Northern Kentucky Homebuyer Assistance Program: Up to $15,000, Forgivable
Last updated: October 2026 · Reviewed by Brad Hamblen, Branch Manager, NMLS 52831 · Based on the official Program Year 2026–2027 guidelines (adopted June 23, 2026).
Quick answer: what is this program?
The NKY HOME Consortium Homebuyer Assistance Program lends eligible buyers up to $15,000 at 0% interest with no monthly payments for down payment and closing costs in eight Northern Kentucky cities. The loan is forgiven 1/10th each year — live in the home ten years and you repay nothing.
Which cities qualify
Covington, Ludlow, Erlanger, Independence, Florence, Newport, Bellevue, and Dayton. The program is funded through the federal HOME Program and administered by the City of Covington’s Neighborhood Services Department.
Eligibility runs by city limits, not by county — the detail that disqualifies most people
If the property address isn’t inside one of those eight member cities, it doesn’t qualify. Being in Boone, Kenton, or Campbell County is not enough on its own, and that rules out a large share of Northern Kentucky. Hebron and Burlington are unincorporated Boone County with no city government at all — Burlington is the county seat and still unincorporated — and Union is a city but not a Consortium member. In Boone County, the practical answer is Florence.
This matters most on new construction, where much of Boone County’s growth is happening outside the member cities: a new build in Union, Hebron, or unincorporated Burlington is not eligible for this program no matter how well the buyer qualifies. Check the address against the member-city list before counting on the money — and if it falls outside, the KHC programs and the Welcome Home grant are the two that are not city-limited.
2026 income limits (household size)
| Persons in household | Maximum income |
|---|---|
| 1 | $61,550 |
| 2 | $70,350 |
| 3 | $79,150 |
| 4 | $87,900 |
| 5 | $94,950 |
| 6 | $102,000 |
| 7 | $109,000 |
| 8 | $116,050 |
2026 HUD income guidelines, effective until HUD revises them.
2026–27 purchase price limits
| County | Existing home (1-unit) | New construction (1-unit) |
|---|---|---|
| Boone | $275,000 | $363,000 |
| Kenton | $247,000 | $330,000 |
| Campbell | $247,000 | $330,000 |
Two-unit buildings have higher limits (for example, $465,000 for new construction in Boone County). Note the new-construction allowance — this assistance can pair with a new-build purchase, which most buyers (and many agents) don’t realize.
The rules that decide approval
- Debt ratios: housing payment ≤ 31% and total debts ≤ 43% of gross income
- First mortgage quality: rate can’t exceed the Freddie Mac weekly average by more than 2.5%; no balloons, no subprime terms
- Counseling: a HUD-approved homeownership counseling certificate is required before closing
- Occupancy: move in within 60 days; the home stays your principal residence through the 10-year term
- Property: owner-occupied or vacant 1–2 unit homes (currently tenant-occupied homes are not eligible)
- Liquid assets: savings above $20,000 must go into the purchase before program funds are used (retirement accounts don’t count)
What happens if you sell early
Sell or move out before year ten and the unforgiven balance comes due — but recapture is limited to your net proceeds. If a sale produces no net proceeds, the Consortium only recaptures what the sale actually nets.
How to apply
Applications run through the Consortium’s online portal and are processed first-come, first-served while funding remains — funds are only reserved once you have an accepted purchase contract, which is why having financing and counseling lined up early matters. Program contact: NKY HOME Consortium, City of Covington Neighborhood Services, 20 West Pike Street, Covington, KY 41011, (859) 292-2105.
Official source
- City of Florence: Homebuyer Assistance Program (PY 2026–27 guidelines, adopted June 23, 2026)