First-Time Homebuyer Assistance Programs for 2022 in Kentucky

Last Updated on August 7, 2022 by Danielle McDonald

Mortgage Assistance for Homebuyers in Kentucky

Homebuyer Assistance Program

The Department of Housing and Community in the City of Louisville offers The Homebuyer Assistance program to assist individuals in achieving their goal of homeownership. This program offers low- to moderate-income homebuyers a loan to cover their down payment and closing costs.

Eligibility Requirements

Anyone looking to buy an existing or newly built home in the Louisville Metro Area can apply for the Homebuyer Assistance program. All borrowers must also have an annual household income below 80% of the AMI (area median income). This is adjusted according to household size (limits are shown below). Furthermore, all applicants must have an approved qualifying first mortgage from a local financial institution, and must have a good, qualified credit. The program, however, is not available to borrowers with liquid assets exceeding $15,000 since it is only for households that need help. They must also complete a HUD Certified Counseling agency homeownership education course.

There is no requirement for first-time homebuyers, but the property must be used as the borrower’s primary residence for at least five to fifteen years, depending on the amount of assistance received. These homes can also be vacant or abandoned properties only.

Income Limits

  • 1-person household: $37,200
  • 2-person household: $42,500
  • 3-person household: $47,800
  • 4-person household: $53,100
  • 5-person household: $57,350
  • 6-person household: $61,600
  • 7-person household: $65,850
  • 8-person household: $70,100

This programme is similar to the First-Time Homebuyer Assistance Programs in Kansas.

Hardest Hit Fund Down Payment Assistance

Kentucky Housing Corporation (KHC), recognizes that while many potential homebuyers are able to afford monthly mortgage payments for a new house, not enough money is saved up to pay the down payment. Then, the new HHF Down Payment Assistance Program is designed to address this problem.

Available Assistance

HHF DAP offers eligible people up to $10,000 in downpayment assistance to help them reach their homeownership dreams. Then, a zero-interest, forgivable second mortgage loan for a term of five years is available as down payment assistance.

Eligibility Requirements

HHF DAP is only available to first-time homebuyers. Anyone who has owned a house in the past three years will not be eligible. To prove their eligibility, borrowers must provide proof of eligibility by providing the last three years’ federal tax returns and transcripts. All applicants must also complete a pre-purchase education for homebuyers. The Secondary Market Income Limits and Purchase Price are applicable. However, the property must be in Christian, Hardin or Jefferson County. The property cannot be eligible for new construction, so it must have been occupied previously.

This program provides financial assistance to qualified applicants who are interested to purchase a home, but cannot afford the upfront costs. It also includes the down payment and closing costs. Additionally, these costs can be significant and people might find themselves stuck in a renters’ trap if they are unable to pay them.

Louisville Down Payment Assistance Program

The Down Payment Assistance Program offers low- and moderate-income homebuyers a loan to cover their down payment and closing costs. Additionally, this loan is available to anyone looking to buy a home in Louisville Metro.

Eligibility Requirements

Anyone who wants to buy a home in Louisville Metro can apply for the Down Payment Assistance Program. All borrowers must also have an annual household income below 80 percent of the AMI (area median income), adjusted for size. Then, all of them must have an approval from a local financial institution for a qualifying mortgage and have good credit. However, the program is not available to borrowers with liquid assets exceeding $15,000 as they are eligible only for households that need it. They must also complete a HUD Certified Counseling agency homeownership education course.

There is no requirement for first-time homebuyers, but the property should be the borrower’s primary residence for at least five to fifteen years depending on the amount of assistance received. These homes can be vacant or abandoned only.

Income Limits

  • 1 person household: $37,200
  • 2 person household: $42,500
  • 3 person household: $47,800
  • 4 person household: $53,100
  • 5 person household: $57,350
  • 6 person household: $61,600
  • 7 person household: $65,850
  • 8 person household: $70,100

Are you interested in the First-Time Homebuyer Assistance Programs in Louisiana?

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