STATEWIDE PROGRAMS

Your Kentucky Home

Assistance Available:
The Kentucky Association of Counties (KACo) provides downpayment assistance through the Your Kentucky Home Program.

This program offers qualified homebuyers up to 5% of the purchase price as a gift. There is no repayment required. This is not a second mortgage. 

Qualifications:
The homebuyer must agree to a 30 year fixed rate mortgage with an interest rate ¼% to ½% higher than current market rates. The assistance may be used for downpayment, closing costs, or a combination of the two. A minimum FICO score of 640 is required. The income limit is 115% of the average median. You do not have to be a first time homebuyer to be eligible.

CITY AND COUNTY PROGRAMS

Christian County
Hardest Hit Fund Downpayment Assistance Program

Assistance Available:
The Kentucky Housing Corporation offer the Hardest Hit Fund Downpayment Assistance Programis qualified homebuyers interested in purchasing a home in Christian County. They offer up to $10,000 in a non-repayable second mortgage. This mortgage is 0% interest to first time homebuyers and is forgiven after 5 years.

Qualifications:
You must be a first time homebuyer ( have not owned a home in the past 3 years). There are secondary market income and purchase price limits. You are required to complete pre-purchase counseling. New construction is not eligible. The home purchased must have been previously occupied. The property purchased must be located in Christian County.

City of Covington
Covington Homebuyer Assistance Loans

Assistance Available:
The City of Covington offers downpayment assistance to qualified Covington homebuyers. The assistance is in the form of a deferred, 0% interest loan of up to $5000. The loan is forgiven after 5 years as long as the borrower lives in the property as the owner occupant for a period of 5 years after closing. There are no monthly payments.

Qualifications:
The homebuyer’s gross yearly household income may not exceed 80% of the area median ($43,900 for 1 person; $62,650 for a 4 individual household). Attendance in a HUD approved homebuyer education course is required. One or two unit properties are eligible. All properties must meet local housing standards.

Louisville
Downpayment Assistance Program

Assistance Available:
The Downpayment Assistance Program of Louisville operates through the Office of Housing and Community Development. The purpose of the program, in addition to assisting low to moderate income homebuyers, is to encourage mixed income neighborhoods and de-concentrate poverty. The program encourages homeownership in the city’s Neighborhood Revitalization Strategy area - Russell and encourages reinvestment in the city’s vacant and abandoned property.

The maximum downpayment assistance available is 20% of the purchase price. The actual amount is based on need. The assistance is in the form of a partially forgivable loan. 

Participants in Section 8 Homeownership are encouraged to apply.

Qualifications:
You do not have to be a first time homebuyer. The household income must not exceed 80% of the area median. Adjustments are made for family size. You must meet the credit qualifications and have no undischarged bankruptcy, past due balances, or unpaid collections on the report. Up to $10,000 in medical expenses are permitted. 

You must occupy the property as your primary residence for a period of 5 - 15 years depending on the amount of assistance. If you have more than $15,000 in savings, you must contribute the difference between the total amount and the amount allowed by the program ($15,000) toward the purchase price of the property. There are purchase price limits.