Up to $14,500 in Down Payment Assistance for Kentucky Buyers
The biggest barrier to homeownership isn't your income or your credit — it's the cash at closing. Here's what most buyers don't know: you may not need nearly as much as you think.
Most Kentucky buyers assume they need $10,000–$20,000 saved before they can buy a home. Between the down payment, closing costs, and prepaids — it adds up fast. And for most renters, that number keeps getting pushed further out of reach.
But right now, Kentucky first-time homebuyers can access up to $14,500 in combined assistance through two programs that can be stacked together — in many cases reducing cash-to-close to a fraction of what buyers expect.
This guide explains exactly how it works, who qualifies, and what to do next.
The Two Programs You Can Stack Together
Kentucky homebuyers can combine both of these programs — a strategy known as "stacking" — to maximize assistance and minimize upfront costs.
KHC Down Payment AssistanceUp to $12,500
- ✓ Applied toward down payment or closing costs
- ✓ Works with FHA, VA, USDA & Conventional loans
- ✓ 15-year second mortgage at 4.75% interest
- ✓ Fixed monthly payment of just $97/month
- ✓ Available statewide through KHC
Closing Cost Grant$2,000 — No Repayment
- ✓ True grant — never needs to be repaid
- ✓ Covers closing costs or prepaids
- ✓ Stackable with KHC down payment assistance
- ⚠ First-come, first-served while funds last
What This Assistance Actually Does to Your Numbers
Let's skip the vague language and look at a real example. Here's what a Kentucky buyer purchasing a $200,000 home typically faces — and what changes with assistance.
Without Assistance
$200,000 purchase · FHA loan| Down Payment (3.5% FHA) | ~$7,000 |
| Closing Costs | ~$4,000 – $6,000 |
| Prepaids (taxes, insurance, escrow) | ~$2,000 – $3,000 |
| Estimated Cash to Close | $13,000 – $16,000 |
Do You Qualify?
Exact guidelines vary by program, but most buyers need to meet these general requirements. A quick conversation with me will tell you exactly where you stand.
| Requirement | Typical Guideline |
|---|---|
| Credit Score | 620 minimum |
| Home Use | Primary residence only |
| Income | Within county & household size limits |
| First-Time Buyer | No home ownership in past 3 years (some programs) |
| Property Type | Single-family, townhome, some condos |
⚠ Important: The $2,000 Grant Is Not Unlimited
The closing cost grant is allocated annually and distributed on a first-come, first-served basis. When the funds run out — they're gone until the next funding cycle.
I've seen motivated buyers delay by a few months, come back ready to move forward, and find the grant was already fully claimed. If you're considering buying in 2026, the smartest move is to find out what you qualify for now, so you're positioned when the right home comes along.
How to Get Started — It's Free
The process is simple. There's no cost and no obligation — just clear answers so you know exactly where you stand.
Contact me for a free mortgage consultation — by phone, text, or email.
I'll review your income, credit, and goals — usually same business day.
You'll know which programs you qualify for and your estimated cash to close.
We get you pre-approved and ready to make an offer with confidence.
Find Out What You Qualify For
No guesswork. No pressure. Just a straightforward conversation about your options.
Or text the word GRANT to 502-905-3708 to get started
Frequently Asked Questions
Yes. Stacking the KHC down payment assistance with the $2,000 grant is allowed and is the most effective way to reduce your upfront costs. I'll walk you through exactly how they work together for your specific situation.
No. It's a true grant — there is no repayment requirement, regardless of how long you stay in the home.
The $12,500 KHC assistance is structured as a 15-year second mortgage at 4.75% interest, with a fixed monthly payment of $97. It is not forgivable, but for most buyers the $97/month payment is a very manageable trade-off to cover the down payment and get into a home sooner.
A minimum credit score of 620 is required for these programs. If your score is below that, it's still worth a conversation — there may be steps we can take to get you there quickly.
It depends on the program. Some assistance is reserved for first-time buyers (defined as no home ownership in the past 3 years), but others don't have that restriction. Contact me and I'll tell you exactly what's available for your situation.
I offer free applications with same-day pre-approval decisions in most cases. Once you're pre-approved, you're ready to make offers — which is a major advantage in a competitive market.
Why Work With Joel Lobb
Joel Lobb
Kentucky Mortgage Loan Officer · NMLS #57916
I've spent over 20 years helping Kentucky families navigate the homebuying process — from first-time buyers to veterans, rural buyers to refinances. I work exclusively in Kentucky, which means I know these programs, these markets, and the nuances that out-of-state lenders miss.
My goal is straightforward: find the right loan for your situation, not push a product. You'll get honest advice, fast turnaround, and someone who picks up the phone.
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