I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
$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:
3.75% fixed interest rate
10-year repayment term
Can be used with FHA, VA, USDA (RHS), HFA Preferred, or Freddie Mac HFA Advantage loans
Who’s Eligible for KHC Assistance?
Borrower Requirements:
Must be a U.S. citizen or legal resident
Must occupy the home as a primary residence
Cannot own other residential property at closing (for MRB loans)
First-time OR repeat buyers welcome
No homebuyer education required
Property Requirements:
New or existing homes
Manufactured homes allowed (new units only with VA or RHS loans)
Appraisal required for all property types
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
Interest Rate – As of July 2025
For FHA, VA, and RHS loans through KHC’s Mortgage Revenue Bond (MRB) program:
6.000% fixed rate (with or without DAP)
45-day rate lock through KHC’s lender portal
⚠️ 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.
As of March 13, 2025, the Welcome Home Program Grant has officially closed for this year. This down payment assistance program offered up to $20,000 in grant funds for qualifying homebuyers. As expected, the limited funding was quickly reserved.
There are several alternatives still available in Kentucky that can help you purchase a home with little to no money down:
KHC Down Payment Assistance– Offers up to $10,000 in down payment help. This assistance is available for first-time and repeat buyers. It is paired with FHA, VA, USDA, and Conventional loans.
USDA Loans – 100% financing available in eligible rural areas (many parts of Kentucky qualify).
VA Loans – There is no down payment required. There is no monthly mortgage insurance. Competitive rates are available for veterans and active duty service members.
FHA Loans – As little as 3.5% down with more flexible credit requirements. Pair it with KHC assistance for lower upfront costs.
Conventional 3% Down Loans– Options for first-time buyers with potential for reduced PMI and grant layering.
5% Grant Programwith the FHA Smart Down payment assistance loan.
A Comprehensive Guide to the Kentucky Welcome Home Grant
For many Kentuckians, the dream of homeownership can feel out of reach due to financial constraints. But thanks to the Kentucky Welcome Home Grant of $20,000 for Kentucky Home Buyers in 2024 that dream might be closer than you think. This grant program, administered by the Federal Home Loan Bank of Cincinnati (FHLBC), offers down payment and closing cost assistance to eligible homebuyers throughout the state.
Whether you're a first-time homeowner or looking to upgrade your living space, understanding the qualifying guidelines is crucial for securing this valuable assistance. Buckle up, folks, as we delve into the details of the Welcome Home Grant and equip you with the knowledge to unlock your Kentucky homeownership dreams!
Eligibility: The First Step on Your Journey
Before diving into the specific details, let's address the first and most important question: are you eligible? Here's a breakdown of the key criteria:
Income: Your total household income must fall at or below 80% of the Mortgage Revenue Bond (MRB) limit for your specific county. These limits vary depending on location, so be sure to check the current limits here at this link below for your desired area.
Property: The grant applies to primary residences only, including single-family homes, townhomes, condominiums, and qualified manufactured homes. The property must be located within eligible Kentucky counties. You can find a list of participating counties on the FHLBC website.
Purchase Contract: You must have a fully executed purchase contract for an eligible property before applying for the grant.
Financial Contribution: You must contribute at least $500 of your own funds towards the down payment and/or closing costs.
Additional Considerations: While not mandatory, completing a homebuyer education course can strengthen your application. Moreover, veterans and active-duty military personnel may be eligible for higher grant amounts.
Diving Deeper: Grant Details and Amounts
The Welcome Home Grant offers assistance in the form of a non-repayable grant. The maximum grant amount varies depending on several factors:
Your down payment: If you contribute more than the required $500 towards your down payment, the grant amount may be reduced to fit within the total program funding available.
Remember: The grant funds cannot be used towards the property purchase price itself. They are strictly for down payment and closing cost assistance.
Finding Your Path: The Application Process
Now that you understand the eligibility and grant details, let's navigate the application process:
Connect with a participating lender: The Welcome Home Grant program operates through partnering lenders, so start by searching for a lender in your area that participates in the program. You can find a list of participating lenders on the FHLBC website or by contacting the organization directly.
Pre-qualify for a mortgage: This shows both you and the lender a realistic picture of your borrowing capacity and strengthens your application.
