2026 Update: The Kentucky Welcome Home Grant is expected to open in spring 2026. Final grant amounts, income limits, and eligibility rules will be released by the Federal Home Loan Bank of Cincinnati when reservations open.
2025 Status: The Welcome Home Grant for 2025 is closed and no longer accepting reservations.
Kentucky Welcome Home Grant Program
The Welcome Home Grant is a down payment and closing cost assistance program offered through the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) and participating lenders in Kentucky. The program is designed to help income-eligible homebuyers overcome one of the biggest barriers to homeownership: upfront cash needed to buy a home.
Funds are limited and awarded on a first-come, first-served basis once the program opens.
How Much Is the Welcome Home Grant?
Grant amounts vary by year based on available funding and program rules.
- In prior years, most eligible homebuyers received up to $20,000.
- Eligible veterans, active-duty military, and some surviving spouses have qualified for higher grant amounts in certain years.
Grant funds may be used toward down payment and closing costs. The grant is not a loan and does not require monthly repayment, as long as program requirements are met.
Who Is Eligible for the Kentucky Welcome Home Grant?
Income Limits
Household income must be at or below 80 percent of the Mortgage Revenue Bond (MRB) income limit for the county where the property is located.
Household income includes the income of all adults who will live in the home, not just the borrowers listed on the mortgage application.
Income limits vary by county and household size and are confirmed when the program opens.
First-Time Buyer Requirement
You do not have to be a first-time homebuyer to qualify.
However, if you are considered a first-time homebuyer (generally defined as not owning a home in the past three years), a homebuyer education course is typically required before closing.
Buyer Contribution
Buyers are generally required to contribute at least $500 of their own funds toward the transaction. This contribution cannot be gifted.
Purchase Contract
A fully executed purchase contract signed by both the buyer and seller is typically required in order to reserve Welcome Home Grant funds.
Eligible Properties in Kentucky
The Welcome Home Grant may be used for the purchase of an eligible primary residence located in Kentucky.
Eligible property types may include:
- Single-family homes
- Townhomes
- Condominiums
- Duplexes and multi-unit properties (up to four units)
- Some manufactured homes, if taxed as real estate and permanently affixed
Investment properties and second homes are not eligible.
Five-Year Retention Requirement
Welcome Home Grant funds are subject to a five-year retention period that is recorded with the deed or restrictive covenants.
During this period, the Federal Home Loan Bank of Cincinnati must be notified if the home is sold, refinanced, transferred, or foreclosed.
If the property is sold or ownership changes before the end of the five-year period, a portion of the grant may be subject to repayment based on program rules.
2026 Welcome Home Grant Timing
- The program typically opens once per year, usually in March or April.
- Funds are limited and often reserved very quickly.
- Buyers must be fully qualified and ready to move forward when reservations open.
Waiting until the program opens to start the loan process often results in missing out on funding.
Next Steps for Kentucky Homebuyers
- Get fully pre-approved with a participating lender.
- Verify household income eligibility early.
- Complete homebuyer education in advance if required.
- Be ready with a signed purchase contract when the program opens.
Kentucky loan program hubs
FAQ: Kentucky Welcome Home Grant requirements
Disclaimer: Program rules, grant amounts, income limits, and availability can change without notice. This is informational only and not a commitment to lend or a guarantee of grant funding.
Email: kentuckyloan@gmail.com
Call/Text: 502-905-3708
Joel Lobb
Mortgage Loan Officer – Expert on Kentucky Mortgage Loans
Website: www.mylouisvillekentuckymortgage.com
Office: 911 Barret Ave., Louisville, KY 40204
EVO Mortgage – Company NMLS# 1738461
Personal NMLS# 57916
