Louisville Down Payment Assistance 2026 | Up to $25,000 Metro Housing fo...

Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2026

🚨 2026 Welcome Home Grant: Coming March 2026

Good news! The Federal Home Loan Bank of Cincinnati (FHLBC) will be opening the Welcome Home Grant program again in March 2026. Details on grant amounts and income limits are still being finalized, but funds will be distributed on a first-come, first-served basis—so early action will be key.

Stay tuned to this page for updates as soon as 2026 program details are announced. In the meantime, explore other down payment assistance options available now.

Kentucky Welcome Home Grant: What You Need to Know

📅 2025 Program Status

As of March 13, 2025, the Welcome Home Program Grant officially closed for the year. The limited funding was quickly reserved on a first-come, first-served basis.

What to Expect: 2026 Welcome Home Grant Details

Based on the 2025 program, the 2026 Welcome Home Grant will likely offer similar benefits, but we're waiting for official confirmation on:

❓ Not Yet Confirmed for 2026

• Grant amount (was $20,000 in 2025)
• Income limits by county
• Exact opening date in March
• Any program changes or updates

✓ Expected to Remain the Same

• Primary residence requirement
• First-come, first-served distribution
• Low-to-moderate income focus
• Non-repayable grant (not a loan)
• Available statewide in Kentucky

How to Stay Updated

We'll update this page as soon as 2026 program details are announced by the Federal Home Loan Bank of Cincinnati. To ensure you don't miss the opening:

• Contact us now to get on the pre-approval list—we'll notify you the moment the grant opens
• Follow our blog for real-time updates on grant availability
• Check back in early March 2026 for official program details

Don't Wait: Alternative Down Payment Assistance Available Now

While the Welcome Home Grant won't be available again until March 2026, there are several down payment assistance programs you can access right now:

KHC Down Payment Assistance

Up to $10,000 in down payment help for first-time and repeat buyers. Works with FHA, VA, USDA, and Conventional loans.

VA Loans (For Veterans)

No down payment required. No monthly mortgage insurance. Competitive rates for veterans and active-duty service members.

USDA Loans (Rural Eligible Areas)

100% financing available in eligible rural areas. Many parts of Kentucky qualify, including suburban and rural counties.

FHA Loans with KHC Layering

As little as 3.5% down + up to $10,000 KHC assistance = minimal out-of-pocket costs for first-time buyers.

Conventional 3% Down + Grants

First-time buyer options with reduced PMI and potential grant layering for even lower upfront costs.

FHA Smart Down Payment Assistance

5% grant program paired with FHA financing for accessible homeownership.

The Smart Move: Get Pre-Approved Now

Don't let 2026 grants pass you by again. Get pre-approved and be ready to move fast when the program opens.

Our free mortgage pre-approval with same-day approval gets you positioned to act immediately when grant funding becomes available. Plus, you'll explore all available down payment assistance options right now.

Email Joel Now Call/Text (502) 905-3708

Example 80% AMI Income Limits for Jefferson County, Kentucky (Louisville Metro)

Many Kentucky homebuyer assistance programs, including the Welcome Home Grant, use 80 percent of Area Median Income (AMI) to determine household eligibility. Because the 2026 income limits have not yet been released, the figures below are provided as an example based on the most recent published guidelines.

These income limits are for Jefferson County, Kentucky (Louisville Metro) and are shown for educational purposes only. Actual 2026 limits may change and will be updated once official numbers are released.

Jefferson County KY – Example 80% AMI Income Limits

Household Size	Example 80% AMI Income Limit
1 Person	Approximately $54,000
2 Person Household	Approximately $61,700
3 Person Household	Approximately $69,400

Income limits are based on the total gross income of all occupants who will live in the home, not just the borrowers on the loan application.

Important Notes About Income Limits

• These figures reflect recent 80 percent AMI examples for Jefferson County and are not official 2026 limits.
• The Federal Home Loan Bank of Cincinnati typically releases updated Welcome Home Grant income limits in March each year.
• Actual eligibility will depend on the final 2026 income chart published for Jefferson County.

If you are close to these income levels, planning ahead is critical. Once the 2026 Welcome Home Grant opens, funds are reserved quickly and eligibility is strictly verified.

