Kentucky Housing Income Limits 2026 | KHC Income & Purchase Price Limits by County

If you are trying to figure out whether you earn too much to use a Kentucky Housing Corporation (KHC) loan, this page has the current numbers. Below are KHC's income limits by county, the maximum purchase price, the down payment assistance amounts, and the credit and debt-to-income rules that go with them — updated for 2026.

The short answer

KHC uses two different income-limit charts. Under the Secondary Market programs, most Kentucky counties allow up to $147,350 in qualifying income, rising to $195,650 in the Northern Kentucky counties. Under the lower Mortgage Revenue Bond (MRB) programs, most counties cap household income near $101,040 for a 1–2 person household and $117,880 for 3 or more. The maximum purchase price for either is $566,354.

• $566,354Max purchase price
• $12,500Max down payment help
• 620Min score (FHA/VA/RHS)
• 660Min score (conventional)

What Kentucky Housing Corporation Is — and Why the Income Limit Matters

Kentucky Housing Corporation is the state's housing finance agency, created by the Kentucky General Assembly in 1972. KHC is not a bank and does not take applications directly. It funds 30-year fixed-rate first mortgages and down payment assistance through approved lenders across all 120 Kentucky counties.

Because KHC money is subsidized, every KHC loan carries two ceilings a conventional loan does not have: a household or qualifying income limit tied to your county, and a maximum purchase price. Clear both, meet the credit and debt-to-income rules, and you may qualify for the down payment assistance that makes the difference for most first-time buyers.

Miss the income limit by even a few hundred dollars and the file has to move to a standard Kentucky FHA loan, VA, or conventional program without the assistance. That is why getting these numbers right at the beginning matters so much.

The Two KHC Income Limit Charts (This Is Where Buyers Get Confused)

Nearly every mistake I see with KHC comes from reading the wrong chart. KHC funds its first mortgages from two different sources, and each one has its own income test.

Secondary Market

Higher limits. Most buyers use this.

• Open to first-time and repeat buyers
• FHA, VA, RHS/USDA, and conventional (HFA Preferred, Freddie HFA Advantage)
• Limit is based on the income used to qualify the loan
• Household size does not change the limit
• Most counties: $147,350

Mortgage Revenue Bond (MRB)

Lower limits. Often the better interest rate.

• Generally first-time buyers only, unless the home is in a targeted area
• FHA, VA, and RHS/USDA only
• Limit is based on total household income, including non-borrowing adults
• Household size does change the limit
• Most counties: $101,040 (1–2) / $117,880 (3+)

The practical rule: if your income fits under MRB, we check the MRB rate first, because bond money is often priced below the secondary market. If your income is above MRB but under the secondary market limit, you can still get a KHC loan with down payment assistance — you just use the other funding source.

KHC Secondary Market Income Limits by County

These are gross annual qualifying income limits — the income actually used to approve the loan. Counties not listed below use the statewide figure of $147,350.

Type your county to filter the table:

County	Income Limit
Anderson	$162,400
Boone	$195,650
Bourbon	$179,200
Bracken	$195,650
Bullitt	$169,050
Campbell	$195,650
Christian	$153,475
Clark	$179,200
Daviess	$150,850
Fayette	$179,200
Franklin	$161,000
Gallatin	$195,650
Hancock	$148,925
Harrison	$148,225
Henry	$169,050
Jefferson	$169,050
Jessamine	$179,200
Kenton	$195,650
Lyon	$156,275
Madison	$154,700
McCracken	$157,850
McLean	$150,850
Meade	$151,900
Mercer	$159,075
Nelson	$153,125
Oldham	$169,050
Pendleton	$195,650
Scott	$179,200
Shelby	$185,150
Spencer	$169,050
Trigg	$153,475
Washington	$155,750
Woodford	$179,200
All other Kentucky counties	$147,350

Source: KHC Secondary Market Income Limitations. Limits are revised periodically — confirm the current figure before you write an offer.

