Why This Program Matters Right Now
Kentucky homebuyers face the same affordability pressure seen across many states: the upfront cash needed to buy a home can be a major barrier before monthly ownership costs even begin. Down payment assistance can help eligible buyers move from planning to purchase when savings alone are not enough.
The HOME Investment Partnerships Program – Home Buyer Assistance Program is worth highlighting because it offers grant-based support and is available across Kentucky through local organizations that receive HOME funds.
What This Program Provides
The program provides up to $25,000 in down payment assistance.
The program is administered by Kentucky Housing Corporation as the fund administrator to local partners. The funding source is the U.S. Department of Housing and Urban Development.
The provided data identifies down payment as the allowable use of funds. Closing cost assistance is not publicly disclosed as an eligible use.
Program Structure
This is a grant program.
Assistance repayment is not required.
Repayment terms are not applicable because the assistance is structured as a grant. An interest rate is also not applicable.
HOME funds require a period of affordability. The specific affordability period is not publicly disclosed in the provided data.
Key Numbers
- Maximum assistance: $25,000
- Minimum assistance: Not publicly disclosed
- Assistance amount calculation: Up to $25,000; calculation method not publicly disclosed
- Minimum borrower contribution: Not publicly disclosed
- Income limit: 80% of area median income for all counties in Kentucky
- Minimum household income: Not applicable
- Credit score requirement: Not publicly disclosed
- Provider phone: (502) 564-7630 or toll-free in Kentucky at (800) 633-8896
- Provider address: Kentucky Housing Corporation, 1231 Louisville Road, Frankfort, KY 40601
- Eligible unit types listed in the provided data: Single, duplex, triplex
Eligibility Requirements
- Program status: Active
- Program state: Kentucky
- County coverage: All counties
- Income limits apply
- Maximum household income: 80% of area median income for all counties in Kentucky
- The program must serve low- and very low-income households
- First-time homebuyer requirement: Not publicly disclosed
- Prior ownership rules: Not publicly disclosed
- Credit score requirement: Not publicly disclosed
- Debt ratio, reserve, employment, or lender overlay requirements: Not publicly disclosed
- Citizenship status allowed: Not publicly disclosed
- Current residency requirement: Not publicly disclosed
- Profession-based targeting: Not applicable
- Identity or culture-based targeting: None disclosed
Property Requirements
- Eligible home location: Kentucky
- County coverage: All counties
- Allowable property types: Not publicly disclosed
- Eligible unit count listed in the provided data: Single, duplex, triplex
- Maximum purchase price: Not publicly disclosed
- Approved first mortgage types: Not publicly disclosed
How the Process Works
- Confirm that the home will be located in Kentucky.
- Review whether household income is at or below 80% of area median income.
- Seek local organizations in Kentucky that receive HOME funds for down payment assistance.
- Work with the local partner to confirm available funding, application requirements, and the final assistance amount.
- Complete any required housing counseling or homebuyer education if required by the local HOME-funded homebuyer program.
- Coordinate the assistance with the first mortgage lender if a participating lender is required.
Affordability Impact
This program reduces the upfront cash needed to purchase a home by providing grant-based down payment assistance.
This program does not reduce the monthly payment. It reduces upfront cash required.
Where This Fits in the Market
This program sits in the upfront cost assistance category. Its primary function is to reduce the cash needed at closing for the down payment.
Compared with loan-based down payment assistance structures, this program is notable because the provided data identifies the funding type as a grant and states that repayment is not required. The tradeoff is that several operational details are not publicly disclosed in the provided data, including credit score rules, approved first mortgage types, participating lenders, and the exact calculation method for the final assistance amount.
For a buyer who qualifies by income and works through a local HOME-funded partner, the program may help close the gap between available savings and the required down payment.
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