Welcome Home Grant eligibility is determined by the Federal Home Loan Bank of Cincinnati using official county-level 80 percent AMI income limits in effect at the time funds are released. Household income calculations and eligibility determinations are subject to final program guidelines.

Looking for Income Limits in Another Kentucky County?

Income limits for the Welcome Home Grant and other down payment assistance programs vary by county. This page currently provides an example for Jefferson County, Kentucky. Additional county-specific examples will be added over time.

• Jefferson County (Louisville Metro) – example shown above
• Fayette County (Lexington) – coming soon
• Warren County (Bowling Green) – coming soon
• Kenton County – coming soon
• Hardin County – coming soon

If you are buying in a different county, reach out directly and I can review the current income limits that apply to your specific location.

For additional down payment assistance programs that use income limits, including Kentucky Housing Corporation options, visit:

Kentucky Housing Corporation Income Limits and Down Payment Assistance Programs

Questions? We're Here to Help

Have questions about the 2026 Welcome Home Grant or want to explore down payment assistance options available now? Reach out—I'm here to guide you through every step of the homebuying process.

Joel Lobb
Mortgage Broker – FHA, VA, KHC, USDA

📞 Call/Text: 502-905-3708
📧 Email: kentuckyloan@gmail.com
🌐 Website: MyLouisvilleKentuckyMortgage.com

This page will be updated as soon as official 2026 Welcome Home Grant details are announced by the Federal Home Loan Bank of Cincinnati. Bookmark this page for future reference.

$2,000 CLOSING COST GRANT Kentucky Housing Corporation Special Offer

 

KHC Announces $2,000 Closing Cost Grant
Available for 180 Borrowers

Effective with new reservations TODAY, Tuesday, July 15, 2025, Kentucky Housing Corporation (KHC) will offer a limited-time $2,000 closing cost grant. Funding has been made available for 180 loans. 

Remaining funds will be updated weekly on the PowerLender dashboard. 

• First-come, first-served until funds are exhausted.
• Purchase transactions only.
• List as a grant in Desktop Underwriter (DU) and Loan Product Advisor (LPA).
• List as a gift in the Guaranteed Underwriting System (GUS). 
• Can be used with KHC Down payment Assistance Program (DAP). 
• A KHC grant/gift letter will be available at time of reservation and must be signed by borrower(s).  
• List the Closing Cost Grant on the Final 1003 in Section 4d.  

$2,000 CLOSING COST GRANT

Kentucky Housing Corporation Special Offer

🚨 LIMITED TIME OFFER 🚨

Effective July 15, 2025 - Only 180 borrowers will receive this grant!

💰

$2,000 FREE MONEY

Grant money that doesn't need to be repaid - reduces your closing costs significantly

🏡

Purchase Only

Available for home purchases only - perfect for first-time homebuyers

⚡

Stack with DAP

Can be combined with KHC Down Payment Assistance for maximum savings

Program Details

• First-come, first-served until funds are exhausted
• Purchase transactions only
• List as a grant in Desktop Underwriter (DU) and Loan Product Advisor (LPA)
• List as a gift in the Guaranteed Underwriting System (GUS)
• Can be used with KHC Down Payment Assistance Program (DAP)
• KHC grant/gift letter required and must be signed by borrower(s)
• Must be listed on Final 1003 in Section 4d

⏰ ACT FAST!

Only 180 grants available - funds will be updated weekly until exhausted

Ready to Get Started?

Contact Joel Lobb - Your Kentucky Mortgage Expert

📧 Email

kentuckyloan@gmail.com

📱 Call/Text

502-905-3708

🌐 Website

www.mylouisvillekentuckymortgage.com

📍 Address

911 Barret Ave.
Louisville, KY 40204

🎯 Specialization

Kentucky Mortgage Loan Expert For Kentucky FHA, VA, USDA, Fannie Mae and KHC Down Payment Assistance Loans

🏛️ Licensing Information

Joel Lobb - Personal NMLS# 57916
Evo Mortgage - Company NMLS# 1738461
Kentucky Mortgage Loan Only
www.nmlsconsumeraccess.org

CALL NOW TO APPLY!

