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Kentucky Grants

There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down. 

Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level. 

Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds. 

State Sponsored
Bank Sponsored Matching Funds Programs
Community/local Sponsored Grants
Seller Funded Down Payment Assistance Programs

State Sponsored 

The State of Kentucky offers several down payment and closing cost assistance grants to help you with your down payment and closing costs. They offer a two soft 2nd mortgages ( loans that are forgiven after 5 years of home ownership). They also offer a 2nd mortgage of 4% of the purchase price, which needs to be paid back over 10 years. The program that you would be eligible for will depend on your yearly household income and the sales price of the home. Below is a link to the State’s web site, where you will be able to review income and sales price limits: 

Bank Sponsored Matching Funds Programs 

Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information.

Community/local Sponsored Grants

Covington Homebuyer Assistance Program (HAP) 
(859) 292-2188 

Fayette County Local Development Corporation First Time Homeowners Assistance Program (FTHAP) 
(606) 254-6212 

Jefferson County Home Ownership Assistance Program (HOAP) 
(502) 574-5144 

Louisville New Construction Home Ownership Program 
(502) 574-3107 

Multi Counties REACH Inc First Key Down payment Assistance Program (DAP) 
(859) 258-3535 

Multi Counties- The Center For Women and Families, Inc. Common Wealth Individual Development Account Program (CWIDA) 
(502) 581-7200

Seller Funded Down Payment Assistance Programs

There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money. The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price. These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site.

American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm

Nehemiah Corp: