New KHC Income Limits 2026: $12,500 Down Payment Assistance
Updated September 1, 2026 — Kentucky Housing Corporation (KHC) has released new income limits for both its MRB (Mortgage Revenue Bond) and Secondary Market loan programs, effective September 1, 2026. The purchase price limit also increased to $566,354 (effective May 18, 2026). This guide covers the new limits for every Kentucky county, plus how to qualify for up to $12,500 in KHC down payment assistance.
What Is the KHC $12,500 Down Payment Assistance Program?
KHC’s Down Payment Assistance Program (DAP) provides a repayable second mortgage that helps Kentucky homebuyers reduce upfront costs. It pairs with a KHC first mortgage (FHA, VA, USDA, or Conventional).
Assistance Amount: Up to $12,500
Repayment: 15-year fully amortizing second mortgage
Interest Rate: Typically around 4.75% (KHC sets rate; subject to change)
Used For: Down payment, closing costs, prepaids
Not a Grant: This is a repayable second mortgage
KHC 2026 Purchase Price Limit
KHC uses a statewide purchase price limit for both MRB and Secondary Market loans:
Maximum Purchase Price Allowed: $566,354 (effective May 18, 2026)
New KHC Income Limits — Effective September 1, 2026
KHC uses two different sets of income limits depending on which funding source your loan uses:
Secondary Market: Counts only the applicant’s gross annual income (the borrowers on the loan) — one limit per county regardless of household size.
MRB (Mortgage Revenue Bond): Counts tot
