Kentucky First-Time Home Buyer Programs of 2021

Jan 1, 2021

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Doing something important for the first time is often scary, especially if you’ve dreamed about it for years. Buying a first home is no exception.

But help is out there to make the process easier. The Kentucky Housing Corp., or KHC, offers programs to help repeat and first-time home buyers get a mortgage.

National loan programs with lower down payment or credit score requirements can also open up a path to homeownership. Check out the possibilities below to find an option that fits your needs.

National first-time home buyer programs

Many lenders participate in national programs that can help first-time buyers get a home loan. You may qualify for one of these mortgages even if you have less-than-perfect credit or little cash for a down payment.

Kentucky Housing highlights and eligibility requirements

The Kentucky Housing Corp. offers conventional, FHA, VA and USDA mortgages to home buyers through a network of approved lenders.It also offers FHA, VA and USDA refinance loans. The corporation’s financial assistance and tax credit programs can be combined with any of these loans to make buying a home more affordable.


  • 30-year fixed-rate mortgages available.

  • Down payment and closing cost assistance available.

  • Federal income tax credit available to reduce annual mortgage interest.


  • Can be a first-time or repeat home buyer for most programs.

  • Must have a minimum credit score of 620.

  • Must meet county income limits and statewide purchase price limits.

  • Must work with a lender approved by the Kentucky Housing Corp.

  • Allows for properties that include single-family homes, condos and manufactured homes.

Kentucky Housing first-time home buyer loan programs

Summary: 2021 KHC first-time home buyer programs

  • Conventional Preferred Program for low income borrowers with a down payment of just 3%.

  • Conventional Preferred Plus 80 Program for a down payment of just 3%.

  • Home Buyer Tax Credit for reimbursement of a portion of the annual mortgage interest payments.

  • Regular Down Payment Assistance Program for a down payment loan of up to $6,000.

  • Affordable Down Payment Assistance Program for a down payment loan of up to $6,000 for low-income borrowers.

Knowing about national and Kentucky state loan programs to help buy a home is a good start; now it’s time to dig into the details. For specifics, visit the Kentucky Housing Corp. website. There you’ll find information about all the loan programs, including eligibility requirements, how to enroll in home buyer counseling and a list of approved lenders in your county.

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