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KHC Down Payment Assistance

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KHC Down Payment Assistance is a Kentucky down payment assistance program from Kentucky Housing Corporation. It provides Up to $12,500 as a repayable second mortgage. Eligibility, income limits and funding are set by the agency, so confirm current terms on its official page.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast verified

Who qualifies for KHC Down Payment Assistance?

A secondary loan repaid to KHC over 15 years, available to all KHC first-mortgage recipients.

DetailProgram terms
AssistanceUp to $12,500
TypeRepayable second mortgage
Minimum creditNot published on the program page
First-time buyerSee official page
Income limitsSee official page

How does KHC Down Payment Assistance work with an FHA loan?

Kentucky's 2026 FHA one-unit limits start at $541,287, which supports a price of about $560,000 with 3.5% down. On a $250,000 home, the minimum FHA down payment is $8,750 — assistance of up to $12,500 could cover it and part of closing costs, subject to program rules.

Where do I confirm current terms?

On the official page: https://www.kyhousing.org/page/down-payment-assistance. Programs can pause when funds run out, so confirm availability with a participating lender.

“KHC’s Down Payment Assistance (DPA) provides up to $12,500 toward your down payment and closing costs.” — Kentucky Housing Corporation

← All Kentucky down payment assistance programs

Frequently asked questions

Up to $12,500, according to Kentucky Housing Corporation.

Yes — it's a second mortgage with its own repayment terms.

Sources

Data last updated October 23, 2026.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.