Gather your documents: Be prepared to provide proof of income, employment, assets, and other required documentation as outlined by your lender.
Complete the grant application: Your chosen lender will walk you through the grant application process and help you submit the necessary paperwork.
Await a decision: The processing time can vary, but you'll typically receive a decision within a few weeks.
Beyond the Guidelines: Valuable Resources and Tips
Remember, knowledge is power! Equip yourself with as much information as possible to ensure a smooth application process. Here are some valuable resources:
Your chosen participating lender: Their expertise can be invaluable in navigating the application process and maximizing your chances of success.
Pro-Tip: Start planning early! Research potential properties, understand the market in your desired area, and get your finances in order well before applying for the grant.
Remember: Homeownership is a significant investment, so proceed with careful planning and consideration. Utilize the available resources, ask questions, and don't hesitate to seek professional guidance if needed.
$20,000 Grant Money Available for Kentucky Home Buyers – First-Time Home Buyers Assistance!
Are you a first-time home buyer in Kentucky looking for financial assistance? The Federal Home Loan Bank has created a special fund to help low-to-moderate income families achieve homeownership. This $20,000 grant is designed to assist home buyers with down payments and closing costs, making it easier to secure a home without the burden of large upfront expenses.
Grant Money for First-Time Home Buyers in Kentucky
The Federal Home Loan Bank grant is an excellent opportunity for Kentucky home buyers who meet income requirements. If you're struggling with saving for a down payment or need extra funds for closing costs, this program can help. Funds are limited and will be available starting March 3rd until they are reserved.
This program is designed for low-to-moderate income households who need financial assistance to purchase a home. It is ideal for first-time home buyers in Kentucky looking for an affordable way to buy a home without high out-of-pocket costs.
Benefits of This Grant for Kentucky Home Buyers
Receive $20,000 in grant money for down payment and closing costs.
Helps first-time home buyers afford a home sooner.
Makes homeownership more accessible for low-to-moderate income families.
Available in multiple counties across Kentucky.
How to Apply for the Kentucky Home Buyer Grant
Funds for this program will be available starting March 3rd and will be distributed on a first-come, first-served basis. If you're interested in applying, it's essential to get pre-qualified as soon as possible.
For more information on qualifying for this first-time home buyer grant in Kentucky, or to start your application, contact Joel Lobb, Senior Loan Officer at American Mortgage Solutions, Inc.
If you're a first-time home buyer in Kentucky, this $20,000 grant could be the key to owning your dream home. Don't wait until funds run out—start your home buying journey today!
The Kentucky Housing Corporation (KHC) has reintroduced its $2,000 Closing Cost Grant, effective March 18, 2025. This grant is designed to assist homebuyers in Kentucky by covering some of the upfront costs associated with purchasing a home. Here's how it can help:
No Repayment Required: The grant does not need to be repaid, making it a valuable resource for those who need financial assistance with closing costs.
Combination with Other Programs: It can be combined with KHC's $10,000 Down Payment Assistance Program (DAP), allowing homebuyers to access a total of $12,000 in assistance. This combination can significantly reduce the amount of money needed upfront for a home purchase.
Eligibility: While specific eligibility criteria are not detailed in the provided information, typically these programs require applicants to meet certain income limits, purchase price limits, and other qualifications.
How It Helps Homebuyers
Reduces Upfront Costs: By covering closing costs, homebuyers can allocate more funds towards other expenses or save money for future needs.
Increases Affordability: Combining the grant with the DAP can make homeownership more accessible by reducing the financial burden of down payments and closing costs.
Simplifies the Homebuying Process: Having additional financial support can make the process less stressful and more manageable for first-time or low-income homebuyers.
Overall, the KHC $2,000 Closing Cost Grant is a beneficial resource for those looking to purchase a home in Kentucky, especially when used in conjunction with other assistance programs.
$2,000 Closing Cost Grant – No repayment required
Can be used for down payment, closing costs, and prepaid expenses
Can be combined with KHC’s $10,000 Down Payment Assistance Program (DAP)Limited availability – Only $1 million available for the first 500 homebuyersStarts March 18, 2025 – Act fast before funds run out!
