Updated 1/20/2026

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easier.

Connect with a DPA team

How Down Payment Assistance Works

I need to give a quick overview of how down payment assistance works. After that, the programs are listed.

With down payment assistance, you'll run into two different types:

  • A grant

  • A loan

A Grant

If we meet the qualifications up front, then it's money that does not need to be repaid.

A Loan

If the down payment assistance comes in the form of a loan, then pay attention to the three different types:

  • Repayable

  • Deferred

  • Forgivable

Repayable is just as most imagine. It charges interest over a certain amount of time, with monthly payments until it's paid off.

Deferred loans usually don't require a monthly payment, and typically don't charge interest. It's due in full when you refinance, sell the home, or when it ceases to be your primary residence.

Forgivable loans will disappear if you meet the criteria, which usually comes down to keeping the home as your primary residence for a specific amount of time.

Okay with that, here are the programs!

Kentucky

Kentucky Housing Corporation (KHC) Down Payment Assistance Program

Louisville Metro Down Payment Assistance Program

  • What It Offers: Provides up to 20% of the purchase price in down payment assistance.

  • Who Qualifies: Homebuyers purchasing in Louisville who meet income and credit requirements.

  • Income Limits: Based on HUD guidelines.

  • Repayment: Forgivable loan after a set period if the buyer remains in the home.

  • Website: https://louisvilleky.gov/government/housing/down-payment-assistance-program

Lexington-Fayette Urban County Government Homebuyer Assistance Program

Owensboro

  • Assistance: Provides up to 10% of the sales price of the home in financial assistance.

  • Eligibility: Qualified low- and moderate-income residents (80% AMI or below) purchasing within city limits.

  • Repayment: Assistance is a deferred loan forgivable after a set affordability period (usually 5–15 years).

  • Program details: https://owensboro.org/departments/community_development/grant_programs.php

Covington

Florence

Independence

  • Assistance: Provides a 0% interest, deferred loan of up to $10,000 for down payment and closing costs.

  • Eligibility: Available to buyers in consortium cities (Florence, Independence, Erlanger, Ludlow, Newport, Bellevue, Dayton, and Walton).

  • Repayment: Forgivable after 5 years if the homeowner remains in the property.

  • Program guidelines: https://www.cityofindependence.org/325/Northern-Kentucky-Home-Consortium

Updated 1/20/2026

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easier.