Important Disclosures:

This website is not endorsed by the FHA, VA, USDA, KHC, or any government agency. It is an independent platform created to educate and assist homebuyers with expert advice and accessible tools. Equal Housing Lender.

These materials are not from HUD, FHA, the USDA, KHC, or the VA. These materials were not approved by any government agency. They are independent of any government agency.

For information directly from KHC, visit their official website. Loan approval subject to credit approval and program guidelines.

KHC Home Buyer Tax Credit Down payment Assistance

KHC Home Buyer Tax Credit:

• Reduces the amount of federal income tax
you pay.
• Gives you more income to qualify for a
mortgage loan.
• Is effective for the life of the loan. As long as you
have a mortgage, you can claim the credit!
• A 25 percent tax credit of the mortgage interest
paid over a year (not to exceed $2,000).
• The remaining 75 percent of mortgage interest
can still be taken as a yearly deduction.
• Offers a reduction of the one-time fee* to $200
if you obtain your mortgage financing through
Kentucky Housing Corporation (KHC).



Down payment Assistance

Programs (DAP):
• Regular DAP:
Up to $6,000 second mortgage; paid back over
a 10-year period at 5.50 percent interest.
• Affordable DAP:
Up to $4,500 second mortgage; paid back
over a 10-year period at 1 percent interest.
Affordable DAP household income limits apply.
*DAPs can pay the home buyer tax credit fee.





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KHC Down payment Assistance for Kentucky First time home buyers

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KHC Down payment Assistance for Kentucky First time home buyers


Down payment Assistance Program (DAP)


1. Make sure the property is existing (previously occupied) and below the purchase price
limit of $195,700.  If not, HOME DAP is eliminated.  Proceed to question 3.

2. To ensure HOME DAP eligibility, ensure the following requirements are met:
• Household income below the HOME DAP income limits, available in the MRB
Program Guide, page 10.
• Borrower requires a minimum of $1,000 assistance, up to a max of $4,500, based on
need.  Must use their own liquid funds in excess of two months’ PITI before they
look to HOME DAP.
• Must go maximum allowed LTV on the first mortgage.
• Property must pass HQS inspection (Lead Paint).
• Cannot be used in conjunction with REO properties or FHA 203K streamline
program.
If all of these are met, you must determine how much HOME DAP can be accessed.
This is total cash needed to close, minus seller concessions, minus borrower funds in
excess of two months’ PITI.  Whatever remains, rounded to the nearest $100, is the
HOME DAP loan amount.

3. Does the borrower or property meet one of the three Neighborhood DAP qualifiers?  
• Is the property being purchased as an REO, foreclosure, bank-owned, or
short sale property?
• Has the property been marketed for six months or more?
• Has the borrower experienced a foreclosure, short sale, or deed-in-lieu in the
past and now credit qualifies?
If yes to any of these, the borrower qualifies for the $10,000 Neighborhood DAP.
Funds can be used toward the down payment or for closing costs and prepaids.  Loan is
amortized over 30 years at 1 percent interest rate.  The borrower must qualify with
second mortgage payment.  If not, proceed to Regular DAP in question 4.

4. Borrower is eligible for Regular DAP up to $6,000 in $100 increments with a minimum
$500 loan amount.  Regular DAP is amortized over ten years at 6 percent.  Must go to
maximum LTV allowed on first mortgage amount.  Borrower must qualify with second
mortgage payment.


First Mortgage Quick Reference Card

To successfully originate KHC mortgages, begin with prequalified applicants and
properties that meet FHA, VA, RHS, or Conventional guidelines.  They must be
purchasing or refinancing a single-family, one-unit, owner-occupied property, in
Kentucky.  If so:


1. Make sure the property or refinance is below $243,000.

2. Make sure they meet KHC’s simple credit overlays:

• 640 credit score for FHA, VA, and RHS.
• 680 credit score for Conventional.
• Max ratio caps of 40% / 45%.
• AUS Approval required, except on RHS.

3.Does the borrower require down payment and closing costs assistance with their
FHA, VA, or RHS first mortgage? If yes, proceed to the DAP

Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

http://mylouisvillekentuckymortgage.com