Louisville Metro Down Payment Assistance Program


Down Payment Assistance Program

Applications for this program will reopen on Monday, July 18.

The Louisville Metro Down Payment Assistance Program provides low- to moderate-income homebuyers with down payment and closing cost assistance for purchasing a home in the Louisville Metro area. Funds can be applied to the purchase of an existing or newly constructed home and are NOT limited to first-time homebuyers.

Down Payment Assistance is in the form of a partially forgivable loan with 0% interest. Homebuyers must occupy the purchased home as their primary residence for a period of 5 – 15 years, depending upon the amount of assistance received. By the end of that specified period, 50% of the loan shall be forgiven. The remaining balance is not due until the sale of that home.   The maximum amount of assistance per homebuyer will be no more than 20% of the purchase price, but also based on the need the individual buyer. Section 8 Homeownership clients are encouraged to apply.  

Goals of the Down Payment Assistance Program
  • Encourage homeownership, throughout Louisville Metro, which is economical to low-moderate income consumers in order to assist in preventing future foreclosures.
  • Encourage mixed-income neighborhoods and the de-concentration of poverty.
  • Encourage homeownership in Metro’s Neighborhood Revitalization Strategy Area – Russell.
  • Assist homebuyers in becoming informed consumers in order to successfully navigate real estate transactions and understand the responsibility of homeownership.
  • Encourage reinvestment in Louisville Metro’s vacant and abandoned properties.
  • Household income at or below 80% of the area median income.
Persons in Household123456
80% AMI $47,450  $54,200  $61,000  $67,750  $73,200  $78,600 


  • Homebuyer(s) already pre-approved for a mortgage from a local financial institution.
  • Homebuyer(s) credit - no unpaid collections, past due balances or un-discharged bankruptcies. (Exception: Medical collections up to $10,000.00.)
  • Homebuyer(s) has at least $1,500 in savings.
  • Homes eligible for assistance must meet the Home Ownership Value Limits below.

Existing Homes

 1-unit  2-unit (duplex) 3-unit (triplex) 4-unit (fourplex)


New Homes

 1-unit  2-unit (duplex) 3-unit (triplex) 4-unit (fourplex)
How to Apply
  1. Complete homebuyer counseling (6-hr minimum) from a HUD-approved counseling agency. If applying with co-applicant, both must complete. Married couples must apply as co-applicants.
  2. Apply to the Down Payment Assistance Program by clicking the green button below. Please allow 30 days for Metro review and verification.
  3. Homebuyer(s) receives letter of eligibility, stating entrance or denial into Homebuyer Assistance Program.
  4. Homebuyer(s) engages Realtor to assist in home search.
  5. Upon an accepted sales contract, homebuyer(s) submits Home Purchase Packet, executed sales contract, and primary loan documents to Metro.
  6. Metro staff underwrites the loan and presents to the Case Review Board.
  7. Homebuyer(s) receives conditional commitment letter from Metro, stating the amount of assistance available to purchase that home.
  8. Metro Office of Housing inspector coordinates with Realtor. Home must receive a passing inspection in order to receive Metro assistance.
  9. Lender, Realtor, and Metro coordinate with the homebuyer to close on the home.
  10. To apply now, click here
 LOUISVILLE, Ky. Low to moderate-income homebuyers in the Louisville Metro who are seeking assistance with down payments and closing costs can now apply for the city’s Down Payment Assistance Program.

Applications for the program reopened on July 18 for the purchase of an existing or newly constructed home, according to Louisville Metro Government.

A release states program funds are not limited to first-time homebuyers.

The funds will be used as a partially-forgivable loan with 0% interest, where homeowners will need to occupy their purchased home for a period of five to 15 years.

Following that period, 50% of the loan will be forgiven, and the rest of the balance will not be due until the sale of the home.

Officials said the Down Payment Assistance Program encourages home ownership in the Louisville Metro and assisting potential homebuyers in making real estate transactions to understand the responsibilities of homeownership.

The program is available to residents with a household income at or below 80% of the area median income, homebuyers who are already pre-approved for a mortgage and have no unpaid collections or past due balances on their credit.

For more information and how to apply, click or tap here.

Applicant Resources 

DPA Brochure Program Handbook