Kentucky Down Payment Assistance
Welcome Home Grant vs. KHC DAP Comparison
VS
Welcome Home Grant
$20,000
TRUE GRANT
Payment
$0/month (FREE)
Available
April 6, 2026 ONLY
Retention
5-year retention period
Income Test
ALL household occupants
Income Limit
≤80% MRB ($77k/$89k)
KHC DAP
$12,500
SECOND MORTGAGE
Payment
~$97/month (15 yrs)
Available
Year-round, anytime
Retention
None (sell anytime)
Income Test
Borrowers OR household*
Income Limit
Varies by funding type
⚠️ The Household Income Trap
Welcome Home Grant counts ALL occupants in the home. Many families who think they qualify are shocked to learn that their adult children, non-borrowing spouses, or other household members push them over the income limit.
Borrower 1 (on loan):
$50,000
Borrower 2 (on loan):
$35,000
Adult child (NOT on loan):
$30,000
Total Household Income:
$115,000
80% MRB Limit (3+ persons):
$88,688
❌ DOES NOT QUALIFY for Welcome Home
✅ QUALIFIES for KHC Secondary Market ($85k borrower income)
💡 Key Takeaway for Kentucky LOs
KHC Secondary Market funding only counts borrower income, not the entire household. This makes it the better choice for multi-generational homes or families with working adult children. Don't automatically recommend Welcome Home based on the higher dollar amount—screen household composition first!
Joel Lobb - Kentucky Mortgage Expert
20+ Years | 1,300+ Families Helped | NMLS #57916
Call or Text
502-905-3708
Email
kentuckyloan@gmail.com
Specializing in Welcome Home Grant, KHC DAP, FHA, VA, USDA & First-Time Homebuyers
Quick Reference Guide
Max Grant
$20,000
Max Loan
$12,500
Welcome Opens
April 6, 2026
KHC Available
Year-Round
Welcome Counts
All Occupants
KHC Counts
Varies
Retention
5 yrs / None
Monthly Payment
$0 / $97
80%
of MRB limit
Welcome Home threshold
Welcome Home threshold
$88,688
Max household income
3+ person (most KY counties)
3+ person (most KY counties)
10
Days 2025 program lasted
(March 3-13, 2025)
(March 3-13, 2025)