KHC Down Payment Assistance Calculator

KHC Down Payment Assistance Calculator: Your Payment With the $12,500 DAP

Updated November 2026 · Reviewed by Joel Lobb, Senior Loan Officer, NMLS #57916, EVO Mortgage

Kentucky Housing Corporation's Down Payment Assistance (DAP) is a second mortgage of up to $12,500, in $100 steps, at 4.75% fixed and repaid over 15 years. The full $12,500 adds about $97 a month to your payment. Enter a price below to see your total monthly payment and how much cash you would still need at closing.

Home price ($) Loan program FHA (3.5% down) VA ($0 down) USDA / RHS ($0 down) Conventional HFA Preferred (3% down) KHC rate type Mortgage Revenue Bond Secondary Market Bond rates are for first-time buyers under KHC's lower income limits. First mortgage rate (%)Filled from KHC's 45-day lock rates. You can edit it.

Down payment assistance (second mortgage)

Estimated closing costs (% of price) DAP amount ($)Up to $12,500, in $100 steps DAP interest rate (%)KHC's DAP rate as of November 2026 DAP termYears. Every KHC DAP is 15 years

Taxes and insurance

Property tax (% per year) Homeowners insurance ($/mo) Conventional PMI estimate (%/yr)Used only for HFA Preferred

First mortgage
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Mortgage insurance—

KHC DAP second
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Property tax + insurance—

Estimated monthly payment—

Cash needed without DAP—

Cash needed with DAP—

Check if I qualify for KHC →

Or call or text Joel: 502-905-3708

Estimate only, not a loan offer or rate lock. KHC rates change daily and require a 45-day lock through a KHC-approved lender. DAP is a second mortgage, not a grant. It is repaid over 15 years, and its payment counts in your debt-to-income ratio. KHC purchase price and income limits apply. Joel Lobb, NMLS #57916, EVO Mortgage, Company NMLS #1738461, 10602 Timberwood Cir Ste 3, Louisville, KY 40223. Equal Housing Opportunity.

How KHC down payment assistance works

Feature	KHC DAP (November 2026)
Amount	Up to $12,500, in $100 increments, and no more than your down payment and closing costs
Type	Second mortgage (a loan, not a grant)
Rate and term	4.75% fixed, repaid over 15 years
Pairs with	A KHC first mortgage: FHA, VA, USDA/RHS, or Conventional (HFA Preferred / Freddie HFA Advantage)
Credit score	Usually 620 or higher
Limits	KHC income and purchase price limits by county
Debt-to-income	The DAP payment counts as a monthly debt

See all program details on the KHC down payment assistance guide.

What the DAP costs each month

DAP amount	Monthly payment (4.75%, 15 years)
$5,000	$38.89
$7,500	$58.34
$10,000	$77.78
$12,500	$97.23

On a $200,000 home with an FHA loan, you need about $7,000 down plus roughly $6,000 in closing costs. A $12,500 DAP brings that $13,000 down to about $500. The trade-off is about $97 a month for 15 years.

Bond rates vs. secondary market rates

KHC first mortgages come in two rate types. Mortgage Revenue Bond rates are lower and are for first-time buyers under KHC's lower income limits. Secondary Market rates allow higher incomes. Conventional HFA Preferred loans always use secondary market pricing, which runs a little higher for loans over $300,000. The calculator fills in KHC's posted 45-day lock rates for each one. Rates change daily, so call for today's numbers before you write an offer.

Is the DAP worth it?

• Use it when the down payment and closing costs are what's keeping you renting. The monthly cost is small, and you keep your savings as a cushion.
• Use less of it if your debt-to-income ratio is tight. Every $1,000 of DAP adds about $7.78 a month. Check your ratio with the Kentucky DTI calculator.
• Plan to pay it off if you sell or refinance. The DAP balance is due when the first mortgage is paid off.

Frequently asked questions

Is KHC down payment assistance a grant?

No. KHC DAP is a second mortgage of up to $12,500 at 4.75% fixed, repaid over 15 years. It is due in full if you sell or refinance the first mortgage.

How much is the monthly payment on a $12,500 KHC DAP?

About $97.23 a month at 4.75% over 15 years. A $10,000 DAP is about $77.78 a month, and $5,000 is about $38.89.

Can I use KHC DAP with a VA or USDA loan?

Yes. KHC pairs DAP with FHA, VA, USDA/RHS and Conventional HFA first mortgages. VA and USDA need no down payment, so the DAP goes toward closing costs and prepaid items.

Do I have to be a first-time homebuyer for KHC DAP?

DAP is available with any KHC first mortgage as long as you meet KHC income and purchase price limits. The lower Mortgage Revenue Bond rates are the part reserved for first-time buyers.

What credit score do I need for KHC down payment assistance?

Usually a 620 middle credit score or higher, along with the underwriting rules of the first mortgage you pair it with.

More free Kentucky homebuyer tools

Credit score simulatorQualifying income calculatorDTI calculator