondary Market first mortgage
Kentucky Housing Corporation (KHC), the state's housing finance agency
Amount: Up to $12,500 toward down payment, closing costs, and prepaids, disbursed in $100 increments. Structured as a second loan repayable over a 15-year term (paired with a KHC first mortgage — FHA, VA, USDA, or Conventional). Not a grant; it is a repayable secondary loan.
Type: Statewide secondary/repayable loan (state HFA program)
Must obtain a KHC first mortgage. Minimum credit score around 620 for FHA/VA/USDA-backed KHC loans (conventional loans commonly carry a higher lender overlay, around 660). Must meet county-specific income limits — KHC's MRB and Secondary Market programs have separate income ceilings by county (verify exact figure per county via a KHC-approved lender or kyhousing.org, since limits are set per county and change periodically). Home purchase price capped around $566,354 per KHC's current published limit (also county/program dependent). First-time-buyer requirement depends on path: under the MRB program, buyers in non-targeted areas must be first-time buyers (no ownership interest in a principal residence in the prior 3 years), while buyers in targeted areas and buyers using KHC's Secondary Market program (first mortgage funding source) can be either first-time or repeat buyers. Property must be the borrower's principal residence and borrower cannot own other residential property at closing.
Hardest Hit Fund Down Payment Assistance (HHF DAP)
Kentucky Housing Corporation (KHC)
Amount: Up to $10,000, structured as a zero-interest, forgivable second mortgage with a 5-year forgiveness term (can be combined/'stacked' with the standard $12,500 KHC DPA loan above, per KHC-approved lenders).
Type: Statewide forgivable second-mortgage program (state HFA program)
Paired with a qualifying KHC first mortgage; subject to the same general KHC income limits, purchase price limits, and credit requirements as the main KHC DPA program. Intended to stack with the primary DPA loan to increase total assistance. Confirm current fund availability with a KHC-approved lender, as Hardest Hit Fund-sourced programs can have limited/seasonal allocations.
Louisville Metro Down Payment Assistance Program (DPA)
Louisville Metro Government, Office of Housing / Develop Louisville (city-level program, not the state HFA)
Amount: Up to 15% of the purchase price, capped at a maximum of $25,000. Structured as a partially forgivable, 0% interest loan; borrower must occupy the home as a primary residence for 5-10 years (length depends on assistance amount) for the loan to fully forgive.
Type: Local/municipal down payment assistance loan (forgivable)
Household income must be at or below 80% of Area Median Income (AMI), adjusted for household size (e.g., a 3-person household could not exceed roughly $69,400/year in a recent program year — verify current AMI table for 2026 with Louisville Metro Office of Housing). Not restricted to first-time buyers, but applicant(s) may not currently own a home. Applications are only accepted during a limited annual open window (the most recent cycle ran March 2 - April 30, 2026), so this is not available year-round — check LouisvilleKY.gov for the next application period.