Whether you’re buying your first home, using down payment assistance, or rebuilding credit — there’s a program that fits. Compare them side by side before you commit.
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By Joel Lobb, Mortgage Loan Officer · NMLS #57916 · Updated September 12, 2026 The difference between a Kentucky home inspection and a Kentucky appraisal is their purpose: an inspection evaluates the home's condition, while an appraisal estimates its market value for the mortgage process. One does not replace the other. A homebuyer's two questions: What needs attention, and what is the property worth? Buying in Louisville, Lexington, Bowling Green, or elsewhere in Kentucky? Before paying for inspections and appraisal services, understand who orders each report, what it covers, and how the results may affect your purchase. In this guide Comparison Inspection checklist Appraisal process Costs and timing Video FAQs Kentucky home inspection vs. appraisal: the difference HOME INSPECTION Condition What needs attention? Roof · Foundation · Plumbing Electrical · Heating and cooling Usually arranged by: the buyer Result: an inspection report Next step: review repairs and f...
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Getting a Kentucky Mortgage in 3 Simple Steps
No confusing paperwork trails. No surprise fees. A clear path from first call to keys in hand.
01
💬 Get Pre-Qualified
Free application review with same-day answers. We look at your credit, income, and goals — no cost, no obligation, no pressure.
02
📋 Compare Your Options
FHA vs. Conventional vs. USDA vs. KHC — run side by side with your actual numbers so you see the real payment before you commit.
03
🏠 Close & Get Your Keys
Guided from contract to closing — appraisal, title, and underwriting coordinated so you always know what happens next.
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Hi, I’m Joel Lobb — a Kentucky dad who’s spent 20+ years helping families across all 120 counties buy their first home. When you call, you get me — not a phone tree. Questions on a Saturday morning? I answer.
1,300+ Kentucky families have trusted me with their mortgage — from Louisville to Lexington to the smallest towns in the state. Free application reviews, same-day pre-approvals, and honest answers about what you actually qualify for.
What Is the Louisville Metro Down Payment Assistance Program?
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Louisville, KY Homebuyer Guide
Louisville $25,000 Down Payment Assistance Program (2025–2026)
Updated from Louisville Metro Office of Housing & Community Development Homebuyer Handbook (January 2026)
If you’re searching for the Louisville $25,000 down payment assistance program, this guide breaks down how it works, who qualifies, and how to apply in Jefferson County, KY.
Louisville Metro’s Down Payment Assistance Program can provide up to $25,000 for eligible Jefferson County homebuyers.
Many people call it a “grant,” but the program is structured as a 0% interest second mortgage with no monthly payment.
A portion may be forgiven after the affordability period, and any remaining balance is typically repaid from net proceeds if you sell.
How much you can get
Maximum assistance: $25,000
Also limited to 15% of the purchase price
Used toward down payment and/or eligible closing costs
No cash back allowed at closing
0% second mortgage + forgiveness explained
No interest accrues
No monthly payment on the DPA second mortgage
Forgiveness depends on the affordability period (5–10 years depending on assistance amount)
If you sell before the required period ends, repayment is generally due from net proceeds
Income limits (80% AMI – 2025)
Household gross income must be at or below 80% AMI based on household size.
Household size
Max income
1
$54,150
2
$61,850
3
$69,600
4
$77,300
5
$83,500
6
$89,700
7
$95,900
8
$102,050
Credit requirements (common deal-killers)
No unpaid collections or charge-offs
No open/undischarged bankruptcy
Bankruptcy must be discharged at least 1 year before applying
Medical collections may be allowed up to stated limits (program specific)
Eligible homes and purchase price limits
Eligible homes generally include single-family, condos, co-ops, and certain modular homes on permanent foundations
Property must pass required inspections and environmental review
Submit a complete Metro DPA application (incomplete files do not move)
Receive eligibility determination
Go under contract with enough time for Metro processing
Submit contract + lender packet + inspection docs as required
Metro review + approval process
Pass inspection/environmental review
Close and fund
Can you combine this with FHA, VA, USDA, or KHC?