KHC MRB Household Income Limits by County

MRB counts total household income, not just the income on the application. A working adult who lives in the home but is not on the loan still counts. Limits below are 1–2 person households and 3-or-more person households.

Type your county to filter the table:

County	1–2 Person	3+ Person
Adair	$85,080	$99,260
Allen	$94,080	$109,760
Anderson	$97,974	$112,670
Ballard	$96,600	$112,700
Barren	$85,080	$99,260
Bath	$101,040	$117,880
Bell	$101,040	$117,880
Boone	$111,800	$128,570
Bourbon	$102,400	$117,760
Boyd	$93,360	$108,920
Boyle	$96,960	$113,120
Bracken	$111,800	$128,570
Breathitt	$101,040	$117,800
Breckinridge	$91,800	$107,100
Bullitt	$97,214	$111,796
Butler	$87,000	$101,500
Caldwell	$87,600	$102,200
Calloway	$99,000	$115,039
Campbell	$111,800	$128,570
Carlisle	$92,040	$107,380
Carroll	$85,920	$100,240
Carter	$101,040	$117,880
Casey	$101,040	$117,880
Christian	$98,994	$113,843
Clark	$102,400	$117,760
Clay	$101,040	$117,880
Clinton	$101,040	$117,880
Crittenden	$98,760	$115,085
Cumberland	$101,040	$117,880
Daviess	$99,294	$114,188
Edmonson	$99,480	$114,947
Elliott	$101,040	$117,880
Estill	$101,040	$117,880
Fayette	$102,400	$117,760
Fleming	$101,040	$117,880
Floyd	$101,040	$117,880
Franklin	$98,134	$112,854
Fulton	$85,080	$99,260
Gallatin	$111,800	$128,570
Garrard	$91,440	$106,680
Grant	$95,520	$111,440
Graves	$85,080	$99,260
Grayson	$85,080	$99,260
Green	$85,080	$99,260
Greenup	$93,360	$108,920
Hancock	$99,514	$114,441
Hardin	$96,240	$112,280
Harlan	$101,040	$117,880
Harrison	$99,594	$114,533
Hart	$85,080	$99,260
Henderson	$97,080	$113,260
Henry	$97,214	$111,796
Hickman	$95,520	$111,440
Hopkins	$90,120	$105,140
Jackson	$101,040	$117,880
Jefferson	$97,214	$111,796
Jessamine	$102,400	$117,760
Johnson	$101,040	$117,880
Kenton	$111,800	$128,570
Knott	$101,040	$117,880
Knox	$101,040	$117,880
Larue	$96,240	$112,280
Laurel	$86,640	$101,080
Lawrence	$101,040	$117,880
Lee	$101,040	$117,880
Leslie	$101,040	$117,880
Letcher	$101,040	$117,880
Lewis	$101,040	$117,880
Lincoln	$85,080	$99,260
Livingston	$88,560	$103,320
Logan	$96,960	$113,120
Lyon	$98,674	$113,475
Madison	$98,854	$113,682
Magoffin	$101,040	$117,880
Marion	$88,680	$103,460
Marshall	$99,694	$114,648
Martin	$101,040	$117,880
Mason	$85,920	$100,240
McCracken	$98,494	$113,268
McCreary	$101,040	$117,880
McLean	$99,294	$114,188
Meade	$99,174	$114,050
Menifee	$101,040	$117,880
Mercer	$98,354	$113,107
Metcalfe	$101,040	$117,880
Monroe	$85,080	$99,260
Montgomery	$93,840	$109,480
Morgan	$101,040	$117,880
Muhlenberg	$90,960	$106,120
Nelson	$99,034	$113,889
Nicholas	$88,320	$103,040
Ohio	$85,080	$99,260
Oldham	$97,214	$111,796
Owen	$94,320	$110,040
Owsley	$101,040	$117,880
Pendleton	$111,800	$128,570
Perry	$101,040	$117,880
Pike	$101,040	$117,880
Powell	$101,040	$117,880
Pulaski	$85,920	$100,240
Robertson	$101,040	$117,880
Rockcastle	$101,040	$117,880
Rowan	$101,040	$117,880
Russell	$86,760	$101,220
Scott	$102,400	$117,760
Shelby	$105,800	$121,670
Simpson	$93,120	$108,640
Spencer	$97,214	$111,796
Taylor	$92,520	$107,940
Todd	$92,280	$107,660
Trigg	$98,994	$113,843
Trimble	$99,120	$115,016
Union	$91,800	$107,100
Warren	$99,480	$114,947
Washington	$98,734	$113,544
Wayne	$101,040	$117,880
Webster	$86,160	$100,520
Whitley	$101,040	$117,880
Wolfe	$101,040	$117,880
Woodford	$102,400	$117,760

