KENTUCKY Down Payment Assistance in 2026: What Actually Qualifies You
Last reviewed: September 2026
Kentucky homebuyers don’t necessarily need a 20% down payment. The Kentucky Housing Corporation (KHC) runs the state’s primary assistance program.
What Down Payment Assistance Programs Are Available in Kentucky in 2026?
KHC DPA provides up to $12,500, now a permanent program, structured as an approximately 15-year second mortgage at a modest fixed rate.
Can FHA Be Combined With Kentucky DPA?
Yes — KHC’s DPA pairs with FHA, VA, USDA, and conventional first mortgages through approved lenders.
Are There Local Kentucky Down Payment Assistance Programs?
• City of Covington — FHA, conventional, VA
FHA, Conventional, VA, USDA, or DPA — How Do They Compare?
Option | Typical Down Payment | Best Starting Fit | Key Tradeoff |
FHA | 3.5% | Limited savings or flexible credit needs | Upfront and annual mortgage insurance |
Conventional | As low as 3% for qualifying buyers | Stronger credit, lower long-term PMI | More credit-sensitive qualification |
VA | Often 0% | Eligible veterans, service members, spouses | Entitlement and COE required |
USDA | Often 0% | Eligible rural/suburban Kentucky properties | Property location and income limits |
FHA/Conventional + KHC DPA | Reduced by assistance amount | Buyers short on cash who qualify for the loan | Fixed second-lien payment factors into DTI |
Can Repeat Buyers Get Down Payment Assistance in Kentucky?
Yes — KHC’s DPA is available to both first-time and repeat buyers who meet the program’s income and credit requirements.
What Cash Might You Still Need at Closing?
KHC assistance can substantially reduce upfront cash, though earnest money and inspection/appraisal fees still typically apply.
Who Specializes in Down Payment Assistance in Kentucky?
Kentucky buyers should look for a KHC-approved mortgage professional who regularly closes KHC loans alongside standard FHA, conventional, VA, and USDA financing.
I’m Mike Belfor, Branch Manager and Mortgage Loan Originator with American Pacific Mortgage, NMLS #264700, licensed to originate mortgages in Kentucky. My broader mortgage career includes more than 23 years of lending experience, approximately 578 first-time-homebuyer transactions, and approximately 115 transactions involving down payment assistance. Those are career-wide figures, not Kentucky-specific production numbers.
Ready to See What You Qualify For?
Reach out and I’ll run your numbers against what’s currently available.
Mike Belfor | Branch Manager – Loan Originator | American Pacific Mortgage | NMLS #264700 | Licensed in Kentucky | mikebelfor.com
Program guidelines, rates, income limits, and funding availability are subject to change. Not all borrowers or properties qualify. Information is educational and should be confirmed against current program and underwriting guidelines.
Official Sources - Kentucky Housing Corporation — Down Payment Assistance
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