Grant Directory

Verified government funding opportunities

First-Time Homebuyer Program – Lexington-Fayette Urban County Government

Open

Lexington-Fayette Urban County Government – Housing Advocacy & Community DevelopmentKYFirst-Time Homeowner

Funding: Assistance varies by partner agency; structured to fill gap between affordable mortgage and purchase price/closing costsVaries — non-repayable subsidies or 0-2% second mortgages via partner agenciesRollingDeadline: Scope: Localstate

Updated: Dec 5, 2025

Summary

Lexington’s First-Time Homebuyer Program connects income-eligible households to a network of nonprofit partners that provide non-repayable mortgage subsidies and 0–2% loans, helping first-time buyers bridge the gap between what they can borrow and the total cost of purchasing a home in Lexington.

Benefits

down payment assistancesubsidyaffordable loan

Who Can Apply

individualfirst-time homebuyer

Eligible Locations

Owner-occupied homes within Lexington-Fayette County, KY

Eligibility

Lower- to moderate-income first-time homebuyers who live in Lexington and are purchasing an owner-occupied home within Lexington-Fayette County; applicants must meet income and underwriting guidelines set by partner agencies and may need to complete homebuyer education and counseling through REACH, Lexington Habitat for Humanity, Community Ventures, or the Lexington Community Land Trust, often in coordination with Kentucky Housing Corporation loan products.

Full Description

Rather than operating as a direct grant office, Lexington-Fayette Urban County Government uses its First-Time Homebuyer Program page to route aspiring buyers to a coalition of trusted housing partners—REACH, Lexington Habitat for Humanity, Community Ventures Corporation, and the Lexington Community Land Trust—who structure the actual subsidies and affordable loans. These organizations blend city, state (including Kentucky Housing Corporation), federal, and philanthropic dollars into packages that can include non-repayable mortgage subsidies, ultra-low-interest second mortgages at 0–2%, and other affordability tools that reduce principal and monthly costs. To participate, buyers must be first-time homeowners, reside in Lexington, and purchase a home within city/county limits; they work directly with one of the listed agencies to complete an intake, verify income eligibility, attend homebuyer education classes, and secure an appropriate first mortgage. LFUCG’s role is to fund and coordinate the ecosystem, enforce fair-housing standards, and ensure that local resources target lower- to moderate-income residents who would otherwise be priced out of homeownership. For SEO and directory purposes, this listing represents Lexington’s official first-time homebuyer gateway, even though applications are handled by partner agencies instead of the city itself.

Verification & Details

Status: Open
Source: lexingtonky.gov
Official source → lexingtonky.gov
Apply on official siteUpdated Dec 5, 2025

Recommended Resource

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A complete first-time homebuyer toolkit: 9 checklists, timelines, grant guidance, worksheets + editable Excel/Google Sheet budget & affordability calculator.

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More statewide programs

Explore additional grants available throughout Kentucky that complement this opportunity.

Northern Kentucky HOME Consortium – Home Buyer Assistance Program

Open

Northern Kentucky HOME Consortium / City of Covington Neighborhood ServicesKYFirst-Time Homeowner0% interest deferred forgivable second mortgage loan

Updated: Dec 5, 2025

The Northern Kentucky HOME Consortium’s Home Buyer Assistance Program offers 0% interest, deferred down payment assistance loans—up to $10,000—to help income-qualified buyers in eight Northern Kentucky cities cover down payment and closing costs and transition into long-term homeownership.

Eligible for: Low- and moderate-income homebuyers purchasing an owner-occupied home in one of the Northern Kentucky HOME Consortium cities—Covington, Ludl…

Funding: Deferred, forgivable second mortgage loan up to 10000 dollars to cover lender required down payment and customary closing costs, forgiven pro rata over 10 years while the buyer remains in the home.Deadline: Rolling; homebuyers can apply year-round, but funds are reserved on a first-come, first-served basis once a fully executed purchase contract and complete application are submitted.RollingRegionalindividualfirst-time homebuyerlow- to moderate-income homebuyerdown payment assistanceclosing cost assistanceforgivable loan
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Future Homebuyers – Down Payment Assistance

Open

Kentucky Housing CorporationKYFirst-Time Homeowner15-year amortized loan at 4.75% interest

Updated: Dec 5, 2025

KHC’s Down Payment Assistance page explains how the Down Payment Assistance Program (DAP) helps buyers cover down payment, closing costs and prepaids that often block first-time and moderate-income homebuyers from purchasing a home.

Eligible for: Kentucky homebuyers using a KHC first-mortgage loan who meet KHC income limits, credit and underwriting guidelines, and purchase an owner-oc…

Funding: Up to 12500 dollars in down payment/closing-cost assistanceDeadline: 2025-11-302025-11-30Statewideindividualhomebuyerdown payment assistanceclosing cost assistance
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Louisville Metro Down Payment Assistance Program

Temporarily closed to new applications

Louisville Metro Government – Office of Housing & Community DevelopmentKYFirst-Time Homeowner0% interest partially forgivable second mortgage loan

Updated: Dec 5, 2025

Louisville’s Down Payment Assistance Program is one of Kentucky’s most generous local homebuyer initiatives, offering an interest-free second mortgage of up to 20% of the purchase price (maximum $40,000) to help income-qualified buyers cover down payment and closing costs on primary residences in the Louisville Metro area.

Eligible for: Low- to moderate-income buyers purchasing an existing or newly constructed primary residence in the Louisville Metro area, with household in…

Funding: Zero percent interest second mortgage covering up to 20 percent of the home purchase price, capped at 40000 dollars, to be used for down payment and closing costs; a portion is typically forgiven after 15 years of continuous occupancy and the remainder is due upon sale or transfer, subject to equity.Deadline: Program historically offered on a rolling basis while funds were available; as of October 15, 2025, Louisville Metro’s site indicates the program is not currently accepting new applications while resources are redirected to other single-family initiatives.Rolling (paused)Localindividualfirst-time homebuyerlow- to moderate-income homebuyerdown payment assistanceclosing cost assistanceforgivable loan
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Mortgage Lending Partners – Down Payment Assistance and Tax Credits

Open

Kentucky Housing CorporationKYFirst-Time HomeownerSecond mortgage down payment assistance loan plus mortgage credit certificate tax credit

Updated: Dec 5, 2025

This partner-facing page shows lenders how KHC’s down payment assistance and home buyer tax credits work together to make homeownership possible and more affordable for Kentuckians who might otherwise be priced out.

Eligible for: Designed for KHC lending partners originating KHC loans for Kentucky homebuyers; borrowers must qualify for KHC first-mortgage programs, mee…

Funding: Explains that KHC offers Down Payment Assistance Program loans up to 12500 dollars, repaid over 15 years at 4.75 percent interest, and a Home Buyer Tax Credit providing a federal tax credit of up to 20 percent of annual mortgage interest for eligible borrowers.Deadline: 2025-11-302025-11-30Statewidelenderhomebuyerdown payment assistanceclosing cost assistancetax credit
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