Source: KHC MRB Household Income Limits. Counties containing federally targeted census tracts may allow higher limits and waive the first-time buyer requirement — ask me to check the specific address.

Targeted Areas Can Change the Answer

Certain census tracts in Kentucky are designated targeted areas. If the home you are buying sits inside one, two MRB rules relax: the first-time buyer requirement is waived, and the income limit is often higher. Counties containing targeted tracts include Adair, Barren, Boone, Boyd, Calloway, Campbell, Christian, Clark, Daviess, Fayette, Fulton, Garrard, Green, Greenup, Hart, Henderson, Hopkins, Jefferson, Kenton, Laurel, Lincoln, Madison, Mason, McCracken, Monroe, Montgomery, Ohio, Pulaski, Russell, Scott and Warren.

Targeted status is set by census tract, not county line — two houses on the same street can fall differently. If you have owned a home before and thought MRB was closed to you, send me the address and I will check the tract.

KHC Maximum Purchase Price for 2026

KHC currently lists a maximum purchase price of $566,354 for both new and existing homes, under Secondary Market and MRB alike. That is far above the median Kentucky sales price, so purchase price is rarely the constraint — income almost always is.

One note for accuracy: KHC's published income-limit worksheets still carry the prior $544,232 purchase price figure while the program pages show $566,354. Purchase price limits are updated on their own schedule. Before you write an offer near the top of the range, have your lender confirm the number in force that week.

KHC Down Payment Assistance: Up to $12,500

This is the reason most Kentucky buyers use KHC in the first place. KHC's Down Payment Assistance Program (DAP) is available to every borrower who takes a KHC first mortgage and meets the income and purchase price limits.

Feature	Detail
Maximum assistance	$12,500, in $100 increments
Minimum assistance	$1,000
Structure	Repayable second mortgage — not a grant
Rate and term	Currently 4.75%, amortized over 15 years
What it covers	Down payment, closing costs, and prepaid escrows
Who is eligible	First-time and repeat buyers with a KHC first mortgage

DAP rates and terms are set by KHC and change from time to time. Confirm the current rate at application.

Be clear-eyed about one thing: DAP is a loan, not free money. $12,500 over 15 years at 4.75% adds roughly $97 a month on top of your first mortgage payment. For a lot of buyers that trade is worth it — it is the difference between buying this year and saving for two more. But you should see the full payment before you decide. I will show you both scenarios side by side.

More detail on the assistance program is here: KHC down payment assistance: full terms, rate and monthly cost.

Credit Score, Debt-to-Income, and Loan Type Rules

Requirement	FHA / VA / RHS	Conventional
Minimum credit score	620	660
Maximum debt-to-income	50% with automated approval	50% with automated approval
Minimum down payment	3.5% FHA / 0% VA and RHS	3%
Loan term	30-year fixed	30-year fixed
Available under MRB	Yes	No — Secondary Market only

A word on the 50% debt-to-income ceiling: it is a maximum, not a target. Qualifying at 50% means roughly half your gross monthly income is committed to debt before groceries, gas, or savings. It is allowed, and sometimes it is the right call. It is not automatically a good idea, and I will tell you honestly when I think a file is stretched too thin.

