KHC Down Payment Assistance in Northern Kentucky: 2026 Guide
Last updated: October 2026 · Reviewed by Brad Hamblen, Branch Manager, NMLS 52831 · Program terms are set by Kentucky Housing Corporation and change periodically — confirm current terms at kyhousing.org.
Quick answer: what does KHC offer?
Kentucky Housing Corporation’s Regular Down Payment Assistance Program lends up to $12,500 as a second mortgage — repaid over 15 years at 4.75% fixed — alongside a KHC first mortgage (FHA, VA, USDA, or conventional). An income-qualified Affordable DAP variant offers reduced-cost terms for lower-income buyers (current terms at kyhousing.org).
How KHC DAP actually works
KHC assistance isn’t a standalone grant — it rides on a KHC first mortgage. In practice: you qualify for the first mortgage through a KHC-participating lender, the DAP second covers down payment and closing costs in $100 increments up to $12,500, and you make two payments (the DAP payment on the full $12,500 over 15 years at 4.75% runs roughly $97/month). KHC purchase-price limits apply — the current cap is published on kyhousing.org.
What Northern Kentucky buyers should know
- It works here. KHC programs cover all 120 Kentucky counties — Boone, Kenton, and Campbell included. Most KHC content online is written from Louisville; the program works exactly the same in Florence.
- It stacks strategically. Depending on eligibility and timing, NKY buyers may have three assistance doors: KHC DAP, the NKY HOME Consortium forgivable loan (eight cities), and the spring Welcome Home grant. Which door — or which combination — depends on income, city, timing, and the first mortgage.
- First-time status isn’t always required. Several KHC options serve repeat buyers — eligibility is program-by-program.
The Northern Kentucky assistance comparison
| KHC Regular DAP | NKY HOME Consortium | FHLB Welcome Home | |
|---|---|---|---|
| Amount | Up to $12,500 | Up to $15,000 | Up to $20,000 |
| Type | Repayable 2nd mortgage, 4.75%, 15 yrs | 0% loan, forgiven over 10 yrs | Grant (retention period applies) |
| Where | All 120 KY counties | 8 NKY cities incl. Florence | FHLB Cincinnati territory (KY/OH/TN) |
| Income test | KHC program limits | HUD limits ($87,900 for a family of 4, 2026) | ≤80% of county MRB limit |
| Timing | Year-round | Year-round while funded, first-come | Opens each spring, goes fast |
| Monthly cost | ~$97/mo on the full amount | $0 | $0 |
Program terms as of October 2026; each program sets and revises its own rules — confirm current terms before relying on any figure.