Last updated: October 2026 · By Brad Hamblen, Branch Manager, NMLS 52831
“I don’t have a down payment” ends more Northern Kentucky homebuying conversations than any credit score ever has. It usually shouldn’t — because in 2026, three real programs put between $12,500 and $20,000 on the table for buyers in Boone, Kenton, and Campbell counties, and most people have never heard of two of them.
Door #1: KHC Down Payment Assistance — the year-round workhorse
Kentucky Housing Corporation lends up to $12,500 as a second mortgage (15 years, 4.75% — roughly $97/month) alongside a KHC first mortgage, anywhere in Kentucky, all year long. It’s the most available of the three. Full terms: our KHC guide.
Door #2: the NKY HOME Consortium — the forgivable one
Eight river-area cities — Florence included — offer up to $15,000 at 0% with no monthly payment, forgiven one-tenth per year: live there ten years, repay nothing. Income limits apply ($87,900 for a family of four in 2026), homes have county price caps, and new construction qualifies — up to $363,000 in Boone County. Details: the NKY HOME program guide.
Door #3: the Welcome Home grant — the sprint
Once a year, the Federal Home Loan Bank of Cincinnati releases grants of up to $20,000 — a true grant, first-come, and typically spoken for within weeks of the spring opening. The buyers who get it are positioned in winter: pre-approved, counseled, ready. How it works: our Welcome Home guide.
Which door — or which combination?
They aren’t mutually exclusive, and the right answer depends on your income, your city, your timeline, and the first mortgage underneath (FHA vs USDA vs VA is its own decision). Sequencing the layers correctly is lender work — and it’s free to find out which doors are open to you.
If you’re earlier in the process, start with the wider view: every down payment assistance option we work with, and how the first time home buyer programs in Kentucky fit together with them.
Program terms are set by each agency and change; figures verified October 2026 against KHC, the NKY HOME Consortium’s PY 2026–27 guidelines, and FHLB Cincinnati.