Which Loan Programs Work With KHC

FHA

3.5% down, 620 minimum score, flexible on past credit issues. The 2026 Kentucky FHA loan limit is $541,287 in every county.

VA

100% financing for eligible veterans, service members, and surviving spouses. No monthly mortgage insurance. No VA county loan limit for buyers with full entitlement.

USDA / Rural Housing

100% financing in eligible rural and small-town areas — which covers a surprising amount of Kentucky, including outer parts of the Louisville and Lexington metros. USDA has its own separate household income limit on top of KHC's.

Conventional (HFA Preferred)

3% down with reduced mortgage insurance and cancelable PMI at 20% equity. 660 minimum score. Secondary Market funding only.

Update: The Welcome Home Grant Is Out of Funds for 2026

The Federal Home Loan Bank of Cincinnati's Welcome Home Grant — up to $20,000 in forgivable assistance — opened earlier in 2026 and is now out of funds for new reservations. It is first-come, first-served every year and demand across Kentucky, Ohio, and Tennessee consistently outruns the money.

If you were counting on Welcome Home, KHC's $12,500 DAP is the practical alternative available right now, and zero-down USDA or VA financing may remove the need for a grant entirely. Full detail here: Kentucky Welcome Home Grant 2026 status and alternatives.

The lesson worth repeating: do not build your entire home-buying plan around a single grant. Grants run out. Programs change. A plan with two or three viable paths is the one that closes.

How to Tell If You Qualify: Five Steps

1. Find your county on the right chart. Start with MRB. If your household income fits, you may get the better rate. If not, check Secondary Market.
2. Count the right income. MRB counts everyone in the household, including adults not on the loan. Secondary Market counts only the income used to qualify. Include overtime, bonus, commission, self-employment, retirement, and child support that will continue.
3. Check your credit score. 620 opens FHA, VA, and USDA. 660 opens the conventional options. If you are close, small corrections can move a score in 30 to 45 days — ask before you pay anything down.
4. Add up your monthly debts. Car payments, student loans, credit card minimums, and child support all count. Housing plus debt has to land at or under 50% of gross income with an automated approval.
5. Get a written pre-approval. A real pre-approval means income and assets have been documented and the file has run through automated underwriting — not just a rate quote. That is what listing agents in Kentucky take seriously.

Common Mistakes That Cost Kentucky Buyers a KHC Loan

• Using last year's chart. KHC revises income limits periodically. An old blog post or an outdated PDF is the most common source of a wrong answer.
• Forgetting a household member's income on MRB. An adult child working part time, or a parent living in the home, can push a household over the MRB limit even though they are not on the loan.
• Assuming a raise disqualifies you. It might move you from MRB to Secondary Market — but Secondary Market limits are much higher, and DAP is still available.
• Assuming repeat buyers are shut out. Secondary Market is open to repeat buyers, and MRB opens to them in targeted areas.
• Waiting for a grant to reopen. Welcome Home is closed for 2026. Buying now with DAP is usually better than waiting a year with higher prices.

Find Out Where You Stand — No Cost, No Obligation

Tell me your county, your household income, and roughly what you want to spend. I will tell you which KHC chart applies, whether the down payment assistance is available to you, and what the payment actually looks like. Free application. Same-day pre-approvals in most cases.

Call or Text 502-905-3708 Email Joel

Kentucky Housing Income Limits: Frequently Asked Questions

What is the income limit for Kentucky Housing Corporation in 2026?

It depends on which KHC program and which county. Under the Secondary Market programs, most Kentucky counties allow up to $147,350 in qualifying income, rising to $169,050 in Jefferson County and $195,650 in Boone, Kenton, Campbell, Bracken, Gallatin and Pendleton counties. Under the MRB programs, most counties cap total household income at $101,040 for a 1–2 person household and $117,880 for households of 3 or more.

