Best Alternatives Now That the Welcome Home Grant Is Gone
Here are the main options Kentucky buyers should look at now.
1. USDA Rural Housing Loan: Zero Down Payment
The USDA Rural Housing loan is one of the best no-money-down mortgage programs available in Kentucky. Many areas outside the larger cities may qualify, and some suburban areas may qualify as well.
Zero down payment for eligible buyers
Property must be located in an eligible USDA area
Household income limits apply
Primary residence only
Seller-paid closing costs may be allowed
Good option for rural and small-town Kentucky buyers
This program is especially strong for buyers looking in counties and communities outside Louisville, Lexington, Bowling Green, Northern Kentucky, and other larger metro areas. If the property and income qualify, USDA can be a true zero-down option.
Learn more about Kentucky USDA zero-down home loans
2. KHC Down Payment Assistance: Up to $12,500
Kentucky Housing Corporation, also known as KHC, offers down payment assistance that can help Kentucky buyers cover down payment, closing costs, and prepaid items.
Up to $12,500 in assistance
Structured as a repayable second mortgage
15-year repayment term
Fixed rate currently listed by KHC at 4.75%
Must be paired with a KHC first mortgage
Available with eligible FHA, VA, USDA/RHS, and conventional KHC loans
This is not the same as the Welcome Home Grant. KHC Regular DAP is a repayable second mortgage, not free money. But for many buyers, it ca
