Your Kentucky Home Program

The Kentucky Association of Counties, Inc. (KACo) recognizes that many individuals are stuck in a renter’s trap; they can afford monthly mortgage payments, but don’t have the money saved up for a down payment on a house. That’s why they developed the Your Kentucky Home initiative.

Program Guidelines
The program offers income-eligible homebuyers across the Commonwealth down payment assistance in the form of a grant, up to 5 percent of the loan amount of their first mortgage. The homebuyer is not required to repay these funds at any point. This grant comes in conjunction with a 30-year fixed rate first mortgage, with a 0.25 to 0.50 percent higher interest than the current market rate. The assistance can then be put toward reducing the principal amount of the mortgage, paying down payments or closing costs, or a combination of the two.

Eligibility Requirements
Your Kentucky Home offers applicants up to 5 percent down payment assistance for any government or conventional home loan. There are, however, a few requirements that applicants must meet. All homebuyers must have a credit score of at least 640, and fall under the maximum income limit that is set at 115 percent of average median income (AMI), which varies by county. The program bases its income limits on the individual borrower rather than household income. “Your Kentucky Home” does not have a first-time home buyer requirement, nor restrictions on reselling or refinancing the property, and no minimum length of occupancy. The loan application must meet the local lenders credit standards and must meet any federal requirements if it is an FHA, VA or Rural Development loan.

Program Availability
This program is available to Kentucky homebuyers in all 120 counties. They can access Your Kentucky Home through any mortgage lender that has joined and qualified to be a member of the program.  There are currently 20 eligible lenders in the program, with KACo actively seeking new lenders. 

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.