Does KHC count household income or just my income?

Both, depending on the program. MRB counts the total gross income of everyone living in the household, including adults who are not on the mortgage. Secondary Market counts only the income used to qualify the borrowers on the loan. This single difference decides eligibility for a lot of Kentucky families.

What is the maximum purchase price for a KHC loan?

KHC currently lists $566,354 as the maximum purchase price for new and existing homes under both Secondary Market and MRB programs. Because that ceiling is well above the median Kentucky sales price, income limits are almost always the binding constraint rather than price.

Can I still get KHC down payment assistance if I have owned a home before?

Yes. KHC's Secondary Market programs are open to first-time and repeat buyers, and the down payment assistance is available to anyone with a KHC first mortgage who meets the income and purchase price limits. The MRB programs are generally first-time buyer only, unless the property is located in a federally targeted census tract.

Is KHC down payment assistance a grant I have to pay back?

KHC's down payment assistance is a repayable second mortgage, not a grant. Up to $12,500 is available in $100 increments, currently at 4.75% amortized over 15 years. That works out to roughly $97 per month on a full $12,500 draw, on top of your first mortgage payment.

What credit score do I need for a Kentucky Housing loan?

620 is the minimum for KHC's FHA, VA, and Rural Housing options. Conventional options through KHC require a 660 minimum. Maximum debt-to-income is 50% with an automated underwriting approval.

Is the Welcome Home Grant still available in Kentucky?

No. The Federal Home Loan Bank of Cincinnati's Welcome Home Grant is out of funds for 2026. It is offered first-come, first-served each year and demand across Kentucky, Ohio and Tennessee exhausts the funding quickly. KHC's $12,500 down payment assistance remains available, as do zero-down USDA and VA loans.

Do KHC income limits change?

Yes. KHC revises income limits and purchase price limits periodically as area median incomes and housing costs are updated. Always confirm the current figure with a KHC-approved lender before writing an offer, especially if your income is within a few thousand dollars of the limit.

Related Kentucky Mortgage Guides

• KHC Loan Programs Overview
• KHC Down Payment Assistance 2026 — Rates, Terms & Credit Rules
• Kentucky FHA Loans: 3.5% Down Requirements
• Kentucky Welcome Home Grant — 2026 Status
• Kentucky Housing (KHC) First-Time Home Buyer Programs
• Kentucky Housing Corporation (KHC) Guide

Official KHC Sources

• KHC Homebuyer Eligibility Requirements
• KHC Loan Programs
• KHC Down Payment Assistance
• KHC Secondary Market Income Limitations (PDF)
• KHC MRB Household Income Limits (PDF)

About the author — Joel Lobb, Mortgage Loan Officer

I have spent more than 20 years originating Kentucky mortgages and have helped over 1,300 Kentucky families buy or refinance a home. I work with FHA, VA, USDA/Rural Housing, KHC, and Fannie Mae programs in all 120 Kentucky counties, and I answer my own phone.

Joel Lobb | EVO Mortgage | 911 Barret Ave, Louisville, KY 40204
Call or text 502-905-3708 | kentuckyloan@gmail.com
NMLS #57916 | Company NMLS #1738461

Disclosures: This page is for educational purposes and is not a commitment to lend. All loans are subject to credit approval, income and asset verification, appraisal, and program requirements. Rates, income limits, purchase price limits, and program terms are set by Kentucky Housing Corporation and their investors and are subject to change without notice — verify current figures with a KHC-approved lender before making a purchase decision. Licensed in Kentucky only. This website is not endorsed by, sponsored by, or affiliated with Kentucky Housing Corporation, FHA, VA, USDA, HUD, or any government agency. NMLS consumer access: www.nmlsconsumeraccess.org. Equal Housing Lender.