In many cases, yes — but it must be structured correctly from the start so the first mortgage guidelines and Metro DPA rules do not conflict.
This is where most buyers lose time, extensions, or the deal entirely.
FAQ: Louisville $25,000 down payment assistance
Is this a $25,000 grant?
Many people call it a grant, but the program is typically structured as a 0% interest second mortgage. A portion may be forgiven after the affordability period, and the remaining balance is usually repaid from net proceeds if you sell.
How long does the process take?
Plan for counseling + application + eligibility processing time, then additional Metro processing after you go under contract. Your contract should allow enough time to avoid last-minute extensions.
Can I combine it with FHA, VA, USDA, or KHC?
Often yes, but the loan must be structured so first mortgage rules and Metro DPA rules align. This is a file-structure issue, not a “maybe” issue.
What are the most common reasons people get denied?
Income over the limit, unresolved collections/charge-offs, insufficient bank funds, incomplete documents, and contract timelines that don’t allow Metro processing.
What should I do first?
Start counseling, get pre-approved, and confirm you meet the income/credit/bank-funds requirements before you write an offer.
Licensing Information: Joel Lobb is licensed in Kentucky only. NMLS Personal ID: #57916 | Company NMLS ID: #1738461 | www.nmlsconsumeraccess.org
Disclaimer: Educational content only. Not affiliated with Louisville Metro Government, FHA, VA, USDA, Kentucky Housing Corporation, or any government agency.
Not a commitment to lend. All approvals subject to underwriting and program requirements. Program guidelines and funding availability can change.
How to Get Approved for a Mortgage Loan in Kentucky Thank you for visiting. I hope you find this website both informative and empowering as you explore your Kentucky mortgage options. My goal is simple: help you understand what mortgage underwriters actually review, help you avoid preventable approval issues, and help you choose the right loan program for your situation. I specialize in assisting Kentucky first-time homebuyers with FHA, VA, USDA Rural Housing, KHC down payment assistance , and Fannie Mae conventional mortgage loans . I proudly serve all 120 counties in Kentucky. FHA Loans in Kentucky VA Loans in Kentucky USDA Rural Housing Loans in Kentucky Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I've had the privilege of helping more than 1,300 Kentucky families buy a home or refinance their current mortgage. Whether you are a first-time buyer, a veteran, a USDA buyer, a credit-challenged ...
Kentucky Welcome Home Grant 2026 Update: Program Closed and Out of Funds May 2026 update for Kentucky homebuyers: the 2026 Welcome Home Grant is now closed for new reservations. This does not mean you cannot buy a home. It means you need to pivot quickly to other Kentucky mortgage and down payment assistance options. May 2026 Update Welcome Home Grant Closed KHC DAP Still Available USDA, VA, FHA Options Important Update: The 2026 Welcome Home Grant Is Closed The 2026 Welcome Home Grant through FHLB Cincinnati is now closed and out of funds for new reservations . If your lender did not reserve the money before the program closed, you should not build your home purchase plan around receiving this grant for 2026. The hard truth: this grant was popular, limited, and first-come, first-served. Once the available funds were reserved, the program closed. Good News: Kentucky Buyers Still Have Options ...
Using a Pastor / Minister’s housing allowance to qualify for a mortgage Member of the Clergy Income for A Mortgage Loan Approval Where a borrower is a member of the clergy, all of the following will be required to document income: 1) Most recent year full tax return, 2) Most recent pay stubs, 3) W-2s, 4) Contract from the church to determine benefits. The IRS looks at the housing allowance portion of a pastor’s income as an exclusion from income. Therefore the housing allowance is not reported on the personal tax returns as taxable income. Even though it is not reported on the tax returns, a pastor’s housing allowance can be used in qualifying for a mortgage loan to purchase or refinance a home. As long as we can document the receipt of the housing income through a signed letter from the church/employer stating the actual breakdown of the pay and by providing copies of the checks received, we should be able to count the housing allowance as incom...
