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Northern Kentucky HOME Consortium – Home Buyer Assistance Program

Open

Northern Kentucky HOME Consortium / City of Covington Neighborhood ServicesKYFirst-Time Homeowner

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.0% interest deferred forgivable second mortgage loanRollingDeadline: Scope: Regionalstate

Updated: Dec 5, 2025

Summary

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.

Benefits

down payment assistanceclosing cost assistanceforgivable loan

Who Can Apply

individualfirst-time homebuyerlow- to moderate-income homebuyer

Eligible Locations

Owner-occupied homes in Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, or Dayton, Kentucky that meet HUD purchase price limits and property standards.

Eligibility

Low- and moderate-income homebuyers purchasing an owner-occupied home in one of the Northern Kentucky HOME Consortium cities—Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, or Dayton—who meet HUD income limits (≤80% AMI), satisfy credit and underwriting criteria, agree to occupy the property as their principal residence for at least 10 years, and buy a home within HUD-published purchase-price limits that passes inspection and local property-standard requirements.

Full Description

Funded with federal HOME dollars and administered through the City of Covington’s Neighborhood Services Department, this regional program is designed to increase the number of homeowners across the participating Northern Kentucky communities: Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, and Dayton. Eligible buyers can receive a 0% interest, deferred second mortgage sized to the minimum amount necessary for lender-required down payment and allowable settlement charges, up to a maximum of $10,000. The loan requires no monthly payments, and as long as the homeowner occupies the property as a principal residence, the debt is forgiven at a rate of one-tenth per year over a ten-year period—effectively converting the assistance into a grant for households that stay put. Properties must meet HUD and local housing-quality standards, fall under HUD-published purchase-price limits for one- and two-unit homes, and comply with local zoning rules; manufactured homes must be on permanent foundations with permanent utility connections. Applicants submit an online application through the consortium’s Neighborly Software portal after securing a fully accepted purchase contract and must provide income documentation so staff can verify HUD low- or moderate-income status. If a home is sold or occupancy requirements are violated before year ten, some or all of the assistance is repaid from net sale proceeds, keeping the program sustainable while protecting affordable-housing investments in Northern Kentucky.

Verification & Details

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

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More statewide programs

Explore additional grants available throughout Kentucky that complement this opportunity.

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

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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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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
View details →