Down Payment Assistance Programs in Kentucky (2026 Guide)

# Down Payment Assistance Programs in Kentucky (2026 Guide) Saving for a down payment is one of the biggest hurdles for first-time home buyers. Fortunately, Kentucky offers 3 assistance programs that can help you achieve homeownership sooner than you thought possible. ## Kentucky Housing Agency All state DPA programs are administered by Kentucky Housing Corporation (KHC). **Contact Information:** - Website: [https://www.kyhousing.org](https://www.kyhousing.org) - Phone: 502-564-7630 ## Available Programs Kentucky offers 3 major down payment assistance programs: ### Affordable DPA | Feature | Details | |---------|---------| | Maximum Assistance | Up to $10,000 | | Program Type | Second Mortgage | | Description | 0% interest, no monthly payment. Repaid when home is sold. | ### Regular DPA | Feature | Details | |---------|---------| | Maximum Assistance | Up to $6,000 | | Program Type | Second Mortgage | | Description | For buyers with higher incomes. 0% interest deferred loan. | ### Mortgage Credit Certificate | Feature | Details | |---------|---------| | Maximum Assistance | Up to $2,000/year tax credit | | Program Type | Mcc | | Description | Federal tax credit for 25% of mortgage interest paid. | ## How to Apply ### Step 1: Check Your Eligibility Most programs require: - First-time homebuyer status (no home ownership in past 3 years) - Income at or below program limits - Minimum credit score (usually 620-640) - Home price within program limits ### Step 2: Complete Homebuyer Education All KHC programs require completion of a HUD-approved homebuyer education course. This prepares you for the responsibilities of homeownership. ### Step 3: Work with an Approved Lender KHC maintains a list of approved lenders trained in their programs. These lenders can help you combine DPA with your mortgage. ### Step 4: Find Your Home Once pre-approved, work with a real estate agent to find a home within program price limits. ## Combining with Your Mortgage Down payment assistance can be layered with various loan types: | Loan Type | Min Down | With KHC DPA | |-----------|----------|--------------------------| | FHA | 3.5% | DPA covers most or all | | Conventional | 3-5% | DPA covers most or all | | VA | 0% | DPA for closing costs | | USDA | 0% | DPA for closing costs | ## Real Cost Savings With Kentucky's median home price of $263,000: | Scenario | Down Payment Needed | With Max DPA | |----------|--------------------|--------------| | FHA (3.5%) | $9,205 | Potentially $0 | | Conventional (5%) | $13,150 | Significantly reduced | | Conventional (20%) | $52,600 | Reduced by DPA amount | ## Conclusion Don't let down payment concerns keep you from homeownership. Kentucky's DPA programs have helped thousands of first-time buyers achieve their dream. Contact KHC today to learn which programs you qualify for. Use our [Kentucky Mortgage Calculator](/mortgage-calculator/kentucky) to see how DPA affects your monthly payment. --- *Source: Kentucky Housing Corporation. Program details subject to change. Contact KHC for current requirements.*