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Home Buyers

Home Buyer Tax Credit

New Home Buyer Tax Credit

What would you do with a bigger tax refund?

If you plan on buying a home, then consider taking advantage of KHC’s Home Buyer Tax Credit. The tax credit provides a dollar for dollar reduction of your federal income taxes, every year you occupy the home. The Tax Credit is equal up to 45 percent of the annual mortgage interest paid in a calendar year*.


  • All first-time home buyers. If not a first-time home buyer then contact a KHC Approved Lender to see if eligible.​
  • Purchase price and income limits apply.

How to Apply?

Contact a KHC Tax Credit Approved Lender to start the process.

Applications are accepted by a statewide network of local lenders. Home Buyer Tax Credit is available through FHA, VA, RHS and Fannie Mae, and Freddie Mac Conventional 30-year mortgages at a fixed interest rate. With a Tax Credit from KHC, you will get a direct dollar-for-dollar reduction in your federal income taxes worth 35 or 45 percent of the mortgage interest you pay on your mortgage each year. You can still claim the remaining 65 or 55 percent of the mortgage interest as a tax deduction.


We've compiled a list of frequently asked questions (FAQs)​ to answer most of your concerns, but if you would like to know more about the Tax Credit, please consult​ a Tax Credit Approved Lender and/or a tax professional.

*45 percent interest Tax Credit is only available on homes purchased outside of counties that recieved the Hardest Hit Fund Down payment Assistance Program. These counties (Christian, Hardin, Jefferson, and Kenton) will recieve a Tax Credit equal to 35 percent of the annual mortgage interest.