Down payment assistance in Kentucky
Kentucky's primary statewide down payment assistance program, run by Kentucky Housing Corporation. Numbers and eligibility reflect the program's published 2025 guidelines.
Regular DAP
Second mortgage- Maximum assistance
- Up to $10,000 as a 10-year amortizing second lien
- Income limit
- Up to $137,070 (varies by household)
- Home price limit
- Up to $481,176
- First-time buyer
- Not required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •DAP second lien is at 5.5% over 10 years. Affordable DAP option available for lower-income buyers.
How Kentucky DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Kentucky's Regular DAP pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Kentucky's primary statewide DPA is Regular DAP from Kentucky Housing Corporation. Up to $10,000 as a 10-year amortizing second lien. Many Kentucky cities and counties also run additional DPA layered on top.
No. The Regular DAP is open to both first-time and repeat buyers, subject to income and home-price limits.
Yes. Regular DAP works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.