Kentucky homebuyers can access up to $7,500 in down payment assistance through the Kentucky Housing Corporation (KHC). On the state's $216,500 median home price, that covers roughly 17% of a standard 20% down payment. Kentucky has 2 state DPA programs total.
Primary Program: Regular Down Payment Assistance
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
- Administering Agency
- Kentucky Housing Corporation (KHC)
- Income Limit
- 80% of Area Median Income
- Purchase Price Cap
- $481,176
Additional Kentucky DPA Programs
Affordable Down Payment Assistance
Deferred Loan$10,000
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Down Payment Calculator
Down Payment Planner
Kentucky median pre-loaded
Your Savings Plan
Timeline
7.3 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →Frequently Asked Questions
What down payment assistance is available in Kentucky?
Kentucky's primary DPA program is the Regular Down Payment Assistance, administered by the Kentucky Housing Corporation (KHC). It provides up to $7,500 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage. Additional programs include Affordable Down Payment Assistance.
How much down payment do I need in Kentucky after using DPA?
On a $216,500 home (Kentucky median), a 20% down payment is $43,300. With the Regular Down Payment Assistance covering $7,500, your remaining gap would be $35,800. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Kentucky down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
Can I combine Kentucky DPA with other assistance programs?
Yes — Kentucky's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Kentucky down payment assistance?
The Regular Down Payment Assistance requires income at or below 80% of the Area Median Income (AMI) for your county. AMI limits vary by location and household size. Your lender or the Kentucky Housing Corporation (KHC) can confirm the exact limit for your area.
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