Down payment assistance

Down payment assistance in Kentucky

1 program can help buyers in Kentucky with a down payment and closing costs. Most are for first-time buyers with moderate incomes and are used with a participating lender.

Check which programs fit your situationDown payment assistance finder

Regular Down Payment Assistance Program (DAP)

Open · Repayable loan

Up to $12,500 in $100 increments (minimum $1,000)

A second mortgage paired with a KHC 30-year fixed first mortgage, repaid monthly at 4.75% fixed interest over 15 years. KHC describes the $12,500 maximum as a temporary increase. The borrower must qualify with the extra monthly payment.

Who qualifies: First-time and repeat buyers. Income limits follow the first mortgage program (Secondary Market or MRB). Purchase price limit $566,354. Minimum credit score 620 (FHA, VA) or 660 (Fannie Mae, Freddie Mac). No liquid asset review.

Kentucky Housing Corporation · Agency website → · Checked 2026-09-30

How assistance usually works

Most programs are a second loan with no monthly payment that is forgiven over time or repaid when you sell or refinance, and some are grants. You usually need a program first mortgage from a participating lender, a homebuyer education course and income under the program’s limit. Apply before you make offers, so your pre-approval reflects the help.

More for Kentucky

Kentucky closing costs Kentucky property taxes Where can I afford to buy in Kentucky?Down payment timeline

Programs change often; confirm the details with the agency.