Kentucky First-Time Homebuyer Down Payment Assistance (DPA) Program
“Good Credit / Bad Credit” Homebuyer Help via KHC
If you’re ready to purchase your first home in Kentucky — whether you have strong credit or some credit challenges — the KHC Down Payment Assistance (DPA) program may allow you to buy with little or no money down. As a local mortgage expert serving all 120 counties in Kentucky, I can guide you step-by-step.
Why This Program Matters
• Up-front costs (down payment + closing costs + prepaids) are often the biggest hurdle for a first-time buyer.
• The KHC DPA program is designed to reduce or eliminate that barrier.
• Even if you’ve had credit issues or limited savings, you may qualify — with the right lender and loan program.
What is the KHC DPA Program?
The KHC Down Payment Assistance program is a second loan that works alongside a first mortgage from KHC.
Assistance up to $12,500 (temporarily increased from $10,000) is available for qualified buyers.
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The second loan is amortized over 15 years at a fixed rate (e.g., 4.75%) when increased assistance is in effect.
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You must originate your primary mortgage through a KHC-approved first mortgage program (FHA, VA, USDA, or eligible conventional) in Kentucky.
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Key Eligibility Requirements
Here’s what you (and your borrowers) must satisfy to qualify:
Requirement Typical Standard Notes
First-time homebuyer Yes (s
