Grant Directory

Verified government funding opportunities

Mortgage Lending Partners – Down Payment Assistance and Tax Credits

Open

Kentucky Housing CorporationKYFirst-Time Homeowner

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.Second mortgage down payment assistance loan plus mortgage credit certificate tax credit2025-11-30Deadline: Nov 30, 2025Scope: Statewidestate

Updated: Dec 5, 2025

Summary

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.

Benefits

down payment assistanceclosing cost assistancetax credit

Who Can Apply

lenderhomebuyer

Eligible Locations

Owner-occupied homes in Kentucky financed with eligible KHC first mortgage products originated by approved KHC lending partners.

Eligibility

Designed for KHC lending partners originating KHC loans for Kentucky homebuyers; borrowers must qualify for KHC first-mortgage programs, meet MRB or Secondary Market income and credit standards, and purchase owner-occupied homes in Kentucky to benefit from both DAP and the mortgage tax credit.

Full Description

The Mortgage Lending Partners – Down Payment Assistance page explains to lenders that KHC “offers several options that other loans don’t offer such as our down payment assistance and tax credits,” emphasizing that these features both expand eligibility and lower the long-term cost of homeownership. It briefly describes the Down Payment Assistance Program (DAP) and links back to the Future Homebuyers DAP page for full consumer-facing details, where Regular DAP is defined as a subordinate loan up to $12,500, repaid over 15 years at 4.75% interest. The page also references KHC’s Home Buyer Tax Credit, a mortgage credit certificate program that can provide a dollar-for-dollar reduction of federal income tax—up to 20% of the annual mortgage interest paid each year a buyer occupies the home—freeing up more income for housing costs. Lender-oriented navigation exposes related tools like loan reservations, interest-rate pages, calculators, marketing tools and training resources, making this URL a key reference point for how KHC structures its DAP and tax-credit benefits within the broader mortgage-lending ecosystem.

Verification & Details

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

Recommended Resource

First-Time Homebuyer Starter Pack (2025 Edition)

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

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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
View details →

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

Open

Lexington-Fayette Urban County Government – Housing Advocacy & Community DevelopmentKYFirst-Time HomeownerVaries — non-repayable subsidies or 0-2% second mortgages via partner agencies

Updated: Dec 5, 2025

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.

Eligible for: Lower- to moderate-income first-time homebuyers who live in Lexington and are purchasing an owner-occupied home within Lexington-Fayette Cou…

Funding: Assistance varies by partner agency; structured to fill gap between affordable mortgage and purchase price/closing costsDeadline: Rolling; assistance is delivered through partner nonprofits on an ongoing basis while funding is available—interested buyers must contact partner agencies rather than applying directly to LFUCG.RollingLocalindividualfirst-time homebuyerdown payment assistancesubsidyaffordable loan
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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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