$2,000 KHC Grant + $10,000 Down Payment Assistance for Kentucky Homebuyers
If you're a first-time or repeat homebuyer in Kentucky, July 2025 brings exciting news. The Kentucky Housing Corporation (KHC) just rolled out a limited-time $2,000 Closing Cost Grant, on top of their ongoing $10,000 Down Payment Assistance (DAP) loan. Together, that’s up to $12,000 in total assistance to help you get into your new home with less money out of pocket.
What’s New: The $2,000 KHC Grant (Launched July 15, 2025)
KHC is now offering a $2,000 Closing Cost Grant—no repayment required. Here’s what you need to know:
Can be used toward closing costs, prepaid expenses, or down payment
Stackable with the $10,000 DAP loan
Limited funds: Only $360,000 allocated (approx. 180 buyers statewide)
First-come, first-served – When it’s gone, it’s gone!
Down Payment Assistance (DAP) – Up to $10,000
In addition to the grant, qualified homebuyers can receive up to $10,000 in down payment assistance via a 10-year second mortgage:
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3.75% fixed interest rate
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10-year repayment term
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Can be used with FHA, VA, USDA (RHS), HFA Preferred, or Freddie Mac HFA Advantage loans
Who’s Eligible for KHC Assistance?
Borrower Requirements:
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Must be a U.S. citizen or legal resident
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Must occupy the home as a primary residence
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Cannot own other residential property at closing (for MRB loans)
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First-time OR repeat buyers welcome
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No homebuyer education required
Property Requirements:
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New or existing homes
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Manufactured homes allowed (new units only with VA or RHS loans)
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Appraisal required for all property types
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Termite inspection required for VA loans and new construction
Credit & Income Guidelines:
| Requirement | Details |
|---|---|
| Credit Score (FHA/VA/USDA) | 620 minimum |
| Credit Score (Conventional) | 660 minimum |
| Max DTI (Debt-to-Income) | 50% with AUS approval |
| Bankruptcy/Foreclosure | Must be discharged 2–7 years ago |
| Non-taxable income | May be grossed up |
| Purchase Price Limit | $544,232 |
For FHA, VA, and RHS loans through KHC’s Mortgage Revenue Bond (MRB) program:
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6.000% fixed rate (with or without DAP)
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45-day rate lock through KHC’s lender portal
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⚠️ Rates subject to change—always confirm current pricing with your lender
Why Use KHC for Your Kentucky Mortgage?
Up to $12,000 in total assistance available
Fixed-rate mortgage options
Available statewide through approved KHC lenders
No homebuyer education required
Designed to help you close faster with less cash upfront
Let’s Get You Pre-Approved Today
I’m Joel Lobb, a trusted Kentucky mortgage broker helping first-time and repeat homebuyers take advantage of KHC, FHA, VA, USDA, and Fannie Mae loan programs. If you want to take advantage of the $2,000 grant + $10,000 DAP, let’s talk today before funds run out.
📧 Email: kentuckyloan@gmail.com
📞 Call or Text: 502-905-3708
🌐 Website: www.mylouisvillekentuckymortgage.com
📍 Address: 911 Barret Ave., Louisville, KY 40204
EVO Mortgage | NMLS #1738461 | Personal NMLS #57916
💰 Two Powerful Assistance Programs
- 3.75% fixed interest rate
- 10-year repayment term
- $1,000 - $10,000 range
- Use for down payment, closing costs, or prepaids
- Compatible with FHA, VA, RHS loans
- No repayment required
- Started July 15, 2025
- Limited to 180 grants statewide
- First-come, first-served
- Can stack with DAP loan
✅ Key Qualification Requirements
660+ Conventional
with AUS approval
$544,232
legal resident
repeat buyers
NOT required