How to Apply for the KHC Closing Cost Grant
Applying for the grant is simple! Here’s how:
Get Pre-Approved – Work with a KHC-approved mortgage lender(like myself!) to determine your eligibility. Find a Home – Once pre-approved, start house hunting with confidence. Apply for Assistance – Your lender will help you apply for both the $2,000 Closing Cost Grant and $10,000 Down Payment Assistance Program if you qualify. Close on Your Home – Use the funds to lower your upfront costs and move in with less money out of pocket!
First-come, first-served – Limited to the first 500 homebuyers
Available for purchase loans only (not refinances)
Can be combined with the KHC Down Payment Assistance Program (DAP) and Federal Home Loan Bank (FHLB) funds
Listed as a gift in GUS (Guaranteed Underwriting System), DU (Desktop Underwriter), and LPA (Loan Product Advisor)
Evo Mortgage Company NMLS# 1738461 Personal NMLS# 57916
For assistance with Kentucky mortgage loans, reach out via email, call, or text Joel Lobb directly.
Kentucky Local Home Loan Lender Services
First-Time Home Buyers Welcome FHA, Rural Housing (USDA), VA, and Kentucky Housing Corporation (KHC) Loans Conventional Loan Options Available Fast Local Decision-Making Experienced Guidance Through the Home Buying Process
For an FHA loan in Kentucky, the minimum credit score requirement is typically 580 for maximum financing with a 3.5% down payment. If your score is between 500 and 579, you may still qualify, but you will need a higher down payment of at least 10%.
Any judgments or collections on the credit report must be resolved or satisfactorily explained. Collections do not have to be paid but they will count them in your debt to income ratio. If they are judgements, they will have to be paid off because they could effect the clear title of the home
Cosigners are allowed. Family members or close associates okay. They don't have to live in the home with you. Cosigner are used to for income purposes only or work history that does not meet FHA lender requirements .Not used to compensate for the primary borrowers bad credit. They always take the lowest credit score of both borrowers.
Bankruptcy and Foreclosures for Kentucky FHA loans
Bankruptcy: You can qualify for an FHA loan two years after a Chapter 7 bankruptcy discharge, provided you have re-established good credit or have not incurred new debt. For a Chapter 13 bankruptcy, you need one year of the payout period completed and permission from the court to enter into a new mortgage.
Foreclosures: You must wait three years after a foreclosure before you can qualify for an FHA loan. This period can be reduced if the foreclosure was due to extenuating circumstances beyond your control.
The FHA guidelines typically require a front-end DTI (monthly mortgage payment divided by gross monthly income) of no more than 31% and a back-end DTI (total monthly debt payments divided by gross monthly income) of no more than 43%. However, higher ratios may be accepted with compensating factors, such as significant cash reserves or high credit scores. Can be much higher with AUS approval with 45% and 57% respectively on the front end and back end.
The standard down payment for a Kentucky FHA loan is 3.5% of the purchase price, which is feasible for many first-time homebuyers. This down payment can come from savings, a gift from a family member, or an approved down payment assistance program. 10% down payment needed with scores below 580.
The FHA loan limits in Kentucky vary by county and are set based on the median home prices in the area. In most counties, the limit for a single-family home is $524,225 for a single-family home.in 2024, but this amount can be higher in more expensive areas.
Income Limits Kentucky FHA loan
There are no specific income limits for FHA loans; however, your income must be sufficient to cover the mortgage payments and other debts. Lenders will assess your ability to repay the loan based on your income, debts, and employment history.
Down Payment Assistance Grants Kentucky FHA loan
Kentucky offers several down payment assistance programs to help first-time homebuyers. These programs can provide funds to cover the down payment and closing costs. Some popular programs include:
Kentucky Housing Corporation (KHC) Programs: KHC offers several down payment assistance options, including repayable and forgivable loans. $10,000 available at 3.75% rate currently over 10 year pay back period. Changes periodically. Check your lenders requirements with income limits, loan limits, debt to income ratio requirements
Local Government Programs: Many local governments offer grants and loans for down payment assistance.
Federal Loan Programs for First-Time Homebuyers in Kentucky
Kentucky Federal Housing Administration (FHA) Loans:FHA loans are insured by the U.S. Department of Housing and Urban Development (HUD) and cater to borrowers with lower credit scores (minimum 580 with a 3.5% down payment).
