Kentucky Down Payment and Homeownership Assistance

Every state has down payment or homeownership assistance programs; some states have both. The programs are designed to provide affordable housing opportunities to homebuyers who might not ordinarily be able to afford a house.

Each program can have their own income and eligibility requirements but primarily the programs are available for first-time homebuyers or low-income families.

Keep in mind if you had no ownership in a principal residence in the previous 3 years, you are also considered a first-time homebuyer even if you owned a home prior to that 3-year period.

The programs are not usually administered directly through the State. Instead, they are nonprofit based and handled through a third party agency. The list below will start you on your search but be sure to confirm the program is currently available.


HUD Community Development Block Grants (CDBG) – Kentucky contacts – HUD provides grant money to communities and those funds may be used to assist homebuyers
Bowling Green
Make Covington Home

HUD HOME Program – Kentucky contacts – HUD provides grant money to communities designated as participating jurisdictions for assisting homebuyers, rental assistance, and other housing initiatives
Community Ventures Corporation Kentucky Home Financing
The Kentucky Housing Corporation offers:
Homeownership Programs
Counseling Resources

Habitat for Humanity – Through volunteer labor and donations of money and materials, Habitat builds and rehabilitates simple, decent houses with the help of the homeowner (partner) families
Federal Home Loan Bank of Cincinnati – serves Kentucky residents by offering various homebuying programs including Welcome Home grants. For more information, you may call 1 (888) 345-2246
Kentucky Area Development Districts (ADDs) – contact your local ADD to find out more about local homebuying programs
Kentucky Association for Community Action – helps to fund housing programs for low-income residents
Federal Appalachian Housing Enterprise (FAHE) – provides housing assistance in rural, low-income, Appalachian communities
Housing Partnership, Inc. – provides affordable housing services for residents of Jefferson County
Secondary financing/down payment assistance programs are listed by state
USDA Rural Development – programs that reduce the cost of homeownership for low and moderate-income families.