FRANKFORT, KY – To reach the American dream of homeownership, first-time homebuyers may struggle to save enough money for the down payment and closing costs. This can create an affordability gap, which is one barrier potential homeowners face that can mean the difference between buying a home or not, even though they can afford a monthly mortgage payment.
"Down payment assistance and a federal homebuyer tax credit can help Kentuckians achieve homeownership and provide families with long-term housing stability," said Kentucky Housing Corporation's (KHC) Executive Director, Edwin King. "Housing stability and a safe, quality, affordable home is critical for families to have other successful life outcomes in education, health, and jobs."
KHC, as the state housing finance agency, invests in programs that create affordable homeownership and mortgage solutions across the state. Kentucky homebuyers, who qualify, can take advantage of down payment assistance, providing eligible buyers with up to $6,000, repayable over a 10-year term at 5.5 percent interest for KHC's Regular Down payment Assistance Program (DAP) and one percent for Affordable DAP. These are coupled with KHC's mortgage products for new and existing homes, through its secondary market programs, serving a wide range of Kentuckians.
Additionally, KHC is still offering its Hardest Hit Fund (HHF) DAP in Christian County, on a first-come, first-served basis, meeting qualifying guidelines. HHF DAP is a $10,000 non-repayable second mortgage, forgiven after owning a previously occupied property for five years. As of June 11, 2019, HHF DAP has helped over 200 families in Christian county become homeowners.
To provide affordable housing to underserved areas of the state, KHC is utilizing Duty to Serve (DTS) funds set aside for families in 75 of Kentucky's 120 counties. Properties located in these counties, considered Middle Appalachia or Lower Mississippi Delta, will have access to a $1,500 closing cost grant through DTS. Borrowers must be under the specific income limits per DTS requirements, limited to 100 households.
Learn more about opportunities through KHC and its network of participating lenders for mortgage loans and down payment assistance by visiting KHC's website, www.kyhousing.org.
As Kentucky’s housing finance agency, Kentucky Housing Corporation (KHC) offers programs designed to create, preserve, and sustain affordable housing. In partnership with state and federal agencies, KHC administers programs that assist low- and moderate-income households with affordable home loans and down payment assistance, affordable rental homes, housing solutions for homeless, and specialized housing with supportive services.
Created by the General Assembly in 1972, KHC is a self-supporting, public corporation of the Commonwealth of Kentucky. KHC is a quasi-governmental agency, which is administratively attached to the Finance and Administration Cabinet, and a portion of KHC's funds are derived from the interest earned through the sale of tax-exempt mortgage revenue bonds. From these proceeds, KHC has made homeownership possible for more than 98,000 Kentucky families.
KHC also receives fee income for administering federal programs, including rental assistance that makes quality housing available to more than 27,500 low-income Kentuckians. Other programs offered by KHC include rental housing financing for development and preservation, rental assistance, homelessness assistance, homeownership pre-purchase education/counseling, home energy and repair initiatives, as well as loan servicing of its mortgage loans. KHC works with many partners across the state to invest in and create affordable housing opportunities.
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For more information, contact:
Kentucky Housing Corporation | 1231 Louisville Rd., Frankfort,
502-564-7630; 800-633-8896 (KY only); TTY 711