Kentucky Department of Veterans Affairs (VA) Loans:Active-duty military personnel, veterans, and eligible family members can qualify for VA loans with no down payment required. These loans typically offer lower interest rates than conventional mortgages.
Kentucky USDA Loans:Guaranteed by the U.S. Department of Agriculture (USDA), these loans are available to moderate-income borrowers in designated rural areas, with no down payment required.
HUD HOME Program - Kentucky contacts - HUD provides grant money to communities designated as participating jurisdictions for assisting homebuyers, rental assistance, and other housing initiatives
Habitat for Humanity - Through volunteer labor and donations of money and materials, Habitat builds and rehabilitates simple, decent houses with the help of the homeowner (partner) families
Federal Home Loan Bank of Cincinnati - serves Kentucky residents by offering various homebuying programs including Welcome Home grants. For more information, you may call 1 (888) 345-2246
USDA Rural Development - programs that reduce the cost of homeownership for low and moderate-income families.
Additional Resources
City and County Programs:Some Kentucky cities and counties offer their own down payment assistance programs or resources for first-time homebuyers. It's recommended to research programs available in your target location.
HUD Homeownership Programs:The U.S. Department of Housing and Urban Development provides resources for homeownership assistance programs across the country. You can explore their website for additional options.
Seller Concessions for Kentucky FHA loans
Sellers can contribute up to 6% of the home's purchase price toward closing costs, prepaid expenses, discount points, and other financing concessions. This can significantly reduce your out-of-pocket expenses.
Appraisals and Inspections Kentucky FHA loan
Appraisals: An FHA-approved appraiser must conduct an appraisal to ensure the property's value and condition meet FHA standards. Always required for FHA approval and ordered by lender.
Inspections: While not required by FHA, a home inspection is highly recommended to uncover any potential issues with the property. Not required, and ordered by borrower. Lender never sees the inspection report on home.
Home Insurance for Kentucky FHA loans
Homeowners insurance is mandatory for all FHA loans. You need to secure a policy that covers the property against loss or damage.
Title Report for Kentucky FHA loans
A title report ensures that the property has a clear title with no outstanding liens or claims. This is a crucial step in the home buying process to protect your investment.
Earnest Money Deposit for Kentucky FHA loans
An earnest money deposit is typically required to show the seller that you are serious about purchasing the home. This amount varies but is usually between 1% and 3% of the purchase price. $500 is typical in Kentucky for a deposit on a home you are buying.
Credit Reports for Kentucky FHA loans
Lenders will pull your credit report to assess your creditworthiness. It's important to check your credit report for errors and ensure that all information is accurate before applying for a loan. Some lenders will charge you upfront for the credit report fee and others will pull all three credit reports from Experian, Transunion and Equifax for free. Usually lender will not share the report with you but give you the scores. Scores go from 350 to 850 on each credit bureau.
Time to Close on a Kentucky FHA loan
The time to close an FHA loan can vary but typically ranges from 30 to 45 days. This period can be shorter or longer depending on various factors, including the lender's efficiency and the completeness of your documentation.
Locking in Rate on a Kentucky FHA loan
Once you are approved for a loan, you can lock in your interest rate to protect against rate fluctuations. Rate locks can last from 15 to 180 days or longer, depending on the lender.
CAIVRS Check for FHA loan in Kentucky
The Credit Alert Verification Reporting System (CAIVRS) is used to determine if a borrower has a federal debt or delinquency. If your name appears on this list, you may be ineligible for an FHA loan until the issue is resolved. So if you are delinquent on any student loan debt, back taxes to the IRS or social security overpayments, this can stop your Kentucky FHA loan pre-approval
Student Loan Rules for FHA Kentucky FHA loan
For FHA loans, the monthly payment for student loans is calculated as either .5% of the outstanding balance or the actual documented payment amount, whichever is greater. If your loans are in deferment or forbearance, .5% of the outstanding balance will be used for DTI calculations.
Delinquent Government Debt Kentucky FHA loan
If you have delinquent government debt, such as unpaid federal taxes or a defaulted student loan, you may not qualify for an FHA loan until the debt is resolved.
By understanding these requirements and preparing accordingly, you can increase your chances of qualifying for an FHA loan in Kentucky and successfully purchasing your new home.
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