Kentucky First-Time Home Buyer Programs and Assistance

Kentucky Housing Corporation (KHC) currently lists 6 programs for Kentucky buyers, with down payment help up to $12,500 through KHC Down Payment Assistance (DAP). Figures below were read from the agency's own pages on September 11, 2026.

Kentucky first-time buyer programs open now

Kentucky Housing Corporation (KHC) is the state's housing finance agency (homebuyer programs page). It runs 2 down payment or closing-cost assistance programs alongside 4 below-market first mortgages. For KHC's Mortgage Revenue Bond (MRB) loans (FHA, VA, RHS loans), a buyer must be a first-time homebuyer in most of Kentucky;

Program	Type	Amount	First-time only	Min. credit	Income limit
KHC Down Payment Assistance (DAP) source	Second mortgage	Up to $12,500 toward down payment and/or closing costs, in $100 increments	No	620	Most common program ranges from $152,775 to $192,325 depending on program/county (per KHC's general eligibility page);
KHC Conventional Loan source	First mortgage	First mortgage, 30-year fixed rate; down payment assistance available separately via KHC DAP	No	660	See KHC eligibility/income limit resources
KHC FHA Loan source	First mortgage	First mortgage, 30-year fixed rate; down payment assistance available separately via KHC DAP	Yes	620	See KHC eligibility/income limit resources; income limits vary by county for MRB loans
KHC VA Loan source	First mortgage	First mortgage for qualified veterans/active-duty military; often no down payment required	Yes	620	See KHC eligibility/income limit resources
KHC RHS Loan source	First mortgage	First mortgage for homes in USDA Rural Housing Service-eligible areas of Kentucky; may not require a down payment	Yes	620	See KHC eligibility/income limit resources
Shared Appreciation Mortgage (SAM) source	Program	Not itemized on the pages fetched within budget	Check	n/a	Not itemized on the pages fetched within budget

KHC Down Payment Assistance (DAP). Terms: Secondary loan repayable over a 15-year term; can be stacked with other lender incentives when available Purchase price limit: Up to $566,354 (KHC's maximum loan amount / purchase price cap) Must pair with: Any KHC first-mortgage loan (Conventional, FHA, VA, or RHS) Program page
KHC Conventional Loan. Terms: 30-year fixed rate; minimum 3% down payment required Purchase price limit: Up to $566,354 Must pair with: A KHC-approved lender Program page
KHC FHA Loan. Terms: 30-year fixed rate; minimum 3.5% down payment required; issued as a Mortgage Revenue Bond (MRB) loan Purchase price limit: Up to $566,354 Must pair with: A KHC-approved lender Where: statewide (first-time-buyer requirement waived in Targeted Areas, where repeat buyers may also use it) Program page
KHC VA Loan. Terms: 30-year fixed rate; often 0% down; no monthly mortgage insurance; issued as an MRB loan Purchase price limit: Up to $566,354 Must pair with: A KHC-approved lender Where: statewide (first-time-buyer requirement waived in Targeted Areas) Program page
KHC RHS Loan. Terms: 30-year fixed rate; issued as an MRB loan Purchase price limit: Up to $566,354 Must pair with: A KHC-approved lender Where: Areas of Kentucky defined as 'rural' by the government (Rural Housing Services) Program page
Shared Appreciation Mortgage (SAM). Terms: New program launched by KHC in 2026 (per KHC's own July 27, 2026 press release) designed to help buyers overcome the upfront cost of homeownership by sharing future home appreciation with KHC instead of requiring full upfront cash Purchase price limit: Not itemized on the pages fetched within budget Must pair with: A KHC-approved lender Program page

City and county programs in Kentucky

Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.

Louisville Metro: Louisville Metro Down Payment Assistance Program. No more than 20% of the purchase price, not to exceed $30,000. Forgivable second loan. Income limit: 80% AMI household income caps: 1 person $55,450; 2 people $63,400; 3 people $71,300; 4 people $79,200;. Official page

How little you can put down

You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Kentucky's median-priced home (about $277,200), 3% down is roughly $8,316. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.

Who counts as a first-time buyer

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Kentucky programs often add income and purchase-price limits, which is another reason to confirm the details with Kentucky Housing Corporation.

Stack a buyer rebate on top in Kentucky

Down-payment assistance and a buyer commission rebate are two different things, and in Kentucky you can use both. Assistance from Kentucky Housing Corporation helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $5,544 on a median-priced home), which can cover much of your closing bill.

See Kentucky buyer rebates → See Kentucky closing costs →

Frequently asked questions

What first-time home buyer programs are available in Kentucky?

Kentucky Housing Corporation (KHC) lists 6 programs: KHC Down Payment Assistance (DAP), KHC Conventional Loan, KHC FHA Loan, KHC VA Loan, KHC RHS Loan, Shared Appreciation Mortgage (SAM). Down payment help runs up to $12,500. Louisville Metro also run local down payment programs.

How much down payment assistance can you get in Kentucky?

Up to $12,500 through KHC Down Payment Assistance (DAP) (second mortgage). Other Kentucky programs offer different amounts; see the table on this page for each one.

Do you have to be a first-time buyer to qualify in Kentucky?

Not for every program. 2 of 6 Kentucky programs are open to repeat buyers. For KHC's Mortgage Revenue Bond (MRB) loans (FHA, VA, RHS loans), a buyer must be a first-time homebuyer in most of Kentucky; both first-time and repeat homebuyers may use MRB loans in certain 'Targeted Areas' of the state (source: kyhousing.org/page/loan-programs). Conventional loans have no first-time requirement.

How much down payment do you need in Kentucky?

As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Kentucky's median-priced home (about $277,200), 3% is roughly $8,316. You do not need 20% down, though 20% lets you avoid mortgage insurance.

Who counts as a first-time home buyer?

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Kentucky programs also have income and purchase-price limits, so check with Kentucky Housing Corporation.

Can I combine assistance with a buyer rebate in Kentucky?

Yes. A buyer commission rebate is separate from down-payment assistance and is legal in Kentucky. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.

Official sources

Kentucky program details last verified against Kentucky Housing Corporation on September 11, 2026.

Read the full guide to the cash you need to buy →

This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Kentucky Housing Corporation and your lender before you rely on them.

See first-time buyer programs in all states